The clock is ticking, days are getting shorter and cooler, and it is hard to believe that Thanksgiving and Christmas are just around the corner. But from a financial perspective, we have less than two months to do tax planning, so what should you be thinking about?
In this episode, Peter Raskin discusses the importance of year-round tax planning. He highlights five key considerations: understanding one’s tax bracket, Roth conversions, charitable giving, gifting strategies, and realizing capital gains and losses. Peter emphasizes the benefits of Roth IRAs and the impact of charitable gifts on communities. He also explains the tax implications of holding mutual funds and the strategy of realizing capital gains and losses.
Peter discusses:
- Why tax planning should be done year-round, not just at year-end
- Five tax planning considerations that are impactful over a longer period
- Tax bracket planning and understanding marginal tax brackets
- The importance of working with a tax advisor throughout the tax planning process
- Advantages of Roth conversions and avoiding higher tax brackets
- The tax advantages of charitable giving and gifting
- Realizing capital gains and losses throughout the year as a tax strategy
Related: The Rise and Fall of Inflation