With the end of the year approaching fast, you’ve got a lot of things on your mind. Between traveling, shopping and prepping for the holidays, don’t forget to carve out time to review your investments. You don’t want to miss out on a potential opportunity to better secure your retirement future or save a little on your taxes. Here are five investment reviews to consider doing at the end of the year.
Talk to a trusted advisor
Make an appointment to meet with your HR representative to review your retirement benefit allocations. Also talk with a financial professional to go over the investments in your retirement plans. A professional can help you identify needs, and uncover risks and opportunities within your financial plan.
Review your retirement assets
When saving and investing for retirement, make sure you’ve contributed consistently and have an investment plan suitable for your retirement needs. Your investments should reflect the amount of risk you’re willing to take for the return you are receiving. A financial professional can help you identify needs and uncover risks and opportunities within your financial plan.
Maximize 401(k) contributions
If your finances allow, make extra contributions to your 401(k) plan. Consider increasing your contribution percentage for next year, too. For 2016 and 2017, the limit for elective contributions is $18,000 for individuals or $24,000 if you are 50 and older. Adding a boost to your contributions this year or next may reduce your taxable income and bolster your retirement savings.
Reduce taxes on investment accounts
If you’ve sold stocks or mutual fund shares for a gain during the year, consider offsetting those gains by selling underperforming stocks or mutual funds at a loss. There are many things to take in to account before doing this. Speak to your tax advisor and financial professional before making any final decisions.
Review beneficiary designations
Time has a way of changing circumstances, which means you may need to update your beneficiaries. Start by taking a look at who you’ve designated as beneficiaries on your retirement accounts. Then move on to outside investments like individual retirement accounts.
Don’t lose sight of your finances when the end of the year rolls around. Be proactive about managing your investments and your financial plan. Make it a gift to yourself.
The advice provided is for informational purposes only. Contact a financial advisor for additional guidance.