September 2010 -Year end planning
Year end Planning? - Where did the summer go?!?!! I could have sworn the kids just got out of school last week, and here it is football season again… In any event, time waits for no man as they say, so lets get down to it:
· Review financial plan assumptions – any family changes? Spouse decided to return to school? Having another child? Job change? Move during the year? Refinance your mortgage? Take out a loan to buy a car? Decide you are ready to retire? All of these have impact on your plan and should be reviewed at least annually. If you haven’t done it already this year, the clock is ticking.
· Look at your investments - Update your investment balances, and reallocate if necessary based on your current risk tolerance and investment strategy. This may also be a good time to look at your investments and see if it makes sense to take some losses, which can be used now or in the future to offset capital gains. (this may become even more important in future years when the Cap Gains tax goes back up)
· Fund your retirement – although some retirement savings allow you to hold off until you actually file to make your deposit (IRA contributions – April 15th), other plans require a bit more forethought to get set up before the end of the year (Keogh plan).
· Get started on your taxes - Tax season may seem like a distant event, but spending a few minutes organizing now will pay dividends down the road. Compile any large purchases, charitable donations, or other financial events that may provide deductions or credits when tax season arrives. Capturing this list now will save you the headache of trying to remember these events and searching for paperwork later.
· Implement year end strategies to reduce taxes due – Example: consider prepaying property taxes, or state income taxes to increase deductions this year.
Upcoming tax dates:
Sept. 15
· Estimated tax due. Your third-quarter estimated tax payment (using Form 1040-ES) for 2010 is due.
Oct. 15
· Income tax return due. Your 2009 income tax return is due if you filed an extension request using Form 4868.
Dec. 31
· Deduction deadline. The last date to make payments that can be deducted from your 2010 return.
· Keogh plan deadline. The last date to establish a Keogh plan so you can deduct a Keogh plan contribution on your 2010 return. (you still have until the filing deadline to actually make your contribution
· Review financial plan assumptions – any family changes? Spouse decided to return to school? Having another child? Job change? Move during the year? Refinance your mortgage? Take out a loan to buy a car? Decide you are ready to retire? All of these have impact on your plan and should be reviewed at least annually. If you haven’t done it already this year, the clock is ticking.
· Look at your investments - Update your investment balances, and reallocate if necessary based on your current risk tolerance and investment strategy. This may also be a good time to look at your investments and see if it makes sense to take some losses, which can be used now or in the future to offset capital gains. (this may become even more important in future years when the Cap Gains tax goes back up)
· Fund your retirement – although some retirement savings allow you to hold off until you actually file to make your deposit (IRA contributions – April 15th), other plans require a bit more forethought to get set up before the end of the year (Keogh plan).
· Get started on your taxes - Tax season may seem like a distant event, but spending a few minutes organizing now will pay dividends down the road. Compile any large purchases, charitable donations, or other financial events that may provide deductions or credits when tax season arrives. Capturing this list now will save you the headache of trying to remember these events and searching for paperwork later.
· Implement year end strategies to reduce taxes due – Example: consider prepaying property taxes, or state income taxes to increase deductions this year.
Upcoming tax dates:
Sept. 15
· Estimated tax due. Your third-quarter estimated tax payment (using Form 1040-ES) for 2010 is due.
Oct. 15
· Income tax return due. Your 2009 income tax return is due if you filed an extension request using Form 4868.
Dec. 31
· Deduction deadline. The last date to make payments that can be deducted from your 2010 return.
· Keogh plan deadline. The last date to establish a Keogh plan so you can deduct a Keogh plan contribution on your 2010 return. (you still have until the filing deadline to actually make your contribution