One thing is 100% certainty regarding your financial future. Life happens. Insurance protects you from the unexpected, so it does not throw you off your course when life throws a curveball your way. <\/p>\n\n\n\n

There are several coverages available to you, such as life, disability, and long-term care, that all help protect your financial future and ensure your family is protected. <\/p>\n\n\n\n

There are few things worse than getting a letter from the IRS asking for more money. Not a place that is fun to be, for sure. Taxes take a significant portion of our earned income anyway we slice it, so shouldn’t we attempt to reduce the burden of taxes each year? I think so, but so often, it is overlooked.<\/p>\n\n\n\n

When we think of taxes, we often view them as an unavoidable burden and are frustrated with the amount we pay out to Uncle Sam unless we are lucky enough to generate a refund. (Which isn’t really ideal either – we will talk about this later in another post.)<\/p>\n\n\n\n

A financial plan should consider your tax burden so you can maximize how much of your money you get to keep today and in the future. There are many tax-advantaged strategies to minimize your tax burden, such as charitable donations to offset taxable income and maximize contributions to your IRA accounts. <\/p>\n\n\n\n

Let’s take a retirement account, for example. Should you choose a traditional or Roth IRA? They both have excellent benefits for you and are great retirement options, but one primary way they defer is how they affect your taxes. <\/p>\n\n\n\n

With a Roth IRA, whatever you deposit today is taxed today, but the money inside of the IRA goes tax-free as long as you are withdrawing after age 59\u00bd. <\/p>\n\n\n\n

With a Traditional IRA, you receive a tax write-off today for whatever you invest, and then as your IRA grows, the money is taxed as you take it out. <\/p>\n\n\n\n

So the decision is, do you want a tax break now with a Traditional IRA or a tax break later with a Roth IRA? You can also do conversions between the two to lower your taxable income drastically. <\/p>\n\n\n\n

Ultimately your taxes should not dictate your financial plan, but they very much should be weighed and considered when choosing investments, retirement accounts and how they affect your overall goals. <\/p>\n\n\n\n

Remember, tax evasion is illegal; tax is avoidance is smart. <\/p>\n\n\n\n

6) Progress Monitoring<\/h2>\n\n\n\n

Your financial plan needs to have regular check-up periods for you to adjust as life changes or goals shift. Your financial plan is a living, breathing document with the sole purpose of maximizing your probability of achieving your goals. <\/p>\n\n\n\n

By looking at this document regularly and having accountability built into your plan, you are will be able to assess what is working, what needs to be adjusted, and what steps need to be taken. <\/p>\n\n\n\n

I know this is a lot but remember, no step is more important than the next one! You got this!<\/p>\n\n\n\n

Disclosure:<\/p>\n\n\n\n

This material has been prepared for informational purposes only and should not be used as investment, tax, legal, or accounting advice. All investing involves risk. Past performance is no guarantee of future results. Diversification does not ensure a profit or guarantee against a loss. You should consult your own tax, legal and accounting advisors.<\/p>\n","protected":false},"excerpt":{"rendered":"

The mention of financial planning just made some of you start sweating. It can be extremely stressful…<\/p>\n","protected":false},"author":1,"featured_media":279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"aside","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"WB4WB4WP_MODE":"","WB4WP_PAGE_SCRIPTS":"","WB4WP_PAGE_STYLES":"","WB4WP_PAGE_FONTS":"","WB4WP_PAGE_HEADER":"","WB4WP_PAGE_FOOTER":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,33,37],"tags":[],"yoast_head":"\n