The goal is to identify any last minute adjustments and other activities to minimize our tax burden and position favourably for the future.
Here are some of the actioins I anticipate:
- Maximize 401k contribution available with my employer
- Maximize individual 401k contribution for my company (to the extent #1 doesn't cover it)
- Make retirement contributions for my children (open new account)
- Consider opening and making coverdell education savings account for my children (and contributing) - need to investigate this one further - should broaden the available retirement investments - do we qualify - ask the accountant?
- Finalize / formalize charitable contribution records for this year - we've given away alot ~ $14.5k
- Spend some money ($400) setting up new internet based business venture (initial spending)
- Very possibly moving as many of my accounts as possible from Schwab over to Vanguard and consolidating several duplicative accounts - this will make available more low cost index investment options.
- Possibly liquidate my cash-value insurance investments and move them over to my new investment accounts at Vanguard (non-sheltered).
- I've already sold a good portion of my Shanda Interactive investment (SNDA) - harvest a loss close to $3,000. That money has been reinvested in better performing ETFs. I'll sell the balance in January 2007 to harvest the next loss. If I'm thinking correctly the $3k can be written off against current income - so I'll recover about $1200 of the loss.
- While I'm at it, rollover my IL Bright Start Savings 529 plan to New York's or another state plan.
This could lead to a very paper intensive December. Especially since I'll be travelling for a portion of it. One of my first activities will be to open the various accounts to ensure they will be available before year's end.
Does anyone else have any other tax planning activities to recommend?
Have a great week, Makingourway