As we approach the end of 2024, it becomes crucial to assess the financial moves we should make. Financial planners are already focused on these matters, and we've gathered their suggestions to help you make the most of the final weeks. Here are the key steps to consider.

Secure Your Financial Future Before the Clock Ticks

Update Beneficiaries on 401(k), Life Insurance Policy

Typically, an investment account or life insurance policy requires naming beneficiaries. These designations act as an estate plan and are legally binding. For many, they determine what happens to a significant portion of assets. It's essential to ensure your beneficiaries are up to date. As Colin Day, a certified financial planner in St. Louis, suggests, "Making sure your beneficiaries are in place is a simple yet crucial step. During the holiday season, surrounded by loved ones, it serves as a reminder of our love and support. We want our hard-earned dollars to reach them in case of the unexpected."Another aspect to consider is that life events like births, deaths, and family feuds can change the estate-planning landscape. Taking stock at the end of the year is a wise move.

Prepare for the Unthinkable: Find the Best Life Insurance Policy

Some people often overlook naming beneficiaries. However, it's a critical aspect. As Day further explains, "While it might not be the first thing on people's minds, during the holiday season, it becomes a great opportunity to ensure our loved ones are protected. We want to make sure our financial plans are in order."A good life insurance policy can provide peace of mind and financial security for our families.

Review Estate Plan and Insurance Coverage

More broadly, the end of the year is an ideal time to review your estate plan, powers of attorney, and insurance coverage. Paul Mendelsohn, a certified public accountant in Livingston, New Jersey, emphasizes, "Evaluating these aspects ensures that our financial plans are comprehensive and aligned with our current situations. Do we have the right insurance coverage? If not, it's worth considering."Long-term care insurance, often overlooked, can help cover the costs of assisted living and nursing homes. It's important to note that if one spouse has an insurance policy through work, it doesn't cover the other spouse. Scheduling a meeting with an estate planning attorney to create or update legal documents is a proactive step.

Make Charitable Donations and Gifts

Charitable giving is a significant part of the holidays. The IRS allows deductions for cash donations to qualified charities, potentially up to 60% of your income. NerdWallet advises that donations are tax-deductible only if they go to recognized charities, and documentation is required for larger donations.Seth Benjamin Mullikin, a certified financial planner in Charlotte, North Carolina, notes, "Making charitable gifts before the end of the year allows us to take advantage of the tax benefits. It's a great way to give back and support causes we care about."During the holiday season, it's also an excellent time to make financial gifts to loved ones. Individuals can gift up to $18,000 per recipient without filing a gift tax return. However, if you give more than the annual limit, it must be reported to the IRS.

Maximize Pretax Retirement Savings

December is a perfect time to ensure you've maxed out your retirement planning contributions. Tax-advantaged retirement accounts allow investors to save a portion of their income before taxes.For individual retirement accounts (IRAs), the annual contribution limit is $7,000, or $8,000 for those 50 and older. For employer-sponsored 401(k) plans, the maximum employee contribution is higher: $23,000, or $30,500 for people 50 and over.Robert Brokamp, a certified financial planner and senior adviser at The Motley Fool, emphasizes, "Taking steps to max out the 401(k) is particularly important. Since contributions generally go through the payroll system, adjustments need to be made before the year-end. It's a great way to secure our financial future."With contribution limits increasing in 2025, now is also the time to update payroll deductions and IRA contributions to reflect the new caps.

Over 73? Take Required Minimum Distribution on Retirement Account

Once you turn 73, a required minimum distribution (RMD) is an amount you must withdraw from an IRA or 401(k). Devin Pope, a certified financial planner in Salt Lake City, advises, "Completing your RMD by December 31 is essential. In exchange for tax perks, the IRS requires savers to start withdrawing from retirement plans. Failing to do so can result in a 25% excise tax on the undistributed funds. Consulting an RMD table or a financial adviser can help determine the amount needed to withdraw."

Harvest Tax Losses

The end of the year is an ideal time for tax-loss harvesting. This strategy turns an investment loser into a tax winner. Mullikin explains, "If you have investments that have declined, selling them and replacing them with similar ones allows you to leverage the losses to offset gains from other investments. It's a smart tax move that can benefit your overall portfolio."And that concludes our list of key financial steps to take before the end of 2024. See how many you can check off between now and New Year's Eve.