2018: The Year in Review

by | Jan 10, 2019 | Learning

Every January, it’s customary to look back at the year that was. What were the highlights? What were the “lowlights”? What were the events we’ll always remember? Most importantly, what did we learn?
Before we get into that, though, let’s take a brief jaunt back to the 1800s.
The famous 19th century composer, Robert Schumann, used to moonlight as a music critic when he wasn’t writing his own work. What’s notable about his reviews is that instead of writing from his perspective, he often wrote from the perspective of two imaginary characters, Florestan and Eusebius. Florestan represented Schumann’s passionate, witty side; Eusebius, his thoughtful and introspective side. These two characters would debate a piece of music, each bringing a different perspective to the table because their personalities were so different. Was a composition ardent and exciting – or merely flashy and melodramatic? Sincere and thought-provoking, or dull and trite? Both characters had their own opinions, proving that two people can experience the same thing very differently depending on their personality – or in the case of Schumann, that one person can.

Why am I telling you all this? Because when you look back on the year that was, it’s possible to draw very different conclusions. If you were to Google “2018 year in review in the markets”, you’d find wildly varying opinions from analysts, pundits, bankers, economists, and others. They’re all reviewing the same year – but their interpretations tend to be very different.
So, with that in mind, let’s review the year the way Schumann would. I present to you two characters: Volatilis and Tranquillitas, the Latin words for volatile and calm.

The Markets
Volatilis: “Look, it was a volatile year. The Dow, S&P 500, and Nasdaq all ended the year lower than they started – the first time that’s happened since 2008.1 The S&P and Nasdaq are in or near bear market territory, and the Dow had its worst December since the Great Depression.”2
Tranquillitas: “Oh, come now, the year wasn’t so bad as all that. In fact, the markets spent most of 2018 climbing rather than falling. The Dow soared to never-before-seen heights, and at one point, the Nasdaq was up 17.5% for the year!1 A few down months can’t erase all the good that came before.”
Volatilis: “Quite the contrary. When it comes to the markets, losses can quite literally wipe out gains! In fact, since October, the markets have lost all they gained and more. And even earlier in the year, we still saw dramatic peaks and valleys. The markets shot out of the gate in January after the new tax law went into effect, but then quickly plunged in February. The same pattern occurred in March and April. We’ve already covered what happened in summer and autumn – a tremendous rise, followed by a tremendous fall. My dear Tranquillitas, don’t you know that’s what volatility means?”

The Economy
Tranquillitas: “But the markets are not the same as the economy, and the economy soared in 2018. Observe these numbers:

“Those numbers paint a picture of a strong economy – and it’s a beautiful picture, indeed!”
Volatilis: “A lovely chart, but it doesn’t tell the whole story – which is that the economy is likely slowing down. The economic expansion has been driven for years by historically low interest rates – rates the Federal Reserve continues to raise. This, in turn, has affected the housing market and the stock market. Oil prices have plummeted, too, which is good for consumers at the gas pump, but bad for the energy industry. Meanwhile, many of the world’s largest economies are also slowing down, especially in China and Europe. In this ever-more connected global economy we all participate in, that spells trouble. “I don’t need to tell you that if these trends continue, 2019 could be more volatile still.”

The Future
Tranquillitas: “Slowing is not the same as stopping. Interest rates are rising but are still relatively low. Corporate profits remain steady, consumer spending is thriving, as is the labor market. These are all indicators of a healthy economy in 2019, even if it’s not quite producing at the same pace it was before.”
Volatilis: “I see your indicators and raise a few of my own. There’s a ceasefire in the trade war with China, but it could pick up again at any time. The federal government is experiencing another shutdown. Furthermore, a large portion of the economy’s growth over the last decade has been prompted by fiscal stimulus from the government – stimulus that will be harder and harder to provide as the nation’s deficit climbs and climbs.6 Take away that prop, and what happens to growth? “The fact is, investors often tend to be both irrational and impatient – a volatile combination. While the economy may be technically strong, trends are what anxious investors pay attention to. And if the economy looks like it’s trending down, it’s quite possible the markets will follow.”
Tranquillitas: “Yes, Volatilis, but have you considered –”

***

Okay, you get it. In many of Schumann’s reviews, it was at this point that a third character would appear: Master Raro, a teacher who through pure logic and reason would serve as a final arbiter over Florestan’s and Eusebius’ debates. I’ll try to do the same – though I certainly don’t claim to be more capable of “pure logic” than other people!

If you look at all the points and counterpoints made above, though, the logical conclusion is that 2018 was neither a “good” year or a “bad” year. It was…a year! The markets were volatile, but the economy was strong. Similarly, there are indicators of economic strength for 2019, as well as signs that market volatility may continue. Both our fictional characters, Volatilis and Tranquillitus, made good points based on actual facts. But their interpretations of those facts were very different – and that says more about them than anything else. Here’s why that’s important. When we form an opinion about something, it’s often colored by which facts we value more than others. For example, think about when someone asks, “How was your day?” Most days are usually a mixture of good and bad things, aren’t they?

This is a trivial example, but the point is, whether you saw your day as good or bad would depend largely on which events mattered more to you. If you’re someone who thrives off praise and accomplishment, it was probably a great day! If you’re someone who is extremely schedule-oriented, the fact you got stuck in traffic and worked extra late would probably make it a bad day – or at least, not one you’d remember with any fondness. Either way, the facts didn’t change – only your interpretation of them.

Similarly, what we expect of 2019 largely depends on which facts we value more than others. As investors, it’s critical that we remind ourselves about this tendency. Whenever we select an investment, formulate a plan, or make a decision, it’s useful to ask ourselves, “Which facts are causing me to think this way? Which facts am I overemphasizing more than others?” By doing this, we can avoid both undue optimism and overt pessimism – becoming more balanced, less emotional investors in the process!

Whatever 2019 has in store, rest assured there will be both obstacles to avoid and opportunities to seize. But whatever happens, we here at Research Financial Strategies will continue analyzing all the facts and data to help you make smart, unbiased, unemotional financial decisions – music to any investor’s ears. As always, please let me know if there is anything I can do for you in 2019.
Happy New Year!

1 “Investors Find Few Places to Hide,” The Wall Street Journal, December 18, 2018. https://www.wsj.com/articles/market-slidefoils-investors-11545154550?mod=ig_2018yearinreview
2 “Dow closes lower, ending a volatile week on Wall Street,” CNBC, December 27, 2018. https://www.cnbc.com/2018/12/28/usstocks-and-futures-dow-sp-and-nasdaq-on-roller-coaster-week.html
3 “Let the Good Times…Stay a Little Longer?” The Wall Street Journal, December 16, 2018. https://www.wsj.com/articles/letthe-good-times-stay-a-little-longer-11544993632?mod=ig_2018yearinreview
4 “U.S. workers see fastest wage growth in a decade,” The Washington Post, October 31, 2018. https://www.washingtonpost.com/business/economy/us-workers-see-fastest-wage-increase-in-a-decade/2018/10/31/3c2e7894- dc85-11e8-85df-7a6b4d25cfbb_story.html
5 “U.S. Economy at a Glance,” Bureau of Economic Analysis, September 19, 2018. https://www.bea.gov/news/glance
6 “U.S. deficits and the debt in 5 charts,” Politifact, November 2, 2018. https://www.politifact.com/truth-ometer/article/2018/nov/02/five-charts-about-debt/

2019 Tax & Financial Planning Guide

by | Dec 14, 2018 | Learning

Keep up to date on what’s new for 2019. Check out our handy-dandy tax and financial guide! There were many tax changes made in the Tax Cuts and Jobs Act of 2017.  The House Committees and IRS have been navigating these changes for most of 2018.  Everyone will be impacted and everyone has questions about how these changes affect them.
Click here>>

Credit Freeze – You Should Think About It!

by | Dec 12, 2018 | Learning

It’s been over a year since Equifax, one of the three largest credit reporting agencies in the U.S., revealed they’d been hacked. Because the hackers were able to access everything from Social Security numbers to payment histories to driver’s license numbers, the cyberattack put over 145 million Americans at risk of identity theft.1
What did you do to protect your data?

If you’re like most Americans, the answer is probably, “not much.” According to a survey by AARP, only 14% of adults chose to freeze their credit after the hack – even though freezing your credit is one of the best ways to prevent identity theft.2

One possible reason for this is that credit freezes have traditionally cost money. But now you can freeze your credit for free!
Thanks to the “Economic Growth, Regulatory Relief, and Consumer Protection Act,” a new law enacted in May, credit reporting bureaus like Equifax, TransUnion, and Experian must offer free credit freezes.3

SEC. 301. PROTECTING CONSUMERS’ CREDIT.
“(A) IN GENERAL.— Upon receiving a direct request from a consumer that a consumer reporting agency place a security freeze, and upon receiving proper identification from the consumer, the consumer reporting agency shall, free of charge, place the security freeze not later than…1 business day after receiving a request by telephone or electronic means…[or] 3 business days after a request that is by mail.”3
– Economic Growth, Regulatory Relief, and Consumer Protection Act

What is a credit freeze?
To calculate your credit, agencies like Equifax store important data like loan and payment history, birth dates, Social Security numbers, and more. Whenever you apply for a loan or approval on a credit card, banks and other lenders will request that information from a credit reporting agency.
When you apply for a credit freeze, the agency will essentially lock, or freeze, your file so that it can’t be accessed. That way, even if a lender requests your information, the agency will not release it until you “thaw” the freeze first. It’s an excellent way to keep your personal information from falling into the wrong hands. That’s because it “makes it harder for criminals to use stolen information to open fraudulent accounts, or borrow money, in your name.”4

In many cases, you can safely keep your credit frozen year-round unless you need to apply for a loan. Unfortunately, many people don’t take advantage of this. Some probably didn’t want to pay the money, while others find the process to arduous. And some, likely, don’t think identity theft will ever happen to them. That’s despite the fact that, in 2014 alone, 17.6 million Americans experienced identity theft!5

In our opinion, freezing your credit is definitely an option to consider.
A few things to know:
• To get the most protection, you should freeze your credit at all three of the major credit reporting agencies. Visit these websites to learn how:
TransUnion: transunion.com/credit-freeze
Experian: experian.com/freeze/center.html
Equifax: equifax.com/personal/credit-report-services
• The new law also enables parents to freeze their children’s credit for free if they are under age 16. While a child’s identity is usually not as vulnerable as an adult’s, it still should be protected, and it’s a terrific way to teach children about the dangers of identity theft!
• While a credit freeze is a valuable weapon in the fight against identity theft, it won’t protect you from everything. That’s why you should check your credit report regularly. (You can still request a credit report even if your credit is frozen.)
• Freezing your credit will not affect your credit score.
To learn more, visit the Federal Trade Commission’s website at https://www.consumer.ftc.gov/articles/0497-credit-freeze-faqs.

Identity theft is one of the biggest threats to reaching your financial goals. Take steps to protect your identity as soon as possible. Please let me know if you have any questions – and be sure to visit the links listed above to learn more!

1 Stacy Cowley, “2.5 Million More People Potentially Exposed in Equifax Breach”, The New York Times, October 2, 2017. https://www.nytimes.com/2017/10/02/business/equifax-breach.html?module=inline
2 “Up for Grabs: Taking Charge of Your Digital Identity,” AARP National Survey, August 2018. https://www.aarp.org/content/dam/aarp/research/surveys_statistics/econ/2018/taking-charge-of-your-digital-identitynational.doi.10.26419-2Fres.00228.000.pdf
3 “Text of the Economic Growth, Regulatory Relief, and Consumer Protection Act,” https://www.congress.gov/bill/115thcongress/senate-bill/2155/text
4 Ann Carrns, “Freezing Credit Will Now Be Free,” The New York Times, September 14, 2018. https://www.nytimes.com/2018/09/14/your-money/credit-freeze-free.html
5 “17.6 million U.S. residents experienced identity theft in 2014,” Bureau of Justice Statistics, https://www.bjs.gov/content/pub/press/vit14pr.cfm

Year-End Tax Tips That Will Trim Your Tax Bill

by | Dec 12, 2018 | Learning

  • December 31 is an essential deadline for taxpayers who want to lower their tax bill and build up their savings.
  • There is no better time than now to start to make gifts to loved ones, maximize your 401K contributions, save for college or donate your required minimum distribution

The new tax law has put a whole new spin on year-end tax planning, though it hasn’t eliminated the need to do it altogether. t has been a busy year for taxpayers and accountants, as the end of 2018 signals the first year under the Tax Cuts and Jobs Act.

In all, the tax overhaul roughly doubled the standard deduction to $12,000 for single filers ($24,000 for married-filing-jointly), eliminated personal exemptions and limited itemized deductions.

Despite the changes to the tax law, there are still opportunities to shore up your 2018 finances. Here’s what to consider.

1) Maximize retirement savings
Reduce your taxable income dollar-for-dollar by contributing as much as you can to your 401K or employer’s retirement plan by Dec. 31.

If you are 18 or older, you can save up to $18,500 to your 401(k), and if you are over 50 you can kick in an extra $6,000. With IRAs you can contribute $5,500, and if you are over 50, an additional $1,000. (You have until the April deadline to make those IRA contributions.)

Additionally, if you are self-employed and contribute to SEP IRAs, you can deduct up to 25 percent of compensation or $55,000 for 2018.

Make sure you’ve taken advantage of your employer’s match to your 401K plan. Better yet, make sure you’ve maxed out how much you can contribute. Leaving this benefit underutilized is the same as leaving money on the table.

(If you contribute to a Roth 401K or Roth IRA, you won’t get a tax break, but your money can grow tax-free and generally be withdrawn tax-free in retirement.)

2) Make an extra mortgage payment
Although the number of homeowners who can benefit from the mortgage tax break fell significantly under the new tax law, about 13.8 million taxpayers will still be able to claim the mortgage-interest deduction in 2018.

If you own a home and get a mortgage interest deduction, make an extra mortgage payment on Dec. 31 to get that additional deduction on this year’s taxes.

For new homeowners (or those who bought a home after Dec. 15, 2017) who will still be able to take advantage of the tax break, the interest they can write off is limited to $750,000 in loans, down from the previous $1 million.

3) Unload losers
After this week’s market downturn, chances are you have some investments that lost value this year.

You can use those losses to zero out capital gains, and then deduct up to $3,000 a year against ordinary income. Losses in excess of that can be carried forward to future tax years until the balance is used up.

For example, if you have $10,000 of losses and $5,000 of gains, you have an overall loss of $5,000 — and up to $3,000 of that loss can be used to offset your ordinary income. The additional $2,000 in losses can be shifted to next year’s return.

For just that reason, tax-loss harvesting is a popular tool for maximizing after-tax returns, most commonly in the fourth quarter of the year, when investors aim to lower their tax liability. (But this strategy only works on taxable accounts, not your 401(k) or IRA.)

Be aware that if you sell a security at a loss and buy the same or similar security within 30 days before or after the sale, the IRS won’t allow you to claim the loss on your tax return.  This is known as a wash sale.

4) Deduct health-care expenses
If your health-care costs exceed 7.5 percent of your adjusted gross income in 2018, you may be able to deduct those expenses.

Tally up how much you spent on health insurance, Medicare premiums, long-term health insurance premiums, nursing home costs, orthodontics and other out-of-pocket expenses to see if the total exceeds the medical expense threshold.

You can deduct everything you spend over that amount (but you can’t double dip and count expenses paid for with tax-advantaged flexible spending or health savings account dollars).

You also can’t take this tax break if you opt for the standard deduction – it only applies if you itemize all of your deductions.

5) Bundle charitable donations
If you want to lower your tax bill by making donations to charity, you have until Dec. 31 to do so.

Even though the deduction for donations is unchanged, you still need to itemize to claim it, and that’s a much higher bar this year.

One way to surpass the new, higher standard deduction is to save money over time and donate every two or three years instead of every year — a strategy called “bunching.”

For example, instead of giving $5,000 to charity annually, accelerate the gift by giving $10,000 every two years. This way, you may get your itemized deductions over the limit one year and take the standard deduction the next.

Maximize your contribution — and the amount you can deduct if you’re able to itemize in 2018 — by stuffing multiple years’ worth of donations into one year.  This move is known as “bunching” your charitable contributions.

6) Defer your bonus
If you get a year-end bonus at work, it could bump you up to another tax bracket and increase the taxes you owe.

See if your employer will pay you your bonus in January. You will still receive it close to year-end, but you won’t have to pay taxes on it when you file your tax return.

You don’t want to defer your bonus for too long, but a few weeks might make sense.

7) Donate Your RMD to Charity
If you’re 70½ or older, you have until Dec. 31 to take your Required Minimum Distribution from your IRAs and retirement plans.

Failure to do so could mean you’re on the hook for a 50 percent penalty on the amount you should have taken.

If you’re lucky enough that you won’t need the RMD, consider donating the money directly from your retirement account to your qualifying charity of choice. This is known as a qualified charitable distribution.

You don’t need to itemize deductions on your tax return in order to do this.

The bonus: Your RMDs are normally taxable distributions, but qualified charitable distributions are not, according to the IRS.

8) Give to Heirs
You have until Dec. 31 to make gifts to your loved ones for the tax year. You can give up to $15,000 per recipient to an unlimited number of beneficiaries without paying a gift tax. This is known as the annual gift exclusion.

If you’d like to share even more wealth with your grandkids without being subject to gift taxes, consider paying for their tuition or medical expenses.

All of these payments must be made directly to the provider of these services.

9) Talk to Your Tax Preparer
The single best move anyone can take before the end of the year to cut their tax bill is to consult a licensed tax professional and seek advice for their specific situation. Waiting until January will be too late. Each taxpayer’s situation and each tax year is unique. This year, there are new laws and new forms that will affect everyone. Waiting until the return is calculated is likely to produce a few surprises. The new tax law also changed the way employers withhold taxes, and the IRS is concerned that many taxpayers will be surprised by their refunds or balance due because of the new withholding rules.

The Three Key Challenges of Retirement

by | Dec 12, 2018 | Learning

The Three Key Challenges of Retirement

Planning for your retirement can be challenging. It can be scary, and it can be frustrating. I have seen many clients who felt their plan was a disaster waiting to happen. As an advisor, I am here to say that you can handle it. Planning for retirement doesn’t have to be difficult—in fact, it can be fun! But in order to achieve the retirement of your dreams, you must prepare for three major challenges that every retiree is likely to face.

Challenge #1: Ensuring a Long Retirement Savings Lifespan

One of the greatest fears people have in retirement is that they will outlive their savings. Fortunately, by taking steps now, you can ensure this doesn’t happen to you.

The first step is to budget your expected expenses based on your normal day-to-day costs and any activities you want to pursue during retirement. Things like travel, hobbies, remodeling your home, etc.
Next, take a hard look at your current savings and level of income. How much are you setting aside for retirement? How much more do you need to be saving or investing in order to meet your expected budget? This is where working with a financial advisor can come in handy, because an advisor can help you determine
• how much your savings need to grow to meet your needs;
• how long you can expect your savings to last, based on when you plan on retiring, your general health, and activities;
• how to maximize your income opportunities after retirement; and
• what the ideal rate of withdrawal will be from any retirement accounts you have so you don’t run out of savings.

Once you have a plan for your retirement savings, you can move onto the next challenge:

Challenge #2: Planning for Health Care Expenses

As we age, health care becomes a bigger concern, and a more difficult one to deal with. It can be hard to find a plan that provides the coverage you need at a price you can afford. All the politics and legislation affecting the healthcare industry don’t make it easier, either.
The answer, again, is to plan ahead.

Here are a few things you can do:
1. Learn about your various Medicare options. If you are one of the lucky few who will have employer-provided health care coverage even after retirement, congratulations. But if not, start familiarizing yourself with the intricacies of Medicare now. The Federal government’s health insurance program for seniors is often referred to as a single plan, but in reality, it’s many types of plans rolled into one. From the basic level of coverage (Part A), to “Medicare medical insurance” (Part B) which covers outpatient hospital care, physical therapy, and home health care, to the more elaborate “Medicare Advantage” plans, most retirees are confronted with too many options, some of which are more appropriate than others. Choosing the best type of coverage for you will be crucial when it comes to paying for your medical expenses.
2. Look at Medigap. Medigap supplemental insurance is sold by private insurance companies, and is designed to help pay those costs not covered by Medicare. Medigap isn’t free, and certain criteria must be met before you can purchase it, but it’s definitely a route to consider.
3. Consider long-term care insurance. Important disclaimer: not everyone will need long-term care or assisted living in their lives. That said, many people do, and long-term care (LTC) insurance is one of the best ways to pay for it. It can be beneficial to purchase LTC insurance sooner rather than later, as premiums often grow higher as you grow older. However, LTC is expensive in and of itself, so give the subject a lot of careful consideration before making a decision. As you can see, paying for health care expenses is a huge part of retirement. As you create your retirement plan, make sure you give the subject all the attention it deserves.

Challenge #3: Planning for Unexpected Expenses

While health concerns are a major source of unexpected costs, there are many other types of expenses that could impact your retirement. For instance
• Car repairs. You know it will happen one day: the strange clunk-clunk sound you start hearing from your engine ends up being a problem that will cost hundreds, maybe even thousands, to fix. And if it happens more than once …
• Your bills keep going up. What goes up does not necessarily go down. Anyone who has ever paid for an internet connection or satellite TV knows that prices tend to rise over the years. Your basic utilities are prone to price fluctuation as well. A really cold winter means your gas bill will go up. If you have children in the house who keep leaving the lights on, your electricity bill will go up. You get the picture
• Household repairs. When the toilet clogs or the faucet leaks; when a window breaks or the roof starts to degrade; when wood-boring beetles infest the tree in the backyard; unless you really like to DIY, that means paying for a professional … who usually aren’t cheap.

The point of all this is to show that unexpected expenses can come at any time, in many different forms. What’s more, they can really pile up.
So, what’s the solution? Start a rainy-day fund! When most people save, they tend to just throw everything into one savings account and withdraw money whenever they either need or want to. Instead, I suggest creating a separate type of savings account: one that can only be touched whenever the unexpected happens. Every month, devote a set percentage of your income to the rainy-day fund in addition to your regular savings. Then, when your car inevitably breaks down, you won’t have to worry about it interfering with that vacation you’ve been dreaming about for years, because you’ve already set aside the funds to deal with it.

The key to starting a rainy-day fund is to do it now. If you wait until after retirement, you’ll probably have waited too long. Plus, once you’re retired, you’ll likely have less to set aside for those unexpected expenses.
Which brings us to the single most important thing you can do to meet these three key challenges of retirement. Have you guessed what it is yet?
That’s right: plan ahead.
By being proactive, by starting now, you can mitigate these challenges and prevent them from derailing your dream retirement.

As always, if you’d like any assistance with creating a retirement plan, or if you have questions about how to maximize your savings and cover your expenses, feel free to contact us.

End of Year Financial Tips

by | Nov 30, 2018 | Learning

I guess I do not have to remind you that the end of the year is quickly approaching? Holiday lights are popping up around the neighborhood and retailers are rolling out their seasonal displays. And it is only a matter of time before your social media feeds are flooded with daily reminders as well.

With all this holiday cheer in mind, I have compiled a list of end of the year tips. Whether you’re currently working and saving for retirement, approaching retirement, or embarking on new post-retirement adventures, here are some core tax, planning, and financial housekeeping things to do.

  • Be sure you have taken your RMD for the year.  Remember, RMD stands for Required Minimum Distribution.  This starts when you hit 70 ½ and goes until you pass away (actually, it could go longer with inherited IRAs, but that is for another conversation).  RMDs are not terribly difficult to calculate if you want to do it yourself.  However, be sure to take it, otherwise the penalty is 50%!
  • If you have a CPA prepare your taxes, give them a call to make sure there are not any end-of-the-year tax moves they may recommend.
  • Empty out your Flexible Spending Account (FSA), unless your employer allows some of the unused funds to be rolled over.  Please don’t confuse this with a Health Savings Account (HSA), as the FSA is geared more toward immediate health-related expenses, and includes a use-it or lose-it feature for the calendar year.
  • Consider charitable giving. Keep track of your donations to charities in all forms—and consider strategies that may qualify you for larger tax deductions.
  • Just in case you inherited an IRA, you may have RMDs to deal with here as well.
  • If someone who was RMD eligible passed away during the year and did not take out all their RMDs, you need to complete this by paying them out to the beneficiaries.  Again, 50% penalty if not done.
  • If you haven’t maxed out your 401k/403b/457 this year and can afford to, reach out to your benefits department to see if you can contribute more the last few paychecks of the year so it is maxed out.
  • It is a good idea to check your credit report for errors at least once a year to help catch fraud or reporting mistakes
  • Speaking of maxing out retirement plans, be sure to increase your plan contribution rates for next year when the retirement plan savings rates bump up.
  • Charitable IRA Contributions also need to be made by the end of the year.  This is where you can take your RMD (up to $100,000), and direct it to a charity of your choice.  If fulfills your RMD requirement and is not taxed to you.  Just make sure it goes directly to the charity.  You do NOT want it to come to you first and then you give it to the charity.
  • Be sure to check the beneficiary information on your plans.  If you have not updated the beneficiary information recently, it is a best to ensure it is up to date.  This includes contingent beneficiaries also.
  • While you are on a roll, check your personal information on all of your statements too.  You know, like the home address, phone number and current email addresses.

Take the time to give your finances a year-end checkup. Do you want to feel in control of your money and on top of things?  Doing this before year-end allows you ample time to take the necessary steps to potentially save on 2018 taxes and set up your investments for success in 2019—without putting a damper on your holiday cheer.

There are important financial housekeeping tasks that you can tackle at any time of the year, like repricing your car insurance or checking your credit reports.  But December 31 only comes once a year, and there are many key financial deadlines to meet before then.  So, get started now, and use the year-end to make tax-smart moves that can help set you up for a prosperous new year.

End of Year Financial Tips, Rockville, Financial Advisor, Bethesda, Investment Advisor, Retirement, Gaithersburg, Retirement Advisor, Potomac, Retirement
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