The end of the year is fast approaching and many of us are looking forward to 2021 given this year’s circumstances. Before we flip the page to the new year, it is important that you sit down and run through a simple checklist to ensure that you have a head start for next year.

The checklist below is not an exhaustive list but a good start to preparing for the year ahead.

Reviewing your budget

• Were you on track with your savings goals?
• Did the money coming in balance with the money going out?
• Is there any major expenses in the following year you will need to fund? How will major expenditures be funded?

Invest your savings

• Do you have a large sum of funds that are not invested and will not be used in the near future?
• Have you maximized your RRSPs and TFSA contributions?
• If you have children, have you started a RESP account for them?

Review your debt

• With the current low interest rate environment, have you look at your debt to ensure you are financing at the lowest possible rate?
• Have you looked at strategies that could permit you to deduct the interest from your mortgages and line of credits?

Diversify your portfolio

• Do you have an employer plan with an overconcentration in one specific stock?
• Have you rebalanced the portfolio to ensure your holdings are balanced and diversified?

Start preparing your tax returns

• Have you started gathering your tax documents and keeping a checklist of potential tax information you should be receiving from various sources in the first couple of months in 2021?
• Do you have a potentially large tax bill for the 2020 tax year? How will this be funded?
• With many of us working at home, have you determined if certain home office expenses will be tax deductible?

Review your investment portfolio

• Are your investments headed in the right direction and on track with your financial plan?
• Have you updated your financial goals for this year?

As the holiday season ramps up, it might be hard to tackle this list but you should keep this handy as you can always revisit this in the New Year.