Kelly Brother's Words of Wisdom

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You'll thank me in April…

   
     One of the requisite hazards of being a financial adviser is perusing far too many "End of Year" lists.  In order to spare you the same pain, I've come up with a short checklist of things you will regret not doing before Dec. 31.

•    Take a good hard look at your financial statements. If you still have losers that date back five or six years, SELL them to offset gains (or up to $3,000 worth of ordinary income). If you have big winners, and are contemplating significant end-of-the-year charitable contributions, consider giving appreciated stock and avoiding capital gains tax. One caveat, this strategy takes more than a day or two, so don't try to do it on Dec. 29.

•    Check the balance on your flexible-spending accounts. You would be amazed at the number of people who don't spend all the money in their accounts and forfeit the balance, completely negating whatever tax savings they thought they achieved. I know some of you are saying, "But Kelly (you goofball), there is a new law that says you can tap those accounts as late as March 15 of the following year." That is correct … BUT many companies have kept the old deadline. Check your balance, check with your HR department to confirm spending deadlines.

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