End-of-the-Year Money Moves
Here are some things you might consider before saying goodbye to 2021.

 Presented by LongView Wealth Management

What has changed for you in 2021? For some, 2021 has been a year of complicated changes. Did you start a new job or leave a job behind? Did you retire? Did you get married or divorced?  If notable changes occurred in your personal or professional life, then you may want to review your finances before this year ends and 2022 begins.

Even if your 2021 has been relatively uneventful, the end of the year is still a good time to get cracking and see where you can manage your overall personal finances.

Keep in mind this article is for informational purposes only and is not a replacement for real-life advice. Please consult your tax, legal, and accounting professionals before modifying your tax strategy.

Check your company-sponsored retirement plan.  If you are working and eligible for a company-sponsored retirement plan, check your contribution levels. Are you contributing?  Are you taking full advantage of your employer’s match? How about increasing your contribution to get your 2021 contribution closer to the maximum allowable limits5?  With two months left in the year, there’s still time to make tweaks that could have a major impact on your retirement account balance over time.

Remember your RMDs.  If you are retired and in your seventies, Required Minimum Distributions (RMDs) from retirement accounts may apply to you. In most circumstances, once you reach age 72, you must begin taking RMDs from most types of these accounts.6 Make sure your RMDs have been completed before year-end to avoid possible penalties.

Making a charitable contribution? How about donating to a qualified charity or non-profit organization before 2021 ends? Your gift may qualify as a tax deduction. For some gifts, you may be required to itemize deductions using Schedule A.4

Review your beneficiaries. Take a look at your estate strategy and beneficiary designations. If you haven’t reviewed them for some time, double-check to see that these assets are structured to go where you want them to go, should you pass away. Lastly, look at your will to see that it remains valid and up-to-date.

Is tax-loss harvesting right for you? That’s the practice of taking capital losses (selling securities worth less than what you first paid for them) to manage capital gains. In the right circumstances, this may be a move you’d like to consider. But, keep in mind that it should be made with the guidance of financial professionals you trust and that understand the specifics of your situation.1

Do you want to itemize deductions? You may just want to take the standard deduction for the 2021 tax year, which has risen to $12,550 for single filers and $25,100 for joint. If you do think it might be better for you to itemize, now would be a good time to get the receipts and assorted paperwork together.2,3

Check on the amount you have withheld. If you discover that you have withheld too little on your W-4 form so far, you may need to adjust your withholding before the year ends.

What can you do before ringing in the New Year? Come New Year’s Eve, you may be eager to say goodbye to the old year and welcome 2022.  But, before you celebrate, consider speaking with your financial advisor or tax professional. Little year-end moves might help you improve your short-term and long-term financial situation.

We can work together to find the right answer for your needs.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations

  1. Investopedia.com, January 8, 2021 
  2. NerdWallet.com, April 12, 2021
  3. Investopedia.com, August 23, 2021 
  4. Investopedia.com, December 28, 2020
  5. Forbes, November 4, 2021
  6. irs.gov, May 3, 2021
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Longview Wealth Management