Prepare Financially for Year-End: Smart Steps to Start the New Year Strong

As the end of the year approaches, it’s the perfect time to focus on strengthening your financial foundation. At Cedrus Wealth Group, we believe that strategic year-end planning can lay the groundwork for long-term growth, tax efficiency, and financial security. Here’s our guide to key financial moves that can set you up for success in the new year.

1. Max Out Your Retirement Contributions

• Why It’s Important: Maximizing retirement contributions is one of the simplest ways to save on taxes today and build a secure future.

• Our Take: Check if you’re on track with your 401(k) or IRA contributions. Our team can help you make strategic decisions based on your unique goals, ensuring your retirement planning is efficient and effective.

2. Check Your Tax Withholdings

• Why It’s Important: Avoiding a surprise tax bill can help you stay financially balanced and avoid unnecessary penalties.

• Our Take: Use the IRS withholding estimator or consult with a tax professional. Cedrus Wealth Group offers tailored advice to keep your tax planning proactive, so you’re not caught off guard come tax season.

3. Leverage Tax-Loss Harvesting

• Why It’s Important: Selling investments that aren’t performing well to offset gains can help reduce your taxable income, creating potential tax savings.

• Our Take: Let us review your portfolio and see if tax-loss harvesting fits your financial picture. This strategic move may enhance your tax efficiency while aligning your investments with long-term goals.

4. Use Any Leftover FSA Funds

• Why It’s Important: FSAs often have a “use it or lose it” policy, so any unused funds may be forfeited after year-end.

• Our Take: Check your FSA balance and plan to use it for eligible expenses. At Cedrus Wealth Group, we’re here to guide you on tax-efficient health and wellness spending to ensure no funds go to waste.

5. Consider Charitable Contributions for a Cause (and Potential Tax Benefits)

• Why It’s Important: Charitable donations not only give back to your community but may also reduce your taxable income.

• Our Take: Cedrus Wealth Group can assist in strategic charitable giving to maximize impact and tax benefits. From direct contributions to donor-advised funds, we help you make meaningful choices.

6. Build Up Your Emergency Fund

• Why It’s Important: A well-funded emergency reserve provides a financial safety net and peace of mind.

• Our Take: We recommend having 3-6 months of essential expenses set aside. If you need to boost your fund, our financial planning team can work with you to make this goal achievable in the coming year.

7. Review Your Insurance Coverage

• Why It’s Important: Insurance needs can change as your life evolves, so it’s essential to review your policies regularly.

• Our Take: Cedrus Wealth Group can help you assess your insurance needs, ensuring your coverage aligns with your current situation and goals. Protecting what you’ve built is just as important as growing it.

8. Set Financial Goals for the New Year

• Why It’s Important: Clear, defined goals make it easier to track progress and make adjustments as needed.

• Our Take: We help clients set measurable, realistic financial goals. Whether it’s saving more, reducing debt, or increasing your retirement contributions, we’ll create a personalized strategy to support your vision for financial growth.

9. Consider a Roth Conversion (If It Aligns with Your Goals)

• Why It’s Important: Converting part of your retirement funds to a Roth IRA may provide tax-free growth and income in retirement, depending on your circumstances.

• Our Take: Cedrus Wealth Group offers detailed analysis to determine if a Roth conversion is right for you. With tax implications and potential benefits, this decision requires careful consideration, and we’re here to guide you.

10. Update Your Estate Plan and Beneficiaries

• Why It’s Important: Keeping your estate plan and beneficiary designations up-to-date ensures your assets go to the right people.

• Our Take: We can work with your estate planning attorney to review your will, trusts, and beneficiaries. Estate planning should adapt to life changes, and our goal is to help you protect your legacy for those you care about.

At Cedrus Wealth Group, we are committed to guiding you through year-end financial decisions with clarity and expertise. Reach out to learn how we can help optimize your financial plan for the future, strengthen your strategy, and empower you to enter the new year with confidence.

Ready to take your next financial step? Connect with us today to see how Cedrus Wealth Group can support your year-end planning needs.

Any opinions are those of Cedrus Wealth Group and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax- free withdrawals are permitted. Additionally, each converted amount may be subject to its own five-year holding period. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Prior to making an investment decision, please consult with your financial advisor about your individual situation.