As we approach the end of 2020, it is the perfect time to assess your current financial situation. Here are five areas to focus on this week during the last few days of the calendar year:

  1. Assess Your Goals. If you have a financial plan, this is the perfect time to determine what you accomplished, as well as some goals that maybe you need to do better on next year.
  2. Don’t Forget About Your 401k. If your employer has a workplace retirement fund, be sure that you don’t miss out on those tax deductions. Also, don’t leave any “free money” on the table when it comes to money your employer will match with your contributions.
  3. Check Your Unused FSA Balance. Many FSA plans have a “use it or lose it” clause, meaning if you don’t use the money that year, you lose any remaining balance. If you need to take care of any last-minute medical expenses, do it now, before January arrives.
  4. Review Your Insurance Coverage. No matter what type of policy you have (or don’t have), now is a great time to take a look at life insurance, disability insurance, homeowners’ insurance (or renters’ insurance), and long-term care insurance. All of them are incredibly important to a sound financial plan. Be sure they are all up to date.
  5. Talk to Your Accountant. Make sure you have discussed your financial situation with your tax professional so you can determine some ways to potentially save on this year’s taxes.

2020 has been a tough year for almost everybody. But do yourself a favor and take care of these five steps above to help you begin 2021 with a head start.