In article <NiiHb.542837$0v4.22432427[at]bgtnsc04-news.ops.worldnet.att.net> ,
"Elizabeth Richardson" <erichktn[at]worldnet.att.net> writes:

- quote -

Mid December:

- come up with a Net Worth statement. This is a page in an Excel "book", each
year being a different page, and one consolidation page so I can produce a bar
graph showing how my net worth has changed since I started tracking it (now
having years 1999 through 2003).

January:

- Adjust my 403(b) contribution if the limits had gone up (I already submitted
the paperwork on December 30.) Consider if I have to reduce my monthly taxable
investment amount to compensate for less take-home pay.

- Contribute full legal limit to the new year's Roth IRA. (I have savings on
autopilot, at that savings is enough to cover the annual Roth IRA contribution
in full come January as well as the annual property tax bill in October.) The
funding of the Roth IRA takes place as part of my annual financial review with
my investment advisor. (Hmm... my advisor has retired, her replacement is no
longer working there, so now I have a new person to work with and I don't know
her investment philosophy. Depending on how well our investment philosophies
mesh, or don't, I may change to a no-load fund family and skip the annual
reviews. No it is NOT a discretionary account.)

- Organize my list of itemized deductions. (One year I ended up having to write
to several 501(c)(3) organizations asking about IRS-approved letters. I have
been good on keeping those on file since then. However, it is one thing to toss
duplicate checks and paystubs into a folder, it is another thing to organize
that information, even though that information is in just one place.)

February:

- Prepare my tax returns. (I haven't figured out why people delay preparing
their taxes if they fear they may owe something--the earlier one prepares, the
more months one has to tighten the belt to meet the tax obligation by April
15.)

Mid April:

- Rebalance my 403(b) if directing contributions was insufficient to bring it
to balance. My 403(b) provider offers an annual rebalancing services on or near
one's birthday, so, if I finally do sign up for that, it will be done in
September instead of mid April.

June/July:

- Look at my cash flow and see if I can increase my taxable investments. I
usually do this late June or early July because any COLA affecting my paychecks
occurs on the start of the new fiscal year (July 1), so generally I consider
whether I can live without part or all of my increased take-home pay and, if
so, increase the automatic direct debit by my taxable investments accordingly.

Ongoing:

- I don't rebalance taxable investments because of the tax impact, but each
month when the fund family direct debits my checking account, I get on their
web site to see which fund is the most lacking as per my Asset Allocation
spreadsheet, and that is the fund that gets that month's money.

- Any time I have to dip into my savings (other than paying property taxes and
making the Roth IRA contributions), I take a serious look at the past couple
months of spending to see if the problem might be from living too high on the
hog.

Mark A. Young

"Elizabeth Richardson" <erichktn[at]worldnet.att.net> wrote in message news:<NiiHb.542837$0v4.22432427[at]bgtnsc04-news.ops.worldnet.att.net> ...
- quote -


I always review what I accomplished financially- which loans have been
paid off, how much credit card debt I have, Roth IRA contribution
amount so far and other little things which help me set a goal for the
next year.

In 2002 I paid off 3 student loans 4 years before they were due
In 2003 I applied that money to a larger loan, which I expect to have
paid off in April, 2004. This is the time of year my wife and I
discuss what to do with this money and set appropriate goals.

In 2002 I opened my Roth IRA by investing $250 per month. Because I
opened it in May, it takes until April to max out that year's
contribution. This is the year I expect to make all contributions in
the current year by raising how much I pay May-Dec to start 2005 off
with 2005 contributions in January.

We just bought quicken to automate our household finances, and I have
4 days next week to set all of that up before I start working again at
my day job.

other than that, hoping 2004 give the Buffalo Bills 5 more wins, my
IRA $3000 more contributions and my job keeps me employed. I can
control 2 of the 3.

regards.

Jim

Elizabeth Richardson <erichktn[at]worldnet.att.net> wrote:

- quote -

I pay my fourth quarter estimated tax payment in December (rather
than waiting for the January 15th due date) because it works
better for me to make the payment WITHIN the year to which it
relates. Ditto for business gross receipts taxes.

Also, contrary to popular mythology, I actually try to COLLECT
any money that clients owe me BEFORE the end of the year.

First thing the morning of January 1st, I prepare my tax return
for the preceding year (subject to modest adjustment as 1099s
arrive). Then I move on to other things.

In other words, I like to start the first of the year with a
~really clean~ slate. <grin
MTW

Do you do anything in particular regarding your finances in late
December/early January? An annual budget review, rebalancing, overall
financial picture?

For myself, I usually check to see if my asset allocation matches my plan
and do rebalancing if necessary. This year it'll be a little more work
because we're another year closer to retirement and I'm going to slightly
change the allocation. I usually plan at this time when and from which
account(s) the Roth IRA money will come.

Elizabeth Richardson