by Austin Boyce: Portfolio Management; Emerging Advisor; Process Designer
If you’re anything like me, fall equals football time. As I have been transitioning to my new role as a Financial Advisor, I lean on the wisdom and experience of our entire advisory team, especially our three Lead Advisors who often take on the role of coach. Here are some strategies from their playbooks as we head into the year’s final quarter.
Assess Healthcare Needs – Most employer plans, the individual plan marketplace, and Medicare all include November as open enrollment time, so no better time than now to start considering the best plan for the upcoming year. Plans and personal needs change from year to year so evaluating the available options is essential.
Max Out Retirement Accounts – The 2024 contribution limit is $23,000; if you turn 50 before December 31st, you can put in an additional $7,500. You still have a few paychecks left to increase your contribution rate to ensure you max it out (you’ll want to make sure to evaluate the contribution rate again in January to know you are on track to meet the 2025 maximum).
SoundView Advisors’ Head Coaches, Hard at Work
Spend Flexible Spending Accounts (FSAs) – These accounts are set up as use-it-or-lose-it. Some employers may offer a grace period into next year or allow for some carryover. Make sure you know the rules for your account so you don’t lose any money!
Charitable Contributions – If you aren’t itemizing your deductions but are giving to charities, it might be worth considering “bunching” your contributions so that you give multiple years in one year to push you over the itemized threshold.
Tax Bracket Management – If you have had a temporarily low-income year for 2024, communicate that with your advisor (if you haven’t already). We can implement strategies to take advantage of the relatively lower income.
Tax Evaluation – For W-2 employees especially, now is a good time to look at your most recent paycheck and evaluate if your tax withholdings are on track. Better yet, ask your advisor to review your pay stub and see if any changes or estimated payments should be made for the last quarter of the year.
October is an ideal time to implement a strategy for tackling these year-end tasks. Before you know it, the holiday season will be in full swing, and 401k’s, HSA’s, and taxes will be the last things on your mind. Your SoundView team is available to answer questions and help you call the right plays for your financial game plan.