RESOLUTIONS From page 33 If you ﬁnd you have more money left over, make a plan for this money. Invest it, save it or give it to charity. 3. Supplement your retirement savings with a Roth IRA. It’s often a good idea to give yourself choices on where and how you’ll take income in retirement. Some accounts, such as traditional IRAs and 401(k)s, are taxed as ordinary income when the money is withdrawn in retirement. Other accounts, such as Roth IRA’s or Roth 401(k)s, are not taxed when the money is withdrawn in retirement. This is because the money was contributed aftertax, meaning you already paid the tax on the money you add to your Roth IRA or 401(k). Instead of contributing to one or the other, it’s a good idea to contribute to both. If you haven’t yet opened a Roth IRA, consider doing so if you have greater than ﬁve to 10 years until retirement. 4. Start a 529 college savings plan for a child or grandchild in your life. These accounts can be opened on your own or with the help of a ﬁnancial adviser. Money contributed to a 529 plan grows tax-deferred until it is withdrawn to pay for qualiﬁed college expenses. Use www. savingforcollege.com to identify and compare 529 college savings plans in the state of Iowa, or the state where your child or grandchild lives. 5. Invest in a ﬁnancial plan. When we visit the doctor, we go to him or her for a complete exam. The doctor thoroughly checks us over before making a
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diagnosis. Even if we think we know what’s going on with our bodies, the doctor may discover an issue we didn’t know existed. If we had just come in and told him what we needed, the problem would have gone undetected, giving the doctor no chance to make an accurate diagnosis.
Unfortunately, this scenario can happen when we visit with our ﬁnancial professional. Instead of going in for a speciﬁc account or issue, I would encourage you to allow a trusted ﬁnancial professional to thoroughly analyze your entire ﬁnancial life, not just a portion. An adviser can often
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quickly recognize what could be going wrong and give you recommendations to help you improve your situation. If you’re interested in making some ﬁnancial life changes this year, don’t be afraid to ask for help. Just as a ﬁtness trainer can help you achieve physical
JANUARY 2011 health and well-being, a ﬁnancial adviser or planner can help you achieve ﬁnancial health and well-being. A ﬁnancial adviser can provide you with the tools, ideas and accountability you may need to make and follow through on your ﬁnancial New Year’s resolutions.