Year-end planning is finally here

Personal Finance: But what a year it's been for most Americans' finances | David Bahnsen

Illustration by Krieg Barrie

The year 2008 has been one of the most difficult years economically that many have ever lived through. The stock market is on track for its worst performance in over 30 years; home values have declined; unemployment sits at 6.5 percent—its highest level in nearly two decades—and is rising. For many households, "recession" is not just an academic term.

Economic downturns are part of the business cycle. This particular downturn, and the role that a collapse in global credit markets played in causing it, is unique in many ways. But it certainly is not unique in this sense: We have seen bad times before, and we will see bad times again. But year-end tax planning can help to mitigate some of the pain of this year's economic difficulty.