With a little less than a month left in 2009, you still have time to implement some year-end tax planning strategies for the year and review some options for next year.
Reviewing your investments is a good place to start if you have investments that have lost money now may be the time to sell. By selling at a loss, less than your purchase price, you can offset taxes on current or future capital gains. If you do not have gains or unused losses you are allowed to carryover the losses to future years, until exhausted.
If you qualify for a deductible IRA contribution you have until April 15, 2010 to make a 2009 contribution. Your ability to take a deduction will depend on income and qualified plan participation but it should be considered.
Contributing to a qualified charity either cash or property may qualify for a tax deduction. It is important to note detailed record keeping of the contribution including amount, date, and acknowledgement by the charity is necessary; gifts above $250 require stricter documentation.
First time homebuyers received an extension on the tax credit, up to $8000 that was set to end last month. Certain conditions must be met before you can qualify for the credit:
1) You must be a first time homebuyer. A first time homebuyer has not owned a home within the last three years and the purchase must be the buyer’s primary residence.
2) Income limits apply. The full credit is available to buyers with modified adjusted gross income (MAGI) of up to $125,000 or $245,000 joint. The credit is reduced up to $145,000 and $245,000 and not available at higher incomes.
3) In order to qualify there has to be a contract to buy in place by May 1 and the sale must be closed by July 1. If the purchase completes in 2009, it can be applied to the buyers 2008 or 2009 income tax, if completed it 2010 it can be applied to either the 2009 or 2010 tax return.
4) Existing homebuyers can also take advantage of the credit. If they have lived in their existing, home for at least five out of the past eight years and use the purchase as a primary residence. The credit for existing homebuyers is lower, up to $6500.
Energy improvements to your home can provide up to $1500 in tax credits and up to $3400 may be available for the purchase of certain hybrid vehicles.
Year-end tax strategies require thought and planning, the decision to take the credit or deduction in the current year or waiting until the following year will depend on your situation. It is important you sit with your financial advisor and tax advisor to determine the correct strategy for you.
Showing posts with label wealth. Show all posts
Showing posts with label wealth. Show all posts
Monday, December 7, 2009
Monday, November 9, 2009
Education - It is for Everyone
A couple of weeks ago Ellen Griffin, Dean of Continuing Education at Southern New Hampshire University, was a guest on my radio show. The discussion was the increase in baby boomers returning to the classroom, the reasons and the opportunities.
Many are returning to school to increase career opportunities in their current profession, graduate program enrollees have increased as well as certificate programs, others are returning to school in preparation for a career change. People are expecting to stay in the workforce longer, whether it is at their current job or a new career, and keeping current with your industry and increasing your value is necessary to remain competitive.
The ease of learning may also contribute to the rise in boomer enrollment, satellite campuses, workplace classrooms and online courses make it easier to participate and complete study programs. It is possible to complete a degree program online without leaving your house or setting foot in a classroom.
Boomers who attend a live classroom bring something to the table their younger classmate’s lack, real life experience with the subject matter. This can be a plus to someone, who is learning the theoretical workings of an issue, to have the opportunity to hear firsthand the actual application of the theory.
One area in particular that has attracted the attention of baby boomers is community service, this generation has a “give back” attitude and there is interest in bringing their management and leadership skills to the non-profit area.
A Boston Globe article on September 13, 2009 referred to the fact that people are expecting to stay in the workforce longer and fifty year olds consider themselves mid-career. The number of Americans over 65 is expected to grow to 20% of the population by 2030 and to continue to increase meanwhile the younger generations will grow at a slower pace. This will open up opportunities for older workers to continue to stay in the workforce, keeping current through education and training will strengthen their position value.
Many are returning to school to increase career opportunities in their current profession, graduate program enrollees have increased as well as certificate programs, others are returning to school in preparation for a career change. People are expecting to stay in the workforce longer, whether it is at their current job or a new career, and keeping current with your industry and increasing your value is necessary to remain competitive.
The ease of learning may also contribute to the rise in boomer enrollment, satellite campuses, workplace classrooms and online courses make it easier to participate and complete study programs. It is possible to complete a degree program online without leaving your house or setting foot in a classroom.
Boomers who attend a live classroom bring something to the table their younger classmate’s lack, real life experience with the subject matter. This can be a plus to someone, who is learning the theoretical workings of an issue, to have the opportunity to hear firsthand the actual application of the theory.
One area in particular that has attracted the attention of baby boomers is community service, this generation has a “give back” attitude and there is interest in bringing their management and leadership skills to the non-profit area.
A Boston Globe article on September 13, 2009 referred to the fact that people are expecting to stay in the workforce longer and fifty year olds consider themselves mid-career. The number of Americans over 65 is expected to grow to 20% of the population by 2030 and to continue to increase meanwhile the younger generations will grow at a slower pace. This will open up opportunities for older workers to continue to stay in the workforce, keeping current through education and training will strengthen their position value.
Tuesday, October 13, 2009
Make Sure Your Assets are Covered
Two weeks ago I invited Chuck Worcester, owner of Hometown Insurance, to be a guest on my radio show to talk about the importance of property, casualty and liability insurance. Having Chuck on was a good reminder to incorporate a risk management strategy as part of your total financial plan and, like the other strategies, needs monitoring and updating.
Often home and auto insurance coverage once established are put on autopilot and ignored until filing a claim becomes necessary. It is important to meet with your insurance agent and review the risk management strategy of your financial plan annually. Maintaining the proper coverage for you assets is critical to protect against damage, injury, or claims against you.
As part of the annual review of your coverage, you should:
1) Make sure your coverage is adequate for your assets and make sure all assets that need insurance coverage are covered. Your life changes and so do the assets you own, keep your agent aware of purchases that will require insurance and make sure they are covered.
2) Make sure your agent knows how certain properties will be used (business or property) and who will be using it (employees, family, etc). This is especially important when you are insuring vehicles and equipment or allowing others access to use your property.
3) Make sure you have adequate liability coverage. Insuring against a piece of property being damaged or stolen is not enough you need to have coverage for damage and injury to others. A large claim or lawsuit against you may exceed your policy’s coverage consider a separate liability umbrella policy for greater protection.
4) Make sure you are getting the best coverage for your dollar. Have your agent compare rates and coverage but remember cheapest is not always best.
Losing the use of property due to damage or a lawsuit against you due to negligence, injury or damage to other’s property can be devastating. You can’t control all the risks out there, accidents happen but you need to be prepared, and maintaining an active risk management strategy can offer protection. Don’t ignore this critical strategy from your financial plan.
Often home and auto insurance coverage once established are put on autopilot and ignored until filing a claim becomes necessary. It is important to meet with your insurance agent and review the risk management strategy of your financial plan annually. Maintaining the proper coverage for you assets is critical to protect against damage, injury, or claims against you.
As part of the annual review of your coverage, you should:
1) Make sure your coverage is adequate for your assets and make sure all assets that need insurance coverage are covered. Your life changes and so do the assets you own, keep your agent aware of purchases that will require insurance and make sure they are covered.
2) Make sure your agent knows how certain properties will be used (business or property) and who will be using it (employees, family, etc). This is especially important when you are insuring vehicles and equipment or allowing others access to use your property.
3) Make sure you have adequate liability coverage. Insuring against a piece of property being damaged or stolen is not enough you need to have coverage for damage and injury to others. A large claim or lawsuit against you may exceed your policy’s coverage consider a separate liability umbrella policy for greater protection.
4) Make sure you are getting the best coverage for your dollar. Have your agent compare rates and coverage but remember cheapest is not always best.
Losing the use of property due to damage or a lawsuit against you due to negligence, injury or damage to other’s property can be devastating. You can’t control all the risks out there, accidents happen but you need to be prepared, and maintaining an active risk management strategy can offer protection. Don’t ignore this critical strategy from your financial plan.
Tuesday, September 15, 2009
Health Planning is Retirement Planning
I try to keep a regular weekly exercise schedule, running 3-4 miles three times and lifting weights two or three days. I exercise because at fifty-five years old I understand the benefits of being healthy more energy, lower blood pressure, stronger heart, and hopefully the ability to live a long and active life.
All the talk and concern about health care costs makes me wonder why we aren’t more pro-active about taking control of our own healthy lifestyle. Watching what we eat, regular exercise, and following our doctors instructions can add to our “quality of life” as we get older.
Taking control of your lifestyle health is more than a handful of vitamins and a walk around the block. It takes work, changes, and maybe some sacrifice, but the rewards will be worth it. You will feel better, confident, and in control; imagine losing 20 pounds and shopping for a new outfit because your old ones are too big. How about having the energy to play catch with your children or grandchildren when they visit?
If you have already made the commitment to yourself to be healthy, don’t stop or slow down. If you are ready to make some changes to your lifestyle there are steps you should follow:
1. Before beginning any exercise program or lifestyle changes consult your physician. Discuss your intentions and ask about any restrictions, limitations or concerns the doctor may have, if diet changes are needed ask for a recommendation to a dietician or nutritionist.
2. Work with a trainer, if you are unfamiliar with setting up an exercise program. Let the trainer know what you want to accomplish, (lose weight, lower blood pressure etc), and any concerns from your doctor. Work together to set goals, short and long term.
3. Realize that creating a healthy lifestyle is more than dieting to lose ten pounds before your high school reunion. Just like a financial plan your plans to create a healthier lifestyle must have strategies that are implemented, monitored and tweaked as time goes on.
Exercising and maintaining a healthy lifestyle doesn’t guarantee we will live longer or healthier but it certainly increases the odds. By taking care of our health we can extend the quality of life needed to enjoy the later years of life. I saw a great quote the other day “it is not how long you live, it is how you live long.”
All the talk and concern about health care costs makes me wonder why we aren’t more pro-active about taking control of our own healthy lifestyle. Watching what we eat, regular exercise, and following our doctors instructions can add to our “quality of life” as we get older.
Taking control of your lifestyle health is more than a handful of vitamins and a walk around the block. It takes work, changes, and maybe some sacrifice, but the rewards will be worth it. You will feel better, confident, and in control; imagine losing 20 pounds and shopping for a new outfit because your old ones are too big. How about having the energy to play catch with your children or grandchildren when they visit?
If you have already made the commitment to yourself to be healthy, don’t stop or slow down. If you are ready to make some changes to your lifestyle there are steps you should follow:
1. Before beginning any exercise program or lifestyle changes consult your physician. Discuss your intentions and ask about any restrictions, limitations or concerns the doctor may have, if diet changes are needed ask for a recommendation to a dietician or nutritionist.
2. Work with a trainer, if you are unfamiliar with setting up an exercise program. Let the trainer know what you want to accomplish, (lose weight, lower blood pressure etc), and any concerns from your doctor. Work together to set goals, short and long term.
3. Realize that creating a healthy lifestyle is more than dieting to lose ten pounds before your high school reunion. Just like a financial plan your plans to create a healthier lifestyle must have strategies that are implemented, monitored and tweaked as time goes on.
Exercising and maintaining a healthy lifestyle doesn’t guarantee we will live longer or healthier but it certainly increases the odds. By taking care of our health we can extend the quality of life needed to enjoy the later years of life. I saw a great quote the other day “it is not how long you live, it is how you live long.”
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