The Digest | New Jersey Magazine
Issue link: https://magazines.vuenj.com/i/1526156
Q4 is an excellent time to reassess your investment portfolio. Market conditions can change rapidly, and what worked in Q1 might not be as effective now. Analyze your asset allocation and consider rebalancing your portfolio to reflect current market trends. Diversifying across different sectors and asset classes can reduce risk and increase your chances of a strong year-end performance. 1 REVIEW AND REBALANCE YOUR PORTFOLIO Tax planning should be a year-round activity, but Q4 is a critical time to help you take advantage of all available deductions and credits. Consider strategies like tax- loss harvesting, contributing to tax-advantaged accounts (such as IRAs or 401(k)s), and making charitable donations. Consulting with a tax advisor now can save you significant amounts come tax season. 2 MAXIMIZE TAX EFFICIENCY e end of the year oen presents unique investment opportunities, such as IPOs, seasonal stock trends, or high-yield bonds. Carefully consider where to allocate any excess capital. Additionally, review any underperforming assets and consider divesting them to reinvest in more promising opportunities. is strategic positioning can set you up for growth going into the new year. 3 STRATEGIZE YEAR - END INVESTMENTS Q4 is an ideal time to review your estate planning and wealth transfer strategies. Make sure your estate plan is up-to-date, particularly if you've had significant life changes like marriage, divorce, or the birth of a child. Consider giing strategies to reduce estate taxes and facilitate the smooth transfer of wealth to your heirs. Trusts and other financial instruments can also be explored to protect your legacy. 4 PLAN FOR FUTURE WEALTH TRANSFER e final quarter of the year can be unpredictable, with market fluctuations influenced by year-end corporate reports, holiday spending, and global events. Protect your wealth by staying informed and being ready to act swily. Options such as hedging, increasing cash reserves, or shiing to more stable investments can help mitigate potential losses. 5 PREPARE FOR MARKET VOLATILITY VUENJ.COM 95