*Your March Financial To-Do List*
March is the perfect month to get your financial affairs in order. The reason: You are probably already organizing your documents to complete your taxes. While you sort through your tax documents closely, examine your W-2 and 1099 forms. They'll give you insight into how your income is growing and how successful you've been when it comes to saving and investing.By comparing your W-2s over the years, Christing Benz, director of personal finance at investment research firm Morningstar, says you can see if your salary is increasing at a pace that is acceptable to you. If so, you should also try to increase your savings rate.
Even if your salary isn't rising, you may still want to consider saving more, perhaps in your retirement accounts. Your 1099s will give you a glimpse into how much (or little) you've made from money deposited in savings accounts. While interest rates are still very low, it's worth realizing that you can often eke out a little more interest by putting your money into an online savings account, since those rates tend to be higher.Here are some other easy steps you can put on your financial to-do list this month.*Lower Your Tax Bill*
If you haven't filed yet, there are three easy ways to lower your tax bill. One is to lower your adjusted gross income by adding to your retirement savings through an IRA. You can contribute up to $5,500—$6,500 if you’re over age 50—and the deduction will apply to your 2015 taxes if you make the contribution before this year’s tax deadline of April 18 (April 19 for Massachusetts and Maine). See the IRS website for more details.
Another option, if you made money from self-employment last year, is to contribute to a Simplified Employee Pension Individual Retirement Arrangement (SEP) IRA. The SEP IRA allows you to put aside up to $53,000 or 25 percent of your income—whichever is smaller—regardless of whether you’re covered by a retirement plan at your main job.
You can also create a Health Savings Account (HSA) in conjunction with high-deductible health insurance plans. An individual can allocate up to $3,350 for 2015; families can fund their account up to $6,650. You can draw on the account to pay for out-of-pocket health-care costs. You can make contributions to your HSA for 2015 until April 18.
*Consolidate Your Investments*
A great financial to-do this month is to find ways to save money on fees, and further reduce your paperwork and inbox clutter. You can do this by transferring stocks, bonds, mutual funds, and exchange-traded funds so that all your investments are at one brokerage firm or mutual fund company.
Before transferring funds, though, find out whether you'll be charged to move your investments. You should also calculate how much you can save on fees and commissions by consolidating, since you will now have a higher balance at one financial institution. There should be no unpleasant tax consequences; you're not liquidating the old accounts but merely moving them to a new custodian.
If a move makes sense and you make frequent trades, choose a brokerage firm that charges lower commissions than you currently pay. If your strategy is to buy and hold, commissions may not be a major consideration but you should still choose a company that waives account maintenance fees and offers funds with low expenses.
*Conquer Your Paper Piles*
Getting your financial papers in order helps lower stress in your life, says Peter Walsh, author of "Does This Clutter Make My Butt Look Fat?" (Simon & Schuster, 2008). But you have to know how long to keep your records.
You can divide nearly all of them into four categories: Papers that you need to keep for at least one calendar year, papers that can be destroyed because they cover items you no longer own, tax records, which you should save for at least three years, and documents that you need to keep indefinintely. Here are more details on each of these categories.
*Buy Products on Deep Discount*
Consumer Reports product research experts, who track prices all year long, have compiled a list of items that are typically at their lowest price in March. To get the best deals, look for sales on boxed chocolates, digital cameras, ellipticals, humidifiers, treadmills, and winter clothes this month.
If you think you can get an even better deal on products and services try haggling. In a Consumer Reports National Research Center survey of 2,000 American adults, 89 percent who said they haggled received a better price at least once.
*Consider Buying Flood Insurance*
Before April showers arrive, another financial to-do is to see if you need to buy national flood insurance. FloodSmart.gov, the Federal Emergency Management Agency website promoting national flood insurance, estimates that nearly 20 percent of flood claims originate in areas deemed "moderate" or "low" risk. So regardless of where you live, flood insurance may be worth buying. Keep in mind that you can't file a claim until 30 days after your coverage starts.You can purchase flood insurance from a private insurance company but not many private insurers offer their own flood insurance. Or you can get coverage through the National Flood Insurance Program, backed by the federal government. These policies are often sold through agents that sell homeowners insurance.*Consumer Reports has no relationship with any advertisers on this website. Copyright © 2006-2016 Consumers Union of U.S.*
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March is the perfect month to get your financial affairs in order. The reason: You are probably already organizing your documents to complete your taxes. While you sort through your tax documents closely, examine your W-2 and 1099 forms. They'll give you insight into how your income is growing and how successful you've been when it comes to saving and investing.By comparing your W-2s over the years, Christing Benz, director of personal finance at investment research firm Morningstar, says you can see if your salary is increasing at a pace that is acceptable to you. If so, you should also try to increase your savings rate.
Even if your salary isn't rising, you may still want to consider saving more, perhaps in your retirement accounts. Your 1099s will give you a glimpse into how much (or little) you've made from money deposited in savings accounts. While interest rates are still very low, it's worth realizing that you can often eke out a little more interest by putting your money into an online savings account, since those rates tend to be higher.Here are some other easy steps you can put on your financial to-do list this month.*Lower Your Tax Bill*
If you haven't filed yet, there are three easy ways to lower your tax bill. One is to lower your adjusted gross income by adding to your retirement savings through an IRA. You can contribute up to $5,500—$6,500 if you’re over age 50—and the deduction will apply to your 2015 taxes if you make the contribution before this year’s tax deadline of April 18 (April 19 for Massachusetts and Maine). See the IRS website for more details.
Another option, if you made money from self-employment last year, is to contribute to a Simplified Employee Pension Individual Retirement Arrangement (SEP) IRA. The SEP IRA allows you to put aside up to $53,000 or 25 percent of your income—whichever is smaller—regardless of whether you’re covered by a retirement plan at your main job.
You can also create a Health Savings Account (HSA) in conjunction with high-deductible health insurance plans. An individual can allocate up to $3,350 for 2015; families can fund their account up to $6,650. You can draw on the account to pay for out-of-pocket health-care costs. You can make contributions to your HSA for 2015 until April 18.
*Consolidate Your Investments*
A great financial to-do this month is to find ways to save money on fees, and further reduce your paperwork and inbox clutter. You can do this by transferring stocks, bonds, mutual funds, and exchange-traded funds so that all your investments are at one brokerage firm or mutual fund company.
Before transferring funds, though, find out whether you'll be charged to move your investments. You should also calculate how much you can save on fees and commissions by consolidating, since you will now have a higher balance at one financial institution. There should be no unpleasant tax consequences; you're not liquidating the old accounts but merely moving them to a new custodian.
If a move makes sense and you make frequent trades, choose a brokerage firm that charges lower commissions than you currently pay. If your strategy is to buy and hold, commissions may not be a major consideration but you should still choose a company that waives account maintenance fees and offers funds with low expenses.
*Conquer Your Paper Piles*
Getting your financial papers in order helps lower stress in your life, says Peter Walsh, author of "Does This Clutter Make My Butt Look Fat?" (Simon & Schuster, 2008). But you have to know how long to keep your records.
You can divide nearly all of them into four categories: Papers that you need to keep for at least one calendar year, papers that can be destroyed because they cover items you no longer own, tax records, which you should save for at least three years, and documents that you need to keep indefinintely. Here are more details on each of these categories.
*Buy Products on Deep Discount*
Consumer Reports product research experts, who track prices all year long, have compiled a list of items that are typically at their lowest price in March. To get the best deals, look for sales on boxed chocolates, digital cameras, ellipticals, humidifiers, treadmills, and winter clothes this month.
If you think you can get an even better deal on products and services try haggling. In a Consumer Reports National Research Center survey of 2,000 American adults, 89 percent who said they haggled received a better price at least once.
*Consider Buying Flood Insurance*
Before April showers arrive, another financial to-do is to see if you need to buy national flood insurance. FloodSmart.gov, the Federal Emergency Management Agency website promoting national flood insurance, estimates that nearly 20 percent of flood claims originate in areas deemed "moderate" or "low" risk. So regardless of where you live, flood insurance may be worth buying. Keep in mind that you can't file a claim until 30 days after your coverage starts.You can purchase flood insurance from a private insurance company but not many private insurers offer their own flood insurance. Or you can get coverage through the National Flood Insurance Program, backed by the federal government. These policies are often sold through agents that sell homeowners insurance.*Consumer Reports has no relationship with any advertisers on this website. Copyright © 2006-2016 Consumers Union of U.S.*
*Subscribe now!*
Subscribe to *ConsumerReports.org* for expert Ratings, buying advice and reliability on hundreds of products.
--------------------
Update your feed preferences
Reported by Consumer Reports 1 day ago.