Business & Finance   

At the end of each calendar (tax) year, taxpayers lose most opportunities to reduce their taxable income and lower their tax bill. Thus, time is of the essence to take action to save money on taxes before each year ends. This class will describe over a dozen actions that people can take before December 31 including early RMD withdrawals during financial "gap years," preparing a draft tax return to estimate potential taxes, comparing current and prior year income and expenses, tax loss harvesting, qualified charitable deductions (QCDs), Roth conversions, bunching deductions, donor advised funds, safe harbor rules for tax withholding, deferring income and capital gains, and contributing to tax-deferred savings plans if still working.

This presentation will be taught by a financial educator who holds the certified financial planner® designation but does not sell consumer financial products or services. The session will discuss special financial considerations for women and a wide variety of personal finance topics including values and goals, managing cash flow, calculating net worth, credit, insurance, investing, and estate planning. The last 20-30 minutes will be devoted to answering general personal finance questions posed by participants.

Many Master the Possibilities students are in their 70s (or will be soon), so this class will come at a “teachable moment” for spending decisions, income taxes, and philanthropy. New issues and challenges arise when people reach their 70s. Examples include a higher risk of widowhood, illness, disability, and need for long-term care assistance and increased concern about outliving assets. There are also financial planning issues such as required minimum distributions (RMDs) and opportunities such as qualified charitable contributions (QCDs). Financial topics that septuagenarians need to know are the focus of this class.

Risk mitigation is an important concept for retirees to consider. The goal is to be able to weather various life events without suffering major adverse effects. Retirees face a number of risks that need to be planned for including longevity risk (i.e., an unknown life expectancy), market risk, sequence of return risk, and a variety of potential spending shocks including rising health care costs, long-term care needs, inflation, death of a spouse, "gray divorce," unexpected family responsibilities, and frailty. This class will cover these topics and more.

Every year, new trends, events, financial products, and government policies and legislation affect our personal finances. This presentation will recap 2024 through a personal finance “lens” by reporting noteworthy personal finance news items and their implication for personal financial planning. The session will also include results of important 2024 research studies about financial topics and a preview of announced changes related to income and estate taxes and Social Security for 2025.