MidWestOne Bank CEO Charlie Funk says successful investing in the new year means understanding recently passed legislation and your tax liability.

In a recent blog post Funk encouraged readers to first understand their tax responsibilities with the new legislation and what discretionary income will be available for investing. 

"The first thing everyone should do is to understand how the recently passed federal legislation will affect their tax liability," Funk said. "Contrary to what you may have read, the chances are very good that you are receiving a reduction in your federal tax liability. Eighty percent of Americans will see their marginal tax rate go down in 2018 and less than five percent are projected to see an increase in their federal tax bill."

Funk says some ideas for any discretionary income include paying off any high debts, adding to your 401K contribution or baby boomers setting up a "college fund" for their grandchildren who are over ten years away from college. 

"I can remember my father investing a relatively small sum in stocks upon the birth of our three daughters and the returns by age 18 were significant and appreciated as we faced tuition bills. Think about that…." Funk wrote in his article. 

Funk sums up his financial advice by encouraging contributions to worthy projects. 

"Finally, find a project for which you have passion and contribute toward it," Funk stated in his piece. "To be a successful manager of your personal finances will take some time and effort. But, the pay-off is likely to be significant."