4th Quarter Financial Strategies

Strategic Wealth
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There are many things to consider financially before the end of the year. Mike Reeves, financial planning advisor of Strategic Wealth Designers, explains the four main things to remember as the end of the year approaches.

Reeves states, “The number one thing you have to remember, they are called RMD’s or Required Minimum Distributions. If you have a tax deferred retirement account, you have to take money out. If you do not take it out, however, Uncle Sam is going to penalize you at 50%. It is a massive tax penalty.”

Next, Reeves explains tax loss harvesting as a great strategy to use for your investments at the end of the year. He explains, “If you have sold something and locked in a gain, you can sell something that is down, even if you like the investment. Sell it, wait 30 days then buy it back and that will lock in that loss against that gain.”

The end of the year is also a great time to look at your portfolio and rebalance if needed. This year especially, Reeves says, “The market is way up, stock have been incredibly well. Maybe you have too much in stocks and not enough in safe investments. Now is the time to take some of those winnings off the table.”

Lastly, Reeves explains how Roth conversions work and why they are important when it comes to your retirement investments. He states, “You’re taking some short-term pain for some long-term gain. You’re taking money out of that traditional IRA and moving it into a Roth IRA, incurring taxes. In that Roth IRA you will never pay taxes again. If taxes go higher, it’s a fantastic thing to have for your withdrawal strategy in retirement.”

To learn more about all things business or financial planning related in the viewing area visit https://CBS4Indy.com/news/strategic-wealth. If you have a question or would like to schedule a complimentary portfolio review with Mike send an email to info@swdgroup.com.

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