Expert Tips For Your End-Of-The-Year Budget

Diazo Wealth Group at EK Riley Investments, LLC

10120 S. Eastern Ave. Suite 236, Henderson 

702.745.1800, Justin.Long@DiazoWealth.com


1. Check on Your Retirement Contributions

While you can contribute to both Traditional IRA and Roth IRA up to the 15th of April the following year, if you are enrolled in a 401(k)/403(b)/457 type employer-sponsored plan, all of these have different capabilities. For those under 50 years old, the limit for 2019 is $19,000, and for those over 50, they can contribute an additional $6,000 as a catch-up contribution. For those unable to max out the contribution, the main focus should be, at the very least, to ensure that you are taking advantage of any match that is available through the employer-sponsored plan.  

2. Use All of Your Health Accounts Available to You

There are two main options for health insurance and health spending accounts: Flexible Spending Accounts and Health Savings Accounts. Health FSA contributions are limited by the IRS to $2,700 each year (up from the 2018 limit of $2,650). The limit is per person; each spouse in the household may contribute up to the limit. Your employer may elect a lower contribution limit. FSA spending accounts need to be liquidated and used on health care expenses by the end of the calendar year. The other option is a Health Savings Account. For single-only coverage, the limit is increasing by $50, bringing the new 2019 limit to $3,500, and for a family, the limit is increasing by $100, bringing the 2019 limit to $7,000. Again, for taxpayers over the age of 50, there are additional contributions available, which take the totals to $4,500 for an individual and $9,000 for a family. Maximizing these accounts may also create tax deductions that can reduce your overall tax liability.  

3. Look at Tax-Loss Harvesting Opportunities

By taking a look at your positions and discussing them with your adviser, you can take advantage of where your accounts are at the end of the year and potentially leverage the tax potential by harvesting losses and using any losses to offset gains with other investments. Focusing on capital gains distributions and whether holdings are considered long- or short-term can impact your tax situation. This can create tax alpha and improve potential performance. Please consult with your tax professional to ensure these apply to your situation and how these tactics could benefit your situation.  

4. Take Care of Yourself

Get healthy, gain knowledge wherever you can and create a positive environment to grow your career or your business. Align yourself with an adviser who has goals in line with yours and who has a fiduciary duty to you. By investing in yourself, your health and your education while aligning yourself with like-minded professionals, you can set yourself up for a fantastic 2020.

Disclosure: Registered Representative and Investment Adviser Representative of and offers securities and advisory services in states where registered through E.K. Riley Investments, LLC. Member FINRA and SIPC, Broker Dealer and an SEC Registered Investment Adviser. Diazo Wealth Group is a division of E.K. Riley Investments, LLC

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