Annual Financial Review Checklist: Tracking Life Changes And Adjusting Goals.pdf

# Annual Review Checklist

## Family Changes & Personal Milestones
- Birth of a child, adoption, reaching age 18/21, college attendance, marriage/divorce of adult children, birth/illness of grandchildren.
- Marriage, divorce, remarriage, death of a beneficiary.
- New job, power of attorney assignment, estate planning revisions.

## Financial Assessments

### Account for Changes
- Review and update beneficiary designations (qualified plans, IRAs, life insurance).
- Adjust titling of assets (bank accounts, brokerage accounts, property).
- Update estate planning documents (wills, trusts, power of attorney).

### Adjust Financial Goals
- Reevaluate long-term savings goals (target retirement income, date).
- Assess intermediate-term savings goals (vacation home, college savings).
- Consider changes in saving capacity due to income or expense shifts.
- Set new financial goals if applicable.

### Prepare for the Unexpected
- Build/maintain an emergency fund covering 3-6 months' worth of expenses.

### Rebalance Investments
- Annually rebalance investments to match risk tolerance and goals.
- Consider diversifying into new asset classes (commodities, alternatives).
- Review risk tolerance with a financial professional.

### Tax Planning
- Assess taxable income from work and investments.
- Estimate marginal tax rate for the year.
- Account for any changes or anticipated changes in taxable income.
- Consult with a financial advisor regarding taxable investments.

### Retirement Plan Contributions
- Review employer-sponsored retirement plan participation and contribution amounts.
- Enroll/re-enroll in catch-up contributions if eligible (age 50+).
- Examine the availability of Roth options in your plan.

### Small Business Retirement Plans
- For business owners, assess the need for a small business retirement plan.
- Review plan eligibility and needs as the business grows.

### IRA Contributions & RMDs
- Determine Traditional/Roth IRA contribution eligibility.
- Plan for Required Minimum Distributions (RMDs) to avoid penalties.
- Consider Charitable Distribution Options (QCDs).