Page 29 - Leisure Living Magazine Holiday 2018

Get Financially Fit
In 2019
By Brian C. Duttera, True Alpha Wealth Management, Brian@truealphawm.com
With a fresh start on the horizon, the New Year is one of the best times to review your finances and make sure you’re all set for the 12 months ahead. Once the clock strikes midnight (and maybe after a good night’s sleep and a delicious New Year’s Day brunch), set aside some time to make sure your finances are in top shape.
Here are four financial points to consider as we move into 2019.
1. Debt: The New Year is a great time to take a look at your outstanding debts. Figure out which payments or cards have the highest interest rates, and commit to paying those as soon as possible. Specifically make sure to review the payments and rates for your mortgage, and see if any adjustments can or should be made. With interest rates rising, 2019 may be a particularly good year to think about refinancing, especially if your rate is 4.5 percent or above. Additionally, consider making one extra mortgage payment at the beginning of 2019. Making just one additional payment each year can nearly cut your mortgage in half.
2. Retirement savings: The start of the year is also a good time to review your IRA or 401(k) plan and related contribution restrictions. For IRAs, the maximum amount you can contribute in 2019 is $6,000 if you’re under 50, or $7,000 if you’re over 50. Similarly, 401(k)s, 403(b)s and 457(b)s have different maximums ($19,000 or $25,000) based on which side of 50 you sit on. In 2019, consider increasing your contribution by at least 1 percent, or maximizing the amount you can contribute, especially if it has recently increased due to your age. By taking this step at the beginning of the year, rather than around tax time, your interest can compound for longer.
3. Retirement income: If your retirement funds rely on taxable accounts and you’re looking for cash flow, consider switching to municipal bonds for a tax-free source of income with solid interest levels. The best advice is to simply check in with your financial advisor to make sure your investments are in line with the lifestyle you are hoping to lead in the year ahead. This will differ depending on how close you are to retirement, or
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if you’re already in that stage of your life.
4. Taxes: With the Tax Cuts and Jobs Act firmly in place, many updates have been made to the tax code. Some of them kick in during 2019, so it might be a good idea to review how much you should be withholding with your financial advisor or CPA. One odd addition – if you’re planning to get divorced, try to finalize it before 2019. After this point, spousal payments are no longer
deductible.
The New Year isn’t just a time to make
resolutions about your physical or mental health – it’s an ideal time to review your financial health as well. Make sure you’re making the most out of your finances and keeping up with the changing regulations and requirements after the clock strikes midnight.
Brian C. Duttera is President, Wealth Management Advisor and Portfolio Manager at True Alpha Wealth Management in Sandusky, Ohio. The firm offers true wealth management by taking a holistic approach to client relationships utilizing financial planning as a means to portfolio management. Brian and his team offer customized solutions to a select number of individuals, their families, entrepreneurs, C-level executives, retirement plans, and foundations, in addition to a specialization in families with special needs and non-traditional families. For more information on True Alpha Wealth Management, please visit www. truealphawm.com.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Private Wealth Services, LLC. True Alpha Wealth Management is a member firm of Kestra Private Wealth Services, LLC, an affiliate of Kestra IS. True Alpha Wealth Management and Kestra IS are not affiliated.
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