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cover of episode Jean Chatzky’s Money Moves To Make Before The End Of The Year

Jean Chatzky’s Money Moves To Make Before The End Of The Year

2024/12/20
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HerMoney with Jean Chatzky

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Jean Chatzky: 鉴于2024年股市大幅上涨,投资组合可能因科技股的强劲表现而失衡,增加了风险。建议进行再平衡,出售部分高收益资产,购买表现欠佳的资产,以降低风险,并为市场下行做好准备。如果您的资金在目标日期基金或托管账户中,则可能已自动进行再平衡,但仍建议检查。 此外,应充分利用现金,选择高收益储蓄账户、定期存款或年金,以获得高于平均银行储蓄账户利率的回报。目前市场上仍有高收益储蓄账户、定期存款和年金产品,利率在4%-5%左右,建议在利率进一步下降前选择合适的理财产品。 对于73岁或以上人士,务必在年底前提取退休账户的最低必需提款额(RMD),否则将面临25%的罚款。首次提取RMD者可在次年4月前完成。 根据个人税收情况,Roth转换可能对减少未来的最低必需提款额或遗产规划有利。虽然目前降低税率的可能性较大,但Roth转换仍可能对希望缩减未来最低必需提款额或为继承人留下遗产的人们有益。 定期检查和更新受益人信息至关重要,因为退休账户和保险单的受益人指定会覆盖遗嘱。家庭状况发生变化(例如结婚、离婚、死亡或出生)时,应及时更新受益人信息,并指定继承人。同时,建议每三年至少审查一次整体遗产规划。 此外,可以考虑进行年度赠与,在生前将部分资金赠予继承人,而不是等到去世后。这需要与税务顾问和理财顾问讨论,以确定资金在生前或身后对继承人的帮助更大。 最后,建议为529教育储蓄计划缴款,以享受税收优惠。即使孩子最终不去上大学,根据SECURE法案,最多可将35,000美元转入孩子名下的Roth IRA。同时,应利用税收损失抵扣来抵消资本收益,并降低应税收入。

Deep Dive

Key Insights

Why is rebalancing your investment portfolio important at the end of the year?

Rebalancing is crucial because gains in tech stocks may have skewed your asset allocation, increasing risk. By selling some gains and buying underperforming assets, you protect your portfolio from potential market dips.

What are some high-yield savings options available in 2024?

High-yield savings accounts offer around 4% interest, with options like CIT and Everbank. One-year CDs from America First Credit Union pay 4.65%, and three-year non-retirement annuities can yield up to 5.5%.

What are the consequences of not taking required minimum distributions (RMDs)?

Failing to take RMDs results in a 25% penalty on the amount you should have withdrawn. This can be a significant financial hit, so it's essential to ensure RMDs are taken before the year ends.

Why might Roth conversions still be beneficial in 2024?

Roth conversions can help reduce future RMDs, benefit heirs, or provide a mix of Roth and traditional assets in retirement. Even with stable tax rates, they remain a strategic move for long-term financial planning.

What should you consider when reviewing your beneficiaries?

Reviewing beneficiaries ensures that life changes like marriage, divorce, or births are reflected in your estate plan. Beneficiary designations on retirement accounts and insurance policies override wills, so updates are critical.

How can gifting during your lifetime benefit your heirs?

Gifting can help your heirs achieve milestones like buying a first home or funding a major expense. It ensures your money is used when it can make the most impact, rather than waiting until after your death.

What is tax loss harvesting, and why is it important?

Tax loss harvesting involves selling underperforming investments to offset capital gains and up to $3,000 in ordinary income. This strategy reduces your tax liability by utilizing losses in your portfolio.

What are the benefits of contributing to a 529 college savings plan?

Contributions to a 529 plan can grow tax-free and be withdrawn tax-free for qualified educational expenses. Additionally, up to $35,000 can be rolled over to a Roth IRA if the funds aren't used for college.

Chapters
This chapter emphasizes the importance of portfolio rebalancing after a year of significant market gains, particularly in tech stocks. It highlights the increased risk of uneven asset allocation and the need to readjust for potential market shifts. The exception is for those with target-date or managed accounts.
  • Significant gains in the stock market in 2024 were uneven, concentrated in tech stocks.
  • Rebalancing involves selling high-performing assets and buying underperforming ones to reduce risk.
  • Those with target-date or managed accounts likely have automatic rebalancing.

Shownotes Transcript

As 2024 comes to a close, it’s time to take control of your money and set yourself up for an even better 2025. How to do it? We’ve got nine actionable steps from HerMoney CEO Jean Chatzky. From rebalancing your investment portfolio after a booming stock market year, to making sure your cash is earning its keep in high-yield savings accounts, we share how to optimize your money. 

Takeaways:

  • Gains in tech stocks may have caused your asset allocation to shift, increasing risk. Rebalancing protects you if the market dips.

  • Shop for high-yield savings accounts, CDs, or annuities with rates around 4-5% before rates drop further.

  • Offset capital gains by selling underperforming investments.

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