Frequently Asked Questions About Year-End Financial Planning
What is year-end financial planning?
Year-end financial planning is the process of reviewing important areas of your financial life before the calendar year closes. A review may include your income, investments, retirement contributions, taxes, insurance, estate plan, charitable giving, debt, and financial goals.
When should I begin my year-end financial review?
It can be helpful to begin organizing your financial information before year-end deadlines become urgent. Starting early may provide more time to gather documents, identify questions, and coordinate conversations with your financial, tax, and legal professionals.
What documents should I gather for year-end financial planning?
Helpful documents may include recent investment and retirement account statements, year-to-date income information, prior tax records, insurance policies, workplace benefit elections, debt statements, estate documents, and beneficiary information.
What should high-net-worth families review before year-end?
High-net-worth families may want to review investment activity, retirement contributions and distributions, charitable giving plans, estate documents, insurance coverage, tax-related information, family wealth priorities, and upcoming liquidity needs. The appropriate areas to review will depend on the family’s individual circumstances.
How does year-end tax planning fit into a financial plan?
Tax planning may be connected to income, investments, retirement accounts, charitable giving, business interests, and estate planning. Reviewing these areas together can provide a more complete picture for conversations with qualified financial and tax professionals.
Should pre-retirees review their retirement plan before year-end?
Pre-retirees may benefit from reviewing current retirement contributions, anticipated retirement income needs, investment allocation, workplace benefits, insurance coverage, and upcoming life changes. This review can help identify questions to discuss with a financial advisor.
Why should financial decisions be reviewed together?
Financial decisions are often interconnected. A change involving income, an investment, retirement contributions, taxes, insurance, or estate planning may affect another part of your financial life. A coordinated review can help place individual decisions within the context of your broader goals.
Can a Dallas financial advisor help with year-end planning?
A financial advisor can help you review how different areas of your financial life work together and provide guidance based on your individual circumstances. The Pickett Group works with high-net-worth families and individuals seeking personalized financial planning and wealth management in Dallas and beyond.
