Your December Financial To-Do List

Now is the best time to do a portfolio review - here's how to give it a thorough check-up.

Ruth Saldanha 15 December, 2021 | 4:28AM
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Ruth Saldanha: Welcome to Morningstar. I'm Ruth Saldanha. 2021 is almost over. So, what should you be doing about your finances now? We have some ideas, and this is your December financial to-do list.

As the year winds down, this is the best time to conduct a year-end portfolio review. You've definitely paid some attention to your portfolio through the year, but now is the time to give it a thorough checkup. If you own investments in taxable accounts that have lost value, for example, selling to generate a tax loss is one way to find a silver lining. For those of you who have major life changes or financial goals coming due in '22, it might be time to look at your asset allocation and see if you need to reallocate.

Morningstar's Christine Benz thinks that it's a great time to compare your portfolio's current asset allocation relative to targets and then reposition as required. You might find that with gains certain sectors like U.S. equities, for example, are a little higher than they were at the start of the year.

Finally, this is the holiday season for many, which means that you might be giving out or getting gifts. Remember that in Canada there's no gift tax. So, if you get money this holiday season, it's yours to keep.

Happy Holidays.

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About Author

Ruth Saldanha

Ruth Saldanha  Editorial Manager at Morningstar.ca. Follow her on Twitter @KarishmaRuth.

 
 
 

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