Tax Season is Here! – January ’23 Update

Financial markets started the year off well. US small cap stocks and international large cap stocks fared best, but US large caps and bonds also increased.

Tax Season is Here!

When the ball drops in Times Square and Ryan Seacrest wishes us Happy New Year, it kicks off the most eventful part
of our firm’s calendar – tax season! While most people consider filing taxes a necessary evil, we see it as a unique opportunity to offer a valuable service. After all, investments and taxes go hand-in-hand. Investing isn’t just about making long-term returns; it’s also important to minimize the tax burden associated with those gains.

There are many questions to consider when you look at taxes and investments together, such as:

  • Adding New Money – What is the best type of account to fund based on my current tax bracket?
  • Distributing Money – How much should I take out of each of my accounts during retirement, and in what order? Is my tax situation likely to change over the coming years?
  • Investment Types – What types of investments are the most tax-efficient?
  • Harvesting – Can I sell investments with losses to reduce taxes? Can I realize gains at attractive capital gains rates? Should I donate any of my investments, rather than cash, to charitable organizations? Should I realize gains to rebalance my portfolio?

These are all questions we’re happy to discuss with you at any time. While now is the time for collecting documents and filing your tax return, that is just one part of the process. Throughout the year, our team can advise you how to plan effectively with both investments and taxes.

If you would like to talk more about how taxes can impact your portfolio, let’s talk. As always, we are thankful for you, and the trust you put in our team.

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