As 2023 comes to a close, consider reviewing your current financial situation and our 2023 year-end checklist. Some items to consider include:

1. Review your beneficiary designations.Certain solutions such as life insurance policies and registered plans like RRSPs allow the plan holders to name a beneficiary. There are several key benefits to naming a beneficiary on life insurance policies and registered plans, as long as they are up to date. A regular annual review is always a good idea to help ensure your beneficiary designations reflect your wishes.
2. Make your RRSP and TFSA contributions.Determine the appropriate contributions amounts for your Registered Retirement Savings Plan (RRSP), Tax Free Savings Account (TFSA), or other investment accounts yet this year. While the deadline for 2023 RRSP contributions is February 29, 2024, making your contribution before the deadline helps maximize the period for tax-deferred growth to occur while your money is in the plan.
3. Review your insurance needs and protection.Coverage such as life insurance, disability insurance, and critical illness insurance can help protect you and your family against the unforeseen. The key is to ensure you have the appropriate amount and type of insurance to meet your needs. However, those needs can change often, due to changes in employment, having children, buying a house, death, marriage, or divorce. Insurance and annuities are offered by Edward Jones Insurance Agency (except in Québec). In Québec, insurance and annuities are offered by Edward Jones Insurance Agency (Québec) Inc.
4. Prepare for emergencies.If the last few years have taught us anything, it is to expect the unexpected. Yet, data shows that the majority of Canadians would not be able to manage a $200 unexpected expense, let alone a significant financial emergency. We recommend having three to six months of living expenses readily available in case of emergency.
5. Make your education contributions.If you’re planning to contribute to a Registered Education Savings Plan (RESP), consider making the contribution before December 31st to maximize the Canada Education Savings Grant (CESG) for 2023. The first $2,500 of annual RESP contribution is eligible for a 20% CESG matching contribution, to a maximum of $500 CESG per child, per year.
6. Perform a portfolio check-up.Given increased market volatility and higher interest rates this year, your portfolio may need some adjustments to ensure it is still aligned with your financial goals. Over time, various sectors of the market perform differently, which can skew your investments away from their originally intended allocations. Rebalancing your investments back to the target mix can help ensure your portfolio is properly aligned with your goals, risk tolerance, and long-term investment strategy.
7. Review your will and power of attorney (POA). Your will outlines the distribution of your assets after death, whereas a power of attorney gives another individual legal authority to represent you in personal, financial, or legal matters. Even if you have these documents in place, it’s a good practice to review them periodically and update and/or replace when required.
8. Consider a RRIF.If you turned 71 in 2023, your RRSP will mature on December 31st of this year. In this case, you have several options available: You can convert your RRSP to a Registered Retirement Income Fund (RRIF) before the end of the year, purchase an annuity, withdraw your RRSP as taxable income, or some combination of these options.
9. Talk taxes with your tax professional.While the deadline for filing your taxes is still months away, many tax strategies must be implemented before December 31st to be effective for the 2023 tax year. For example, depending on your tax situation, harvesting losses from your investments may help you save tax in the current year or create losses to carry forward to a future year. If you have eligible medical expenses, consider paying those expenses before December 31st so they can be claimed on your 2023 tax return.
10. Review your goals and priorities. It’s important to review not only your goals and priorities, but also your progress toward reaching them. The first step is to review your current situation and determine where you are on your financial journey.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor, Nicolle Lalonde.