6 Financial Power Moves to Finish 2023 Strong
As we approach the final weeks of the year, it's prime time to make strategic financial moves that can set the stage for a prosperous 2024. Here are six impactful actions to consider before the year concludes:
1. Amplify Charitable Donations
For those aiming to itemize their taxes, ensure your 2023 charitable donations are in order before the year-end. Whether it's monetary contributions, stock donations, or tangible items, secure those receipts to maximize your deductions.
2. Explore Roth Conversions
If you hold individual or rollover IRAs and aren't employing a backdoor Roth strategy, consult a fee-only fiduciary financial planner or a CPA to assess the feasibility of Roth conversions before the year concludes. This strategic move can lead to substantial tax savings in the long run, based on your current tax bracket.
3. Utilize Healthcare Flexible Spending Account (FSA) Balances
Don't let your FSA account become a victim of the "use it or lose it" feature. Familiarize yourself with your FSA balance and understand the implications if it remains unused by the end of 2023. Maximize its potential before it resets.
4. Exercise Stock Options
For vested Incentive Stock Options (ISOs) and Non-Qualified Stock Options (NQSOs), consider exercising a portion before their expiration dates. Collaborate with a tax expert or a Financial Planner offering Tax Planning Services to optimize the benefits of your Employer Stock Options.
5. Make Annual Gift Exemptions & 529 Contributions
Take advantage of the annual gift exemption, allowing you to gift up to $17,000 (2023) without triggering wealth transfer taxes. Craft a strategic plan to reduce wealth transfer taxes effectively. Additionally, ensure your children's education savings accounts, such as UTMAs, UGMAs, or College Savings 529 Plans, are adequately funded.
6. Collaborate with a Certified Financial Planner
Kickstart your financial journey by partnering with a Certified Financial Planner (CFP) operating on a fee-only basis. Choosing a fiduciary ensures unbiased financial planning advice tailored to your life decisions, providing a solid foundation for your financial future.
Bonus: Fine-Tune Your Spending Habits
Cap off the year by reviewing your spending over the past 12 months. Create an average of your monthly spending to establish a benchmark for 2024. This proactive approach lays the groundwork for better financial management in the coming year.
In conclusion, managing finances need not be daunting. With the right resources and guidance, it can be both enjoyable and enlightening, empowering your financial legacy. Collaborate with a fiduciary Financial Planner for unbiased advice, providing the reliable guidance needed to navigate the path ahead. Because, ultimately, we all seek a trustworthy partner offering unbiased advice to steer us in the right direction. Let's finish 2023 strong and pave the way for a financially thriving future! 🚀💼
I am Raman Singh and I am a Certified Financial Planner™, Your Personalized CFO, and my vision is to empower my community by providing guidance, coaching, and courage to help them achieve happier & healthier lives.
