Every December, the same question comes up: “Is there anything I should be doing before the year ends?” The answer is usually yes, and it’s rarely complicated. Here are the three things we look at first.
Check your retirement contributions.
If you haven’t maxed out your 401(k), now is the time to ask whether you can add a little more. Your future self will thank you.
Look at what’s not working in your portfolio.
If an investment is down, we may be able to use that loss to offset gains elsewhere. We always remind our clients to watch the wash-sale rule, which can undo the benefit if you rebuy something similar within 30 days.
Think about who you want to give to.
If there’s a cause close to your heart, gifts made by December 31 may be deductible if you itemize. Giving appreciated stock instead of cash can also save you on capital gains tax.
Your situation is yours alone, so please don’t wait until the last week of December. Reach out to our team or your tax professional, and let’s make sure you head into the new year feeling good about your plan.