Investor Year-End Tips from Schwab

Posted on December 15, 2009
Filed Under Investment, Personal Finance | Leave a Comment

To assist in helping everyone be financially fit, Charles Schwab is offering a series of tips to help investors be better positioned to begin the New Year.

Year-end Financial Checklist

Financial Tips: 1. Manage your investments for potential tax savings
It’s smart to think ahead — especially if your investments have fallen
behind. If you decide to sell losing assets before year-end, you should be
able use those capital losses to offset taxable capital gains.

Financial Tips: 2. Visit with a tax professional
To ensure you’re taking advantage of all tax benefits available, visit with
a tax professional to review potential options. Beginning Jan. 1, income
restrictions will be lifted from Roth IRA conversions, providing the
opportunity for all investors to take advantage of this retirement-saving
tool.

Financial Tips: 3. Review your portfolio
Major market swings can cause your investment allocations to shift. By
rebalancing, you can restore your target allocation, manage investment
risk, and keep your portfolio in good health.

Financial Tips: 4. Maximize your retirement plan contributions
If you haven’t reached this year’s contribution limit for your retirement
plan, kick the funding up a notch for the rest of the year and plan to
maintain that contribution in 2010. The sooner you maximize your
contributions, the more time your investments have to benefit from
potential long-term growth.

Financial Tips: 5. Make the most of your philanthropy
Planning to make a contribution to a charitable organization? Donate before
Dec. 31 so you can write it off on this year’s taxes. For a tax-smart
approach to giving, a donor-advised fund like Schwab Charitable(TM) can
give you immediate tax benefits, tax-free potential growth and a possible
way to avoid capital gains taxes.

Financial Tips: 6. Get smart with college savings plans
The IRS is permitting two adjustments to 529 plans this year, as opposed
the usual one — so consider a second shift before the New Year. You can
also take reap potential tax benefits if you open or contribute to your
kids’ or grandkids’ college savings plan of any sort before the year ends.

Financial Tips: 7. Spend your flexible spending account
If you’ve covered the basics but still have some remaining funds, check
your plan’s list of eligible expenses for last-minute ideas. Make sure you
use the money that’s left in your account by the end of the year (or your
employer’s deadline), or you’ll lose it. It’s also enrollment time for 2010
FSAs, so consider whether you’ve spent all your funds in the past and make
any necessary adjustments.

source: http://www.rttnews.com/ViewPR.aspx?PrID=527288&SMap=1

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