5 Money Moves to Consider Before the End of the Year

What has changed for you in 2023? Whether you’ve embraced new professional opportunities, entered retirement, moved, or had changes within your family, it's time to assess your financial standing before the year concludes. Let's explore 5 key financial considerations to ensure you step into 2024 on solid ground.

1. Tax-Loss Harvesting

1. Tax-Loss Harvesting

Do you engage in tax-loss harvesting? That’s the practice of taking capital losses (selling securities worth less than what you first paid for them) to manage capital gains. Consider that up to $3,000 of capital losses in excess of capital gains can be deducted from ordinary income, and any remaining capital losses above that amount can be carried forward to offset capital gains in upcoming years.1 Consult your financial advisor for personalized guidance if considering tax-loss harvesting.

2. Itemizing Deductions<br/>

2. Itemizing Deductions

As the year wraps up, evaluate whether itemizing deductions or opting for the standard deduction is more advantageous. The standard deduction for the 2023 tax year has risen to $13,850 for single filers and $27,700 for joint filers.2 Now is a good time to gather your receipts and financial documents to make an informed decision aligned with your goals.

3. Charitable Gifting<br/>

3. Charitable Gifting

Thinking of making charitable contributions? Consider donating to qualified charities or non-profit organizations before the year ends. Your gift may qualify as a tax deduction. For some gifts, you may be required to itemize deductions.

4. Estate Strategy<br/>

4. Estate Strategy

Take a moment to review your estate strategy. Verify beneficiary designations and ensure your assets are structured to go where you want them to, should you pass away. Additionally, check your will to ensure it remains valid and up-to-date.

5. Tax Withholding<br/>

5. Tax Withholding

Review the amount withheld on your W-4 form. If you find that you've withheld too little, adjusting before year-end can prevent surprises during tax season. The IRS offers a free tax withholding estimator here.


As you approach the end of 2023, these financial considerations may seem like routine tasks, but collectively, they contribute to a more solid financial foundation for the upcoming year. Make these strategic moves to improve both your short-term and long-term financial outlook.

Contact Your Advisor

Sources:
1. Investopedia.com, May 2, 2023
2. IRS.gov, October 18, 2022
3. IRS.gov, August 9, 2023

Disclaimer: This article is for informational purposes only and not a substitute for professional advice. Consult with a financial advisor or tax professional for personalized guidance.

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