We’re in the midst of an election year that, according to polling, very few Americans are excited about. Those seeking relief from political debate will need to wait to the end of 2025 and perhaps beyond thanks to the expected political battle over the expiration of the 2017 Tax Cut and Jobs Act (TCJA)1, which sunsets on December 31, 2025.
In this installment of financial planning basics articles, we discuss an aspect of setting up and managing your 401k account that a lot of people ignore or don’t put a lot of thought into – beneficiary designations.
It can be nerve-racking investing at all-time highs in the stock market. Should it be? The data says no.
I personally don’t believe in New Year resolutions – I think you can start doing something new, different, or better at any time that is right for you! Having said that, the beginning of the year is a great time to get a jump on managing your taxes. Taking advantage of new IRS rules and limit adjustments for 2024 starts now.
When a client is moving for one reason or another, a common question we get is whether they should rent or buy their next place. Earlier in my career, I would have started immediately analyzing the options to get to the financial answer, but now, I usually start talking through the non-financial factors to consider. Will you need to move further from work/family/friends to buy? Will your new neighborhood be equally walkable, and if not, is that important to you? How long do you plan to stay in the area?
A core tenant in financial planning is to focus on the controllable. For most of our clients, how much they contribute to their savings while working, and how much they plan to spend in retirement, have the greatest impact on the success of the plan. Investment returns matter as well, but to a much smaller degree than most people realize, and the returns are unpredictable in nature. This is of course in stark contrast to what is most often written about in financial publications – which is the next “hot” investment idea.
As the leaves begin to change and our thoughts shift towards the year-end holidays, it is also time to start thinking about upcoming changes in 2024 and some strategies to consider before the clock strikes midnight on December 31st.
Retirement plan contributions: 50+ catch-up retirement contributions