Year-End Considerations for High Net-Worth Individuals

Presented by Marc Aarons

I am reaching out as we near the end of the year to share some important considerations for high-net-worth individuals.

While not all-inclusive, this list will provide a starting point to help you consider your situation and needs. As always, if one or more is a source of pause or concern, I’m just a phone call or email away. Your financial well-being is my top priority now and always.

• Tax planning: Now is an ideal time to review income, capital gains, and losses to optimize tax strategies. This may include harvesting tax losses, maximizing contributions to tax-advantaged accounts, and exploring charitable giving for tax benefits.
• Portfolio review: Meet with a financial planner to conduct a review of your investment portfolio. Assess performance, risk, and current alignment with financial goals. Rebalance if necessary to maintain the desired asset allocation.
• Estate planning: Review and update estate plans, including wills, trusts, and beneficiary designations. You may also want to consider strategies for reducing estate taxes.
• Charitable giving: Explore opportunities for charitable giving, which can provide tax benefits and align with philanthropic goals. Consider creating or contributing to donor-advised funds or private foundations. Remember, in 2023, the qualified charitable deduction allows individuals age 70½ or older to donate up to $100,000 directly from their IRAs to qualified charities tax-free.
• Asset protection: Evaluate strategies to safeguard wealth from potential risks and liabilities. This may include reviewing insurance coverage, considering various types of trusts, and implementing legal protections.
• Tax-efficient investments: Explore tax-efficient investment options, such as municipal bonds and tax-managed funds, to minimize tax liability on investments.
• Review debt: Review mortgages, loans, and lines of credit and consider refinancing options if rates make sense.
• Education funding: If applicable, review and contribute to education accounts for children or grandchildren, such as 529 plans. Keep in mind the annual contribution limit for 529 plans is $17,000 per contributor in 2023.

I hope you found this information helpful — feel free to pass it along to others who may benefit, and, in the meantime, have a wonderful holiday.

While we’ll be taking a few days off around the holidays, some of these matters are time-sensitive, so let me know if I can help in any way. I always have time for you.

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.