Tips For Getting Your Financial House In Order Before 2013

As 2012 comes to a close, it’s time to think ahead and make sure your financial house is in order. I spoke with Cliff Morgan, a busy father of two and Strategic Wealth Money Manager along with College Planning Partner to find out what we can do in 2012.

“Now that holiday shopping is over, it’s time to focus on your financial picture,” says Mr. Morgan, who offers the following tips:

Last-Minute Tax Planning: What’s Current and What is Changing in 2013

‪1. ‬Capital gains rates are set to increase from 15 to 20 percent (that’s a 33 percent increase).

‪2. B‬e aware that starting in 2013, a new 3.8 percent Medicare tax on unearned income, including interest, dividends and capital gains, will take effect. So cashing in these investments may make sense in the proper situation.

3. Some college credits are expiring, but there are over 153 different strategies for families with college students.

‪4. ‬Set up IRA and Roth IRA accounts before December 31st.

5. Completing Roth conversions this year may save you a significantly.

6. Gift generously before the end of the year.

7. Start creating your 2013 tax plan, because taxes are going up!

2013: What’s on the Schedule (but not certain)

We know that, as of December 2012, the following is on the docket for 2013:

-A return to federal income tax rates of between 15 percent and 39.6 percent

-Elimination of qualified dividend income (QDI) preferred tax rates

-A return to $1 million for estate and gift exemptions

-Elimination of American Opportunities Credit

Mr. Morgan hosts free educational seminars and would love to help you. If you would like additional information click here.

Christine Bachman

About Christine Bachman

Christine Bachman is founder and president of Plan It PR, a public relations and marketing firm. The mother of five shares tips and survival stories in “Play Dates and Power Lunches.” Ms. Bachman started working public relations after a long career in broadcast journalism, which included work as a television anchor, reporter and producer.