Look, I'm not here to be your Tony Robbins or that relative who suddenly becomes Warren Buffett after three eggnogs at Christmas dinner. But while everyone's fighting over the last PS5 at Target, there are some actual money moves worth looking at before we kiss 2024 goodbye.
And no, this isn't another "new year, new you" pep talk. I'll spare you the vision board workshop.
Here's the deal: December's got some genuine "use it or lose it" opportunities that your future self will either thank you for or wish you'd known about. Let's cut through the noise and look at some real stuff:
1. The "Burning a Hole in My Pocket, My FSA Money" Situation
Got a Flexible Spending Account through work? Check that balance. If you're sitting on unused FSA money, you might be about to donate it back to your employer (weird flex, but okay). Some companies let you roll over $640, but the rest vanishes faster than your aunt's Christmas cookies. Time to stock up on contact lenses or finally get that dental work done.
2. The "Tax Bracket Limbo" Game
If you're hovering around $191,950 (single) or $383,900 (married), you're playing in the 24% vs. 32% tax bracket playground. That's like an 8% difference on every dollar over the line. Might be worth talking to your boss about pushing that year-end bonus to January, or accelerating some tax deductions. Not exactly Christmas miracle territory, but hey, money's money.
3. The "Investment Loss Harvest" Play
Got some losers in your investment portfolio? (Don't we all?) December's your last chance to sell them and harvest up to $3,000 in losses against your regular income. Plus, anything over that carries forward to next year. It's like getting a consolation prize for your bad stock picks.
4. The "401(k) Last Call" Sprint
If you're not maxing out your 401(k) but could swing it, December's your last chance to bump up those contributions before the bartender yells "last call." For 2024, you can put in up to $23,000 (or $30,500 if you're 50+). And here's the thing - if you get a company match, not maxing that out is like leaving free money on the table. It's basically the financial equivalent of finding out there was a second sheet of wrapping paper underneath right after you threw away all those weirdly-shaped scraps.
Look, I get it. Nobody wants to think about tax brackets while trying to figure out if their kid really needs both a Nintendo Switch AND a PS5. But spending an hour looking at this stuff now beats the heck out of that gym membership you'll buy in January and forget about by February.
Besides, wouldn't it be nice to start the new year already ahead of the game instead of making promises we all know have the shelf life of leftover turkey?
Just don't wait until New Year's Eve. That's amateur hour, and by then, you'll probably be too busy pretending to know the words to Auld Lang Syne anyway.
Obligatory "talk to your financial advisor" note: This is just friendly chatter, not official advice. Your situation might be totally different so it's important to consult your professional before implementing anything specific.
Advisory services are offered through Carlson Planning Company, LLC; an investment advisory firm registered and domiciled in Massachusetts. Follow-up or individualized responses to consumers in a particular state by our firm in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption. For information concerning the status or disciplinary history of a broker-dealer, investment advisor, or their representatives, a consumer should contact their state securities administrator.
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