Finally, But Not Yet

It's crazy how life tends to speed past, yet drag on at the same time.

In some ways, I feel like it's taken forever for no one to be able to argue that it's too early to say "Merry Christmas." Yet, in many other ways, I'm barely used to writing "2024."

I had this thought earlier today when my wife sent me a picture of our youngest son sitting up by himself. Part of me thought, "It's about time!" but a much more sentimental part thought, "No, not yet."

Nevertheless, here we are. It's almost Christmas, so I hope you've ordered all your gifts, decorated your tree, and begun your fast so that you have plenty of room to binge eat at the 8 different Christmas celebrations, parties, and family gatherings this month.

With this being the last edition of this year's newsletter, it's only fitting to discuss the things that you should keep in mind before we do finally reach the end of the year.

Despite the business of the holidays, December can be a great time to go over some end-of-the-year financial planning.

Here are some things that you can do to help milk 2024 for all it's got as well as get a head start in 2025.

1. Check Your Budget and Cash Flow

Budgeting may sound as exciting as getting socks for Christmas, but trust me, it’s the gift that keeps on giving. Take a look at your spending this year. Did you stick to the plan, or did unexpected expenses sneak in? Now’s the time to adjust your budget for next year.

This doesn’t mean cutting out all the fun. It means making sure you’re intentional with where your money goes. After all, it is more fun to spend without guilt when you know your finances are in order.

2. Make the Tax Man Your Friend (or At Least Not Your Enemy)

Taxes aren't fun for anybody, but December is prime time to make smart moves. One powerful strategy is gifting appreciated stock to charity. By donating stock that has grown in value, you can avoid paying capital gains taxes while still claiming a deduction for the full market value of the stock. It’s a win-win for both you and the charity.

Another option is to contribute to a Donor-Advised Fund (DAF). This allows you to make a larger, upfront charitable gift that provides immediate tax benefits while giving you the flexibility to decide which charities to support over time. Whether it’s stock or a DAF, these tools let you give generously and strategically before the year ends.

3. Give Your Portfolio a Check-Up

2024 has come with a lot of market growth for a lot of people. Because of this, the percentages that you have in certain investments has likely changed. If someone is not in charge of correcting that for you, now could be a great time to do so.

Who knows what 2025 markets will look like, but whether they are skyrocketing, or plummeting, remember, this isn’t the time for panic. Market ups and downs are like the tides—constant and unavoidable. The key is to stay the course and design your investments to weather the waves.

4. Tidy Up Your Estate Plan

Here’s a question for you: If something happened tomorrow, would your family know what to do with your finances?

Make sure your estate plan is in order. Update your will, double-check beneficiary designations, and consider setting up a trust if it fits your needs. This isn’t just about dollars and cents—it’s about helping your loved ones have clarity during what will already be a tough time.

5. Inflation-Proof Your Strategy

Inflation may have been the word of the year (again), but it’s more than a buzzword—it’s a reality that can quietly erode your purchasing power.

Take some time to reassess how you invest your money. Are you accounting for rising costs? Do you have growth-focused investments to keep up with inflation? This isn’t about making drastic changes; it’s about staying one step ahead.

6. Don’t Forget the Emergency Fund

If this year has taught us anything, it’s that life throws curveballs. Make sure you’ve got a robust emergency fund—6–12 months of living expenses tucked away in a safe, accessible place. Think of it as your financial cushion for whatever surprises 2025 might bring.

7. Reflect on What Matters Most

Finally, let’s end this year on a high note. December is about more than numbers. It’s a time to reflect on what you value most. Whether that’s travel, hobbies, family, or community, make sure your financial plan is helping you live the life you’ve dreamed of in retirement.

Action Items:

I've already given you enough things to work on this time, so I'll zoom out and give you the big picture:

1. Plan
2. Invest
3. Adapt

As the clock winds down in 2024, take a deep breath. You’ve made it through another year—hopefully stronger, wiser, and maybe even a little more grateful. Financial planning may not be the most glamorous part of your December, but it’s one of the most impactful.

I hope that the rest of this year is filled with loved ones, good food, fun gifts, and most importantly, a time to celebrate the best gift that we have been given.

A Savior.

Merry Christmas

Spencer Reed, CPFA?