Your year-end wealth planning checklist for the holiday season

As the year comes to a close, there are many to-do’s on our minds. Holiday shopping, travel, and making New Year’s plans are all essential parts of the season. But it’s also critical to take a moment to make sure that you’re still on track towards achieving your financial goals.

There is no better time than now to revisit your plans, solidify your strategy and accomplish those goals you set out to achieve at the start of the year (or before that).

1. Review your long-term financial plan

Life is unpredictable; no one can foresee the future. Likewise, changes can occur at any time, and all these factors influence your financial plan. Hence, you must ensure changes are implemented accordingly to keep your plan relevant and effective. Reviewing your financial plan periodically will lead you to achieve your envisioned financial goals and maintain stability.

2. Rebalance your portfolio to stay on track

Rebalancing brings your portfolio back to its target allocation after a market move. In simple terms, keeping an eye on the performance of your assets in the strategy is critical to identify if you need to rebalance your positions.  This can either be done manually or through an automated process. In either case, rebalancing is essential for keeping a well-diversified portfolio on track.

3. Make a difference through charitable giving

The best way to ensure that your charitable giving strategy is successful is to plan for it. There are many ways you can allocate your wealth effectively whilst taking advantage of any tax benefits that come with gifting, but in most cases, that’s not your top priority.

Choosing how much—and when—to give away can be a tricky balancing act. You want to do good in the world, but also make sure your assets are protected so they can support you later on. Working with an adviser to effectively integrate this aspect into your financial plan can make a significant impact on the execution and implementation of your charitable strategy.

4. Plan for any year-end bonuses in your financial plan

If you receive a year-end bonus, it can be tempting to spend it on an indulgent vacation or an expensive shopping spree. However, if you want to reach your financial goals at a faster rate, consider investing some or all the bonus. Consider if you need that bonus, or can you direct it straight to your retirement plans, or if charitable giving is your top priority, your bonus is a great source to fund your annual donations.

5. Review your estate plan and beneficiary designations

A proper estate plan is not the result of a singular event. Life events, relationships, births, and deaths can all affect your estate plan. It's important to review beneficiary designations regularly to make sure the intended beneficiaries are appropriately named, and their respective shares or portions are correctly delineated. An up-to-date estate plan will help protect your hard-earned assets for future generations and provide financial stability for your family.

In conclusion, we all need a reminder to stay on track with our goals. As we end the year and look ahead to 2023, it’s a great time to make sure that our financial plans are front and centre of everything that we do.

With clear goals in mind, there is no better time to adjust behaviours and habits so that they are aligned to achieve success.