Year End Strategies 2021

Read the blog written by one of our Lead Advisors, Jerry Yox, CFP® on Year End Strategies for 2021.  Give us a call if you feel you need to schedule a time to explore how these strategies may be applied to your unique situation.  As potential tax law changes and other challenges (or opportunities) evolve a year-end review is more important than ever.

Year End Strategies 2021 by Jerry Yox, CFP®

  • Emergency Fund create a fund for emergency needs and put excess savings to work for you in an investment account. With bank interest rates at all – time lows, you are not earning any interest in bank checking, savings or money market accounts.

 

  • Refinancing because of historically low interest rates, look to see what rate you are paying on your debt and look to consolidate and/or refinance at a lower rate.

 

  • Make a Roth IRA or Traditional IRA contribution to give your retirement savings a boost!

 

  • Be tax-efficient with your financial decisions by looking to:
    • Roth Conversion– Potentially pay lower taxes now to save on taxes later and grow your money tax free for you and your heirs.
    • Tax Loss Harvesting– If you have any losses in your portfolio, you can sell them at a loss and potentially save on your tax bill.
    • Charitable Giving
      • Open and fund a Donor Advised Fund
      • Gift out of your IRA by Qualified Charitable Distributions (QCD) (you must be 70 ½ for this)
      • Gift highly appreciated securities to your favorite charity

 

  • Review your employer benefits to increase your benefits or lower your cost. Look into a high deductible health plan to lower your premiums and invest in a Health Savings Account (HSA)

 

  • Fund 529 plans and save tax free for college and potentially get a tax break on your state taxes.

 

  • Make sure you fulfill your Required Minimum Distribution (RMD) by year end to avoid any penalties.

 

  • Dust off and review your Estate Planning documents to avoid headaches for your heirs and minimize estate taxes.

What You
Should Expect

Together, we will simplify the complexities in your financial picture and collaborate to create
your unique blueprint for success..