Planning. Simple word and boy it can make things so much easier.
But what is this “planning”? According to Investopedia (who knew such a thing existed?) “Logical analysis of a financial situation or plan from a tax perspective, to align financial goals with tax efficiency planning. The purpose of tax planning is to discover how to accomplish all of the other elements of a financial plan in the most tax-efficient manner possible. Tax planning thus allows the other elements of a financial plan to interact more effectively by minimizing tax liability. “
INVESTOPEDIA goes on to explain “Tax planning encompasses many different aspects, including the timing of both income and purchases and other expenditures, selection of investments and types of retirement plans, as well as filing status and common deductions. However, while tax planning is an important element in any financial plan, it is important to not let the "tax" tail wag the financial "dog." This can ultimately be counterproductive, as virtually all courses of financial action will have some tax consequences, and they should not be avoided solely on this basis.”
Pokedad will be the first to tell you that I am not someone who can listen to much tax planning rhetoric. But I can reflect that this planning concept is very helpful when out in pursuit of the geocache find. Here our roles are reversed and I am the planner of the team. Pokedad does not always read the entire cache narrative which may provide clues to the many aspects of the cache. More than once our failure to retrieve a log has resulted in a FTF lost all due to words not read. I am sure many of you can remember a log that was none too eager to be extracted – simply stuck in that little nano. It comes back to planning. Pokedad like many other cachers carries a wide variety of tools in the pack. Of course there are times when we wish we had something else – like a ladder perhaps or just the right stick – but you just can’t carry it all! But other times I have planned ahead and could provide the appropriate string or tweezers for the job.
So this year’s PAY THE MAN cache lesson is that tax planning is a very helpful step to help you climb that financial mountain (and makes your CPA happier). A lighter tax bill makes your journey so much easier. OR take the approach of just draggin a hook through the water to see what you snag. The choice is yours – but I suggest you plan ahead.
Will you combine all the important elements to Pay the Man this year?