3)
Capital gains and losses can have a big effect on your tax bill. Whether they help or hurt, it’s good to be prepared for what’s coming. Depending on your situation, it could make sense to actively harvest (aka: sell) any securities at a loss. Your financial advisor can look over your investment portfolio and tell whether that strategy applies to you. What (if any) changes might I make to my investment portfolio for tax reasons? Most bonds, for example, generate taxable income. It might save you money if you were to hold tax-inefficient investments like this in a tax-deferred account, like an IRA.
4)
One sentiment that I always discuss with my clients is liquidity and that having emergency savings set aside is essential and should be prioritized ahead of other investment and savings goals. In 2023, inflation affected not only people's spending but also their savings. Ensure you have enough saved for emergencies. It's a good rule of thumb to have about three to six months of living expenses in an emergency savings account, to be used in the event of a major expense or job loss. When the unexpected happens, a solid emergency fund means you're less likely to need to pull money out of investments or rack up debt to cover it. The value here is that it keeps you on track to make sure to shore up the resilience of your portfolio as you grow your wealth.
5)
New chapters for you and your family also mean new wealth management strategies to consider. A new child, niece, nephew, or grandchild coming? It might be a good time to open a 529 plan. Maybe your child or grandchild has reached the age at which they take control of an UTMA/UGMA custodial account you created for them. Or maybe you’ve turned 50, and you can start making catch-up contributions into tax-advantaged retirement plans. (If you’ve turned 72, you’ll probably have to start taking required minimum distributions from those retirement plans…something to also discuss with your advisor).
6)
Ask your advisor and estate planning attorney for help in deciding who should manage your affairs if you can’t anymore. This may include your will, your health care directive/directives, and power of attorney paperwork, among other things. The idea is to make things easier for your loved ones; having the right person in the right role can make a big difference in an emergency. Nearly 35% of American adults say they’ve personally experienced family conflict, or know someone who has, because they didn’t have an estate plan in place. Should something happen to you, it’ll also be easier for your loved ones if all your bank and investment accounts list the right person (or persons) as a beneficiary. Also ask if your accounts should include a transfer on death (TOD) or payable on death (POD) designation. People get funny when it comes to money!