It’s back to school time and as the kids head into the classroom it is time for you to sit down and do some financial homework to help prepare for year end. The following are some important notes for you to study.
Please see me during my summer office hours if you want to review in more detail or have any questions.
A Note on Estate Tax1 Limits
Did you know that the estate tax limit rises to $3.5 million on January 1, 2009? This means that a married couple can pass $7 million to their heirs with no estate taxes, but you need to have the right planning tools in place.
Pass the Maximum Deduction1 Test
It is a good time to maximize the deductible contributions that are going into your retirement plans. This will help to ensure that you are not only reducing your year end tax burden, but also dollar cost averaging during these volatile times.
Learn All About Matching Gains and Losses
If you have held an investment for a long period of time you may have an unrealized capital gain. You may also have a loss on investments that have recently declined. A great way to sell a long term gain while reducing your tax burden is to match the gain with a loss. Ask your investment advisor about strategies for matching gains and losses.
You are not necessarily going to get a PhD in financial planning, which is why I am here to help. Feel free to call me with any questions that you may have.
Nick
C. Nicholas Moore
Financial Advisor
1 Representative is not a tax advisor or attorney. For information regarding your specific tax situation, please consult a tax professional. For legal questions, including discussions about your estate planning needs, talk to your lawyer.