In a recent “Mesirow Monday” segment on WGN’s Your Money Matters with Jon Hansen, Mesirow Wealth Advisor Jennifer Gartenberg shared a year-end checklist of financial strategies for individuals and families. With the holiday season in full swing and markets posting strong gains, Gartenberg emphasized three key areas for year-end financial planning: maximizing charitable giving, reviewing asset allocation, and leveraging 529 college savings plans.

1. Charitable Giving: Maximize Impact and Tax Benefits

• Three Ways to Give: Donate cash, appreciated stock, or make a qualified charitable distribution (QCD) from your IRA.
• Appreciated Stock: Donating stock that has increased in value allows you to avoid capital gains tax and claim a deduction for the full market value.
• Qualified Charitable Distribution: People 70½ or older can donate directly from their IRA to charity, lowering taxable income.
• Upcoming Tax Law Change: Starting January 1, 2026, the first 0.5% of income donated to charity will not be tax-deductible. For example, on $200,000 income, the first $1,000 of donations will not receive a tax benefit.

2. Asset Allocation: Rebalance After Market Gains

• Review Your Portfolio: Strong market performance may have shifted your intended allocation (e.g., from 80/20 stocks/bonds to 90/10). Check your current 401(k)s, IRAs, joint accounts and trust accounts given market gains and potentially changed life circumstances.
• Rebalancing: Consider booking gains and rebalancing to maintain your desired risk level, especially in non-retirement accounts.
• Tax Timing: Gains realized before year-end are taxed in April; waiting until January can defer taxes, but market conditions may change.

3. 529 College Savings Plans: A Smart Holiday Gift

• State Tax Benefit: Illinois residents can receive a state tax benefit for contributions to 529 plans.
• Gift Options: Friends and family can contribute to a child’s 529 plan, making it a meaningful holiday gift.
• Plan Names: Illinois offers Bright Directions and Bright Start 529 plans, which make gifting easy.

Gartenberg encourages individuals to consult with a Wealth Advisor to ensure their strategies align with personal goals and changing regulations. By acting now, families can maximize benefits and start the new year on solid financial footing.

Visit WGN Radio 720 to hear the remaining 10 tips for your year-end financial checklist.

Mesirow Wealth Management is the firm’s founding capability, connecting clients to what matters today and across generations. The firm’s Wealth Advisors are differentiated by their personal, comprehensive wealth planning, expert investment selection and exceptional service. We invite you to learn more at mesirow.com/wealth.