It's Time to Get Proactive About your Taxes

Proactive

T

About your Taxes ax Season is one of the busiest times in the financial world and usually begins seconds after midnight on January 1st. While taxes are not as exciting as watching the Whiskey Row Boot Drop on New Year’s Eve, they are a fiscal necessity. Here are a few things to keep in mind as you prepare for April 15th.

IRA Contributions: it’s time to start making your IRA contributions. The sooner, the better. For most IRAs, contributions are $6,000/annually with a catch-up provision of an additional $1,000. That provision only applies if you are over the age of 50. If you or your spouse have an employer-sponsored retirement plan, there may be limitations to what you can add.

RMDs: otherwise known as Required Minimum Distributions. An RMD, according to Investopedia, is the amount of money that must be withdrawn from an employer-sponsored retirement plan, traditional IRA, SEP, or SIMPLE individual retirement account (IRA) by owners and qualified retirement plan participants of retirement age. In 2018, President Trump changed the age of RMDs from 70 ½ to 72 to

IT’S TIME

TO GET by Steve Schott, Financial Advisor, Schott Financial Management reflect the fact that Americans are living longer lives. I encourage my clients to be diligent about taking their RMDs because the penalties for not taking them are costly. 1099s: Traditionally, 1099s begin to show up in mailboxes around February, depending on the types of investments you have. Deadlines can become delayed as security companies scramble to finalize tax consequences, so make sure to stay proactive. If you don’t have a financial advisor, you can contact the holding company directly. If you work with a financial professional, give the office a call. The 1st payment of your quarterly taxes is due on April 15th.

As far as investments, there are a few things I’m keeping an eye on in the year ahead: Inflation, interest rates, and the mid-term elections. These events could impact the market in both positive and negative ways. I would like to see a continuation of the gains made in 2021. Although interesting, 2021 was an excellent year for the markets. Both the Dow and S&P 500 were up over 20%.

At Schott Financial Management, we offer free, no obligation consultations. You can call our office, 928-776-1031 or visit www. schottfinancialmanagement.com.

FOR LUXURY

CUSTOM HOMES: Conservatories, Copper trim and Curves

The 2022 custom built luxury home will have all the technology available and be smarter than ever, but what will it look like? Inside, we’ll see patterned hardwood floors with two-toned inlays of, perhaps, lighter hardwood covering an entire room or just part of one. Black accents will appear through hardware, faucets, appliances and window frames. Flex space offering anything from an extra guest room to a kids’ rec room to just a quiet space to relax will be a must in new-home building. Our appreciation with the mental and physical benefits of surrounding ourselves with nature may take the form of a conservatory within the home. This could be a garden-inspired room or even a sunny corner somewhere in the house. Both inside and outside, straight lines and sharp angles will give way to curves. Rounded edges will be seen in furniture and decorative pieces and appear as doorways and arches. Expect to include barrel-vault ceilings, arched windows and curved ceilings for porches, decks and walkways. Speaking of which, walkways not only provide a path to your front door, they guide one’s eye to the home’s front entry — stone-and-pavers walkways offer an informal, organic aesthetic. Homebuilders will continue the trend of offering outdoor luxury as an extension of the 2022 custom built home by adding outdoor living rooms with televisions and fireplaces along with high-end pools. Metal roofs, known for their ecofriendliness and long life, are in. Expect more metal — for higher-end homes try bronze or copper — either on the roof or as an accent on a porch roof or awning. Other exterior must-haves: • An emphasis on exterior lighting. Freestanding lanterns are expected to be popular. • Multipurpose retaining walls to provide an artsy background for house numbers, an inviting area for built-in planters and offer partial or total privacy to front yard patios. • Light-colored stone accents, perhaps on siding. • Wood window trim/headers to provide extra interest. • Designed concrete siding as a dramatic custom option for contemporary and modern home exteriors.

Black and white will remain favored palettes for the exterior of your home but bright will be replaced with softer, warmer whites. Painted bricks will make for attractive siding.

Color-blocking your home’s outside could balance the a-bit-much feel of an entirely dark paint job. It allows you to experiment, for instance, with moody charcoal color on a section or sections of your white house.

Perhaps paint your shutters or front door a deep, rich color while keeping a soft white exterior base. Other trending color palettes include soft neutrals, greens and blues that meld with nature.