Getting A Bargain Makes Us Feel
A Little Smug for finding that great deal.Part 8 of 13:Â Take Care of Your Car
Â Â Every dollar spent toward preventive maintenance is a dollar saved toward future repair costs and the cost of a new vehicle.Â Also look at it this way, when you have made the final payment to the Lender for your car (truck), that monthly payment will go a long way toward maintenance and preventive maintenance on the "paid off" car.Â Depending on the number of miles you drive each year determines how long youÂ should consider keeping your vehicle.Â I've found that trading in the old car when it has less than 100,000 miles will certainly get you more money on the trade, than when it passes that 100,000 mile mark.Part 9 of 13:Â Invest in an IRA
Â Whether you go with a traditional IRA or a Roth IRA, the tax savings can add up, either now, or in the future.Â Traditional IRAs allow federal income tax deductions of current contributions of up to $5,000 per each year or $6,000 if you are age 50 or older.Â Roth IRA contributions, made with after tax dollars at today's rates are not tax deductible, but contributions grow tax free and you won't have to pay taxes when you take qualified distributions from the account after age 59 1/2.Â Check specific requirements at www.irs.gov
Â and check with you tax advisor.Â IRAs are also a great place to place your employer's matching funds for retirement accounts without it affecting your annual income tax load.Part 10 of 13:Â Give Generously
Gifting assets to others can reduce the value of your estate and therfore, the amount of income tax you owe.Â Under current IRS rules you and your spouse can each give up to $13,000Â annually to a family member or friend for a total of $26,000 without paying a gift tax.Â Â There are lifetime gifting limits which in reducing your annual tax burden it also reduces the deductible allowable for when you pass on and leave your estate to your heirs.Â Talk to your CPA about how this works, too.Coming Soon:Â Insurer Discounts? Credit? Savings?