7. Check your credit report
If you haven’t pulled up your credit report in a while, now is the time to do so. You can check for inaccuracies or possible fraud on your report. You can also get an idea of what lenders see when they pull your report, which can help you when you’re making a big financial decision, like buying a home. Simply go to AnnualCreditReport.com, and you’ll be able to access the three main credit bureaus for free.
8. Evaluate tax loss harvesting opportunities
Given the turbulent year in the markets, you may want to consult a financial professional (like our team at 1st Capital) about tax loss harvesting in your taxable investment accounts. This is a strategy that reduces capital gains taxes. Essentially, you sell some investments at a loss and buy similar but different securities so that you can offset taxable gains. *Tax advice Not Being Given Here!
9. Consider a Roth conversion
A down market can be an “optimal time” to consider a conversion from a traditional to a Roth IRA, because it can result in a lower tax bill at conversion, coupled with the potential for a market rebound occurring within the tax-free shield of a Roth account. Remember, future qualified withdrawals from a Roth account are free of income taxes, so it can be a tremendous benefit. Our 1st Capital clients love this strategy, and we can help walk you through it. Yes, that means some of your distributions upon retirement will be tax-free (you’ll pay taxes now). Plus, unlike traditional IRAs, Roth IRAs don’t have required distribution mandates (RMD’s). Your money can keep growing until you need it in retirement.
I hope these 9 tips helps you kick off the new year strong and I look forward to providing you with more tools in 2023. Happy Holidays from me and my 1st Capital team.
www.1stcig.com [email protected] 312-952-8040/Cell 312-243-3907/Office