Be Smart With Your Money!!
By Susan Pinto Keen of PIGG, KRAHL, STERN & Co., P.A.

How many times have you thought to yourself, “I really need to start saving for the kids’ college”, “I really should be saving more for retirement” or “I could retire a lot earlier if I didn’t have that big mortgage payment.” Well, now is the time to do something about it and it’s not nearly as difficult as you might think.

There are a lot of minor changes you can make with your finances that can help make these goals a reality.

The relatively new Section 529 college savings plans are a great tool to get started saving for your child’s college costs. The earnings on these accounts are tax free upon distribution.

More tax-saving opportunities exist for retirement planning than in previous years. Roth IRAs grow tax free. Nondeductible contributions are allowed up to $3,000 in 2002 (up from $2,000 in 2001). The maximum contribution is phased out when adjusted gross income is above certain limits.

401(k) plans are still a great retirement, as well as tax, saving plan. The deferral limits have continued to increase for these plans.

Another great way to save taxes now is your company-sponsored cafeteria plan. (See Maggie April-May, 2002) Everyone should be participating in these plans. You can save significant tax dollars on your child care, health insurance premiums, and out-of-pocket medical costs.

Lastly, you may want to refinance or pay extra on your current mortgage. You can add a relatively small amount to your monthly payment and cut years off your mortgage. Another possibility is to get your mortgage set up on bi-weekly payments vs. monthly and this can cut years off your mortgage as well.
So, as you can see, a few minor changes can make a significant difference in your financial future. Please give me a call to discuss how you can “be smart with your money”.

MAGGIE’S MEMO:
Susan Pinto Keen is a Certified Public Accountant with PIGG, KRAHL, STERN & Co., P.A. She has 15 years of accounting, audit, tax and business consulting experience with the firm. She is a member of the Maryland Association of CPAs, the American Institute of CPAs, and the Medical Group Managers Association of the Eastern Shore of Maryland.

PIGG, KRAHL, STERN, & Co., P.A., with offices in Salisbury and Ocean City, offers a wide variety of services including accounting and auditing, tax, bookkeeping, retirement plan administration, business technology and computer consulting, business valuations, business management advice and personal financial planning. We go beyond the numbers. We are business people first, then accountants. We help businesses succeed. Let us help you.

MAGGIE SAYS:
Maggie spoke with clients of Susan Keen’s who praised her professionalism, her responsiveness, and her availability. They told us they are very happy with Susan and unhesitatingly recommend her. Call PIGG, KRAHL, STERN & CO. at 410-546-5600 and ask for Susan Keen.