Can you believe December is here?

It seems like only yesterday we were packing up for summer vacations and enjoying early fall tailgates.

But just like that, the holiday season is ramping up.  Still, don’t let busy schedules stop you from considering these smart financial moves before 2023 closes out.

Max Out Retirement Accounts

If capable, you want to consider contributing up to the maximum amounts allowed into your 401k, IRA, and other tax-advantaged retirement plans. This lowers your 2023 taxes and builds more tax-free retirement savings going forward.

Boost Your Emergency Savings

Having 3-6 months’ worth of living expenses banked is a good place to start and brings peace of mind. Consider adding to your cash reserves if they are not in that target emergency buffer zone yet, through cash gifts or holiday bonuses you receive this time of year.

Prepay Some Expenses Early

Maybe we should look ahead? You can pay planned 2024 expenses like property taxes and charitable donations before 2023 ends. Doing so forwards tax deductions to offset this year’s income.

Gift Money to Family Tax-Free

Looking at cash gifting family this year? Consider giving cash or other assets to younger relatives or loved ones now before current generous exemption limits could potentially drop. This could prevent future estate taxes down the road.

These four key strategies are valuable to many of our clients, but remember, every situation is different!  That’s why having a process-driven financial plan can be so valuable.

Let’s connect to discuss personalizing your year-end strategies soon before time runs out!


This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
Securities and advisory services offered through LPL Financial, A Registered Investment Advisor. Member FINRA/SIPC.