Kelly Brother's Words of Wisdom
By Kelly Brothers | Dated January 30, 2007
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• Have you taken your RMD? Are you (or a loved one) over 70? If so, chances are you must take your Required Minimum Distribution by Dec. 31. If you miss the deadline, the IRS punishes you with a 50 percent tax rate on the RMD you did not take. If you don't need the money, you can donate up to $100,000 from an IRA in a very tax-advantaged way.
• Few extra bucks lying around? Obvious options would include a trip to the South Pacific or a new flat-screen for the den, but there are other possibilities that will reap benefits in April and beyond. For example, top off those retirement accounts. The limits go up each year, and if you're over 50 you can contribute up to $20,000 to a 401k or 403b this year. Or pay your January mortgage. The interest is added to your other '06 mortgage interest.
• Have the talk. If you're going to be seeing family over the holidays, set aside a half hour to initiate a discussion you've been putting off. Maybe it's talking with a parent about their retirement finances. Maybe it's a talk with a spouse about spending habits, or with a child about the virtue of saving money.
Be aware, these are just ideas. It is in your best interest to check in with your financial professional or accountant to see if these strategies apply to your specific situation. So pick yourself up a Venti Egg Nog Latte, set aside a few hours, and close out 2006 with your financial house is in order.
• Few extra bucks lying around? Obvious options would include a trip to the South Pacific or a new flat-screen for the den, but there are other possibilities that will reap benefits in April and beyond. For example, top off those retirement accounts. The limits go up each year, and if you're over 50 you can contribute up to $20,000 to a 401k or 403b this year. Or pay your January mortgage. The interest is added to your other '06 mortgage interest.
• Have the talk. If you're going to be seeing family over the holidays, set aside a half hour to initiate a discussion you've been putting off. Maybe it's talking with a parent about their retirement finances. Maybe it's a talk with a spouse about spending habits, or with a child about the virtue of saving money.
Be aware, these are just ideas. It is in your best interest to check in with your financial professional or accountant to see if these strategies apply to your specific situation. So pick yourself up a Venti Egg Nog Latte, set aside a few hours, and close out 2006 with your financial house is in order.
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