Tip of the Month: Year-End Planning

Francesca Leverich in Wealth Management 16 October, 2018

Financial planning and check-ups on your goals can and should be done throughout the year. However, as you approach year-end, now is the time to get your financial house in order. Before you head into the New Year and create new financial goals and resolutions, we’d like to provide some tips to consider at year-end that may help springboard you into financial success in 2019!

Things to keep in mind are:

  • Consider tax loss harvesting. Investors can implement this strategy to reduce investment losses and offset taxes on gains and income. This can be achieved by selling a security that has experienced a loss and replacing it with a similar one.
  • Prepare charitable donations. One of the biggest ways to reduce your income and help prepare for next tax season is to give to charities of your choice. Year-end is when you should begin to gather the documents you’ll need come tax season. Also, keep in mind there is still time to make donations. Donations for this tax year must be made by December 31.
  • Pay attention to RMD deadlines. Are you 70 ½? If so, you must take a Required Minimum Distribution (RMD) ahead of the December 31 deadline. The penalty of not taking an RMD by the deadline is far too costly and easily avoided if planned correctly.
  • Review your estate plan. Preparing for the future of your estate should be a focus year-round. However, the end of the year also means it’s the holiday season which is a great time for families to come together and discuss what your wishes are and your legacy goals. We tend to pay a lot of attention to the “now” and our savings plans and goals, but it’s crucial to take into account planning for an emergency or unfortunate life event.
  • Review your financial goals. While we suggest keeping track of your financial goals throughout the year, year-end is a good time to do a deep dive. Are your investments still in line to help you achieve your goals of: buying a house, retirement, starting that new business, etc.?

As you navigate this year-end checklist, don’t hesitate to contact your advisor. We’re here to help you along the way and walk you through any doubt or questions you may have.

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