Smart money moves with the new tax law

Financial professional Cathy DeWitt Dunn shares her advice on how to handle your money with the new tax law.

 

1. Check Your Withholding
    Now that you're likely in a different tax bracket, you'll want to make sure you are withholding the right amount out of your paycheck. A lot of people are withholding too much and getting a big refund each year. But that's your money the government is holding interest free year-round. The IRS released a calculator to help you determine your withholding. You can find it on womenmoneyandpower.com.

2. Increase Your Savings
    More than 90% of households will get a tax cut this year, and many of us likely noticed our paychecks increasing last month. Most people are expected to spend their extra income, but this is a great chance to bump up your retirement contributions.

3.Take Advantage of Low Interest Rates

       The Federal Reserve raised the key interest rate in March, and is expected to raise rates at least two more times this year.

4.Ask For a Raise
    If the tax overhaul creates the expected economic conditions, the rate could fall below 3.4% by the end of this year. That means a hot job market, which could be the prime time to ask for a raise!

5.Speak to a Professional
    This may be the most important step of all. Before you start making these financial moves, sit down and talk to your financial professional and a tax professional to see what's best for your situation.