PocketCoinage

Remember, you can contribute to your Roth IRA for 2009 until April 15th!

I have yet to contribute anything for 2009.  Quite frankly, I’m upset that I did not put anything in at this point.  However, it’s been a big year for me: buying a house and paying off the car.

Over the past 2 years, I have contributed the maximum amount to the Roth IRA.  With the most recent economic crisis, that $10,000 turned into less than $5,000.  Within a few months time, I lost one year’s contribution.  I guess it could have been worse; I could have lost it all.  Since then, I traded in the Global Real Estate for Global Bonds and opened a Roth IRA Savings account with ING Direct.  Probably not the best choice to regain my money back.  The Global Bonds (IGBOX) are only up about 7% compared to 29% with Global Real Estate (IDGTX).

I think the recent events with the market and buying a house made me realize my true risk tolerance.  I do not like losing money – especially when I see what I put in and lost.  For some reason, I feel differently about my 403b.  I think it’s because it’s deducted bi-weekly and I don’t “see it” except on the quarterly statement.  I still have yet to compare all the statements to see what I have really lost.

However, it’s good to have a balance of funds.  I think I will keep my 403b on the aggressive side and make my Roth IRA fixed with savings, CDs, and bonds.  The market took a large hit in the past week and I do not think we are out of the water yet.  Remember, bonds are more attractive when the markets go south and are less attractive when the markets rise.

I should have a plan for my 2009 Roth IRA by the end of the month.

April 15th, 2010 is right around the corner.  I’m in the process of gathering everything I need to bring to my tax advisor at the end of the month.  This is the first year that I will be claiming my home and I’m looking forward to see what my return will be like.  I already made an amendment to my 2008 taxes and claimed the First-Time Homebuyer Credit.

As of right now, I am looking to write off the following:

House Related:

• Mortgage Insurance Premium
• Mortgage Interest
• Mortgage Points
• Real Estate Taxes
• Closing Costs

The 1098 form sent to you by your mortgage broker will have the insurance premium, interest, points, and real estate taxes.  According to Bank of America, “… you can typically deduct the real estate agent’s commission, attorney’s fees, surveys, title searches, and transfer taxes.”  I am hoping that this is the case.

Work Related:

• Home Phone
• Internet

Since I am an essential employee of the hospital, I am on-call every other week and need to be accessible.  The organization does not provide me with a phone or Internet.

Don’t forget, you can also write off:

• Auto Loan Interest (new vehicles only)
• Donations
• Education
• Medical Bills
• Student Loan Interest
• Union/Professional Dues

That’s just a handful of the items available for deduction.  Check with your tax advisor to see what you are able to qualify for.  Some items have a cap on what you are able to earn.  Once you reach that cap, you become ineligible to deduct that item.  I personally reached this cap with deducting student loan interest.

What are you looking to deduct this year?  Have I missed anything?