Just three days left in 2010

There are only a few days left in 2010. Is there anything you need to take care of before we get to 2011?

• Do you need to deposit any gifts of cash or checks you might have gotten during the holidays? (remember ATM deposits often take a couple days to be processed, teller transactions are processed more quickly)
• Any bags or piles of change sitting around the house? If you take it to the bank to be counted there might be enough for a couple New Year's drinks!
• Take a look at any spending accounts (healthcare, daycare, eldercare, etc)- do you need to buy a few more health items or turn in some receipts you've been saving? Each account might have different rules, grace periods, and deadlines, make sure not to miss them!
• Did you want to cash out of any stocks or other investments during 2010 to count the gains or losses in this year's taxes?
• Any deadlines at work for requesting reimbursement for expenses or miles?
• Do you need to max out your 401k, IRA, or a 529 account deposits? Again, there are often grace periods, but it's still worth checking.

You get the picture. Take care of these things now so you can relax and enjoy New Year's!

Don't Make these Retirement Planning Mistakes!

Have you thought about retirement lately?  Given that it's Monday I'm guessing you might have on your way to work this morning! This article in the Wall Street Journal outlines four costly retirement planning mistakes- including underestimating health care costs, giving too much money to adult children, being too conservative, and not planning for so much free time.

Four Costly Retirement Planning Mistakes

Take advantage of your employer! (ethically)

OK, did that post title hook you in? What I meant by that is to take advantage of the benefits, discounts, and other perks your employer might offer. Companies buy a lot of things, from computers and real estate to insurance plans. They buy in bulk. An employer in most cases can get a better deal than you can individually on health and dental insurance. They also might be able to negotiate deals on things like dry cleaning, certain restaurants, and daycare centers for their employees. Maybe there's an opportunity to get a transit pass at a discount. Take a look at your company handbook or intranet or talk to your HR person to find out if there is anything available for you.

Flexible spending accounts are also offered by some employers and can be helpful. There are healthcare accounts which allow you to put income aside to spend on healthcare expenses. Similar ones are available for day care and transportation. The big benefit is that your taxable income is decreased, which means your taxes are calculated off of a lower amount.

Another biggie is retirement. Many employers match part of your contribution to a plan such as a 401k. My former employer matched dollar for dollar up to 5% of my pay. That is free money! If you can't enroll right away when you start with a company, mark the eligibility date on your calendar and sign up the MINUTE you are able. I won't lecture on compound interest, but beginning to put away even 5% of your income for retirement now at age 25, 30, or even later will add up!

So, long story short, pay attention at employee orientation and during annual benefits enrollment. Take some time to understand what benefits are available and how to use them. Talk to your human resources or benefits representative or financial advisor. Then go ahead and take advantage of your employer!