As November comes to an end, we’re reminded of the importance of gratitude. This year, we’ve faced market fluctuations, changing economic policies, and shifting priorities in personal finance. Despite the challenges, there’s much to be thankful for—whether it’s progress toward financial goals, newfound clarity in planning, or simply the lessons learned along the way.
This month, we focus on financial strategies to end the year strong and position ourselves for a prosperous 2025. Let’s explore opportunities for giving (to loved ones and charities), strategies for year-end financial planning, and a few reflections to keep us grounded.
In This Month’s Edition
- Year-End Tax Moves to Consider
- The Joy of Giving: Financial Planning for Charitable Contributions
- The Finish
Year-End Tax Moves to Consider
As 2024 comes to a close, it’s time to review your finances and make smart tax moves that can positively impact your bottom line. Here are some key strategies:
- Maximize Retirement Contributions:
- 401(k) limits for 2024 are $23,000 ($30,500 if over 50). Have you reached the maximum?
- Take Advantage of Tax-Loss Harvesting:
- Offset gains by selling underperforming investments. This can reduce your taxable income while aligning your portfolio with long-term goals.
- Consider Roth Conversions:
- Converting to a Roth IRA while tax rates are lower may be an effective strategy, especially if you expect higher rates in the future.
- Review Required Minimum Distributions (RMDs):
- If you’re over 73, ensure you’ve met your RMD obligations to avoid penalties.
- Consider tax-efficient options for using your RMD.
- Plan Charitable Contributions:
- Donating appreciated assets or using a donor-advised fund can provide tax advantages while supporting causes close to your heart.
The Joy of Giving: Financial Planning for Charitable Contributions
This season is about giving, and for many, philanthropy is as rewarding as financial growth. Here are some considerations for making impactful contributions:
- Donate Appreciated Assets:
Potentially avoid capital gains taxes by donating stocks or other appreciated assets directly to charities. - Qualified Charitable Distributions (QCDs):
If you’re 70½ or older, consider using a QCD to satisfy your RMD and give directly to a qualified charity tax-free. - Establish a Donor-Advised Fund:
These funds allow you to make a charitable contribution, potentially receive an immediate tax deduction, and recommend grants to charities over time.
Giving back could potentially reduce your tax burdens, and also strengthen your connection to the community and align with your values.
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Sounding Board Consultation
As a service to our clients, we offer your friends and family a no-obligation Sounding Board Consultation. This 30-minute session allows them to ask questions and receive feedback about their current financial plan or any other financial topics they’re concerned about.
-Lamont Brown, CFP®
FINISH LINE
Finish Strong
As Thanksgiving approaches, take a moment to reflect on your progress and the journey ahead. Remember, financial planning isn’t just about growing wealth—it’s about creating stability, security, and opportunities for the things that truly matter.
Let’s end 2024 strong by taking advantage of the strategies we’ve discussed and setting clear intentions for 2025. Whether you’re preparing for retirement, building a legacy, or navigating current market trends, know that you’re not alone. I’m here to help every step of the way.
Here’s to a season filled with gratitude, growth, and giving!
Warm regards,
Lamont Brown, CFP®, AIF®, MBA
Owner/Wealth Manager
