The end of the year is quickly approaching, and after an unforgettable year we wanted to recap our top 5 blog posts from 2020! Here’s our 5 most read posts from this past year:
Have you wondered if a Roth IRA Conversion will save you more in taxes? 2020 has offered a unique opportunity for some taxpayers to capitalize by making a Roth conversion. This is because the CARES Act allowed for a required minimum distribution holiday in 2020. Thus lowering the required amount many retirees normally have to take from their retirement accounts.
“Everyone has a plan until they get punched in the mouth.” Many investors are sharing Mike Tyson’s sentiment after the worst single day in the stock market since Black Monday.
The short-term losses appear to be a direct result of the COVID-19 pandemic. However, there are typically many factors that lead to bear markets and recessions. Many only become clear in hindsight.
It takes a lot of discipline to stick to an investment strategy that calls for patience while stock prices are falling. The urge to do something, to take action, can be overpowering. Unfortunately, many investors take actions that prove harmful to their wealth like selling stocks at low prices or waiting to invest cash until things look better. Thankfully there are actions you can take during a bear market that will improve your long-term financial situation. One of these is tax loss harvesting.
The CARES Act, passed in response to the Coronavirus Pandemic, brought with it numerous financial planning opportunities. This includes a new deduction to utilize for charitable gifting. In 2020, taxpayers will be able to deduct the first $300 in charitable gifts they make on their 2020 tax return as an above the line deduction – reducing their Adjusted Gross Income.
For 2020, quite a few of the contribution limits have increased. A very good practice is to contribute enough of your salary to receive at least the employer match. Also, pay raises often present an easy opportunity to increase your deferral, while reducing your adjusted gross income.