Want to know what to do with December money to succeed in January 2017 onwards? Certified financial planner Ken Moraif shares expert ways to ensure financial health next year. According to Moraif, here are six financial lessons which encourage financial success in 2017.
Maya Kachroo-Levine spoke to Ken Moraif last Nov. 21 about money lessons that will keep financial health in January 2017. Moraif then enumerated six financial lessons that will ensure financial success next year.
Get credit card debt payable before the cut-off time. Showing love to family and friends must not relate directly to a high increase in the bill of a credit card. According to Moraif, it is not wise to make a purchase using the credit card and not keeping track of the overall expense till the procurement of the credit card bill. What is wise, as per Moraif, is always to ensure that one can pay the total balance on credit card before the card's interest charges come to due date.
Retirement from work means retirement from debt too. Moraif said that he always tell his clients that when they are retired, their debt must be retired as well. Kicking off 2017 on a good financial success means safeguarding money during December, even though there are so many temptations to spend it.
Never break income tax planning. Moraif identified few things always to remember when handling December money: few actionable things to review were recognizing opportunities for loss harvesting and capital gain, considering RMD timing, maximizing contributions to the retirement plan and exploring re-characterization opportunities and all Roth conversion. He also added that December is a time for anybody to think of charitable gifting and make the most of the yearly exclusion gifts.
Do NOT explain dishing out two times "fun budget" only because it is the holiday season. It is not only Christmas gifts that mount up the balance on credit card during December. There are holiday parties, expensive reunions or meetups because family and relatives are all in town and festivities during New Year. Moraif encourages everyone never to let the old saying, "eat, drink and be merry," to affect the financial scale.
Never wait until December to max out retirement accounts. "It is a better financial practice to fund it throughout the course of the year so that the money has a longer period to grow," Moraif said to Forbes, adding "waiting until the end of the year to do so loses that whole years' worth of growth." He suggests funding IRAs and retirement plans in work per month starting January to remove willpower from the equation and place it on automatic pilot.
Never equate the happiness of children to money. As per Moraif, during holiday seasons must be more about having fun, creating beautiful memories and spending time together. And not about paying expensive gifts for children just to show love. To teach kids the value holiday seasons, give them best memories and thoughtful presents.
Based in Texas, Moraif has been in the industry of financial services for 28 years. He ran a radio show entitled "Money Matters," and named by Barron as among the top 100 financial counselors.