Episode 6: Check Your Year-End List Twice
This episode of "The Wealthiest" podcast, hosted by Brandon Lehman from Annex Wealth Management, continues the discussion on year-end financial planning for wealthy individuals. Here's a summary of the key points covered:
Main Topics:
- Tax Loss Harvesting: Lehman stresses the importance of this strategy to offset capital gains with losses. He notes it's something that should be done throughout the year but is particularly relevant at year-end. He emphasizes the need for professional guidance to navigate the complexities.
- Life Insurance Review: Not about buying more but understanding what coverage you currently have. Ensuring you know the terms and duration of your policies is crucial.
- Credit Card Statements: These are used to analyze spending patterns to ensure they align with financial goals and sustainability, especially considering the long-term implications for retirement.
- Performance Review: Evaluating how individual stocks and bonds in your portfolio performed against your investment goals and risk tolerance. This isn't just about beating market performance but meeting personal financial objectives.
- Estate Planning Documents: A reminder to review and understand estate documents like financial and healthcare powers of attorney, trust documents, etc. It's also important to discuss these with those who will execute them after you're gone.
- Liability Insurance: Reviewing current coverage, particularly for vehicles, and considering an umbrella policy to cover broader risks. Professional advice is recommended to assess if the coverage matches the individual's or family's risk profile.
- Dividend and Interest Income: Understanding where this income is coming from, how it impacts your financial plan, and whether it's sufficient or excessive for your lifestyle needs. It also involves looking at the tax implications of different types of income.
Overarching Themes:
- Professional Guidance: Throughout the discussion, Lehman advocates for working with financial professionals to navigate these complex areas effectively.
- Balancing Wealth with Life's Joys: While the focus is on financial planning, there's a strong emphasis on not losing sight of what's truly valuable in life—family, friends, community, and personal passion.
- Preparation for the New Year: The episode encourages using the downtime around the year-end to review and plan, thereby setting up for a successful 2025 with fewer financial surprises.
Conclusion:
The podcast concludes with a reminder to cherish the time with loved ones, suggesting that all financial planning should ultimately support a life of joy and fulfillment. Lehman wishes listeners a Happy New Year and reiterates the educational nature of the podcast, encouraging listeners to seek personalized advice for their specific situations.
tax loss harvesting
estate tax planning
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