Page 27 - Leisure Living Magazine: Holiday 2020 Edition

Your Year-End Financial Planning Checklist
By Tyler McKean AWMA, CEPA®, True Alpha Wealth Management, Tyler@truealphawm.com
The end of the year is a time where there are many deadlines that are approaching, so it makes great sense to ensure your financial plan is still on track.
Here are seven of the most common and important items to review:
1. Your Goals
When you first met with your CERTIFIED FINANCIAL PLANNERTM , you outlined long- term goals and built
a financial plan to
reach them. Have your goals changed that might make reaching them more challenging or easier?
Maybe you have had some health worries this year or want to retire a little sooner. Discuss these changes with your planner so that your financial plan can reflect these changes. 2. Your Performance
It’s important that
you understand how you performed relative to your goals and a group of indices. Otherwise, how do you know whether you’re on track or not? 3. Charitable Gifts
Nearly one-third of all giving happens in the month of December, and 12% of all giving happens in the last three days of the year. Why wait?
4. Retirement Plan and Health Savings Account Contributions
The deadline is April 15th to contribute to IRAs for the current tax year, but most other retirement plan contribution deadlines are December 31st. If you receive a bonus, make sure you tell your employer to put a portion of your bonus into your 401(k).
5. Helping Children and Grandchildren
Make contributions to a college 529 Plans
by December 31st. Any Ohio resident that is an account owner or a gift giver – who contributes to Ohio’s 529 Plan - can deduct their contributions from their taxable state income. The deduction is now $4,000 per year, per beneficiary, with unlimited carry forward.
Also consider contributing to a ROTH IRA account for children and grandchildren!
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6. Tax Losses and Gains
You must take all realized tax losses (or gains) in your portfolio by December 31st. You should also review your year-to-date gains or losses and any tax-loss carry- forwards from previous years.
7. Required Minimum Distributions in 2020
The CARES Act waives required minimum
distributions during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts. Roth IRAs do not require withdrawals until after the death of the owner.
2020 Year-End is Stressful Enough!
Be sure to meet or Zoom with your financial advisor to address all of these financial planning items as soon as possible to avoid missing deadlines.
Tyler R. McKean, AWMA, CEPA® was recognized by Forbes and SHOOK Research as one of Forbes Best- in-State Wealth Advisors* in 2020 and Forbes Best-In- State Next-Generation Wealth Advisor since 2017.** He represents the future of the wealth management industry.
*For research/selection methodology go to Forbes Best-in-State Wealth Advisor and ** www.forbes.com/ top-next-gen-advisors.