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 firstname.lastname@example.org to help you analyze your situation. Please visit our website at www.benchmarkfinancial.info for more information on our planning services.