Share Tweet Forward

January 2020

Welcome 2020 A new year calls for a fresh lookat your financial strategies Consider how to makethe most of your savings accounts mdash and dontforget you still have time to fund your IRA Youcan also try the following fail-proof tricks to keepyour New Years resolutions on track

Call if you would like to discuss how thisinformation relates to you If you know someonewho can benefit from this newsletter feel free tosend it to them

This month

January 15

- 4th Quarter Estimated

Payments Due

January 20

- Martin Luther King Jr Day

Start tax planning

for the new year

- Adjust withholdings

- Organize filing records

- Schedule tax consultation

- Rebalance investment

portfolio

Theres Still Time to Fund Your IRA

There is still time to make a contribution to a traditional IRA or Roth IRA for the 2019tax year The annual contribution limit is $6000 or $7000 if you are age 50 or overPrior to making a contribution if you (or your spouse) are an active participant in anemployers qualified retirement plan (a 401(k) for example) you will need to makesure your modified adjusted gross income (MAGI) does not exceed certainthresholds There are also income limits to qualify to make Roth IRA contributions

Maximum 2019 IRA Contribution amounts $6000 or $7000 (with age 50+ catch-up provision)2019 IRA Income (MAGI) Limits

Traditional IRAallowed contribution range

Roth IRAallowed contribution range

Filing StatusFullContribution

PhaseoutComplete

FullContribution

PhaseoutComplete

Single $64000 $74000 $122000 $137000

Married

$103000(both participating)$193000(nonparticipating spouse)

$123000(both participating)$203000(nonparticipating spouse)

$193000 $203000

Note Married traditional IRA limits depend on whether either you your spouse orboth of you participate in a qualified employer-provided retirement plan If marriedfiling separate and either spouse participates in an employers qualified plan theincome phaseout to contribute is $0-10000If your income is too high to take advantage of these IRAs you can always make anon-deductible contribution to an IRA While the contributions are not tax-deferredthe earnings are not taxed until they are withdrawn

2020 Retirement Plan LimitsAs part of your 2020 planning now is the time to review funding your retirementaccounts By establishing your contribution goals at the beginning of each year thefinancial impact of saving for your future should be more manageable Here areannual contribution limits

Retirement Plans 2019 2020 Change Age 50 or oldercatch up

IRA Traditional $6000 $6000 none add $1000IRA Roth $6000 $6000 none add $1000IRA SIMPLE $13000 $13500 +$500 add $3000401(k) 403(b) 457 plans $19000 $19500 +$500 add $6500

Take actionIf you have not already done so please consider

Reviewing and adjusting your periodic contributions to your retirement savingsaccounts to take full advantage of the tax advantaged limitsSetting up new accounts for a spouse or dependent(s)Using this time to review the status of your retirement planReviewing contributions to other tax-advantaged plans including flexiblespending accounts and health savings accounts

Its Time to PrioritizeInventory Management

Extraordinarily low interest rates and a rapidly evolvingbusiness climate has made inventory management a lost artOther business initiatives may seem to be more urgent andimpactful but in reality mastering inventory levels is a key tomost successful and growing businesses Here are reasonswhy prioritizing your inventory management is a must

Less shrink Shrinkage represents cash that goes towaste because inventory is damaged or past selldate It is a sign of a weakness in the inventorycontrol process Adding quality control practices thataccount for climate control and other factors can helpavoid damaging valuable stock and catch defectivepurchases before they make it into your warehouseTightening up your inventory controls equals lessstuff to throw away which means less money wasted

Make Your CashWorth More

Your cash is parked Do you knowif its making or losing youmoney For instance letting it sitin a non-interest-bearing accountis a waste of earnings potentialItrsquos actually losing money if youfactor in inflation Here are someideas to help you make the mostof your banked cash

Understand your bankaccounts Not all bank accountsare created equal Interest rates

Action Create a shrink scorecard Note all productthat is non-saleable and track units tossed theirdollar value and who supplied it Compare waste toprior year and against your goals More cash In a perfect world you receive yourinventory as soon as it is sold Material or productthat sits in the warehouse adds storage costs andrisks turning into unsaleable product Aligning yourinventory operation with your sales cycle playsdirectly with improving your cash flow Understandingsales trends will allow you to optimize your stocklevels and save money in the process When youspend less on unnecessary inventory costs you havemore cash to invest into marketing new productinitiatives or capital equipment that can bolster yourbottom lineAction Implement just in time (JIT) with keysuppliers Explore ways to deliver product when youneed it versus purchasing a larger amount and thenstoring it Improved forecasting The old saying garbage ingarbage out applies perfectly when trying to forecastinventory demand If you canrsquot trust your inventoryprocess itrsquos impossible to accurately predict futureoutput This leaves you flying blind when budgetingand preparing for future expenditures With a firmgrip on your inventory needs and procurement-to-sales cycle your forecasting will become moreaccurateAction Create a rolling 12-month forecast of salesThe forecast should provide details on major productlines Translate this forecast into lead times for yourinventory procurement Better customer relations Once yoursquove optimizedyour operation the quality of your customersexperience increases exponentially You can cutprices without sacrificing margin improve lead timesand add new product lines with your extra cashWhile the effective inventory process you built ishumming along you can focus your attention onimproving your products to better match the needs ofyour target market This will help boost your salesAction Set inventory targets to shorten lead timesMeasure how many back orders you have and notehow often products are returned as defective If yourinventory management is improving you should seepositive results in both areas

Inventory management will not take care of itself Giving yourinventory system the attention it deserves will pay majordividends both now and in the future

monthly fees minimum balancesdirect deposit requirementsaccess to ATMs other fees andcustomer service all vary frombank to bank and need to beconsidered Start by digging intothe details of your accounts Theremay be some things yoursquove beenunnecessarily living with like ATMfees or monthly account chargesOnce you have a handle on yourcurrent bank conduct research onwhat other banks have to offer

Know your interest rates As ageneral rule the more liquid anaccount the lower the interestrate Checking accounts offer thelowest rates then savingsaccounts which yield lower ratesthan CDs Maximizing yourearnings is as simple as keepingyour cash in accounts with higherinterest rates The overall interestrate earned between all youraccounts should be higher thanthe inflation rate which isgenerally around 2 percent

Make smart moves There are acouple of things to take intoaccount when making transfersFirst federal law allows for onlysix transfers from savings andmoney market accounts permonth Second if you invest inlonger term investments like CDsor bonds there are penalties forwithdrawing funds before thematurity date So make sure youcan live without the funds for theduration of the term

Stay diligent Putting together acash plan is just the start The keyto success is to be persistentBesides losing out on potentialearnings mismanaging your cashcan result in hefty overdraft feesThe more attention you devote themore your money will grow

EXCITING COUTO DEFRANCO NEWS

Six consecutive years Nelson Couto and Anthony DeFranco have beenchosen as FIVE STAR Wealth Managers for the sixth consecutive year

Nelson Couto CPA CFPreg and Anthony DeFranco CPA CFPreg MS (Taxation) of Couto DeFranco PA

have been named as 2019 Five Star Wealth Managers and will be featured in the Wall Street Journal

February 27th issue Out of the 6097 wealth managers in New Jersey who were seriously considered for

the award 477 were named This is their sixth time winning this prestigious award Nelson and Anthony

were previous recipients of the award beginning in 2013

We are thrilled to be chosen as a Five Star Wealth Manager by New Jersey Monthly and extremely

proud that the work we have done for our clients has been recognizedrdquo says Anthony DeFranco

Couto and DeFranco are regarded as leaders in the field of wealth management They combine their

knowledge of financial services with over 25 years as CPAs helping their clients with their wealth

management and tax planning needs along with assisting them with their financial goals and aspirations

They believe the best way to help clients reach their financial goals is simple to listen ldquoIt is important to

listen to where they are today and where they want to be tomorrowrdquo says Nelson Couto The partners feel

that clients are paying them for their knowledgemdashboth as NJ Certified Public Accountants and as Certified

Financial Plannertrade professionalsmdashso it is their responsibility to develop a financial strategy that is sound

objective and honest This model has been their secret to success

Nelson Couto and Anthony DeFranco established the NJ CPA firm of Couto DeFranco PA in 1992 and

are located in West Orange NJ The firm serves individuals businesses estates and trusts For more

information on their full suite of accounting wealth management tax preparation and planning services

please call 973-325-3370 or visit the companyrsquos website at httpwwwaccountants-njcom

Copyright copy 2018 Couto DeFranco PA All rights reserved

Retirement Plans 2019 2020 Change Age 50 or oldercatch up

IRA Traditional $6000 $6000 none add $1000IRA Roth $6000 $6000 none add $1000IRA SIMPLE $13000 $13500 +$500 add $3000401(k) 403(b) 457 plans $19000 $19500 +$500 add $6500

Take actionIf you have not already done so please consider

Reviewing and adjusting your periodic contributions to your retirement savingsaccounts to take full advantage of the tax advantaged limitsSetting up new accounts for a spouse or dependent(s)Using this time to review the status of your retirement planReviewing contributions to other tax-advantaged plans including flexiblespending accounts and health savings accounts

Its Time to PrioritizeInventory Management

Extraordinarily low interest rates and a rapidly evolvingbusiness climate has made inventory management a lost artOther business initiatives may seem to be more urgent andimpactful but in reality mastering inventory levels is a key tomost successful and growing businesses Here are reasonswhy prioritizing your inventory management is a must

Less shrink Shrinkage represents cash that goes towaste because inventory is damaged or past selldate It is a sign of a weakness in the inventorycontrol process Adding quality control practices thataccount for climate control and other factors can helpavoid damaging valuable stock and catch defectivepurchases before they make it into your warehouseTightening up your inventory controls equals lessstuff to throw away which means less money wasted

Make Your CashWorth More

Your cash is parked Do you knowif its making or losing youmoney For instance letting it sitin a non-interest-bearing accountis a waste of earnings potentialItrsquos actually losing money if youfactor in inflation Here are someideas to help you make the mostof your banked cash

Understand your bankaccounts Not all bank accountsare created equal Interest rates

Action Create a shrink scorecard Note all productthat is non-saleable and track units tossed theirdollar value and who supplied it Compare waste toprior year and against your goals More cash In a perfect world you receive yourinventory as soon as it is sold Material or productthat sits in the warehouse adds storage costs andrisks turning into unsaleable product Aligning yourinventory operation with your sales cycle playsdirectly with improving your cash flow Understandingsales trends will allow you to optimize your stocklevels and save money in the process When youspend less on unnecessary inventory costs you havemore cash to invest into marketing new productinitiatives or capital equipment that can bolster yourbottom lineAction Implement just in time (JIT) with keysuppliers Explore ways to deliver product when youneed it versus purchasing a larger amount and thenstoring it Improved forecasting The old saying garbage ingarbage out applies perfectly when trying to forecastinventory demand If you canrsquot trust your inventoryprocess itrsquos impossible to accurately predict futureoutput This leaves you flying blind when budgetingand preparing for future expenditures With a firmgrip on your inventory needs and procurement-to-sales cycle your forecasting will become moreaccurateAction Create a rolling 12-month forecast of salesThe forecast should provide details on major productlines Translate this forecast into lead times for yourinventory procurement Better customer relations Once yoursquove optimizedyour operation the quality of your customersexperience increases exponentially You can cutprices without sacrificing margin improve lead timesand add new product lines with your extra cashWhile the effective inventory process you built ishumming along you can focus your attention onimproving your products to better match the needs ofyour target market This will help boost your salesAction Set inventory targets to shorten lead timesMeasure how many back orders you have and notehow often products are returned as defective If yourinventory management is improving you should seepositive results in both areas

Inventory management will not take care of itself Giving yourinventory system the attention it deserves will pay majordividends both now and in the future

monthly fees minimum balancesdirect deposit requirementsaccess to ATMs other fees andcustomer service all vary frombank to bank and need to beconsidered Start by digging intothe details of your accounts Theremay be some things yoursquove beenunnecessarily living with like ATMfees or monthly account chargesOnce you have a handle on yourcurrent bank conduct research onwhat other banks have to offer

Know your interest rates As ageneral rule the more liquid anaccount the lower the interestrate Checking accounts offer thelowest rates then savingsaccounts which yield lower ratesthan CDs Maximizing yourearnings is as simple as keepingyour cash in accounts with higherinterest rates The overall interestrate earned between all youraccounts should be higher thanthe inflation rate which isgenerally around 2 percent

Make smart moves There are acouple of things to take intoaccount when making transfersFirst federal law allows for onlysix transfers from savings andmoney market accounts permonth Second if you invest inlonger term investments like CDsor bonds there are penalties forwithdrawing funds before thematurity date So make sure youcan live without the funds for theduration of the term

Stay diligent Putting together acash plan is just the start The keyto success is to be persistentBesides losing out on potentialearnings mismanaging your cashcan result in hefty overdraft feesThe more attention you devote themore your money will grow

EXCITING COUTO DEFRANCO NEWS

Six consecutive years Nelson Couto and Anthony DeFranco have beenchosen as FIVE STAR Wealth Managers for the sixth consecutive year

Nelson Couto CPA CFPreg and Anthony DeFranco CPA CFPreg MS (Taxation) of Couto DeFranco PA

have been named as 2019 Five Star Wealth Managers and will be featured in the Wall Street Journal

February 27th issue Out of the 6097 wealth managers in New Jersey who were seriously considered for

the award 477 were named This is their sixth time winning this prestigious award Nelson and Anthony

were previous recipients of the award beginning in 2013

We are thrilled to be chosen as a Five Star Wealth Manager by New Jersey Monthly and extremely

proud that the work we have done for our clients has been recognizedrdquo says Anthony DeFranco

Couto and DeFranco are regarded as leaders in the field of wealth management They combine their

knowledge of financial services with over 25 years as CPAs helping their clients with their wealth

management and tax planning needs along with assisting them with their financial goals and aspirations

They believe the best way to help clients reach their financial goals is simple to listen ldquoIt is important to

listen to where they are today and where they want to be tomorrowrdquo says Nelson Couto The partners feel

that clients are paying them for their knowledgemdashboth as NJ Certified Public Accountants and as Certified

Financial Plannertrade professionalsmdashso it is their responsibility to develop a financial strategy that is sound

objective and honest This model has been their secret to success

Nelson Couto and Anthony DeFranco established the NJ CPA firm of Couto DeFranco PA in 1992 and

are located in West Orange NJ The firm serves individuals businesses estates and trusts For more

information on their full suite of accounting wealth management tax preparation and planning services

please call 973-325-3370 or visit the companyrsquos website at httpwwwaccountants-njcom

Copyright copy 2018 Couto DeFranco PA All rights reserved

Action Create a shrink scorecard Note all productthat is non-saleable and track units tossed theirdollar value and who supplied it Compare waste toprior year and against your goals More cash In a perfect world you receive yourinventory as soon as it is sold Material or productthat sits in the warehouse adds storage costs andrisks turning into unsaleable product Aligning yourinventory operation with your sales cycle playsdirectly with improving your cash flow Understandingsales trends will allow you to optimize your stocklevels and save money in the process When youspend less on unnecessary inventory costs you havemore cash to invest into marketing new productinitiatives or capital equipment that can bolster yourbottom lineAction Implement just in time (JIT) with keysuppliers Explore ways to deliver product when youneed it versus purchasing a larger amount and thenstoring it Improved forecasting The old saying garbage ingarbage out applies perfectly when trying to forecastinventory demand If you canrsquot trust your inventoryprocess itrsquos impossible to accurately predict futureoutput This leaves you flying blind when budgetingand preparing for future expenditures With a firmgrip on your inventory needs and procurement-to-sales cycle your forecasting will become moreaccurateAction Create a rolling 12-month forecast of salesThe forecast should provide details on major productlines Translate this forecast into lead times for yourinventory procurement Better customer relations Once yoursquove optimizedyour operation the quality of your customersexperience increases exponentially You can cutprices without sacrificing margin improve lead timesand add new product lines with your extra cashWhile the effective inventory process you built ishumming along you can focus your attention onimproving your products to better match the needs ofyour target market This will help boost your salesAction Set inventory targets to shorten lead timesMeasure how many back orders you have and notehow often products are returned as defective If yourinventory management is improving you should seepositive results in both areas

Inventory management will not take care of itself Giving yourinventory system the attention it deserves will pay majordividends both now and in the future

monthly fees minimum balancesdirect deposit requirementsaccess to ATMs other fees andcustomer service all vary frombank to bank and need to beconsidered Start by digging intothe details of your accounts Theremay be some things yoursquove beenunnecessarily living with like ATMfees or monthly account chargesOnce you have a handle on yourcurrent bank conduct research onwhat other banks have to offer

Know your interest rates As ageneral rule the more liquid anaccount the lower the interestrate Checking accounts offer thelowest rates then savingsaccounts which yield lower ratesthan CDs Maximizing yourearnings is as simple as keepingyour cash in accounts with higherinterest rates The overall interestrate earned between all youraccounts should be higher thanthe inflation rate which isgenerally around 2 percent

Make smart moves There are acouple of things to take intoaccount when making transfersFirst federal law allows for onlysix transfers from savings andmoney market accounts permonth Second if you invest inlonger term investments like CDsor bonds there are penalties forwithdrawing funds before thematurity date So make sure youcan live without the funds for theduration of the term

Stay diligent Putting together acash plan is just the start The keyto success is to be persistentBesides losing out on potentialearnings mismanaging your cashcan result in hefty overdraft feesThe more attention you devote themore your money will grow

EXCITING COUTO DEFRANCO NEWS

Six consecutive years Nelson Couto and Anthony DeFranco have beenchosen as FIVE STAR Wealth Managers for the sixth consecutive year

Nelson Couto CPA CFPreg and Anthony DeFranco CPA CFPreg MS (Taxation) of Couto DeFranco PA

have been named as 2019 Five Star Wealth Managers and will be featured in the Wall Street Journal

February 27th issue Out of the 6097 wealth managers in New Jersey who were seriously considered for

the award 477 were named This is their sixth time winning this prestigious award Nelson and Anthony

were previous recipients of the award beginning in 2013

We are thrilled to be chosen as a Five Star Wealth Manager by New Jersey Monthly and extremely

proud that the work we have done for our clients has been recognizedrdquo says Anthony DeFranco

Couto and DeFranco are regarded as leaders in the field of wealth management They combine their

knowledge of financial services with over 25 years as CPAs helping their clients with their wealth

management and tax planning needs along with assisting them with their financial goals and aspirations

They believe the best way to help clients reach their financial goals is simple to listen ldquoIt is important to

listen to where they are today and where they want to be tomorrowrdquo says Nelson Couto The partners feel

that clients are paying them for their knowledgemdashboth as NJ Certified Public Accountants and as Certified

Financial Plannertrade professionalsmdashso it is their responsibility to develop a financial strategy that is sound

objective and honest This model has been their secret to success

Nelson Couto and Anthony DeFranco established the NJ CPA firm of Couto DeFranco PA in 1992 and

are located in West Orange NJ The firm serves individuals businesses estates and trusts For more

information on their full suite of accounting wealth management tax preparation and planning services

please call 973-325-3370 or visit the companyrsquos website at httpwwwaccountants-njcom

Copyright copy 2018 Couto DeFranco PA All rights reserved

Stay diligent Putting together acash plan is just the start The keyto success is to be persistentBesides losing out on potentialearnings mismanaging your cashcan result in hefty overdraft feesThe more attention you devote themore your money will grow

EXCITING COUTO DEFRANCO NEWS

Six consecutive years Nelson Couto and Anthony DeFranco have beenchosen as FIVE STAR Wealth Managers for the sixth consecutive year

Nelson Couto CPA CFPreg and Anthony DeFranco CPA CFPreg MS (Taxation) of Couto DeFranco PA

have been named as 2019 Five Star Wealth Managers and will be featured in the Wall Street Journal

February 27th issue Out of the 6097 wealth managers in New Jersey who were seriously considered for

the award 477 were named This is their sixth time winning this prestigious award Nelson and Anthony

were previous recipients of the award beginning in 2013

We are thrilled to be chosen as a Five Star Wealth Manager by New Jersey Monthly and extremely

proud that the work we have done for our clients has been recognizedrdquo says Anthony DeFranco

Couto and DeFranco are regarded as leaders in the field of wealth management They combine their

knowledge of financial services with over 25 years as CPAs helping their clients with their wealth

management and tax planning needs along with assisting them with their financial goals and aspirations

They believe the best way to help clients reach their financial goals is simple to listen ldquoIt is important to

listen to where they are today and where they want to be tomorrowrdquo says Nelson Couto The partners feel

that clients are paying them for their knowledgemdashboth as NJ Certified Public Accountants and as Certified

Financial Plannertrade professionalsmdashso it is their responsibility to develop a financial strategy that is sound

objective and honest This model has been their secret to success

Nelson Couto and Anthony DeFranco established the NJ CPA firm of Couto DeFranco PA in 1992 and

are located in West Orange NJ The firm serves individuals businesses estates and trusts For more

information on their full suite of accounting wealth management tax preparation and planning services

please call 973-325-3370 or visit the companyrsquos website at httpwwwaccountants-njcom

Copyright copy 2018 Couto DeFranco PA All rights reserved

management and tax planning needs along with assisting them with their financial goals and aspirations

They believe the best way to help clients reach their financial goals is simple to listen ldquoIt is important to

listen to where they are today and where they want to be tomorrowrdquo says Nelson Couto The partners feel

that clients are paying them for their knowledgemdashboth as NJ Certified Public Accountants and as Certified

Financial Plannertrade professionalsmdashso it is their responsibility to develop a financial strategy that is sound

objective and honest This model has been their secret to success

Nelson Couto and Anthony DeFranco established the NJ CPA firm of Couto DeFranco PA in 1992 and

are located in West Orange NJ The firm serves individuals businesses estates and trusts For more

information on their full suite of accounting wealth management tax preparation and planning services

please call 973-325-3370 or visit the companyrsquos website at httpwwwaccountants-njcom

Copyright copy 2018 Couto DeFranco PA All rights reserved