FI SCAL FI TN ESS continued from page 14 are now offering. Most of these plans have to be established by year-end. Maximize your 401(k) or IRA contributions and ensure your beneficiaries are up to date.
ESTATE PLANNING This is often an area that gets brushed to the side if for no other reason than many clients don’t like to think about their own mortality. It is important, however, that you ensure that your desires for the distribution of your assets would be met were you to die suddenly. Make sure beneficiary designations on retirement accounts and life insurance policies are up to date. These instruments rely on the beneficiary designation and not what is in the will. Has your family situation changed? Is there another child or grandchild to be accounted for? Did you get married? Divorced? Spouse pass away?
BUDGET The holidays can be a busy time, but also a good time to set a budget. This is the time of the year when lots of your money is being spent. No better time to look at your finances than now. Think of ways to cut down on some of your expenses and/or plan on contributing more to retirement or college savings plans.
SET GOALS FOR THE UPCOMING YEAR This can go hand-in-hand with budgeting. I’m also advising clients to not only set financial goals, but personal, professional, entertainment and educational goals. This is another great time to do that.
ANALYZE PORTFOLIO AND REBALANCE This is a great time to sell a large position in one stock and diversify. Also, as markets have been volatile lately, it is important to structure your portfolio in the correct balance. With domestic stocks outperforming international and emerging markets significantly this year, you could be overweight in areas and underweight in others. Make sure your investment strategy is on track.
CHARITY/GIVING If you donate stock that has increased in value since you bought it more than a year ago – and if you itemize deductions – you can take a charitable deduction for the stock’s fair market value on the day you give it away. You’ll also avoid capital-gains taxes on the increase in value over time, which you would have had to pay if you sold the stock then gave the charity the cash proceeds. Good charities/foundations appreciate your charitable gifts.
SCHEDULE REVIEW Arrange meetings with your advisor. Make it a priority and prepare by creating a list of topics to help get the most out of your discussion. Talk to your financial and tax advisors for information specific to your individual needs and goals. Michael J. Donnellan is President of King Financial, Inc. specializing in stock selection and retirement planning. Feel free to contact him with any questions or comments at the M3 Wealth Management office at 17601 W. 130th Street – Suite 1 in North Royalton, Ohio. Phone number (440) 652-6370 Email: donnellan@m3wealthmanagement.com Securities & advisory services offered through L.M. Kohn & Company Registered Broker/Dealer Member FINRA/SIPC/MSRB 10151 Carver Rd. Suite 100 – Cincinnati, Ohio 45242 (800) 478-0788
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