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News from Schott Financial Management

End of the Year Checklist from A Prescott Financial Advisor

Sep 1, 2021

It’s hard to believe we are fast approaching the end of 2021. As a financial advisor, I like to remind my clients of a few items to be aware of as the year ends.

  • RMD, otherwise known as Required Minimum Distribution, are distributions taken from a qualified account, such as an IRA. During COVID and under the CARES Act, RMD requirements were waived. For 2021, however, clients will be expected to take them starting on April 1st after the year you turn age 72. You can pay up to a 50% penalty to the government if you don’t take one, so make sure you schedule an appointment with your financial advisor today.
  • Consider taking a tax loss on any stock position held in a non-qualified account (TOD or Individual accounts) that you’ve held for at least one year.
  •  Make sure to keep your December 31st, Annual or End-Of-The-Year statement.
  • Look for tax statements, such as a 1099 or K-1’s starting in mid-February. You will need these statements to give to your accountant.

Finally, meet with your financial advisor to do an end-of-the-year performance review. This way you can make changes or adjustments to your portfolio for 2022. If you don’t have a financial advisor, Schott Financial Management offers free consultations. Call our office today to schedule an appointment: 928-776-1031.

Securities are offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services are offered through Cambridge, a Registered Investment Adviser.  Schott Financial Management and Cambridge are not affiliated.