Six aspects of your
financial life to review as the year draws to a close.
Provided by Taylor McClish
The end of the year can help remind us of last-minute things we
need to address and long-term goals we want to accomplish. To that end, here
are six aspects of your financial life to think about as this year leads into
the next.
Keep in mind, this article is for informational purposes only and
is not a replacement for real-life advice. Make certain to conduct a tax or
legal professional before modifying your tax strategy. The ideas presented are
not intended to provide specific advice.
Your investments. Set a goal to review your investments with your financial professional.
You'll want to come away from the meeting with an understanding of your
portfolio position. Review your approach to investing and make sure it suits
your objectives. Look over your portfolio positions and revisit your asset
allocation. Remember, asset allocation and diversification are approaches to
help manage investment risk. They do not guarantee against investment loss.
Your retirement strategy. You may want to consider contributing the maximum to your
retirement accounts. It’s also a good idea to review any retirement accounts
you may have through your work. This is also a great time to decide on making
catch-up contributions.
Your tax situation. It's a good idea to consider checking in with your tax or legal
professional before the year ends, especially if you have questions about a
2019 expense or deduction. Also, it may be a good idea to review any sales of
property as well as both realized and unrealized losses and gains. Look back at
last year’s loss carryforwards. If you’ve sold securities, gather up cost-basis
information. As always, bringing all this information to your financial
professional is a smart move.
Your charitable gifting goals. Plan charitable contributions or contributions to
education accounts and make any desired cash gifts to family members. The
annual federal gift tax exclusion allows you to give away up to $15,000 in
2019, meaning you can gift as much as $15,000 to as many individuals as you
like this year, tax free. Such gifts do not count against the lifetime estate
tax exemption amount, as long as they stay beneath the annual federal gift tax
exclusion threshold.1,2 Besides outright gifts, you can explore creating and
funding trusts on behalf of your family. The end of the year is also a good
time to review any trusts you have in place. Using a trust involves a complex
set of tax rules and regulations. Before moving forward with a trust, consider
working with a professional who is familiar with the rules and regulations.
Your life insurance coverage. The end of the year is an excellent time to double-check
that your policies and beneficiaries are up to date. Don’t forget to
review premium costs and beneficiaries and think about whether your insurance
needs have changed. Several factors could impact the cost and availability of
life insurance, such as age, health, and the type of insurance purchased as
well as the amount purchased. Life insurance policies have expenses, including
mortality and other charges. If a policy is surrendered prematurely, you may
pay surrender charges, which could have income tax implications. You should
consider determining whether you are insurable before implementing a strategy
involving life insurance. Finally, don’t forget that any guarantees associated
with a policy are dependent on the ability of the issuing insurance company to
continue making claim payments.
Life events. Here are some questions to ask yourself when evaluating any large
life changes in the last year: Did you happen to get married or divorced in
2019? Did you move or change jobs? Did you buy a home or business? Was there a new addition to your family this year? Did you receive an
inheritance or a gift? All these circumstances can have a financial impact on
your life as well as the way you invest and plan for retirement and wind down
your career or business.
Taylor McClish may be reached at (503) 239-3060 or Taylor.McClish@cunamutual.com
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.
Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.
Citations.
1 -
turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N#:~:text=The%20annual%20federal%20gift%20tax,may%20be%20increased%20for%20inflation.)
[11/22/18]
2 -
irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax[9/23/19]