If there’s one time of year we’re apt to have money and finances at the top of our minds, it’s tax season. In fact, a recent survey found that about 50% of respondents use tax season to be more proactive about managing their broader wealth and financial situations.
The Business Journal reports in “Taxes done? Not so fast… Here are 3 things to think about” that there are several things to think about in terms of how you’re managing your wealth for the long term before you blot taxes from your consciousness. Active engagement with your money can make a real difference when it comes to achieving your financial goals. Rather than selective amnesia with tax season, try some financial awareness throughout the year because tax season provides a great opportunity for people to think more holistically about wealth management and financial planning.
With the return freshly filed, all your financial information is right in front of you. It’s a great time to review and update financial goals, as well as your plan on how to achieve them.
- Retirement Savings Plan. Review your retirement savings plan to be certain you’re on track for your goals and to check that you’re contributing enough to get the maximum benefit if you have an IRA or 401(k).
- Charitable Giving. Examine your charitable giving plan to determine whether you should up your donations to ease tax burdens.
- Estate Planning. Look at your estate plan and make sure it’s current. According to a recent survey, just 19% of investors take the opportunity to develop or assess their estate plans when reviewing tax documents—even though this is a vital part of a holistic financial plan.
While many people are on the right track when it comes to their financial plan, there’s always room for improvement. Before you put everything back in the file cabinet, take time to think about your financial situation, goals, and a strategy to get there.
Reference: The Business Journal (April 18, 2016) “Taxes done? Not so fast… Here are 3 things to think about”
Author Bio
Kim Hegwood
Managing Attorney
Kim Hegwood is the Founder and Managing Attorney of Your Legacy Legal Care®, a Houston-based estate planning and elder law firm she established in 1998. A graduate of South Texas College of Law, Kim was inspired to focus her practice on elder law and estate planning after watching her own grandparents struggle with the challenges of aging. With nearly 30 years of experience, she helps families with wills, trusts, powers of attorney, Medicaid planning, and asset protection.
Kim is a Certified Dementia Practitioner and a member of the National Academy of Elder Law Attorneys, and her firm has been named Best Trust & Estate Law Firm by the Houston Chronicle. A mother of three, she spends her free time with her children and grandchildren and volunteers with several local charities.
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