Wise financial decisions now will help you in the future.
You have money.
But are you using it wisely?
If you are not sure, then there is no time like the present to start.
How do you do this?
According to a recent Kiplinger’s article titled“12 Smart Financial Moves for the New Year,” you should know your options to create a plan to reach your goals.
The article outlines a few of these salient options.
Insurance.
Are you getting the best premiums you can for what you need to protect?
Shop around to see if you are with the right provider for your unique circumstances.
Getting more for your money in insurance can go a long way toward keeping more money in your accounts.
Retirement contributions.
While maxing out your retirement contributions will not make your current paycheck any larger ...
it will pay off on the future.
Big.
Max out your 401(k) and IRA contributions to grow your money for retirement.
Consider setting up automatic withdrawals from your paycheck.
Are you at least 50 years old?
You can make higher contributions to "catch up" on your retirement nest egg.
Charity.
Do you have a cause or organization you love?
You can give money to them now and even receive deductions in return.
There are plenty of ways to give.
However, not all will optimize the benefits for you and your charities.
Work with an experienced estate planning attorney to determine how various giving strategies align with your goals.
Tax law.
Knowing the law is the key to following it.
The tax law could impact your 529 college-savings accounts, medical expense deductions, IRA conversions, and home-equity loans.
This may affect how you plan each of these.
Required Minimum Distributions.
Are you older than 70½?
If yes, then you will be need to take your required minimum distributions from your traditional IRAs or 401(k).
You should consider the wisest way to make withdrawals.
Did you know there are even some tax-free transfer options to charity you can consider.
Medicare.
Are you turning 65 this year?
Are you not covered for insurance by an employer?
If you are not, then you will need to enroll in a Medicare plan no later than three months after you turn 65.
Why?
Failing to do so will cost you in fees and coverage.
You also will also to consider supplemental Medicare policies like Part D prescription coverage.
Military pension.
Are you in the military?
Did you join between 2006 and 2017?
If yes, thank you for your service.
Did you know that you must decide by the end of the year how you want your retirement benefits.
The current system gives a good pension for at least 20 years of service.
The new system provides a smaller pension, but it matches contributions to a Thrift Savings Plan.
If you are not certain where to begin, work with an experienced financial advisor and estate planning attorney.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: Kiplinger (January 5, 2018) “12 Smart Financial Moves for the New Year”
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