Episode 101: End-of-Year Financial Planning

Today’s Prep:

2020 is coming to the end. What financial decisions and tax moves do you need to make before it’s over?

(Click the featured times below to jump forward in the episode)

Equipping Points:

A lot has happened this year, particularly in the past few weeks. As 2021 approaches, how do we need to prepare? What’s significant about changing from one year to the next? What financial moves do you need to make now?

David talks about three things that have a deadline to do by the end of the year. Based on a popular previous blog post, End-of-Year Money Moves, we talk about what you should be doing before December 31.

Often, we talk about tax-loss harvesting, but this year also includes long-term capital gain harvesting. What tax moves do you need to make in your taxable investment account? Did you take losses in your portfolio? Then, consider what the tax rates might be under Biden’s plan were it to pass.

As gift-giving holidays approach, you might be planning to give a loved on a big check. What is the gift tax? What kind of money can you give without having to report it? What forms do you need to file with the IRS?

Have you made a Roth conversion yet this year? Remember that the deadline is the end of the year. What is a Roth conversion? When and why should you do one? David shares a few client examples of what a Roth conversion could look like.

Ready to be done with 2020? Finish off what you need to when it comes to your financial plan for the year and then let’s send 2020 on its way. Here’s to a better and more stable 2021!

[2:17] – 2021 is around the corner.

[4:07] – Tax moves you might want to make.

[7:35] – What would happen if Biden increases the tax rate on long-term capital gains?

[10:51] – What is the gift tax?

[14:33] – Are you considering a Roth conversion?

Today’s Takeaway:

“If you’ve been super successful over your life and you want to give away some money, there’s a number of different ways you can do it without paying any gift tax.”

– David Dickens

Additional Resources:

PODCAST: Would My Taxes Go Up If Biden Becomes President?

PODCAST: What’s the Future of Social Security?

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The host: David Dickens

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