Start the Year on the Right Foot: An Investment Planning Check-In for January and February

The beginning of the year offers a natural opportunity to step back, reassess, and make thoughtful adjustments to your investment plan. Even small changes in income, expenses, tax laws, or personal circumstances can compound over time. A focused review in January or February can help ensure the year unfolds with clarity and purpose.

Revisit Your Goals

Start by evaluating your progress toward both short- and long-term goals. Have your priorities shifted? Are there new objectives—such as a home purchase, retirement timeline adjustment, education funding, or business expansion—that should be incorporated into your plan?

Aligning your financial strategy with your current goals helps ensure that your investments, savings strategy, and cash flow planning remain purposeful and relevant.

Review Insurance Coverage

Insurance plays a critical role in protecting the people and assets that matter most. The start of the year is an ideal time to review:

• Life insurance coverage
• Disability protection
• Property and casualty policies
• Umbrella liability coverage

Changes in income, assets, or family structure may warrant adjustments. Adequate coverage can help minimize risk exposure and strengthen overall financial stability.

Evaluate Assets, Debt, and Risk Tolerance

Over time, investment allocations can drift, and debt levels may shift. A structured review should include:

• Current asset allocation and portfolio performance
• Outstanding debts and repayment strategies
• Whether your current risk tolerance still reflects your comfort level and financial objectives

Markets and personal circumstances evolve. A disciplined review helps ensure your strategy continues to align with your time horizon and long-term goals.

Prepare Early for Tax Season

January and February are also ideal for organizing for tax season. Gathering documents early and identifying potential tax planning opportunities can help reduce stress and prevent last-minute surprises.

Proactive tax organization may also uncover opportunities for strategic moves—such as contributions, deductions, or distribution planning—that can positively affect your financial outcome.

Small Changes Add Up

Year-over-year changes may seem incremental. However, over time, these adjustments can significantly impact your overall plan. Timely conversations and thoughtful updates allow your strategy to evolve and remain aligned with your life.

Beginning the year with a comprehensive review helps establish clarity, reduces uncertainty, and positions you to move forward confidently.

Tax Return Preparation: Getting Organized for a Smooth Filing Season

Tax season can feel overwhelming, particularly when balancing professional and personal responsibilities. However, early preparation and proper organization can significantly streamline the process and reduce unnecessary stress.

Gather Essential Documents Early

Collecting the necessary documents ahead of time is the foundation of an efficient filing process. Common items may include:

• Income statements (W-2s, 1099s, K-1s)
• Investment income summaries
• Mortgage interest statements
• Property tax records
• Charitable contribution receipts
• Retirement account distribution forms
• Business income and expense documentation, if applicable

Having these materials organized ensures accuracy and helps avoid filing delays.

Coordinate with Your Advisor and Accountant

Tax preparation is often most effective when your financial advisor and accountant work in coordination. A shared understanding of your financial picture can help:

• Confirm income and distribution accuracy
• Identify potential tax-saving strategies
• Ensure retirement account reporting is handled correctly
• Reduce the likelihood of amended returns

Providing organized documentation to your accountant allows for a smoother, more efficient filing experience.

Use a Checklist to Stay on Track

A structured checklist can serve as a practical guide to help ensure nothing is overlooked. It can also help identify questions or planning considerations that warrant discussion before filing.

Early review may reveal opportunities related to withholding adjustments, retirement contributions, estimated payments, or other strategic planning decisions.

Reduce Stress Through Preparation

Tax filing does not have to be reactive. When documents are gathered early and reviewed thoughtfully, the process becomes significantly more manageable.

Taking time at the start of the year to organize your materials and coordinate with your advisory team can help ensure a smooth, accurate, and efficient tax season—while keeping your broader investment plan aligned and on track.

Reviewing Your Required Minimum Distributions (RMDs): Planning Early Creates Options

Required Minimum Distributions (RMDs) are an important component of retirement income planning. Addressing them early in the year provides greater flexibility and more planning opportunities than waiting until year-end.

Determine How Much You Actually Need

One of the first questions to consider is whether your RMD exceeds your living expense needs. If it does, you may want to evaluate how those funds fit into your broader financial strategy.

Understanding the purpose of each dollar—whether for spending, reinvestment, gifting, or tax management—helps ensure distributions support your long-term plan.

Review All Retirement Accounts

Many retirees hold multiple retirement accounts, each potentially subject to RMD rules. A thorough review should confirm:

• Which accounts are subject to RMDs
• The required amounts from each account
• Whether distributions can be coordinated efficiently

Early review reduces the risk of errors and helps avoid costly penalties.

Verify Tax Withholding

RMDs are generally taxable income. Confirming that your tax withholding is accurate can help prevent unexpected tax liabilities at filing time.

Adjustments made earlier in the year allow for smoother cash flow management and may reduce the need for estimated tax payments later.

Use Tools and Reports to Guide Strategy

A structured checklist of RMD considerations can help identify opportunities and clarify decision points. Additionally, a personalized RMD report—when available—can provide specific details about your distribution requirements and how they integrate with your overall plan.

Plan Proactively, Not Reactively

RMDs can feel like an administrative requirement, but they also present planning opportunities. When reviewed thoughtfully and early, they can be aligned with your tax strategy, cash flow needs, and legacy objectives.

A proactive review helps ensure your RMD strategy supports—not disrupts—your broader investment plan.

_{Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
Wells Fargo Advisors Financial Network does not provide legal or tax advice.
Insurance products are offered through nonbank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies.}