Things to do before the New Year.
Presented by Mark Colgan
It’s about that time of year. The end of the year is a good time to review your personal finances, and to refocus your wealth-building efforts. How much financial progress did you make? What are your financial, business or life priorities for 2008?
Dust off your financial goals and take a good look at them. Have they changed? Do they read more like wishes, or are they specific objectives? Try to specify the goals you want to accomplish, and a timeframe. Think about the consistent investing, saving or budgeting methods you could use to realize them.
Max out your IRA contribution at the start of 2008. If you can do it, do it early. Remember that the contribution ceiling increases to $5,000 per person (and therefore, $10,000 per couple) in 2008. The sooner you make your contribution, the more interest those assets will earn.
Before 2007 ends … think about making charitable contributions. If you make them this year, you can claim deductions on your 2007 tax return. Also, see if you can prepay next year’s property taxes this year; if your lender receives that payment before December 31, that’s also a 2007 deduction you can take.1
Are you marrying next year, or do you know someone who is? The top of 2008 is a good time to review (and possibly change) your beneficiaries to your 401(k) or 403(b) account, your IRA, your insurance policy and other assets. You may want to change beneficiaries in your will. It is also wise to take a look at your insurance coverage to determine if you will be underinsured, to identify any coverage gaps, and to cancel duplicate policies. If your last name is changing, you will need a new Social Security card. Lastly, assess your debts and the merits of your existing financial plans.2
Are you returning from active duty? If so, go ahead and check the status of your credit, and the state of any tax and legal proceedings that might have been preempted by your orders. Review the status of your employee health insurance, and be sure to revoke any power of attorney you may have granted to another person, even a family member.3
Don’t delay – get it done. Talk with a qualified financial or tax professional today, so you can focus on being healthy and wealthy in the New Year.
Mark Colgan is a Representative with Ensemble Financial Services and may be reached at 585-419-2271.
These are the views of Peter Montoya, Inc., not the named Representative or Broker/Dealer, and should not be construed as investment advice. Neither the named Representative nor Broker/Dealer give tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.
