5 Questions to Ask a Financial Advisor Before the Year-End

As the end of the year approaches, it’s time to start thinking about tax impact and even preparing for next year. Before the year is over, make sure that you have everything in line. Ask your financial advisor these key questions.

1. Have I Taken Advantage of All Tax-Advantaged Accounts This Year?

 

Some accounts, like your 401(k) accounts, Roth IRAs, and health savings accounts are tax-deductible. If you haven’t taken full advantage of those accounts, now is the time! Make sure you have shifted the funds you need to those accounts in order to maximize your benefits and decrease your taxes for the current fiscal year.

2. Am I In Line with My Financial Goals?

 

Hopefully, you’ve been talking to your financial advisor about your big-picture financial goals, whether that means how much money you want to set aside for retirement or your goal of owning your own home. Talk to your financial advisor about what progress you have been making toward those goals and where you may need to make changes in the coming year to make the most progress toward those goals. Your financial advisor may be able to offer insight into changes you can make to get you closer to those goals by the end of the year or help you assess the changes you may want to make next year.

3. Are There Any Financial Moves I Need to Make Before Year’s End?

 

Talk to your financial advisor about anything you may need to do before the end of the year, whether that’s making a last charitable donation to decrease your tax requirements or making a purchase like solar panels that you can deduct from your taxes. Your financial advisor can help you make any necessary shifts now to decrease your overall tax burden or maximize your earnings.

4. Is My Investment Strategy Still In Line With My Current Financial Goals?

 

As your financial needs change, you may also want to shift your investment strategy. For example, if you’re getting close to sending a child to college, you may be ready to start selling real property or making shorter-term investments. Let your financial advisor provide you with critical insight into what you may need to do differently in order to continue to meet your financial goals.

5. Do I Need to Make Any Changes to Estate Planning Documents?

 

In addition to the other advice your financial advisor can offer, they can provide some insight into your estate planning needs–including when you may need to make changes to your will or other important documents. Talk to your financial advisor about the best way to protect your assets in the future.

Ideally, you should work with your financial advisor throughout the year to ensure that your investments stay on track and that you’re able to keep up with your financial needs. As the end of the year approaches, however, ask these key questions to get a better idea of how you can protect your investments this year and in the future.