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

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

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