End of Year Planning: More Urgent This Year

End of Year Planning: More Urgent This Year

With the pending tax bill undergoing final deliberations, it’s important to most middle-class taxpayers and above to do detailed end of year financial planning.

What planning should you be prepared to undertake? Tax planning for sure. You will have to decide how the new law if passed, affects you and your family. Investment gains and losses may better be used this year or next year depending on the impact of the final bill’s provisions.

Charitable donations may be needed to advance into 2017 because they may be worth more as a deduction than in 2018. This is one issue that more wealthy taxpayers will need to evaluate as it pertains limits on deductions for charity.

Besides taxes, end of year planning can be directed towards estate planning, marital status decisions, and retirement plan contributions for primary and in some cases additional plans if you happen to have a side gig and are a sole proprietor. Talk to your tax preparer quick, just as soon as the tax bill is signed into law. Retirement plans usually have to be opened in the year when you want to make a contribution, but you usually can wait until tax return time to fund your additional contribution.

Another thing to accomplish at the end of the year, especially in today’s heated stock markets, it to look at your asset allocation and see if you’ve become over weighted in equities (stocks) versus a target allocation that’s related to you time left to retire or begin using your investment monies.

And don’t forget your end of year checklist found in Money Magazine, Kiplinger Personal Finance and various blogs on the internet. They can remind you of many things too long to include here. Good luck on checking on your plans. The New Year is fast approaching. Don’t miss this important deadline’s

Jim Ludwick
jim@adviceonly.net

Jim Ludwick is the founder of MainStreet Financial Planning. His varied education and life experiences have enabled him to apply his knowledge and experience into useful solutions for personal financial problems. His writing and broadcasting activities allow him to help many more than just individual clients. He loves a microphone.

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