Lazetta Braxton, CEO of The Real Wealth Coterie, joins TheStreet to dish out some last minute finance advice before the new year.
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00:00So what are some of the year-end moves we should be making in order to set us up for a good new year?
00:08I really encourage people to take a look at their paycheck and see what they have contributed to their
00:15retirement accounts year-to-date
00:18We're getting close to the end of the year. So it may be difficult to reach those limits
00:23So I'll share what the limits are for 2025. So for every day
00:29401k 403b etc retirement plans an individual can contribute up to
00:3523,500 for 2025 so now check with your payroll
00:40Department if you are on 26, you know pay periods you can divide that amount
00:46over the course of the year and start setting a goal if you can't reach the
00:5223,500 at least you know what it is for next year
00:55The other idea is for those who are aged 50 or older you get a catch-up contribution as well, too
01:00And now with the new law for those who are 60 to 63, you can have a catch-up limit up to
01:0811,250 I know these sounds like big numbers
01:11But it's good to have goals and work towards them and then for those who are eligible for IRAs
01:18That's another way to invest but that's based on your adjusted gross income
01:22There are big numbers, but they're only big numbers if you don't make them digestible, right?
01:26If you take a look at your paycheck and say, okay
01:29This is the goal that I want to make at the end of the year out of every paycheck
01:32It is this amount and that is actually may not be that daunting of a challenge if you look at it
01:38This is how much money I need to take out of my paycheck
01:41Every paycheck. Yeah, and that's why I said know how many pay periods you're paid
01:47Some people are paid monthly. Some people are paid twice a month or the typical 26 pay periods in a year
01:53So if you take that number, let's say twenty three thousand five hundred
01:57It's roughly like seven
01:58I mean nine hundred dollars a pay period and why I have people look at their paycheck because they usually are
02:04Contributing based on a percentage so they have no idea what that dollar amount equates to so you're right
02:10Do it in bite-sized pieces
02:12Per paycheck know what that dollar amount and keep moving towards those annual IRS limits. Are there any
02:20more
02:21retirement planning
02:23tips or tools that we should be looking at besides that as we head into the end of the year and going to the
02:30now I mentioned the the IRAs that you can invest in the nice thing about those is that you can contribute up to the
02:37Tax filing date of April 15th when we're talking about employer plans
02:42That is a hard stop at the end of the year 1231 pay period
02:47Some investors are also looking at ways that they can sell some securities or stocks that haven't done so well
02:54So they're taking the loss and applying it to some of the capital gains that they may have heard by holding ETFs in the like
03:01Exchange traded funds, so that's called tax loss harvesting. That could be a great strategy for investors as well, too