6 Client Success Stories from 2022, Ep #134

<p>It can be hard to look back at 2022 and see anything positive, right? Inflation is the highest it’s been in 40 years. The stock market had a volatile year and many people’s investments are down. But the market conditions allowed us to do some positive things we normally couldn’t. In this episode of Retirement Made Easy, I share 6 ways that we helped clients find some wins in 2022. </p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[1:23] LPL Financial 2023 Market Outlook</li> <li>[2:34] Get a FREE 30-minute coaching call</li> <li>[3:14] Win #1: Tax-loss harvesting </li> <li>[4:50] Win #2: Roth conversions</li> <li>[8:10] Win #3: High interest rates</li> <li>[12:30] Win #4: Social security’s cost-of-living adjustment</li> <li>[14:36] Win #5: Updating beneficiaries</li> <li>[18:11] Win #6: Unexpected Roth conversions</li> </ul> <h2>Win #1: Tax loss harvesting</h2> <p>I had a lot of questions from listeners and clients about tax loss harvesting. If you sell a stock, mutual fund, ETF, etc., and book the loss, you can deduct up to $3,000 per year of a capital loss on your tax return. Anything above $3,000 gets carried over to future tax years.</p> <p>But you have to be careful of the “Wash Sale Rule.” If you take the loss, you have to wait 30 days to buy back that particular security. The rule wipes out your ability to deduct that capital loss if you buy back that same security. </p> <h2>Win #2: Roth conversions</h2> <p>Many people also took advantage of Roth conversions. If you have pre-tax 401k money or an IRA, you can pay the taxes on a portion of the account and switch it to a Roth IRA. Why do that when the stock market is down? You’re paying taxes on something worth less. So let's say a stock was worth $10 but because of the market, its value dropped to $8. So when you move it to the Roth IRA, you can take advantage of the market bounceback tax-free. Some people wait to do Roth conversions until the end of the year—listen to find out why!</p> <h2>Win #3: High interest rates</