Give Thanks, and Gain Clarity by Year-End

November 2024 - Give Thanks, Gain Clarity

Building on the Basics by Seizing Opportunities

Last month, we discussed General Neyland's first Game Maxim: "The team that makes the fewest mistakes will win." We talked about how avoiding errors, whether in football or when making financial decisions, is key to long-term success.

This month, we turn our attention to the second maxim: "Play for and make the breaks. When one comes your way - SCORE."

Think back to 2016, when the Vols stunned Georgia between the hedges. With just seconds left on the clock, Josh Dobbs launched a Hail Mary, and Jauan Jennings came down with the game-winning touchdown. That unforgettable moment happened because the Vols stayed prepared, took the chance when it came, and executed with precision.  

The same principle applies in financial planning. Success isn’t just about avoiding mistakes - it’s about being ready for opportunities and taking decisive action when they arise. Whether it’s a career breakthrough, a market dip, or an unexpected windfall, having a solid financial strategy ensures you’re ready to seize those breaks.

With our Purpose Built Planning process, we’re here to help you stay prepared for life’s opportunities, big or small. By staying focused, cutting through distractions, and following a disciplined approach, you can turn opportunities into meaningful progress toward your goals.  

Just as Neyland’s teams capitalized on their moment, let’s make sure you’re ready to do the same.

Make a Year-End Tax Checklist (and Check it Twice!)

Here are some questions to ponder:

1. Has your financial advisor talked to you about how to save money on your tax bill in April?

2. Has your portfolio been fine tuned to account for your marginal tax bracket or to offset capital gains that you’ve realized this year?

3. Has your CPA called you to develop a list of things that you need to do before year-end to minimize your tax risk?

4. Have they created a tax projection for you to determine how much you will owe in April 2025?

I remember years ago meeting my former CPA in April only to tell me that I could have saved significant money if I had only done something in the previous tax year. I responded that I would have done that if you had told me! The problem with traditional tax advice is that on balance it’s looking backwards, not forwards.

We’ve had dozens of meetings in the past few weeks creating 2024 income tax projections and making recommendations on ways to reduce their taxable income before the end of the year. Is it time you change your routine and make a checklist to put money back in your pocket?

> Read more here

Kevin Painter
Managing Partner
LeConte Wealth Management

Your Hard Work Deserves Better

Would it make sense to take one more step to maximize the hardwork you put in throughout the calendar year?

Year-end tax planning isn’t just about saving money in the short term - it is about aligning your financial actions with your long-term goals while making the most of the tools available to you (hence, our Purpose Built Planning process).

Whether it’s leveraging charitable giving, taking advantage of lower tax rates on long-term capital gains, or planning around required minimum distributions (RMDs), there are meaningful ways to lower your effective tax rate and keep more of your wealth working for you.

To learn more, read here.

Alex Willard, EA
Purpose Built Planning Director
LeConte Wealth Management

Recently Published On Financial Friction

 > Automation: Free Your Mind

Alex Willard, EA
Purpose Built Planning Director
LeConte Wealth Management 

> The Importance of Updating Your Beneficiaries

Kevin Painter
Managing Partner
LeConte Wealth Management

Economy In Focus

The Data: 

• 3.3 - Core CPI
• 4.42 - 10-year Treasury Yield
• 93 - Percent Increase in Government Spending

Commentary:

Inflation continues to dig in its heels, with Core CPI ticking up to 3.3% - its 42nd consecutive month above 3%. This marks the longest stretch of elevated inflation since the early 1990s. Transportation costs have jumped 8.2% over the past year, while auto insurance premiums have skyrocketed 53% over three years, leaving many bracing for higher renewal rates. Housing inflation remains persistently high, mirroring trends not seen in decades.  

Meanwhile, the 10-year Treasury yield has climbed from 3.66% to 4.42% since the Fed’s first rate cut nearly two months ago (any bond takers?). This unusual increase during a rate-cutting cycle underscores inflation’s stubbornness and signals market skepticism about the Fed’s ability to tame it. Reflecting this uncertainty, Fed Funds futures now anticipate a higher terminal rate for 2025, climbing from 2.8% to 3.8%. A December rate cut remains uncertain, with odds at a coin flip. The Fed has emphasized its intent to cut rates “gradually,” but the timing and pace remain up in the air.  

Adding to the complexity is the government’s runaway spending. Over the past year, the federal budget deficit exceeded $2 trillion, with tax revenues up 60% but spending surging an eye-popping 93%. As Hoy pointed out in his recent blog post, Washington doesn’t have a revenue problem - it has a spending problem. Tackling inefficiencies will be a monumental task, with significant political hurdles to approving meaningful cuts.  

In this environment, resilience and strategy are key. The economic data reminds us to stay disciplined, stay informed, and stay prepared for the unexpected.

LeConte In The News

On November 7th, Kevin and Alex (pictured with Stephan Wilson from Allevia Technology) proudly represented LeConte Wealth Management at the Maryville Junior High School 9th Grade Career Fair. They shared insights about the world of financial planning, investing, and the role of financial advisors in shaping strong, secure futures.  

This event was more than just a career fair - it was an opportunity to inspire the next generation of leaders and expose them to the wealth of possibilities within our community. By connecting with these bright young minds, we hope to spark curiosity and equip them with the knowledge to pursue their goals with confidence.  

At LeConte, we believe in investing in the future - one conversation at a time!

Contact us

865-379-8200

[email protected]