gifting, 401ks major topics
We answer your money questions live every Monday during our evening news.
This week's panel:
Ted Sarenski, DB&B Financial Services Cynthia Scott, OMC Financial Services
Dennis Hebert, Hebert Financial Strategies
We had several questions about year end planning and money allocation.
>Gifting: You can give up to $13,000 a year to relatives, including children, but if you go over that amount you will be taxed.
The amount is cash as well as the value of trips or 'goods' like cars or clothes.
>401Ks: If you're not paying in, you're missing out. Compound interest will increase the value of your contributions dramatically, so if you've stopped contributing because of the bad economy, it makes sense to resume.
Also, if your company contributes, it makes sense to contribute up to that match amount, otherwise you're losing 'free' money.
>Financial planning. At the end of the year, it makes sense to figure out how much you're going to owe in taxes and if you need to make some changes now to ease the blow. You can do it yourself, or a financial planner can help. CPAs and Certified Financial Planners both have websites that can direct you to 'credentialed' candidates. http://www.napfa.org/ or www.aicpa.org/
