We answer your money questions every Monday evening.
On November 21, our panel of Certified Financial Planners included:
Dennis Hebert, Strategic Wealth Advisors, 427-5999
Grace Ghezzi, Benefit Consulting Group, 474-1707 x460
Ted Sarenski, Blue Ocean Strategic Capital, 471-2672
>With the market down (the Dow dropped 2.11 percent on Monday), lots of concerns because the Congressional Supercommittee did not agree on cuts and New York's Governor Cuomo says that could cost the state $5Billion in federal money over the next five years, plus a loss of jobs on Wall Street, with a trickle down effect.
Our financial planners say that big market swings are becoming common, and if you don't need the money invested there, don't sweat it...it will bottom out and regain. It also helps your nerves, not to watch the Dow and other indicators moment-by-moment.
>Year end changes~ be aware that the end of 2011 means the end of several federal government programs that could impact you (though some could still be re-instated by Congress:)
~The 2% payroll tax cut ends, which means more will be taken out of your paycheck.
~Extended unemployment benefits, beyond 39 weeks, also will end.
~The increased AMT exemption ends, which means more people will have to figure the alternative (and usually more) tax
~The sales tax deduction ends. This helped in the purchase of big ticket items.
~If you are over 70 IRA withdrawals given to charity have been 100% non-taxable. That ends (so give this year!)
~Incentives for alternative fuels will end
~The education expense deduction (up to $250 on the front page of the return) is going away....
~The PMI (Mortgage insurance premium deduction) will end
~Adoption credits and adoption assistance programs end
~Credits for energy efficient appliances end---buy before the end of the year!
There are actually 55 other changes related to businesses and individuals, but not used by everyone.
>Tax advantages at the end of the year
If you're in the 15% bracket, and make up to $69,000 filing jointly or $34,500 filing singly, there is no federal tax on long-term capital gains, so you can sell holdings without extra expenses. It may be a good time to reshuffle your portfolio, with little financial penalty.
AND, here's a way to offset your gains in full:
$3,000 can be written off this year, and the rest of the losses can be carried indefinitely.
That means that you can write off another $3000 next, and the year after....it's all in the timing!
>Out with the old....
You can get rid of lots of documents, including credit card bills and other bills paid and old checks (banks have the records)
--be sure to shred, to protect from identity theft! (if you don't have a shredder, check with your county's recycling agency to see where you can get it done, free)
Some things to keep: divorce settlements, death certificates, mortgage and car title papers. We'll put a full list here, shortly.
We answer financial questions every Monday, 5 - 6:30pm in our NBC3 news. You can email questions in advance at money@cnycentral.com
