Take Advantage of All Your Year–End Tax–Planning Opportunities
By Saghir A. Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities).
End-of-year tax and investment deadlines are fast approaching. But there’s still time to adjust your current financial strategies to help you lower your tax liability.
Now :
- Review your portfolio with your financial advisor to help ensure your asset allocation still aligns with your goals.
- Ask your financial advisor for a realized and unrealized gain/loss report to assess the investment income and capital gain/losses you should expect this year.
Before December 31:
- Make maximum contributions to your employer retirement accounts. If contributing to your IRA, the deadline is April 15, 2022. If you are age 50 or older, take advantage of catch-up contributions.
- Evaluate ways to achieve your charitable giving goals that may result in potential tax savings.
Review your situation with your financial advisor to help keep your portfolio on track.
Important information regarding the cash sweep for your account(s)
The cash sweep program allows your otherwise uninvested cash holdings, as well as dividend and interest payments, to "sweep “automatically from your account(s) into one of the available sweep vehicles below:
• Expanded Bank Deposit Sweep that offers FDIC protection
• Standard Bank Deposit Sweep that offers FDIC protection
• A Money Market Fund that offers SIPC coverage
The Cash Sweep Program features, characteristics, risks, costs and other considerations are unique, so it is important that you regularly review the program information and disclosures for updates for updated information on your sweep and other options available.
While maintaining funds in the cash sweep program may be a suitable strategy for some individuals, keeping too much money in the cash sweep or, keeping money in the cash sweep for too long, may not be the best way to reach your long-term financial goals. If you desire to maintain cash or cash alternative balances for other than a short-term period, you should research other investment options by contracting your financial advisor or investment professionals or by logging in to your brokerage account online at Wells Fargo advisors.Com and using our research tools.
Reminder regarding FDIC insurance coverage for the Bank Deposit Sweep
Balance on deposit in the bank Deposit Sweep Programs, together with any other of your deposits at affiliated and unaffiliated banks (together, the "Program Bank"), are insured by the FDIC, an independent agency of the US government, up to a maximum amount in accordance with the rule of the FDIC. Deposits (including principal and interest) at each of the program banks are eligible for federal deposit insurance up to $250,000.
You are responsible for monitoring the total amount of all deposit you have at each bank in the Bank Deposit Sweep program for purposes of calculating your FDIC coverage. Your account statement will indicate your balance, details transaction and interest relating to the program. Your account statement will also indicate whether you are in the Expanded Bank Deposit Sweep or Standard Bank Deposit Sweep.
"How Are My Deposit Accounts Insured by the FDIC?" as well as under "Deposit insurance Frequently Asked Questions." Your financial advisor or investment professional is available to discuss alternative solutions for the cash held in your account. The expended Bank Deposit Sweep will provide up to $250,000 in FDIC insurance per program Bank ($500,000 per program Bank for joint account with two or more owners). The Expended Bank Deposit Sweep currently makes five program Banks available, resulting in up to $1.25 millions in available FDIC insurance ($2.5 million for joint account with two or more owners). The Standard Bank Deposit Sweep currently consists of interest-bearing deposit accounts at two or more program banks affiliated with Wells Fargo advisor. The Standard Bank Deposit Sweep will provide minimum of $500,000 in FDIC insurance ($1 million for joint accounts with two or more owners). Deposit to affiliated banks in three standard Bank Deposit Sweep will be limited to Wells Fargo Bank, N. A., Wells Fargo National Bank West, and Wells Fargo South Central, N. A. Important note for international client accounts: Because of operational limitations, al account type (e.g., single, joint account) of international clients are recognised as single accounts in the Bank Deposit Sweep program. As a result, al accounts types of international clients are treated as single accounts for purpose of the Bank Deposit Sweep Program. See the cash sweep program Disclosure Statement at Wells Fargo advisor. Com/cash sweep for a description of how deposits are made in the Bank Deposit Sweep Programs.
( Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)
