4 by 4 – Four Year End Ideas for the Last Four Weeks of 2009
By Jeff A. Christie, December 9, 2009
People always ask me what they should take care of before the end of the year; so today’s blog will touch on one idea you can implement each week for the next four weeks to get you prepared for 2010.
- Review your capital gain/loss position in your taxable accounts. This is important every year, but has added urgency this year, as many people expect the government to raise taxes on capital gains in 2010. Many times, people will try to get this net gain/loss to zero, or a slight loss; but this year it may be worthwhile to recognize a net gain, as it may be the last time you can do so at the lower rate.
- Conduct a beneficiary audit. Although this may not sound like the most exciting tip, it is extremely important, and year-end is a great time to take care of it. To conduct the audit, call each company you have a 401(k), IRA, annuity, or other type of account that has a beneficiary. Ask that they send you written confirmation of who the beneficiaries are if you were to pass away. I am willing to bet that you will be shocked, and that the majority of you will have some type of mistake. You have worked hard for your assets, be sure they go where you want them.
- Create a document locator with a password keeper. A document locator is the compass rose of your estate plan. It tells your trustee/executor where documents are, where accounts are held, insurance policies, and also what the passwords are to access each of these different pieces. This can be extremely important and helpful to someone trying to settle your estate, or take care of you if you were to become incapacitated. Our firm has created a document locator, if you would like a copy, feel free to email me at jchristie@kenstern.com and request a copy.
- Give gifts that have special meaning to you. I am not talking about just handing out your possessions, but really taking the time to give gifts to your beneficiaries that have a special meaning to you, that they may not realize. It is your legacy; make sure they know why you have always worn that watch, or why that painting has always been in the hallway, or who gave you that set of china. The holidays are a great time to do something like this, as families are already together, and you have the opportunity to take time to tell your story, and tell why that item meant so much to you, and why you want them to have it.
As a fifth and bonus tip, I would encourage you to look into the idea of converting your IRA to Roth IRA, please see one of my earlier blog posts for more details.
I hope this helps you get prepared for the New Year; we don’t have much time left to get ourselves ready.
For more information, feel free to email me at jchristie@kenstern.com or call me 1-800-529-2884.
Jeff A. Christie
Wealth Manager
CRD# 4889641
CA Insurance License# 0F01343