Your End-of-Year Financial Checklist

The holiday season is always busy, but it is important to set aside some time at the end of each year to straighten out your personal finances. With that in mind, here is a list of tasks to tackle before 2017:

1. Max out your IRA contributions. Returns generated through IRA accounts compound without taxes for life. The more money you can put in now, the more money you get when it’s time for retirement. We encourage everybody to max out their contribution limit each year if it is financially possible.

2. Balance your portfolio. Diversification is a fundamental way to minimize investment risks. Now is a good time to go through all of your portfolios and make sure you are not becoming too weighted towards one asset; even if it has performed well recently.

3. Donate to charity. Donating to charity is a great way to minimize taxable income, all while helping those in need. December 31st is the deadline for all tax-deductible charitable contributions.

4. Use up money in your flexible spending account. If you have leftover money in your flexible spending account (FSA) for health care expenses, schedule a last-minute eye exam or dental cleaning. If you don’t use it, you lose it!

5. Double-check your beneficiaries. Events such as divorce or death could impact your beneficiaries, so it is a good idea to double-check them at least once per year.

6. Budget for 2017. Review your 2016 spending. What changes (either to your income or your expenses) do you foresee occurring within the next year? Use this information to draft a rough budget for 2017.

7. Schedule a meeting with your financial planner. This is the best time of the year to schedule a check-up appointment with your financial advisor. Not only can they help you wrap up these (and other) end-of-year tasks, they can also help you prepare for the year ahead.

Don’t have a financial planner? Now is the perfect time to schedule an initial consultation! American Investment Planners offers professional financial advisement services to individuals and families across the country. Don’t trust anybody else to help you achieve your short- and long-term financial goals.

Call (516) 932-5130 today to schedule your appointment, or email info@americaninvestmentplanners.com.