As the year winds down, here are some financial planning tips we are doing for clients, but also you can do to help yourself out financially:
1. Review Your Financial Goals
- Assess progress toward short-, medium-, and long-term goals (e.g., buying a home, retirement, education savings).
- Adjust your financial plan to reflect changes in income, expenses, or life circumstances.
2. Tax Planning
- Maximize Contributions: Contribute to tax-advantaged accounts like:
- 401(k)/403(b): Ensure you’ve maximized contributions ($23,000 for 2024, with a $7,500 catch-up for those 50+).
- IRAs: Contribute up to $7,000 ($8,000 if 50+), if eligible.
- Health Savings Account (HSA): Maximize contributions for medical expense tax savings. For 2024, if you have self-only HDHP coverage, you can contribute up to $4,150. If you have family HDHP cover- age, you can contribute up to $8,300
- Tax-Loss Harvesting: Offset capital gains by selling underperforming investments.
- Charitable Donations: Make tax-deductible donations, including donating appreciated securities.
- Required Minimum Distributions (RMDs): Ensure you’ve taken RMDs from retirement accounts if required (usually starting at age 73).
3. Investment Review
- Portfolio Rebalancing: Check your asset allocation and rebalance if your portfolio has drifted from your target allocation.
- Evaluate Performance: Review the performance of individual investments and funds.
- Diversification: Ensure your portfolio is diversified to minimize risks.
4. Estate Planning
- Update your will, trust, or other estate documents as necessary.
- Review and update beneficiaries for insurance policies and retirement accounts.
- Evaluate gifting strategies for estate tax planning.
“This presentation is not an offer or solicitation to buy or sell securities. The information contained in this presentation has been compiled from third party sources and is believed to be reliable, but its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. Fagan portfolio characteristics and holdings are subject to change at any time and are based on a representative portfolio. Holdings and portfolio characteristics of individual client portfolios may differ, sometimes significantly, from those shown. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities listed.
Additional information including management fees and expenses is provided on our Form ADV Part 2. The actual return and value of an account fluctuate and, at any time, the account may be worth more or less than the amount invested. Bond Investments are affected by interest rate changes and the credit-worthiness of the issues held in the portfolio. A rise in interest rates will cause a decrease in the value of fixed income positions. Past performance results are not indicative of future results.”
