5 Smart Financial Planning Moves to Consider as Year-end Approaches - December 9, 2020

As 2020 wraps up, today is the ideal time to review year-end financial planning strategies.

This is a cursory review. We are available to assist, or you may consult with your tax advisor on any tax issues.

  1. While various rules and limits may apply, you have until December 31 to harvest any tax losses or offset any capital gains.
  2. If you are eligible, you have until April 15 to contribute to a traditional or Roth IRA for tax year 2020. Income limits may apply, but if you qualify, the annual contribution limit for 2020 is $6,000, or $7,000 if you are age 50 or older.
  3. Coverdell Education Savings Accounts and 529 plans are available to assist with college savings.
  4. The December 31 charitable giving deadline for tax-year 2020 is fast approaching. You may also consider a QCD, or qualified charitable distribution, or a donor-advised fund if you are eligible.
  5. Take stock of life changes that may require adjustments to your investment portfolio or designated beneficiaries. It may also be time to rebalance your portfolio, given the overall appreciation in the stock market this year.

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The concepts provided are simply a high-level review. Some may apply directly to your personal situation; others may not.

Getting your financial house in order places you at the front of the financial planning starting gate when 2021 begins.