Now that we are past “tax season”, are we doing anything different?  Did we learn anything from the last year or two about being more tax efficient, disciplined with saving for retirement or planning properly with the generations above and below us?  Perhaps the concern of being a future caregiver or planning around an inheritance may have crossed your mind as well.

Some of the more obvious things that may have popped up from filing your taxes:

• Adjusting your budget
• Adjusting your contributions to your employer’s retirement plan or your IRA
• Changing strategies between traditional or Roth options
• Paying attention to investments that incur capital gains
• Keeping better records to obtain maximum deductions

Typically, when we start to make changes in our plans for the better, one thought will lead to another.  Concerning investments, we should be reviewing tax efficiency.  Did we offset gains with losses? Did we compare investment vehicles for tax effectiveness?  For example, it may behoove us to compare different mutual funds and exchange traded funds that are similar in investment strategies but may be more sensitive to capital gains.  And, given that annuities are tax deferred, it may be a viable option.

It's impossible to provide a tax planning guide on one page, however, the point is to spark a thought process that will enable you to simply be aware of the importance of planning with taxes in mind.  As far as working with professionals, it would be ideal if they were in communication not just with you on a regular basis, but with each other when it comes time for the planning.

Peter Janowsky