Use Holidays to Become Fiscally Fit!
MONEY CALENDAR FOR 2010
In this column, "Early Show" financial contributor Ray Martin notes dates you should circle on your calendar to help get your financial life in order.
Most folks resolve to improve their finances in the New Year. Saving more, paying down debt, spending less and protecting loved ones all top the list.
But taking on all of these goals at once can be overwhelming and lead to distraction -- which can result in frustration and making no progress at all.
There are dozens of financial actions folks could put on their to-do list this year. To help, here is a calendar with a year's worth of financial goals and action items aimed at keeping your finances on track with to-do's throughout 2010.
Dr. Martin Luther King Jr.'s Birthday - January 18: Focus on Education Goals
In honor of the civil rights leader and educator, make a plan to focus on your education goals this weekend. Parents and their college bound students should get a jump now and fill out the Free Application for Federal Student Aid form (FAFSA). Parents of young children should set up and start making contributions to a 529 education savings account. Also link your credit card and 529 plan accounts to rewards programs such as UPromise to earn additional cash contributions.
Make January Roth IRA Month
January is not really IRA month, but this year it should be. That's because beginning January 2010, ALL folks, regardless of their income, who have money in a traditional IRA are eligible to convert their IRA to a Roth IRA. Folks should take a careful look at conversion to a Roth IRA because it has some very attractive tax advantages - the biggest being that all qualified distributions in the future are tax free. If you do decide to convert an IRA to a Roth IRA, then get on with it in January. If you do this early, and your Roth IRA later falls in value, you'll still have time to undo the conversion later this year.
Your Birthday: Buy Life Insurance Before You Add Another Candle
If you need additional life insurance buy it before your birthday (and same goes for your spouse) - this will allow you to have the policy issued at your current/ younger age. This is called "issue to save age" and can save you money. Check out low-cost term life insurance at AccuQuote.com.
Groundhog Day - Feb 2: Come Out and Review Credit Cards!
New credit card rules go into effect on Feb 22nd, so before these changes affect your credit cards, come out of your borough and check your credit card statements for inserted disclosures on how your credit card will be affected. For example, you may now have to opt-in to allow your card to process charges that go over the limit….if not, and you are playing it close to your limit, your card could get declined!
Ides of March - March 15: Use it or Lose It!
March 15 was a bad day for Julius Caesar, but it doesn't have to be for you. Each year this date is the deadline for many employers flexible spending plans to allow employees to spend the use the money in their health care accounts for 2009….make sure you check to how much you have remaining early in March and make a plan to spend it before the deadline.
Tax Day - April 15: Settle Up on Taxes
Since 1955, this is the date when folks have to settle up with their federal and state taxes owed for the prior year. For many folks its tax filing time - either file your completed tax returns or file for an automatic six month extension. Either way, if you owe tax, there is no extension for that - you'll still have to pay up by April 15.
May Day - May 1: Save a Tree and Apply for Student Loans Online
By now, college-bound high school seniors will begin receiving word as to their FAFSA application - and this is the time to begin to complete those student loan applications online for Stafford and PLUS loans.
Memorial Day - May 31: Plan Your Estate
In honor of those who have made the ultimate sacrifice, take this time to make a plan to protect your family. Take action on preparing the basic estate planning documents which include a Will, Living Will and Durable Power of Attorney. Steps to accomplish this goal can include purchasing a copy of Quickens Willmaker or Plan Your Estate from Nolo.com. These programs and books can walk you through making a will and provisions you need to consider for your situation. Next, seek the advice of an attorney who can help you complete the process. It's also a good idea to prepare a personal document list that includes information on your investment and retirement accounts, deed to home, title to cars, boats, insurance policies, legal agreements, etc. Also include the names and phone numbers for guardians, executors, trustees, lawyers, accountants, investment advisors, etc and the location and contents of any safe deposit boxes.
Flag Day - June 14: Salute the Flag and Protect Your Home
When you hang the flag outside your home consider how you are protecting your most valuable asset. Make a point to re-view how much dwelling coverage you need at AccuCoverage.com and shop your home and auto insurance at
Independence Day - July 4: Increase Your financial Independence
Celebrate this holiday by taking steps to improve your financial independence. Check how much you have contributed to retirement plans and increase your retirement plan contributions so you will contribute as much as you can. The maximum amount of pre-tax contributions allowed is $16,500 (and $22,000 for folks 50 and older) in 2010. Also review your asset allocation, mix of funds and performance. If you need it, get a professional to review your retirement plan account to ensure your investments are in the funds and mixed in a proportion that is right for you.
Columbus Day - October 11: Explore Your Credit Report
Christopher Columbus conquered his fear and explored the oceans to find the new world. Take time on this holiday to conquer your fears and explore your credit report. Log onto to www.annualcreditreport.com to get a free copy of your credit report for each credit reporting bureau. Check it to detect evidence of ID theft and to ensure the information on it is correct. File a dispute to remove any false information.
Thanksgiving Day - November 25: Put Gift Cards to Use
If you haven't done so already, gather up all those unused gift cards and put them to use when you go out to start your holiday shopping. Unused gift cards are the ultimate turkey - they are an interest free loan to a retailer and some even diminish in value if unused a year after being issued. If there is nothing you want to by using the gift card, consider re-gifting the card or donating it.