Year-End Money Moves to Consider

(Inspired by our friends at Fidelity Investments)

Portfolio Diversification
Review your risk tolerance, then rebalance your portfolio to the right mix.

Tax-loss Harvesting
In taxable accounts, sell losing investments if you don't love them.

Charity
Tax-deductible charitable donations help others while reducing your tax burden.

Retirement Plan Top-Off
Make sure you have contributed the minimum necessary to get the maximum free money from your employer, then max-out your Roth IRA or do a Roth Conversion, and then finish maxing-out your retirement plan at work.

Flexible Spending
Use it or lose it?  Use it!  Carry-over?  Double-check and make sure that's offered.

Beneficiaries
Your IRAs, 401(k), TSP, and insurance policies rule.  Whatever your Will or Trust says about who gets your money is trumped by what is designated on your actual accounts and policies.  Make sure it's all in sync.

RMD
Required Minimum Distribution from your IRA, inherited IRA, or employer-sponsored retirement plan.  DO NOT forget this--it will cost a 50% of the RMD in penalties, in addition to the taxes you already have to pay on the RMD.

Open Enrollment
If you have healthcare and other benefits at work, now may be the time to update/confirm your selections for the coming year.

College Savings
Review your 529, ESA, UGMA/UTMA accounts and make sure you know which to contribute to before year-end and in the coming year.

Financial Check-up
Review your investment/financial plan.  Are you on-track to meet long-term goals?  If not, what changes can you make now to help things work better down the road?