Smart Financial Moves To Make Before The End Of The Year

With the end of the year coming fast, this is the time to begin considering some financial moves. Some need to be done before the end of the year to directly affect your 2013 taxes, others are something you should do periodically just to maintain good finances and the end of the year is a great time to do that.

Consider A Solo 401(k) If You Are Self Employed

As long as you set up a 401(k) by December 31, you can make contributions ($51,000) up until the due date of your 1040 with extensions which is October 15, 2014. The best plan for your business will depend on many factors, such as your income and stability of your business cash flow. Give us a call and let us help provide you with all the information you will need.

Review Your Beneficiary Designations

Make sure you have a look at your insurance policies, retirement plans, IRAs, and annuities, and make sure anyone who is assigned as a beneficiary is some one that matches your wishes of who will receive your money when you pass. If you have divorced and remarried , and you still have your ex-spouse on your insurance plan, that is who will receive the money when you pass. This, of course, will not sit at all well with your current partner. To avoid any potential awkwardness, it is in your best interest to review this information and make sure everything goes to it's proper place.

Review And Balance Your 401(k) Account

Far to often, people set up these kinds of accounts and stop making necessary adjustments to it after that initial set up. For the vast majority of people, this 401(k) account is your biggest and most useful retirement savings vehicle. It is in your best interest to review and balance this account at least once per year.

Schedule Check-Ups And Stock Up On Medications

Especially if you have met your deductible for 2013. In that case prescription refills that cost you nothing now may add up to considerably more starting January 1 until you have met your deductible for 2014. Likewise, if you need surgery and have a choice about whether to schedule it this year or early next year, you might be better off financially having the operation this year. A similar strategy applies if you have incurred enough unreimbursed medical expenses this year for them to be deductible on your federal income tax return. Medical expenses are generally deductible if they exceed 10% of your adjusted gross income – 7.5% if you or your spouse is 65 or older.

The end of the year is generally a time for reflection. On our lives and the things around us that we care about. There is no reason that this should not include our finances. Take a look at your portfolio and make sure you start 2014 off on a good note.

Brett Royster