In 1967, American rock band The Grass Roots produced a hit that reached No. 8 on the Billboard charts, “Let’s Live for Today,” a rousing anthem dedicated to living in the moment. It’s a romantic notion and a great song, but it embodies the worst possible advice when it comes to financial planning.
Tax season is a particularly tough time to think long term. Call it the tyranny of April 15. For many of us, there’s nothing beyond the horizon of the annual filing deadline (April 18 this year); getting our returns done on time, and contemplating how much we will owe or get back. This year, short-term tax anxiety is only made worse by recent market volatility, which can test even the most seasoned investor’s commitment to a long-term strategy.
Everyone working toward a financial goal has at one time been given the advice to “stick to the plan.” But how often is the same advice given regarding taxes?