By Brandon Miller–
With Turkey Time right around the corner, there’s no better time to give your finances a little TLC. A quick review now can set you up for a smooth year-end and help you start next year on the right foot in some key areas.
First up, Taxes
Get a head start on tax planning by projecting income and potential deductions. A few steps to consider:
• Project Income for 2024 & 2025: Estimate now to avoid surprises.
• Plan for Net Investment Income: Check your investment earnings for 2024 and how they’ll affect taxes.
• Review Tax Plans: Did you know the Tax Cuts and Jobs Act sunsets in 2025? With the new administration coming on board, these things may shift, but review what aspects may impact your situation.
• Gains and Losses: Check both realized and unrealized gains or losses, and collect cost-basis info on any sold securities.
• Charitable Donations: Track contributions to make the most of charitable deductions.
• Gifting: Consider year-end gifts to family or friends (tax-free up to $18,000 per person in 2024).
Maximize Your Future Financial Comfort
Make sure your retirement plans are on track and fully funded. Here’s what to keep in mind:
• Max Out Contributions: Fund your 401(k) and IRA, including any catch-up contributions.
• Roth IRA Conversions: Look at conversion scenarios if you’re eyeing a Roth IRA.
• RMDs: Take required minimum distributions if you’re 72 or older.
• New Plans for the Self-Employed: If you’re newly self-employed, consider opening a retirement account to start building tax-free savings.
• Social Security Options: Review your Social Security claiming strategy if retirement is on the horizon.
Align Your Strategy With Your Goals
A little portfolio review can go a long way toward securing your financial future. Here’s where to focus:
• Confirm Goals: Make sure your investments are still aligned with your financial goals.
• Asset Allocation: Look for opportunities to rebalance your portfolio if needed.
• Taxes: Check for tax loss harvesting opportunities in your portfolio.
• Review Fundamentals: Revisit the fundamentals of your investments.
• Outstanding Loans & Mortgages: Check interest rates and balances for possible refinancing or payoff strategies.
• Employee Stock Options: Review your stock options to decide whether it’s a good time to exercise.
Insurance: Check Your Coverage, Stay Protected
Life changes and evolving needs make it essential to review your insurance.
• Property and Casualty Policies: Confirm coverage and make sure it’s appropriate.
• Health Insurance: Look for changes in coverage or new options that suit your needs.
• Life or Business Changes: Major changes might mean your insurance needs a tweak—whether it’s life, home, or business insurance.
Major Life Changes: Account for Big Events
Have you experienced a significant life change this year? Make sure your finances reflect it.
• New Job, Marriage, or Move: Update accounts and insurance.
• Refinanced or Sold Major Assets: Adjust financial plans to account for any new cash flow.
• Family Changes: Births, adoptions, or caregiving for an elderly parent can shift financial needs.
• Unexpected Gifts or Inheritances: Incorporate them into your financial plans to make the most of them.
Family: Plan for Loved Ones
End-of-year is a great time to make decisions that impact the people you care about.
• Education Accounts: Contribute to 529s or other educational savings plans.
• Trusts: Review and fund family trusts as needed.
• Charitable Giving: Plan any charitable contributions you’d like to make before the year ends.
A little year-end financial planning now can help you end 2024 with confidence and start 2025 on solid ground. So, grab a warm drink, settle in, and give your finances the refresh they deserve! Here’s to a great year-end and an even better year ahead.
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed during this program is no guarantee of future results. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always, please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional.
Brio Financial Group is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Brio Financial Group and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Brio Financial Group unless a client service agreement is in place.
Brandon Miller, CFP®, is a financial consultant at Brio Financial Group in San Francisco, specializing in helping LGBT individuals and families plan and achieve their financial goals. For more information:
https://www.briofg.com/
Money Matters
Published on November 21, 2024
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