Cup of Joe

Markets in November

As the end of the year approaches, it’s a great time to assess your financial strategy and ensure you’re maximizing key opportunities. In this month’s Cup of Joe, we cover important year-end topics, from boosting your 401(k) contributions to understanding market volatility in light of elections. Join us as we walk through these essential steps to wrap up the year on solid financial footing and set yourself up for a successful 2025.

401(k) Contributions:

Contribution limits went up in 2024 to $23,000 from $22,500, so if you were deferring a fixed amount automatically and never adjusted it, make sure you catch that! If you are over 50 years old you are eligible for catch-up contributions of an extra $7,500.  So, if you have not done it in the past, or you did not set them as part of your automatic deferral, or maybe you just turned 50 this year, make sure to take advantage if you can.

HSA and FSA Contributions:

If you’re participating in an HSA or an FSA, be sure to confirm your contributions… and tell your advisor about them!

Gifting:

Start the wheels in motion now.  Initiating gifting before the end of year rush is definitely recommended.

Election:

Expect any market reaction to election to be short term. In the long-term, elections to not determine anything; policy making affects the market more deeply.  And what is important for you to focus on is how current policy affects your personal situation.

The Market:

Be prepared for, but not worried about, volatility. The S&P 500 Index is elevated but economy seems to be on solid footing. Inflation is lower, in the target range, consumer spending is resilient and holding.  Don’t be surprised if the market hits some turbulence.

Diversification:

Diversification spreads out the risk and casts a wide net to capture opportunities when we find ourselves in a market that is both supported by fundamentals yet has pockets that are over bought.  And remember, diversification offers the most likely stress-free path to investing while also achieving growth.

Consistency in Investing:

In investing, consistency is king.  A consistent mindset makes a diversified portfolio completely durable to whatever the world throws at it.

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Securities offered through Osaic Wealth, Inc. Member FINRA/SIPC. Advisory Services offered through Osaic Advisory Services, LLC (Osaic Advisory). Osaic Wealth and Osaic Advisory are separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth and Osaic Advisory.

By: Joe Gallemore, CIMA®, CExP™

Partner & Director of Investment Management