Good News Florida

FINANCE 42 JANUARY 2018 Good News • South Florida Edition We’ve reached the end of another year – which means it’s just about time for some New Year’s resolutions. Would you like to study a new language, take up a musical instrument or visit the gym more often? All these are worthy goals, of course, but why not also add some financial resolutions? Here are some ideas to think about: Increase contributions to your retirement plan. For 2018, you can con- tribute up to $18,500 (or $24,500 if you’re 50 or older) to your 401(k) or similar plan, such as a 403(b), for employ- ees of public schools and some nonprofit groups, or a 457(b) plan, for employees of local governments. It’s usually a good idea to contribute as much as you can afford to your employer’s plan, as your con- tributions may lower your tax- able income, while your earnings can grow tax- de- ferred. At a minimum, put in enough to earn your em- ployer’s matching contribution, if one is offered. Try to “max out” on your IRA. Even if you have a 401(k) or similar plan, you can proba- bly still invest in an IRA. For 2018, you can contribute up to $5,500 to a traditional or Roth IRA, or $6,500 if you’re 50 or older. (Income restrictions apply to Roth IRAs.) Contribu- tions to a traditional IRAmay be tax-deductible, depending on your income, and your earn- ings can grow tax-deferred. Roth IRA contributions are not deductible, but earnings can grow tax-free, provided you don’t start taking withdrawals until you are 59½ and you’ve have had your account at least five years. You can put virtually any investment in an IRA, so it can expand your options be- yond those offered in your 401(k) or similar plan. Build an emergency fund. Try to build an emergency fund containing three to six months’ worth of living ex- penses, with the money held in a low-risk, liquid account. This fund can help you avoid dip- ping into your long-term invest- ments to pay for unexpected costs, such as a new furnace or a major car repair. Control your debts. It’s never easy, but do what you can to keep your debts under control. The less you have to spend on debt pay- ments, the more you can invest for your future. Don’t overreact to changes in the financial markets. We’ve had a long run of rising stock prices – but it won’t last forever. If we experience a sharp market downturn in 2018, don’t overreact by taking a “time out” from investing. Market drops are a normal fea- ture of the investment land- scape, and you may ultimately gain an advantage by buying new shares when their prices are down. Review your goals and risk. At least once in 2018, take some time to review your short- and long- term financial goals and try to determine, possibly with the help of a financial pro- fessional, if your investment portfolio is still appropriate for these goals. At the same time, you’ll want to re-evaluate your risk tolerance to ensure you’re not taking too much risk – or possibly too little risk – with your investments. Do your best to stick with these resolutions throughout the coming year. At a minimum, they can help you improve your investment habits – and they may improve your financial pic- ture far beyond 2018. This article was written by Ed- ward Jones for use by your local Edward Jones Financial Advisor. Sponsored by William J. Holland at 954-768-0703. 5HDG 2XU ([FHOOHQW 3DWLHQW 5HYLHZV RQ *RRJOH (YHU\ &KLOG 6KRXOG 5HFHLYH $Q 2UWKRGRQWLF (YDOXDWLRQ %\ $JH 'HERUDK $ )HUUHU '0' 06 ::: ($67257+2'217,&6 &20 'U )HUUHU 'U +HUUHUR 0XVW EH SUHVHQWHG DW WLPH RI VHUYLFH &DQ QRW EH FRPELQHG ZLWK RWKHU RIIHUV 4WVJ 5VQTTKPIU ,ÕÌJÃÌÀÀ}ÃÌi>°V 9LD 9HURQD EHG EDWK LQ 'HHU &UHHN &RXQWU\ &OXE 5('8&(' 35,&( #IPGU 5VQTTKPIU Ƃ}iÃJÃÌÀÀ}ÃÌi>°V YYY UVQTTKPIUVGCO EQO buy one, FR ne get o EE V COMBO alidonitemofequalorlesservalue.E One timeuseonly.Notvalidwithanyotheroff Ft.Lauderdale: 17thStreet,PembrokeP Expires: / / ,k aklandP ers.V MEAL xcludesbeverageswithsaladsorbowls. alidatPDQFt.Lauderdale:O ar inesandPompanoBeachlocationsONLY. CODE: 841-481-319 ARK AKL ALE: O UDERD A L PDQ FT AND P :AT VISIT US CH ANO BEA PDQ POMP S PDQ PEMBROKE PINE TREET ALE: 17TH S UDERD A. L PDQ FT . Time for Financial Resolutions