Verdin Marketing Blog: It’s Tax Season, and Here’s a Financial Planner’s Advice

It’s Tax Season, and Here’s a Financial Planner’s Advice

We reached out to Ryan Olson, certified financial planner and wealth manager, to learn what people should consider before this year’s tax filing deadline... and the rest of the year.

What should business owners and individuals do before the tax filing deadline hits?

Contribute to your IRA for the 2017 year, if you haven’t yet maxed it out. The IRS allows you to contribute to one of those options for 2017 before the tax filing deadline (unfortunately, filing an extension doesn’t buy you more time for this option). By doing this you’ll start 2018 off right by putting up to $5,500 into retirement savings ($6500 if you’re over 50). Contributions to a traditional IRA may be tax deductible for the contribution year, with current income tax due at withdrawal. Click here for more information.

For business owners, you can establish and contribute to a “SEP” IRA (“Simplified Employee Pension”) before the tax deadline, or by the extension deadline of October 15th. Depending on your income, you can contribute up to $55,000 in the SEP IRA for 2017. Beyond being a good retirement saver, you’ll reap the reward of a $55,000 deduction on your income taxes! Click here for more information.

How will recent tax reform impact 2017 taxes?

Recent tax reform won’t impact 2017 taxes, but it might help you for 2018! You should consult your CPA for individualized advice, but with recent tax reform it appears that many individuals, couples and business owners should have tax savings for their 2018 taxes. This means you should have a game plan for that extra savings. There’s no better time to finish a financial plan than now!

How will recent tax reform impact the economy as a whole?

We expect the markets and economy to remain strong through 2018 for a number of reasons. Tax reform should be a jolt for small-cap and multinational companies, which will help spur the economy forward.

We’re in a prolonged bull stock market, and while this feels great when we see our 401k/IRA/Investment Account statements, it also signals that it may be a great time to take some of your gains and rebalance* your portfolio. By taking gains you may have less invested in stocks, which could lead to two outcomes: (1) the market continues to rise and you miss out on more potential gains, or (2) the market corrects (a nice way of saying it goes down) and you’ve avoided unwanted losses. These decisions should be made with careful consideration in the guidance of a financial advisor, and should be made based on your individual investment profile, time horizon and financial goals.

While we expect the market to remain strong through this year, it’s is what we can’t see that can hurt us. Market downturns often take place when unexpected events occur. How do you prepare for what you can’t see? You better have a plan.

About Ryan Olson

Ryan Olson has 13 years of experience as an LPL financial advisor and wealth manager in San Luis Obispo County. In 2018, he opened his own business, Mission Private Wealth, in Orcutt, CA. Mission Private Wealth offers flexible, customized and innovative services that help clients pursue their desired legacies. You can contact Ryan at missionprivatewealth.com.


*Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

Ryan Olson is a financial planner with, and securities, advisory services, and financial planning offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. Mission Private Wealth is a separate entity from LPL Financial.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance reference is historical and is no guarantee of future results.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

All investing, including stocks, involves risk including loss of principal.

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