Last week's blog was a great intro to this blog, as it talked about "regret," Even though we hope never to have regret, there will be regrets as long as we are human. The positive spin is we can make changes to nullify or reduce our feelings of guilt. When it comes to money, we want to make the best possible decisions, but will every decision be correct? Year-end and a new year are excellent times to reflect and nullify all those financial regrets.
One of the best ways to evaluate progress toward pursuing your financial goals is with an annual review. Late December and the beginning of the new year are ideal times to conduct this appraisal. It shouldn’t be a time for regrets and second-guessing about what you did or didn’t do. Instead, focus on the investing experience you’ve gained. Here are some suggestions on how to make the most of the rest of this year and position yourself to move closer to your goals in the new year.
- Consider opening or adding to an IRA. Annual contributions limits are scheduled to increase in the coming years, with additional “catch-up” contributions allowed for those 50 and over. Evaluate to see whether a traditional IRA or Roth IRA makes sense for you.
- If you haven’t already done so, you may wish to take some losses in your non-retirement portfolio accounts. The losses can offset profits earned from other investments in your portfolio.
- Consider donating cash and property to charity. Gifts to charity are tax-deductible. The date on the check or receipt is usually considered the date of the donation for tax purposes.
- Rebalance your portfolio. Uneven price movements in your investments can upset the balance over time. Is your actual asset allocation in line with the desired allocation mix, determined by your risk tolerance profile? Maybe an adjustment is necessary.
I can help with the experience and resources to make the most of your portfolio. Call me today at 702.982.2497 to schedule an appointment or phone call. Together, we can evaluate your situation and make sound investment decisions going forward. I welcome the opportunity and look forward to hearing from you.
David S Dixon, CFP®
FYI: Click on the link below, "2022 YEAR-END CHECKLIST," for more helpful information.
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.
Asset allocation, which is driven by complex mathematical models, should not be confused with the much simpler concept of diversification.
Some IRAs have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney.