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Get Financially Fit!

Now's the time to get your portfolio in shape for 2020 taxes - and to start strong in 2021

Article by Chris Weller, Edward Jones

Photography by Provided

Originally published in Midlothian Lifestyle

We’re nearing the end of 2020 – and for many of us, it will be a relief to turn the calendar page on this challenging year. However, we’ve still got a few weeks left, which means you have time to make some year-end financial moves that may work in your favor.

Add to your IRA.  For the 2020 tax year, you can add up to $6,000 to your traditional or Roth IRA, or $7,000 if you’re 50 or older. If you haven’t reached this limit, consider adding some money. You have until April 15, 2021, to contribute to your IRA for 2020, but the sooner you put the money in, the quicker it can work for you. Plus, if you must pay taxes in April, you’ll be less likely to contribute to your IRA then.

See your tax advisor. It’s possible you could improve your tax situation by making some investment-related moves. For example, if you sold some investments whose value increased, you could incur capital gains taxes. To offset these gains, you could sell other investments that lost value, assuming these investments are no longer essential to your financial strategy. Your tax advisor can evaluate this type of move and others to determine those that may be appropriate for you.

Review your investment mix. As you consider your portfolio, think about the events of the past year and how you responded. When COVID-19 hit and markets plunged, did you find yourself worrying about the losses you were taking, even though they were just on “paper” at that point? Did you sell investments to “cut your losses” without waiting for a market recovery? If so, you might want to consult with a financial professional to determine if your investment mix is still appropriate for your goals and risk tolerance, or if you need to make changes.

Think about the future. Are you saving enough for your children’s college education? Are you still on track toward the retirement lifestyle you’ve envisioned? Or have your retirement plans changed as a result of the pandemic? All these issues can affect your investment strategies, so you’ll want to think carefully about what decisions you may need to make.

Looking back – and ahead – can help you make the moves to end 2020 on a positive note and start 2021 on the right foot.


  • Add to your IRA. You have until April 15 to make contributions for the 2020 tax year. The sooner you contribute, the quicker the money can work for you.
  • See your advisor. You might be able to make investment-related moves to improve your tax situation.
  • Review your investment mix to see if it’s still appropriate for your goals and risk tolerance.
  • Review progress on your financial goals.


Contact Chris Weller:

  • Chris Weller