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Tax Strategies to Consider Before Year-End

Posted By Lineweaver Financial Group
October 31, 2024 Category: Tax, Tax Strategy, Tax Brackets, Tax Planning

With the year coming to a close, now is the perfect time to start thinking about tax planning to maximize savings for 2024. Many opportunities for tax adjustments close at year-end, so early preparation can be key to achieving the best possible results. Here are some strategic tax planning tips to consider for the final quarter of the year. The last quarter offers a unique opportunity to review income, deductions, and potential tax-saving strategies while there's still time to act. For business owners, deferring income until next year or accelerating expenses can provide tax advantages. Charitable contributions and pre-paying taxes are also options to consider. Accelerating certain expenses, like equipment purchases, may allow for deductions in 2024, helping to reduce this year’s taxable income. Another useful strategy comes in the form of tax loss harvesting, which involves selling securities at a loss to offset capital gains. Although the final position of your portfolio won’t be set until year-end, starting a review now provides time to make adjustments and capture potential tax benefits. The last few months of the year also provide an ideal time to maximize contributions to retirement accounts like 401(k)s, 403(b)s, and 457 plans. Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can still be funded, providing further tax advantages.  If you’ve turned 73 this year, it’s essential to plan for the required minimum dis

Ask These Four Questions When Planning Your Legacy

Posted By Lineweaver Financial Group
October 17, 2024 Category: Legacy Planning, Inheritance, Beneficiary, Wealth Transfer

While many people equate legacy planning with estate planning, they are not the same. Estate planning is a component, but legacy planning involves more than simply deciding who inherits your assets—it's about ensuring your wealth is passed down efficiently and according to your wishes. To help you get started, here are four essential questions to ask when preparing your finances to pass to your loved ones. 1. Is Your Beneficiary Information Up-to-Date? Every financial account you own—from retirement accounts to life insurance policies—requires a beneficiary designation. This can include primary and secondary beneficiaries, and you may even have multiple beneficiaries per account. It’s vital to review this information annually to ensure its accurate and reflects your current wishes. Ask yourself: Have there been any life changes, such as a marriage, divorce, or birth, that might affect your choices? Is the contact information, including addresses and phone numbers, up to date? It’s also wise to have a conversation with your beneficiaries so they understand what to expect. Additionally, consider assigning a Financial Power of Attorney for each of your accounts, and discuss the responsibility with that individual to make the process as seamless as possible in the event of your passing. 2. Are Your Beneficiaries Aligned with Your Wealth Transfer Strategy? Our beneficiaries are often family members—children, grandchildren, ni

Market Commentary

Posted By Lineweaver Financial Group
October 03, 2024 Category: General, Stock, Finance, Market Commentary

We have been highly constructive on U.S. large-cap stocks in our investment strategies since October 2023. We remain optimistic generally into 2025, but as we enter fall, we think it is prudent to be slightly more cautious as some facts have changed over the last several weeks. First, our analysis of earnings surprises and estimate revisions has detected some cooling trends, suggesting potential moderation of the earnings advantages that catalyzed much of the rally this year so far. Our research also reveals the autumn period in October through mid-November in presidential election years has tended to be more volatile than usual, with increased vulnerability to downside moves. The elevated uncertainty surrounding the upcoming election adds additional complexity. Given the sharp divide in the parties’ expected policy and the expectations of a close race, many real economy actors are delaying major capital allocations and business-defining bets to after election night. In this state of uncertainty, any lack of market liquidity has the potential to trigger volatility. This may be compounded if the final outcome of the election is delayed, as we saw in 2020. Finally, recent changes in market temperament have also caught our attention and give us pause. Relatively tranquil gains in large-cap stocks for most of the year have been disrupted recently with larger single-day selloffs, rotations, and V-shaped snapbacks, which may be signs of a market more susceptible to headlin