It's 2012 time to shape up!

January 2012

The beginning of the new year is the best moment to press the restart button. I recommend that the first week of the new year, that we take a look at where we are, how we achieved our financial goals over the prior year, and setting new financial goals for the upcoming year.

This is the inaugural MoneyByte that will examine different opportunities for individuals and business owners to consider to enhance their financial flexibility and potentially reduce taxation. What is most important to remember as one reads this column is that facts and circumstances vary between every person. Our needs, wants, and desires are different, even if we are in the same line of business. It is important for the reader to seek appropriate counsel to appropriately address your personal facts and circumstances and how the opportunities may fit.

Beginning of Year Considerations

1. Get a better idea of where your money is going and budget effectively. A couple of key resources are Moneywise.com and Mint.com. Your finances are updated daily. Moneywise.com also has a variety of resources that give you daily updates that are unique.
   
   
2. Evaluate how you are saving. Get a second opinion on how investments are allocated. There are surprising observations that can be made on the vast majority of accounts.
   
   
3. Review your risk management policies. Are the beneficiaries correct? I the ownership correct? Do you have the appropriate coverage? Did you know that Nevada passed a law last summer that protects cash values from creditors. Much more to discuss here, a certain focus in the future.
   
   
4. Are you taking advantage of tax diversification in your investment strategies? Did you know that if you are over 50 years old, you can contribute $22,500 to a Roth? A Roth 401k that is. No income restrictions. Do the math on long term accumulations.  You may be shocked that you have been leaving this opportunity on the table.
   
   
5. Are you taking advantage of all of the tax opportunities available? The economic downturn has resulted in investing opportunities that the vast majority of business owners could not take advantage of before. For instance, one is the Savers Credit. If a married individual had $34,000 or less income, they are eligible for up to a $1,000 tax credit, up to 50 percent of a $2,000 contribution to an IRA. Every dollar counts.

Find an advisor that will have your best interest at heart.

Leonard C. Wright, CPA/PFS, CFP, CLU, ChFC is a member of the Nevada Society of CPAs, Money Doctor for the AICPA award winning financial literacy website 360financialliteracy.org, a member of the AICPA Personal Financial Planning Executive Committee where he Chairs the YEP Task Force, and is a member of the National Media Task Force.  He also is a member of the AICPA Financial Literacy Commission. Leonard has had a radio show Financial Fridays in Las Vegas for the last two years where he now co-hosts with Jason Thomas from FALCPA.COM and Scott Taylor from PBTK.com and features CPAs from Nevada, across America, and globally now on KLAV 1230 AM. For questions on resources mentioned in this article, you may contact him at wrightplanners@hotmail.com. You may get further financial literacy