W E A L T H M A N A G E M E N T
Your AnnuAl
review CheCklist
Preparing for an annual financial review may be easier with a checklist to help you
focus on important matters. With that in mind, here is a list of key considerations
that you may want to discuss with your financial advisor.
federal income tax purposes. State tax rules may differ. On the
federal level, capital losses offset capital gains and are netted
against each other. If net capital losses still remain, up to $3,000
may be used to offset ordinary income. Capital losses not used
in a given year can be carried forward to future years. Note
that different rules apply for gains on the sale of collectibles, or
qualified small-business stock.
• Am I taking full advantage of tax-advantaged accounts?
Remember that certain types of investments receive favorable
tax treatment. Employee contributions to a traditional 401(k),
for example, are deducted from your paycheck before taxes
are assessed, which lessens taxable income during the year the
contribution is made. Contributions may potentially grow free
of federal income taxes until qualified withdrawals are made
during retirement. If you are age 59 1/2 or older and have
maintained the account for a minimum of five years, qualified
withdrawals from a Roth IRA are tax free.2 (To contribute to a
Roth IRA, investors must meet income thresholds established
by the Internal Revenue Service. Learn more at www.irs.gov.)
• Is my insurance coverage sufficient? You may want to conduct
an insurance needs analysis. There are many forms of insurance
but, unfortunately, there is no one-size-fits-all policy. Life
insurance, for example, may be a vital necessity if you have a
spouse and children, but perhaps is less important for a single
person. But disability insurance, which provides an income
stream if you are unable to work, may be important for everyone.
• Is my estate plan current? If you have not already made an
estate plan, your annual review may be a good time to start.
Even if you already have a plan in place, it is good to revisit it
yearly to make sure your beneficiary designations are up to date
and that your plan still reflects your current wishes. This is also
a good time to consider tax-efficient gifting strategies, so you
can potentially minimize gift and estate taxes and keep more of
your assets for those you care about.
You may have additional concerns unique to your situation, but
this checklist may help you keep your investment portfolio in
order.
Ami Forte is Managing Director-Wealth Management/Wealth
Advisor of The Forte Group at Morgan Stanley located at 4114
Woodlands Parkway, Suite 200, Palm Harbor, FL 34685 and may be
reached at 727-773-4610 or ami.forte@morganstanley.com. Ami has
been featured in publications such as Business Week and The Dow
Jones Newswire.
Jim Streitmatter, Senior Vice President, Financial Advisor;
Chuck Lawrence, Vice President, Financial Advisor;
Ami K. Forte, Managing Director, Wealth Advisor;
Evan P. Forte, CRPS©, Financial Advisor
• Do I need to rebalance my asset allocation? Depending on the
performance of your investments, you may want to examine
whether your mix of stocks, bonds, cash, and other assets is close
to your target. If you have not reviewed your portfolio lately,
you may be surprised at what you find. It’s possible that your
current asset allocation has changed quite a bit since the last time
you checked, due to the different performance of the various
investments in your portfolio.1 If that’s the case, or if your outlook
has changed, it may be time to readjust. Rebalancing can be
accomplished in two ways: You can sell existing assets and use
the proceeds to bring your portfolio closer to your desired mix. Or
you can leave your portfolio as is and allocate new investments to
the areas that you want to increase. Rebalancing may involve tax
consequences, especially for non-tax-deferred accounts.
• Am I on track to fund my retirement? Making sure you are on
track to amass the assets you will need for your later years should
be one of your key concerns. If you participate in an employersponsored
retirement plan, consider investing as much as you
can afford. If you do not have access to an employer-sponsored
plan, or if you do and can afford to contribute even more, consider
funding an individual retirement account (IRA).
• What were my yearly capital gains and losses? If your year-end
planning entails selling certain assets, be aware of rules regarding
capital gains and losses. Gains on investments held less than one
year – known as short-term capital gains – are taxed as ordinary
income, while those on investments held for one year or longer, or
long-term capital gains, are taxed at a maximum rate of 20%, for
If you’d like to learn more, please contact Ami Forte.
Article by Wealth Management Systems, Inc. and provided courtesy of Morgan Stanley Financial Advisor.
Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not “fiduciaries” (under ERISA,
the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in a written agreement with Morgan Stanley. Individuals are encouraged to consult their tax and legal advisors (a) before
establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account.
The author(s) are not employees of Morgan Stanley Smith Barney LLC (“Morgan Stanley”). The opinions expressed by the authors are solely their own and do not necessarily reflect those of Morgan Stanley. The information and data in the article or
publication has been obtained from sources outside of Morgan Stanley and Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of information or data from sources outside of Morgan Stanley. Neither the information
provided nor any opinion expressed constitutes a solicitation by Morgan Stanley with respect to the purchase or sale of any security, investment, strategy or product that may be mentioned.
Morgan Stanley Financial Advisor(s) engaged Tampa Bay Magazine to feature this article.
Ami Forte may only transact business in states where she is registered or excluded or exempted from registration FINRA Broker Check http://brokercheck.finra.org/Search/Search.aspx. Transacting business, follow-up and individualized responses involving
either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states where Ami Forte is not registered or excluded or exempt from registration.
© 2015 Morgan Stanley Smith Barney LLC. Member SIPC.
CRC 1247922 07/15
1Asset allocation and rebalancing do not assure a profit or protect against loss in a declining market. There may be a potential tax implication with a rebalancing strategy. Please consult your tax advisor before implementing such a strategy.
2For nonqualified withdrawals, restrictions, penalties and taxes may apply.
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