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End of Year Planning Reminder Thumbnail

End of Year Planning Reminder

Greetings!  

The end of the year is fast approaching and it's a great time to remind you of action items that can help improve your personal finances. Some planning strategies to consider:

  • If you're not retired, remember to contribute the maximum amount to your individual or employer-sponsored retirement plan based on specific IRS limits for 2021.
  • If you or your spouse is 72 or older, Required Minimum Distributions (RMD) must be taken before Dec 31. Otherwise, you could incur an additional 50% penalty tax.
  • Make charitable contributions (outright or through a donor-advised fund) that you want to be able to claim as a deduction on this year’s tax return.
  • Consider Qualified Charitable Distributions from your IRA if you're above 70 ½ and want to make charitable contributions, but not from your normal cash flow.
  • 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.
  • Consider converting all or a portion of your Traditional IRA to a Roth IRA if your income is lower in 2021 and expecting income to increase in following years.
  • Review how much money you’ve spent for those with employer-sponsored Flexible Spending Accounts (FSA) so you don't lose any unused funds for next year.  
  • Track your 2021 spending so we can compare against your budget and make any necessary adjustments for next year.
  • Do you expect to earn more next year? Let’s discuss putting some or all of your expected increase into savings or investments.
  • Think about your family's financial goals and concerns so when we next meet we can update with any changes:
    • Can you save more for retirement? Or for college?
    • Do you have an excessive amount of cash sitting idle in the bank?
    • Changes, financially or emotionally, for life, disability and long term care insurance?
    • Do you expect any unusually large expenses next year?
    • Should we re-assess your portfolio's risk level after a robust year in the markets? 

Taking the time to address these items now can help you finish out the year strong as well as make 2022 a successful and brighter year.  

If you have any questions about year-end planning strategies, please call your advisor directly or email us at clientservices@benchmarkfinancial.info.

Please visit our website at www.benchmarkfinancial.info  for more information on our planning services.    

Sincerely,

Benchmark Financial


Any opinions expressed on this email are the opinion or view of Benchmark Financial and/or an advisor of Benchmark Financial and these opinions are subject to change at any time without notice. The content is developed from sources believed to be providing accurate information. Any comments or postings are provided for informational purposes only and does not represent an offer of or a solicitation for advisory services in any state/jurisdiction of the United States or any country where the firm is not registered, notice filed, or exempt. The material is not intended to provide specific advice and/or recommendations for any individual. Readers should conduct their own review and exercise judgment prior to investing and should carefully consider their own investment objectives and not rely on any post, chart, graph or marketing piece to make a decision. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.
Benchmark Financial is not a broker dealer and does not offer tax or legal advice. Please consult your tax or legal advisor for assistance regarding your individual situation.  Benchmark Financial Wealth Advisors is an independent advisory firm providing wealth guidance, investment management, financial planning and qualified retirement plan services. We counsel individuals, families and business owners on an ongoing basis. We serve as an advocate for our clients, providing objective advice and comprehensive guidance across all aspects of our clients’ financial lives.  
Investment Advisory Services offered through Benchmark Financial Wealth Advisors LLC, an SEC Registered Investment Advisor. Registration does not imply a certain level of skill or training. Fixed insurance products offered through Benchmark Financial Insurance Advisors LLC. Benchmark Financial Wealth Advisors LLC and Benchmark Financial Insurance Advisors LLC are separate entities. Additional information about Benchmark Financial and our advisors is also available online at www.adviserinfo.sec.gov.