Continuing with our seriesSix Months to Financial Fitness, we’ve moved to month 4 where we will take a look at taxes and investments. This is a simple task for month 4 but is very necessary. This month, I want you to review every item on last year’s return to see how you can cut your taxes.
Keep track of deductions, especially those for cash expenditures, such as mileage, faxes, photocopies and charity. It all adds up and every little bit is a big help.
Contribute the maximum to tax-deferred retirement plans.
Consider your investment strategy. If you’re intimidated by the market, start with an index mutual fund. One that conservatively invests in stocks in the S&P 500. You can move on to other kinds of mutual funds later.
Be sure to come back tomorrow for month 5 where we will talk about insuring your future.