While many experts believe the economy is on the road to recovery, most agree that the road could be quite slow. That's especially true in the financial markets and in the tax arena, where potential increases in tax rates loom ahead. For many of us, it feels like there are fewer certainties than ever before when it comes to tax and financial planning.

Navigating the uncertainty is not always easy and having a road map – with guideposts to help you steer in the right direction when changes happen – is critical.


  1. Evaluate your tax situation. Reassess your financial situation and understand the impact of potential tax increases – especially capital gains, dividends and ordinary income.
  2. Examine your cash reserves and sources of liquidity. Do you have sufficient liquidity to meet your immediate and near-term needs?
  3. Reconsider your debt structure and sources of financing. Have you locked in low interest rates? Are you using credit to give you the flexibility you need?
  4. Revisit your portfolio. Are you comfortable that your portfolio is positioned to sustain your lifestyle? Do you expect your portfolio to deliver adequate returns in a tax-efficient manner?
  5. Consider estate strategies that may mitigate taxes. Consider converting your Traditional IRA or 401(k) into a Roth account. Investigate strategies that allow you to transfer or gift depreciated assets in order to save on gift taxes or future estate taxes.

While these steps can help position you for opportunities that lie ahead, we believe that one of the most important steps is to remember your goals. Clients who successfully navigated the recent financial upheaval have done so by staying focused on their long-term goals and strategy.

City National can help you develop that plan with sound financial advice, so you can be ready for the opportunity that lies ahead. To speak with an advisor, call (800) 773-7100.

City National, as a matter of policy, does not give tax, accounting, regulatory or legal advice. The effectiveness of the strategies presented in this document will depend on the unique characteristics of your situation and on a number of complex factors. Rules in the areas of law, tax and accounting are subject to change and open to varying interpretations. The strategies presented in this document were not intended to be used, and cannot be used for the purpose of avoiding any tax penalties that may be imposed. The strategies were not written to support the promotion or marketing to another person any transaction or matter addressed. Before implementation, you should consult with your other advisors on the tax, accounting and legal implications of the proposed strategies based on your particular circumstances.