We’re edging toward the end of 2023. What are the financial moves you really should make before the clock runs out?
Luckily, financial planners spend the final weeks of the year thinking about just such things. We asked several of them for their thoughts, and we made a list of six key financial steps to take by Dec. 31.
The advice runs the gamut from retirement savings to insurance coverage to savvy tax shelters.
Update the beneficiaries on that 401(k) or life insurance policy
Your typical investment account or life insurance policy requires you to name beneficiaries, the loved ones who will get the money upon your demise. For many of us, beneficiary designations function as an estate plan: they’re legally binding and dictate what happens to a large portion of your assets.
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Some people don’t get around to naming beneficiaries. Births, deaths and family feuds can change the estate-planning landscape. The end of the year is a good time to take stock.
“I suggest making sure your beneficiaries are up to date on your investment accounts,” said Colin Day, a certified financial planner in St. Louis.
“It might not be the first thing people think of, but you will be surrounded by loved ones during the holiday season,” Day said. “It’s a great reminder that you love and support these people, and you want to make sure your hard-earned dollars will get to them if something were to happen.”
