10 Financial Steps to Consider PC1315 - Print

INVESTMENT STRATEGY

YEAR-END STEPS

10 Financial Steps to Consider Before Year-End

The end of the year is quickly approaching – which often means colder weather, family gatherings, and a hefty to-do list. Take these 10 steps to enhance your financial position before 2017 comes to a close. 1. REVIEW PROGRESS TOWARD YOUR FINANCIAL GOALS  Meet with your advisor to review changes in the market this year and determine whether these changes may have caused your asset allocation to be out of alignment with your goals. Adjust your portfolio, as necessary, to ensure your investments still support your plan.  Share life changes – such as a marriage, divorce, birth or adoption, job promotion, or retirement – with your advisor to determine how these changes can impact your financial situation. Make adjustments to your plan, as necessary. 2. MAXIMIZE YOUR RETIREMENT PLAN CONTRIBUTIONS  Review your retirement plan contributions and consider maximizing them before year-end.  Take advantage of catch-up contributions in your IRA and employer-sponsored accounts, if you are age 50 or older and your plan allows. 3. TAKE YOUR REQUIRED MINIMUM DISTRIBUTION (RMD)  Take your RMD if you’re 70½ or older and are subject to RMDs. Beginning at this age, the IRS requires you to start taking money out of your Traditional, Rollover, SEP, or Simple IRA(s). Talk to your advisor to determine the proper amount. 4. CONDUCT A YEAR-END TAX REVIEW  Request a year-end tax projection from your tax advisor if you earned a sizeable bonus or had an exceptionally good year in your business.  Consider the potential impact of the Alternative Minimum Tax (AMT) on your 2017 return.  Talk to your advisor about any portfolio losses to see if there is an opportunity to offset gains and potentially reduce your tax liability. Also review your portfolio for potential capital gains distributions. 5. MAKE CHARITABLE CONTRIBUTIONS  Make desired charitable contributions if you plan to itemize deductions on your 2017 tax return. Be sure you have the appropriate receipts or documentation for your tax records.  Review the source of your charitable donations, whether cash, securities, or gifts-in-kind to maximize the tax benefits. 6. CREATE OR REVIEW YOUR ESTATE PLAN  Create an estate plan, if you don’t have one, to ensure your wishes are carried out should something happen to you.

Wealth | Investments | Planning Commerce Trust Company

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