Winter is Coming

The weather has cooled in East Tennessee, the leaves are falling, and football is well under way. Every year, a fair amount of those beautifully colored leaves eventually find their way into my gutters and I have work to do.

There are certain things I always do this time of year to prepare my home and garden for the upcoming winter. I aerate and overseed the lawn, plant any trees I want rooted, and winterize the outdoor faucets, just to name a few.

These habits naturally kick in when I start to feel that first hint of cold weather. I always feel better when everything is done, knowing I have prepared myself and my home for winter, and can begin to get ready for the new year.

The same can be said for year end financial planning matters. There are certain actions that can be taken before the end of each year, mainly for tax mitigation purposes, that could end up saving thousands or even more in the long run.

As investment advisors, we closely examine client portfolios and identify any specific holdings that could be sold to harvest losses to help offset some or all of the year’s taxable gains. We suggest making any extra 401k or IRA contributions before year end to defer taxes now and into the future. And if appropriate, we determine if a Roth conversion could make sense for clients to shield asset growth from future taxation. These are just a few of the ways we help our clients with year end planning.

For clients that are charitably inclined, we work to ensure that donations each year are made in the most prudent fashion possible while avoiding any unnecessary taxes. This process sometimes requires coordinating with a client’s CPA and/or attorney. Most clients are happy to have assistance with these tasks as they get ready to enjoy their holiday season.

If any of these year end planning items sound too complex to tackle yourself, you’re not alone. That’s where getting help from the right advisor comes in. At Rather & Kittrell, we help clients make decisions each year regarding specific actions they can take to enhance their financial situation now and in the future.

The benefits of working with a fiduciary advisor, with your best interests at heart, can be rewarding and comforting.  There is peace of mind knowing that all the right pieces are in place to accomplish the things that are most important to you and your family. It will be the same feeling I get as I finish my final home and garden tasks for the year and can head into 2021 confident that my work is completed and I have done all I can for my family’s well being.