Hi there and thank you for stopping by today. We are going to talk about year end financial planning.
My name is Tina Anders. I am the Fee Only Certified Financial Planner for my wealth management firm in Petaluma, California, Anders wealth management, serving primarily Sonoma and Marin counties. Thank you again for stopping by.
So, let’s talk about year end financial planning. One thing you can do check your flexible spending account balance. If your employer plan does not allow you to roll the money over to the next year, make sure you spend the balance on qualified expenses, so you don’t lose out on that money.
Another thing you can look at, make a qualified charitable distribution from your IRA. See my video on that particular topic. If you make a QCD, qualified charitable distribution, from your IRA you may reduce the amount of tax that you owe on your IRA distribution.
Third thing prepay your charitable gifts. Thinking ahead about next year’s charitable gifts may allow for a larger tax deduction this year if you donate this year. So, prepay if you can, and you want to.
Number four review your employer sponsored retirement plan and IRA contributions. Maximizing the amount you contribute takes advantage of available tax deductions and employer matching contributions.
Five, consider a Roth conversion. Check out my video on this topic. If you’re unable to contribute to a Roth IRA directly because you don’t qualify, you might benefit from contributing to a traditional IRA and then converting the funds to a Roth IRA.
Number six harvest your tax losses. See my video on tax loss harvesting. If you have losing stock positions, and that’s quite possible this year 2020. Consider selling them to offset some of your gains and reduce your taxable income.
Number seven, plan for life events. A job change, a new home, a car purchase, surgery or any other life event requires financial planning ahead, if possible. So, think about that.
Number eight review your estate plan. Ensure your overall estate plan including your will, your trust, your powers of attorney, advanced directives are all current and reflect your current wishes.
Number nine review your insurance policies. Review your home insurance policy, your auto, your umbrella, your flood, your earthquake, your long term care, your life and other insurance policies to determine if you have enough coverage, and if you have the correct terms reflecting your desires.
Number ten review your beneficiaries. Double check that changes or updates are not needed on your accounts and I will highlight especially for people who are divorced. Sometimes, people mistakenly leave ex, former spouses, on their beneficiary list. So, consider that.
Number eleven, and most importantly, as the year comes to a close checking with your financial professional to ensure that everything’s in order with your overall financial situation. Again, a fee only certified financial planner is an excellent bet.
Thank you for listening. If you have comments or questions or topics you’d like to see me cover in a future video please comment below. I will be happy to respond. Tina Anders, Anders wealth management in your corner. Thank you very much for stopping in today.