I've been mulling over different New Year's resolutions lately but have yet to settle on a favorite choice. There are virtually endless possibilities for self-improvement: dieting (been there, done that; I never make it to February), exercise (see previous comments), laundry (my wife would love this one, but alas, no). There's still time, though. No need to make any hasty decisions. Then again, maybe I should add something about procrastination.

Before resolving to do anything in the year ahead, though, it's always a good idea to tie up any loose ends from the year behind. Once all the wrapping paper, boxes, and bows have been cleared away, the end of the year is the perfect time to review your accounts, make any necessary adjustments, and plan for the upcoming year. Here are a few topics you might want to consider to ensure your financial house is in order when the calendar flips to Jan. 1.

Year-end financial checklist
 11th-hour tax planning: Hopefully your year-end brokerage statement contains several pages cataloguing all the profitable stock trades you placed during the course of the year. Now is the time to tally all those pluses and minuses to get a clearer picture of where you might stand on April 15.

No one should sell a stock for tax implications alone, but if there is a losing pick that you were looking to unload anyway, now is the last chance to rack up a capital loss that can be used to offset capital gains elsewhere. (You can always repurchase the stock later; just watch out for the wash-sale rule.) For the Foolanthropic among us, there is also a closing window to make tax-deductible charitable donations. Of course, there are many other i's to dot and t's to cross before declaring that your taxes are officially ready for 2005.

Retirement plan contributions: With the year winding down, set aside a few minutes to take stock of your employer's retirement plan. Remember, all those tax-deductible contributions that have been withheld from your paycheck the last 12 months will reduce your tax exposure, enjoy tax-deferred growth, and (in many cases) earn matching contributions to your account.

It may be too late to make any last-minute contributions to your 401(k) this year (keep in mind, IRA contributions for 2004 are allowed until next April 15), but there is always next year -- and Uncle Sam has generously raised the contribution ceilings. Here's a quick rundown by category:

Traditional or Roth IRA: The maximum contribution is $3,000 this year and will be increasing to $4,000 for 2005. For those over age 50, there is also a catch-up provision that allows an additional $500 deposit. The catch-up limit will remain at $500 next year but will double to $1,000 thereafter.

Defined Contribution Plans (401(k), 403(b), 457 plans, SarSEP): The maximum contribution to these qualified plans is $13,000 this year and will rise to $14,000 in 2005. The catch-up provision, capped at $3,000 this year, will also increase by $1,000 next year.

Simple Plans: Participants of these plans will see the maximum increase from $9,000 this year to $10,000 in 2005. The catch-up limit will rise from $1,500 to $2,000.

While taking the necessary steps to increase your withholding to take advantage of the higher limits, it may also be a good time to review your performance. Have the markets caused your portfolio weightings to be skewed? Maybe it's time to rebalance. Have your funds significantly underperformed their benchmarks? Maybe its time to search for stronger alternatives. Do you think it's time to cut back on your long-term government bond exposure and overweight the Pacific Rim? Maybe it's time to tweak (or even overhaul) your asset allocation.

Inventory your assets: During the hectic hustle and bustle of the year, when baseball practice and class projects are in full swing, it can be easy to overlook your investments. Many of us assume that our accounts are on autopilot, with little more oversight than tearing open our quarterly statements with a passing glance at the bottom line. Worse still, in a declining market some develop a sudden debilitating fear of even opening the envelope.

Some of us are more proactive concerning our accounts than others, but even the least hands-on investor should take a few minutes once per year to carefully review each of his or her statements. These might include brokerage accounts, insurance policies, annuities, bank CDs, savings accounts, trusts, college savings plans (529 plans or Coverdell Education Savings Accounts), etc. During an annual review, take an inventory of all assets. If you feel they've been spread over too many places, consider consolidating several accounts to cut down on maintenance fees, paperwork, etc.

At this time, you may uncover a number of issues that cropped up during the year that need to be addressed. Maybe the star manager of your mutual fund jumped ship and left an inexperienced rookie at the helm. Perhaps the 36-month CD you forgot about has just matured and is set to renew at one of the lowest rates in town. After gaining more than 60% this year, maybe it's time to finally do something with those 100 shares of J.C. Penney (NYSE:JCP) that you inherited from your Uncle Mort.

Attack outstanding debt: Now that you feel comfortable about your assets, it's time to revisit the other side of the ledger. Make a comprehensive list of your liabilities -- everything from mortgage to auto loans to credit cards to that old Best Buy (NYSE:BBY) account. Next, determine the interest rate attached to each loan, and project an approximate figure for total interest expenses over the next 12 months (if that doesn't provide some incentive to reduce debt, I don't know what will). With this list in hand, it's much easier to outline a plan of attack. In general, it is best to begin by paying down loans with the highest rates first. With a solid strategy and a little diligence, even as much as $45,000 can be wiped out in a few short years.

Formulate a household budget: Even if you have little or no consumer debt (congratulations!), it is still important to know where your money is going each month. A budget will help quantify your monthly surplus and also identify problem areas (hint, spending 20% of your monthly income on video games may be a tad excessive) where money can be saved. For those who have never attempted to construct even a rudimentary budget, begin by reading some practical how-to advice by Selena Maranjian. Microsoft Money also has tools to help track bills and expenses.

Armed with a better understanding of your inflows (salary, tax refunds, bonuses, dividends, etc.) and outflows (housing, transportation, insurance, clothing, food, entertainment, etc.), it is a simple matter of pinpointing which areas are out of whack (and hence are potential targets to free up some extra cash). Hey, we love it when the companies we own trim expenses so more money will trickle to the bottom line; should we expect anything less from ourselves?

Happy New Year!
So you say your checkup is complete and you've been given a clean financial bill of health. Your 2004 1040 tax return is all but penciled in, your retirement plan is a well-oiled machine, and you have thoroughly reviewed last year's investment returns and made any necessary adjustments. You have also developed a game plan for eliminating debt and outlined a budget to identify spending patterns and help trim unnecessary purchases.

Congratulations! Even though you still will be writing 2004 on your checks for a few more days, this preparation will help steer you through the next year and into 2006. Now you can relax and enjoy what's left of the holidays. As for a New Year's resolution, I will try to do more laundry.

Fool contributor Nathan Slaughter would like to extend his best wishes for a safe, happy, and prosperous New Year. He owns none of the companies mentioned. The Motley Fool has a disclosure policy.