Domain investors: take these financial steps to finish the year strong

Plan now to optimize your 2024 finances.

Q4 is officially underway as we head into the home stretch of 2024. It’s worth putting a few hours of planning into your finances to close out the year on a good note.

Here are some things domain investors should consider doing this quarter:

File your tax return: The U.S. extended deadline for corporate tax returns was last month, and the personal tax return extended deadline is October 15. Even though I get most of my data to my accountant early, it always seems to come down to the wire for me because I’m waiting on K-1s.

Reconsider your retirement savings: It’s easy to get stuck doing the same thing for your retirement savings. I’ve always socked money away in a SEP. However, the Secure Act 2.0, passed a couple of years ago, opens up the option of contributing Roth (post-tax) dollars into a solo 401(k) on top of pre-tax dollars. I recommend looking into this to see if it makes sense for you.

Consider the timing of your expenses and revenues: If you run your business with cash accounting, consider the timing of your expenses and, to the extent you can control them, your revenues. It’s helpful to run a preliminary P&L statement if you haven’t already.

Review your domain renewal plan: Look at your next 12 months’ domain renewals and forecast your costs. Decide if there are domains you want to drop. If so, consider liquidating them on platforms like Domain Name Wholesale Exchange of Sav auctions.