As your CPAs we are the "quarterbacks" of your financial team and assist our clients in rounding out the proper mix of professionals to be sure that your investment products, retirement vehicles, estate and business continuity planning techniques are maximized.

Asset Allocation Checklist

While it is essential that you keep reviewing your asset allocation, you also have to consider the other options involving inclusion of assets that are tax efficient, in the taxable accounts. But the focus has to be on investments and returns, rather than primarily being on tax savings.

When considering tax benefits, see how taxing on capital gains could be kept at a minimum and how taxes on dividends have an impact on your investments.

Taxes on capital gains can be managed better by gifting ideas in terms of capital assets, made to children who may be subject to lower tax rates. In this case, capital gains would be restricted to being taxed at a maximum of 5 percent

It is advisable to work on capital gains steadily over the course of the year, rather than wait till it is year-end. Keeping track of capital losses would also help in countering capital gains.

There is the provision for deducting as much as $3,000 to provide for capital losses. Make use of this provision to offset other income.

You may take advantage of the tax concessions on dividends, by shuffling your portfolio and replacing debt with stocks that yield dividends.

You could also consider bonds, especially those that are eligible for tax exemptions, for investments that could improve your returns.

If you are eligible for ISO’s, you need to work on minimizing their annual taxes. Typically, you would be required to hold on to your stock options for a period of more than a year from your exercising them, which would help you in utilizing the provisions on capital gains tax.

You need to be aware that the capital gains tax is applicable at 15 percent and should assess if your hedge funds that were planned with the previous 20% taxes in perspective would still be making economic and financial sense.