Posted by Madison on March 31, 2010
It’s time to rejuvenate your finances! To celebrate spring The Life Skills Network is featuring a rejuvenation day today. Check out all the fun topics to spice up your spring at the end of the article.
Rejuvenate Your Finances
- Update your withholding. Now that your taxes are done (or almost done), if you got a tax refund, you may want to update your withholding for 2010.
- Convert your IRA. It may be time for a Roth IRA conversion in 2010 if the income limits were holding you back in prior years.
- Update your asset allocation. If it’s been awhile since you took a look at your asset allocation, now is the time to update it.
- Sell your stocks. If you’re lucky enough to be in the lower 2 tax brackets, 2010 is the last year you can take advantage of the 0% long term capital gains rate unless the laws change.
- Bump up the contribution in your 401k. This one will help lower your tax bracket to help you take advantage of the last one. Of course, it’s also a good way to save more. See the 2010 Roth 401k Limits.
- Buy a house. The Tax Credit for Existing Homeowners and first time home buyers end in one month. If you’re planning to take advantage of the free government money, you have to have your contract in place during the month of April.
- Review the health care plan. No matter which side you fall on in the health care debate, it’s likely going to have an impact on your finances. Review the Health Care Reform Bill Summary to see the taxes included in the plan.
- Do a second quarter financial check-up. Here’s a list of tips for your Second Quarter Financial Check-up to get you started.
- Try something new. Many times the best way to learn something new, is to give it a try. We’re considering a new business venture, but we’re a little unsure of the profitability. Stay tuned, as always, there will be more to come on that topic. If you have something new you want to try, whether it’s Social Lending, Real Estate Investing, or another interesting idea, give it a try!
- Try it immediately. Have that new idea in mind, but stuck in analysis paralysis? Someone once gave me some advice, that if you sit on the sideline and never execute an idea, you’ll never really know how well it worked. So let’s get moving!
Rejuvenation Day Articles
You can get my latest articles full of valuable tips
and other information delivered directly to your email for free
simply by entering your email address below. Your address will never be sold or used for spam and you can unsubscribe at any time.
Fantastic tips! I especially liked number nine. Trying something new …
I’ve gotten close to Real Estate investing before (actually bid on several homes at auctions) but never took the plunge. As my completely debt free day fast approaches, I’ll have enough cushion to give it a shot.
Thanks for the link!
Ron, I’ve actually learned a lot just by branching out and trying something new. I don’t always do things right, but it’s a great way to learn!
Need help on something from Madison or one of the other expert readers.
I’m afraid that I may have been under-contributing to my 401k the past couple of years and was hoping someone could help – or I’ll have to see a tax professional after the season is over.
I make $113k and my company puts 10% into my retirement plan. I think there are two funds so they get around the 6% cap since we are privately held.
I’ve only been contributing 10% because I think I’m a highly compensated employee and that is how I understood the rules. Can I save the full $16500 between my 401k and Roth 401k?
Any help is greatly appreciated!!
Each company is subject to highly compensated employee testing. Your HR department should be able to figure out the exact amount for you, since it will depend on how much all the others in your company are paid. Be sure to ask them so you can contribute as much as possible.
If you overcontribute, they’ll send you a letter and return the excess.
I love number 9 and 10.