Episode 024:
2022 Year-End Financial Planning


Episode 024 Summary:

They say timing is everything, which is most definitely the case when it comes to year-end financial planning. That’s why Host Josh Bretl is bringing us his Top Six End-of-Year Considerations as we bring 2022 to a close. This episode of Retirement Equals Freedom (crisply choreographed with a big assist from Erin!) features a comprehensive “to do” list related to taxes, retirement account distributions and charitable giving that you’ll want to strategize about over the coming weeks (perhaps with help from your qualified advisor).

You’ll also learn why it’s time to look at your Medicare coverage, whether now is the time to “harvest” losing stock picks and when it makes the most sense to opt for a Roth IRA conversion.

The episode wraps with another round of that perennial favorite – Get to Know Josh and Dave – as well as a Dave Relates to Retirees that will leave you with a strange craving for pumpkin spice anything.

And don’t forget a very important year-end homework assignment from Josh that’s applicable to all of us, whatever our stage of life: Get busy dreaming! Each new year brings a chance to build that bucket list!

Stay tuned for frontline reporting on whether Dave is allowed to bring his new water balloon slingshot to the offices of FSR Wealth. And if you haven’t tried it already, click here to get $25 off your first order of Cometeer Coffee. It’s the greatest!

Click here to learn more about or listen to previous episodes of The Retirement Equals Freedom Podcast. And don’t forget to join our private Facebook group, which you can find here. Don’t want to miss a thing? Enter your name and email below to sign up for a weekly email with all the latest!

Need help figuring out your year-end financial planning strategy? Click here to explore the services that FSR Wealth Strategies offers and schedule a discovery call with one of the team’s CPAs. When it comes to living your best life, it’s never too early to get started!

Dave's initial haul of Trader Joe's pumpkin stuff

Dave's initial haul of Trader Joe's pumpkin stuff!

Talking Points

Co-Host Updates: Oh David!, taco-licious tacos, water balloon slingshots, the SAT word plethora – and a nod to Erin, who is the architect behind this info-packed episode!

Here comes year-end planning – and what it means to you!

Why does it happen at the end of the year? Because the horizon for the year ahead starts to come into focus.

Consideration #1: #TaxNerd #Roth Nerd. The end of the year triggers decisions related to tax deadlines and asset allocations. The timing of Roth IRA conversions is determined by factors like the tax impact of adding investment income to current YTD earnings.

Consideration #2: Tax Loss Harvesting is a means of offsetting capital gains on winning stocks by selling off losing stocks, but must happen by the end of the year.

Consideration #3: Required Minimum Distributions must be taken from retirement accounts – in particular inherited IRAs, which must be cashed out in equal increments over a 10-year timeline.

Consideration #4: Figuring out the timing of desired charitable donations to leverage deductions to best advantage. Qualified Charitable Distributions are a great option and two-fer when used to offset Required Minimum Distributions directly from an IRA.

Consideration #5: Medicare enrollment occurs at year-end, so if you’re considering a change of policy, now is the time to do it – especially Part D medication coverage.

Consideration #6: End of year is the best time for retirees to do tax projections to determine the timing of income increases.

End-of-Year Homework Assignment: Starting dreaming about the year ahead! Time to think big and figure out what’s on your bucket list.

What’s on Josh’s Bucket List for 2023? He hasn’t gotten to it yet, but a big home remodel is on the agenda!

Get to Know Josh and Dave (queue the jingle, watch ratings soar): Do you like to plan things out in detail or be spontaneous?

  • Dave: He is not spontaneous, nor a planner. Somewhat in the middle, he is a human pinball, seizing opportunities where he can!
  • Josh: He is a big planner because he believes preparation enables spontaneity!

Dave Relates to Retirees: His end-of-year planning revolves around “harvesting” all things pumpkin spice – from Trader Joe's treats to Starbuck's Pumpkin Spice Lattes – so that he doesn’t run out. Makes sense, says Josh. Much as with year-end retirement planning, those strategic purchases of delicious gourd-related products are time-sensitive (if not quite as life-altering or impactful…).

Quotable Quotes

“By the time we get to October or November, we can make a pretty good estimate of what’s going to happen in the last month or so of the year.” ~Josh

“It’s not called ‘beginning of the year planning.’ ” ~Dave

“Money that you have huge gains on … if you’re going to end up spending (it) then we have to find a way to pay the taxes or get it out in the cheapest way possible. So tax harvesting is something you have to do before the end of the year.” ~Josh

“You don’t want to mess around with Required Minimum Distributions, so that’s something we want to make sure we’ve taken care of by year’s end.” ~Josh

“Never give to charity for a tax deduction, but if you’re going to give to charity then make it as tax-advantageous as possible.” ~Josh

“It’s time to start planning your bucket list. Your money is not something you put on the wall – art to look at. It’s there to make your life better. So what are you going to do next year?” ~Josh

“(Life) isn’t like one of my Sleepy Hollow figurines. You don’t just sit there and admire it!” ~Dave

“By knowing what I’m going to be doing, it allows me the freedom to make changes if I want to.” ~Josh

“We’ve always thought of (Josh) as logistically savvy!” ~Dave

“I don’t want a ‘Slumpy Dave’ and I don’t want anyone out there to spend more money on taxes than they have to. You can always double up on the pumpkin next year, but you can’t always double up with year-end planning.” ~Josh

Episode Extras

About your Co-Hosts

A certified public accountant, Josh Bretl has spent the past two decades growing FSR Wealth Strategies into a firm that specializes in tax-focused retirement planning. Because taxes have the single biggest impact on how much you can spend in retirement, Josh is dedicated to developing individualized financial plans that extend and grow his clients’ retirement savings. Based in Elmhurst, Illinois, FSR Wealth strategically preserves and maximizes resources through tax-efficient strategies designed to fulfill retirement dreams.

Apart from producing and co-hosting The Retirement = Freedom Podcast, Josh's longtime friend Dave Schmidt is a content production and marketing adviser to local businesses and nonprofits. He’s also an advocate for t-shirts, all things 90s (especially the music), short walks and long naps. A serial “wallet forgetter,” Dave nonetheless swears that he has picked up the check on at least one or two meals with Josh over the years. Evidence pending.

Standard Disclaimer:
FSR Wealth Management is a registered investment advisor located in Elmhurst, Illinois. Information and opinions contained in this audio have been arrived at by FSR Wealth advisors. All information herein is for informational purposes and should not be construed as investment advice. It does not constitute an offer, a solicitation or recommendation to purchase any security. FSR is not providing legal, tax, accounting, or financial planning advice in this audio. These views are as of the date of this publication and are subject to change.

Be the First to Know About New Episodes!

We'll email you every Thursday afternoon with details on the new episode! We're also thinking of producing exclusive content just for our podcast email club. You definitely don't want to miss out!

"*" indicates required fields