As the 2023 tax season wraps up for many of you, it's prudent to start thinking about optimizing your tax situation for the current year and beyond. The best time to begin planning for next year’s taxes is to proactively start now. As surprising as it may sound, the higher inflation rates we have been experiencing may positively impact your 2024 tax planning.

The year started on a strong note for stocks with the S&P 500 posting its best first quarter since 2019. The index is sitting at new all-time highs, being driven by resilient corporate profits, optimism that the economy has avoided a recession, and a continued boom in Artificial Intelligence (AI) spending. International and US small-cap stocks rallied along with their larger peers.

As your income rises, it naturally creates additional complexity in your financial life. As you experience income jumps that are common in your 40s, you need to mind your personal savings gap. Your savings gap is how much of your household income you need to save or invest to reach your financial goals versus what you are saving. 

Understanding your unique financial goals, needs, and attitudes toward money are essential in determining how confident you are about your future finances. A recent study published by Northwestern Mutual examines US adults by generation to understand attitudes and behaviors toward money, financial decision-making, and financial security. 

Starting early, saving as much as possible, and being thoughtful about how you allocate your investment portfolio to balance risk and return are the basics for most investors. As you continue to increase your income and your investments grow, taxes become a critical component of your long-term savings and investment plan. 

At the start of the year, Wall Street strategists were predicting 2023 would see a recession and we would experience a tough year for stocks and bonds. We are glad that the experts missed the mark! The year's final quarter saw a strong rally across all asset classes, capping an excellent year for the markets.

We are less than a year away from the 2024 presidential election. The 2020 election was one of the more contentious elections in US history and the 2024 edition appears to be headed in the same direction. This quarter, the top question we have heard in conversations with clients is, “How will the elections impact my investments?”

Your financial well-being is a vital aspect of your overall life satisfaction. As the year draws to a close, these year-end financial tasks can help ensure you're on the right path to financial success and peace of mind in the coming year. This is also an ideal moment to discuss your financial goals and plans with your financial planner.

From the investor perspective, the changes to the financial advisor model provide more options, transparency, and more services that used to be accessible only to those with a great deal of wealth. The fee-only fiduciary advisor gets paid to provide advice to their clients, whether in financial planning, asset management, or both.

Choosing a health insurance plan can be difficult. Many employers offer PPOs (Preferred Provider Organizations) and HDHPs (high deductible health plans). When considering an HDHP vs. PPO, each option has pros and cons. Since both fully cover wellness visits and annual exams, your decision should reflect your personal needs.