2012 Closeout Checklist
We’re now in the home stretch for 2012. Less than 30 days to go! When December 1st arrives each year, the number of questions I receive triples as the pressure brought on by the end of the year deadline mounts. In the overwhelming majority of situations with our Relaxing Retirement members, if we’ve all been properly strategizing and implementing throughout the year, these year-end checklists simply serve to confirm what we’ve already done. However, we all lead a busy lives and managing your financial life isn’t always at the top of your list that you draw up each and every morning with your cup of coffee. Given that, if you haven’t already, here are some strategies to be thinking about and acting on before December 31st:
Given this, and the likelihood that capital gains tax rates will increase in general, you want to take a very close look at your unrealized capital gain or loss positioning in your Non-IRA accounts right now.
Additionally, go back to Schedule D on your 2011 return and verify if you have any capital losses that you may have carried forward to 2012.
Armed with this all of this information, you can make a fast, educated decision once a budget and capital gains tax rates are agreed upon for 2013.
See an upcoming article for specific recommendations no matter what Congress and the President do.
As you’ve heard me mention numerous times in the past, I see this way too often, i.e. itemized deductions and personal exemptions that are higher than your taxable income. What this indicates is that you have the opportunity to receive more taxable income and still pay no federal income taxes.
Where? Withdraw more taxable funds from your IRA that otherwise would have been taxable.
Remember, your goal is NOT to restrict your spending or to “budget”. It’s simply to “account” for what you’ve spent and be confident with your numbers.
If I had to spell out one commonality amongst my most successful Relaxing Retirement Members, it’s that they all know their numbers and they can tell you exactly where they are.
The reason they’re so financially confident, and in turn successful, is that they’re in control of their finances vs. the masses who are completely out of control and in constant reaction each day.
They’re not locked up in a room studying investments and tax laws all day. Quite the opposite!
They’re actually the ones who travel the most and have the most fun without being concerned about money. And, the reason they’re not concerned is they have a clear handle on what it costs for them to live exactly the way they want.
If you have any questions as to where you personally stand in relation to any of these, please don’t hesitate to call me. I look forward to helping you.
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