If you’re wrapping up or have recently finished your 2017 taxes, the topic may be the last thing you want to think about right now. With the December 2017 changes to federal tax regulations, however, now may be the best time to think about how changing your financial plan or investment strategy can impact your 2018 taxes.
“Income tax efficiency is an important component of your long-term financial plan, as it may lead to improved cash flow over time,” notes Tamara Telesko, Director, Wealth Planning Strategies with TIAA. “Having an improved cash flow can mean having more dollars saved and available for your retirement years. With comprehensive tax reform having passed for 2018, consider whether your current strategy still works or whether it requires some adjustments.”
Here are three key items investors should be discussing with their financial and tax advisor.