Today’s Prep:
What should you do before the end of 2020 when it comes to your finances? We’ll run through a list of items on this show.
Equipping Points:
As the year starts winding down, what kind of things do we need to be thinking about? Amidst the holidays and the end of a tough year, don’t let these financial moves get overlooked.
Are you maxing out your retirement contributions? What about putting money away in a Roth or post-tax account? While you won’t get the tax break this year on money contributed in a Roth, it allows that money to grow tax-free.
Did you take advantage of any of the options in the CARES Act? Are you exploring tax-loss harvesting? Eric explains how tax-loss harvesting works and why you should be aware of it. Sometimes recognizing a tax-deductible loss now will prove to be advantageous. Do you plan to make a major charitable contribution before the end of the year? It may be worth examining your other deductions to see if giving a bit more will help.
Finally, should you be doing a Roth conversion before the end of the year? We don’t know exactly what taxes will look like in the future, but we do know what the taxes are today. A conversion would mean needing to come up with the tax money now, but it might save you a lot in the future when taxes will likely go up.
Listen to the entire episode or click on the timestamps below to skip to a particular year-end to-do.
1:15 – Are you maxing out retirement contributions?
2:36 – Are you using the options available in the CARES Act?
3:50 – What is tax-loss harvesting and why should we explore it?
6:44 – Are you making charitable contributions?
8:28 – Should you do a Roth conversion?
Today’s Takeaway:
“You can’t have too much tax-free money, but paying it along the way can be difficult.“
-Eric Peterson
Related Resources:
What Goes Into a Customized Financial Plan?
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
The Use Of Technology In Financial Planning
As technology keeps advancing, it’s made our lives easier in so many ways. Tasks that used to need outside help can now be done on our own with just a few clicks. This shift has also brought more accessible online financial tools, but how accurate and helpful are they really?
Read More
Retirement Planning Conversations With Dorothy Parker
Dorothy Parker is one of the great writers of the 20th century. Her wit and prose have been appreciated by readers for generations. But are there any lessons we can learn when it comes to finance with some of Parker’s most well-known quotes?
Read More
Mailbag: Moving To A State With Income Tax And More
In this episode, Eric is answering your questions! We’ll cover a range of topics today, including key considerations for income taxes when moving to a new state, how to initiate financial conversations with parents or grandparents, and whether using a life insurance policy to save for a college fund is a wise choice.
Read More
What Is Lazy Money?
What is lazy money and why do you want to not have too much of it in your retirement portfolio? Simply put, lazy money is money that isn’t growing as much as it could be. Having your money grow and work for you is a key part of building a solid portfolio, so Eric breaks down some strategies to help get the most out of your money in this episode.
Read More
Retirement Planning Today Is Harder Than It Used To Be
Retirement planning simply isn’t the same as it used to be. From changes in life expectancy, the lack of pensions, and getting caught in the sandwich generation, there’s a lot to keep in mind when putting together your financial plan. Instead of taking advice from others who may have retired in a different era, it’s important to understand what strategy is right for you.
Read More
Social Security Variables That Impact Your Claiming Strategy
After so many years of paying into Social Security, you might feel ready to reap the benefits. But before you get too eager, it’s best to have a thorough understanding of the different variables and how to best leverage them.
Read More
Retirement Real Estate Decisions: Downsizing, Snowbirding, and More
One of the key discussions you may have in retirement is what to do about the house. Should you downsize your home? Pay it off early? Buy a vacation home and become a snow bird? Eric emphasizes the importance of considering not just the financial implications but also the lifestyle changes each of these decisions entail. Weighing out the pros and cons of each decision can highlight what is right for you (which isn’t always the same as what your neighbor is doing).
Read More
Healthcare in Retirement
One major (yet often overlooked!) expense in retirement is healthcare. Especially if you are retiring early, healthcare can be a huge expense as you bridge the gap between your working years and when eligible for Medicare. Not only will you have an increased monthly cost, but you may need to budget for additional medical costs as time goes on or even long-term care needs.
Read More
Family Matters When It Comes to Finances
Today we talk about what happens in a family, particularly when someone has passed away and the financial impact that can have.
Read More
Water Wheels and Retirement Planning
Have you ever wondered how a water wheel can relate to your retirement planning? It might seem like an odd comparison, but in today’s podcast, Eric breaks down this fascinating analogy and its significance in maintaining a stable financial future.
Read More