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2016 Tax Olympics: Dealing With Tax Uncertainties (Day 6)

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2016 Tax Olympics: 
Dealing With Tax Uncertainties (Day 6)


As I get older, I'm learning that are some things that are just out of my control. I can exercise seven days a week and a tiny mosquito can give me a deadly virus. I can save all the money in the world and lose it all in a blink of an eye. Yeah, I know my examples are depressing but it is the reality of life. Taxes are just as unpredictable as life. Politicians change tax laws every single year. Just think, five years ago you were not tax for not having health insurance! You can be broke today and win the lottery tomorrow. Are you ready to handle the tax implications of hitting the jackpot? What happens if you inherit money, retire early, sell stock, etc.? Are you ready for the uncertainty of the tax implications of your life changes? I helped a lot of people that just wasn't prepared and got into tax problems, Well, it is best to be prepare for the worst and best. Today's post will deal more with who you should consult with in regards to dealing with tax uncertainties.

BRONZE MEDAL 



Your Lawyer.....if you have any significant assets, you may want to consider getting a will or an estate. You may need to know how your assets may affect the benefactors of your will. An lawyer can help you plan for asset protection. They can structure your will or estate to reduce the tax implications. My advice is don't get into too complex. You need to know and understand what you are getting into. You don't want to be in the news for tax evasion.


SILVER MEDAL




Your Financial Adviser....it is very important to understand your investment portfolio. I'm not saying you should be as knowledgeable as an investment banker. I'm recommending that you don't be afraid to ask a lot of questions. Don't ever let an financial adviser just set up financials accounts for you without you having a basic knowledge of what you are signing up for. What happens if you can't withdraw the money within a certain time; do you get hit with a tax penalty? Finally be honest with the financial adviser about your financial goals. If you want to be able to withdraw money in five years, make sure it will be available in five years.



GOLD MEDAL



Your Tax Adviser....before you set up any financial accounts, have an conversation with your tax adviser. I don't care if you are setting up a simple CD account. There were so many times that I wish my client would have consulted first before making a huge financial decision. Sometimes lawyers and financial advisers don't have your best interest in mind. Always get a second independent opinion about your financial decision. Everyone has a unique tax situation so it is very important to see how the financial decision affects your tax returns. Don't try to keep up with the Joneses.

Stay tuned for tomorrow's Day 7 event: How to deal with Obamacare Tax Penalties and Credits

Name: Jamaal Solomon

   



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