As summer winds down and we begin looking toward the final months of 2026, taxes probably aren’t at the top of anyone’s list. But this can be one of the most valuable times of the year to review your finances.
At Barnwood Capital Management, we believe investment and tax decisions should begin with your goals—not simply with what the market is doing. A year-end review can help identify decisions that may need to be made before December 31.
Start with your income. Compare year-to-date income with what you expected. A raise, bonus, business income, retirement distribution or other change could affect your 2026 tax picture. This is also a good time to review withholding and estimated tax payments.
Review retirement contributions. Check contributions to your employer retirement plan and determine whether increasing them makes sense. Also consider whether a Traditional or Roth IRA contribution fits your situation. Business owners and self-employed individuals may want to evaluate SEP IRA contributions, which can potentially provide significant retirement savings and tax-planning opportunities.
Get organized early. Gather records for charitable contributions, business expenses and other potentially deductible items. Business owners should review year-to-date results and discuss planned equipment purchases or significant expenses with their tax professional before making year-end decisions.
Take a closer look at investments. Market fluctuations may create opportunities for tax-loss harvesting—selling investments at a loss to help offset realized capital gains. Taxes, however, should never be the only reason to change an investment. Any transaction should also fit your portfolio, risk tolerance and long-term goals.
Coordinate your professionals. Your financial advisor and tax professional each see different parts of your financial picture. Bringing those perspectives together before year-end can uncover opportunities that might otherwise be missed.
Tax preparation looks backward at what already happened. Tax planning looks forward while there is still time to act.
At Barnwood Capital Management, our planning process begins with understanding what you want your money to accomplish. As we approach the final months of 2026, a thoughtful financial and tax review can help ensure today’s decisions remain aligned with where you want to go.
Barnwood Capital Management Ltd. and LPL Financial do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.
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