Financial success tips for 2020 from Phil Cooper

WMBD This Morning

Estimate Your Tax Liability– It might seem daunting to start running your tax numbers, but you’re better off taking action now than ending up with a surprise tax bill in April. Estimate your tax refund or amount you owe by using an online paycheck calculator IRS tax withholding calculator or by filling out a sample tax return. If you discover you aren’t paying enough or you are overpaying in taxes, an easy way to fix the problem is to fill out a new W-4. There is an IRS calculator to help you determine your correct withholding. You can find it on my website, kingdompurposes.net

Consider a Conversion– As the year winds down, consider converting from a traditional IRA to a Roth IRA. Talk with your
financial professional to see if this a good option for you. With the recent tax law changes, many people may find themselves in a lower tax bracket, making now through 2025 a good time to consider converting. Although
you don’t get tax breaks upfront on a Roth IRA, your withdrawals are tax-free as long as you are older than 59 ½. Taxes are just one part of our holistic planning process at Kingdom Purposes, taking into account income planning, estate planning, investments, life insurance, as well as long-term care.

Increase Your 401(k) Contributions– The contributions you make to your 401(k) plans are tax deductible, reducing your taxable income for the year.
By increasing your contributions, you will be taking home less money, but you will be paying less in taxes and saving more for your future! How much you decide to put in your 401(k) is entirely based on your personal situation, but I recommend at least 10-15% of your income. Those nearing retirement can make catch-up contributions to their 401(k). If you’re 50 and older, you can contribute up to $25,000. Try to stretch yourself and save as much as you can to put yourself in the best position for retirement.

Plan for 2020-The end of the year is a great time to check your progress toward your short-term and long-term goals.If you anticipate any major life changes like getting married or having a baby in 2020, you may need to shift your lifestyle to match your financial goals. Don’t be afraid to ask for help. Sit down with a financial professional to review your goals. We understand people are at different points in life. We identify goals and dreams, create a tailored plan and deliver it with each client’s best interests in mind. We help show clients how to build a plan that works
for them.

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