With the market ups and downs we have experienced, it is time to look at what you have or have not and make the adjustments before the end of the year. Here are areas to be looking at.Retirement: After the increases and decreases of the markets, will you still be able to retire when you want to? If you are retired, do you need to supplement your income?Profit sharing/401(k): If you participate in your company’s profit sharing/401(k) program, are you at least matching the company’s contribution? When was the last time you answered the risk tolerance questionnaire, and have you properly allocated your investments? When was the last educational seminar you had at work?Traditional or Roth IRAs: Is this the year you begin to continue to convert your Traditional IRA to a ROTH? If you have not started taking your Required Minimum Distribution (RMD) you need to determine if this is a viable option. Are you over 50 years of age? Do you know about the makeup contribution options? The rules for ROTH IRA conversions change in 2010. What does that mean to you? Should you convert this year and/or next year?Insurance: What is adequate? When is it too much?Life insurance: Depending on the source, it could be anywhere from two times earnings to six times earnings. Many factors come in to play here. Is it you and your debt, or are you married and your spouse needs financial help if you die? Are there minor children involved? What happens to your business? Are you trying to leave a legacy for your heirs by buying insurance for “pennies on the dollar?”Property and casualty insurance: This insurance is a necessary coverage for people who drive cars and own or rent a home. How much is enough? Even better, when was the last time you looked? What is an umbrella policy, and is it worth the additional money?Taxes: I enjoy talking with people about this topic. There are very subtle changes that you can make to decrease your tax liability every year. Any good CPA or tax professional can run your income and withholding through their software program to find out if you should be withholding a greater or lesser amount and by how much. If you need to, pay 2010’s real estate tax before Dec. 31 to receive the deduction this year!Estate plan and conservation: When was the last time you looked at what you have? After January 2004, you may need the HIPPA language in your documents if you have a health care proxy and/or a health care power of attorney. This allows your named parties to be informed about your current health status. Without this language, they will not receive it. Catherine Hammond-Shell, founding attorney for the Hammond Law Group in Colorado Springs, said, “Over 70 percent of Americans have no plan whatsoever!” Are you one of those people?Do you know what major event happens in 2010 as far as estate taxes are concerned?Usually, I have disseminated the above information over three months. This is a quick and condensed version of topics that can take a longer time to discuss. Refer to my Web site at www.donnellservices.com for calculators and articles of interest.Thank you and have a safe and enjoyable series of holidays!About Alex Donnell and Colorado Comprehensive Wealth ManagementAs a nationally published author, Alex Donnell has written articles on estate planning, financial planning and investments. Alex Donnell, founder and president of Colorado Comprehensive Wealth Management in Colorado Springs, and independent investment advisor representative for Heartland Financial Consultants has been a part of the financial services industry for more than 17 years.Securities America and its representatives do not provide tax or legal advice. Please consult the appropriate tax or legal professional regarding your specific situation.Securities offered through Securities America Inc., Member FINRA/SIPC, L. Alexander Donnell, registered representative. Advisory services offered through Heartland Financial Consultants, L. Alexander Donnell, investment advisor representative. Colorado Comprehensive Wealth Management, LLC, Heartland Financial Companies, and Securities America are not affiliated. 11/2009
