Now that we’re a few weeks into the new year, it’s a great time to think about how to turn challenges into opportunities, especially as they relate to your finances. Just as one needs to train for a marathon, or lose a pound or two a week to reach a goal weight, tackling financial challenges one small step at a time can make what seemed like insurmountable hurdles into satisfying accomplishments.
Making even one change to your finances is empowering, and at the same time, it won’t feel overwhelming. Here are a few examples of what you can do:
- Be honest with your spouse about what you’re spending and your financial goals. By having honest and transparent conversations, you can work together to create a financial strategy that works for your present and future. Successful investment planning for couples requires that both of you work as a team: getting on the same page about your long-term goals, and actively participating in the decision-making process.
- Invest in bonds of municipalities providing essential services like water. These bonds can provide handsome tax advantages, as they partially offset higher tax rates by sheltering interest income from federal income tax.
- Avoid claiming Social Security early. For each year you wait to collect a benefit, you will get an increase in benefit.
I’m here to help you turn your financial challenges into satisfying accomplishments, one step at a time. Please let me know have questions or comments – I’d love to hear from you. Happy New Year and here’s to a great 2012!