Money Matters
How do we honor the Lord with our stewardship at Christmas and as we plan for the new year ahead? Here are seven year-end financial moves to consider.
Rest your heart. Contentment grows as we trust God’s leading. I’ve found that Galatians 5:16 presents a wise heart posture for biblical stewardship as Paul tells us to “walk by the Spirit.” As the Spirit graciously leads, we remember that God owns it all, and He honors faithfulness.
Plan and monitor your financial journey. Set goals and practice sound giving, saving, spending, and investing strategies. User-friendly financial software packages like Quicken and Ramsey Solutions can support your journey. Likewise, the expertise of a competent and godly financial advisor or Certified Financial Planner (CFP®) may be beneficial.
Prioritize charitable gifts. Besides being generous and cheerful while funding the Great Commission, you should be able to deduct the amount of such contributions on your tax returns if you itemize deductions.
Evaluate your investments. Ponder what types of companies are owned in your portfolio. Do they appropriately honor your values? Also, this is an opportune time to assess the performance of your portfolios. For example, for investors who meet regulatory requirements, allocating a portion of investments to alternative assets such as private real estate, private equity, and private debt may offer new opportunities for diversification and higher returns.
Open and use a Donor Advised Fund (DAF). A DAF with an organization such as the National Christian Foundation of Alabama may simplify and organize your charitable giving. Consider donating appreciated assets like stocks, real estate, and business interests.
“Bunch” your charitable contributions for tax savings purposes. “Bunching” allows you to make multiple years of gifts into a DAF in a year, itemize those gifts, and then grant those contributions to charities over successive years. In the subsequent years, you should be able to use the standard deduction of $27,700 for couples or $13,850 for singles.
Consider tax-loss harvesting. If you have losses in your taxable investment portfolio, you may “harvest” (sell) these to offset recognized capital gains this year. This tax strategy can yield attractive results, though there are specific IRS rules to be followed.
May your year-end moves take you along a joy-filled path of stewardship!
BMSS Wesson Wealth Solutions offers comprehensive financial planning and investment strategies aligned with your values. We specialize in serving business owners, corporate executives, and families stewarding earnings or inherited wealth. Please feel free to contact me to discuss your interest in our services. Qualifying portfolios may be eligible for a review at no cost.
Watch this video to learn more about year-end financial moves.
-Tank Tankersley, CFP®, AEP®, CTFA, CKA, MBA
205-982-5555
