The end of the year is the perfect time to sit down and get your financial affairs in check. This not only lets you see where you stand for the year but also eliminates that last minute rush come tax time. While not everyone has the same assets, the following tips are the most recommended by top financial advisors for year-end financial planning.
Related Post: Top 7 Websites That Can Help With Your Finances
Use Flexible Spending Accounts
Money that is left in these accounts on December 31 is gone for good. Try to use as much of the money as you can to avoid losing all that you have contributed to the accounts.
Think About Giving
This is the time of the year to determine if you are going to donate to any charity and decide which one and what amount. Any deductions you get at tax time will be based on amounts given before the year ends.
Reassess IRA and 401(k) Plans
For those under 70, this may not involve a great deal of work, but for those turning seventy, you will need to make decisions regarding dispersed funds in the coming years. While you are on this subject, make sure you take all required payouts from these accounts before the year ends and you incur a penalty.
Consider Taking a Tax Loss
Some of your investments may be on the losing end of the spectrum. Now would be a great time to sell those shares and take a loss for the year instead of allowing for a carry over that might result in further losses next year.
Prepare for Tax Law Changes
This is the time of the year to make sure all your tax papers are easily accessible and in order. Take time to become educated on any new tax laws that pertain to you. Getting things in place now will give you plenty of time to prepare and help eliminate tax-time stress.
Related Post: Top 8 Ways Technology Can Improve Your Finances