Why Plan?
Careful planning throughout the year can give you a solid handle on your finances, from honing your investment strategy to optimizing your charitable giving. We've created this calendar to help you cover all the bases, month by month, throughout 2015, and have included a list of updated annual tax limits for the year. Should you need assistance, our wealth advisors are happy to help.
| Q1 | Q2 | Q3 | Q4 | |||
|---|---|---|---|---|---|---|
January — Develop an Investment Strategy
- Define your goals and objectives
- Develop a plan to reach your short- or long-term goals
- If self-directed, focus on asset allocation, diversification and investment selection/location
- Conduct annual strategic review with your wealth advisor
February — Create a Budget
- Define essential and discretionary expenses
- Evaluate sources of income (regular vs. not)
- Establish a liquid emergency fund
- Evaluate dispassionately
March — Organize Taxes
- Gather tax paperwork (W-2s, K-1s, 1099s, receipts)
- Submit to tax professional
- Always double- and triple-check
- File for an extension?
- Notice high-tax investments
April — Focus on Retirement
- Open and fund an IRA (for prior and/or current year)
- Convert to a Roth IRA
- Revisit your 401(k) deferrals
- Consider tax-deferred annuities or deferred compensation plans
May — Revisit College Savings Plan
- Compare college savings vehicles (529s, Coverdell, UTMAs, etc.)
- Fund with a lump sum or periodic contributions
- Educate yourself on the cost of education
June — Review Estate Plan
- Establish main estate documents: will, trust, health care directive, power of attorney
- Update beneficiaries
- Determine annual gifts (utilizing the annual gift tax exclusion)
- Consider advanced estate planning techniques (GRAT, ILIT, etc.)
July — Do a Mid-Year Portfolio Check
- Compare asset allocation to target
- Conduct a performance review
- Understand performance attribution
- Rebalance, if needed
August — Review Debt and Insurance
- Refinance your mortgage
- Evaluate credit card and other consumer debt facilities
- Review life, disability, long term care, homeowner's, umbrella, auto insurance
September — Consolidate Accounts
- Consider the benefits: simplicity, convenience, lower fees, fewer passwords, better control, higher service level
- Consolidate vs. aggregate using Mint, Quicken, etc.
- Roll over old 401(k) plans
October — Start Year-End Tax Planning
- Manage investment gain and losses (e.g. tax-loss harvesting)
- Review stock option or RSU exercise strategy
- Revisit AMT
- Utilize tax-credits/deductions (e.g. education, energy credits, etc.)
November — Review Health/Workplace Benefits
- Watch for your annual benefits open-enrollment window
- Review all coverage and options and update if needed
- Elect 401(k), ESPP, deferred compensation plan participation
- Flexible Spending Accounts (FSAs) for health/dependent care expenses
December — Give to Charity
- Review the charities you support
- Optimize ways to give through Donor Advised Funds (DAFs) for the benefit of easier recordkeeping and granting
- Gift long-term capital-gains property
Items above are for information purposes only. Your individual tax or estate planning situations may differ and you should consult your tax and legal advisor for such guidance.
Key 2015 Annual Limits Relating to Financial
| Elective deferrals 401(k), 403(b), etc. Catch-up contribution (for age 50+) |
$18,000 $6,000 |
| IRA or Roth IRA contribution limit Catch-up contribution (for age 50+) |
$5,500 (no change) $1,000 (no change) |
| Roth IRA phase-out (married filing jointly) | $183,000–$193,000 |
| Social Security wage base | $118,500 |
| Annual gift tax exclusion | $14,000 (no change) |
| Gift Exclusion to a non-US citizen spouse | $147,000 |
| Estate/Gift/GSTT tax basic exclusion | $5,430,000 |
| Maximum estate tax rate | 40% |
| Highest marginal fed. income tax rate (39.6%)—Single | $413,000 |
| Highest marginal fed. income tax rate (39.6%)—Married | $464,850 |
| Personal exemption ($4k) phaseout—Single/Married | starts at $258,250/$309,900 |
| Itemized deduction phase-out (up to 80%)—Single/Married | $258,250/$309,900 |
| Kiddie tax limited standard deduction | $1,050 |
| Alternative Minimum Tax (AMT) exemption—Single/Married | $53,600/$83,400 |
| Flexible Spending Account | $2,550 |
| For California Residents: CA College Access Tax Credit Fund1 | available in 2015/2016 |
Donate to the California College Access Tax Credit Fund—A new California personal and corporate tax credit became available last month and is effective for tax years 2014 through 2016. Making a cash donation to the College Access Tax Credit Fund before year-end will not only help fund additional Cal Grants to eligible students, but could mean as much as 88% (vs. 53% for donations to other charities) in tax savings for every dollar contributed. Interested donors must submit an application that takes up to 10 days to process, so act early if you'd like to make a contribution by year-end.
Source: Based on current published tax rates from IRS and CCH web sites. Individual tax rates may differ based upon current specific tax situation.
The Fine Print
This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice, before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction. Past performance is not a guide to future performance. Opinions and estimates are as of a certain date and subject to change without notice.
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