Friends,
We began this year by referencingkey financial areas we believe should be revisited in the New Year. In this blog edition, we added more in-depth thoughts/questions on insurance, tax, and investment strategies as they relate to you for 2025. We’ll touch on a few more topics next week.
Life Insurance
- Do you have enough life insurance? Do you have too much?
- Too much life insurance coverage or an unsuitable policy can lead to you paying higher premiums. A laddered coverage approach could be something for you to explore.
- If you’re a business owner, have you reviewed and updated any life insurance policies owned for the benefit of your business or partners?
- When was the last time you had an insurance review?
- Insurance should be reviewed on an annual basis and examined more closely if a life-changing event has occurred.
Income Tax Planning
- Did your income significantly change last year, or will it change this year?
- Were there material bonuses or partnership distributions that came in 2024 that could continue in 2025?
- Do you plan on making charitable contributions?
- Cash contributions to qualified charities could allow you to deduct up to 60% of your Adjusted Gross Income (AGI).
- A corporation may deduct qualified contributions up to 25% of its taxable income.
- A qualified contribution must be a cash contribution made to a qualifying organization and made during the calendar year for which the deduction is made.
- Are you planning to have your CPA run projections for 2025 income tax planning?
- It is important to identify tax planning opportunities soon in case there are actions that need to be taken now. Waiting too long could prevent you from seeing the full benefit of those opportunities.
- Would 2025 be a good year for a Roth Conversion?
- Roth conversions can be a good option to implement in a year with less income than in previous years.
Investment Strategies
- Are you comfortable with your current investment strategy?
- Markets change, and so do your views on them. Making sure you have a well-thought-out strategy can help you achieve your future goals.
- Financial goals, return objectives, risk tolerance, and asset allocations should all be viewed and updated.
Let us know if we can help you dig deeper into any of these topics!
Matt and Andrew