Today is election day, an opportunity to exercise your right to vote and a reminder that the end of the year is approaching. Here are ten tips from Luma Wealth to help you make the most of your wealth and take advantage of opportunities well before the winners take office in 2018.
Tip #1: Prepare for life’s transitions
It happens to everyone. Circumstances change. Parents age, job opportunities come and go, people get married and divorced. You may not know what’s in store for you in 2018, but you can prepare by having your wealth plan in order.
Tip #2: Make necessary adjustments
If something significant has happened in your life over the course of the year, a new job, a new home, a new grandchild, your wealth, tax and estate plans may need revising.
Tip #3: Give to your loved ones
The annual gift tax exclusion for 2017 is $14,000 per recipient, and if you’re married you can double it. Your gift will reduce your taxable estate and if used for tuition or medical expenses, the amount is unlimited if paid directly to the school or medical provider.
Tip #4: Remember your favorite charities
Your generous gifts not only help the causes you believe in, but also provide valuable tax benefits. However, contributions must be received by December 31st to count toward your 2017 tax return.
Tip #5: Don’t leave money on the table
Reduce your potential tax burden by contributing the maximum amount possible to your individual or corporate retirement plan, and make the most of saving for retirement – especially if your company matches your contribution.
Tip #6: Consider deferring income
Small business owners should determine if it makes sense to delay income into next year or accelerate expenses. Sometimes executives also have flexibility on when to take income, especially a bonus. Your financial advisor can help you figure out your best options.
Tip #7: Don’t forget about required minimum distributions (RMD)
If you have an IRA, inherited IRA or inherited Roth IRA, you may need to take a RMD for 2017 to avoid a penalty.
Tip #8: Double check your insurance
Did you make a significant new purchase this year? It may be time to review your insurance policies and make sure you are covered.
Tip #9: Make connections
Everyone can benefit from a supportive community and Luma Wealth is happy to help. Make it a resolution to check out our upcoming events, held throughout the year, where you can learn, connect and celebrate.
Tip #10: Take stock of your goals
Are you ready to cross some items off your bucket list? Perhaps you want to buy a vacation home or take an extravagant trip around the world before the year is through. Your advisor can help you plan the best way to finance your dreams, while keeping your wealth plan on track.
Whatever your situation, Luma Wealth can help you create a wealth plan to make the most of 2017 and start the new year off right, regardless of the election outcome.