Christmas Blessings This Holiday Season

Published On: December 26, 2009

The hustle and bustle is over.  Packages are unwrapped. Everyone is stuffed from that wonderful dinner.  Time to just sit back and relax.   BUT, what about those year end financial and legal decisions that need to be made BEFORE January 1, 2010 rolls around?  Some decisions must be made by the end of the year.  We procrastinators have run out of time!

Take the time to go through your checkbook.  Make a record of any payments that have been made that cover transactions that will affect your income tax return.  Although we don’t mind paying our fair share of taxes to Uncle Sam, no one likes to miss a deduction that can legitimately reduce that ‘fair share’.

Did you purchase or sell a home in 2009?  Certain expenses connected with the sale or purchase of a home can help to reduce your tax liability.

Were you planning to give a gift to a family member in 2009?  The gift tax exemption is $12,000 per recipient.  You and your spouse are permitted to EACH give this tax exempt gift.  Talk to your financial planner or Attorney if you plan to use this as part of your estate planning.

What about your life insurance policy?  If you have not reviewed this with your insurance agent in some time, make an appointment and discuss any changes that may have occurred…death of a spouse….children all grown…financial needs have changed.

Long-term care and disability insurance are also areas that need investigation.  No one likes to think about these issues but the younger you are when such insurance is put in place, often times the lower the premiums are.  Again, this can be part of your estate planning.

How can we not think about health insurance?  As a Senior Citizen, I have to review my current Medicare Part D Plan and make a decision to keep my existing plan or switch to a new, better one.  If I don’t make a decision by December 31, 2009, I will simply continue with my existing plan.  Is my current plan the best one???  I have no idea!  CVS Pharmacy has a program that is supposed to examine  your current plan and let you know if that plan is the best one.  Having gotten nowhere with their computer-generated analysis, I went in person to the store and they will let me know this week.

Health Insurance Reform is such a ‘hot topic’ these days.  Again, I would suggest that you discuss, in person, the various options available to you, with your Human Resource Department at your place of employment, or with a qualified Health Insurance Provider..

If you are one of the legions of people who have no health insurance, we in Phoenixville are fortunate to have THE CLINIC which provides medical attention to uninsured patients in the area.

We talked in a previous column about Credit Scores and how to improve them.  I will be addressing this topic again in January.

I hate to admit that I am one of those people who does not have those important documents covering sickness and death.  2010, however, is the year that I finally bite the bullet and put in place these so important documents:

·        Living Will

·        Power of Attorney

·        Durable Power of Attorney

·        Medical Power of Attorney

What about refinancing your existing mortgage?  With the incredibly low interest rates that are available today, consumers with good credit can reduce their monthly payments by hundreds of dollars.  Consolidating outstanding debt at the same time by borrowing additional funds is not always the best route to take.  In fact, with home values being lower at the present time, even refinancing can be difficult because of the loan-to-value ratio factor.

In closing, get those financial records out.  Put them in order.  Make last minute donations in the year 2009.  Pay your January 2010 mortgage payment in 2009 to take advantage of the additional interest paid. 

See you in 2010!  Happy New Year!