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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.