Maximize Your Wealth Before the 2024 Ball Drops: 10 Year-End Financial Strategies for High Achievers

As the year draws to a close, it’s a prime time for reflection—not just on your personal achievements and milestones but also on your financial growth and planning.

At Cogent Strategic Wealth, we recognize that the end of the year can be a critical moment for making strategic decisions that not only safeguard your wealth but also optimize your financial future.

In this post, we delve into essential year-end financial strategies designed to boost your fiscal health and minimize your tax liability.

From maximizing retirement contributions to strategic gifting, these insights are crafted to help you, our high-achieving professionals, navigate the complexities of financial planning as the year winds down.

Here are a few compelling considerations that could benefit you:

Maximize Retirement Contributions: If you’re under 50 and a business owner or partner, contribute up to $69,000 to your retirement plan in 2024; if you’re over 50, up to $76,500. Take advantage of other plans like Cash Balance Plans to potentially exceed $200,000 in contributions. Don’t miss employer matches in employer-sponsored plans for immediate returns if you are an employee.
Leverage HSA Benefits: With a high-deductible health plan, max out your HSA contributions for a triple tax benefit: deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses.
Adjust Tax Withholdings: Significant income changes this year? Adjust your withholdings or estimated tax payments to avoid penalties and surprises at tax time.
Strategic Moves in Low-Income Years: Use low-income periods for strategic tax moves like converting traditional IRAs to Roth IRAs to benefit from tax-free growth in the future.
Gift to Reduce Estate Size: Use the annual exclusion of $18,000 per recipient to reduce your taxable estate and support loved ones without incurring gift taxes. Consider larger gifts by tapping into your lifetime exclusion.
Purposeful Charitable Giving: Amplify your impact and enjoy substantial tax benefits by donating to approved charities or establishing a donor-advised fund. This could include donating appreciated securities to minimize capital gains taxes.
Optimize Investment Portfolio: Employ t ax-loss harvesting to offset gains and reposition your investments more tax-efficiently across your portfolios using possible advantageous asset location strategies.
Plan Your Year-End Bonus: Expecting a bonus? Defer extra income to next year if it will put you in a lower tax bracket, or boost retirement savings now to reduce current taxable income.
Explore State-Specific Benefits: Investigate local tax credits or deductions that could apply to you, like those for energy upgrades, educational expenses, or 529 plan contributions.
Update Your Estate Plan: Beyond financial adjustments, ensure your estate plan is current. This vital, non-financial step confirms that your directives for asset distribution, guardianship, and healthcare are clear and enforceable, safeguarding your family’s future.

Navigating year-end financial decisions is a substantial task, given the complex interplay of taxes, investments, and personal financial goals.

Whether it’s maximizing your retirement contributions, optimizing your investment strategy through tax-loss harvesting, or planning for future tax changes, each decision should be made with a comprehensive understanding of your overall financial picture.

Remember, the end of the year is not just a deadline but an opportunity to lay a solid foundation for the year to come.

If you’re unsure about the best steps to take or how these strategies might apply to your unique financial situation, we at Cogent Strategic Wealth are ready to assist you.

Our team excels in crafting personalized, evidence-driven financial plans that align with your life goals and financial aspirations.

Don’t navigate these decisions alone; let us help you make this year-end one that propels you toward a more secure and prosperous future.

If you are a high-achieving professional or family who has $3 million or more in investable assets, contact us today to schedule a cogent conversation and begin your journey towards a more financially sound tomorrow.

For informational and educational purposes only and should not be construed as specific investment, accounting, legal or tax advice. Cogent Strategic Wealth provides investment advice only through individualized interactions. Certain information is based upon third-party data, which may become outdated or otherwise superseded without notice. Third-party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio nor do indices represent results of actual trading. Information from sources deemed reliable, but its accuracy cannot be guaranteed. Performance is historical and does not guarantee future results. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this article.