3 Fall Financial Goals

Aug 30 • Financial Planning • 317 Views • No Comments on 3 Fall Financial Goals

By Patrick Amey

It can be a little boring and may require a tax accountant, but I have found that a tax projection in the fall can very beneficial.  At this point in the year, you have received more than half your income, and withheld or made more than half of your tax payments.  The remainder of the year is pretty clear at this point as well.

I tell clients to ask themselves, has anything changed during the year?  Have you had a child, gained or lost a dependent, purchased a home, took a significant gain on a business, recently retired, or had major income changes?

The main purpose of the projection is to see how your tax year is shaping up so you can do some planning.  The most common scenarios I find are these:

1) You are over withholding. This happens frequently when you have children and gain dependents.  Say you project you will be owed a $5,000 refund on your taxes.  Adjust your withholdings now to capture the excess cash flow and put that toward paying down debt, your emergency fund, or other goals.

2) You are now in AMT (Alternative Minimum Tax).  As people make more money, they pay more taxes.  Alternative minimum tax can create a big surprise tax bill come April.  Better to know about it ahead of time and plan while you still can.

3) You have retired.  Upon retirement you tend to have more control of your income.  You determine the amount you receive for spending and where it comes from.  This is a prime time to complete Roth IRA conversions.

For help with your specific planning situation, schedule a meeting by clicking below, contact Patrick Amey –pamey@makinglifecount.com, or call (913) 345-1881.

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