CLEVELAND — Money comes in plastic, paper and electronically, and is something we all use to live our day-to-day lives. Heading into the new year financial experts advise on how you can get ahead on managing your money.
“It’s huge. Having a good pulse on your financial health is imperative,” said Ed Grosko, of Integrated Wealth Management.
Here are a few things financial experts told News 5 will help your cash be good in the long run. Let’s start with your IRA.
“Today, you can actually remove some of your money out of your pretax IRA and actually deposit that money directly into a Roth IRA.” said Grosko.
They call this the method of moving your money out of jail.
“I like to call it jail when your money is tied up, but you're also moving your money into a tax-free environment and likely the tax environment's going to rise. The taxes are going to go up. It's going to really help you,” said Grosko.
Next up charitable gifting, with the new tax laws passed a few years ago, when you donate to charity you won't get those exemptions anymore because they are already in place. So experts recommend a donor-advised fund.
“A donor-advised fund is a very popular item these days where you can actually deposit as much money as you would want to deposit in that fund. This year you get a full tax deduction for it, but do not have to direct it to the charities of your choice until next year or the years after,” said Grosko.
Then for your health, Ed reminds people not to overlook your health savings account.
“Those are great tools to pay for medical expenses. You get a tax deduction for the money going in. It's even a better tool if you fund those over your lifetime or even over a year or two prior to retirement,” said Grosko.
Financial planning can be scary no matter where you stand, so you got to be honest with yourself to move forward.
“I’d say, get real. You know, I mean, really take a look if you don't know where you are. If you don't know where you are, you can never really make good decisions to know where you're going,” said Grosko.
So experts give three pieces of advice: get real, get clear and make great decisions.
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