Fifth Third Bank (NASDAQ: FITB) offers strategy guides and video
to help individuals and families consider proactive year-end tax
planning and charitable giving as 2015 comes to a close. The three
areas to consider include reducing your taxable income, maximizing
tax-qualified plans and charitable giving.
1. Reducing your taxable income
In order to offset taxable income, the most important strategy
for investors to consider is tax-loss selling and taking advantage
of underwater securities.
“Selling stocks, bonds or mutual funds that have lost value
should be a priority this time of year,” said Jeff Korzenik, chief
investment strategist for Fifth Third Bank. “When done in
conjunction with rebalancing a portfolio, investors can minimize
the tax consequences and impact.”
Additionally, Korzenik suggests taking interest rates into
account when planning for 2016. Gradual interest rate increases are
being monitored for next year, which are typically associated with
the latter half of an economic expansion. With this in mind,
investors should expect lower returns from the bonds portion of a
portfolio and be more selective in their equity investments as they
plan for next year. For more information on reducing your taxable
income, please click here.
2. Maximizing tax-qualified plans
To wrap up 2015, Melissa Register, senior wealth manager for
Fifth Third Private Bank, suggests fully funding any tax-qualified
retirement plans including 401Ks, IRAs, 403Bs and others. The
maximum annual contribution amount for a 401K or 403B is $18,000
and an additional $6,000 for people ages 50 years and older. A
simple IRA allows an annual contribution of $12,500, with an
additional $3,000 for those 50 and older.
“In order to maximize tax-qualified plans, clients can make
adjustments on their remaining paystubs for the year or apply a
year-end bonus,” said Register. “The added benefit is this will
reduce your income for the year and place you in a lower income
bracket.”
Register also noted that business owners should spend time with
their CPA to decide whether to accelerate or defer expenses into
this year or next year. For more information on maximizing
tax-qualified plans, please click here.
3. Plan for charitable giving during the
holidays
When planning for charitable giving, two best practices are to
engage your family and be strategic.
“It should come as no surprise that more than half of charitable
giving by families is done in one month of the entire year;
December,” said Glen Johnson, managing director of Mirador Family
Wealth Advisors. “But this leaves little time to think
strategically about where cash or other complex assets are
contributed.”
By starting the discussion as families gather for the holidays,
notably during Thanksgiving, families can identify goals and make
joint decisions on how and where to allocate philanthropic
donations. For best results, families should not only focus on
closing out 2015, but developing a strategy for 2016 as well.
Johnson notes it’s also an opportune time for families to discuss
with younger generations about why they give.
Additionally, Johnson suggests using assets that have
appreciated in value as gifts for charitable donations to avoid
capital gains. “People often don’t think about real estate,
collectibles or art as potential gifts, which could ultimately fund
new a program or service for a charity,” said Johnson. For more
information on charitable giving, please click here.
For more information on tax planning and other tips or to
identify a Fifth Third advisor to assist with your year-end tax
planning, visit www.53.com/privatebank. If you are a
journalist/blogger and would like to add these videos or guide to
your website, please email sean.parker2@53.com.
About Fifth Third Bank
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. The Company had $142 billion in
assets and operates 1,295 full-service Banking Centers, including
99 Bank Mart® locations, most open seven days a week, inside select
grocery stores and 2,650 ATMs in Ohio, Kentucky, Indiana, Michigan,
Illinois, Florida, Tennessee, West Virginia, Pennsylvania,
Missouri, Georgia and North Carolina. Fifth Third operates four
main businesses: Commercial Banking, Branch Banking, Consumer
Lending, and Investment Advisors. Fifth Third is among the largest
money managers in the Midwest and, as of September 30, 2015, had
$297 billion in assets under care, of which it managed $25 billion
for individuals, corporations and not-for-profit organizations.
Investor information and press releases can be viewed at
www.53.com. Fifth Third’s common stock is traded on the NASDAQ®
Global Select Market under the symbol “FITB.” Fifth Third Bank was
established in 1858.
This information is intended for educational purposes only and
does not constitute the rendering tax or legal advice. Please
contact your tax advisor or attorney for advice pertinent to your
personal situation.
Deposit and credit products provided by Fifth Third Bank. Member
FDIC.
Fifth Third Private Bank is a division of Fifth Third Bank
offering banking, investment and insurance products and
services.
Fifth Third Bancorp provides access to investments and
investment services through various subsidiaries. Investments,
investment services, and insurance: Are Not FDIC Insured Offer No
Bank Guarantee May Lose Value Are Not Insured By Any Federal
Government Agency Are Not A Deposit Insurance products made
available through Fifth Third Insurance Agency, Inc.
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Fifth Third BankSean Parker, 513-534-6791
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