CNBC Op-ed Article

CNBC Op-Ed: Here’s a year-end checklist to help you navigate some complicated financial issues

PUBLISHED TUE, NOV 8 2022 10:00 AM EST UPDATED TUE, NOV 8 2022 10:05 AM EST
Winnie Sun,  co-founder and managing director of Sun Group Wealth Partners

See the original article here

Key Points of Article:

• Year-end is one of the most important times for investors because there are so many decisions to make that may impact their overall financial planning.
• Amid market volatility, global challenges, and stubborn inflation, here’s a checklist of financial to-do’s that may help you navigate tricky times.

Article Summary:

Year-end is one of the most important times for investors because there are so many decisions to make that may impact their overall financial planning.

The end of this year is marked with a lot of financial challenges, including inflation, market volatility, domestic political uncertainties, and global geopolitical risks and issues. 

Roth Conversions

One of the most possibly beneficial year-end strategies that one may want to consider is a Roth conversion. Roth conversions take pre-tax money, like that in a Traditional IRA or Traditional 401(k), and make it tax-free going forward, paying the tax in the year you convert it.  This strategy is especially attractive this year because asset prices are typically lower than they were at the beginning of the year. This means that you would pay less tax on conversions now then you would have at the start of the year. Combine that with near historic low tax rates, which are set to expire at the end of 2025 when the current tax law, the Tax Cuts and Jobs, sunsets (aka expires), and it looks pretty beneficial.