Jonathan Pond

Ponderings

Make Your IRA Contribution Early in the Year

…and your previous year’s contribution, if you haven’t already. Making your IRA contribution early in the year is better, because you may enjoy more tax-deferred earnings by doing so. Remember, to check income limits for a Roth IRA contribution. If you qualify, contributing after-tax dollars to the Roth IRA is too good to pass up. If you don’t, an old-fashioned Traditional IRA is still a good deal as your contribution and its growth will grow tax-deferred for a long period of time. Remember, missed IRA contributions cannot be made up. It is a “use it or lose it” offering that you should take advantage of if funds permit. Either way, this is a particularly propitious time to add to your IRAs and other savings, if possible, since stock and bond prices are lower.

Smart Money Tips

  • It’s time to organize your income tax records. You’ll be receiving a lot of mail and email this month, and next, containing information that you’ll need to complete your tax return. Create a file now where you can put all your tax-related documents. This will be a big help when you get around to preparing your return or turning over the information to your tax preparer. Don’t wait until the last minute to assemble the necessary items, and don’t forget to include any documentation for all charitable gifts made during the year. The better organized your records are, the lower the taxes you’ll pay and the less likely the IRS will come back with reminders of something you missed. Most importantly you will appreciate this approach when you actually sit down to begin the tax filing process.
  • A great website for active investors. Investors, and those who are looking for some good investment ideas, will find an enormous repository of information on the Reuters website. It includes extensive mutual fund coverage as well as helpful information on exchange-traded funds (ETFs), stocks, and broad coverage of global investment markets. So, if you like to make your own investment decisions or just enjoy being plugged into timely information on the investment markets, visit reuters.com and go to the “Markets” section.
Food for Thought

The past cannot be changed. The future is yet in your power.
      -Mary Pickford

Money Can Be Funny

Another advantage of being rich is that all your faults are called eccentricities.
     
-Anonymous

Word of the Week

gallimaufry (gal-uh-MAW-free), noun – A hodgepodge; jumble; confused medley.

Origin: Gallimaufry, originally meaning “a hash of various kinds of meats,” comes from French galimafrée, from Old French, from galer, “to rejoice, to make merry” (source of English gala) + mafrer, “to eat much,” from Medieval Dutch maffelen, “to open one’s mouth wide.”

The street fair turned out to be a gallimaufry of tents and people and activity, and the couple lingered, perusing the wares of the local artisans.