2023 Year-End Financial Checklist & Important Deadlines and Dates

2023 Year-End Financial Checklist

As the holiday season draws near, we extend our gratitude to our valued clients, friends, and partners for their support. While the financial markets are beyond your control, the year-end checklist provided below offers 20 actionable steps that are well within your grasp. These actions, spanning from the pragmatic to the aspirational, have the potential to enhance your financial well-being and prosperity.

1. Budget Review and Adjustment:

  • Review your current budget to assess financial goals and expenses.
  • Make necessary adjustments for the upcoming year based on your financial objectives.

2. Tax Planning:

  • Study your 2022 tax returns for opportunities in 2023, such as Roth conversions.
  • Take advantage of tax benefits like contributing to retirement accounts and Health Savings Accounts (HSAs) before the 12/31/2023 deadline.
  • Send your 2022 tax returns to your advisor so that can review it with you and plan for 2023.

3. Investment Portfolio:

  • Review your investment portfolio to align it with your long-term financial goals.
  • Ask your financial advisor about ESG investing.

4. Charitable Giving:

  • Make year-end charitable donations for potential tax deductions.
  • Explore “bunching” strategies for optimizing deductions.
  • Here’s some of the worthwhile causes that ZRC supports.
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5. Retirement Planning:

  • Maximize contributions to retirement accounts (e.g., 401(k)s, IRAs) by year-end.
  • Assess your retirement goals and progress.

6. Health Insurance and Medicare:

  • Review and adjust health insurance plans and prescription drug coverage.
  • Consider enrolling in a High Deductible Health Plan and contribute to a Health Savings Account.

7. Debt Management:

  • Assess and plan for paying down outstanding debts.
  • Review your credit report for accuracy.

8. Emergency Fund:

  • Ensure your emergency fund is sufficient to cover unexpected expenses.

9. Insurance Review:

  • Review and adjust insurance policies (health, life, auto, home, etc.) to match current needs.
  • Consider Umbrella insurance for additional coverage.

10. Estate Planning:

  • Review or update estate planning documents, including wills and trusts.
  • Ensure beneficiary designations are current.

11. Business Financials (for Business Owners):

  • Review financial statements and performance for the year.
  • Make necessary adjustments and plan for taxes.

12. Accounting and Bookkeeping (for Small Businesses):

  • Keep financial records up to date.
  • Prepare for year-end financial reporting and taxes.

13. Record Keeping:

14. 529 Plan Contributions:

  • Consider making contributions to 529 college savings plans for educational expenses.
  • Your ZRC Wealth Advisor can give you guidance.

15. Required Minimum Distributions (RMDs):

  • Ensure you take your RMDs from retirement accounts to avoid penalties.

16. Cybersecurity:

  • Monitor online and cyber security by changing passwords regularly and using two-factor authentication.
  • Be cautious of suspicious emails and requests for personal information.

17. Financial Conversations:

  • Initiate important financial conversations with family, including parents and children. ZRC has a lot of experience with this. Contact your advisor to learn how they can help.

18. Tax-Loss Harvesting:

  • Sell underperforming investments in taxable accounts to offset taxes on gains.
  • Be aware of the IRS’s Wash-Sale rule when reinvesting.

19. Financial Advisor Consultation:

  • Schedule a year-end meeting with your financial advisor to discuss your financial situation and goals.

20. Planning for 2023:

  • Set financial goals for the upcoming year and create a plan to achieve them.

This checklist covers various aspects of personal and business finance, investment, tax planning, and retirement preparation. Be sure to consult with a tax professional or your ZRC wealth advisor for personalized guidance based on your unique financial situation and goals.

Now is when we are contacting clients to schedule year-end reviews. If there is a particular date and time that works best for you in the next few months, please contact your advisor or another member of your service team to schedule it. Otherwise, expect to hear from us by email or phone soon.

Important deadlines and dates

Oct 15 – Dec 7…. Medicare Open Enrollment

Oct 25……………… IRS expected to release 2023 tax information and contribution limits

Oct 31- Nov 1….. Federal Reserve Open Market Committee meeting

Nov 16………………Due date for filing Federal and State returns and for contributing to Solo 401(k) or SEP Plan for 2022 by Self-Employed for those affected by winter natural disasters in 55 California counties

Dec 12-13…………. Federal Reserve Open Market Committee meeting

November 23…… Thanksgiving – The financial markets are closed and so are ZRC offices

December 25……. Christmas – The financial markets are closed and so are ZRC offices

December 31……. Last day to contribute to charity (for a Tax Deduction) & make 401(k) contributions

Keeping things in perspective

In these times of economic and financial uncertainty, ZRC Wealth Management remains dedicated to providing guidance and support to help you navigate your financial journey. We’re here to cultivate financial tranquility and empower you to make informed decisions. Please feel free to reach out to us with any questions or concerns. Thank you for entrusting us with your financial futures.

Lastly, please remember to complete your ZRC survey.  We’d really appreciate your feedback!

The information provided here is for general informational purposes only and should not be considered investment advice. ZRC does not provide tax advice. Clients should consult a professional tax advisor for their tax advice needs..