Year-End Portfolio Check: What We Review (So You Don’t Have To)

Year-End Portfolio Check: What We Review (So You Don’t Have To)

For many investors, year-end can feel busy enough without having to think about portfolio adjustments or tax reminders. That’s why this season is one of the most hands-on periods in my practice; a time for me to connect with clients and help provide clarity and confidence. 

A structured review now can help ensure your investments remain aligned with your goals, your income needs, and the latest opportunities for tax efficiency. So, let’s break down what my process looks like.

1. Checking Performance and Long-Term Goals

The first step is reviewing how your investments performed over the past year in the context of your long-term plans. I look at whether your goals or timelines have shifted, how your portfolio is supporting your income needs, and whether any adjustments could help you stay on track. This is especially important for retirees and business owners, whose needs can change more quickly.

2. Rebalancing and Managing Risk

Markets move throughout the year, which can leave your portfolio tilted toward certain sectors or asset classes. A year-end review helps bring everything back into balance so your mix of investments matches your comfort with risk. I also consider tax implications at this stage. The Canada Revenue Agency (CRA) requires that capital gains be reported in the year they are realized, and losses can sometimes be used to offset gains. When tax-loss selling is appropriate, I ensure trades respect the CRA’s superficial loss rules.

3. Identifying Tax-Smart Opportunities Before December 31

Some year-end dates are worth paying attention to. For example, charitable donations must be made by December 31 to qualify for the current tax year. And, if you plan to make a TFSA withdrawal, doing so before year-end restores that contribution room on January 1.

4. Reviewing Cash Flow and Income Needs

For my retired clients, I confirm that minimum RRIF withdrawals are completed by December 31. For business owners, I review expected income needs so we can plan distributions in a way that supports both cash flow and tax awareness. These conversations help reduce the chances of unnecessary withdrawals or rushed decisions in the new year.

A thoughtful year-end review can make a meaningful difference in how prepared you feel heading into January. My goal is to handle the details so you can focus on the season, knowing your plan is organized and up to date.

 If someone you know could use a clear, calm approach to year-end planning, feel free to share this article or connect us.