Annual Financial Planning Checklist

The path toward financial security can hinge on setting clear financial goals and regularly tracking your progress. Without specific objectives, you could be prone to overspending or get caught off guard by life’s surprises. Whether you consult a financial advisor or take the DIY route, creating and updating a financial plan annually can be potentially crucial for your financial future.

Your Financial Planning Checklist

1. Personal Inventory: Begin with an annual snapshot of your finances. Update your list of assets, debts, and credit utilization to gauge your financial health. Compare this year’s inventory with the previous one to assess progress towards debt repayment and savings goals.

2. Life Changes: Reflect on the past year’s significant life events and anticipate upcoming changes, such as job transitions, marriage, or relocation. Adjust your financial plan to accommodate these shifts, including considerations for education savings or long-term care insurance.

3. Retirement Savings Adjustments: Retirement planning deserves special attention. Reassess whether a traditional or Roth retirement account suits your tax situation. Consider IRA conversions, rollovers from previous employers, and whether you’ve maximized your contributions.

4. Investment Portfolio Review: Annually realign and rebalance your portfolio with your financial goals and desired asset allocation. Keep in mind the tax implications of buying and selling investments, and explore tax strategies like tax-loss harvesting to potentially reduce your tax burden.

5. Insurance Coverage Evaluation: Ensure your insurance policies, including homeowner’s, renter’s, accident and disability, are up to date and offer adequate coverage. Health insurance and HSAs should also be reviewed.

6. Estate Planning Update: If you have an estate plan, verify that it reflects your current wishes. If not, consider creating a revised version. Explore the benefits of transferring assets to heirs early to fulfill your intentions and engage in tax minimization strategies.

Empower Your Financial Journey

By following this checklist, you can take control of your finances. Regularly updating your financial plan helps to ensure that you’re prepared for both the expected and unexpected, and can help you see it you are on the path to your financial goals. Remember, it’s not just about planning; it’s about adjusting those plans to fit your evolving life and financial landscape.

Annual financial planning can help you on the path toward securing your financial future. Ready to start or update your plan? Reach out or schedule a meeting.