Prepare for Tax Day with a Retirement Planning Consultant
Tax day is coming up, and it’s about time to get tax returns in order and focus on tax savings. Like so many other aspects of wealth management, proactive planning is crucial for a sound tax plan. In this article, we will explore:
- Why you shouldn’t procrastinate.
- How working with an advisor specializing in retirement and tax planning in Houston can help reduce the stress of tax day.
- Doing ample research to find the best financial advisor in Houston, TX, to serve your tax and retirement needs.
ARE YOU READY FOR TAX DAY?
There is no (legal) way to escape paying taxes, and it’s going to be something to factor into all aspects of your financial planning. To ensure that you are prepared for tax day and are taking the proactive approach, make sure that you can confidently check off the following on your tax day checklist:
Organize your relevant paperwork (W-2s, charitable contributions, etc).
Max -out any tax-advantaged accounts before the 2023 tax day.
Consider working with a tax advisor.
Prepare for future tax seasons now.
If you’re expecting a refund, explore options on how you’ll spend or invest it.
There are plenty of things to check off of your checklist before tax day, but the good news is that you still have a few months. So, if you haven’t filed already, be sure to use the additional time that you have in order to ensure you are prepared to reduce your tax liability as much as possible and maximize your refund.
PROCRASTINATION CAN COST YOU DEARLY
Procrastination can be deadly, especially when it comes to deadlines. While you may be procrastinating something without a hard deadline, like hitting the gym or putting pen to paper for that book idea you have, the consequences change when there is a deadline with consequences.
There are several penalties that you will incur if you don’t file on time. First and foremost, if you are set to get a return, taking a small amount of time to file and get things in order could result in thousands of dollars in tax returns. There are not many ways I can think of to earn that much money for a few hours of work, at most.
If you’re on the other end of the spectrum and you owe taxes, then procrastinating and not filing on time can result in you incurring penalties in the form of even more money you will owe the IRS. No one wants to pay taxes, and the only thing worse than paying taxes is paying even more than you have to in the first place. Procrastination has its costs and consequences.
CONSULT A PROFESSIONAL
Financial planning can be stressful, tax planning in particular. One way to reduce the stress of tax day is to consult a retirement planner and see how they can help.
Working with a retirement consultant has many benefits, including presenting all of your options to you in an objective way and helping you to understand them in a way that you otherwise may not have. Working with a retirement planner makes sense, too. Surveys show that out of all types of investment advisors and financial planners, Americans prefer working with retirement advisors over any other type of wealth advisor.
A lot of this has to do with the widespread fear of running out of money in retirement. There are several investment strategies to ensure you will not run out of retirement income, and all of them are going to include proper tax strategies. This begins with being proactive in your tax planning and preparing adequately for tax day. For retirement planning in Houston, consult the advisors at Linscomb & Williams to ensure that your retirement and tax strategies are set to meet your needs.
TAKE TIME TO RESEARCH, AND DON’T PROCRASTINATE!
Tax planning is an aspect of financial planning that should not be taken lightly. Consulting a retirement advisor is a great first step, although make sure that you do your due diligence and do the appropriate research regarding any wealth management firms you are considering.
Doing online research can be a great starting point, but consulting with friends and family is another good way to get a good sense of the type of investment management that a professional or firm has to offer.
Try to avoid procrastinating by setting an appointment with an advisor once you have found one you like, especially during tax season. Advisors and accountants, particularly ones specializing in tax-related matters, tend to get busy this time of year, and you want to ensure that you can meet with an advisor who can help.
Start a conversation with the advisors at Linscomb & Williams in Houston to help you prepare for tax day.