Going into the Fourth Quarter: Year-End Financial Planning Questions to Consider

The Year-End is also a good time to review the performance of your investments and consider any rebalancing that might be needed. Over time, asset allocation can drift from your intended targets due to market movements. Rebalancing your portfolio can help you realign your investments with your long-term financial goals and risk tolerance. Evaluating your portfolio can help you identify what changes, if any, are needed.

Questions to ask yourself:

• How has my portfolio performed this year?
• Are my investments aligned with my financial goals?
• Should I seek professional advice?

Charitable contributions can provide both personal fulfillment and tax advantages. Supporting causes that align with your values can deepen your connection to your community and contribute to a legacy of positive impact. Donating to qualified organizations by December 31st can potentially also allow you to take a deduction on this year’s taxes if you itemize. Additionally, for those holding appreciated securities, donating stocks or other assets instead of cash may provide greater tax benefits by potentially avoiding capital gains taxes.

There are different vehicles you can use for charitable giving. If you regularly make donations, consider setting up a donor-advised fund. This allows you to make a charitable contribution now, receive an immediate tax deduction, and then distribute funds to your chosen charities over time.

Questions to ask yourself:

• Which causes or organizations are most important to me?
• How can I make my contributions more impactful?
• Have I tracked my donations throughout the year?
• Am I maximizing my tax benefits?

Year-end tax planning is crucial to minimizing your tax burden. Some considerations to take include deferring income to the next year, accelerating deductions, and utilizing any available tax credits. Review your projected income and deductions for the year and consult with a tax professional to identify areas where you can save.

Questions to ask yourself:

• Am I on track to meet my tax-saving goals for the year?
• Am I aware of the implications of any recent tax law changes?
• Should I consult with a tax professional?

The end of the year is a great time to review and update your estate planning documents, especially if you've had any significant life changes during the year, such as marriage, divorce, or the birth of a child. Ensure that your will, trusts, and powers of attorney are up-to-date, and review beneficiary designations on retirement accounts and life insurance policies.

Questions to ask yourself:

• Is my estate plan comprehensive?
• Is my will up to date?
• Are my beneficiary designations current?
• Do I need to revisit any legal documents?

The end of the year often coincides with open enrollment periods for health insurance and other employee benefits. Review your options to ensure you’re taking advantage of the best plans available, whether through your employer or the marketplace. Health savings accounts (HSAs) can provide a triple tax benefit: contributions are tax-deductible, growth is tax-deferred, and withdrawals for qualified medical expenses are tax-free.

Questions to ask yourself:

• Is my current health insurance plan still the best fit for my needs?
• What are my expected healthcare costs for the coming year?
• How does my current plan compare to other available options?
• What wellness programs or benefits are available to me?

As we enter the fourth quarter, it’s the perfect time to reflect on your financial goals and assess your progress. Take a moment to review the targets you set at the beginning of the year—whether it’s saving for retirement, paying down debt, or building an emergency fund. Evaluate how far you’ve come and identify any adjustments you may need to make to stay on track. Life changes, unexpected expenses, or shifts in priorities can all impact your financial landscape, so it’s crucial to ensure your goals remain relevant and achievable. By taking this proactive approach, you can enter the new year with renewed clarity and confidence, ready to tackle your financial aspirations head-on.

Questions to ask yourself:

• What were my financial goals for this year, and have I achieved them?
• What were my financial goals for this year, and have I achieved them?
• What were my financial goals for this year, and have I achieved them?
• What were my financial goals for this year, and have I achieved them?

Year-end financial planning is about more than just closing out the current year, it’s about setting yourself up for success in the future. As we enter the fourth quarter, it’s essential to take a comprehensive look at your financial landscape. By reviewing your portfolio, tax strategies, estate plans and retirement accounts, you can move into 2025 with confidence and financial clarity.