As the year draws to a close, it's a bustling time filled with celebrations and gratitude. In the midst of enjoying the holidays with family and friends, it's easy to overlook our financial well-being. Before you raise your glass to toast the new year, here are a few important financial tips to consider that can help set you up for success in the year ahead. 

Charitable Distributions and Giving

The holiday season is a time for giving, including gifts to our favorite charities and non-profit organizations.  Smart asset management can help you maximize your gifting while assisting with your tax picture.  Two options to consider for charitable gifts are QCDs and In-kind Gifting.

Qualified Charitable Distributions (QCDs) are donations made directly from your Individual Retirement Account (IRA) to the charitable organization of your choice.  This strategy is available to you after you have reached 70 ½ years of age.  Typically, distributions from IRAs are taxable transactions, however when you properly execute a Qualified Charitable Distribution, you are able to give money from your IRA without owing income tax.   This can be most effective for individuals who claim a standard deduction on their income taxes.  

In-kind gifting of appreciated assets allows individuals to make tax advantaged donations to charities and non-profits of their choice.  This strategy can allow donors to give the full value of the security without incurring capital gains taxes.  Gifts made in this manner may also assist with reducing income tax.  If this strategy sounds like something that you may be interested in, be sure to inquire about Donor Advised Funds (DAF) that can amplify your charitable intent.  

Tax Loss Harvesting

One of the least appreciated, but most valuable services experienced advisers offer is on-going tax loss harvesting.  Selling investments may result in tax consequences.  By strategically selling investments that have both gains and losses you can offset taxes in the current year and throughout your lifetime.  The end of the year is a great time to assess what tax implications your portfolio has already incurred, and if there are any tax loss harvesting opportunities to offset taxes due. 

Rebalancing

Are you rebalancing your portfolio to ensure market moves throughout the year haven’t expanded your risk profile or caused you to leave money on the table? Similar to how many Americans use January 1^st for resolutions and resetting, rebalancing adjusts your investment allocation to match your risk tolerance and investment style.  Over time, your investment allocation will shift, and it is important we keep an eye on things to ensure it has not drifted out of alignment.

We hope these tips assist you in addressing your end-of-year financial needs, allowing you to fully enjoy the holiday season. At Veridian Capital Partners, our dedicated team is committed to providing exceptional service and support. We would be delighted to discuss your financial goals and explore how we can best meet your needs.

Veridian Capital Partners is a Registered Investment Adviser. This material has been provided for informational purposes only and does not constitute either investment, tax or legal advice. Although Veridian Capital Partners goes to great lengths to ensure information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or investment professional who is knowledgeable of your specific situation. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. Advisory services are only offered to clients or prospective clients where Veridian Capital Partners and its representatives are properly licensed or exempt from licensure. No advice