As 2018 draws to a close, it\u2019s time to begin organizing your finances for the new year. To help you get started, we\u2019ve put together a list of key planning topics to consider.<\/p>\n\n\n\n
Savings and investments<\/strong><\/p>\n\n\n\n Revisit your retirement contributions. Review how much you\u2019re contributing to your workplace retirement account. If you\u2019re not taking full advantage of your employer\u2019s match, it\u2019s a great time to consider increasing your contribution. If you\u2019ve already maxed out your match or your employer doesn\u2019t offer one, boosting your contribution could still offer tax advantages. Now is also a good time to ensure that your portfolio allocation remains in line with your objectives.<\/p>\n\n\n\n Take stock of your goals. Did you set savings goals for 2018? Realistically evaluate how you did, and think about your goals for next year. If you determine that you are off track, we\u2019d be happy to help you develop and monitor a financial plan.<\/p>\n\n\n\n Health and wellness<\/strong><\/p>\n\n\n\n Spend your flexible spending account (FSA) dollars. If you have an FSA, those funds may be forfeited if you don\u2019t use them by year-end. (Some FSAs offer a 2.5-month grace period or the ability to carry over up to $500 into the next year; check with your employer to see if those options are available.) It\u2019s also a good time to calculate your FSA allotment for next year, based on your current account excess or deficit.<\/p>\n\n\n\n If you\u2019re not using an FSA, evaluate your qualifying health care costs to see if establishing one for 2019 would make sense.<\/p>\n\n\n\n Taxes, taxes, taxes<\/strong><\/p>\n\n\n\n Manage your marginal tax rate. If you\u2019re on the threshold of a tax bracket, deferring income or accelerating deductions may help you reduce your tax exposure. It might make sense to defer some of your income to 2019 if doing so will put you in a lower tax bracket. Accelerating deductions, such as medical expenses or charitable contributions, into the current tax year (rather than paying for deductible items in 2019) may have the same effect. In addition, reviewing your capital gains and losses may reveal tax planning opportunities\u2014for instance, harvesting losses to offset capital gains.<\/p>\n\n\n\n Here are a few key 2019 tax thresholds to keep in mind:<\/p>\n\n\n\n Consider the benefits of charitable giving.<\/strong> Donating to charity is another good strategy for reducing taxable income. If you\u2019d like to help a worthy cause while trimming your taxes, it\u2019s worth exploring your charitable goals and various gifting alternatives.<\/p>\n\n\n\n Make a strategy for stock options.<\/strong> If you hold stock options, now is a good time to make a strategy for managing current and future income. Consider the timing of a nonqualified stock option exercise. In light of your estimated tax picture, would it make sense to avoid accelerating income into the current tax year or to defer income to future years? And don\u2019t forget about the alternative minimum tax (AMT). If you\u2019re considering exercising incentive stock options before year-end, have your tax advisor prepare an AMT projection to see if there\u2019s any tax benefit to waiting until January of the following year.<\/p>\n\n\n\n Plan for estimated taxes and required minimum distributions (RMDs).<\/strong> When considering your taxes for 2018, be sure to take any potentially large bonuses or a prosperous business year into account. You may have to file estimated taxes or increase the upcoming January payment. If you\u2019re turning 70\u00bd, you\u2019ll need a strategy for taking RMDs from your traditional IRA and 401(k) plans.<\/p>\n\n\n\n Adjust your withholding.<\/strong> If you think you may be subject to an estimated tax penalty, consider asking your employer (via Form W-4) to increase your withholding for the remainder of the year to cover the shortfall. The biggest advantage of this is that withholding is considered as having been paid evenly throughout the year instead of when the dollars are actually taken from your paycheck. You can also use this strategy to make up for low or missing quarterly estimated tax payments.<\/p>\n\n\n\n Proactive planning<\/strong><\/p>\n\n\n\n Review your estate documents.<\/strong> To help ensure that your estate plan stays in tune with your goals and needs, you should review and update it on an ongoing basis to account for any life changes or other circumstances. If you haven\u2019t done so during 2018, take time to:<\/p>\n\n\n\n Get professional advice.<\/strong> Of course, this list is far from exhaustive, and you may have unique planning concerns not covered here. As you prepare for the coming year, please feel free to reach out to us to discuss the financial issues and deadlines that are most relevant to you.<\/p>\n\n\n\n Whatever your planning may entail, we wish you a happy, healthy, and prosperous 2019!<\/p>\n\n\n\n This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.<\/em> As 2018 draws to a close, it\u2019s time to begin organizing your finances for the new year. To help you get started, we\u2019ve put together a list of key planning topics to consider.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[26],"tags":[],"_links":{"self":[{"href":"https:\/\/www.vectorwealthstrategies.com\/wp-json\/wp\/v2\/posts\/3463"}],"collection":[{"href":"https:\/\/www.vectorwealthstrategies.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vectorwealthstrategies.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vectorwealthstrategies.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vectorwealthstrategies.com\/wp-json\/wp\/v2\/comments?post=3463"}],"version-history":[{"count":1,"href":"https:\/\/www.vectorwealthstrategies.com\/wp-json\/wp\/v2\/posts\/3463\/revisions"}],"predecessor-version":[{"id":5380,"href":"https:\/\/www.vectorwealthstrategies.com\/wp-json\/wp\/v2\/posts\/3463\/revisions\/5380"}],"wp:attachment":[{"href":"https:\/\/www.vectorwealthstrategies.com\/wp-json\/wp\/v2\/media?parent=3463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vectorwealthstrategies.com\/wp-json\/wp\/v2\/categories?post=3463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vectorwealthstrategies.com\/wp-json\/wp\/v2\/tags?post=3463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/p>\n","protected":false},"excerpt":{"rendered":"