Photo of Eric R. Ebbert, CFP®, MBA, CEO Eric R. Ebbert, CFP®, MBA, CEO Nov 09, 2020

As we approach the end of the year, there is a lot to think about. What are you going to do for the holidays? Have you met your goals this year? What are some new goals you want to reach for next year? Also, what about your investment portfolio? Is that in order?

The end of the year is the best time to evaluate your investments and make changes or increase contributions before the time is up. There is a lot to keep in mind, so we want to help by breaking down what you need to remember for year-end portfolio management.

Four important things to remember for year-end portfolio management

  1. Review your equity allocation — Are your investing more heavily in bonds or stocks or mutual funds? Depending on how close you are to retirement, you may need to shift around your investments into more conservative channels so your funds are less vulnerable to a volatile market.
  2. Check your retirement plan progress — The maximum contribution limit for 401(k) retirement plans in 2020 is $19,500 (or $26,000 if you are 50 years or older). The maximum IRA contribution is $6,000 (or $7,000 if you are 50 or older). If you have not reached your annual contribution limits and can afford to, you need to make a plan to max out your contributions.
  3. Leverage a charitable giving strategy — Charitable giving is a great way to help other people and to give yourself a tax advantage. Charitable contributions can be deducted up to $300 per taxpayer. Itemized charitable contributions can be deducted up to 100% of adjusted gross income (AGI). If you are looking for ways to reduce your taxable income, consider making qualified charitable contributions before the end of the year.
  4. Consider tax-loss harvesting — If your investments such as mutual funds or bonds are underperforming, you can sell them at a loss before the end of the year. It hurts to not see a profit on your investments, but selling at a loss can reduce your tax bracket, which lowers your taxable income. This is a good conciliation if you have some underperforming short-term investments.

Talk to a ProVise CFP® professional about managing your investments and protecting your finances

Investing is a great way to grow your wealth and reach your retirement goals, but it is difficult to navigate the market on your own. You need an experienced financial professional to act as your guide in the financial landscape.

At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about investing? Contact ProVise today to schedule a complimentary consultation.