The Plan That Will Make You Richer After New Year’s

With so many things that you need to catch up on by the end of the year, taking time to sit down and take a look at your finances is probably something most of us would like to steer clear of. But you might have some tax deductions that you would be a fool to ignore or maybe you have more figures in your savings account than the number showing on your credit card bill which is always a reason to celebrate.

Here is what you need to do when you take out the calculator and those bank statements to plan your finances for the year.

Separate Everything

The volatile year that you have had only makes sense that you take a peek at the pile of yearlong receipts and bills that you have. Then start looking for expenditure that you made for 401(k) investments. This works automatically without you having to file out monthly or yearly paperwork for it to continue. The reason behind checking something that will max out on its own till you retire is to see your target date fund. There is a wide range of equity stakes when it comes to the funds that are aimed at your retirement year. Checking the equity risk of your fund will help you decide whether you want to switch the investment to something more lucrative. For example, TRPR’s 2025 fund has 71% in equities, while the WFA DJ 2025 has 49%.

The point is to know and then adjust your findings, and if not, then be comfortable in where your money is headed.

Take Care of That Mounting Taxable Income

Did you know that charity contributions are allowed to be deducted before the end of the year on itemized income tax? If you have the receipts, get to deducting this amount today. If you are mailing a donation form and charging that to your credit card, try and not procrastinate. If you submit this last minute then the charges will not be processed until the New Year and the money will go into that year’s taxes.

In the same way, if you have children and live in a state that allows for deductions on 529 Fund, claim these deductions before the year ends. 34 states provide partial and even full deductions.

In addition, appreciated assets that have been donated come with plenty of tax benefits that you probably do not know about. Therefore, it is very important that you do your research on tax deductions and even though it may seem like a hassle, claim the money that is yours.