Essential Holiday Financial Conversations

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Discuss important financial topics with family this holiday season. Enhance your financial literacy and plan for the future. Learn more at SafeMoney.com. Ah, the holidays … an annual time of food, fellowship, and fun with family, friends, and loved ones. Everyone returns home and catches up on all of the family happenings over the past year. But the holidays can also be stressful and fast-paced, as people have cookies to bake, presents to wrap, and shopping to do. Not only that, they may have various other year-end projects at home or at work. Those who have lost loved ones or who hurt in other ways might also find these times unbearable, since the holiday season tends to be an emotional period. Even so, it’s still an ideal time for families to get together and discuss their financial concerns with their loved ones. Why? Because people usually aren’t as preoccupied by work and day-to-day matters at this time of year. The holiday festivities may be one of the few times when everyone is together. There are also many decisions that must be made before the year ends. Important Year-End Decisions to Cover These decision points span many areas, from estate and financial planning to tax planning . It’s also advantageous to “check the boxes” to ensure that your other important life information — such as powers of attorney — is in order. As you map out the conversation your family will have during the holiday season, be sure to review these areas for accuracy. Ideally, you will review them with your financial advisor , other professionals including your attorney and tax advisor, and whomever will be key players in your estate: Tax Issues If you are thinking about converting your traditional IRA or qualified plan into a Roth account, take heed. Pay attention to how long this will take, along with the tax ramifications that come with it. A Roth conversion may be a good idea if it aligns with your retirement timeline. The Tax Cuts and Jobs Act lowered marginal tax rates, so taxes are essentially “on sale” for now. However, marginal tax rates will return to their higher levels in 2026, unless an extension is passed.   You might want to take advantage of the lowered marginal rates, as a Roth conversion may be less costly now. Be sure to conf