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Five Year-End Planning Tips: Is Your Financial Plan on Track?

Year-End PlanningAs the end of the year approaches, it is an ideal time to review your financial strategy, which can impact your finances this year and possibly for years to come. There are a number of opportunities you can explore to help you save your money and pursue your financial goals.

It may be a good time to meet with a Financial Advisor before year-end to discuss how you can:

Make the most of capital gains and losses. If you have capital gains or losses, you should review your portfolio management and rebalancing options to make sure you’re taking advantage of gain and loss tax strategies.

Maximize tax-advantaged accounts. If you have not fully funded your qualified retirement plans or individual retirement accounts, doing so could not only provide tax advantages, but also help position you for long-term financial independence.

Benefit from year-end gifting. You and your spouse can each give up to $14,000 to the same person. Thus, you could gift a child as much as $28,000 a year without incurring a tax liability*. If you’re a grandparent, consider funding your grandchildren’s education by contributing to a 529 or other college savings plan that may improve your tax situation.

Required Minimum Distribution. If you’re turning 70½ years of age or older, you’re required by the Internal Revenue Service (IRS) to take a required minimum distribution (RMD) this year and each year hereafter from your retirement accounts.

Review your all investment and retirement accounts.  Taking a few minutes in the busy holiday season to review all of your accounts with a financial professional and determine if you are still on the right track for pursuing your long term goals could be well worth your while.  Your financial advisor can help make sure your accounts are properly diversified and take into account any life changes that may affect your retirement plans.

If you need help uncovering some end-of-year strategies that could potentially benefit your short- and long-term goals, schedule an appointment with a South State Investment Services Financial Consultant here or call (800) 382-0564 today.

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