facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
End of Year Planning Reminder Thumbnail

End of Year Planning Reminder

The end of the year is fast approaching (to everyone's relief) and it's a great time to take steps that can help improve your personal finances. Some items to consider: 

If you're not retired, review your contributions to retirement accounts such as 401(k) and IRAs.

  • Required Minimum Distributions for 2020.
    • Distributions from retirement accounts are not required to be taken in 2020 as per a special exemption put in place by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This exemption applies to all taxpayers who would normally be required to take a distribution this year.
    • Going forward the minimum age for Required Minimum Distributions was raised from 70 ½ to 72 years of age
  • Make charitable contributions that you want to be able to claim as a deduction on this year’s tax returns.
  • Gift children or loved ones up to the maximum annual exclusion amount ($15,000 for individuals; $30,000 for married couples filing jointly) for those looking to remove assets from their estate.  
  • Compare this year's spending against your budget and make any necessary adjustments for next year.
  • Do you expect to earn more next year? Consider putting all or part of your expected increase into saving for the future. 
  • Check your asset allocation, unrealized tax-loss opportunities and make any necessary changes.
  • Define your family's financial goals and concerns for next year: 
  • Do you want to save more for retirement? Or for college? 
  • Is a particular budget category consistently over-budget? 
  • Do you expect any unusually large bills next year such as college tuition or a new roof?
  • Is their a need for life, disability or long-term care insurance to protect you or your family?
  • Should you re-assess your portfolio's risk level after enduring this year's market volatility? 

Taking the time to address these items now can help make 2021 a successful and (hopefully brighter) year!

If you need any assistance or coordinated wealth management and tax advice, please contact us at (561) 416-2992 or email clientservices@benchmarkfinancial.info to help you analyze your situation. Please visit our website at www.benchmarkfinancial.info  for more information on our planning services.