As the year draws to a close, many individuals are looking to make charitable contributions while also considering their financial future. Andre Carter, a financial advisor at Town & Country Bank, offers expert advice on how to navigate end-of-year giving and financial planning for 2025.
"With the end of 2024 approaching, charitable giving can be an excellent way to not only support causes close to your heart, but also maximize your tax benefits, especially with recent changes in tax laws," Andre explains. He recommends strategies such as bunching donations and donating appreciated assets to maximize tax advantages.
For those over 70½, Andre suggests utilizing Qualified Charitable Distributions (QCDs) from IRAs. "You can donate up to $100,000 directly from your IRA to a qualified charity, which counts towards your required minimum distribution (RMD) and reduces your taxable income," he notes.
Balancing holiday generosity with long-term financial stability is a common concern. Andre advises, "Start with a budget specifically for holiday spending. Determine how much you can comfortably afford to spend after considering your essential living expenses and savings goals."
Looking ahead to 2025, Andre emphasizes the importance of reviewing and updating financial goals. "Begin by assessing any significant changes in your life over the past year—this could include a job change, new family members, or even shifts in your financial priorities," he suggests. He also recommends considering economic indicators such as inflation and interest rates when adjusting financial plans.
When it comes to long-term financial stability, Andre highlights three key practices: prioritizing consistent saving, managing debt wisely, and regularly reviewing financial plans. "Automating your savings—whether for retirement, emergencies, or future goals—ensures you're building financial security even during months when spending is higher than usual," he explains.
Andre concludes with an encouraging reminder: "Financial health is a journey, not a destination. It's easy to feel overwhelmed or discouraged if you hit bumps along the way, but small, consistent actions over time can lead to significant long-term gains."
By implementing these strategies, people can approach the new year with confidence in their financial future.
Securities and Advisory Services offered through Osaic Wealth, Inc. Member FINRA/SIPC. Andre M. Carter, Representative. Not FDIC Insured • No Bank Guarantees • May Lose Value • Not a Deposit and Not Insured by any Government Agency • Town & Country Wealth Management and Town & Country Bank are not affiliated with the Osaic Wealth.