5 Tips for Helping Clients Reach Their Year-End Financial Goals

I remember when I graduated college and filed my taxes for the first time.

It’s one of those big life milestones.

Unfortunately, after I filed my taxes, I realized I had missed an opportunity to lower my tax bill.

I remember thinking to myself, “Well, if I would have known that, I would have done it.” That’s true for many people.

But talking about money and financial strategies isn’t always at the top of everyone’s priority list at the end of the year.

Especially if you’re distracted by prepping for (and enjoying) the holiday season.

Before the hustle and bustle of the holidays set in, take time to reflect on your clients’ financial situations.

Take the time to sit down with your clients to discuss their portfolios.

Here are five helpful year-end client strategies.

1. Maximize charitable contributions.

The end of the year is popular for individuals to give to charity.

While it’s top of mind for many, this may be a good opportunity to discuss charitable-giving strategies such as qualified charitable distributions, or QCD.

This strategy can help individuals over the age of 70.5 years old take tax-free distributions out of their IRA and satisfy their IRS required minimum distribution, or RMD for the year.

It’s important that the RMD is sent directly to the 501(c)(3) charity of their choosing.

For those clients who are not over 70.5 years old, they could consider opening up a donor-advised fund.

With this option, the individual can receive a tax deduction even if they’re not sure which charity they want to give their money.

Additionally, if you have any individuals with highly appreciated stock inside an employee stock purchase plan or a non-qualified account, a gift to charity may be a good option to consider.

Keep in mind that many employers have charitable-matching programs that could potentially double your client’s generosity.

Lastly, consider potential state and community tax credits available for giving to specific purposes.

Many states and communities have tax-credit programs for giving money to specific charitable causes.

Talk with a local CPA to discuss options that might be available for your clients.

2. Harvest tax losses.

The end of the year typically includes the distribution of capital gains from mutual funds inside non-qualified accounts.

This can sometimes come as a surprise for many clients.