NEW YEAR’S FINANCIAL CHECKLIST

By Osborn Williams & Donohoe on November 30, 2023

As changes in your life occur, are you adjusting your financial plan accordingly? We’ve put together this 10-point checklist of key areas of your financial life. Take a look and see if you are ready for the year ahead.

01 | LIFE CHANGES (e.g. retirement, new family members, change of residence, etc)

• Do you expect changes in your personal life that will significantly impact your financial plan (switching jobs, changing your marital status, moving to another residence, etc.)?
• Are there significant events occurring that will impact your family members, such as children going to college or getting married, parental needs, etc.?

02 | OVERALL FINANCIAL PLAN UPDATES

• Do you have a documented financial plan that has been reviewed within the past six months?
• Do you expect significant changes to your income and expenses in the upcoming year?
• Does your budget reflect your values and priorities?
• Have you taken into account long-term compensation (e.g., stock options, restricted shares, etc.) and long-term savings (e.g., retirement plans)?

03 | OVERALL FINANCIAL PLAN UPDATES

• Do you have an emergency fund that would cover three to six months of expenses?
• Is your emergency fund able to be accessed easily if necessary?

04 | INSURANCE POLICIES AND COVERAGE

• Homeowners/renters: is it sufficient to cover your home and property against disasters?
• Life insurance: will it replace your income for your dependents?
• Disability insurance: do you have income support if you are injured or disabled?
• Healthcare insurance: do you have suitable healthcare insurance?

05 | LIFE CHANGES (e.g. retirement, new family members, change of residence, etc.)

• Are your current loans or credit cards at higher-than-market rates? Should you consider refinancing or consolidating these loans?
• If you have outstanding loans or credit, do you have a plan for paying back what you owe in a timely manner?

06 | GIFTING TO HEIRS OR CHARITIES

• Have you considered making gifts to heirs while you are living to reduce the size of your estate?
• Do you have a charitable giving strategy? Have you considered bunching charitable donations for potential tax benefits?

07 | ESTATE PLANS AND ASSOCIATED LEGAL DOCUMENTS

• Do you have an estate plan in place that accurately reflects your intentions?
• Do you have a living will, healthcare directive, healthcare proxy and durable power of attorney?
• Have any changes occurred that might require updates to these documents?

08 | TAX CHANGES THAT MAY IMPACT YOU

• Did any tax law or IRS rule changes occur that will impact your financial planning? These could include the following:
  • Changes in tax rates or deductions
  • Changes in contribution limits to retirement accounts
  • Changes to required mandatory distributions from retirement plans

09 | ELIGIBILITY FOR BENEFITS AND RETIREMENT PLANNING OPPORTUNITIES

• If eligible, should you take advantage of catch-up contributions to your retirement accounts or HSA?
• Are you hitting one of the key dates for eligibility for a government benefit or incentive this year (e.g., 50 for catch-up retirement account contributions, 62 for Social Security, 65 for Medicare or 70^1/2 for qualified charitable distributions)?

10 | RETIREMENT INCOME PLAN (if retired or semi-retired)

• Have you reviewed the status of your income sources (Social Security, pension payments, annuities, etc.)?
• Have you reviewed your retirement expenses?
• Do your required minimum distributions (RMDs) cover the balance of these expenses?
• Is your retirement plan able to weather the key retirement risks (e.g., longevity, healthcare, inflation and poor market returns)?
• Have you made adequate accommodations for healthcare needs, including appropriate Medicare options?