Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.
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DECEMBER 3-9, 2014 UCW 19 WWW.UPANDCOMINGWEEKLY.COM As 2014 draws to a close, you may want to look back on the progress you've made this past year in various areas of your life — and that certainly includes progress toward your financial goals. At the same time, you may want to make some end-of- year moves that can close out 2014 on a positive note while paving the way for a productive 2015. Here are a few such moves to consider: Boost your retirement plan contribu- tions. This actually isn't an "end-of-year" move because you have until April 15, 2015, to contribute to your Roth or Traditional IRA for the 2014 tax year. Nonetheless, the sooner you get extra dollars working for you in your IRA, the better. You can put in up to $5,500 to your IRA (or $6,500 if you're 50 or older) for 2014. If you are self-employed, or run a small business, you also have until April 15 to contribute to a retirement account, such as a SEP IRA or a SIMPLE plan. In addition to helping you build resources for retirement, these types of plans can offer you some tax advantages — so if you haven't established a retirement plan yet, consult with your financial and tax professionals Sell your "losers." If you own invest- ments that have lost value since you purchased them, you can sell them before 2014 ends and use the tax loss to offset some capital gains you may have earned in other investments. If you don't have any capital gains, you can use up to $3,000 of your tax losses to offset other ordinary income. And for a loss greater than $3,000, you can "carry over" the excess and deduct it from your taxes in future years. If you still liked the investment that you sold at a loss, and you want to keep it in your portfolio, you could repurchase it, but you'll have to wait 31 days to avoid violating the IRS' "wash sale" rules. Keep in mind that these suggestions only apply to investments held outside your employer- sponsored retirement account; you can't take a tax deduction on cap- ital losses in a 401(k) or similar plan. Evaluate your 401(k) investment mix. You may be able to adjust the investment mix in your 401(k) as often as you like. So when evaluating your 401(k), make sure your holdings aren't concentrated in just a few investments, and try to determine if your portfolio is still appropriate for your risk tolerance — not too aggressive or too conservative. Also, if your plan offers a "Roth" option, consider taking advantage of it — with a Roth, you won't be able to deduct your 401(k) contributions from your taxes, but once you retire, you won't be taxed on your withdrawals. Review your insurance coverage. If you've experienced any changes in your life in 2014 — new spouse, new child, divorce, new job, etc. — you may need to review your life insurance coverage to make sure that it's still sufficient for your needs and that you have the correct ben- eficiaries in place. By making these and other moves, you can say a fond farewell to 2014, know- ing that you've done what you could to help bolster your financial position — for 2015 and beyond. Edward Jones, its employees and financial advisors are not estate planners and cannot provide tax or legal advice. You should consult your estate-planning attorney or qualified tax advisor regard- ing your situation. Year-end Financial Checklists BY STEVE McDAVID STEVE McDAVID, Edward Jones Financial Advisor, Contributing Writer. COMMENTS? Editor@upandcomingweekly.com. 910.484.6200 Make some end-of-year moves that can close out 2014 on a posi- tive note while paving the way for a productive 2015. When the news broke that Rep. Tim Moore would be the Republican nominee for speaker of the North Carolina House and Rep. Mike Hager would be majority leader, the usual suspects did the usual things. Politicians seeking power, lobbyists seeking favors and reporters seeking access rushed to offer words of praise for Moore, Hager and the rest of the House GOP's new leadership team, including Marilyn Avila (deputy major- ity leader), John Bell (major- ity whip), Charles Jeter (con- ference chairman) and Pat Hurley (joint caucus leader). Speaker Pro Tem Skip Stam was nominated for a second term. On the Left, where doleful columnists and embittered academics now form North Carolina's Eeyore Caucus, Moore's post-nomination remarks prompted another round of kicking and braying as he resolutely defended the Republicans' fiscal and regulatory policies and voiced skepti- cism about Medicaid expansion. When I heard the news, however, what came to my mind was geography. Tim Moore hails from Cleveland County and Mike Hager from Rutherford County, both western communities that until recently hosted highly competitive legislative races. Similarly, John Bell's Wayne County in the east went from reliably Democratic a generation ago to competitive and, now, to Republican-leaning. Charles Jeter's district includes areas of northern and western Mecklenburg County that for generations cast their presidential and congressional votes for Republicans while preferring Democrats for state and local offices. The same could be said for parts of Marilyn Avila's district in Wake County. In most cases, the Democrats that used to represent these areas in Raleigh were, relatively speaking, moderates. They won election and reelection thanks in part to favorable districts maps but also because they figured out ways to appeal to voters who liked Ronald Reagan and Jesse Helms. During the 1990s and 2000s, however, the dynamics changed. State Republicans made a concerted effort to recruit stronger candidates, craft sharper messages, and run well-funded, professional campaigns. Meanwhile, North Carolina Democrats began to drift, both ethically and ideologi- cally. They failed to update their old-school policy ideas to fit the needs of a state economy that started lagging behind the rest of the Southeast rather than lead- ing it. After the 2010 election, when the GOP took over the General Assembly, the emerging Eeyore Caucus predicted gloom and doom as Republicans implemented tax cuts, regulatory relief and other conservative reforms. Since the enactment of that first conservative state budget in mid-2011, however, North Carolina has out- performed its competitors on most measures of eco- nomic growth. For example, North Carolina's payroll employment is up 6.8 percent since June 2011, higher than average growth in the Southeast (5 percent) and the nation as a whole (6 percent). The U-5 unemploy- ment measure, which includes not only the jobless actively looking for work but also those who have dropped out of the labor force, is down 4 percentage points in North Carolina since mid-2011, while both the regional and national averages have fallen 2.9 points. It's too early to draw final conclusions about the cause of these trends. But it's not too early to point out that, when it comes to North Carolina's economy, the Left has repeatedly forecast thunderstorms for what turned out to be sunny days. Nor has the predicted groundswell of public opposition materialized. Democrats came into the 2014 election cycle with low expectations — and failed even to meet those. Kay Hagan lost. Democrats netted just two seats in the General Assembly, the worst performance in modern times for an opposition party in a governor's first midterm. The GOP actually gained a seat on the Court of Appeals, winning a major- ity, while maintaining the 4-3 edge on the Supreme Court it had won in a previous election. There is no question that the newly ascendant Republicans have made some mistakes over the past four years. Still, the fact is that their party has never been stronger in North Carolina than it is right now. The rise of Tim Moore and Mike Hager illustrates the breadth of the GOP's gains. As for the Eeyore Caucus, you'll find them out among the thistles, chasing their missing tails. New Speaker Troubles Eeyore Caucus BY JOHN HOOD JOHN HOOD, President of the John Locke Foundation, Contributing Writer. COMMENTS? Editor@upandcomingweekly. com. 910.484.6200 Rep. Tim Moore happiness in a cup! 100% ORGANICIOUS coffee www.thecoffeecupus.com at millstone towne centre & opening this week in downtown fayetteville • next to the wine café Kiara Love Photography Happy Holidays from the Staff at Up & Coming Weekly