Three Investment Moves to Consider Before Year-End

Simple ways to help optimize your portfolio

What type of Investor are you?

by Ansis Salzirnis  I  November 2021  I  8 min read

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The end of the year provides an opportunity to shut the book on one chapter of one's life and begin another. The same is true for your finances. Here are three movements that investors should think about before the end of the year.

1. Consider year-end stock donations

If you want to donate to a nonprofit organization, think about how much you want to give in order to get tax breaks. If you can itemize your deductions and have held an appreciated stock for more than a year, you could consider donating it straight to the charity. Your charitable deduction will be calculated at fair market value (subject to certain AGI limitations), and you will avoid paying capital gains tax on the appreciation. 1 The charity that receives the stock will benefit from having an asset that it may sell for cash or maintain for the future.

2. Schedule a portfolio checkup

Schedule a year-end appointment with your Financial Advisor to discuss your present financial situation, goals, and the implications of upcoming economic changes.

  • * Make your Financial Advisor aware of any life events that occurred during the year, including as marriage, divorce, babies, funerals, establishing a business, getting a new job, and purchasing or selling property, if you haven't previously.
  • * Discuss ways to assist ensure that your portfolio is aligned with your financial goals, both new and existing, and that risk is managed.
  • * Inquire with your Financial Advisor about how he or she sees economic changes and how they may affect your investment recommendations. Interest rate increases, for example, have the potential to impact numerous asset classes, including Treasuries, bond markets, and equities, particularly for companies that are heavily impacted by changes in interest rates.

3. Focus on your retirement savings

If you've moved employment or retired, consult with your Financial Advisor about your options for investing in a qualified employer sponsored retirement plan (QRP), such as a 401(k), 403(b), or governmental 457. (b). Check the year-to-date status of your retirement contributions to ensure that you have taken advantage of any available tax breaks.

Getting started with investing is easy. If you learn about the basic types of investments and find the right advisor, you can begin making more informed financial choices for the future.

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