As we enter the 4th quarter of 2024, now is the perfect time to take stock of your financial situation and make any necessary adjustments. To help you wrap up the year on a strong note, here is a checklist of actions to consider:

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Financial plan and investment portfolio—From budgeting to asset allocation, it’s time to gauge how the year has unfolded to determine what you need to accomplish in Q4 that aligns with your goals.

• Review your spending, savings and what has changed in the year.

• View your investments and take inventory to ensure your portfolio is in line with your risk tolerance and goals.

• Check your credit and debt details. Recently, the Fed cut rates by 50bps so take advantage of refinance opportunities. Look at your credit cards for status upgrades, offers, rewards or programs to see if it favors the use of one card over another.

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Insurance coverage and/or employee benefits—Make sure insurance policies adequately cover your current needs. Life events may dictate adjustments to your coverage.

• Did your employer change their medical plan?

• In the next year, are there any foreseen additional medical needs and expenses?

• Do you need to review, increase or change your life insurance benefits?

 

Retirement contributions—Maximize retirement account contributions to ensure you are taking full advantage and helping to reduce your taxable income. 2024 limits are:

• 401(k)s: $23,000, with a $7,500 catch-up if you're 50 or older. In 2025, those 60 to 63 can contribute more with a special catch-up of $10,000 or 150% of the standard limit.

• IRAs: $7,000, with an extra $1,000 catch-up if you're 50 or older.

Required Minimum Distributions (RMDs)—Plan for RMDs on retirement or inherited accounts by December 31. For those who turned 73 this year, your first RMD must be taken by April 1, 2025 and your second by December 31, 2025. After that, you must take your RMD by December 31 each year. Looking ahead can help avoid penalties and ensure you’re compliant with IRS regulations.

Prepare for tax season—Reviewing changes now might require adjustments to your withholding status. Consider deferring or accelerating taxable transactions and deductible expenses, tax loss harvesting opportunities or carry overs from prior years.

Tax-saving strategies—Explore options to reduce your liability. Charitable contributions, such as donations to qualified charities or donor-advised funds, can be deductible. If you're 70½ or older, you can transfer up to $100,000 tax-free per year to a charity. For those 73 or older, a QCD can also satisfy your RMD for the year, while reducing your taxable income.

Check your estate plan—Review your documents such as wills, trusts, health care
directives, power of attorneys, and beneficiary designations. With potential changes to estate tax laws on the horizon, it might be a good time to consult an estate planning professional.

Remember, financial health is a continuous process that requires regular monitoring, meeting with your advisor to discuss important life changes and to make relevant adjustments to your plan, portfolio, and risk tolerance.