When is the last time you reviewed your portfolio? Have you audited your life insurance plans lately? How could the election effect your tax bracket? These are only a few questions you should be asking. You don’t want to wait too long to make some of these moves for the end of 2020. Here are a few ideas you should think about as we enter election day.
Convert Your IRA
It’s never a bad time to consider converting some or all of your traditional IRA. At the very least, this is sort of like prepaying your taxes at today’s low income tax rates. Rather than converting into a Roth IRA, you could consider an Overfunded Universal Index Life policy with us. This is broken down on our last blog to learn more on why this could work for you.
Read More: How Converting Your IRA into an Overfunded Universal Life Policy Can Earn You Money
Review Your Debt
Fiscally speaking, 2020 could have been good or bad for you. If you were forced into debt due to the pandemic, it’s never a bad idea to review what you could be doing to stop the bleeding. During tough times, banks and landers are more apt to provide relief-assistance or relief. You may be able to defer payment or refinance to make room elsewhere. An audit of your life insurance policy is a sure way to get an idea of monies that you could be making rather than losing.
Avoid Unwanted Capital Gains
If you own mutual funds in a taxable account, look to see if they will be paying capital gain distributions this year. You may be sitting at a loss with the fund, but they could still distribute gains because of activity within the fund. This is where you should take a deep look at your tax distributions. Depending on the outcome of the election, you may have heard about how taxes on capital gains and other areas could increase drasically.
If you’re feeling a bit nervous about how the election could hurt your portfolio, don’t hesitate to give us a call. There are creative strategies available with many of our customized programs that can help you add value with tax-efficient plannig. Many of our strategies have proven successful to provide less risk and more upside than a traditional or Roth IRA, and simply starting a conversation with us, or having your CNA chat with us is all it takes to get started.