THE FINANCIAL COMMUTE
Hosted by Wealth Advisor Chris Galeski, THE FINANCIAL COMMUTE is a weekly podcast that gives the rundown on what's going on in the current market, how it affects you, and what you can do about it – all designed to fit into your commute. Each week Chris welcomes an expert guest, including Morton Wealth advisors, fund managers, and investment analysts, to break down complex financial topics. Our goal for this podcast is to provide you with the tools to help you navigate this challenging environment, leading to a path of more confident investing.
THE FINANCIAL COMMUTE
Time's Running Out: Financial To-Dos Before 2025
On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski and Financial Planning Advisor Amber McBride discuss year-end financial planning items to stay on top of.
Here are some key takeaways from their conversations:
- Ensure you are maximizing contributions to employer-sponsored retirement plans. The limit is $23,000 for people under 50, and $30,500 for those 50 and over with the catch-up contribution.
- Consider tax loss harvesting to offset capital gains by selling investments at a loss. Amber and Chris generally recommend listeners to monitor this strategy throughout the year for better opportunities.
- If you are subject to required minimum distributions (RMDs), it is important to take them before the end of the year. A good strategy for charitable individuals is to use Qualified Charitable Distributions (QCDs) to reduce taxable income while donating directly from your retirement account.
- Review your income and tax bracket to explore Roth IRA conversions, which can provide tax-free income in retirement and potentially benefit your children by leaving them tax-free assets.
- Max out Health Savings Account (HSA) contributions if eligible. HSAs provide a triple tax advantage: tax deductions on contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
- For Flexible Spending Accounts (FSAs), be mindful of any remaining funds since they are “use it or lose it.”
- The end of the year is the perfect time to think about gifting. Consider making contributions to 529 plans for your children or grandchildren, which offer tax-free growth and withdrawals for educational expenses. Additionally, explore options like gifting Roth IRAs for future generations.