5 Tax-Prep Opportunities Before Year End
Fall is the perfect time to review your financial plan and uncover year-end tax opportunities. In our latest podcast, we highlight strategies like Roth conversions, tax-loss harvesting, and charitable giving.
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This discussion is with Vector advisor Mike Nesheim.
Summary
Fall is a natural time to pause, reflect, and make sure your financial plan is aligned. The change in season is more than a shift in weather — it’s also a reminder that 2026 is just around the corner.
At Vector Wealth Management, we take a comprehensive approach to financial planning. That means looking across a client’s entire picture — investments, retirement accounts, taxes, and more — to identify where thoughtful adjustments can improve long-term outcomes.
Not every strategy applies to every client, but these are the kinds of conversations we’re already having and, when appropriate, the approaches we’re putting into place.
Here are five tax prep areas that may be worth reviewing before year-end:
1. Roth Conversions
For some investors, paying taxes now can provide more flexibility later. Converting a portion of traditional IRA money into a Roth IRA locks in today’s tax rates, potentially reducing future tax burdens in retirement. Whether this makes sense depends on your tax bracket, time horizon, and income strategy.
3. Capturing Capital Gains
Sometimes it’s about realizing gains instead of losses. If you’re in a favorable tax bracket this year, realizing gains strategically can provide benefits — from rebalancing your portfolio to stepping up the cost basis on investments you plan to hold for the long term.
4. Distribution Strategies
The order in which you draw from accounts in retirement matters. Decisions about tapping taxable accounts, IRAs, or other savings — along with how Required Minimum Distributions fit in — can influence both your tax bill and the longevity of your portfolio.
5. Charitable Giving
For those who give, there are ways to make generosity go further. Donating appreciated securities instead of cash or contributing to a Donor-Advised Fund may provide meaningful tax advantages while supporting the causes you care about.
Looking Ahead
The right mix depends on your situation, goals, and your broader financial picture. Taking time this fall to review your personal financial picture can help position you for greater confidence as you head into the new year.
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These discussions aim to spark dialogue about enhancing retirement readiness and making more informed financial decisions. At Vector, we delve into the nuances of scenario planning, offer insights and guidance tailored to each client's unique circumstances. If you or someone you know is pondering their financial future or seeking clarity on their retirement plan, we're here to help.
Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.
Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation.
Past performance is not indicative of future performance. Investments involve risk and unless otherwise stated, are not guaranteed.
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