Amid the hustle and bustle of holiday gatherings, travel, and celebrations, your financial life may start to feel a little cluttered. Before the year ends, make sure to set aside some time to simplify things, to help bring calm, clarity, and confidence heading into January. A simpler system is easier to manage, more secure, and more aligned with your goals, so you’ll be able to focus on what matters most.
Start with a financial “clean up.”
Take inventory of all your myriad accounts (checking, savings, investment, retirement, and credit):
- Are there any old or unused accounts that can be consolidated or closed?
- Any automatic transfers or payments that no longer serve a purpose?
- Is there outdated contact or beneficiary information on investment or insurance accounts?
Streamlining reduces the chance of errors, simplifies record-keeping for tax time, and makes it easier for your spouse or loved ones to step in if needed.
Consolidate where it makes sense.
Many retirees accumulate accounts over decades, a 401k here, an IRA there. Consolidating accounts can make tracking performance and income easier, simplify Required Minimum Distributions (RMDs), and reduce fees and paperwork. Just be sure to make consolidation decisions carefully. Consider investment options, costs, and any tax implications before moving funds in consultation with your financial advisor and CPA.
Review your cash flow system.
Knowing where your dollars are coming from and going can help reduce end-of-year surprises:
- Review your monthly spending and identify recurring subscriptions or charges you no longer use.
- Verify that your Social Security, pension, or investment income deposits are landing in the correct account.
- If you’re drawing income from your portfolio, make sure the withdrawal strategy is still tax-efficient going into the new year.
Go paperless and secure.
Digitizing your statements and records can simplify your financial life while improving security. A simple, organized system helps your family, and your future self, easily locate key information when needed:
- Set up electronic delivery for bank and investment statements.
- Store important documents in a secure, encrypted vault or cloud folder accessible to your trusted contacts.
- Use a password manager to keep credentials organized and safe.
Prepare for tax season early.
By getting ahead now, you’ll avoid the last-minute rush in March and give your tax professional the clarity they need to maximize deductions:
- Create a folder (digital or physical) labeled “2025 Taxes.”
- Gather 1099s, RMD confirmations, charitable receipts, and medical expense records as they arrive.
- If you made large gifts or charitable donations, note dates and amounts for your CPA.
Revisit your financial priorities.
Simplification isn’t just about doing less. It’s about making sure every piece of your financial life serves a purpose. Ask yourself:
- What financial goals are most important for next year?
- Are there charitable or family gifts you’d like to incorporate into your plan?
- Does your current investment strategy still match your comfort level and cash flow needs?
A clear, organized financial picture brings peace of mind. Before the new year begins, spend a few hours cleaning up accounts, reviewing income and spending, and organizing documents. You’ll start January with renewed confidence and a system that best supports your needs. If you’d like help reviewing your accounts or coordinating your year-end financial plan, don’t hesitate to reach out. We’re here to help.
Disclaimer: The information above is for general educational purposes only and should not be considered financial, tax, or legal advice. Always consult with a qualified professional regarding your specific situation. You should consult with your CPA and/or attorney before implementing any estate planning, gifting, or tax-related strategy.