Fourth Quarter Financial Planning Makes Dollars and Sense

With the substantial stock market fluctuations over the past two years, year-end tax management changes are more important today than ever before. To help ensure clients finish the year in the most optimal financial position possible, Allen Ostrofe, president of Ostrofe Financial Consultants, Inc. (OFC) provides five year-end tips to aid investors in managing current tax liabilities and reducing future tax expenses.

1) Fully fund your 401(k). For 2009, the maximum contribution to a 401(k) account is $16,500. If you have not maxed out your contributions this year and can afford to up the ante, increase your 401(k) or other retirement planning funding before the year ends. Contributions made to traditional IRAs and 401(k)s are made with pre-tax dollars and can substantially reduce year-end tax bills.

2) Make a traditional IRA or Roth IRA contribution. Investors have until April, 2010 to make up to a $5,000 contribution to an IRA, Roth IRA or combination of both. Investors over 50 years of age are allowed an additional $1,000 "catch-up" contribution in 2009.

3) Sell stocks to capture losses. Review your most recent portfolio statements to determine how well your investments fared in 2009. If securities are underperforming now is the time to harvest losses and reinvest in a different commodity. Selling low performing stocks before the year-end helps to capture capital losses and counterbalance long-term capital gains.

4) Make your home work for you. Homeowners can boost mortgage interest deductions in one simple step: make an extra mortgage payment in December. In addition, if your primary residence was made more energy-efficient in 2009, a tax credit of 30 percent (or a maximum of $1,500) is in order for qualified purchases. Items to consider include the purchase or installation of solar hot water heaters, geothermal heat pumps, wind turbines, or other qualifying alternative energy equipment that provide heating or cooling.

5) Meet with your financial planner. Although investment management is a year-round exercise, all investors are encouraged to take a closer look at personal portfolios prior to the end of 2009. Taking stock of how you have progressed towards financial goals and setting new goals for 2010 is an important investment strategy that will help build financial futures.

Professional financial advisors, including Ostrofe, encourage all investors to re-evaluate personal portfolios prior to 2010 to further enhance financial opportunities and gains for every dollar invested.

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About Ostrofe Financial Consultants, Inc.

Ostrofe Financial Consultants, Inc. (OFC) located in Grass Valley, CA, is a Registered Investment Advisory firm with the SEC providing comprehensive fee-based financial planning for individuals and businesses.

Today, with clients in 28 states, OFC is the largest and oldest SEC registered investment advisor in Nevada County. A leader in long-term diversified investment strategies, the firm specializes in life and goal planning, business planning, generational planning, and estate planning, including trusts and asset management.

OFC is deeply invested in the local community of Grass Valley and its environs, participating in several non-profit and educational organizations including Angel Tree Ministries, Boys and Girls Club of Auburn, Big Brothers and Sisters, Food Bank of Auburn, and many others.

About Allen Ostrofe, MBA, CFP^®

As president of Ostrofe Financial Consultants, Inc., Allen Ostrofe is responsible for heading an experienced team of professionals and providing recommendations concerning investments, retirement and estate planning techniques to clients.

A native San Franciscan, Allen has over 38 years of experience in the financial business, including executive and director positions handling multi-million dollar corporate budgets. He is a Certified Financial Planner^TM, has written over 100 investment articles for local and regional publications, is a past professor of financial planning at Sierra College, and is a frequent speaker on the subject of long term investing.

He is a past president of the Nevada County South Rotary and has served on the board of directors for the Nevada County Chamber of Commerce, Music in the Mountains, Nevada County Land Trust, and the Greater Grass Valley Development Corporation. In addition, he is a past member of the Knights of Columbus, The Friendship Club, and the Sierra Nevada Memorial Hospital Foundation.

Contact:
Ostrofe Financial Consultants, Inc.
565 Brunswick Road, Suite 15
Grass Valley CA, 95945
(530) 273-4425
www.ostrofefinancial.com