As the year comes to a close, it’s the perfect time to evaluate your finances, make strategic decisions, and plan ahead to ensure your financial goals stay on track, at B.A. Schrock, we know that year-end planning is one of the most impactful times of the year for both tax efficiency and retirement readiness.
In our latest two-part video series, financial experts Ben Schrock and Dan Oaklief break down the key considerations and strategies you should know as we wrap up this year and prepare for 2025. With potential tax law changes on the horizon, their insights can help you make informed choices for your year-end planning. Here’s what you’ll discover in each part:
Part 1: Social Security and Important Year-End Adjustments
In the first video, Ben and Dan dive into recent updates that directly affect Social Security, an area that’s especially important for those nearing retirement. This part covers:
- Cost of Living Adjustments (COLA)
- If you’re collecting or close to collecting Social Security, you know how cost-of-living adjustments can impact your monthly benefit. Ben and Dan discuss what this year’s COLA means for your planning and how you might want to approach Social Security with these adjustments in mind.
- Earnings Limits & the Windfall Elimination Provision (WEP)
Important Note: We are keeping our eye on the Social Security Fairness Act,
and will provide an update when this bill is signed into law.
The WEP can affect your Social Security benefits if you also have pension income from non-Social Security-covered employment. Understanding how this impacts your benefits—and how to plan around it—can make a significant difference in your retirement income.
- Upcoming Changes in Taxation of Social Security
Current tax rates are set to revert to previous levels in 2025, which could increase the taxability of your Social Security benefits. Ben and Dan explain why these shifts matter and how they could affect the net amount you receive.
Key Takeaway: Social Security is an essential income stream for many retirees. By staying informed on the latest changes and planning accordingly, you can make the most of this benefit and feel prepared for the upcoming tax rate changes.
Part 2: Practical Tax Strategies for the Year’s End
In the second video, Ben and Dan shift focus to tax planning strategies that can help you save as we close out the year. With substantial tax changes expected, this session focuses on ways to optimize your tax situation before those changes take effect in 2025. Key topics include:
- Roth Conversions for Tax Efficiency
Converting from a traditional IRA to a Roth IRA can be a potential strategy for those looking to manage future tax obligations. Ben and Dan walk you through the benefits of a Roth conversion and how to determine if it’s right for you, especially given the potential tax rate increases.
- Tax-Loss Harvesting
In the context of recent market fluctuations, tax-loss harvesting can be considered as a strategy to potentially offset gains by selling investments at a loss. Ben and Dan share how this strategy can reduce your taxable income and explain the practical steps to take if you decide to leverage this approach before the year’s end.
- Additional Year-End Moves for Tax Efficiency
Ben and Dan discuss other moves you can make, such as charitable contributions and maximizing retirement plan contributions. These strategies can help lower your taxable income, positioning you for a more tax-efficient year ahead.
Key Takeaway: Proactive tax planning can save you money and give you peace of mind. With upcoming changes in tax law, now is the time to implement strategies that could reduce your 2024 tax bill and prepare you for 2025.
Get Your Free Year-End Tax Planning Guide
To help you further, we’re offering a Complimentary Year-End Tax Planning Guide that includes tips, checklists, and detailed explanations of tax-saving strategies you can implement right now. This guide can help you stay organized and ensure you’re covering all the essential areas of year-end planning.
Interested in Personalized Guidance? Schedule a Consultation
For those who aren’t yet clients, we invite you to take this opportunity to schedule an initial consultation with us. Our team can help you assess your unique financial situation, discuss potential tax-saving opportunities, and create a plan that works for your goals and future.
Book Your Complimentary Consultation Today
This is a pivotal time to take control of your financial future. This video series, free guide, and personalized consultation aim to equip you with the knowledge and tools to make informed year-end decisions. We’re here to support you every step of the way!
