What Issues Should I Consider Before The End Of The Year?

This checklist outlines several key planning issues that individuals should consider before the end of the year:

Investment and retirement accounts: It is important to assess whether it would be beneficial to match capital gains against investment losses in taxable investment accounts and to ensure that any required minimum distributions (RMDs) are taken.

Tax planning: Individuals should review their prospects for higher or lower income in the future and assess where they sit relative to their tax bracket. This is a good time to consider strategies that can fill out tax brackets for the current year and potentially offer benefits in the future.

Charitable giving: For those who are charitably inclined, there are several strategies that can help reduce tax liability that should be considered based on individual circumstances.

Business ownership: If an individual owns a business, tax reform has created opportunities surrounding pass-through income from the business to their personal return. Accelerating or deferring business expenses can present another opportunity for tax planning.

Cash flow and savings: It is important to review cash flow prior to year-end to determine if there is room to fund a 529 plan for children or grandchildren, or if it is possible to save more in an employer-sponsored retirement plan like a 401(k).

By considering these planning issues before the end of the year, individuals can take advantage of opportunities to reduce taxes, maximize savings, and plan for a financially secure future.

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Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.