As an investor, you’ve pretty much seen it all in 2011 – slow-but-steady gains early in the year, a market correction during the debt ceiling debate, the U.S. credit downgrade and huge one-day up and down stock price movements. But despite the volatility of the past 11 months, you can make positive year-end investment moves, including:

• Boost your 401(k) contributions – You typically contribute pretax dollars, so the more you invest, the lower your taxable income. Plus, your earnings have the potential to grow on a tax-deferred basis.
• Consider converting to a Roth individual retirement account – You might benefit by converting a traditional IRA, which offers tax-deferred earnings, to a Roth IRA, whose earnings grow tax free, providing you don’t start taking withdrawals until you’re at least age 591⁄2 and you’ve held your account for five years. Remember, though, that you’ll need money to pay the taxes that would be due on such a conversion. Also, income limits apply to Roth IRA contributions. This is a complex decision that you should discuss with your tax professional.
• Set up automatic contributions for 2012 – It might be difficult to come up with a lump-sum payment to fully fund your IRA for the year. By directing your bank to transfer the same amount each month from your checking or savings account to your IRA, you’ll find it easier to “max out” your IRA.
• Contribute to a 529 plan – When you contribute to a 529 plan, your earnings have the potential to grow tax free, provided they are used for qualified higher education expenses. (However, 529 plan distributions not used for qualified expenses may be subject to income tax and a 10 percent penalty.)
• Re-evaluate your investment mix – Review your investment mix at least once a year to help ensure your portfolio is still aligned with your goals, risk tolerance and time horizon.
• Review your insurance coverage – If you’ve experienced any changes in your life in 2011 – marriage, having a child, divorce, new job and so on – you might need to review your life insurance coverage to make sure that it’s still sufficient for your needs.

To determine if any of these actions are right for your situation, consult your financial and tax advisers. By taking these and other steps, you can close 2011 on a positive note and get 2012 off to a good start.

This article was prepared by Edward Jones for use by Rocky Speight, an Edward Jones financial adviser in Rocky Mount.