A small pirouette can make a big difference

One of my favorite holiday traditions is to see The Nutcracker. I haven't performed a plié since I was six, but I like to live vicariously through the dancers and am in awe of their strength and grace. This year, I took my daughter and a few friends to see it on the evening of December 23. And it was one of the best ones I have seen in years! My daughter even agreed with me (a rarity for a tween girl!)

I have been thinking about why—the story was the same, the music was the same, the venue was the same, it was the same dance company and orchestra. There was nothing major that changed this year, although there were a few small changes that I recall. In this show, the dancers' personalities really came through and there was more humor than in past years. The energy was different, and the show seemed more energized. It made for a memorable evening.

So how does this relate to someone's financial situation? Small tweaks can have a big impact! You can start the New Year feeling good because you made some small changes that left you financially more energized.

Five small tweaks to consider for 2023:

  1. Increase your 401(k) contributions—the limit for 2023 is $22,500, a $2,000 increase from 20221
  2. If you have cash set aside, consider moving it to a high yield savings account or money market fund that offers more yield
  3. If you have a high deductible health plan, consider starting or increasing your contribution to an HSA plan, which will reduce your federal tax liability. An individual can contribute $3,850 and families $7,7502
  4. If you are a retiree over 70.5 with an IRA, you can save on your federal tax bill by donating to charities using qualified charitable distributions (QCDs)3
  5. If you may be subject to an estate tax in 2026, when the basic exclusion amount (BEA) is scheduled to revert to its pre-2018 level of $5 million as adjusted for inflation,4 consider making annual exclusion gifts of $17,0005

I love that a few small tweaks made for an even better Nutcracker experience for my daughter and me. Could a small pirouette or two lead to a better financial experience for you? 


1 https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits
2 https://www.irs.gov/pub/irs-dft/p969--dft.pdf
3 https://www.investopedia.com/articles/financial-advisors/032116/how-use-qcd-rule-reduce-your-taxes.asp
4 https://www.irs.gov/newsroom/estate-and-gift-tax-faqs
5 https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax


Abigail Rosen, MS Financial Planning

Abigail Rosen, MS Financial Planning

Partner, Wealth Advisor

Abigail (Abby) Rosen is a CERTIFIED FINANCIAL PLANNER professional with over 17 years of experience in the financial industry. Prior to her career in finance, Abby was an officer in the United States Navy. Abby is responsible for managing client relationships and coordinating all aspects of client service for the team. Abby specializes in working with corporate executives to help them take full advantage of their available benefits, implement in respect to employer stock concentrations and manage their stock option strategies. She has a designation in Global Financial Planning.

She graduated with a Bachelors of Arts from the College of the Holy Cross, and received a Master of Science (distinction) in Financial Planning from Bentley University. She was 2020 Citizen of the Year for her work as Treasurer of the New Jersey Psychological Association, Foundation, is Treasurer of the Harding Township Educational Foundation (HTEF) and a Girl Scout Troop Leader.


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