Retirement Planning

The holiday season brings plenty of to-do lists. There are countless gifts to buy, meals to prepare and parties to host, but before the year wraps up, it’s worth adding a quick check-in on your financial picture too.

December 31st isn’t just the end of the calendar year. It’s also a deadline for several financial decisions that can impact your 2026 taxes and retirement trajectory. Before the ball drops, consider these questions:

Have You Taken Your Required Minimum Distributions (RMD)?

For those 73 and older, the IRS requires a minimum withdrawal from your tax-deferred retirement accounts each year. Miss this threshold, and you could face a 25% penalty tax on whatever you failed to withdraw.

It’s also worth considering whether there are strategies to reduce your RMD burden in the future. Having a conversation with your financial planner sooner, rather than later, is the best way to avoid being pushed into a higher tax bracket.

Is This the Year for a Roth Conversion?

Converting traditional IRA funds to a Roth can provide tax-free withdrawals in retirement, but the details matter. Your goal should be to stay within your current tax bracket while still making meaningful progress.

For example, if you are single and will earn $180,000 this year, you fall into the 24% tax bracket, which ranges from $103,351 to $197,300 for tax year 2025. That means you can convert up to $17,300 ($197,300 – $180,000) without being pushed into the next bracket and paying higher federal income taxes.

Whether a conversion makes sense depends on your income, your other deductions, and your expectations for future tax rates. It’s best to consult with a financial advisor before making any big decisions.

Are Your Retirement Contributions on Track?

If you’re still working, the end of the year is a natural time to review whether you’re maximizing your retirement contributions. Here are three key questions we recommend talking over with your investment advisor:

• Are you capturing the full employer match?
• Could you increase your contributions for the final months of the year?
• Are catch-up contributions part of your strategy?

These decisions compound over time. A few adjustments now can make a meaningful difference down the road.

The Value of a Year-End Review

None of these questions have universal answers. What makes sense for your neighbor or your colleague may not make sense for you. The right strategy depends on your unique situation, your income, your goals, your comfort level, and your vision for retirement.

What matters is taking the time to ask the questions before the window closes.

If any of these topics sparked a “I should probably look into that,” let’s talk before the year ends. A brief conversation now could save you from missed opportunities later.

At Secured Retirement, we’re here to help you maximize your earnings and save on taxes so you can live the retirement of your dreams.

Give us a call at 952-460-3290.

Giving back not only benefits your community—it can also benefit your budget when planning for retirement. Charitable contributions can have significant tax benefits for pre-retirees and retirees alike. As with any financial decisions, check with your advisor before making changes. But consider these tax benefits for charitable giving.

Tax Benefit: Standard vs. Itemized Deductions

For 2025, the standard deduction thresholds are:

• Single; Married Filing Separately: $15,750
• Married Filing Jointly; Surviving Spouses: $31,500
• Heads of Households: $23,625

In 2025, families that elect a standard deduction will also be enabled to deduct an additional $1,000 per taxpayer on the return ($2,000 for a married filing joint couple).

Most, itemized deductions are only beneficial if they push you over the threshold for standard deductions. More families who have been taking a standard deduction may find that they are once again allowed to itemize on this year’s return due to the potential increase of SALT (State and Local Tax) write-offs which have increased for families with $500,000 AGI and under. 

If you will potentially itemize your tax return in 2025, or if you’re close to the standard deduction threshold, you may want to consider making a few extra donations this holiday season to reap the maximum tax benefits.  Consulting with a qualified tax preparation expert may be a good idea prior to year-end to see how additional charitable gifts may allow you greater deductions against your income this year. 

Alternatively, you could plan ahead for 2026 by using the “bunching” strategy. By contributing two years’ worth of your annual charitable contributions to a Donor Advised Fund (DAF), you could itemize your deductions for 2025 and still claim the standard deduction for 2026, potentially increasing your overall deduction across the two years.

Another potential benefit? Directly donating appreciated non-cash assets (such as stocks, mutual funds, or even personal property) to a DAF. You can avoid capital gains taxes on these assets and still support your favorite charities.

Remember: Documentation is Required to Maximize Deductions

The IRS is strict on documentation when it comes to charitable tax benefits. You’ll need written proof of all your donations. Additionally, only recognized charitable organizations count as qualified donations.

If you’re donating non-cash assets, you’ll want to be aware of the fair market value (FMV) to avoid paying capital gains taxes. You’ll also need to use a special form to deduct these contributions (Form 8283).

Note: If you donated funds and received a benefit in return (such as a ticket to an event), that counts as a quid pro quo donation. You’ll only be able to deduct the difference in value between your donation and the benefit received.

Retirement Strategy: Building Charitable Giving into Your RMD Plan

If you’re already retired, there are strategies for reducing your overall taxable income by contributing more to charities. A qualified charitable distribution (QCD) is a tax-free transfer directly from an IRA to a qualified charity, which can satisfy your required minimum distribution without increasing your taxable income. You pay less in taxes, and charities receive the funds they need to survive. It’s a win-win!

Make Your Charitable Giving Work Harder for You

Feeling inspired to give more? We can help you get the most out of your charitable donations so you see the tax benefits you deserve. Let’s discuss your current contributions and set a plan to maximize during the season of giving.

Give us a call at 952-460-3260.

An ancient Chinese proverb states, “The best time to plant a tree was 20 years ago. The second-best time is now.” This wisdom applies perfectly to retirement planning. The strategies you implement today will continue growing and benefiting you for decades to come.

If you’ve accumulated significant wealth over your career, you’re not worried about whether you can retire. Your concerns are more sophisticated: How do I minimize my tax burden? When should I take Social Security to maximize benefits? How do I protect what I’ve built and ensure it lasts?

These aren’t questions you should tackle alone or put off another year.

Strategic Planning Matters Now More Than Ever

You’ve likely spent decades building your wealth through smart business decisions, strategic investments, and disciplined saving. But the accumulation phase and the distribution phase of wealth require entirely different strategies. What you have saved now might not see you through a successful 30-year retirement.

Without a comprehensive, written plan reviewed by an experienced advisor, you’re leaving money on the table. Worse, you could be setting yourself up for financial stress during what should be your most enjoyable years.

Taking Action: The Power of a Written Plan

Dwelling on what you should have done years ago accomplishes nothing. The proverb’s wisdom is clear: what matters is taking action now. The best thing you can do is sit down with a qualified advisor to document a comprehensive retirement plan tailored to your circumstances.

A proper retirement plan should address (in this order):

• Income distribution strategies that align with your lifestyle goals
• Social Security claiming strategies for you and your spouse
• Tax optimization strategies across all account types
• Healthcare coverage and long-term care planning
• Estate planning and wealth transfer goals

This isn’t something you can piece together from internet articles or handle with a one-time meeting. It requires ongoing collaboration with an advisor who understands both the complexities of retirement planning and your personal goals.

Start Planting Today

You’ve worked hard to build your wealth. Now it’s time to ensure that wealth works just as hard for you throughout retirement. The strategies you implement today—or fail to implement—will impact your financial security and tax burden for the next 30+ years.

The second-best time to optimize your retirement plan is right now. Don’t let another year pass without a documented, comprehensive retirement strategy. 

Ready to develop a retirement strategy that addresses your tax concerns and maximizes your Social Security benefits? Let’s sit down and create a written plan tailored to your unique situation.

Give us a call at 952-460-3260.