Seven Week Warning, Rut Row!!

Don’t look now, but there are only seven, that’s right, count ‘em, weeks left in 2022. Seems impossible. So with that in mind and holidays, parties, shopping, travel, moving to Georgia to vote again, and anything else you may have ahead, here are seven ideas to consider to reduce your tax bill, increase your cash flow, add net worth, and make you the ‘duty expert’ at your local water hole.

1.      Check your 401K contribution. Have you pushed in all you can afford or maxed out? Every year tons of folks forget to adjust their deferral to push in extra dollars and reduce taxes with their last 3 or 4 paychecks.

2.      Did you fund or establish a Health Savings Account (HSA)? If you are in a qualifying High Deductible Health Insurance Plan, you may put away a deductible $3,650 single; $7,300 family; and an additional $1,000 if you’re over age 50. Withdrawals are tax-free for qualified medical expenses, of which there are many at any time going forward.

3.      Push collectibles into 2023. If you have already had a really big year, Congrats!! Try to push receivables into 2023 and lower your tax bill for 2022.

4.      Consider putting in a retirement plan. It’s not too late to establish a single 401K, or one-person pension in 2022. A last-minute SEP can be funded right up to your filing date, but the better, bigger deduction plans must be established now (2022). They can be funded in 2023 for this year. Only the 401K deferral must be funded in 2022.

5.      Have you considered a conservation easement or solar, historical, or special mineral tax credits? You should!! If your tax bill is a whopper, you should discuss these with your tax advisor. These federal programs reduce tax liability in favor of funding investments in these sectors. These purchases must be made in 2022 to receive tax benefits.

6.      Ok, the markets have not been anything to write home about this year. Sometimes you have to make lemonade out of lemons. Tax Loss Harvesting is the act of selling a stock or security you’ve owned for at least twelve months to take the capital loss now. Those losses go into a ‘bucket’ where they stay as long as needed to offset long-term capital gains in the future. A small amount can also be taken as a write-off against your earned income every year as well. This strategy is helpful short term and very helpful in the long term on your 1040.

7.      And finally, are you selling anything for a profit before the end of the year? STOP!! The sale of a business interest, stock, collectible, real estate, employer stock inside your retirement plan, you name it, at a profit will generate a taxable capital gain. A new financial method, The Charitable Payraise™, may save you a ton in capital gains taxes, generate a huge increase in after-tax cash flow from the proceeds, and support your favorite charity at the same time! Reach out to for additional information, no-cost analysis, and a complimentary consultation to see if this solution is right for you.

So, there they are!! You are now the water cooler expert! The clock is running! Talk to your accountant. Talk to your financial advisor. Talk to us!! We are here to help. Let us help make this a very happy holiday season by saving you money on taxes now and creating a brighter financial future at the same time. Ho! Ho! Ho!

Join us this Friday at our webinar to learn more.

William R. Lloyd, CFP®, ChFC, AIF®, CPFA, M.Ed. is a thirty-year financial advisor specializing in advanced tax strategies.

About The Charitable Payraise®: By leveraging our unique method, retirees will significantly reduce their taxes, increase after-tax cash flow, and create a living legacy of good works via charitable giving. To illustrate these improvements, our new proprietary tool, The ROQS™ Method app will project potential scenarios related to your holdings by using ROQS™, compare & contrast ROQS™ versus traditional strategies, and forecast long-term results for both the retiree and charity(s).