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By Mark McGregor, CRPC®, CFF®

As we approach the end of another year, I’m reminded of a conversation I recently had with a client who thought they’d missed several key tax-saving opportunities—only to discover we still had time to implement strategies that could save them thousands.

This scenario plays out more often than you might think, which is why I’m sharing this comprehensive year-end checklist to help you finish strong and prepare for the year ahead.

Time-Sensitive Opportunities You Can’t Afford to Miss

The final months of the year present unique opportunities to optimize your financial position, but many of these options expire when the calendar turns. Here’s what deserves your immediate attention:

Tax-Smart Moves to Make Now

Year-end tax planning isn’t just about finding deductions—it’s about positioning yourself for long-term tax efficiency. Consider these key strategies:

Required Minimum Distributions (RMDs): If you’re 73 or older, confirm you’ve taken your RMDs from retirement accounts. The penalty for missing this requirement is steep—50% of the amount you should have withdrawn. Even if you don’t need the income, there are smart ways to use these distributions.

Tax-Loss Harvesting: Market volatility this year has created opportunities to harvest tax losses while maintaining your investment strategy. These losses can offset capital gains and up to $3,000 of ordinary income.

Charitable Giving: Consider bunching multiple years of charitable contributions into one year to exceed the standard deduction threshold. Donor-advised funds can help you maintain consistent giving while maximizing tax benefits.

Investment Portfolio Review and Rebalancing

Market movements throughout the year may have shifted your asset allocation away from your targets. Now is the time to:

Review Your Risk Tolerance: Has anything changed in your life that might affect how much risk you’re comfortable taking? Your portfolio should reflect your current situation, not last year’s.

Evaluate Investment Performance: Look beyond raw returns to understand how your investments are performing relative to their appropriate benchmarks. This helps identify needed changes for the coming year.

Consider Tax-Efficient Rebalancing: Sometimes the best time to rebalance isn’t at year-end. We can help determine if now is the right time for your situation.

Looking Forward: Setting Up for Success

While year-end planning often focuses on tax savings, it’s also the perfect time to lay groundwork for the coming year.

Retirement Account Strategies

Max Out Contributions: Ensure you’re taking full advantage of retirement account contribution limits. For 2024, you can contribute up to $23,000 to a 401(k), plus an additional $7,500 if you’re 50 or older.

Consider Roth Conversions: With current tax rates scheduled to sunset after 2025, this might be an opportune time to consider converting traditional IRA assets to Roth accounts.

Insurance and Protection Planning

Review Coverage Levels: Have you acquired new assets? Started a business? Had changes in your family situation? Your insurance coverage should reflect your current reality.

Long-Term Care Planning: If you haven’t addressed long-term care needs, now is an excellent time to explore options while you have a full range of choices available.

Estate Planning Considerations

Review Beneficiary Designations: Major life events (e.g., marriages, divorces, births, or deaths) might necessitate updates to your beneficiary designations.

Gift Tax Exclusions: You can give up to $18,000 per person in 2024 without gift tax implications. These exclusions don’t carry over to next year, so consider using them if gifting is part of your strategy.

Creating Your Action Plan for the New Year

Setting financial goals without an action plan is like having a destination without a map. Here’s how to create an achievable road map:

1. Prioritize Your Objectives: Not all financial goals are equally urgent. We help you identify which objectives need immediate attention and which can be addressed over time.
2. Break Down Large Goals: Instead of “save more for retirement,” set specific targets, such as increasing your 401(k) contribution by 1% each quarter.
3. Establish Monitoring Systems: Regular review points throughout the year help you stay on track and adjust as needed.

A Partnership for Success

At McGregor Wealth Management, we understand that year-end planning can feel overwhelming. That’s why we take a systematic approach to helping our clients identify and capitalize on opportunities while there’s still time to act.

Let’s work together to review your situation and help you take advantage of all available opportunities before year-end. Moreover, we help you create a clear, actionable plan for the coming year that aligns with your long-term objectives.

Contact us today to schedule your year-end review. Remember, many of these opportunities expire when the ball drops on New Year’s Eve—don’t wait until it’s too late to act.

About Mark

You probably have people helping with your investments, legal matters, and taxes…but who makes sure you are getting all the benefits you’re owed? I do. My name is Mark McGregor. I scour federal, state, local, and corporate databases to find benefits you are owed but NOT receiving. That’s what I do. Yes, we do all the other things as well, such as providing investment management, tax planning, long-term care planning and other services. Those are the big things, but I also help to make sure the little unknown things are taken care of for you. It’s also making sure that the little things don’t become big problems for you down the road.

I got into this business to fill a void I noticed after the passing of one of my friends’ parents who was experiencing hardship due to poor planning. I saw the issues they had to deal with firsthand, and this left me feeling that there were lots of financial salespeople, but not many true advisors making sure people were getting all the available benefits they had worked so hard for.

I use the skills I gained from my bachelor’s degree from California Polytechnic State University and 24 years of industry experience to get all the benefits my clients are owed. I live in Castle Rock, and we are actively involved in sports and charitable organizations, such as Unbound, which provides personal attention and direct benefits to children, youth, the aging, and their families so they may live with dignity and achieve their desired potential and participate fully in society.

Disclaimer: Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM and McGregor Wealth Management are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents.