Make a New Year’s Date to Talk to Your Spouse About Finances
You most likely have your own financial plans and goals for 2019, but if you are married or in a partnership, then one of the most important things you can do to channel your finances towards your chosen course is to be on the same page. with your soul mate. …
You may be scheduling periodic checks or planning to speak openly with your partner at some uncertain point in the future. But why put off? Kiplinger believes Lisa Brown, a certified financial planner, does so on January 1st.
Brown writes that on the first day of each year, she and her husband sit down to plan for the year ahead. This allows them to accomplish two tasks, she writes:
This helps us balance our family planning activities while providing a quick overview of our current investments. On the one hand, it’s fun to think about a trip to Disney or a family-friendly Caribbean cruise. On the other hand, we check the status of our cash and investment accounts to make sure we have enough money to live comfortably now, as well as 20 years from now, while paying three higher educations in between.
If you’re looking forward to a more rewarding 2019, here are a few things to consider when dating your money.
Pay off debts
If you’re like your typical American family, you’ve saved up some cash over the holiday season. You will want to pay them off as quickly as possible and also take into account any other debts you have. Then make a repayment plan.
Plan your vacation
Especially if you have children, it is very important and necessary to plan where you will go, how much time you will fly away and how much you will spend.
Automation of contributions to an individual retirement account
In 2019, you can deposit up to $ 6,000 in an IRA or Roth IRA if you are under 50, and $ 7,000 if you are over that age. “I love the discipline and the challenge of saving as much as possible each year because you can’t go back and make up for missing years of IRA contributions,” Brown writes. By discussing this with your spouse or partner, you can be on the same page and make sure you are on the right track to make the most of your contribution.
And, if you can and are eligible, increase your 401 (k) fee .
Consider your children’s higher education
If you are planning to help your children pay for college, then it is worth raising the fees to 529 or exploring options for starting such an educational institution. (Morningstar has a great breakdown of the best bills in the country.) This will not only help your kids in the future, but it will also help you pay taxes. “In addition to giving families the opportunity to save money, many states provide tax deductions for these contributions,” Brown writes. “We live in Georgia, which allows a married couple to deduct the first $ 4,000 they contribute for each child from state income tax.”
Review your health plan
If you have a high deductible health plan, you can open a health savings account that offers many benefits. You can deposit money before taxes (reducing your general tax bill) and use the money to pay your medical bills. If you don’t spend, you can roll over to retirement.
You can deposit up to $ 3,500 in 2019 if you have one-time insurance, or $ 7,000 for family insurance.
“Since we want to set aside money for all of these accounts, we are planning monthly savings for the 401 (k) and 529 plans, as well as periodic one-time deposits in our IRAs and HSAs throughout the year as we have additional cash flow,” suggests Brown. … …
So, on January 1st, you may have a mild hangover or something else is going on. And that’s okay! But the sooner you sit down together and discuss what you want to achieve, the better your chances of crossing some of your financial goals off your list.