With only three weeks left in 2024, now is the perfect time to review your financial plan, tax strategy, and investment portfolio.
Due to busy schedules, many people often neglect these tasks. If you’re one of them, it’s important to dedicate some time at the end of the year to focus on these areas.
Moneycontrol highlights key tasks to complete before December 31st for better financial management.
1. Rebalancing Your Portfolio
The stock market began to decline in early October this year, and while the fall has slowed in recent sessions, the value of your portfolio may have dropped due to the downturn in October and November.
This could have changed the balance between your equity and debt investments. Now is the perfect time to review your portfolio.
If your equity share has decreased, consider using the market dip as an opportunity to invest in stocks and restore your portfolio’s balance.
2. Tax Planning
If you’re following the old income tax regime, it’s important to check if you’ve made the necessary investments to claim tax deductions.
If not, you have until March to do so. To claim deductions under Sections 80C and 80D, investments must be made before March 31.
Checking now will help you determine how much more you need to invest for tax savings.
Also, if your health insurance renewal is due in January or February, start planning for the premium payment now to avoid missing the renewal.
3. Investment plan for 2025
Many people choose to increase their investments each year, which is crucial for building a large fund over time.
If you’re planning to increase your investments starting in January, it’s a good idea to prepare now.
Review your financial situation to determine how much extra you can invest from January.
If you wish, you can start increasing your investment in mutual fund schemes through SIPs from the new year.
4. Belated Return Filing
If you missed filing your income tax return by July 31, you can still file a belated return by December 31.
The income tax return for FY24 can be submitted by this date with a penalty.
However, when filing a belated return, you will also need to pay interest on the tax amount. It’s a good idea to consult your tax expert for guidance on this.
5. Insurance Planning
If you haven’t taken term insurance or have a policy with low coverage, now is the time to review it.
Your life insurance should provide enough coverage for your needs, and your health insurance should also be adequate.
By reviewing these policies at the end of the year, you can plan to increase the coverage in the new year.
