Nobody wants to be on the Naughty List – especially when it comes to finances.  Santa’s Naughty List might get you a piece of coal, but your financial Naughty List might prevent you from making proactive decisions, costing you a significant amount of money.

Here are some things you should consider before the year’s end to secure your spot on your financial Nice List.


  • Tax loss harvesting should be done by December 31st.  All losses need to have occurred within the calendar year. Please be cognizant of “wash sales” rules that prohibit the repurchase of stocks/bonds sold at a loss within 30 days.
  • Charitable Contributions that are applicable to 2021 MUST be made by the end of the year. Consider Donor Advised funding to stack donations into one year and gift appreciated stock.
  • Max out 401K if cash flow allows.
  • For some young people who are new to the workforce, opening a ROTH IRA can be beneficial.  Since these accounts are funded with post-tax dollars, they can grow tax free, with no taxable event when withdrawn at time of retirement.
  • 529 Contributions need to be made by December 31st to be applicable to this year’s taxes.  You must have a state sponsored plan to get the deduction in NY.
  • Avoid buying a mutual fund in December that anticipates paying a capital gains distribution.  This can cause a taxable event.
  • If you are 72 or older, do not forget to take your required minimum distribution (RMD) based on ALL of your retirement accounts – or else you could be hit with a 50% tax penalty on the amount of the distribution that you should have taken.
  • Employee Benefits:
    • Make sure that all elections are made that may affect the 2022 tax year
    • If your FSA Dependent Care Account is a “use it or lose it” account, ensure that the funds are used by the end of the year.
    • Qualified Retirement Plans need to be established before you file your business tax returns. in order to reap any tax advantages.
    • Equipment purchases made within the year (up to $1,050,000) can be used as a deductible expense & does not need to be depreciated


**Remember, even though taxes are due in April, they are considered for the calendar year (ending in December).  Therefore, any mechanism that can help ease your tax burden should be done BEFORE the calendar changes.



Lately, the stock market is like a New Year’s Eve party with plenty of things to celebrate.  Stocks have been on an unprecedented winning streak where the bulls have the run on Wall Street.  But, just like that New Year’s Eve party, midnight will strike and the party will end.

NOW is the time to stress test your portfolio to see how you would react to market downturn.  Everyone likes to take investing risks when the market is up, but how much are you willing to lose on those risks when the market has a downturn?

  • When was the last time you looked at the potential risk for your portfolio?  Do you know the amount of risk you are comfortable taking or how you will handle market uncertainty?
  • A stress test should be done periodically to make sure that your portfolio is in line with your goals and financial “comfort zone”.  Things like age, income, and big financial changes all play a part in your personal level of risk tolerance.  A young investor in his or her early 30’s might be more aggressive with their portfolio than a seasoned investor in their 60’s.  Verify that your portfolio matches your level of your risk.
  • Our Investment team here at WealthEdge® can analyze your portfolio against different scenarios to show you how much you would be set to gain or lose – helping you see exactly what portfolio model  best fits your comfort zone right now.

So, consider these suggestions to keep you on the Nice List to the end of the year and beyond.  And if this seems too daunting, make your list and ask US to check it twice – that’s what we are here for!

To all of our clients, best wishes for a wonderful holiday season!