By Lindsey Simek, Financial Advisor

As we close out 2021 and look forward to the New Year, there maybe a few financial moves to make still this year. I am sure that for many of you, much like myself, 2021 brought many changes, both personally and professionally. New jobs may have started for some, while others are getting closer to retirement, if not already there. You may have an increased income and need a tax advantaged retirement account. Or maybe you have received an inheritance and need to find ways to invest. Some may have started a new family, lost a loved one, whatever it may be, changes such as these may prompt you to review your finances and better position yourself for whatever 2022 may bring.

Have your income levels changes?  If so, you may want to check on the amount you have withheld. Do you need to withhold more and adjust withholdings at your employer via W-4? As financial situations change, so do the amounts withheld and you may need to adjust your withholdings before the new year starts.

Not only are donations a great way to give to charities that we hold closest to our hearts, but also a great way to possibly qualify for a tax deduction. There are many tax advantageous ways to give, either through deduction, giving appreciated stocks or through your required minimum distribution.  We’re happy to walk you through what maybe best for you and the charities you cherish.

If you’re 72 years old or older, have you taken your Required Minimum Distribution (RMD)? Remember that before the end of the year, if you have reached the age of 72, you must take the required minimum distribution out of your pretax retirement accounts such as IRA’s, 401k’s, even qualified annuities. There are penalties if this is not done by year’s end.*

Also, tax-loss harvesting is a way for tax advantages in your nonretirement investment accounts. This is the practice of taking capital losses (selling securities worth less than you originally paid for them) to offset capital gains. You can then move those funds to other investment to get the upside while getting the tax write off.**  We look to do this for our clients here at Capstone, if you have other outside investments, this should be consider. We are here to offer guidance and advice as this should be done with a financial professional.

So, as we look forward to many holiday celebrations and spending time with friends and family, you may want to consider some last-minute moves. Always feel free to call us to plan for this year, 2022 and years to come.

*Few exceptions for RMD if you’re still working, you may not need to take out of your current workplace plan, but need to double check

**IRS says new security can’t be “substantially identical.” There is a 30 day wash rule before buying the same security again


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