Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Not Much Time Left for Year-end Financial and Portfolio Tax Moves!

Personal_Finance / Investing 2010 Nov 30, 2010 - 09:22 AM GMT

By: Nilus_Mattive

Personal_Finance

Best Financial Markets Analysis ArticleLots of meals with friends and family. Hundreds of e-mails about shopping deals. And even a trip into the woods to saw down a nine-foot douglas fir for our living room. Yes, this past weekend clearly kicked off another major holiday season!

Of course, now that we’re coming into the home stretch of 2010, I’d also like to remind you that — amid all the general madness — you should also take a little time to revisit your finances.


Reason: Time is running out for certain moves that can benefit you and your family in 2011 and beyond.

Today, I’ll cover three of the most important year-end moves you can make …

Year-End Move #1: Establish, Contribute to, or Withdraw from Retirement Accounts!

Yes, some accounts — such as IRAs — give you all the way until April 15, 2011 to sock away money for 2010 … but others must be established and/or funded by December 31.

For example, if you have access to an employer’s 401(k) plan, your contributions have to be in before New Year’s Day. So if you’ve been slacking, there should still be time for you to get something in there for this calendar year. Doing so will provide you with more money for the future … the possibility of matched contributions from your employer … PLUS a nice tax break on your 2010 taxes.

Self-employed? Consider a Solo 401(k), which allows you to sock away as much as $49,000 just THIS YEAR! But again, you have only until December 31 to establish one.

And if you’re 70 or older, remember that the temporary suspension of required minimum distributions on retirement accounts has NOT been extended into 2010!

That means you must take money out of IRAs, 401(k)s, and other plans by the end of this year. Failure to do so could cost you a massive 50 percent penalty. The only exception is if you turned 70 this year — in that case you have until April 1 to take your distribution.

Of course, there’s also …

Year-End Move #2: Consider Converting to a Roth IRA

I’ve talked about some of the reasons to convert a traditional IRA to a Roth in past columns. But just to summarize, the two biggest reasons to do so are:

  • Going forward, your money will be able to grow tax-free rather than just tax-deferred
  • There are no required minimum distributions, which means the Roth is an ideal vehicle for retaining wealth and passing it along to heirs
If you've been considering a Roth IRA conversion, it's time to get moving!
If you’ve been considering a Roth IRA conversion, it’s time to get moving!

Both of these can prove to be huge advantages whether you’re 30 or 70!

And while the former income limits for conversions are now gone, only folks who convert by this December 31 will get the additional advantage of being able to split the taxes owed on the conversion across 2011 and 2012.

So if you’ve been on the fence about doing a conversion … I’d suggest you decide pretty darn soon!

Year-End Move #3: Remember to Harvest Investment Losses

Have some dead weight in your portfolio? Then the next month is a great time to get rid of it!

After all, when you sell a position at a loss the IRS allows you to deduct that loss come tax day. That means you’ll be able to offset any gains booked this year on a dollar-for-dollar basis with no limit.

If you recorded more losses than gains — or no gains at all — you can use your losses to offset some ordinary income. The maximum amount is $3,000 ($1,500 if married filing separately) … but you can carry additional losses forward for future tax years.

Although it’s a bit more aggressive, you can even consider selling losers that you believe will come back to life down the line.

That’s because as long as you wait more than 30 calendar days before buying back those same positions, the loss will still count for tax purposes!

Obviously, there are some risks and commissions involved. But I think it’s still something worth considering, especially for more active investors.

And again, these are just three of the most common moves you can make. There are also other important year-end deadlines related to education accounts, charitable donations, and other categories.

So by all means, enjoy this month’s festivities as much as possible. But please spend a little time with your portfolio this holiday season, too!

Best wishes,

Nilus

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in