Smart Year-End Money Moves ’08 (Part 2)

By on

It’s hard enough to think about income taxes in April, much less during the holidays. But a few minutes spent now could be worth serious money when tax time comes.

For example, did your life change this year? If so, talk to a pro.

“You got divorced, had a child… what kind of tax savings can I get from the child. Can I put money in the child’s name, can I put money aside for their college education?”
-Ken Strauss, CPA / Berkowitz, Dick, Pollack & Brant 

That’s why you talk to a pro before year-end: things you do now can help next April. Another example? Your IRA was trashed by the market. Well, maybe now’s the time to turn it into a Roth IRA…

“You’re allowed to convert a regular IRA to a Roth IRA. In other words, convert a taxable income IRA into a never-taxed income IRA. And you can do that now at a low cost because the value of your portfolio is down.”
-Ken Strauss, CPA / Berkowitz, Dick, Pollack & Brant

And if your stock losses aren’t in an IRA, be sure to sell them before year-end so you can get that write-off…

“The one thing that’s really important is to make the best use of the losses that you’ve incurred. Now is the best time to harvest those losses.”
-Ken Strauss, CPA / Berkowitz, Dick, Pollack & Brant

Bottom line? Year end financial planning is all about seeing where you are right this second and seeing how you can improve your situation later. So spend a few minutes today, maybe save some serious bucks next year. 

Watch Part 1 of this series

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,377 more deals!

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.