Haddam Road in the News

As the year comes to a close, it’s the perfect time to review your financial strategy and make adjustments to set yourself up for success in the coming year. From maximizing retirement contributions to leveraging tax-saving opportunities, there are key money moves that can help you reduce your tax liability, optimize your investments, and ensure your financial goals are on track.

Haddam Road Founder and Financial Planner, Brian Kearns was recently featured in Go Banking Rates. In the article, Brian discusses the 7 Money Moves You Should Hurry To Make Before the Year Is Over...

Full Article: GoBankingRates.com

1. Maximize Retirement Contributions: Ensure you've contributed the maximum allowable amounts to your retirement accounts, such as 401(k)s and IRAs. For 2024, the contribution limits are $23,000, with an additional $7,500 catch-up contribution for those aged 50 and above. Some employers permit after-tax contributions, allowing total contributions up to $69,000, which can be converted into a Roth 401(k) or IRA.
   
   
2. Review and Adjust Investments: Assess your investment portfolio to ensure it aligns with your financial goals and risk tolerance. Rebalancing your portfolio can help maintain your desired asset allocation.
   
   
3. Utilize Tax-Loss Harvesting: Offset capital gains by selling investments that have incurred losses. This strategy can reduce your taxable income for the year.
   
   
4. Make Charitable Contributions: Donating to qualified charities not only supports good causes but can also provide tax deductions. Ensure donations are made by December 31 to count for the current tax year.
   
   
5. Spend Flexible Spending Account (FSA) Funds: FSAs often have a "use it or lose it" policy. Check your balance and spend remaining funds on eligible medical expenses before the year's end to avoid forfeiture.
   
   
6. Plan for Health Savings Account (HSA) Contributions: If you have a high-deductible health plan, consider maximizing your HSA contributions. HSAs offer triple tax benefits: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
   
   
7. Review Estate Planning Documents: Ensure your will, trusts, and beneficiary designations are up to date, reflecting any changes in your personal circumstances.

By proactively addressing these areas, you can position yourself for a more secure financial future and potentially reduce your tax liability.

Special thanks to Jordan Rosenfeld and Derrick Lilly at the Illinois CPA Society for this interview and article.