March 1, 2023 | David Lawrence, CFP®, AIF®My wife and I know many people who have gone on cruises before and loved the experience. As they share the details of their trip, they make all those listening – including us – excited to book a cruise of our own. One reassuring factor for passengers on the cruise is the captains of the ships have years of experience to make the trip safe. As the saying goes, “the captain of a good ship is always looking a mile ahead.” The same can be said for a trusted financial advisor who is “looking a mile ahead” to plan your financial future. This is true for many aspects of financial planning – including taxes.
On our March podcast, Mark and Todd shared that many people look at April 15th as part of tax planning season. However, the 15th is rather the tax filing deadline. Like many cruise ships looking ahead for the best route to take, your long-term tax situation will be better off with proactive planning done by a financial advisor who is not only looking a mile ahead, but rather at the entire trip. While it’s valuable to plan for your tax situation each year, it’s even more important to plan for your entire lifespan. Below are some of the key areas a financial advisor can leverage to create an effective long-term tax plan.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.Investing involves risk including loss of principal. No strategy assures success or protects against loss.This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.