fi nancialforum Resolutions J
Fund an IRA If you’re under the IRA income ceiling, consider funding a Roth or tra- ditional IRA. IRAs from 2011 can be funded until April 17. For more details, review IRS Publication 590 at
www.irs.gov/pub/ irs-pdf/p590.pdf.
52 MILITARY OFFICER JANUARY 2012
With the start of this new year, resolve to get your fi nances in order by paying down debt and saving for the future. By Capt. Bud Schneeweis, USCG-Ret., CFP®
January brings renewal, so what better time to take a fresh look at your fi nancial plan? Consider these suggestions to start off the new year fi nancially strong: Pay off your credit cards. If you busted
your holiday shopping budget, get back on track by paying off your credit card bills. If you can’t pay off the balance this month, pay it down as far as possible and lock up the card until you do pay it off . Resolve to maintain a zero balance each month. Set up an auto-draft from the bank that issued your card to ensure the balance gets paid off on time each month. Don’t damage your credit rating or incur extra fees or interest by paying credit cards late. Use your fl exible spending account (FSA)
funds. If you participated in an FSA at work in 2011 and haven’t used all the money you set aside, remember you have until March 15 to use those funds. All claims must be fi led by the end of March 2012 for the 2011 coverage year. If you also elected to par- ticipate in a 2012 FSA, the total amount you set aside is available to you Jan. 1. Even though your payroll deduction will be paid into the FSA over the year, some plans will reimburse the entire amount you set aside anytime of the year. In that case, you’ll es- sentially receive an interest-free loan from the FSA while getting the income and pay- roll tax savings. Check your plan for details. Maximize your retirement savings. The new limit for contributions to defi ned contribution retirement systems — 401(k),
403(b), and 457(f ) plans, plus the federal Thrift Savings Plan — was increased by $500 for 2012 to $17,000. There was no in- crease in the catch-up provision for those over age 50; its limit remains at $5,500. Regardless of age, resolve to review your fi nances and determine whether there is room to stretch toward maximizing your retirement contribution. Set up a Roth IRA for children or grand-
children. It’s diffi cult to convince teens and young adults to save for retirement. They are just beginning to earn money and need their savings for their education — or for the latest gadgets. Planners preach saving as early as possible to allow compound interest to work its magic, but what teen or young adult has enough money to aggres- sively save for retirement? If you have children or grandchildren who earn income through employment, consider setting up a Roth IRA for them. You (or they) can fund it up to $5,000 or to the level of the progeny’s earnings. It’s a great way to jump-start retirement savings for loved ones. They always can add to the fund later in life when they’re more fi nan- cially able. Meanwhile, that interest has had the maximum time to compound. Resolve to be prosperous in 2012!
MO
— Capt. Bud Schneeweis, USGC-Ret., CFP®, Certifi ed Senior Advisor®, is director, Benefi ts In- formation and Financial Education. To speak with a fi nancial planner, contact USAA at (877) 913-6622 or
www.usaa.com/moaa, or visit www
.moaa.org/fi nancialcenter for other resources.
PHOTO: SEAN SHANAHAN
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92