1. Have you met your 2010 savings goal? This year is particularly challenging, but it's more important than ever to be disciplined about achieving your investment objectives.
2. Set a realistic Christmas budget going into the season. Although everyone wants to be generous with loved ones this time of year, in this tough economy it's downright fashionable to be more cautious with holiday spending.
3. Have you funded your IRA? If you have not yet sat down with us to discuss ROTH vs. conventional IRAs, please call now to beat the ROTH IRA conversion deadline of December 31. Although the issues are complex, it may be advantageous to switch to a ROTH if you are currently in a high marginal tax bracket. Speak to a qualified advisor before deciding.
4. If you are aged 70 1/2 or more, have you taken your required minimum IRA distribution (RMD)? For 2010, the IRS will charges steep excise taxes if you neglect to take out your minimum. Don't forget, RMDs can be used to fund year-end charitable deductions.
5. Are you or a loved one at or near age 65? From now through December 31 is the Medicare Open Enrollment period. Because of the new healthcare reform bill that passed earlier this year, you have more choices than ever. Suzan Kuddes of United Healthcare Medicare Solutions says, "You should consider a no-cost Medicare Advantage plan. It covers you much like a supplement and has extras thrown in such as prescriptions, extra vision coverage, a hearing aid credit, even a gym membership. If this is  a fit, you can save the money you're spending on a Supplement and Part D plan.  Medicare pays United Healthcare  to administer this plan so they don't have to charge you anything extra. Who would you rather have helping you with a claims issue - United Healthcare or Medicare?" Questions? Contact Susan here.
6. Do you have a Flexible Spending Account with your employer? If you don't spend up to the amount you have set aside tax-free, you'll forfeit the rest. Be sure you are on track to use all your flex dollars for eligible childcare and healthcare expenses.
7. Have you had any major changes in tax-deductible expenses this year? Whether you are self-employed or bring home a paycheck, now is the time to evaluate whether you've put enough aside for taxes to avoid a major surprise on April 15. Sure, everyone likes to get a tax refund, but it's bad financial planning to give a free loan to Uncle Sam. If you added a child, taken on a larger mortgage, or made a major gift to charity, you may need to adjust your exemptions on your paycheck to get better cash flow now. In the same way, if one of your children has flown the nest, or you've downsized homes or paid off a mortgage, you may need to have more taken out of your pay or face penalties next year. Talk to your CPA to see if you need to make a change.
8. Bush Tax Cuts are expected to expire on December 31 and most experts predict the top marginal tax bracket will return to pre-2001 levels. If you are at or near the top tax bracket, you may want to push major charitable contributions into 2011. Talk to your CPA before you make any big decisions. Keep that in mind when reviewing the next two tips.
9. Clean out those closets now and donate to charity. Be sure to get a receipt! You can no longer get away with a lump sum estimate for donating used clothing and household items. You'll need to itemize goods and quantities by a estimated market value. The Salvation Army provides this handy guide to determine value. The government has clamped down on these deductions, so keep good records. Tina advises to take photos to document your donations as well. The IRS even stipulates that to qualify for a deduction, the items need to be in good or like-new condition, so don't use it as an opportunity to unload your junk on the deserving poor. To see the current rules, visit here.
10. Sit down with your spouse or partner and determine your budget and priorities for charitable giving for the remainder of the year. Keep in mind that you'll save capital gains tax if you gift appreciated stock instead of cash. Call us if you need guidance.
11. In light of predicted tax rate hikes, 2011 might be a good year to "double down" and push major tax deductions and expenses into next year. For example, you can pay both 2010 and 2011 property taxes in 2011, which might give you some tax savings overall. Do not make any major financial decisions solely on the basis of saving taxes and always speak to your CPA to assist you with these and other tax planning issues.
12. Do you own stock options? If you are thinking about exercising your ISOs or NQSOs before the end of the year, you should ask your CPA to analyze the Alternative Minimum Tax (AMT) implications.
13. Do you own highly appreciated stock? Capital gains taxes are going up next year. Consider gifting stock to children or relatives in a lower tax bracket--they'll have to hold the stock at least a year before selling. Or, give them to charity and avoid cap gains altogether. We'll be looking at your portfolios to do some harvesting of gains and losses to maximize tax advantages going into 2011. Call us for more information!

That's our Baker's Dozen tips for year-end financial planning. Do not hesitate to call if you have any questions! We are always interested in hearing your feedback on this or other wealth management topics. Write in to Michael@tannerywealth.com.