As the new year begins, you may want to look back on the progress you’ve made this past year in various areas of your life — and that certainly includes progress toward your financial goals. At the same time, you may want to make some moves that can close out the year on a positive note while paving the way for a productive year ahead. Here are a few moves to consider.
Boost your retirement plan contributions – You have until March 2 to contribute to your Registered Retirement Savings Plan (RRSP) for the 2019 tax year. Nonetheless, the sooner you get extra dollars working for you in your RRSP, the better.
Consider selling your under performers – If you own non-registered investments that have lost value since you purchased them, talk to your financial advisor and tax advisor about whether it may be beneficial to sell some or all of these securities before the end of the year. Capital losses may be used to offset capital gains in the current tax year, and unused losses may be carried back three years or used in any future year.
Review your insurance coverage – If you’ve experienced any changes in your life — new spouse, new child, divorce, new job, etc. — you may need to review your insurance coverage to make sure that it’s still sufficient for your needs and that you have the correct beneficiaries in place.
Write yourself a cheque – For goals such as preparing for retirement, a systematic savings strategy is key. Review your monthly or yearly savings to ensure it’s still in line with your future needs. Make your full contribution to your RRSP or a spousal RRSP and/or contribute to a Tax-Free Savings Account (TFSA).
Do an inventory check – Work with your advisor to prepare a financial assessment with a consolidated view of all of your investments, wherever they are held. A portfolio review can identify areas that need attention, including ways to reduce risks or take advantage of market opportunities.
By making these and other moves, you can say a fond farewell to the past year, knowing that you’ve done what you could to help bolster your financial strategy — for the new year and beyond.
While the year-end checklist can differ for every investor, a financial advisor will take a holistic approach to reviewing your investments before helping you develop a practical strategy to achieve your goals.
