I’d like to continue this video series which is a Summer Financial To-Do List.
And today, I want to discuss Streamlining your investments: Tax season was not too long ago, and you may still have nightmares about how hard it was to gather all your 1099s to send to your accountant. If tax season is a cumbersome process every year, it makes sense to consolidate your investments, where appropriate, in order to organize your finances. Not only will this make tax time next year more seamless, but it will also allow you to better manage and track your investments by having all your money at one firm.
You should also assess if you have a tax inefficient investment portfolio. Indications of inefficiency include high turnover within your portfolio, with many trades being placed that may potentially lead to a higher tax bill. Additionally, if you were issued several K-1s this may delay your tax filing.
Now is a good time to reconsider these suboptimal tax holdings and determine if you can implement your investment strategy more tax efficiently. Streamlining your investments may provide far fewer headaches next tax season.