Dec 14, 2012|
Barry talks with Jonathan Clemmons the director of financial education from Citi personal wealth management to what to do with your investments.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Jonathan Clements is the director of financial education or city. Personal wealth management Jonathan welcome to the show are you don't. Hey we got a couple weeks left in 2012. What should we be doing regarding our investments between now and the end of the year. All of the big issues out there right now and you -- already in the Scott and generally is what's gonna -- with tax rate. Clay yet none of us sitting on the outside looking in note which -- wants an -- with -- it's at you know one thing -- shore. Taxes in 2013. On going. And that's a useful piece information given that we noted taxes on good down in 2013. And that is significant risk they are going up. Needed to be ready for your exit buys -- -- your financial advisor about -- that. Oversight stop position would be unrealized capital gains made -- -- -- Europe. The national right about the bloody puddle of your traditional IRA to a -- irate it is CE tortured how to that we increase or tax income. Just in case tax rates do go a lot. Let's talk about thank you -- let's talk about that -- higher rate conversion idea. What makes this a Goodyear to convert from a traditional hiring to a rock -- Well there are two reasons the personal background with a traditional IRA what you get. Up front often is an initial tax deduction people are priced comfort I have to pay taxes on the money coming out of that IRA. I can't trust that corroborated the initial tax deduction that come retirement income without account should be. Act for so what happens you can put a traditional -- -- are we at. Pay taxes on the taxable some concerted. But it doesn't seem like such a bad idea or 2012. Given that we could -- -- art tax rate in 2013. Times but yet. Meanwhile the second about the ones that many Roth IRA you know you're gonna get text creek road and given that we could be heading into an apartment where. Tax rates are going to be at -- higher level where they are today up eight net expert -- looks pretty practice. What do you think about the idea Jonathan of increasing the amount of money coming out of your paycheck and going into a 41 K plan. If if you think tax rates are gone up -- I think we've concurred that that's what's going to look at occur. Is -- a good idea to increase your contribution limit for 41 K plans. Well they're the troops abstract you want to write -- that strategy is get government spank your 401K plan for 2012. Got a couple more paycheck coming this year the issue Colby had a plan provider -- -- -- -- -- contribution -- that final paycheck just you know that we won. You know you'll save on taxes in 2012 and he'll have more money for comment Hank let's take every American KeySpan. Meanwhile going forward yet keep on that tradition that traditional 41 K -- you're gonna get that. You're future taxable -- effort to doubt that the two on with putting money into that point eight plan looks like you -- and Smart thing to do. And the people's spot next year the economic and that it is going up by 500 bucks beat. Porn -- limit for people below age it is confirmed in 20171500. Have you but it late morning starting next year. What about mortgages may it have we hit the bottom for mortgage rates because you know I just read a commercial -- it it's like the thirty year fixed rate -- -- 349. Our our mortgage rates were likely to increase or decrease in the year 2013. You know my crystal ball is really pretty cloudy but one thing we know for sure it's a great all our historical low. If you haven't yet read an as the new portable gauge that they spiked an Arab are. You should be -- visiting your predictable -- accurate and sit down and run in the numbers when you wanna find out it comes just across jury can add. And how much lower your monthly payment to going to be if you couldn't break even within a couple of years you know you can move during that two year window. And -- refinancing makes a lot of sense. This is also actually act. -- -- to people who are current warranty and you're renting. Game and everything is stable jolt you know you're gonna stick around in the air for at least 67 years is also a great time to think about buying that first but just because mortgage rates are. Rock bottom but also nationally. Home prices are still when he 9% below that -- 2006. -- rate -- -- some good points Jonathan thank you very much for your time we appreciate -- -- Jonathan Clements he's the director of financial education for city. Personal wealth money management up next June night has done some bargain hunting Yemen is a -- -- on black boots. I -- on your FaceBook. Violence in those I'm not allowed to go but I know where we can get a bargain on the squarely. If somebody wants to buy their wife a -- -- really tall black boots we tell us where we can do the combat -- -- bargain statement June -- up next in the financial exchange.