Your 2024 Year-End Financial Checklist

Vickie Messman is a planning excellence lead consultant at Northwestern Mutual.

As 2024 draws to a close, it’s an ideal time to review your finances and prepare for the opportunities and challenges that lie ahead. In a year of economic uncertainties, evolving interest rates and a changing job market, taking concrete actions to strengthen your financial foundation can provide peace of mind as you aim for long-term goals.

2024 year-end checklist

Manage risks

No one can predict the unexpected, but that doesn’t mean you can’t do your best to be ready for when it arrives. Preparing for life’s uncertainties is vital to your financial health, as it helps you navigate life’s occasional choppy waters without throwing your financial plan overboard.

Top off your emergency fund: As the year winds down, it is a good time to refill your “rainy day fund” if you’ve tapped into it during the past year. If you haven’t yet established a cushion, this is a good time to start one. Aim to set aside three to six months’ worth of expenses in an account that you can access easily to cover unexpected bills. Having these funds at the ready can help you cover surprise expenses, such as car repairs or medical expenses, without relying on high-interest credit cards or dipping into long-term savings.

Review your insurance policies: How did your life change during the past year? Did you start a new job or get that big promotion and now have a higher paycheck? Maybe you got married or had a child? Life’s big moments can mean you have more to protect. Depending on your situation, you may want to consider upping your life insurance or disability insurance coverage or updating beneficiaries on existing policies.

Time for a health care checkup: October through December is typically open enrollment for health care coverage. Review the current coverage in your health plan and compare it with new plan options to make the best choice for yourself and your family. If you have a health savings account (HSA), you may want to max out annual contributions ($4,150 for an individual and $8,300 for families in 2024) to maximize the triple tax advantages—money goes in tax-free, grows tax-free, and comes out tax-free for qualified health care expenses. If you’re at least 55 years old, you can also contribute an extra $1,000 to your HSA.

If you have a flexible spending account (FSA), you typically need to spend your contributions by the end of the year. Check your spending deadline and use funds that can’t be carried over to next year. 

Check in on your investments

Investing for growth is a key part of building your nest egg for big costs in the future like retirement. Whether retirement is just around the corner or you anticipate a long career ahead, there are a few things to consider on at least an annual basis.

Rebalance your portfolio: You’ll want to regularly check that your portfolio’s asset allocation (the mix of stocks, bonds and other assets) still reflects a level of risk that fits with your goals and investment horizon. If not, consider rebalancing to bring your portfolio back in line with your risk tolerance and goals. You may need to rebalance your portfolio to bring your investment holdings back in line with your risk tolerance and goals.

Recognize capital gains or losses: Selling investments at a loss hurts but can also reduce your taxable income for the year. This is called tax-loss harvesting. Depending on your situation, you may also want to sell investments that have appreciated and realize gains. It’s a good idea to work with your financial advisor or tax attorney to think strategically about when it makes the most sense to recognize capital gains or losses.

Top off retirement contributions: If your financial situation allows, it may be a good idea to up your contributions to your retirement account. This can be a good yearly practice until you’re contributing the maximum amount allowable to an IRA, 401(k), 403(b) or their Roth counterparts if those are available to you. The tax advantages these accounts offer can help your money go further over time.

Revisit your budget

A little planning can help you get the most out of your budget. The end of the year is a great time to reflect on your spending plan and adjust it for the upcoming year.

Update or establish your budget: Review your 2024 spending this past year and update how you plan to allocate your money for 2025 and beyond. Tracking your spending is a great way to see where your money is going and can help you prioritize those things that are most important to you. If you don’t have a budget in place, now is the time to create one.

Review rates on outstanding debt: As interest rates fluctuate, it is a good time to review the current interest rate levels of your outstanding loans (such as mortgages, personal loans and credit cards). Prioritize paying off high-interest debts, and explore options for refinancing to lower interest rates.

Prep for big events: No one can predict the future, but we can plan for big events, such as weddings, surgeries, vacations, or buying a car or home. If you’re planning a big-ticket expense in the coming years, add that into your budget and start setting aside money.

Check your credit: Many consumer finance companies provide free, real-time credit scores. If you have access, check your score and make sure it’s where you want it to be (typically 740 and higher is considered very good). Also, request a copy of your credit report. The Fair Credit Reporting Act requires credit reporting companies to provide a free copy once every 12 months. While we’re on credit: If you’ve accumulated credit card reward points, use them before they expire!

Lean on your financial advisor

This isn’t necessarily an exhaustive list given that everyone’s financial situation is different. But it is a good jumping-off point. And it’s important to point out that while all of these tips might appear to be separate checklist items, they all work together.

That’s where your financial advisor can help you build a plan that incorporates a range of financial options, each of which reinforces the others. If you already have a financial plan, it’s good to check in on it yearly. If you don’t have a plan yet, get one! Your plan can help put you on the best path to achieving whatever is important to you in life.

This publication is not intended as legal or tax advice. Financial Representatives do not render tax advice. Consult with a tax professional for advice that is specific to your situation.