My husband and I kind of psycho out this time of year.  I would like to say it is on fun things like Christmas decorating or presents or other fun things… NOPE.  We are total nerds.  We go nuts on end-of-year planning, and, worse, on next-year-budget planning.  I am going to spend the next few blogs discussing some year-end planning items you may want to take a look at before the clock strikes midnight and it is too late.  Today, I will give you a quick checklist to get you thinking:

1. Give yourself some quiet time and assess the last year.  How did you do?  Did you meet your financial goals?  Did you have some surprise expenses that threw you for a loop?  How is your debt situation?  Your savings?  Really be honest here.  Just reading this, you obviously care about your situation, so take the time to analyze it, and maybe bring a professional in to look at it with you. 
2. Give yourself some time to look at next year.  Learn from 2018.  What could you do better in 2019? Start NOW.  Who cares if it is the 12^th of December!?!  You can do a lot of damage in 2 weeks.  January 1^st is not a magic day.  Today is just as special.
3. Consider your taxes!  They may be due April 15^th, but the year closes December 31^st.
   • Look at your investments.  Anything you need to sell for a loss?  (Be careful of the wash rules, you cannot sell stock for a loss and then buy it right back.  You have to wait to buy substantially similar stock for 30 days).  While you are looking at this, you may want to look at all your investments and reassess your portfolio and risk tolerance.  How comfortable are you with your current situation? Please discuss with your tax and investment professionals before making adjustments to your portfolio.
   • Contribute the max to your 401(K), especially if there is a company match!  This is FREE MONEY!  Why would you leave that on the table!?!  It takes money out of your earned income for tax purposes, and your employer gives you more money for your retirement, and it grows tax free, there is so much winning going on here you are doing better than Charlie Sheen! Check with your benefits department on your match and when the money vests.  If you leave the company before your match vests, then you could lose it. The max contribution to a 401(K) is $18,500 in 2018.  If you are over age 50, then you may contribute an extra $6,000, so $24,500.  (You have until April 15^th to fun your IRA which is $5,500, or $6,500 if over 50.  You can only do this if you do not have a 401(K), and you must have earned income to match your IRA contributions.)
   • Make sure you took your Required Minimum Distribution.  Are you over 70.5 years old?  You have to take your money out of your retirement account (Calculator).  Do you have an inherited Retirement Account that has already begun distributing? You have to keep distributing!  The penalty is 50% of the distribution!  You do not want to mess this one up.  If you turned 70.5 this year, you do have until April 1^st to take the distribution, but this is only in your 1^st year, and you will still have to take the next one by 12.31.2019. DEFINITELY DISCUSS WITH YOUR TAX OR FINANCIAL ADVISER IF YOU HAVE ONE OF THESE SITUATIONS.  They will help you calculate and let you know exactly what to take from the account.
   • Review your withholding amounts to make sure it is appropriate for next year.  You do not want to over withhold.  Getting a refund does not mean someone did a great job on your taxes.  It means you gave an interest free loan to the government all year, and they are giving you your money back.  If you under withhold too much, you may have penalties.  If you are self-employed, you may consider making quarterly estimated payments.  This is an area to discuss with your CPA.
4. Your Flexible Spending Account does not rollover, so SPEND IT!  Neither do your benefits for any of your doctor’s appointments.  I hope you saw the dentist and got your physical and did all that fun stuff, because they took it out of your paycheck, you may as well use it!
5. Contrary to the Flexible Spending Account the Health Savings Account does roll over, so instead of spending this one, make sure it is fully funded.  You can contribute $3,450 pre-tax if you are single, $6,000 for a family, and if over 55 you can add an extra $1,000.  This is another great savings vehicle, if you have a high deductible health insurance plan.
6. Review your beneficiary designations.  Has anything changed?  Things that pass through your beneficiary designations will never see your will or probate court.  It is important to make sure you are happy with these documents.  Your life insurance and retirement savings accounts are things that will have beneficiary designations.  Or bigger, if you have changed states, you may need new Estate Documents.  Estate Laws are state specific, and it is good to update when you change states, and also good to update your documents every 7-10 years. 
7. Check your credit score and credit report.  This is a good time to scan for anything that looks out of the ordinary or signs of identity theft.
8. Review your insurance needs.  Life insurance, health insurance, property insurance, etc.  Have new children been born?  Any large purchases been made?  Add-ons to your home?  All of these things can change your insurance situation. 

This is not a comprehensive list, but this is a place to start.  The end of the year is a time of contemplation and reevaluation.  You can get a lot accomplished in the down time between Christmas and New Year.  It is a great feeling to start the New Year with a fresh financial outlook.