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This is a busy time of year for everyone and the last thing on your mind is probably taking the time to complete a financial check up. However, the end of the year is one of the most important times to review your financial activity for the year and make sure you’re ready to get 2010 off to a good start. Many people make a lot of poor financial decisions during the holidays and they have to spend the next several months digging their way out of the hole that they have created for themselves. Taking a look at where you stand in these four areas could lead to better financial decisions in the days and weeks to come.

Family: Most people spend a lot of time with their family this time of year and it’s a natural time to think about the planning you’ve done to help take care of your family members financially if you’re in a position to do so. The end of the year is a great time to consider a gifting strategy not only for this year but for future years as well. Gifting can provide tax benefits and create a financial boost for someone that really needs it. Think also about estate planning and what will happen to your assets should the unexpected occur. Do you have a will and is it current? Take a few minutes to review beneficiaries on your retirement accounts to make sure your assets will be directed to the right places.

Taxes: December 31^st is an important deadline from a tax standpoint. Look at your withholding for the year compared to your income and try to determine whether or not you might need to set some money aside to pay your taxes by April 15^th. Also, review any loss carry forwards you have from 2008 to determine if you need to look for additional losses in 2009. If your income has been lower than normal this year, you may consider selling appreciated assets since the capital gains tax won’t hurt as much as it would in other years.

Investments: Any gains and losses that you want to take for 2009 need to be arranged for between now and the end of the calendar year. Some tax deadlines, such as IRA contributions, extend to the tax deadline. The end of the year is also a great time to rebalance your portfolio and make sure that your asset allocation is appropriate for your risk tolerance and time horizon. If you work with a financial advisor, meet with that person to make sure your portfolio is properly positioned for 2010.

Charitable Giving: Any charitable giving that you want to be able to deduct from your taxes for 2009 needs to be given before the end of the year. Make sure to keep accurate records of any donations you make so that you can account for them accurately. The end of this year is a particularly good time to give because of how many people are struggling due to losses sustained during the recession.

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