The best money moves for the best living systems

 Could there be a more perplexing time for investors than 2023 and Next ? On the one hand, everyone is talking about the impending recession, but will there be one? On the other hand, the debate is also about the inflation monster, which has had a significant impact on all of our wallets.

Is there evidence that the monster is finally being tamed, or is this just a mirage? In either case, what is the best way to plan for future spending and investing? For example,  AARP asked certified financial planners for advice on what older investors should think about in the coming year. 

Here are their top ten recommendations for the best living systems.
The best money moves for the best living systems
The best money moves for the best living systems

#01. Put your (partially) head in the sand!

Yes, the market can be frightening at times, but don't let news stories about the volatile economy deter you from continuing to save and invest. 

When the stock market is crashing and the news is screaming that the sky is falling, Edwards advises you to stop listening and focus on what you can control: your behavior. Instead of listening to short-term fear, she suggests listening to the calm of your long-term financial plan. 

A lot of financial failures come from reacting to the market instead of sticking to your plan. If you don't have a financial plan, she recommends creating one in 2023.

#02. Create a high-yielding savings account.

Your money is losing value due to inflation. Many investors are concerned about losing money in the stock market, but they overlook the possibility of losing purchasing power due to inflation. Inflation is a serious issue for those who want to ensure that their savings will last the rest of their lives. 

According to Katherine Edwards, a certified financial planner in Los Gatos, California, interest rates for high-yield savings accounts have recently risen, and there are many great options and rates available, some as high as 3%. 

She recommends high-yield savings accounts for storing excess cash so that you can be confident that your money is fighting inflation.

#03. Increase the size of your retirement plan contribution.

According to Rachel Elson, a certified financial planner in San Francisco, California, if you are still working and have the cash flow, 2023 could be a fantastic time to max out your tax deferrals. With catch-up contributions, workers age 50 and up will be able to contribute $30,000 to workplace retirement plans such as a 401(k) or 403(b) (b).

She advises that you have a sufficient income to allow for this type of saving because you could be tying up those dollars for several years. However, if you're in your peak earning years - and especially if you live in a high-tax state - the tax savings from maximizing your deferrals can be significant.

#04. Double-check charitable contributions

According to Mitchell Kraus, a certified financial planner in Santa Monica, California, the most obvious place for tax deductions - charitable contributions - is also the place where many people fail to get their full deductions. 

When Kraus reviewed his client's tax returns, he discovered that the majority of them were not receiving the full charitable deduction because they either took the standard deduction or gave it from the wrong pool of money.

According to him, more than 80% of Americans take the standard deduction. There are alternatives. People over the age of 7012 can contribute up to $100,000 from their IRA. (The contribution will not be considered income.) Also, he points out that while donating appreciated assets such as stocks may not result in an additional deduction, it can save you from paying capital gains taxes if you simply sold the asset.

#05. Make a credit line.

According to Bruce Colin, a certified financial planner in Rancho Palos Verdes, California, having a line of credit is always a good idea, especially during times of economic uncertainty. 

It should ideally be used only in the event of a job loss or to cover an unexpected expense that would otherwise necessitate the sale of an asset at a loss.

We are frequently advised to keep enough cash on hand to cover unexpected expenses. While this is still a fundamental financial planning principle, not everyone can set aside that much money for such a purpose, so having access to a credit line can help provide a short-term safety net. 

However, a credit line should never be used to fund a lifestyle that would otherwise be unattainable. According to him, the best credit line is one that is readily available if needed but rarely, if ever, used.

#06. Perform a Roth conversion

With IRA and 401(k) balances depleted as a result of market declines, 2023 will be a good year for Roth conversions, according to Rob Greenman, a certified financial planner in Portland, Oregon. 

This is especially advantageous for people who have not yet begun receiving Social Security and are not subject to required minimum distributions. 

You will have to pay income taxes on the amount converted, but from a long-term perspective, the benefits of a Roth conversion in 2023 tip the scales in your favor, he says.

Judson Meinhart advises clients aged 50 to 70, particularly those who are retired, to consider Roth conversions. 

According to a certified financial planner in Winston-Salem, North Carolina, those with significant assets in IRAs and 401(k)s will likely feel the tax impact when required minimum distributions begin. 

Because most asset prices have fallen by 2022, he says, now is the time to convert to a Roth IRA and take advantage of a potential rebound inside a tax-free account.

#07. Make a retirement plan for business owners.

According to the Service Corps of Retired Executives, more than 54 percent of America's small business owners are over the age of 50. 

Those who are self-employed can still have access to a retirement plan although many don't realize it, says Marguerita M. Cheng, a certified financial planner in Gaithersburg, Maryland. 

They will benefit from additional retirement savings and tax savings, either now or in the future. Simple IRA, SEP IRA, and 401(k) plans are available to those who have employees (k).

#08. Examine your lifestyle creep.

When you were just starting a family, you might have tried to save money by purchasing store brands at the grocery store and regularly using coupons. 

You may have upgraded to the more expensive name brands and even abandoned the coupons along the way. According to Grant, 2023 could be the year to get back to basics. 

Consider gathering your friends to take advantage of bulk purchasing at Sam's Club and Costco. Many items are cheaper in bulk, but you have to have the plan to make sure it all gets used. Make a list of items that you and your friends use, buy them in bulk, and then divide them up.

#09. Examine your subscriptions

According to Jen Grant, a certified financial planner in Dallas, Texas, many people (particularly the elderly) accumulate subscriptions that they do not use. 

This is particularly true of streaming services that have gained popularity among all age groups, including Netflix, Hulu, HBO Max, Paramount, Peacock, and Disney+. Spend some time determining what you watch and where you watch it. You may find that you can consolidate your streaming onto just one or two platforms, she says.

It's also a good idea to go over things like smartphone service and Amazon Prime accounts. Many services provide free access to additional services. T-Mobile, for example, she claims, provides free Netflix access, and Amazon Prime members receive free GrubHub access.

#10. Invest in the United States. Treasury notes

Few investments provide the safety and security that the United States does. Treasury bills, says Jordan Benold, a certified financial planner in Frisco, Texas. These are US securities that have a maturity date of one year or less. According to Jordan, a two- to six-month treasury bill currently pays more than 4%.

Treasury bills have a number of advantages. Because they mature so quickly, the investor does not have to tie up money for an extended period of time. 

In addition, as the Fed raises interest rates to combat inflation, the principal can earn more money. Benold believes that investing in Treasury bills is a good idea because they will continue to pay more if interest rates rise further.

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Mira Sandra
Mira Sandra I am Mira Sandra. A blogger, YouTuber, trader, and owner of the blog Starting to know online business since 2014 and continue to learn about internet business until now. Currently active as a trader and content writer at

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