Your 4th Quarter Financial Checklist: 7 Things to Review Before Year-End
As the year enters its final few months, now is a great time to take a closer look at your finances. Between busy fall schedules, the holidays, and preparing for a new year, financial planning can easily get pushed to the bottom of the list.
But you don't have to wait until December to start thinking about year-end planning.
For individuals and families throughout Allentown, the Lehigh Valley, and surrounding Pennsylvania communities, the fourth quarter can be an ideal time to review your financial picture, identify areas that may need attention, and make sure your strategy continues to align with your goals.
Here are seven areas to consider reviewing before the end of the year.
1. Review Your Retirement Contributions
Start by looking at how much you've contributed to your retirement accounts so far this year.
If you participate in an employer-sponsored retirement plan such as a 401(k), review your contribution rate and determine whether you're taking full advantage of any employer match available to you.
You may also want to review contributions to IRAs or other retirement accounts that are part of your overall strategy.
Small adjustments today can make a meaningful difference over time. Your contribution strategy should reflect your income, current financial needs, retirement timeline, and long-term goals.
2. Take a Look at Your Investment Portfolio
A lot can happen in a year. Changes in the markets, your personal circumstances, or your retirement timeline can all affect whether your current investment strategy still makes sense for you.
The fourth quarter can be a good opportunity to review your:
Current investment allocation
Risk tolerance
Investment objectives
Retirement timeline
Overall diversification
Rather than making decisions based solely on short-term market movements, consider how your investments fit into your broader financial plan and long-term objectives.
3. Check Your Beneficiary Designations
When was the last time you checked the beneficiaries listed on your retirement accounts, life insurance policies, and other financial accounts?
Major life events such as marriage, divorce, the birth of a child or grandchild, or the loss of a loved one may mean that your beneficiary designations need to be updated.
Even if you haven't experienced a major change this year, reviewing your beneficiaries periodically can help ensure your accounts reflect your current wishes.
4. Review Your Insurance Coverage
Insurance is another important piece of a comprehensive financial strategy.
As you approach the end of the year, consider whether your existing coverage still fits your current situation. This may include reviewing life insurance, health insurance, and other protection strategies.
Your income, family responsibilities, debts, and long-term financial goals can change over time. Your insurance coverage may need to change with them.
For those approaching retirement, this may also be a good time to begin thinking about how healthcare expenses could fit into your retirement income strategy.
5. Think About Your Tax Strategy
Taxes can have a significant impact on your overall financial picture, particularly as you prepare for retirement.
Before the year ends, consider discussing potential tax-planning opportunities with your financial and tax professionals. Depending on your individual circumstances, there may be strategies worth reviewing before December 31.
Tax planning shouldn't happen in isolation. Ideally, it should work alongside your retirement, investment, income, and estate planning strategies.
6. Revisit Your Retirement Income Plan
If you're approaching retirement, ask yourself an important question:
Do you know where your retirement income will come from?
Retirement planning isn't only about accumulating assets. Eventually, you'll need a strategy for turning those assets into income.
That may involve coordinating several potential income sources, including:
Social Security
Employer retirement plans
IRAs
Pensions, if applicable
Personal savings and investments
Understanding how these pieces may work together can help you prepare for the transition from earning a paycheck to creating a sustainable retirement income strategy.
7. Start Setting Your Financial Goals for 2027
You don't have to wait until January to start thinking about next year.
Take some time to consider what you'd like your finances to look like in 2027.
Maybe you want to increase your retirement contributions, build your emergency savings, reduce debt, revisit your investment strategy, prepare for retirement, or simply become more organized with your finances.
Writing down a few specific goals now can give you a clearer starting point when the new year arrives.
Don't Wait Until December to Review Your Financial Plan
Year-end financial planning doesn't have to be overwhelming. A fourth-quarter review can simply be an opportunity to see where you stand, identify anything that has changed, and determine whether your current financial strategy still supports where you want to go.
At Cornerstone Portfolios, we work with individuals, families, and businesses throughout Allentown and the greater Lehigh Valley area to help them better understand their financial picture and develop strategies designed around their individual goals.
Whether you're preparing for retirement, reviewing your investments, evaluating your insurance needs, or simply wondering what your next financial step should be, we're here to help.
Ready for a year-end financial check-in?
Connect with Cornerstone Portfolios to schedule a conversation and start preparing your financial strategy for the year ahead.