As we approach the end of the year, it’s the perfect time to review your financial plan and make sure you’re on track to reach your goals. From evaluating your savings and investments to ensuring adequate insurance coverage, a year-end review can bring peace of mind and help you enter the new year confidently. Here’s a look at the key areas to focus on and why each one is essential to your financial health.

  1. Short-Term Bank Savings and Long-Term Investment Check-Up

    Savings and investments are the foundation of financial security, but it’s easy to overlook regular check-ins on your progress. Take a moment to review your emergency savings funds, retirement and other long-term investments, and your key savings goals. Ideally, an emergency fund should cover at least three to six months’ worth of expenses. For retirement and other long-term goals, check if you’re on track with your contributions, especially if you have the option to maximize contributions in tax-advantaged accounts like a 401(k) or IRA.

    Tip: Consider setting up automatic transfers to your savings accounts if you haven’t already—it’s a simple way to ensure consistent growth.
  2. Insurance Coverage Review

    Insurance is vital in protecting your assets and loved ones, but needs can change over time. A year-end or birthday review is an excellent opportunity to assess whether your current policies meet your needs. Look over your health, life, home, and auto insurance to make sure coverage is adequate. If you’ve experienced life changes this year, such as a marriage, new child, or home purchase, now is the time to update your policies accordingly. We can help with this review…
  3. Investment Performance and Goals

    Reviewing your investment portfolio is essential to ensure your money is working effectively toward your financial goals. Take a look at your portfolio’s performance over the past year and check whether it aligns with your risk tolerance and timeline. It might be beneficial to re-balance your investments, as certain asset classes may have performed better than others, impacting your intended allocation. A balanced and diversified portfolio can help manage risk and enhance returns over time. How your investments are allocated in the spectrum of options is almost always a large part of effectively meeting your goals.

    Tip: If you have investments in taxable accounts, now is a good time to consider strategies like tax-loss harvesting, which can reduce your tax bill by offsetting gains with losses.
  4. Debt Management Review

    Debt can be a significant obstacle to financial progress, so it’s important to keep it under control. Check your current balances on credit cards, loans, and other debts. Consider making an end-of-year plan to pay down high-interest debt first, which can save you money over the long term. Reviewing your debt regularly and understanding your interest rates allows you to prioritize payments and, if possible, explore refinancing options for better terms. Not getting control over debt, especially credit card debt, early on can have a huge impact on long term financial well-being.
  1. Tax Planning Preparation

    Tax planning may not seem directly related to financial planning, but it can impact your overall strategy. As you review your finances, look into any tax advantages you might be able to leverage before year-end. For instance, retirement contributions, charitable donations, and ‘Flex-Benefit’ or health savings account contributions can both offer tax benefits. Gathering all relevant documentation now will also make tax season less stressful when it arrives.

    Tip: Consult with a tax advisor to see if you’re eligible for any additional credits or deductions, which can help you maximize your savings.
  2. Goal Setting for the New Year

    Finally, use this year-end review to set or refine your financial goals for the coming year. Whether it’s saving for a major purchase, building an emergency fund, or increasing retirement contributions, establishing clear objectives can keep you motivated. Review the progress you’ve made this year, celebrate the wins, and identify areas for improvement. Goal setting is one of the best ways to stay focused on what matters most to you financially.

    Taking time at the end of the year to review your entire financial plan is one of the best steps you can take for long-term financial well-being. By focusing on savings, insurance, investments, debt, and tax planning, you’ll be ready to make informed adjustments and start the new year strong. As always, reach out to Generations Planning Group for any questions about financial planning…

    Happy Holidays!
Securities offered through IFP Securities, LLC, member FINRA/SIPC. Investment advice offered through IFP Advisors, LLC, a registered investment adviser. IFP and Generations Planning Group, LLC are not affiliated.

The information given herein is taken from sources that IFP Advisors, LLC, dba Independent Financial Partners (IFP), IFP Securities LLC, dba Independent Financial Partners (IFP), and its advisors believe to be reliable, but it is not guaranteed by us as to accuracy or completeness. This is for informational purposes only and in no event should be construed as an offer to sell or solicitation of an offer to buy any securities or products. Please consult your tax and/or legal advisor before implementing any tax and/or legal related strategies mentioned in this publication as IFP does not provide tax and/or legal advice. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of individual investors. This report may not be reproduced, distributed, or published by any person for any purpose without IFP’s express prior written consent.