I’ve made the list, you check it twice

Financial Life Planning for Busy Parents

10 Year-End Financial Moves

As the year draws to a close, it's crucial to take a closer look at your finances and ensure you're getting the most out of 2023. In this podcast episode, we've compiled a checklist of 10 financial considerations that can make a significant impact on your overall financial well-being. Listen to Matt and I discuss the following checklist (it is far more entertaining in audio!) and refer to the notes below to ensure you end the year strong. ☑️ Maximize Retirement Contributions: Start by contributing as much as possible to retirement accounts such as 401(k), 403(b), IRA, and HSA. Not only does this help secure your future, but it also reduces taxable income, providing an immediate financial benefit. ☑️ Charitable Donations: Consider making contributions to qualified charities before the year ends to potentially benefit from tax deductions. It's a win-win situation—supporting a cause in which you believe and catching a break from Uncle Sam. ☑️ Prepay Deductible Expenses: If feasible, prepay deductible expenses like mortgage interest, property taxes, and other eligible costs before the year concludes. You could receive valuable deductions on your upcoming tax return (keeping in mind that you would not be able to take advantage of them for 2024). ☑️ Utilize Education Tax Benefits: Explore education-related tax benefits, including the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). These credits can provide substantial financial relief for qualified education expenses. ☑️ Review and Offset Investment Gains/Losses: Take a closer look at your investment portfolio. Consider offsetting gains with losses to potentially reduce your overall taxable income. Read more about this strategy in the Wall Street Journal. ☑️ Utilize Health Savings Accounts (HSAs): Maximize contributions to HSAs to reduce taxable income and cover medical expenses. ☑️ Maximize Child and Dependent Care Credits: Ensure you've accounted for all eligible expenses related to child or dependent care for potential tax credits. This includes childcare costs, summer day camp expenses, after-school care, and contributions to a Dependent Care Flexible Spending Accounts (FSAs). ☑️ Evaluate Business Expenses for Deductions: If you're self-employed, meticulously review and account for business expenses like supplies, mileage, and home office costs. These deductions can significantly impact your taxable income. ☑️ Consider Energy-Efficient Home Improvements: Did you make some upgrades to your home this year? Explore potential tax credits for qualifying home improvements such as solar panels, energy-efficient windows and doors, HVAC systems, insulation upgrades, and energy-efficient appliances. Not only do these upgrades benefit the environment, but they also allow for nifty tax savings. ☑️ BONUS: Review Financial Goals: Finally, take the time to evaluate your progress toward your financial goals for the year. Use this reflection to make informed adjustments and set new goals for the upcoming year. Remember, it's not just about making the list; it's about taking action. By addressing these financial considerations before the year ends, you'll be better positioned to make the most of your money in 2023. So, as you navigate the holiday season, don't forget to give yourself the gift of financial empowerment. Happy planning!