Three financial strategies to consider for the end of 2019
SAN DIEGO (KUSI) – The year is coming to a close, and it’s time for many people to start planning for the year ahead, including with our finances.
1. Maximize your retirement contributions. Now is the time to make sure that you have contributed the maximum amount to your 401(k), IRA or HSA. Remember your HSA can be treated as a retirement account when you retire.
2. Consider deferring income into 2020. If you are in a high tax bracket for 2019, consider deferring income into 2020. Under the recent tax act, you must have more than $24,000 worth of deductions in order to itemize on your tax return. Accordingly, you should bunch your deductions. For example, pay expenses this year, make contributions now and pay state or property taxes before the end of the year.
3. Look for losses on your investments. Review your investment portfolio and look for losses, then harvest those losses and use them to net against gains on other stocks which you had during the year. By doing this you can essentially set off the loss’, dollar-for-dollar against the gains.
Local Financial Adviser David Reyes was in studio to tell us more.