{"id":16241,"date":"2023-11-29T16:54:14","date_gmt":"2023-11-29T22:54:14","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=16241"},"modified":"2023-11-29T16:54:14","modified_gmt":"2023-11-29T22:54:14","slug":"achieving-financial-freedom-your-end-of-the-year-checklist","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/achieving-financial-freedom-your-end-of-the-year-checklist","title":{"rendered":"Achieving Financial Freedom: Your End of The Year Checklist"},"content":{"rendered":"

Whether updating your beneficiaries, enrolling in a new healthcare plan, or simply sitting down with your financial advisor to see if you’re on track, the end of the year is a great time to make sure you’re up to date with your retirement plan. <\/b><\/p>\n

In this blog, we will walk you through an end-of-the-year checklist to help you take control of your finances, help optimize your tax situation, and help set yourself up for a prosperous 2024. Here’s what you need to know.<\/span><\/p>\n

\"\"Check Your Financial Health<\/b><\/h3>\n

Your financial health is the cornerstone of your financial well-being. Reviewing your finances to stay on track to meet your goals is essential. Start by examining your sources of income. This may include social security,<\/a> rental income, dividends, and other income streams.<\/a> Be sure to account for all sources and if there have been any changes during the year.<\/span><\/p>\n

Taking the time to review your investment portfolio is also vital. Check if your stocks, bonds, mutual funds, real estate, and other assets perform well. Consider whether they align with your risk tolerance and financial goals if they aren’t. Rebalance your portfolio<\/a> if necessary to maintain your desired asset allocation.<\/span><\/p>\n

Once you’ve finished your financial assessment, establish clear goals for the upcoming year. These goals can include increasing your emergency fund, boosting retirement contributions, or saving for healthcare in retirement. Setting specific and achievable goals will help you stay focused and motivated. By thoroughly evaluating your financial health, you better understand your current financial standing and areas that require attention.<\/span><\/p>\n

Take Advantage of Charitable Tax Benefits<\/b><\/h3>\n

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The end of the year is an excellent time to make charitable contributions.<\/a> Not only does this help those in need, but it can also help provide you with valuable tax benefits. To help maximize your tax deduction, you can make donations to qualified tax-exempt organizations.<\/span><\/p>\n

Qualified Charitable Distributions are a tax-efficient way for individuals aged <\/span>70\u00bd or older to donate funds from their Retirement Accounts (IRAs<\/span><\/a>) directly to eligible charitable organizations. They can exclude from gross income up to $100,000 of these QCDs. For a married couple, if both spouses are age 70\u00bd or over when the distributions are made and both have IRAs, each spouse can exclude up to $100,000 for a total of up to $200,000 per year.\u00a0<\/span><\/p>\n

It’s a good idea for investors considering QCDs to be aware of the IRS rules and requirements associated with this strategy. These rules can change over time, so consulting with a <\/span>Fiduciary advisor<\/span><\/a> can help you stay compliant and maximize the benefits of Qualified Charitable Distributions.<\/span><\/p>\n

Complete Roth Conversions<\/b><\/h3>\n

Roth conversions involve transferring funds from a traditional IRA or 401(k) into a Roth IRA. While you’ll pay taxes on the converted amount, the benefit lies in tax-free withdrawals during retirement. Here’s why Roth conversions<\/a> can be a smart financial move:<\/span><\/p>\n