DECEMBER 31ST IS GOING TO BEHERE BEFORE WE KNOW IT!
DON'TRING IN THE NEW YEAR WITHOUTSETTING YOURSELF UP FORFINANCIAL SUCCESS.LOCALFINANCIAL ADVISOR BRAD ALLENFROM "WEALTH WISCONSIN.COM"JOINS US WITH FOUR MONEY MOVESTO RING IN 2020 LIKE AFINANCIALQ: WHAT FINANCIAL MOVES SHOULDWE CONSIDER BEFORE THE STROKEOF MIDNIGHT?
Estimate Your TaxLiability It might seemdaunting to start running yourtax numbers, but you're betteroff taking action now thanending up with a surprise taxbill in April.
Estimate yourtax refund or amount you oweby using an online paycheckcalculator, IRS taxwithholding calculator or byfilling out a sample taxreturn.
If you discover youaren't paying enough or youare overpaying in taxes, aneasy way to fix the problem isto fill out a new W-4.
Thereis an IRS calculator to helpyou determine your correctwithholding.
You can find iton my website, wealthwisconsin.com [wealthwisconsin.com]Consider a ConversionAs theyear winds down, considerconverting from a traditionalIRA to a Roth IRA.
Talk withyour financial professional tosee if this a good option foryou.
With the recent tax lawchanges, many people may findthemselves in a lower taxbracket, making now through2025 a good time to considerconverting.
Although you don'tget tax breaks upfront on aRoth IRA, your withdrawals aretax-free as long as you areolder than 59 ½.Increase Your 401(k)ContributionsThe contributionsyou make to your 401(k) plansare tax deductible, reducingyour taxable income for theyear.
By increasing yourcontributions, you will betaking home less money, butyou will be paying less intaxes and saving more for yourfuture!
How much you decide toput in your 401(k) is entirelybased on your personalsituation, but I recommend atleast 10-15% of your income.Those nearing retirement canmake catch-up contributions totheir 401(k).
If you're 50 andolder, you can contribute upto $25,000.
Try to stretchyourself and save as much asyou can to put yourself in thebest position for retirement.Plan for 2020The end of theyear is a great time to checkyour progress toward yourshort-term and long-term goals.If you anticipate any majorlife changes like gettingmarried or having a baby in2020, you may need to shiftyour lifestyle to match yourfinancial goals.
Don't beafraid to ask for help.
Sitdown with a financialprofessional to review yourgoals.TITLE: Year-End FinancialMoves -Estimate Your TaxLiability -Consider aConversion-Increase Your401(k) Contributions -Plan for2020SOURCE: WEALTHWISCONSIN.COMALL GREAT ADVICE, BRAD ALLENWITH DRAKE AND ASSOCIATESTHANK YOU FOR WAKING UP WITH USright back.