Smart Year End Financial Moves

1. Tax loss harvesting- if you have a taxable (non-retirement) brokerage account, selling some of your losing investments- while also selling some winning investments helps you avoid paying taxes and can help you raise cash for the new year.

2. Car Insurance review- Since many of us are working from home, and are not commuting to work- you can update your miles and usage of your personal cars and get a little money back. In addition, if you are sitting on a large emergency fund and have enough for a $1000-$2000 deductible, it could make sense to increase your deductible, thus lowering your annual premium.

3. Charitable donations- Tax credits! Tax credits are better than tax deductions. The state of Arizona has certain programs that allow for you to contribute and lower your taxes dollar for dollar. Here’s a list of qualifying programs, and charities. I personally donate to the Public school options. https://azdor.gov/tax-credits

4. Rebalance Portfolios- It’s been a volatile year in the US Markets, but not so much globally. Many other countries outside of the US are growing at a faster rate, and do not have the surge in Covid cases. Depending on how you’ve invested your long term retirement savings, it could make sense to perform a deep dive on what you own inside your various mutual funds/stocks/etfs.

5. Review your Past 12 months spending- like any healthy business, positive cash flow is the most important sign of sustainable growth and building wealth.

Let's take some time to speak this month before year end to address some of the above topics, and set the tone for a prosperous 2021.

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