2007 Year-end Countdown

December 26th, 2007 at 03:50pm Wendy Blair

  Wendy M. Blair, CFSC

With only a couple of weeks remaining in 2007, a check list of things to consider may be helpful for year-end planning. 

• Investments:  Do you have your cost basis records updated on your non-retirement accounts?  If so, is there any tax-loss harvesting that is available to you in your portfolio?  Tax-loss harvesting is realizing losses to offset realized gains.  Consider re-balancing the investments in all of your portfolios (both retirement and non-retirement accounts).  Simplistically, rebalancing forces you to sell high and buy low.  Do you have children between the magical ages of 18 and 23, then?  If so, their capital gain tax rate is going up in 2008, so consider taking gains for this age group in 2007.
• Planning:  When was the last time you reviewed your last will & testament and trust?  When was the last time you made up a current list of all of your assets with current values?  How are your assets titled?  Is it time that you updated your estate plan?
• Gifting:  Would you and others benefit financially and emotionally by making gifts for 2007?  Annual exclusion gifts or charitable gifts?
• Retirement Accounts:  Are you maximizing your contributions?  If not, could your contributions be increased for 2008?  Are you already retired and over 71?  Have you taken your required minimum distribution for 2007?  This must be done by December 31^st.
• Clean-up:  While you are getting all of the above in order, are there records and papers that could be thrown out?  Reorganized? 

Enjoy what you have accomplished and look forward to a prosperous 2008!

Entry Filed under: Gifting, Charitable Giving, Tax, Retirement Planning, Investments