How Taxes Can Help You

3 Ways Filing Your Tax Return Can Help You

STEWARDSHIP CENTS NEWSLETTER

I will be the first to state I don’t like paying taxes but they are a fact of life.  They are not optional.  Bad things, very bad things can happen to those who don’t pay… how about a tax lien or jail.   However, good things can possibly come from filing your return.

About now you are saying, “Luke you are crazy!  How can filing my tax return help me?!!”  Ok, before you delete this and never read Stewardship Cents again, stick with me- let me explain.

Filing your taxes:

1.)    Forces You To Take Inventory and Get Organized (ok, somewhat organized).   Who can’t use a little spring cleaning of financial records?  The process of gathering and organizing to complete your taxes is usually helpful.  Were you reminded of an account you forgot you had?  Did you realize you have too many various accounts?  You have to know what you have and where it is at in order to manage it well.

1.)    Helps You To “Gauge” What the Year Was Like.   Life and your business can get busy.  So busy, that it is hard sometimes to stop and measure things.  Did all of your accounts perform as expected?  Did your insurance premiums increase?  How much did you save for retirement last year?  Did you pay a lot more tax than expected?

“Any enterprise is built by wise planning, becomes strong through common sense, and profits wonderfully by keeping abreast of the facts.”  -Prov 24:3

2.)    Allows You To Plan Ahead.   This is where a CPA who helps you tax plan may be invaluable.  Are there areas where you could have saved more, given more or reduced spending?  Will your situation this year be similar or different from last year and do adjustments need to be made?  Take steps now to plan ahead.

Shortly following tax season, it is common for clients and prospective clients to reach out to me when they realize they need to rollover a prior employer’s 401k, evaluate an old insurance policy or consolidate their accounts to one advisor.  Consolidating your accounts may simplify your life, ease taking an annual inventory and allow for better investment management of your portfolio, since all your holdings can be accounted for and then diversified accordingly.

If one of these areas describes you, reach out to me.  We can casually chat and run through your options.  See, good can come from paying Uncle Sam- even if it is not that much fun.

To Your Financial Success,

Luke Fields, CFP®

Any opinions are those of Luke Fields and not necessarily those of RJFS or Raymond James.  Expressions of opinion are as of this date and are subject to change without notice.