How to think about year-end financial planning December 15, 2022
Written by MSDC Staff
As physicians approach the end of the calendar year, a number of pressing financial issues may face your portfolio. Charles Schwab recommends individuals consider the some of the following ways to prepare your finances for year end:
- Take required minimum distributions [RMDs] (for those over age 72)
- Optimize your charitable giving
- Harvest investment losses
- Consider changes to retirement plans and IRAs
On the first point, some individuals may struggle with RMDs and its impact on their income level. Schwab recommends considering a qualified charitable deduction (QCD) to assist with this situation:
If you're 70½ or older, you can donate up to $100,000 to a charity directly from your IRA using a QCD. You won't receive a tax deduction for the donation, but the gifted amount can be used to satisfy all or part of your RMD without adding to your taxable income.
Physicians, like many high net-worth individuals, may struggle with making decisions on the best ways to manage their money during tumultuous financial times. To learn more about year-end options, MSDC's advisors Asset Strategy Consultants are available to speak with you about your individual needs, including QCDs, retirement planning, and investing. Visit their website here or contact them to learn more (and mention you are an MSDC member).
And if you are looking for a charity to make a tax-deductible contribution or QCD, and would like to help members of our profession, consider The Healthy Physician Foundation.