Author: Jennifer Fisher

With the new year comes renewed commitments to improving your finances, strengthening your savings, and planning for the future. At Ausperity Private Wealth, LLC, we believe that even though the ball has already dropped, it’s not too late to jump-start your financial plan for 2025. Watch this quick video to review each area of your financial plan and make sure you’re starting the new year off on the right financial foot.

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Video Transcript

The Perfect Time to Commit

The new year is a perfect time to commit to improving your finances and planning for your future. Even though the ball has already dropped, it’s not too late to jump start your financial plan for 2025.

Meet Shane Fox

Hi, I’m Shane Fox, founder at Ausperity Private Wealth. IIn this video, I’ll share how to review your financial plan and start the year off on the right foot.

Maximize Your Retirement Savings

For retirement, maximize your retirement savings by contributing to plans like 401Ks, 403Bs, or IRAs. For 2025, you can contribute up to $23,500 to employer plans, which will reduce your taxable income.

Traditional IRAs

Traditional IRAs are another option to lower your AGI, provided your income is within certain limits. Contributions there grow tax-deferred, and while withdrawals in retirement are taxed, they can reduce your current year tax liability.

Requirement of Minimum Distributions (RMDs)

Don’t forget about Requirement of Minimum Distributions, otherwise known as RMDs. Under the Secure Act 2.0, the RMD age has changed again, so please consult an advisor to determine whether you need to begin distributions at 70.5, 72, 73, or 75.

Emergency Fund

For cash flow, ensure your emergency fund covers three to six months of essential expenses, including mortgages, utilities, and groceries. If you don’t have enough saved, create a plan to build this over the next year.

Budgeting for Success

Additionally, budgeting is a simple yet effective way to track expenses, save consistently, and then give yourself permission to spend within your means.

Health Savings Accounts (HSAs)

For risk management, if you’re enrolled at a high-deductible health plan, consider contributing to a health savings account. Contributions there are tax-deductible, the earnings grow tax-free, and the withdrawals for qualified medical expenses are tax-free as well.

Review Workplace Benefits

Review your workplace benefit plans and update your coverage if necessary, especially if you’ve experienced a major life change like marriage, divorce, or childbirth. Your employer also may incorporate what’s called a flexible spending account in which you can save pre-tax dollars for out-of-pocket expenses.

Charitable Contributions

If you itemize deductions, annual gifts or qualified charities can help reduce your tax liability while giving back to causes you care about.

529 Savings Plans

Consider contributing to a 529 savings plan for a child or grandchild. It’s a great way to help fund their future education.

Roth IRAs

Roth IRAs are also an excellent tool for building tax-free retirement savings. With benefits like no RMDs and tax-free withdrawals after age 59 and a half, there’s simply nothing better.

Diversify Your Investments

Take time to review your portfolio and confirm that it’s properly diversified, especially given market volatility and recent inflation.

ESG and Impact Investments

You might also be considering incorporating ESG or impact investments that align with your values and your goals.

Update Beneficiary Designations

For estate planning, again, if you’ve experienced a major life event in 2024 like the birth of a child or family members passing, remember to update that.

Review Estate Documents

Review your estate planning documents like wills, trust, powers of attorney to ensure they reflect your current wishes.

Annual Gifts

Making annual gifts up to the annual exclusion amount also will help.

We’re Here to Help

At Ausperity, we’re here to help.

Reach Out to Us

If this list feels overwhelming, please reach out to us. With over 10 years of experience, I’m passionate about helping clients improve their financial plans and enjoy their lives and wealth to the fullest. The Ausperity private wealth team has the tools and the knowledge to help get your financial house in order this year.

Please call me at 856-252-0103 or email me at [email protected] to set up a complimentary meeting.

Thanks and have a great day.

By Robert (Rory) J. O’Hara III, CFP®, CRPC™

Have you considered how you want to pass on your wealth to future generations? 

While leaving a gift that lasts for generations may be an admirable objective, estate planning and gifting present unique challenges. 

In this quick video, we explore key strategies to help you pursue your goals.

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TRANSCRIPT

Hi, I’m Rory O’Hara, Founder and Senior Managing Partner at Ausperity Private Wealth. Today, I’ll share insight into effective ways to transfer wealth to future generations.

Transferring assets can be a complex process, but by using specific strategies, you can simplify and streamline wealth transfer. Below are three approaches to consider:

Direct Payments for Simplified Transfers

Direct payments allow you to transfer cash or other assets directly to a third party, reducing the need for complex estate administration.

Examples include:

• Paying tuition directly to educational institutions for your grandchildren’s education.
• Covering medical expenses by sending payments directly to healthcare providers.

This method offers a straightforward way to support your loved ones while minimizing administrative burdens.

Using Annual Gifting to Reduce Taxes

Annual gifting is a practical way to transfer wealth incrementally while taking advantage of tax benefits. By utilizing the annual gift tax exclusion, you can transfer a certain amount to individuals without incurring gift taxes.

Currently, the annual gift exclusion is set at $18,000 per person. If you exceed this amount, you may need to file a gift tax return, but that doesn’t necessarily mean you’ll owe taxes.

Consulting with a tax advisor can help you navigate the process and optimize this strategy effectively.

Irrevocable Trusts for Long-Term Wealth Management

Irrevocable trusts offer an organized approach to transferring wealth while potentially reducing taxable estate values. Assets placed in an irrevocable trust are excluded from your estate, which can help manage estate taxes.

Benefits of irrevocable trusts include:

• Tax Advantages: Contributions may apply to the annual gift exclusion or lifetime exemption, reducing gift tax exposure.
• Protection from External Risks: Assets are generally protected from creditors, lawsuits, and divorce settlements.
• Customizable Distribution Plans: Trusts can be structured with conditions based on age, milestones, or other factors.
• Intergenerational Support: These trusts can provide benefits to children, grandchildren, or charities while limiting additional taxes.

Irrevocable trusts also offer options for combining family wealth transfer with philanthropic objectives, creating a structured plan for long-term impact.

Expert Guidance for Wealth Transfer

These three strategies—direct payments, annual gifting, and irrevocable trusts—highlight some of the many ways to effectively transfer wealth to future generations.

At Ausperity Private Wealth, we believe in collaboration and tailored solutions. If you’d like to discuss your wealth transfer goals, contact me to schedule a meeting:

📞 856-252-0102

By Robert (Rory) J. O’Hara III, CFP®, CRPC™

Is your tax bill dancing in your head instead of sugar plums this holiday season? In this video, Rory O’Hara discusses year-end tax strategies to help you maximize your savings and minimize taxes. You have moves to make by year’s end that can safeguard your pocketbook. Watch this video to learn more.

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TRANSCRIPT

Are you concerned about taxes eating into your income and savings this year?

Hi, I’m Rory O’Hara with Ausperity Private Wealth. Our mission is to help clients grow and preserve their wealth. Today, I’ll share year-end tax planning strategies that can help you minimize taxes and maximize savings.

1. Harvest Tax Losses

As you align your portfolio with your goals, consider offsetting capital gains by selling investments that have underperformed. This strategy, known as tax-loss harvesting, can reduce your tax liability for the year.

2. Take Required Minimum Distributions (RMDs)

If you’re 73 or older, ensure you take your RMD by year-end. Missing this distribution could result in a 25% penalty on any undistributed amount.

3. Maximize Retirement Contributions

Contribute the maximum to your retirement accounts:

• $23,000 for your 401(k) (if under age 50).
• $30,500 if you’re over 50.

These contributions lower your taxable income, deferring taxes until retirement.

If you expect to be in a higher tax bracket during retirement, consider converting some of your traditional IRA to a Roth IRA this year. Money in a Roth IRA grows and can be withdrawn tax-free in retirement.

4. Optimize Charitable Giving

Giving can lower your taxes while supporting causes you care about:

• Cash Donations: Deduct up to 60% of your adjusted gross income (AGI).
• Appreciated Assets: Donate long-term appreciated assets like stocks to deduct their full market value (up to 30% of AGI) while avoiding capital gains tax.
• Qualified Charitable Distributions (QCDs): If you’re over 70½, donate directly from your IRA (up to $105,000) to avoid taxes and meet your RMD requirements.

5. Consider a Donor-Advised Fund

A donor-advised fund allows you to:

• Contribute a large amount now, taking a full deduction this year.
• Distribute funds to charities over several years.

This strategy, called bundling, lets you maximize deductions now while using the standard deduction in future years.

Partner with a Financial Advisor

A financial advisor can guide you through these strategies, helping you reduce taxes while maximizing savings. At Ausperity Private Wealth, we work with successful families to optimize their financial futures.To schedule an appointment, call us at 856-252-0102 or visit our website at www.AusperityPrivateWealth.com.