Karen Petrucco Photo
Prudential Logo

1021223-00006-00

Advisor Name, designations

Financial Professional

 

Prudential Advisors

236 Broadway

Menands, NY 12204

 

Phone:  800-243-5334

Fax:      800-720-0780

 

 

Email: sales@ltmclientmarketing.com

Website: letstalkfinancialwellness.com

September/October 2024

Investing Moves to Consider This Fall

Investing during autumn season as a group of trees shaped as a financial profit arrow changing leaf color as a finance symbol of aging investment losing momentum with 3D illustration elements.

Is your portfolio in line with your ability to tolerate risk? As we begin fall, there are some end-of-year investing moves that can help tune-up your holdings.


Harvest Losses
Generally, capital gains on investments you have owned for less than 12 months are taxed at your ordinary income tax rate, which may be as high as 37%. Loss harvesting concentrates on net profits. This strategy entails selling an investment at a loss to offset taxes on gains generated by more profitable investments.


Here’s a hypothetical example,* say you have $10,000 in gains on a short-term investment and $6,000 in losses in another investment you plan to sell anyway. If you sell the second investment, you only incur tax on the $4,000 gain on the profitable investment that’s not offset. What’s more, if your losses exceed your gains, you can deduct up to $3,000 in net losses from your total 2024 income.


Rebalance Your Portfolio
The bullish stock market in 2024 may have given your portfolio a heavier weighting in growth investments than your risk tolerance can bear. It’s time to look at rebalancing. Consider selling some of your overperforming securities and reinvesting the proceeds in fixed-income investments to potentially reduce your portfolio risk.**


Top Up Tax-efficient Accounts
For instance, if you expect a year-end bonus and haven’t already contributed the maximum amounts to your tax-advantaged retirement accounts, consider using some or all of your bonus to do that. The maximum contribution to a 401(k) plan in 2024 is $23,000, or $30,500 for those 50 and older. IRA limits are $7,000/$8,000.


72% OF NEW INVESTORS PLAN TO INVEST IN STOCKS. HOWEVER, MANY FIRST-TIME INVESTORS FALSELY ASSOCIATE THE STOCK MARKET WITH SHORT-TERM INVESTING.


Source: Bank Rate, 2023


Healthcare and college savings accounts may offer tax-advantaged options for year-end tax planning. If your business has a flexible spending account, you may be able to increase your contribution. Do you have a high-deductible medical plan? Fund a health savings account. The maximum contribution for an HSA in 2024 is $4,150 for an individual and $8,300 for a family. Touch base with your trusted tax and financial professionals about tax-advantaged college savings plans and other tax strategies before implementing them.


*Your situation and results may vary.
**Rebalancing a portfolio may create a taxable event if done outside of a retirement account, and asset allocation doesn’t guarantee a profit or protect against a loss, but it may help reduce volatility.

1081089-00001-00


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates. Securities products and services are offered through Pruco Securities, LLC (Pruco) (member SIPC). Prudential and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Prudential, the Prudential logo, and the Rock Symbol are service marks of Prudential Financial Inc., and its related entities, registered in many jurisdictions worldwide. Prudential Advisors is a brand name of The Prudential Insurance Company of America and its subsidiaries.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Prudential Advisors and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Specialists LLC, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.