The short answer? Now.
The longer answer? Now. And here’s why:
Far too often, I see people waiting until December to tackle money moves that will help them take full advantage come tax season. But December’s a hard month to get things done and so waiting until the last minute is a roll of the dice. Will the players that you need to help you put those moves into action be available? Tough to say. Will that check to a non-profit get deposited in time? It’s a toss up.
Waiting until December also means you’re cramming a lot into a single month and that’s not always the wisest move, either.
Even worse, some people wait until they’re filing their taxes to start thinking about tax moves. I get why that happens, but there’s a big issue with this one: You’re too late! The fiscal year has come and gone.
However, now through the end of October is an excellent time to think about your lifetime tax savings and make strategic moves to optimize your finances ahead of tax season.
Here are just three (of many) things to consider when thinking about potential opportunities to be strategic with your money:
Should you consider a Roth IRA conversion? And if so, how much?
Are you on track to max out your 401(k) by December 31?
And for those 50+, have you incorporated catch up contributions into that total?
For the 70.5+ crowd, is now the time to make a qualified charitable distribution?
Tax planning can feel daunting, but that’s where we come in. If you’d like some help either implementing some of these moves, or would like a consultation to discuss the best strategies for your unique circumstances, give us a call — just remember not to wait until December!