Tips for setting yourself up financially in 2020

Published: Dec. 29, 2019 at 6:52 AM EST
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(12/29/19) - The end of the year often comes with so much holiday spending that many people don't consider financial strategies that can set them up for a better 2020.

Financial professional Michael Foguth, of Foguth Financial Group, stopped by the ABC12 studio Sunday to give people some strategies to consider for the end of the year.

1. Maximize your retirement contributions. Now is the time to make sure that you have contributed the maximum amount to your 401(k), IRA or HSA. Remember your HSA can be treated as a retirement account when you retire.

2. Consider deferring income into 2020. If you are in a high tax bracket for 2019, consider deferring income into 2020. Under the recent tax act, you must have more than $24,000 worth of deductions in order to itemize on your tax return. Accordingly, you should bunch your deductions. For example, pay expenses this year, make contributions now and pay state or property taxes before the end of the year.

3. Look for losses on your investments. Review your investment portfolio and look for losses, then harvest those losses and use them to net against gains on other stocks which you had during the year. By doing this you can essentially set off the loss’, dollar-for-dollar against the gains.

Check out the attached interview or click on the related link to learn more.