Fall Financial Review
The transition from summer to fall has begun to set in with shorter days, cloudier skies, and chillier mornings. While many long for an endless summer of fun and sunshine, this time can offer an opportunity to step back and take a look at your financial position for the year. Did spending align with your expectations for the year? Are there opportunities to lessen your tax burden? As the new year approaches, are there any updates to accounts you’ve been putting off? Comparing your goals at the beginning of the year with where you are now can provide valuable insights to close out the year strong. Below are options that you may consider during your financial fall review.
Investing in the Future
Are you planning on retirement or slowing down soon?
Review asset allocations for your investment accounts and consider rebalancing to better align with your risk tolerance and cash flow needs.
For taxable accounts, consider spreading rebalancing over a few years, or review opportunities for tax-loss harvesting to offset capital gains. Assessing your projected income now may reveal opportunities to pay little to no tax on capital gains. Consult with a tax professional before making changes to your taxable accounts.
Income Tax Considerations
Were there any changes in 2026 that may affect your tax status, such as marriage, real estate transactions, or a new job?
Maximizing retirement contributions can lower your overall tax burden. For self-employed individuals, consider a Solo 401k as you can generally contribute more than traditional IRA accounts
Charitable giving may be beneficial if you are planning on itemizing. Additionally, if you are 70 ½ or older and subject to RMDs, consider making a “Qualified Charitable Distribution” if cash flow is not a concern. The charitable distribution limit is $111,000 per person for 2026 and, when done correctly, it bypasses gross income.
If you had unexpected or higher income than was projected, updating withholdings can help avoid underpayment penalties.
“Administrative” Matters
Have your goals or family circumstances changed, creating a need for an updated estate plan? Given the low estate tax exemption in Washington and Oregon, are there opportunities for gifting to move money out of your estate now?
The current annual gifting exemption is $19,000, meaning anything under this amount does not need to be reported to the IRS. Additionally, direct payments of tuition or medical expenses do not count towards that exemption at all.
Review accounts to ensure beneficiary designations match current estate planning documents. Taking a little time now can save work and/or unwanted distributions, down the road.
The Full Financial Picture
All of these areas of your finances are interconnected, and important to review on a regular basis to ensure you remain on track to meet your goals. Maximizing retirement contributions now can lessen your tax burden while bringing you closer to your retirement goals. Creating a gifting strategy can move money out of your estate before it is too late. Having a clear picture of what you want, and ensuring that’s where you are actually heading can reveal opportunities to make some changes early on.
At Allen Trust Company, we have experienced professionals who can help ask the right questions to ensure you stay on track with your goals. Let us know if you would like assistance with your fall financial review.
Disclosure: The information provided in this writing is for general informational purposes only and does not constitute financial advice from Allen Trust Company and Allen Capital Management. Readers are encouraged to consult with a qualified financial advisor to assess their individual circumstances and make informed decisions based on their specific situation.