Let’s Talk… Year End Tax Strategies!
Here at Memorial Wealth Group, we believe it’s not just about what you make, it’s about what you keep. As we go into the end of the year, it’s a good time to review your tax plan and make sure you are optimizing your taxes. Failure to create a tax efficient strategy can hurt your savings efforts and even delay your retirement. Here are some things to consider:
1. Harvest losses / gains proactively for tax savings. Look at where you stand with regard to losses and gains. Maybe sell a loser in your portfolio to offset a large gain that you had. Also realize that markets are at an all-time high and capital gains are at an all-time low. It may be time to cash a highly appreciated stock while these conditions exist.
2. Employ tax-free gifting strategies. If you think taxes are going to be a problem next April, it may be time to gift to your favorite charity before the end of the year.
3. Invest in a college savings plan for the little ones. Instead of giving toys that they are going to play with one time, consider starting a state-sponsored 529 plan. In many cases, there are significant tax incentives for contributions to a state-sponsored 529 plan and with the cost of tuition going up by >5% a year, this is a must do for parents.
4. Lastly, maximize tax-advantaged savings accounts: 401K, IRA & Roth. Most people think once they’ve maxed out their 401K contributions or IRA contributions, they are no longer able to save on a tax-advantaged basis. This is often not the case and there are other options to consider, such as a Mega Roth/ Roth 401k.
The content in this material was created for educational and informational purposes only and is not intended as an investment advice.
The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
