Ann Sterling:
It is now time for 4 Your Money. We are joined by John Nelson with NelsonCorp Wealth Management. We welcome you back, John.

John Nelson:
Thank you.

Ann Sterling:
Thank you so much.

John Nelson:
Happy to be here.

Ann Sterling:
Tax deadline is fast approaching. A lot of people have done their taxes, some have not done their taxes. What should we be thinking about right now?

John Nelson:
For those who have not done their taxes, a few items that may be applicable right now, making sure they’ve made IRA contributions if they’re choosing to do so this year to help bring down that taxable income. Also, health savings account contributions, those also can help in terms of saving tax dollars. And just overall, now that we have gotten close to the filing deadline or if you already have, just planning for next year where you now have lots of time to plan for 2020. What changes can be made in terms of contributions to retirement plans at work, things of that nature? And retirees, mapping out what money they are taking from accounts to really smooth out that tax liability rather than the lumpiness that we sometimes see.

Ann Sterling:
We know there’s been so much turmoil as of late with what’s going on with the financial markets regards to the corona virus. Is there anything that we at home viewers should be approaching with their taxes if they haven’t filed them differently?

John Nelson:
Yeah, there are items where markets are significantly down, there’s no doubt about that, both financial markets and the bond side of things. So, if people are investing in retirement plans through work, this can be, even though it doesn’t feel like it, a good time where people are buying in hopefully at much lower prices to see in due time the returns come. Again, it’s very difficult when you’re in it to to have that kind of mindset, but that is a benefit right now.

John Nelson:
And just in terms of the shifts between what accounts you want to be invested in, if you’re going to do some Roth conversions. We talk with clients about this all the time, that there may be windows of opportunity here where you have some room before going into another tax bracket that you could make a Roth conversion, making sure you’re running those numbers. And with a lot of time ahead in 2020, this is a good time to do that.

Ann Sterling:
What about asset locations? Could you share any thoughts with that?

John Nelson:
Asset location is a big one. We spend a lot of time on this in terms of what investments to own and what type of accounts. So, those with longer term expected return, stocks usually fall into that category, owning those in either an IRA or Roth IRA is even better to have that longer expected return in a tax-free world down the road can have a huge impact for those who are saving right now.

Ann Sterling:
John Nelson, thank you.

John Nelson:
Thank you.

Ann Sterling:
If you missed any of this discussion, we will make it available for you right there on ourquadcities.com.