Year-end Checklist

Review of Major Life Events and Changes in Financial Position

December is approaching and it's a good idea to review recent developments in your life that may have an impact on your current financial position and plans for the future.

Here's a quick checklist.

Did you reach any of the following ages: 50, 55, 59-1/2, 62, 65 or 70-1/2? Each one of these ages is a significant milestone from a financial planning standpoint. At 50, you can begin making catch-up contributions to your IRA or QRP. At 55 you can begin taking penalty-free distributions from your 401(k) if you are retired. At 59-1/2 you can begin taking penalty-free distributions from your IRA. Sixty-two is the first year you can apply for Social Security benefits. At 65 you can apply for Medicare, and at 70-1/2 you must begin taking required minimum distributions from your IRA.

Did you refinance your home? Refinancing your home could be a simple matter of getting better terms or rates on your mortgage. But it can also be done to take cash out for other needs. If the latter applies to you, then you should probably review all your assets and resources in light of your current and future liquidity needs.

Did you change jobs or retire? Needless to say this can trigger all kinds of issues. Did you have a significant change in income? Did you start drawing on your pension? Is it time to rollover an IRA?

Did you change marital status or did your spouse die? Marriage, divorce or death of spouse are major life events and have wide-ranging effects on all aspects of your finances: taxes, estate planning, titling of assets, beneficiary designations, trusts, and insurance premiums.

Did you add a dependent? With the birth or adoption of a new child, your financial planning picture changes, and this will have an impact on your taxes, education planning, estate planning, beneficiary designations, trusts, and insurance premiums.

Did you sell or transfer a major asset? Such assets would include a primary home, business, or investment real estate.

Did you or any family members have any major health-related events? Did you, your spouse or any other family member incur a severe illness? Was there a material change in your health? Did a parent or spouse enter a nursing home, long-term care facility, assisted living facility or require major hospitalization? Did you become disabled for any period of time?

If you've answered "yes" to any of the above, it's time to take stock and review the impact of these changes on your current financial position and your plans for the future.

 For more information, please contact Jonathan E. Brochstein at Weston Wealth Strategies—(203) 319-9876 or contact Jonathan via email.

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