3 Smart Financial Planning Moves to Make Now
Written on October 14, 2019

3 Smart Financial Planning Moves to Make Now

 

 

Autumn is here!  It signifies the season for “Fall golf” (my favorite!), football games and Starbucks PSLs—and the time to make preparations for year-end and the start of a new calendar year.

Here are three smart financial planning moves for you to consider before 2019 comes to an end:

 

  1. Consider “bunching” charitable contributions.

With the increase in the standard deduction amount under the new Federal tax law, many charitably minded individuals have found it more difficult to itemize deductions on their tax returns.  One option to consider is bunching more contributions into 2019 (e.g., move 2020 contributions into this year) if it will help get you over the higher standard deduction hurdle.  If you expect to be in a lower tax bracket in 2020 compared to 2019, this move could have even more impact.

 

2019 Standard Deduction

Married, joint

$24,400

Single; Married, separate

$12,200

Head of household

$18,350

 

Blind or over 65:  Add $1,300 if married, $1,650 if single or head of household

 

  1. Reassess your annual savings goals for 2020.

Did you get a raise in 2019?  Then be sure to give your 401(k) contributions a boost in 2020 if you are still under the maximum contribution limits ($19,000 for 2019).

Will you turn age 50 in 2020?  If so, it is time to make up for any lost ground and up your savings game with “catch up” contributions to your IRA and 401(k).  Those 50 and older can add an extra $1,000 to their IRA and $6,000 to their 401(k).  (Figures based on 2019 contribution limits.)

 

  1. Review your credit report for errors.

You are entitled to a free credit report every 12 months from the three credit reporting companies:  Experian, Equifax, and TransUnion.  Visit www.annualcreditreport.com to get your reports.  Review and work with the companies to correct any errors.

 

–   Cris


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