I always say there are only 3 things you can do with money: Make, Spend, or Invest It.
Here are my top tips in each of those areas.
Step 1 – Minimize Your Taxes
- Defer Income & Accelerate Deductions– If you’re fortunate enough to be able to push some of your income into the next year, you’ll lower next’s year’s tax bill.
- Obtain Health Insurance– The ACA requires most Americans to be covered by a health insurance policy, or pay a penalty.
- Use Your Flex Spending Account– Know your company’s policy
- Donate to Charity – The organization gets much needed resources, and you get a tax deduction.
Step 2 – Review Your Investments
- Analyze Your Portfolio– Are you positioned the way you want to be?
- Sell Losing Investments– Use your losses to offset other gains, or apply up to $3,000 in losses against your income.
- Contribute to your Current 401k – This will reduce your taxable income dollar for dollar.
- Roll Over Old 401k Into an IRA – There’s no need to leave it at your old job. Roll it into and IRA and manage it more closely.
- Retired or Inherited an Account? Don’t Forget to Take Your Required Minimum Distribution
Step 3 – Maximize Your Income
- Review Your Goals– Did you hit your goals this year? What can you do better next year?
- Talk to Your Boss– Find out if your boss is happy with your performance. Discuss opportunities for you to earn more next year.
- Start Setting January Appointments – Get ahead on your goals for next year by setting appointments with those hard-to-get customers now.
- Consider Additional Streams of Revenue – Brainstorm ideas on how you can add at least one additional stream to your income sources. You should never be dependent on one source for all of your income.
Like BlackAmericaWeb.com on Facebook. Follow us on Twitter.
Money Mondays With Rob Wilson: Smart Money Moves At Year’s End was originally published on blackamericaweb.com
