2024 is quickly drawing to a close, and as we grow older, it seems like time passes by in the blink of an eye. At 51 years old, it’s hard to believe how quickly this year has flown by. Despite our age, my wife and I still feel as youthful as ever, but the reality is that we’ll be 70 before we know it. With that in mind, it’s essential to make the most of every moment and embrace where we are in life. Early retirement has been a blessing for us, providing 12 years of freedom and joy that we wouldn’t have had stuck in a cubicle at Intel. As the year comes to an end, let’s take some time for financial housekeeping to ensure everything is in order.
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Rebalance
2024 was a phenomenal year for investors, with the stock market soaring to new heights. If you haven’t rebalanced your portfolio recently, it’s likely overweighted in stocks. Rebalancing is crucial to maintain your desired asset allocation and ensure your investments align with your risk tolerance and goals. While it’s tempting to tinker with your portfolio frequently, sticking to an annual rebalancing strategy is generally the most effective approach. -
2025 Target asset allocation
Our target asset allocation for 2025 includes 75% US stocks, 5% International stocks, 15% bonds and money market, and 5% alternatives. Rebalancing to align our portfolio with this allocation ensures we are prepared for whatever the upcoming year may bring. As we age, it’s wise to consider adjusting our asset allocation to reflect a more conservative approach. -
Prepare for tax season
Cleaning up your investment portfolio can help you offset losses with gains and strategically manage your tax liability. Selling off underperforming assets and reinvesting in more promising opportunities can help optimize your portfolio’s performance and tax efficiency. Taking advantage of tax deductions can further enhance your overall financial picture. -
Top up Roth IRA and 529
Maximizing your contributions to retirement accounts like the Roth IRA and education savings vehicles like the 529 plan provides valuable tax benefits and long-term financial security. Planning ahead and taking advantage of these opportunities early in the year can supercharge your savings and investment growth. - Take a look at real estate crowdfunding
With real estate markets showing signs of improvement, exploring opportunities in real estate crowdfunding can diversify your investment portfolio and capitalize on emerging trends. Senior housing, in particular, presents exciting prospects given the aging population and shifting demographics. Selling off underperforming real estate assets and reinvesting in professionally managed opportunities can streamline your investment strategy and boost your returns.
As the year draws to a close, taking care of these financial tasks will set you up for success in the upcoming year. Whether it’s rebalancing your portfolio, maximizing your retirement contributions, or exploring new investment opportunities, prioritizing your financial well-being is essential. Keep a keen eye on your financial goals, and don’t hesitate to make strategic adjustments to ensure you’re on the right path to financial freedom and security.
Let’s tackle these tasks with diligence and determination so we can enter the new year with confidence and peace of mind. Embrace the opportunities that await and make the most of the time we have. Here’s to a prosperous and fulfilling 2025!
