Annual financial review checklist: What to review each year

An annual financial review is a yearly look at your budget, savings, investments, insurance, taxes, and estate documents. It can help you confirm you’re making progress toward your financial goals and spot areas that may need attention. Many people review their finances at the start of the year or after a major life event.

Use this checklist to identify your priority areas and take a few practical next steps. Reviewing before December 31? This year-end financial checklist covers the tax-year deadlines.

1. Review last year's spending

Start by reviewing what you spent last year. This shows you what’s available to put toward your goals.

“Financial planning starts with a budget,” says LeAnn Erenberger, Wealth Management Advisor with U.S. Bancorp Advisors. “Knowing what it costs you to live per day, per month and per year can help you clearly see what you have left to put toward your other goals.”

• Track expenses so you know where your money is going.
• Build a realistic budget that covers essential spending, discretionary spending, and savings.
• Create a debt management plan to pay down high-interest debt like credit cards.
• Set long-term goals, such as retirement, and save money each month.

2. Prepare for retirement

Retirement planning comes in phases. The goal is to create a strategy you can maintain over time.

“While maximizing your retirement contributions is the best way to accumulate wealth, you’ll want to make sure you’re at least investing enough in your 401(k) to get a company match,” says Erenberger.

You’ll also want to review whether your 401(k) contributions are pre-tax (traditional) or after-tax (Roth). “Paying a little tax now could make a big difference in retirement,” adds Erenberger.

• Increase retirement contributions when your income increases.
• Revisit your retirement timeline and expectations as your needs change.
• If you’re already retired, review your income sources and withdrawal strategy.

3. Plan major purchases

Everyday spending is one part of your financial picture. You may also be planning for major purchases in the next three to 10 years, such as buying a vacation home, remodeling your current home, or taking a big trip.

• List your major purchase goals.
• Estimate the total cost for each goal.
• Map out how you’ll pay for them, including savings, loans, or lines of credit. 

4. Prepare for the unexpected

Planning ahead can help you handle surprises with less stress.

“You’ll want to make sure you have proper insurance in place for you and your family’s situation,” adds Erenberger.

• Build an emergency fund and contribute to it regularly.
• Consider life insurance and disability insurance to protect you and your family.
• Review your insurance policies annually and update coverage as your life changes.

5. Save for education

If you’re planning for a child’s education, or your own, starting early can give you more flexibility later.

• Decide how much you want to contribute and what may be your child’s responsibility.
• Consider education savings options, such as a 529 plan or custodial account.

6. Create or review your estate plan

Estate planning helps make sure your wishes are clear and your documents are current. Essential documents may include a will, trust, and financial and healthcare powers of attorney. “If you don’t yet have a will, this should be the first thing you do,” says Erenberger. 

• Create or update your will.
• Review beneficiaries on insurance policies and financial accounts and update them as needed.
• Consider whether a trust fits your goals.
• Talk with your family about your plans.

7. Assess your investment risk tolerance

Your risk tolerance can change over time. An annual review can help you confirm your portfolio still matches your goals. 

• Revisit your level of risk tolerance.
• Check that your portfolio is diversified.
• Rebalance your portfolio if market movement has shifted your allocation.

8. Take steps to minimize your taxes

Tax planning can help you keep more of your money working toward your goals. Erenberger suggests reviewing ways to use available tax advantages. “Your goal should be to keep as much of your money as you can,” she says. 

• Check for tax diversification across your accounts.
• Max out retirement contributions when it fits your plan.
• Review withholdings so you’re less likely to face penalties or an unexpected tax bill.

9. Plan your charitable giving

Charitable giving can be a meaningful part of your financial plan. It can also be worth considering tax efficiency when doing so.

• Set a giving plan for you and your family.
• Build giving into your year-round plan.

10. Track your healthcare spending

While healthcare enrollment periods come around each year, it's worth regularly reviewing your benefits and tools such as your health saving account (HSA).

• Use your HSA for qualified medical expenses.
• Track healthcare spending so you can compare plan options during enrollment.
• Estimate healthcare costs in retirement and plan for predicted expenses.

11. Consider any long-term care needs 

Whether you’re caring for an aging parent or thinking ahead for yourself, planning early can help you understand your options.

• Research long-term care providers and typical costs in your area.
• Talk to a financial professional about long-term care insurance.
• Review your current assets to set saving goals.

How to prepare for an annual review with your financial advisor

A little preparation can make your meeting more productive. Gather recent account statements, your budget, your latest tax return, and other key documents. Then bring a few focused questions, such as:

• Am I on track for retirement and my other goals?
• If I’m off track, what changes could help? 

Turn your financial goals into a financial plan

If you want help staying on track, consider working with a financial professional. They can help you build a financial plan that prioritizes your goals and supports your next stage of life.

Whatever you're working toward, learn how our approach to financial planning can help you gain clarity and confidence as you take the next step.

Frequently asked questions

How often should I do a financial review?

Most people benefit from completing a financial review once a year, ideally at the start of the year or after a major life event such as a marriage, job change, or inheritance. Regular reviews help you catch shifts in your budget, goals, or risk tolerance early.

What's the difference between a financial review and a financial plan?

A financial review looks back at your current accounts, spending, and progress toward your goals. A financial plan uses that information to map out the strategies that can help you move forward. Many people use an annual review to confirm their plan still fits their needs.

What questions should I ask during an annual review?

In addition to asking whether you're on track for retirement, consider asking how recent market activity affected your portfolio, whether your asset allocation still matches your risk tolerance, and whether there are tax-efficient moves worth this year.