As we approach the end of 2024, it's an opportune moment to assess your financial status and adjust your goals to start 2025 strong. Use this checklist to ensure you're making the most of your financial opportunities.

1. Review Your Budget and Spending

Examine your income and expenses from this year. Were you able to adhere to your budget, or are there areas that need improvement? Understanding your financial habits can inform your 2025 planning. Consider creating or refining a monthly budget to align spending with your priorities.

2. Maximize Contributions to Tax-Advantaged Accounts

Before December 31, maximize your contributions to retirement accounts like 401(k)s and IRAs. For 2024, you can contribute up to $22,500 to a 401(k) and $6,500 to an IRA, with catch-up contributions if you're over 50. These contributions can lower your taxable income and enhance savings through tax-free growth.

3. Evaluate and Rebalance Your Investments

Review your investment portfolio to ensure it aligns with your financial goals and risk tolerance. End-of-year is ideal for rebalancing by selling overly appreciated assets and reinvesting in underweighted ones, helping maintain a balanced risk profile.

4. Plan Charitable Donations and Gifting

If you intend to make charitable contributions, ensure they are completed by year-end to qualify for 2024 tax deductions. Consider donating appreciated securities for a dual benefit of a tax deduction and capital gains tax avoidance. You can also gift up to $17,000 per person to family members without incurring gift tax.

5. Set Financial Goals for 2025

Reflect on what you aim to achieve financially in the coming year. Whether it's saving for a new home, reducing debt, or planning a significant purchase, setting clear, measurable goals provides direction. Consider meeting with us to evaluate your progress and update your plans as needed.

Taking these steps now will empower you as you transition into 2025. Should you have any questions or need further guidance, we're here to help. Cheers to a successful and prosperous new year!