For most people, the fourth quarter is a good time to consider year-end tax strategies. By implementing a tax strategy now, you can gain additional flexibility you might not enjoy if you wait until late December.
Some examples of tax strategies include: selling securities to match capital gains against capital losses, implementing and contributing to a retirement plan, contributing to an IRA, and giving appreciated assets to charities or to other individuals.
Of course, there are many other ways to help you reduce your taxes, and not all of them are available or appropriate for everyone. While it is important to reduce your tax burden, moves made primarily for tax reasons may not be in your overall best interest. It is important to remain focused on your long-term strategies. For example, taxable investments may earn a better return than tax-free investments even after taxes, and some tax strategies may have a negative effect on other aspects of your financial picture.
If you have questions about which tax strategies might be appropriate for you, please give us a call.