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Are You Prepared Financially For The New Year?

We all know December 31 is the deadline for lawmakers to reach a deal on averting the “fiscal cliff” and the specter of paying higher taxes in 2013. The end of the year also presents all of us with a valuable opportunity to re-examine our finances to take the best advantage of current tax laws and prepare for the future. Many of us may have forgotten that, no matter what happens with the fiscal cliff, there are several things we can do before the end of the year in order to pay less taxes and put us in a better financial situation in 2013.

According to WealthTrust Arizona, a top-tier wealth management firm with offices in Scottsdale and Chandler, there are five areas to consider in the waning days of 2012:

  • Charitable donations: If you want to take advantage of the tax benefits of making a charitable donation, your donation must be made to a qualified organization before the end of the day on December 31. Do not forget to save your donation receipt.
  • Flexible spending and dependent care accounts: If you have contributed to a flexible spending account (FSA) or a dependent care account this year, make sure the account is emptied before the end of the year. Due to the IRS “use it or lose it” rule, you will forfeit any money remaining in the account.
  • Selling investments: If you have investments you plan to sell in the near future and you do not think a fiscal cliff deal will be reached before January 1, you might want to consider selling those investments now, because capital gains taxes will go up next year.
  • Year-end bonuses: If Bush-era tax cuts expire on December 31, rates will go up the next day. If you receive a year-end bonus, it will be taxed at the current rates. However, if you think you might be in a lower tax bracket in 2013, you might want to consider deferring your bonus until after the New Year, to put yourself in a more advantageous tax situation.
  • Energy-efficiency upgrades: If you are planning on making energy-efficient upgrades to your home or business, you might want to consider fast-tracking them this month to take advantage of the many federal and state tax credits which are available.

If you have any questions or concerns about these or other ways you can be prepared financially for 2013, please contact WealthTrust Arizona at (480) 483-7300.

About WealthTrust Arizona

WealthTrust Arizona is a fee-based investment advisory firm specializing in the integration of investment management with estate planning for high-net-worth individuals and families. Services include portfolio management, estate planning, asset and lifestyle preservation, investment taxation planning, access to trust and estate documentation preparation, business succession planning and more. The professionals at WealthTrust Arizona are frequently sought out by national media outlets such as The Wall Street Journal, Forbes, The New York Times, CNBC, SmartMoney, Kiplinger’s Personal Finance, Fox Business Network and others to share their thoughts on matters that impact affluent investors. For more information about WealthTrust Arizona visit www.wealthtrust-arizona.com.

 

DISCLOSURE: WealthTrust Arizona is a fee-based investment advisory firm that specializes in integrating portfolio management with estate planning for high net worth individuals and families. Services include portfolio management, estate planning, asset and lifestyle preservation, taxation concerns, access to trust and estate documentation preparation, business succession planning and more. The professionals at WealthTrust -Arizona are frequently sought out by the national media such as The Wall Street Journal, Forbes, New York Times, CNBC, BloombergRadio, and others to share their thoughts on matters that impact our clients.

Given the recent events impacting investors and their financial security, we would welcome the opportunity to provide a second opinion for anyone who would like to have a check-up on their investments, financial plan or estate plan. If you know of anyone who may have a concern with their current advisor or current investment portfolio, we encourage you to share our contact information with those that could benefit from a complimentary review.

Advisory services offered through WealthTrust Arizona, a registered investment advisor. WealthTrust Arizona does not engage in the trust business in the state of Arizona or in any other jurisdiction. Not FDIC insured. Not bank guaranteed. May lose value, including loss of principal. Not insured by any state or federal agency.

 

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