Contact Us

10 Year-end Financial Ideas to Consider

Year-end Financial Ideas to Consider
Brandpoint

(BPT) – With the economic ups and downs of the last several years, many Americans are more motivated than ever to get their finances on track. With some financial alternatives expiring before the year’s end, there’s no better time than the present to start.

“If you’re waiting until the New Year to resolve to better your finances, you may want to think again. You could be missing out on some year-end strategies that could help bolster your retirement savings and even provide tax benefits,” says Lule Demmissie, managing director of retirement at TD Ameritrade, Inc., a broker dealer subsidiary of TD Ameritrade Holding Corporation. “By being proactive, you can really have a positive effect on your nest egg.”

Demmissie offers 10 smart year-end strategies to help you start the new year with a strong financial focus:


1

Make 401(k) contributions by the end of the year

 
 

Not good at regularly saving for retirement? Make up for it by investing part of - or your entire -year-end bonus. For 2013, the maximum 401(k) contribution for people younger than 50 is $17,500. It's a simple way to help build your retirement savings.

 
2

Play catch up

 
 

If you'll be 50 by the end of the calendar year, now may be the perfect time to make catch-up contributions. In addition to the $17,500 401(k) maximum, people 50 and older can make a $5,500 catch-up contribution. Visit the IRS website for more information on contribution amounts.

 
3

Invest in a traditional or a Roth IRA

 
 

While the deadline for this year is technically April 15 of the next year; some say don't wait to make contributions to an IRA for the 2013 tax year. Take advantage of the tax benefits, such federal tax-free growth and tax-free withdrawals during retirement. For traditional IRAs, most wage earners can deduct contributions on income taxes now and pay the taxes upon qualified withdrawals in retirement. Note: Adjusted Gross Income (AGI) limits apply for deductibility for both Roth and traditional IRAs.

 
4

Invest in a child's future

 
 

Give your child a head start in life by investing toward his or her education. Consider opening a 529, Coverdell or custodial account. For parents of children already in college, don't forget to take advantage of the American Opportunity College Credit if you are currently paying your child's college tuition. (Note: AGI limits apply).

 
5

Pay down high-interest debt

 
 

Having high-interest debt can make saving for anything else very challenging. By paying it down now, you can save yourself money in the long run. If you only pay the minimum amount each month, a seemingly small purchase could take months to pay off and over time could cost significantly more due to the high interest rates.

 
6

Own a home? Invest in it

 
 

Numerous energy-efficient home improvements qualify for a federal tax credit if done by the end of 2013. Things like new windows, doors, water heaters and skylights may qualify. Visit energy.gov to learn more. In addition to a tax credit, these improvements can save you money on your utility bills, opening up more of your monthly budget.

 
7

Donate to charity

 
 

Donating to charity isn't only an act of goodwill; it can be used as a write-off come tax time. Whether a monetary gift or donation of goods, such as clothing and household items you no longer use, keep records and include the deduction when you do your taxes.

 
8

Adjust your W9

 
 

In 2012, the average tax refund was just under $3,000. Rather than loaning Uncle Sam the money at no cost, consider adjusting withholdings and using the funds for saving or investing

 
9

Save for a rainy day

 
 

It can be tempting to spend any monetary holiday gifts or bonuses from work immediately. Instead, if you don't already have one, use that money to start an emergency fund. Some financial professionals advocate having six to nine months' worth of expenses set aside for unforeseen emergencies.

 
10

Review your portfolio

 
 

Don't delay reviewing your contributions and portfolio allocations. TD Ameritrade offers a variety of tax-deferred savings vehicles that can help you pursue your retirement goals. If you have questions, meet with a qualified financial advisor and learn what you can do to start 2014 on the right financial foot.

 

More Local News

Latest Country Music News

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://kxrb.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on 1000 KXRB - Classic Country quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here.

Register on 1000 KXRB - Classic Country quickly by logging in with your Facebook account. It's just as secure, and no password to remember!