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Three Financial Areas to Evaluate Before Year-End

magnifying glass over "2020"There are now about two months left of 2020, which means re-evaluating your finances before the year ends. With the historic election winding down and COVID-19 continuing to take the main stage in the news these days, it can be easy to get stressed out with all of the “noise” and change around us. However, in the midst of this noise, try and stay focused and use the (perhaps) slower times around the holidays to relax and take action on a few prudent financial matters in your life.

The next four years will likely provide us with new opportunities as well as some potential challenges. Knowing this, it’s important to concentrate on where you stand now and the opportunities that exist today to improve your family’s finances. I’ve compiled a list of three financial areas to evaluate in the remaining months of 2020 that I believe will help you and your family.

Low interest rates

Interest rates are crazy low, which is the perfect time for refinancing! If you have a mortgage on your house or a rental house, look into refinancing it. Additionally, look into refinancing a loan on your truck or car. If you have a business with a loan on a piece of equipment or property, those may also qualify. Bottom line: now is the time to take advantage of lower rates to save you money each month on your payment(s).

compass pointing to "gains"Capital gains and losses

The COVID-19 virus has propelled many businesses (and stocks) to record profits and all time high prices while other businesses have suffered tremendously, some having shuttered their doors completely. During this time, look at your investment portfolio and evaluate your capital gains and losses. Take some investments off the table that have high holdings and where capital gains taxes could be large. Then, sell some other investments that have had a rough year and are at a loss to offset any taxable gains from the high investments. In a perfect world, you could take some profits, sell some losers, and when combined, the losses could offset the gains to eliminate or reduce any negative tax consequences.

filing cabinet zoomed in on "life insurance"Life insurance

It can be hard to make time to review your life insurance, right? I get it, it’s not usually the most exciting thing you could be doing around the holidays. However, put it on your “to do” list. Life insurance rates across the board have declined in recent years, so it’s possible to get the same amount of insurance as you have now with reduced premiums (saving you money).  Or, if you want to continue paying the same premiums as you are currently, you might be able to get a higher amount of coverage. Talk to your Financial Advisor to see if you could take advantage of today’s lower rates.

All in all, if you can make all three of these changes by year-end, I believe that you will have made a large step forward in your finances.

November 2020


Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation along with fees and risks associated prior to making any financial decision. No strategy assures success or protects against loss. Investing involves risk including loss of principal.

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