Trick or Treat, Wall Street! 4 Helpful Halloween Lessons for Investors

Trick or Treat, Wall Street! 4 Helpful Halloween Lessons for Investors

October 06, 2022

With the spooky season already approaching, you may wonder if there is anything that can be done to enter 2023 as financially secure as possible. This is a great time of year to look back —and forward — to set goals and track your progress. Here you will find four early fourth-quarter tips and tricks that can help investors bring in all sorts of financial treats this Halloween. 

Review Your Year-to-Date Progress

The third quarter of the year ends on September 30. This occasion can be a good opportunity to revisit any progress made on your financial or investment goals for 2022. Even if you have not set any goals yet, it is never too late to choose a few!  

Push Toward Your Goals

After you have reviewed your progress, it is time to look ahead. Can you max out your 401(k) this year? Do you have FSA funds that must be spent before December 31? Once you have reached the fourth quarter, the time for you to make changes to your retirement elections or spend ‘use-it-or-lose-it’ money grows shorter. By taking decisive action now, you will be one step closer to meeting your annual goals.

Start Planning Next Year's Goals

With this year's goals (and your progress) fresh in your mind, you are in a good spot to start outlining goals for 2023 and beyond.

When setting these goals, be sure to ensure they are within your control. For example, while you cannot predict the market's movement, you can control how much you set aside. With this in mind, a goal of saving a certain dollar amount or a percentage of income is more achievable than a goal of reaching a specific dollar amount in investments. By setting achievable goals, you are less likely to grow discouraged along the way if greater conditions change.

Check Your Tax Liability

If you have sold any stocks or other assets held in taxable accounts in 2022, or if you have received other investment income, you may owe extra capital gains taxes when 2023 rolls around. The fourth quarter is useful to review any taxable sales to see how they will increase (or decrease) your taxes. For example, if you sold some stock at a loss, you could use this loss to offset gains on another stock, reducing your total taxes owed. 

Investment tax rules can be complicated, so it is worth talking to a financial professional if you are unsure about how to reduce your tax liability and to ensure your investments are as tax-efficient as possible.

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

This article was prepared by WriterAccess.

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