Maximizing Your Financial Strategy: Experts Share Year-End Checklist
In a recent segment of "Mesirow Monday" on WGN's "Your Money Matters" with Jon Hansen, Mesirow Wealth Advisor Jennifer Gartenberg presented a crucial year-end checklist aimed at optimizing financial strategies tailored for individuals and families. As the holiday season approaches and market performances strengthen, Gartenberg highlighted three vital sectors for year-end financial planning: maximizing charitable contributions, reviewing and rebalancing asset allocations, and making the most of 529 college savings plans.
Navigating charitable donations can be particularly strategic at year-end, especially with upcoming tax law changes. Gartenberg outlined three effective ways to give:
It’s important to note that starting January 1, 2026, individuals donating income will not receive tax deductions for the first 0.5% of their income donated to charities. Thus, for someone earning $200,000, the first $1,000 in donations will not be tax-deductible.
With the market posting strong gains, it’s critical to reassess your portfolio. Strong performance might shift your intended investment mix, potentially moving your asset allocation from a target distribution of 80% stocks and 20% bonds to 90% stocks and 10% bonds.
Gartenberg recommends reviewing all accounts—including 401(k)s, IRAs, joint accounts, and trusts—and considering the following:
As one of the smarter gifts during the holiday season, contributing to a child's 529 college savings plan can yield significant benefits, especially for Illinois residents who can also receive a state tax return on contributions. Gartenberg emphasized that friends and family can contribute to a child's education fund, thus making it not only meaningful but also financially sound.
Gartenberg urges individuals and families to work closely with a Wealth Advisor to align their year-end strategies with their specific goals and to navigate the regulatory changes effectively. Taking these actionable steps now can empower families to seize opportunities and start the new year with a firm financial foundation.
Listeners interested in additional insights are encouraged to visit WGN Radio 720 for the full range of year-end financial tips provided by Gartenberg. Known for its comprehensive approach to wealth management, Mesirow aims to connect clients with what matters most—today and for future generations.
Founded in 1937, Mesirow is an independent and employee-owned financial services firm. Headquartered in Chicago, it prides itself on offering personalized strategies to help clients achieve their financial goals while acting with social responsibility. Through various capabilities, including private capital and advisory services, Mesirow is dedicated to investing in areas that resonate with both clients and communities. Moreover, it has received accolades, including recognition as one of the Best Places to Work in Chicago multiple times. For more information, visit Mesirow’s website.
1. Charitable Giving: Impact and Tax Benefits
Navigating charitable donations can be particularly strategic at year-end, especially with upcoming tax law changes. Gartenberg outlined three effective ways to give:
- - Cash Donations: Direct donations provide immediate relief to charities but may not leverage maximum tax benefits compared to other methods.
- - Appreciated Stock: Donating stock that has appreciated in value allows donors to avoid capital gains tax while still claiming a deduction equal to the stock’s market value. This can be incredibly beneficial during periods of high market performance.
- - Qualified Charitable Distributions (QCDs): For those aged 70½ or older, directing funds from an IRA to a charity can effectively lower taxable income.
It’s important to note that starting January 1, 2026, individuals donating income will not receive tax deductions for the first 0.5% of their income donated to charities. Thus, for someone earning $200,000, the first $1,000 in donations will not be tax-deductible.
2. Asset Allocation: Rebalance After Market Gains
With the market posting strong gains, it’s critical to reassess your portfolio. Strong performance might shift your intended investment mix, potentially moving your asset allocation from a target distribution of 80% stocks and 20% bonds to 90% stocks and 10% bonds.
Gartenberg recommends reviewing all accounts—including 401(k)s, IRAs, joint accounts, and trusts—and considering the following:
- - Rebalancing Your Portfolio: To maintain the desired level of risk, consider selling certain assets that performed well and reallocating those profits into underperforming areas or safer investments.
- - Tax Timing: Gains realized before year's end are taxed in the subsequent April, while deferring until January could allow for some tax advantages, although market conditions may shift.
3. 529 College Savings Plans: A Meaningful Holiday Gift
As one of the smarter gifts during the holiday season, contributing to a child's 529 college savings plan can yield significant benefits, especially for Illinois residents who can also receive a state tax return on contributions. Gartenberg emphasized that friends and family can contribute to a child's education fund, thus making it not only meaningful but also financially sound.
- - Gift Options: Illinois offers 529 plans like Bright Directions and Bright Start, which facilitate contributions easily, allowing families to pool resources towards future education expenses.
Gartenberg urges individuals and families to work closely with a Wealth Advisor to align their year-end strategies with their specific goals and to navigate the regulatory changes effectively. Taking these actionable steps now can empower families to seize opportunities and start the new year with a firm financial foundation.
Listeners interested in additional insights are encouraged to visit WGN Radio 720 for the full range of year-end financial tips provided by Gartenberg. Known for its comprehensive approach to wealth management, Mesirow aims to connect clients with what matters most—today and for future generations.
About Mesirow
Founded in 1937, Mesirow is an independent and employee-owned financial services firm. Headquartered in Chicago, it prides itself on offering personalized strategies to help clients achieve their financial goals while acting with social responsibility. Through various capabilities, including private capital and advisory services, Mesirow is dedicated to investing in areas that resonate with both clients and communities. Moreover, it has received accolades, including recognition as one of the Best Places to Work in Chicago multiple times. For more information, visit Mesirow’s website.
Topics Financial Services & Investing）
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