Year-end financial checklist: 9 personal finance tips for 2020

As this year comes to a close, you and your family reflect on where you’ve been and where you’d like to go.

And your financial health is a big part of the picture. As the calendar flips to the new year, here are some things to check off your financial wellness list before year-end.

Review or update your beneficiary designations

Make any needed updates to the beneficiary portion of your bank accounts, retirement accounts, life insurance policies and annuities. Have you gotten married or had a child within the last 12 months? Or perhaps a loved one has exited your life through a divorce or a death. Choosing a beneficiary for your life insurance policy is a decision you should consider carefully. This is important because beneficiaries trump who’s named in a will.1

To help you keep track of your beneficiaries, write down their names along with the date when any updates were made. Also, be sure to name a contingent beneficiary in case your primary beneficiary passes away. Store this document in a binder and review it annually.1

Don’t forget to name a beneficiary on your IRA so that it doesn’t have to pass through your estate. This could result in an unintended beneficiary getting paid or your heirs could miss out on important tax advantages.2


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