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13 Financial New Year's Resolutions You Should Make Now

13 Financial New Year's Resolutions You Should Make Now

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Tuesday, 27 December 2016 05:07 PM Current | Bio | Archive

As we get ready to start a New Year, let this be the time for a new financial you!

Here are 13 financial New Year’s resolutions that you should make now to start 2017 off right.


    1. Follow a budget
    2. Have a financial plan created for you.
    3. Direct deposit some savings.
    4. Get serious about an emergency savings plan.
    5. Pay your credit cards automatically through an electronic funds transfer.
    6. Swear off interest by getting your credit cards down to zero.
    7. Verify you are not over paying checking account fees.
    8. Raise your credit card limit as this will enhance your credit card utilization percentage.
    9. Optimize your credit cards to ensure you are earning at least 1.5% cash back on purchases.
    10. Fund your traditional or Roth IRA
    11. Increase your 401k contributions

Highlights of changes for 2017

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs, and to claim the saver’s credit all increased for 2017.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase-out ranges for 2017:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range is $62,000 to $72,000, up from $61,000 to $71,000.
  • For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $99,000 to $119,000, up from $98,000 to $118,000.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $186,000 and $196,000, up from $184,000 and $194,000.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
     

The income phase-out range for taxpayers making contributions to a Roth IRA is $118,000 to $133,000 for singles and heads of household, up from $117,000 to $132,000. For married couples filing jointly, the income phase-out range is $186,000 to $196,000, up from $184,000 to $194,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The income limit for the saver’s credit (also known as the retirement savings contributions credit) for low- and moderate-income workers is $62,000 for married couples filing jointly, up from $61,500; $46,500 for heads of household, up from $46,125; and $31,000 for singles and married individuals filing separately, up from $30,750.

Highlights of limitations that remain unchanged from 2016

  • The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $18,000.
  • The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains unchanged at $6,000.
  • The limit on annual contributions to an IRA remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.
     

 And back to the tips:

  • 12.    Refinance your mortgage if you can.
  • 13.    Make a list of the things you did right and the things you did wrong with your money in 2016.
  • 14.   BONUS:  Set new financial goals for 2017, i.e. pay down on specific debt, start a college savings account, improve your financial literacy, etc. 

Jon Sanchez is a registered representative offering securities and advisory services through Independent Financial Group, LLC (IFG), a registered broker-dealer and investment advisor. Member FINRA/SIPC. OSJ Branch: 12671 High Bluff Drive Suite 200 San Diego, CA 92130. Sanchez Wealth Management, LLC and IFG are not affiliated entities. CA Insurance Lic. #0772626.


Jon G. Sanchez is the CEO of Sanchez Wealth Management, LLC, located in Reno, Nevada. He is the host of the Jon Sanchez Radio Show heard each day on Newstalk 780 KOH as well as an author of The 3 Pillars of Life, a speaker, cattle rancher, volunteer firefighter, a husband and father of three beautiful children. He can be reached at jon@sanchezwealthmanagement.com or (775)-800-1801.

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As we get ready to start a New Year, let this be the time for a new financial YOU! Here are 13 financial New Year’s resolutions that you should make now to start 2017 off right.
financial, new year, resolutions, money
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2016-07-27
Tuesday, 27 December 2016 05:07 PM
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