With the end of the year coming up faster than the uncle you owe a phone call, it’s the perfect time to talk about something we all love: taxes. Okay, maybe “love” is a stretch—but there’s something to be said for getting ahead of tax planning before you find yourself on April 14th wishing you’d made a few moves when you had the chance. At Paragon Wealth in Doylestown, we’re all about helping you avoid that very moment of regret—the one that leads to the classic line: “I should have done something about that.” Let’s dive into why a little proactive planning now can save you from future headaches, and maybe even save you some money too.
Why Should You Care About Tax Planning Now?
It’s easy to ignore tax planning until the last minute, sort of like ignoring the pile of laundry you meant to fold two weeks ago. But while laundry may simply wrinkle with procrastination, taxes can get a bit more complicated—and costly. Many tax-saving opportunities come with deadlines that arrive well before December 31st, and once they’re gone, they’re gone. You wouldn’t wait until the day before a flight to check if your passport is expired, right? Treat your tax strategy the same way: a little foresight today makes for a much smoother journey later.
Tax planning isn’t just about avoiding surprises—it’s about making decisions that can genuinely impact your financial health for the better. With a proactive strategy, you may be able to reduce your tax liability, keep more of your hard-earned money, and save yourself the headache of scrambling for answers come tax season.
A Few Tax Moves You Might Not Want to Miss
You’re probably wondering what exactly there is to do this time of year when it comes to tax planning. Here are some of the most common strategies that could help lighten your tax load:
- Maximize Contributions to Retirement Accounts
If you’re able to contribute more to a 401(k) or IRA, you might not only save for your future self—who hopefully gets to spend their days lounging by a pool somewhere—but also reduce your taxable income for the year. Deadlines vary, but for employer-sponsored accounts, it’s best to have a plan well before year-end.
- Make Charitable Donations
Donating to causes that matter to you isn’t just good for the soul—it’s also good for your tax return. Whether it’s cash, clothes, or that old treadmill you’re tired of looking at, charitable donations made before December 31st can help you get a deduction. Just remember to save those receipts.
- Tax-Loss Harvesting
This one sounds complicated, but it really just means selling some investments at a loss to offset gains elsewhere, potentially reducing your tax liability. You may even buy back the same or similar investments later, maintaining your strategy while benefiting from the tax deduction.
- Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA)
Have an FSA through your employer? You might want to check your balance, as some plans require you to spend down those funds by the end of the year or risk losing them. If you have an HSA, consider making additional contributions before year-end. HSAs provide great tax advantages, letting you save for future medical expenses with a triple tax benefit—contributions are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are tax-free.
- Review Tax Withholding
Adjusting your withholding can help ensure you’re not overpaying or underpaying your taxes throughout the year. While this might not have a significant impact for this year, it can help you avoid surprises and better manage your cash flow next year.
The Benefits of Getting Proactive
The beauty of proactive tax planning is that it’s not just about the numbers; it’s about feeling in control of your financial future. When you’re ahead of the game, you’re making decisions because you want to—not because you have to. I love helping clients see the bigger picture and understand how even small moves can add up to meaningful differences down the road.
Most people hear “tax planning” and think it’s something reserved for the ultra-wealthy or that they’ll just deal with it when tax season rolls around. But the reality is, there’s often more opportunity than you think to make strategic choices. Whether it’s ensuring your retirement contributions are where they need to be, making that charitable donation, or simply organizing your paperwork before the year turns, a bit of planning can go a long way.
Let Us Help
If you’re not sure where to start, that’s okay—tax planning can feel like a different language, full of obscure terms and confusing rules. But that’s why I’m here. At Paragon Wealth in Doylestown, we’ve helped plenty of people navigate year-end tax planning, and we’re happy to help you too. No stress, no judgment—just the goal of making sure you don’t end up thinking, “I should have done something about that.”
Give me a call at (215) 348-3176, drop me an email at jonathan@paragon-wealth.com, or stop by our office in Doylestown before year-end creeps any closer. A little effort now can mean a lot less hassle come tax season—and maybe even some extra cash in your pocket to celebrate when all is said and done.
About Jonathan
Jonathan values the confidence given to him by his clients and works hard to provide individualized recommendations, focusing on his clients’ long-term goals and objectives. He graduated from The United States Military Academy at West Point in 2002 with a B.S. in Systems Engineering and International Relations. Jonathan was a proud officer in the US Army before entering the finance industry. Having earned the Certified Financial Planner (CFP®) certification, he now uses his financial knowledge to help both civilians and active duty/veterans in business and personal services as a financial planner.
In his spare time, Jonathan enjoys playing golf, working out, traveling, and donating time and effort to many local Veterans Service Organizations (VSOs). He and his wife, Linda, reside in Chalfont, PA, with their little dog, Canelo.
The opinions voiced in this material are for general information only and are not intended to provide specific investment or tax advice, or recommendations, for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Any securities mentioned here are for informational purposes only and are not recommendations to buy or sell any security.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Paragon Wealth Management and Great Valley Advisor Group are separate entities from LPL Financial.
Jonathan Childs is solely an investment advisor representative of Great Valley Advisor Group and not affiliated with LPL Financial. Any opinions or views expressed by Jonathan Childs are his own and are not those of LPL Financial.