How did you do this year?
Consider opening or adding to an IRA. Annual contributions limits are scheduled to increase in the coming years with additional “catch-up” contributions allowed for those 50 and over. Evaluate to see whether a traditional IRA or Roth IRA makes sense for you.
If you haven’t already done so, you may wish to take some losses in your non-retirement portfolio accounts. The losses can offset profits earned from other investments in your portfolio.
Consider donating cash and property to charity. Gifts to charity are tax-deductible. The date on the check or receipt is usually considered the date of the donation for tax purposes.
Rebalance your portfolio. Uneven price movements in your investments can upset the balance over time. Is your actual asset allocation in line with the desired allocation mix, determined by your risk tolerance profile? Maybe an adjustment is necessary.
This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.
Asset allocation, which is driven by complex mathematical models, should not be confused with the much simpler concept of diversification.
Some IRA's have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney.