Tis The Season To Capitalize

Tis The Season To Capitalize
?DECEMBER 2022 - 'TIS THE SEASON TO CAPITALIZE

DIFFICULT YEAR, BUT NOT A WASTE

?The 2022 calendar year has been difficult to navigate. With the Federal Reserve's agressive actions, 9%+ inflation and now layoffs trickling through the economy; many are searching for a glimpse of hope.

 

...and hope we have found!

 

Though painful to get to this point, many of our clients are getting bonds for Christmas! Yields increased to heights we haven't seen in a decade and our trading team is deploying these high yield opportunities into client portfolios.

 

Are you asking what is next for you and your household? How you and your household can capitalize on the opportunities?

 

Our process, Purpose Built Planning, is designed to alleviate concerns, focus on your household goals, and remind you of what you can control.

 

For more information, give us a call (865) 379-8200 or visit our website at lecontewealth.com



?TAX-LOSS HARVESTING - OPPORTUNITIES AWAIT

?As year-end approaches, tax planning becomes top of mind for many investors. One of the most popular strategies to implement is tax-loss harvesting. Tax-loss harvesting involves selling positions in a non-qualified account (i.e individual, joint) at a loss, and using that realized capital loss to either offset realized capital gains and/or offset up to $3,000 in ordinary income. Before 2022, finding positions to use with this

strategy was difficult, as investors experienced one of the longest bull runs in history. However, with most markets down between 15-20% through the first 10 ½ months of the year, opportunities are plentiful.

 


To highlight the tax savings this strategy can offer, let??s walk through a hypothetical example. 

 

>For the example and an important limitation, click here

 

Wes McNeillie, CFP

Tax and Planning SpecialistLeConte Wealth Management


?ALEX CELEBRATES 6 YEARS WITH LECONTE!

?Alex's 6th year work anniversary is this month. He started out as a tax intern with us back in 2016 and after the Summer he graduated, he was hired on full-time as a Planning Associate. He's since worked his way up to Client Advisor. In his current role, he provides support to clients in tax preparation, tax strategy, financial planning and supports, as well as, manages client relationships.

 
He embodies the LeConte Wealth core values of trust, stewardship, community involvement and a commitment to integrity in all things. Help us congratulate him!


HOW DO I BENEFIT FROM INFLATION?

?There is no way to ignore the inflation we are seeing in our economy. We are seeing increasing costs in housing, food, and almost everything we buy. Reports show that Consumer prices rose 8.2% for the 12 months ended September 2022. These numbers are painful, but not everything with inflation is a negative to your financial position.

Some of the positives and opportunities that have come about due to inflation include: 

  • For those receiving Social Security payments, they will see an increase to their 2023 payment of 8.7%. On the average benefit, that??s a $141 per month increase or an annual benefit increase of almost $1,700. That is significant considering the prior year??s increase was 5.9% making for a combined 14.6% over the last two years. For the approximately 70 million Social Security beneficiaries, this should make the impact of inflation a little less on their monthly budget.  
  • Higher yields on fixed income investments: We have been living with historically low interest rates since 2007-2008. These low rates have made income production in conservative portfolios challenging, but we are now seeing rates that often allow for sufficient income production in retirement. If you??ve not talked with us about the opportunities we??ve identified, now would be a great time for us to have a conversation. 
  • As inflation percentages are established, the IRS adjusts many of their items on a yearly basis to match that escalation. There are over 60 tax provisions that were addressed in Revenue Procedure 2022-38. Some of the more impactful to the average person??s tax situation are:
    • The Standard Deduction: This popular deduction for many taxpayers has seen significant increases starting with the Tax Cuts and Jobs Act of 2017 under Donald Trump. The 2023 married filing jointly standard deduction will see a jump of $1,800 from the 2022 amount to $27,700. In my practice, this has been one of the most significant items to tax returns over the last few years, and it??s only growing in amount. 
    • Gift Tax Exclusion - >Click here to keep reading

 

Jon Dockery, CPAManaging PartnerLeConte Wealth Managem


?RECENTLY PUBLISHED ON FINANCIAL FRICTION

?>It's Beginning to Cost a LOT like Christmas

 

Kevin Painter

Managing Partner

LeConte Wealth Management

 

>Short-Term vs Long-Term Thinking

 

Hoy Grimm

Managing Partner

LeConte Wealth Management


?LECONTE IN THE NEWS

?LeConte wins the Canned Peas Division! 

 For the 8th time (5th consecutive), LeConte has won the United Way of Blount County "Can"paign food drive competition. Thank you to our team and our clients who help make this happen!

 

GRIMM TALKS INTEREST RATES ON WBIR CHANNEL 10?

LeConte Wealth founder, Hoy Grimm, was asked by WBIR to give some insight into the recent hike in interest rates and the impact that it has on your credit card(s).

He also tapped into our most recent client presentation on how to recession proof your finances. "You're not going to control if you get a layoff at work, you're not going to control what interest rates do," Grimm said. "Control the one thing you can, that's your own spending."

??Contact Us

865-379-8200

info@lecontewealth.com


?Copyright 2022 LeConte Wealth Management, LLC. All rights reserved.

Advisory services offered through LeConte Wealth Management, LLC. an SEC registered investment adviser.