Year-end financial planning concept

Year-end financial planning concept

If it is not too early to launch a store Christmas decorations, then it is not too early to think about year-end financial planning.

Here are some items you can see in the coming months.

1. Retirement plan contributions

Now is to see if you are out of time on your pace biggest year retirement funds. If not, consider changing how much you contribute, or if you plan to make – whether it’s 401 (K), 403 (b) or SEP IRA. In addition, consideration will receive most or all of any bonus into the plan. Do the same IRA and Roth IRA contributions as well. 2019 IRA contribution limit is $ 6,000, unless you are 50 years old or over, then it’s $ 7,000. You can also consider some of your traditional IRA funds to Roth IRA. ÿ ou’ll you to convert the amount of the tax, but future earnings and qualified withdrawals will be tax-free.

2. Tax planning

There are tons of tax planning strategies you can consider for the end of this year. There taxation won, this is the break-even sales tax liability of your investment. Losses can be deducted from ordinary income up to $ 3000, but they can be used to offset income up to any number. If no earnings, losses can be carried forward to the following year. These losses apply them to ordinary income of $ 3,000 prior to the rally application. If you want to buy back the same investment, you need to wait 30 days to avoid the wash sale rule.

Reallocate your portfolio to ensure that the tax generates INVestments, like taxable bonds, both in your retirement account, and generate less tax investments, such as stocks, not in retirement accounts.

Rebalance your portfolio. The same is some investment completed during the year better than others, so you may want to consider rebalancing to make sure you still have your original asset allocation intended.

3. Review of the insurance policy

Life insurance policy may have purchased a year ago, when your needs are different, so this is a good time to review what you have. The same applies to property and casualty insurance, health and long-term care insurance.

4. RetrospectBeneficiaries

I can not emphasize this point. Review your life insurance beneficiaries, not just the beneficiaries of y our retirement accounts.

5. Charitable donations

Now it is a great time to consider making charitable donations. Of course, tax cuts compared to what you get from helping fund the mission of an organization feel. Also, unless you bind your donation or to inform the Fund by the supply side, you may not get a deduction, consider the standard deduction is $ 24,400 for married couples. If you do not currently support the organization, a mission to find something you are passionate about. For me, this is the kids and health, so I support Big Brothers Big Sisters of Atlantic and Cape May County, Linda Cancer Foundation, the company’s love and AtlantiCare Foundation.

6. Estate Planning

Following the ID charitable donations EA, consider making a gift to the family, to help reduce the size of your property. Per IRS rules, each taxpayer can gift up to $ 15,000 personal recipient in the year. There is no limit of the number of recipients, you can give a gift, but there are $ 11.4 million lifetime exemption.

Pay attention to financial New Year’s resolution column.