Your year-end financial checklist
Save on taxes and plan for the future — before the end of December
The following article appeared in the December 13, 2023, edition of The Charlotte Ledger, an e-newsletter with smart and original local news for Charlotte. We offer free and paid subscription plans. More info here.
Local financial advisors dish on 11 money moves to make by the end of 2023; tax-saving strategies you might consider now
by Tony Mecia
The clock is ticking on 2023 — and local financial advisors have some money tips for you to work on before the end of the year.
December is a busy time, of course, but for your finances, it’s a time to make some moves that can help on your taxes and set you up for the future. You might also take the time to reflect on your financial goals and strategies for the new year.
“The end of the year is a natural point to review your finances from the past year and to start planning for the next,” says Matthew Snipes of Topsail Wealth Management.
The Ledger asked seven local financial advisors for their tips and the advice that they’re providing to their clients this time of year. Here are some of the strategies they mentioned most often — along with some details and explanations of why those moves might make sense and for whom:
◼️ Examine your withholding: Sure, you’ll do your taxes next year for 2023. But if you haven’t sent enough to the Internal Revenue Service this year through paycheck withholdings or estimated tax payments, you could be subject to a penalty.
“You can use the IRS Tax Withholding Estimator to see if you’re on track with your withholding,” says Nick Foy, founder of Greenway Wealth Advisors.
◼️ Think about selling loser stocks: If you have stocks, you might consider a tax strategy known as “tax loss harvesting” — finding and selling stocks in your portfolio that have fallen in value since you bought them, then using the money for a different investment. Depending on your financial situation, this could reduce your capital gains taxes in the future.
“To utilize the strategy, you must identify specific lots that are currently underwater,” says Snipes of Topsail Wealth Management. “Selling those lots and buying a similar investment allows you to realize the loss without being out of the market. You’ll want to be careful to ensure it is truly a different investment.”