End-of-Year Financial Planning Tips: Set Yourself Up for Success in 2024

It's hard to believe, but 2023 is almost over! With the new year approaching, it's a good time to take some time to review your financial plan and make any necessary adjustments.

Here are a few end-of-year financial planning tips:

1. Define your family's financial goals and concerns for next year. What are your top financial priorities? Do you want to save more for retirement, college, or a down payment on a house? Are there any areas where you're overspending or expecting any unusually large bills next year? Once you know what your goals and concerns are, you can start to develop a plan to achieve them.

2. Take required minimum distributions (RMDs) if you're over 72. If you're 72 or older, you must take RMDs from your retirement accounts each year. If you don't, you'll face a 50% penalty tax on the amount you should have withdrawn.

3. Review your budget. Compare your spending this year against your budget to see where your money is going. Are there any areas where you can cut back? Are there any new expenses you need to budget for next year?

4. Set savings goals for next year. If you're expecting to earn more money next year, consider putting part of your expected increase into savings. This could help you reach your financial goals faster.

5. Review your asset allocation. Asset allocation is the mix of stocks, bonds, and other investments in your portfolio. It's important to review your asset allocation regularly to make sure it's still aligned with your risk tolerance and investment goals.

6. Review your retirement savings. If you're not retired yet, make sure you're on track to reach your retirement savings goals. Review your contributions to retirement accounts such as IRAs and 401(k)s, and make sure you're taking advantage of all available tax breaks.