Economic Update

Making a (Year-End) List and Checking it Twice

With the holiday season in high gear, we’re sharing a list that we use to make sure all our ducks are in a neat row before 2024 begins.

• Set a budget for holiday spending. Include gifts, any travel, decorations, groceries (if you are hosting) and, if you are mailing cards, the cards and postage.
• Take full advantage of your annual charitable giving limits. For more information, check out this article from Schwab: 12 Tax-Smart Charitable Giving Tips for 2023.
• Take a moment to review tax-saving opportunities in addition to charitable giving:
  • If you are a business owner, should you recognize income in 2023 or defer it to 2024?
  • How does your 2023 income impact the amount of a distribution you must take as a beneficiary of an IRA?
  • If you are contributing to a Health Savings Account, have you contributed the maximum amount? Keep in mind that funds held in an HSA can be used in future years.
  • If you contribute to a Flexible Spending Account through your employer, you must use the funds you contributed in 2023 before the year ends unless your employer offers one of two options: (1) a grace period of up to 2.5 months to use the funds in your FSA or (2) the ability to carry over up to $610 per year to use in the following year. Employers do not have to offer either of these options, so you’ll want to check if yours does.

One of the ways we help protect your wealth is to minimize taxes by selling some assets at a loss to offset capital gains incurred from selling other assets at a profit. When you see this type of transaction on a monthly statement, please don’t hesitate to contact us if you have any questions.

Lifestyle

Twice as Nice:

Holiday Gifts for Couples

Is there a couple on your holiday gift list that you don’t know well or know only one of the two?  Poinsettias, amaryllis and bottles of wine are nice, but a bit predictable. We’ve found a few gifts whose shape won’t give away what’s inside the wrapping.

• Foodservice product manufacturer Simplot reports that the appearance of charcuterie boards on American menus is up 84% in the last 10 years, and 76% of those who have tried them like or love them. With boards that range from the traditional to dessert and include regional and seasonal items, there’s a board to suit every couple’s taste.
• How about two glasses etched with a map of the couple’s hometown? Also available are custom coasters, water bottles, serving and cutting boards.
• The two could spend time together or with you in a virtual or in-person cooking or dance lesson. Maybe an art or rock-climbing class?
• We’ve found DIY food kits that range from ravioli to s’mores (complete with a tabletop fire bowl), limoncello, root beer, bread, bagels, macarons, sushi and kimchi.

If you can bake, boil, brew, skewer or sear it, there’s a DIY kit for it.

How We Help

Retiring Before Age 65?

Here Are Some Options to Consider.

If you retire before you are eligible for Medicare, there’s one thing you need to know: Health insurance is expensive!

Now that we’ve covered the obvious, if you have retired before age 65 (or are considering doing so), let’s look at some of your options.

1. If you’ve left employment, you (and your family members under certain conditions) may qualify for continued benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA). You will have to pay the monthly premium with no contribution from your former employer.
2. If your spouse is covered at his/her place of employment and employees’ spouses are eligible for coverage, you might consider joining that plan.
3. Some employers that offer health benefits to their employees also offer benefits to retirees.
4. Check out the Health Insurance Marketplace. It’s possible to get coverage outside the November 1 to January 15 open enrollment period if you’ve experienced qualifying income or life changes.
5. Nine states provide health insurance subsidies (in addition to federal subsidies). In Maryland, these subsidies apply only to individuals under age 37 with income up to 400% of the federal poverty level. Both federal and state subsidies are based on how your household income compares to the federal poverty level.

We are happy to sit down with you to examine the pros and cons of all your options to determine which is best for you. Just give us a call.

Advisory Services offered through Obsidian Personal Planning Solutions, LLC. Securities are offered through Triad Advisors, member FINRA/SIPC. Obsidian Personal Planning Solutions, LLC, and Obsidian Personal Planning Solutions, Inc, are not affiliated with Triad Advisors.