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6100 Uptown Blvd NE, Ste 500, Albuquerque, NM 87110

505-289-0616
Kris@KennedyFinancialNetwork.com
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Year-End Financial Planning

Year-End Financial Planning

December 11, 2024

While people often view year-end planning from a tax perspective, there’s a lot more to it than tax considerations. It also offers a great opportunity to assess your overall financial health and identify strategies that can help you enter the new year on a firm financial footing. Be sure to work closely with your tax and financial professionals to implement the strategies that are right for your situation.

Investment strategies

  • Recognize capital gains and losses through tax harvesting
  • Avoid violating wash sale rules. A wash sale occurs when you sell a security at a loss and repurchase the same security—or a substantially identical one—within 30 days.
  • Rebalance your portfolio, if needed, to maintain your target allocation

Retirement planning

  • Fund retirement accounts: 2024 contributions to employer retirement accounts must be made by December 31st (2024 individual retirement account (IRA) contributions can be made up to the April 15, 2025 tax filing deadline)
  • Maximize health savings account (HSA) contributions if you’re enrolled in a high-deductible health plan (HDHP)
  • Take required minimum distributions (RMDs) from qualified retirement accounts if you’re age 72 or over (73 if you reach age 72 after Dec. 31, 2022)
  • Consider if a Roth conversion is right for you

Wealth transfer and legacy planning

  • Fund charitable giving
  • Make annual gifts
  • Consider a qualified charitable distribution (QCD) from an IRA. This can also be used to satisfy all or part of your RMD, if applicable.
  • Fund 529 plans

Tax strategies

  • Review income tax withholding if you’re still working
  • Reduce AMT liability, if applicable
  • Accelerate deductions into 2024, as applicable, if you plan to itemize

Plan ahead for the new year

  • Prepare your 2025 spending plan and budget and ensure adequate emergency savings
  • Review and update your:
    • Goals
    • Beneficiary designations on retirement accounts, 529 plans, life insurance policies, etc.
    • Estate planning documents and strategies
  • Schedule an annual review with your financial professional at least once every 12 months

To learn more about these and other strategies, contact the office now to schedule a time to talk.

This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer.

This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought. For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera firms nor any of its representatives may give legal or tax advice.

Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer's official statement and should be read carefully before investing. Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. The investor should consult their financial or tax advisor before investment in any state's 529 Plan.