Saving money if we go off the Fiscal Cliff - New York News

Saving money if we go off the Fiscal Cliff

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The United States could go off the Fiscal Cliff on New Years Eve. If that happens, wealth management expert James Studinger has a few tips on how you can lessen your financial risk.

1) Gather your receipts - be more diligent than ever throughout the year. It's not a project that we look forward to, but capturing all your available tax deductions could save you hundreds or even thousands of dollars.

2) Get a system of recording your deductible expenses early and keep good records throughout the year.

3) Ask your accountant during your tax meetings for ideas on items you could deduct for the tax year 2013 to be sure that you don't miss any opportunities.

4) Make a Roth contribution - If you waver between a Roth and a deductible IRA contribution, you might want to consider a Roth for 2012. You have until tax filing (April 2013) to contribute, and it could prove more valuable to you if tax rates go up in the future.

5) Build your own escrow - by paying real estate taxes on your own, you can decide to make the payment in the current or next tax year. This will help later in 2013 when its clearer what the tax rates will be for both 2013 and 2014.

6) Reduce reliance on fixed income sources - The trend has been for companies and governments to limit their future legacy expenses. Prepare by building investment reserves and reducing your overhead. See if you can make it to retirement debt free.

James has also written a book call Wealth is a Choice.

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