New Year Planning

“Here’s to a bright New Year and a fond farewell to the old; here’s to the things that are yet to come, and the memories we hold.” – Unknown

As we begin this New Year there are some financial topics that are beneficial to address that will have an impact long after January ends.  While not an all-encompassing list (due to a limit on blog space mainly) these are a few of the most impactful ones you should address with your advisor:

Financial Plan Review

This can encompass goals and objectives, cash flow modeling, and retirement needs. Getting it done early in the year gives a nice starting point to achieve and monitor any changes. It will also allow you to review your savings rate and any contributions changes to your retirement plan.

Portfolio Rebalancing

In general, 94% of your investment returns are because of your asset allocation. What has changed given the market highs and how are you managing to your goals? Are you still within your stated allocation? How tax efficient is your portfolio and have you reviewed the underlying expenses?

CARES Act Highlights

No skipping RMD’s this year, IRA and 401k/403b contributions should be reviewed. Roth conversions anyone?  Contribution amounts did not change in 2021 for retirement savings. Some good news is that income limits did increase for eligibility. Also, taxes in 2021 changed with some limits and saw standard deductions increase too. Medical expense deductions have been permanently lowered.

Beneficiary and Will & Trust Review

Cannot stress enough that updating and reviewing beneficiary statements, life insurance, pension beneficiary, POA and Health Care powers so they are aligned with your intended directives. Have your children reached adult age? Marriages and divorces can change inheritance outcomes. Even moving to a new state of residence can have an impact.    

Charitable and Gifting Strategies

After a thorough and thoughtful review of your situation is there some portion that can be used to assist those less fortunate? Or you may want to gift to others for education and other future needs. There are some tax advantaged ways to accomplish this while you give.

Changing Batteries in Smoke Detectors

No further explanation. Safety first.

We will remember 2020 as a particularly unique year for many of reasons; the pandemic, the elections, stock market highs, and learning a new normal in how we socialize, celebrate and mourn. 

Our best wishes to all as we move through 2021 together.

Share Button
Tags:

New Year Planning


“Here’s to a bright New Year and a fond farewell to the old; here’s to the things that are yet to come, and the memories we hold.” – Unknown As we…
Read More.

Year-Round Tax Management Of Your Portfolio


As much as I would love to discuss the recent outperformance of value investing, we’ll have to save that for another day. As year-end nears, let’s take a look at…
Read More.

Mutual Fund Partner DFA Introduces Exchange-Traded Funds and Lower Fees for Claris Clients


Dimensional Fund Advisors (DFA), our long-term Mutual Fund partner, has a few exciting developments that will help us better serve our clients. Although Claris is independent of DFA, DFA is…
Read More.

2020 Brings A Shifting RMD Landscape for Retirees


While almost everyone has been impacted as a result of the pandemic, retirees have faced their own unique set of challenges. Between maintaining their own health and safety, considering how…
Read More.

What Should Not-for-Profits Be Doing About Their Investment Portfolios During COVID-19?


Over the years, myself and many of my evidence-based investing colleagues have noticed interesting reactions from our newer not-for-profit clients during times of market distress. Frequently, we will be asked…
Read More.

How Election Results Impact Market Returns


Every four years the citizens of the United States exercise their constitutional right to vote. It is also around this time of year that opinions, predictions and prognosticators reappear after…
Read More.