Every year around this time, the calendar seems to speed up.
One minute we’re settling into fall. Then Thanksgiving plans start taking shape, holiday invitations arrive, shopping lists get longer, and before we know it, we’re looking at the end of December and wondering where the last two months went.
That’s one reason I encourage people to have their year-end financial conversations before the holidays really get going.
Not because anyone wants to spend the holiday season thinking about finances. Quite the opposite.
Taking care of what needs your attention now can help to get it off your plate and make room for everything else that comes with this time of year.
Is There Anything You Need to Do Before December 31?
A lot of financial planning is long-term. We think about retirement, protecting our families, building savings, and preparing for goals that may be years down the road.
But there are also financial decisions and deadlines that can come up at the end of the year.
Retirement contributions, required distributions, charitable giving, investment decisions, or questions for your CPA may all deserve a look before the calendar turns. That doesn’t mean everyone needs to make changes. In many cases, a review may simply confirm that you’re already on the right track.
But it’s better to know that now than to get into January and realize there was something you could have addressed in December.
What Worked Last Year May Not Be the Answer This Year
Financial rules, limits, and tax thresholds can change from year to year. More importantly, your life can change, too.
Maybe your income changed. Maybe you started a new job or a business. Perhaps retirement is getting closer, you welcomed a grandchild, helped an aging parent, paid off a mortgage, or experienced another change that affected your financial picture.
Even a year that seemed relatively uneventful can look different when you take the time to review it.
That doesn’t mean something necessarily needs to change. Sometimes we sit down, look at everything, and determine that the plan is still doing exactly what it’s supposed to do.
That’s a good outcome.
The goal isn’t to find something to change. It’s to make sure you’re not missing something that deserves your attention.
Make Sure Everyone Is on the Same Page
For many people, financial planning involves more than one professional.
Your CPA may be helping with taxes. Your attorney may be handling your estate plan. Your financial professional may be helping with investments, insurance, retirement, and the bigger financial picture.
Each may be looking at a different piece, but all of those pieces belong to you.
A decision in one area can affect another which is why the end of the year can be a good time to make sure that the right people have the right information. Has something changed that your CPA should know about? Does your attorney need updated information? Is there a question one professional should be discussing with another?
Sometimes good planning is simply making sure that everyone is working from the same playbook.
Look Ahead to the Year to Come
Year-end planning isn’t only about wrapping up the current year. It’s also an opportunity to look at what may be coming next.
Maybe retirement is getting closer. Perhaps you’re thinking about buying or selling a home. There may be a wedding, college tuition, a new grandchild, a career change, or something significant happening with your business.
You don’t need to have every detail figured out before January 1.
But when you know what may be coming, you can begin preparing for it instead of waiting until it arrives.
Get It Off Your Plate
There’s already plenty competing for our attention during the holidays. Your financial to-do list doesn’t need to be one more thing hanging over your head.
Have the conversation. Ask the questions. Find out whether there’s anything that needs your attention before the end of the year.
And if there isn’t? That’s good news, too.
At Cornerstone Financial Group, we believe good planning should help you to understand where you stand, what deserves your attention, and what you don’t need to worry about right now.
Take care of what you can before the holidays get into full swing.
Then go enjoy them.
You’ve got enough on your plate already.
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