Year-End Financial Planning Checklist

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.

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

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?

Making The Right Decisions With Your 401(k)

Which TV Character Describes Your Financial Personality?

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

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