facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
End of the Year Money Moves in 2022 Thumbnail

End of the Year Money Moves in 2022

What has changed for you in 2022?

For some, this year has been as complicated as learning a new dance. Did you start a new job or leave a job behind? That’s one step. Did you retire? There’s another step. If notable changes took place in your personal or professional life, then you may want to review your finances before this year ends and 2023 begins. Proving that you have all the right moves in 2022 might put you in a better position to tango with 2023.

Even if your 2022 has been relatively uneventful, the end of the year is still an excellent time to get a jumpstart on 2023 and make sure you are best positioned to begin the new year on the right financial foot. 

Do you engage in tax-loss harvesting?

Tax-loss harvesting is the practice of taking capital losses  to manage capital gains. If your losses exceed your gains, up to $3,000 of losses can be used to offset ordinary income, with the rest carrying forward to offset capital gains in future years. Consult a tax or financial professional for further guidance on how to engage in this strategy.1  

Do you want to itemize deductions?

You may want to take the standard deduction for the 2022 tax year, which has risen to $12,950 for single filers and $25,900 for joint. If you think it might be better for you to itemize, now would be a good time to gather the receipts and assorted paperwork.2

Are you thinking of gifting?

How about donating to a qualified charity or non-profit organization before 2022 ends? Your gift may qualify as a tax deduction. For some gifts, you may be required to itemize deductions using Schedule A.3

While we’re on the topic of year-end moves, why not take a moment to review a portion of your estate strategy? Specifically, take a look at your beneficiary designations. If you haven’t reviewed these designations for some time, double-check to see that these assets are structured to go where you want them to go in the event that you pass away. Lastly, look at your will to make sure it is still valid and up-to-date.   

Check on the amount you have withheld. If you discover that you have withheld too little on your W-4 form so far, you may need to adjust this withholding before the year ends.

What can you do before ringing in the New Year? 

New Year’s Eve may put you in a dancing mood, eager to say goodbye to the old year and welcome 2023. Before you put on your dancing shoes, though, make sure you speak with your financial or tax professional. Do it now, rather than in February or March. Small end-of-year moves that you do now will decrease or even eliminate the amount you'll have to do later. 

Spiritual Application

As the old saying goes, "an ounce of prevention is worth a pound of cure." There is little more satisfying than seeing a potential issue that would have normally grown into a bigger problem only fizzle away because of proper planning and preparation. In a spiritual sense, taking the time to align our own goals and finances with what how God would like us to steward them can reap some natural rewards. Case in point - are you considering giving a year end gift to your church or maybe another ministry-aligned organization? Did you know that a gift of appreciated securities from your non-retirement investment portfolio is usually a better after-tax gift than just cash? 

Job 11:12-13(NLT) says, "An empty-headed person won’t become wise any more than a wild donkey can bear a human child. If only you would prepare your heart  and left up your hands to him in prayer!" The more intentional we are with not only our natural finances, but our conversation and fellowship with God, the more he will lead us into what he desires for us to do with every area of our life. And the rewards found in proper relationship with God are more than any natural investment will ever produce. 

Evergreen Financial Group is a Fee-Only Financial Planning and Investment Firm located in Billings, MT serving clients in Montana, Wyoming and virtually across the country. Evergreen Financial Group specializes in working with Christian families, including Young Professionals, Current and Future Retirees and Church Staff Members.

  1. https://www.investopedia.com/articles/taxes/08/tax-loss-harvesting.asp
  2. https://www.investopedia.com/terms/s/standarddeduction.asp
  3. https://www.irs.gov/forms-pubs/about-schedule-a-form-1040

This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Evergreen Financial Group, LLC is a registered investment advisor offering advisory services in Montana and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. This communication is for informational purposes only and is not intended as tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon as the sole factor in an investment making decision. All opinions and estimates constitute Evergreen Financial Group’s judgement as of the date of this communication and are subject to change without notice. Evergreen Financial Group does not warrant that the information will be free from error. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information is at your sole risk. Under no circumstances shall Evergreen Financial Group be liable for any direct, indirect, special or consequential damages that result from the use of, or the inability to use, the information provided herein, even if Evergreen Financial Group or a Evergreen Financial Group authorized representative has been advised of the possibility of such damages. Information contained herein should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.