Dear Valued Client,
Happy Halloween!
As you know, this is the time of year that ghosts and goblins, skeletons and superheroes come out to say, “Trick or Treat!” It’s a time for hauntings and scary movies; for black cats and things that go bump in the night.
But there’s something else that rears its frightening head around this time of year. No, we are not talking about Frankenstein’s monster. We are talking, of course, about:
Freaky Financial Mistakes
As the year draws to an end, there are a few common mistakes people tend to make with their finances – and they’re scarier than any vampire or disembodied head. So as soon as you finish carving that pumpkin or handing out candy, we recommend turning your attention to the following ghouls:
Failing to budget your holiday spending
Halloween costumes and decorations. Food for the Thanksgiving table. Christmas presents and lights. Travel plans. Spending tends to transform into a real monster during the holidays, faster than a werewolf under a full moon. Create a budget to keep expenses down, and you’ll probably find yourself enjoying more treats and less tricks during the holidays.
Forgetting to sell your investment losers
This is the time of year when it’s good to review your portfolio for any investments with a negative return. Obviously, we tend to prefer winning investments, not losing ones. But investments that do yield a loss don’t have to be scary monsters, because they can still serve as a tax shelter!
The basic idea is this: Capital gains taxes are paid on investments sold with a positive gain during the year. Investments sold at a loss, however, can be used to show reduced earnings on your portfolio. Reduced earnings often mean reduced taxes.
There are some stipulations and regulations to consider, of course. Chief among these is time. In order for the tax reductions to apply to this calendar year, the sale of the investment needs to close before the last business day of the year. So, time is critical.
This process is known as tax loss selling. If you’d like to learn more, please feel free to contact us. We would be happy to discuss your options with you.
Procrastinating on your charitable contributions
There’s no rule that says you must contribute to charity, of course. But if there are any charitable contributions you want to make, it’s best to do it before the end of the year if you want them to count on this year’s taxes.
Before contributing, though, why not schedule a time to talk with us, first? That’s because there are a number of strategies for getting the most out of your charitable contributions. We would love to review them with you!
Going out into the woods by yourself
Okay, this isn’t truly the mistake we mean. But it’s a good segue into the next one! Just as going into the woods alone is a classic horror movie mistake, “going it alone” on your finances is a mistake, too.
Every year, we recommend all our clients come in for a financial review. If you haven’t come in for yours yet, the end of the year is the perfect time to do it! Not only can we review how the year went, but we can begin planning for next year, too. It’s the best way to ensure you stay on track toward reaching your financial goals no matter what scary obstacles stand in your way.
The upcoming holiday season is a wonderful time of year. It’s a time for fun and celebration, for family and friends. But in order to get the most out of your holiday season, take some time to review your finances. And remember: If there’s any way we can help, please feel free to contact us. We would love to setup a time to meet with you!
From all of us here at The Omell Financial Group, have a Happy Halloween!
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Sourced from Bill Good Letters Library
Original by BGM Head Writer Matthew Bailey