Year-end Checklist

As we reflect on another year gone by, it becomes crucial to have a comprehensive year-end financial planning checklist. This enables us to assess the performance of our money and other assets as well as identify opportunities for a productive and impactful new year. At Synovus, our wealth team is dedicated to assisting you, and we have compiled this checklist to ensure that all aspects of your financial life work harmoniously towards achieving your goals.

Investments and Income

1. Review Your Investment Portfolio: Rebalance your portfolios, considering the impact of market volatility and realigning your investments with your target portfolio mix.
2. Evaluate Tax Strategies: Assess whether tax loss harvesting or other strategies can help reduce your tax liability by offsetting gains with losses.
3. Diversify Concentrated Positions: Mitigate risk by diversifying any concentrated stock positions and consider utilizing a donor-advised fund for charitable contributions.
4. Assess Income Needs: Estimate the cash flow your portfolio is expected to generate in the new year and modify your financial plan if necessary.
5. Align Investments with Values: Request a diagnostic of your portfolio to ensure your investments align with your values and desired impact.

Retirement Planning

6. Maximize Retirement Contributions: Contribute the maximum amount to your 401(k) or other employer sponsored plan if available to you, and/or consider maximizing your IRA contributions to take advantage of tax benefits. Remember – these limits typically increase each year, so double check your contributions if you intend to max them out.
7. Update Beneficiary Designations: Review and update beneficiaries to ensure they reflect your current wishes and avoid potential legal complications.
8. Consider Roth Conversions: Evaluate whether converting retirement funds to a Roth account can optimize tax advantages based on your circumstances.
9. Plan for Future Generations: Open a “child Roth IRA” to provide younger family members with a head start on retirement savings.

Charitable Contributions and Gifts

10. Refine Charitable Giving Strategy: Develop an intentional giving plan that focuses on causes important to you and allows for reactive giving as opportunities arise.
11. Leverage Appreciated Assets: Consider donating appreciated assets to maximize your impact and potentially avoid capital gains tax.
12. Plan Family Gifts: Take advantage of the annual exclusion limit to gift to family members without incurring gift tax or impacting your estate tax limit.
13. Coordinate Qualified Charitable Distributions (QCD’s): If you have reached the age in which you must begin taking RMD’s (Required Minimum Distributions), and have an individual retirement account (IRA), consider making qualified charitable distributions (QCDs) directly from your IRA to eligible charities. QCDs allow you to fulfill your RMDs while excluding the distributed amount from your taxable income.

Other Things to Think About:

14. Keep Your Financial Team Informed: Communicate major life events (marriage, divorce, birth of children, deaths of relatives, etc.) to your financial team to ensure your financial plans and recommendations remain aligned with your changing circumstances.
15. Review Estate Planning Documents: Ensure your will, power of attorney, and other legal documents accurately reflect your wishes and are up to date.
16. Evaluate Tax Withholding: Consult with your tax professional to determine if adjustments to your withholding are necessary for the upcoming year.
17. Consider Early Mortgage Payments: Discuss with your financial planner and tax professional the potential benefits of making your January mortgage payment in December to optimize tax deductions.
18. Set Goals for the New Year: Define your financial goals and aspirations for the upcoming year, ensuring all aspects of your financial life align towards achieving them.

By following this year-end financial planning checklist, you can set yourself up for a successful and impactful new year. If you have questions about any of the strategies discussed here, reach out to us. Your wealth team at Synovus is ready to support you every step of the way.