Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

Have you reviewed your tax and investment planning for your portfolio lately?

Investment Planning

This is the second installment of 2013 and Beyond Tax Planning
which can also be downloaded from our eBook library.

It can be difficult to stay on top of all the changes, especially the changes at the end of 2012. You are probably wondering if it is time to meet with your tax advisor.

Here are some helpful facts you will want to consider regarding your tax planning, as well as investment planning, before meeting with an advisor:

  • If your modified adjusted income is below $250,000 (for joint filers) or below $200,000 (for singles), then no changes in your investment planning are needed.
  • If your modified adjusted income is above those thresholds, you will need to consult with your tax and investment advisor, as several tax saving opportunities exist in 2013 and beyond.

With tax rates increasing in 2013 plus the additional 3.8% tax on net investment income for individuals with modified adjusted incomes above $250,000 for joint filers ($200,000 for singles), you’ll want to take a moment and review the following.

Six ideas to discuss with your advisor(s):

  1. Speed up real estate sales with a gain expected. Bypass installment sale deferral if that is an option.
  2. Make a Roth conversion. Use the 18 month free look to see if the conversion works for your situation. Consider this option each year to stay within the lower tax bracket, at the same time taking advantage of the Roth IRA opportunities. Read my eBook: Roth IRA.
  3. Selling winners out of your portfolio, purchasing them back (watch wash sale rules) if you believe in stock.
  4. Consider changing your investment allocation between qualified and non-qualified accounts to limit the effect of the 3.8% Medicare surtax.
  5. Increase your allocation towards Tax-Free (Muni) bonds.
  6. Start taking dollars out of your IRA prior to the year you reach age 70 1⁄2, or when required minimum distributions (RMD’s) are required.2013 & Beyond Tax Planning

Interested in learning more about tax and investment planning ideas for 2013 and beyond. Download my FREE eBook: “2013 and Beyond Tax Planning”.

Looking for a Naples CPA to assist you with your planning?  Call me at (239) 384-9688 (Naples) or (239) 768-5008 in (Fort Myers), or contact me online. Follow me on LinkedIn and Twitter, and LIKE me on Facebook.

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.



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