The end of the year is a flurry of activities, as people rush to meet work deadlines, finalize gift buying, and celebrate the holidays. For many, this season is also a time for reflection, as they consider their accomplishments over the past 12 months and set goals for the coming year. December is the perfect time to review and revise your financial goals and plans, using this helpful financial checklist from the experts at Guyton-Forge, who advise taking some time before the end of the year to:
• Review and revise your financial plan. Think about your short- and long-term financial goals, and create a roadmap outlining the steps you’ll take to achieve them. Work with a financial expert that provides a comprehensive, integrated, big picture approach, considering estate planning, retirement income planning, business exit planning, etc., who can help you develop (or revise) a personalized financial plan based on your current circumstances and goals.
• Assess your investments. While you often have to play the long game when it comes to investments, it’s wise to review your portfolio annually to determine whether your investments still align with your financial goals. Is your portfolio appropriately diversified? Has your risk tolerance changed, for instance, becoming more conservative as you approach retirement? Have you taken steps to reduce your taxable income, such as contributing to a 401k or pension plan?
• Review your budget. Consider your budget to determine how you’ve spent (and saved!) your money this past year. Assess your income, expenses, debts, and savings. Is your income allowing you to live your preferred lifestyle? Where could you trim spending? Also, do you have an emergency savings fund of 4-6 months’ worth of expenses? If not, make this a top priority for 2025.
• Consider any major life events from last year. Weddings, births, deaths, job loss, retirement, career changes, relocations, and other big life events can all impact your spending, budget, and financial plan. If you had a major life change in 2024, discuss it with your financial advisor, who can help you revise your financial plan (and goals) accordingly.
• Offset capital losses. If you had portfolio losses this year, you may be able to offset current (or future) gains with these losses. Talk to your financial advisor and tax preparer about tax loss harvesting – or reducing the amount you’ll owe in taxes now and in the future.
• Review your benefits. You may not think about your employee benefits often, but it’s important to review them each year. Look at your employer-sponsored 401k contributions. Did you max out your contributions? (Or did you at least contribute as much as the company match?) If you’re not already maxing out your contribution, consider increasing it each year. Also review your disability and life plan benefits to be sure the coverage is adequate for you. The best time to find out what your benefits will be is before you need them!
• Spend your FSA funds. As part of your benefits package at work, you may have access to a flexible spending account (FSA), which allows you to contribute pre-tax money – up to a certain amount – to an account that can be used to pay for eligible healthcare expenses. Since FSAs are typically “use it or lose it,” if you don’t spend it all by year’s end, you could lose remaining funds. Be sure to spend any money left in your FSA account before December 31. Look up what qualifies – you may be surprised to learn that you can spend that money on contact lens solution, over the counter medicines, eyeglasses, first aid supplies, etc.
• Assess your insurance coverage, as noted above. It’s essential to have proper, comprehensive insurance to protect your family and your assets. As part of your year-end financial review, assess your existing policies and coverage. Is your current coverage still sufficient? Are your insurance beneficiaries up to date, especially if you went through a life event – like the birth of a child – last year?
• Make (or update) an estate plan. Your estate plan should include a will and living will, as well as a healthcare and financial power of attorney. Be certain that your estate plan is updated and accurate, listing the correct beneficiaries. If you had a major life change this year, ensure that your estate plan reflects that. If you don’t have an estate plan, work with your financial advisor to create one ASAP.
• Meet with your financial advisor. Don’t get overwhelmed by this checklist. Contact your financial advisor, who can support and guide you, helping you cross off these important tasks from your financial To Do list.
• Celebrate your successes. Did you stick to your budget this year? Compile an emergency savings fund? Pay off a debt? Create an estate plan? Take time to celebrate your financial victories from 2024, which will contribute to your financial health and successes in the new year and beyond!
As you’re reflecting on last year and planning for next year, let’s talk. The award-winning Guyton Forge team is here to help you achieve – and exceed! – your financial goals. The Guyton Forge team has won numerous awards for their exemplary service and knowledge. Most recently, Joseph Guyton, Owner The Guyton Group, earned the prestigious designation of Five Star Wealth Manager* for the seventh time. To earn the Five Star Wealth Manager award, wealth managers must demonstrate that they provide the highest-quality services to their clients. Additionally, Joe and his son Andrew Guyton, Founder of Forge Financial, have each (repeatedly!) earned the prominent designation of President’s Council Qualifier, a Guardian award for financial professionals that provide exceptional customer service and nurture long-term client relationships.
At Guyton-Forge, we offer the experience of a big firm with a small-town feel. We customize our approach (and our advice) to meet each client’s specific situation, needs, and goals. We’re proud to do things differently – it’s part of what sets us apart as a friendly, high touch practice. We offer extensive experience and knowledge, creating strong, long-term relationships with our clients.
Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 160 GOULD STREET, SUITE 310, NEEDHAM MA, 02494, 781-4494402. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Guyton-Forge is not an affiliate or subsidiary of PAS or Guardian. Life insurance offered through The Bulfinch Group Insurance Agency, LLC, an affiliate of The Bulfinch Group, LLC. The Bulfinch Group, LLC is not licensed to sell insurance. CA Insurance License Number – 0A96200. Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. 7383196.2 Exp 12/26
* This award is not issued or endorsed by Guardian or its subsidiaries. The annual Five Star Manager award is based on criteria developed and obtained by Five Star Professional. No compensation has been provided by the adviser in connection with obtaining or using the third-party award.
