Time to review your financial to-do list. Here are timely ideas from Wealth Advisor, Benjamin Woo, of Morgan Stanley Smith Barney in San Francisco.
Giving has tax benefits, too. Whether for your kids’ school or another charitable organization, if you donate before December 31, you can write it off on this year’s taxes. Your financial advisor can give you ideas for 2011 tax benefits, tax-free potential growth, and ideas to negate capital gains taxes.
New Year’s Eve is more than a party. It’s also the deadline for 2011 Roth IRA Conversions. While a Traditional IRA can offer you tax benefits now, a Roth IRA can give you more control over income taxes when you start taking withdrawals from your retirement account. Your financial advisor can help you decide if you should transfer your Traditional IRA to a Roth.
Does someone deserve a college savings plan? Perhaps you have a child or grandchild on your list? Take advantage of potential tax benefits by year end by opening or contributing to a 529 college savings plan for him/her.
Feel like you have some “coal” in your stocking? You may want to sell any losing assets now – in 2011 – so you can use those capital losses to offset taxable capital gains.
Do like Santa does – make a list and check it twice. And check it again… Time to review your portfolio. Have market swings shifted your investment allocations? Take a look at your target allocation and ensure it still fits your risk profile and goals.