With many retirement accounts taking hard hits due to COVID-19, it is vital to make sound investment moves to turn your accounts in the right direction.
DBS Investment Advisers, LLC (DBSIA) has provided the top three financial moves you should make before the end of 2020. The MDA endorses DBSIA to provide wealth management and retirement planning services for MDA members because it specializes in working with dentists.

1. Fully fund your retirement plan. Retirement plans have annual
maximums for deferrals. Deferrals are the contributions made from your
paycheck into an employer’s plan.
• The 2020 deferral limit for SIMPLE IRAs is $13,500 if under age 50, and
$16,500 if over age 50.
• The 2020 deferral limit for 401(k)s is $19,500 if under age 50, and $26,000
if over age 50.
Consult your Sept. 30, 2020, SIMPLE IRA or 401(k) account statements to
calculate how much you have contributed to your plan this year. If you’re
on track to hit the maximum, you’re in good shape! If not, consider
increasing your contribution amount to come as close as you can to hitting
the maximum for the year. This will result in maximum tax efficiency.
2. Rebalance your portfolio. Most investors will have a target asset
allocation—the percentage of their portfolio invested in a given type of
investment. Movements in capital markets often shift the percentage of the
portfolio that is invested in each area. Think of it this way: the type of
investment that is performing the best will increase in value and become a
larger percentage of the overall portfolio. When this happens, it is important
that an investor considers rebalancing their portfolio; selling some of the
overperforming investments at a profit and using the proceeds to buy some
of the underperforming investments. Investors should rebalance at least
annually.
3. Consider adding a cash balance or profit sharing plan. Adding a cash
balance or profit sharing plan allows for higher levels of tax-deductible
funding for key employees than a 401(k) alone. In addition, you have up until
the corporate tax return is due to establish and retroactively fund a cash
balance or profit sharing plan for the 2020 tax year.

To maximize your portfolio, contact Ted Schumann, II of DBSIA at
ted.schumann@dbsia.net or 800-327-2377 to learn more.