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New Year's Eve is almost here, but don't let that stop you from making some important money moves now, before Dec. 31, so you can reap the benefits in 2011.
1) Take investment losses. The end of the year is a great time to review your portfolio and your asset allocation. If you have a dog of a stock or mutual fund that you want to eliminate, it’s often a good idea to do it by Dec. 31. The losses you take can offset the gains you’ve realized on other stocks or funds and help reduce your tax bill.
For example, say you sold your Apple stock and made $10,000. But you have a poor-performing fund relative to other options that, if you sold it, would result in a $5,000 loss. When taken together, the losses from selling leave you with a net taxable gain of $5,000, far less than had you not sold the investment dog.
2) Max-out your retirement accounts. Many companies have reinstated their 401(k) matching contribution after wiping it out during the recession. But even if not, your 401(k) is still one of your top savings vehicles, and you should fund it as much as possible by year-end. The maximum contribution in 2010 is $16,500 plus $5,500 for those 50 and older.
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Did you give any holiday gifts to co-workers, vendors, or prospective customers or partners? If so, you’ll want to keep those receipts since you’ll be able to deduct up to $25 for such gifts.
That kinda takes all the giving part out of the giving if you can claim it back, does it not? LOL. I'd feel weird claiming that.
Nobody move until you've dived headfirst into your trash for those receipts LOL. Every penny counts. :)
The best way for a person to have happy thoughts is to count his blessings and not his cash. ~Author Unknown