End of 2023 Financial Checklist

Presented by Marc Aarons

I hope you and yours are doing well! As the end of the year closes in, now is a great time to take inventory of your finances and make a list of steps you need to take to end the year on a strong financial note. (Not to mention, it gives you a few minutes away from a house full of holiday guests!)

To help, I thought I’d share a few tips on where to focus your efforts as you wrap up the year:

1. Review your financial goals – Take time to reflect on your financial goals and assess your progress. Have you met the goals you set at the beginning of the year? If not, what steps can you take now to catch up?
2. Assess your expenses – Review your spending habits over the past year; try using a budgeting software to see your actual expenses and identify areas where you need to cut back or adjust. Looking at the data will help you create a more efficient and realistic budget for the coming year.
3. Maximize retirement contributions –
   1. If you haven’t already done so, consider contributing the maximum amount allowable to your retirement accounts. This will reduce your taxable income and help you build a healthy retirement nest egg.
4. Take advantage of tax-saving strategies – Explore all available tax deductions and credits. You may want to consider making charitable donations before the end of the year to reduce your tax liability. Remember, it’s best to consult a tax professional for personalized advice.
5. Plan for tax season – Gather and organize all your financial and tax-related documents to make the tax-filing process smoother. Start researching potential tax changes that may affect you in the upcoming year.
6. Review insurance coverage – Evaluate your insurance policies, including health, home, auto, and life insurance. Let your agent know of any significant life events or adjustments to ensure you have appropriate coverage and aren’t paying for frivolous extras.
7. Set goals for the upcoming year – Whether saving for a down payment, paying off debt, building an emergency fund, or budgeting for a major purchase, having a plan will help you stay on track.

Remember, staying financially healthy is an ongoing process that requires regular monitoring and frequent adjustments. If you need help or have questions, I’m here to help however I can, so don’t hesitate to give me a call or shoot me an email.

Happy holidays!

Marc Aarons may be reached at 714-887-8000 or marc@ocmoneymanagers.com

www.ocmoneymanagers.com

This communication is from Money Managers, Inc.; a Securities and Exchange Commission registered investment advisor.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results.  Investments involve risk and are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.

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Helpful tips for tax time.

 Provided by Marc Aarons at Money Managers, Inc.

 Being a small-business owner isn’t easy. After all, balancing payroll, managing employees, drawing up marketing plans, and handling the bookkeeping can be stressful! Luckily, the Internal Revenue Service (I.R.S.) allows small-business owners to take some surprising deductions, which may help come tax time. Read on to learn more.

Remember, the information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult a professional with legal or tax expertise for specific information regarding your individual situation.

Employ your personal cell phone. The I.R.S. allows small-business owners to deduct the cost of the time spent on business calls made while using their personal mobile device. The key is to make sure you keep an itemized monthly phone bill for your records.¹ Assuming an $80-per-month phone bill and a 50% deduction, you may be able to deduct $480 from your state and federal tax returns! The best way to track your business call time? Try a using separate number for your business, which automatically routes to your phone. This way, it will be easy to see your business versus personal phone usage.

Put your home to work. If you use part of your home for business, you may be able to deduct those expenses. These can include a portion of your home as well as insurance and utilities.

However, there are some conditions that must be met to claim these deductions. First, the portion of your home you claim for business use must be exclusively for your company. Second, the part of your home used by your company must be either your principal place of business, a place to meet with customers, or a separate structure used in connection with your business.²

Hold your meetings over a meal. If you and your employees have meetings, consider having them over a meal. As long as the dining expenses are reasonable and you’re eating with an employee to discuss business-related items, you are permitted to deduct 50% of the meal cost.³

This may seem like a small advantage, but consider this: if you manage to have a “business lunch” every day for $10, you can deduct $5 of that expense, which could amount to over $1,200 a year in claimable deductions!

Deduct and fly for free. Many small-business owners believe they can reduce travel costs by using the miles they earn through a qualifying credit card to pay for their next business flight. Since your travel costs for business may be fully deductible, however, why not put those miles to use in your personal life instead? ⁴

Depending on your air-travel expenses, your income tax rate, and the number of miles you may be able to accrue in a year, this could save you thousands of dollars in expenses
Marc Aarons  may be reached at (714) 887-8000 or Marc@OCMONEYMANGERS.com

^{MMI Disclosure}   

 ^{This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.}

^Citations.

^{1 – www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses#what [6/03/2019]}

^{2 – www.irs.gov/pub/irs-pdf/p535.pdf [6/03/2019]}

^{3 – www.irs.gov/newsroom/irs-issues-guidance-on-tax-cuts-and-jobs-act-changes-on-business-expense-deductions-for-meals-entertainment [6/03/2019]}

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