Tip # 9 – Remember Your Children ’ s Welfare
― Plan out a way , no matter how small , to make 2017 a launching pad for your children ’ s financial benefit 10 to 12 years henceforth . For example , open a fund in a 529 account for a college education or the new 529 ABLE accounts for disabled children . Or , it could be a trust or a funding for a small investment account to serve as a security fund when they finish college . Such seemingly insignificant acts in the present can turn out to be lifesavers for your children once they reach adulthood . It sure beats having to keep them under your roof when they reach 30 .‖
Tip # 10 – Re-Financing Education
― Some people end up in a situation where they are still amortizing their college loans while trying to set aside some savings for their children . It might be the opportune time to consolidate or refinance your educational loans . Expect interest rates to rise even more this 2017 and for direct loans to vary wildly . Look for a much lower interest rate today . Consolidated loans can be accepted by repayment plans such as PAYE and REPAYE . Such plans can be appropriate for your income and , thus , help you manage payments in your early-career years . Moreover , consider your future and begin saving in 529 plans ; but make sure that you become selective when it comes to 529 plans as not all of them offer the same benefits . Those plans offered in Nevada and Ohio are quite popular ; but carefully check your own state ’ s version of the plan to find out your eligibility to avail of some special income-tax refunds or rebates .‖
Tip # 11 – Make Full Use of Flexible Spending Accounts
― Maximize the use of flexible spending accounts ( FSAs ) offered by your company for out-of-pocket medical expenses and dependent medical expenses . The maximum FSA contribution for this year is $ 5,000 for dependent care FSA and $ 2,600 for healthcare FSA . You can get significant tax savings because monies deferred into FSAs are tax-free — whether federal , state , local or FICA . Under the proper conditions , any person may save several hundreds of dollars yearly in tax savings by contributing to FSA at maximum levels . But do not forget that there is a use-it-or-lose-it proviso in FSAs . Whatever monies you have that remain unused at yearend will be forfeited . It is crucial for you to carefully compute the yearly contributions .‖
Tip # 12 – Formulate A Retirement Risk Management Plan
― Determining retirement income is not the same as saving and building up wealth for your future retirement . Firstly , the risks vary . Retirees must have a plan to address market fluctuations , their undetermined longevity and other various spending variable , for instance , a prolonged health care . Using only investments or insurance for planning is not the best method to build a plan to address various risks . Take time to begin educating yourself about retirement income to formulate a comprehensive and financially efficient strategy for handling all possible retirement risks .‖
There are several crucial principles you need to know to achieve a successful financial year . Planning gives you enabling power ; so , start planning . Set your savings and investment strategy on autopilot as much as possible . Regularly review your vision for your financial future . Evaluate your emergency fund , insurance coverages and your investments in 2017 , to keep them consistent with your objectives .