Cell: 415 308-0678
Fax: 415 704-3238


Lee@RileyAccounting.net


1001 Bridgeway, #229
Sausalito, CA 94965


Conference room locations;


San Francisco
Directions   Map


Sausalito
Directions   Map


San Mateo  
Directions   Map


Larkspur   
Directions   Map


Walnut Creek    
Directions   Map
Robert Lee Riley CPA, MBA-tax
Riley
Accounting
FINANCIAL PLANNING

Tax return preparation is combined with financial planning for an annual
comprehensive flat fee.

There is a special emphasis on taking the time to educate  our clients.

Free initial consultation. $20 seminars, on
1) Real Estate Investment and Tax Issues,
2) How to Maintain Tax Records for Your Small Business, or Real Estate
Ventures.

Low cost set up of LLC's, and S-Corps.

I do a financial needs analysis, and, use a team approach to Financial
Planning. The logic being is that I am not trying to sell you something, so,
advice that you receive from me is objective.

I am focused on objectively  helping you achieve your goals. This involves
the following people.

1) the CPA, me,
2) an Estate Planning attorney,
3) a Financial Planner, stockbroker, etc.
4) a life insurance specialist,
5) a general insurance specialist,
6) a banker,
7) a mortgage broker,
8) an attorney.
9) a real estate agent.

Each financial planning situation is different, please contact me about your
specific situation.

I look at the following;

Investments
. Helping the client develop a low cost, tax-efficient, broadly
diversified portfolio that meets the clients need and willingness to take risk.
I've seen good advisers help their clients stay the course and stick to a long-
term investment policy rather than reacting in a follow-the-herd manner.

Risk management. Part of managing wealth is protecting that wealth. A
good planner can take a look at the insurance you need and make sure you
are getting it in a cost-effective manner. I'm not talking about selling
insurance investments, also known as "permanent insurance," I'm talking
about pure, transparent insurance.

Estate planning. Making sure the client can pass on their wealth is another
critical aspect of financial planning. Most advisers, like me, aren't lawyers
but we can work with attorneys to make sure this aspect of their plan is in
place.

Taxes. Taxes are costs too and they can take from our nest egg. To the
extent that we can help our clients maximize their after-tax dollars, we
provide value to our clients.

Retirement planning. We can then take all of the above and let the client
know what they need to do to meet what is usually the number one financial
goal - having enough money for retirement. In this capacity, good planners
just give the facts without value judgments. We take the client's cash flows
and model projected results, and tell him or her what needs to change in
order to reach retirement goals.

Financial Planning Calculators

FINANCIAL PLANNING CHECKLIST

 Start by reviewing estate assets and debts

 Decide where you want assets to go

 Start work with financial planner and attorney

 Draft or update will

 Choose qualified executor for will

 Choose guardians for children

 Secure a durable power of attorney

 Draft a living will

 Obtain medical power of attorney

 Consider creating one or more trusts

 Review ownership of assets

 Review insurance for protection of estate assets

 Consider annual gifting

 Consider paying heirs’ tuition or medical bills

 Determine whether to sell or pass on family business

 Plan for succession of business

 Discuss estate plan with heirs, and revise if appropriate

 Write letter of instruction

 Keep organized financial records

 Review estate plan periodically

 Coordinate estate plan with qualified estate planning attorney and financial
planner

Some suggested items to keep at home in a secure file drawer or box:
Insurance policies
Copies of wills and trusts
Copies of Living Wills
Copies of Powers of Attorney
Income tax returns
Property tax records

Some suggested items to keep in your bank vault box:
Deeds
Marriage certificates
Divorce decrees
Detailed inventory of valuable personal property, appraisals and photos if
possible
Birth certificates, death certificates
Car titles
Military discharge documents
Stock certificates etc.
Original wills, trust documents, powers of attorney
Any other important legal documents, life insurance policies, citizenship
papers

Some suggested items to give to your executor, attorney or spouse:
Copies of wills
Copies of trust documents
Living wills and powers of attorney
Inventory of insurance policies, bank accounts, stocks and bonds
Funeral instructions
List of key contacts (lawyer, accountant, insurance agent, banker etc.)
Bank vault access information

Twenties

The two most important financial tasks in your twenties are to get started in
a career and to start saving something. The biggest mistake people make is
to put off saving,

Save, save, save, even if it's only $25 a month to start. Put it in a tax-deferred
retirement plan to get the most bang for your buck.

* Establish credit in your own name.
* Pay off student loans and other debts. With the average credit card carrying
an interest rate of 18 percent, paying off debt is your best investment.
* Set up an emergency fund.

Thirties

Think about whether you're living where you want to, what you want to do and
how you will accumulate the money to accomplish it. Your 30s are the time
to throw your dream net wide as you build a strong foundation: find a partner;
start a family; build on your career; buy a home; and, continue to put money
aside.

Write down your goals and review them each year.

* Set up relationships with the financial professionals that you will need, like
an accountant, a lawyer, a financial planner, a real estate agent.
* Get a handle on your cash flow. Figure out what you're spending and
where you might be able to cut back.
* Purchase a home.
* Buy renter's or home owner's insurance.
* Buy disability coverage to replace your income (if not a part of your benefits
package provided by your employer). Get a policy that is renewable to age 65.
* Make certain you have good health coverage in place. Check into employer-
provided flexible spending accounts; this is where you pay for health care
(not covered by insurance) and dependent care expenses with pre-tax
dollars.
* Organize a file box and set up a record-keeping system.
* Contribute to a 403 (b) or other tax-deferred retirement plan.
* Invest your retirement contributions in stocks. A stock index fund or a fund
that invests in large company U.S. stocks is an ideal starting place.
* Contact the Social Security office at 800-772-1213 and ask for Form SSA-
7004, the Request for Earnings and Estimated Benefits. It is important to
check your earnings every three years. The Social Security Administration
will not correct a mistake older than three years.
* Draw up a will and, if you have children, name a guardian. Set up a health
care proxy and name someone to make health decisions for you if you
become incapacitated.

Forties

Build on your foundation. "When you turn 40, you begin to focus on what is
really important to you," Meyers says. Sometimes, that makes the 40s a time
of recreating or of starting fresh. Rethink your goals and focus on what you
will do to accomplish them.

* Set up a home equity credit line for emergencies. The rates are lower than
credit cards and the interest is tax deductible.
* Plan a special vacation and start setting money aside for it.
* Review your record keeping system. Be certain to keep good records on
investment assets-like stocks or mutual funds-to show what you paid for
them. The same is true for your house. You should keep the purchase
contract and any improvements that you have paid for. You must establish
your cost in these assets for the purpose of figuring capital gains tax later
when you sell.
* Add to your investment portfolio. You should have a fund that invests in
small companies here in the U.S. and another fund that invests in foreign
stocks.
* Think about what you will have-and what you will need-in retirement and
about the age you want to retire.
* Think about how marital assets are titled.

Fifties

When you are in your 50s, you see the end more closely. Yet you still have
plenty of time to implement your dreams. Fifty is not too late. A lot of people
give up when they're in their 50s. But you still may have 30 years or more to
realize your dreams. This can be one of the most satisfying times of your life.
Think now about building a legacy in some way-through your children or a
business or a charity. Write down what your life is about and what you want
next.
This should be a time to cash in on some of the investments you've made,
both financial and psychological. For many people it can mean a time of new
beginnings-but this time with the confidence that comes from experience
and wisdom.
* Think about a second home or retirement home. If you will retire in the
home you now have, consider paying off the mortgage. Eliminating debt can
free you up in retirement.
* As income goes up and expenses go down, divert extra cash into savings.
* Look into long-term care insurance. Before age 55, the risk is very small. A
1996 law made the premiums you pay on long-term care insurance tax
deductible.
* Look at the rules to qualify for the exclusion on capital gains tax for the sale
of a personal residence. You must live in the house for two of the five years
before you sell.
* Consider tax-free investments like municipal bonds if you are in the 30
percent tax bracket or higher.
* Keep the bulk of your portfolio in stocks. Add specialty investments like
natural resources, real estate or other inflation hedges.

Sixties

* Cement your plans for retirement. Think about what you will do and how
you will pay for it.
* Keep some of your retirement money in stocks. You are likely to live many
years in retirement. You need the growth to keep pace with inflation.
* Check with the Social Security office for benefits estimates.
* Start now to work on projections for retirement income.
* Find out how much you can expect in pension income, if any.
* Get benefits statements from your employer.
* Update wills, trusts and complete estate plans.
* Look at the options for withdrawing money from retirement accounts.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

OTHER ISSUES

1. Diagnose Your Spending Habits

___ Using a spreadsheet and your bank account and credit card
statements, record and analyze your expenses from the last three to six
months. This is time-consuming but not difficult. You need to find out where
your money goes before you can improve your financial health.

___ Keep receipts for all cash purchases. Put them in a jar and calculate the
total at the end of the month.

___ Find out how much you could add to your retirement by curbing
expenses today.

___ Establish a budget and a means of tracking it.

2. Regulate Your Retirement

___ Make sure you're saving enough to meet your retirement goals.

___ Make any "catch-up" contributions to your 401(k) before December 31.
The deadline for year 2000 contributions to IRAs is not until April 16, 2001,
but the sooner you invest, the better.

___ Find out which type of IRA, Regular or Roth IRA, is best for you.

3. Inspect Your Insurance

___ Determining whether you have enough life insurance to take care of
your family.

___ Find out if your employer provides disability insurance, and then analyze
whether it's enough.

___ If your car is three or more years old, increase the deductible on the
collision and comprehensive coverage to $500 or $1000 to obtain a lower
premium on your car insurance.

4. Investigate Your Debt

___ If the balance on your credit card is large enough that you cannot pay it
off at the end of the month, make eliminating that debt your top financial
priority.

___ Check your credit history by order a report from Experian, Equifax, or
Trans Union. Or, you could order a report from all three in one easy step at
TrueCredit.com.

5. Evaluate Your Bank

___ Add up your ATM charges to see how much that convenience has cost
you over the past year.

___ Determine whether you're getting the most bank for your buck.

6. Explore Your Investments

___ Evaluate your portfolio's performance by matching it against the
performance of the benchmark of your choice.

___ Compare the fees and features of several discount brokers to
determine which one is best for you.

7. Take On Your Taxes

___ Convert ordinary income into long-term capital gains by 1) selling only
stock that you've held longer than a year, or 2) sell mutual fund shares (that
you've held for longer than a year) before the dividend payout.

___ Run a preliminary income tax return to see if additional deductions
might reduce your tax bill.

___ Don't forget to deduct any capital losses that can be carried forward
from last year.

Phase-In of Estate Tax Changes

2008 $2 million
2009 $3.5 million
2010 (gift tax only) estate tax repealed
2011 $1 million


1 The Role of Insurance in Your Financial Plan
Insurance is an important element of any sound financial plan. Different
types of insurance protect you and your loved ones in different ways against
the cost of accidents, illness, disability, and death.

2 What Are Your Insurance Needs?
The insurance decisions you make should be based on your family, age,
and economic situation. There are many forms of insurance and,
unfortunately, no one-size-fits-all policy. Life insurance, for example, is a
virtual necessity if you have a spouse and children, but perhaps is less
important for a single person. Disability insurance, which provides an
income stream if you are unable to work, is important for everyone.

Following is a list of the forms of insurance most people require.

3 Auto Insurance
Auto insurance protects you from damage to the often considerable
investment in a car and/or from liability for damage or injury caused by you or
someone driving your vehicle. It can also help cover expenses you or anyone
in your car may incur as a result of an accident with an uninsured motorist.

Auto liability coverage is necessary for anyone who owns a car. Many states
require you to have liability insurance before a vehicle can be registered.
However, state-required minimum coverage often does not provide
adequate protection. Suggested minimums are $100,000 for medical
expenses per injured person, $300,000 for the total per accident, and
$50,000 for property damage. Collision, fire, and theft coverage is also
advisable for a vehicle having more than minimal value. You can cut costs,
however, by choosing a higher deductible -- the amount of loss that must be
exceeded before you are compensated.

The cost of auto insurance varies greatly, depending on the company and
agent offering it, your choice of coverage and deductible, where you live, the
kind of vehicle, and the ages of drivers in the family. Substantial discounts
are often available for safe drivers, nonsmokers, and those who commute to
work via public transportation.

4 Homeowner's Insurance
Homeowner's insurance should allow you to rebuild and refurnish your
home after a catastrophe and insulate you from lawsuits if someone is
injured on your property. Coverage of at least 80% of your home's
replacement value, minus the value of land and foundation, is necessary for
you to be covered for the cost of repairs. There are several grades of
policies, ranging from HO-1 to HO-8, with increasingly comprehensive
coverage and cost. Unless you increase coverage, most homeowner's
policies cover the contents of the house for 50% to 75% of the amount for
which the house is insured. The liability coverage in many homeowner's
policies is $300,000.

5 Liability Insurance
Often called umbrella liability coverage, this takes effect when the personal
liability and lawsuit coverage in other policies is exhausted. The cost for $1
million worth of protection -- especially necessary for high-income
individuals and those with considerable assets -- may be only a few
hundred dollars a year.

6 Life Insurance
Life insurance, payable when you die, can provide a surviving spouse,
children, and other dependents with the funds necessary to maintain their
standards of living, can help repay debt, and can fund education tuition
costs. The amount you need depends on your situation. If you make
$100,000 a year, have a sizable mortgage, and have two kids headed to an
expensive college, you could need $1 million in coverage.

Value-accumulating, but commission-heavy, whole life or universal
insurance is often sold as a conservative savings vehicle.

Talk with an insurance agent who offers policies from companies whose
financial strength is ranked high by rating agencies. And remember that you
can shop around.

7 Disability Income Insurance
A long-term disability policy is activated, replacing a portion of your lost
income, when you are unable to work for an extended period. Some, but
certainly not all, employers cover their employees with some form of
company-paid disability income insurance. Typically, such coverage is only
partial and/or short-term in nature. Thus, many people seek to purchase an
individual disability income insurance policy. If you're buying, try to get a
noncancelable policy with benefits for life, or at least to age 65, and as much
salary coverage as you can afford. However, keep in mind that the duration
of coverage may be limited because of your occupation.

Insurers will usually cover up to 65% of your salary. Generally, you should
have total coverage equal to two thirds of your current pretax income.

If your company provides disability insurance, check to see whether it's
enough for your needs. Group disability insurance policies may be capped
at six months and provide benefits that won't cover your expenses.

8 Health Insurance
Most people enjoy medical insurance as an employee benefit, often with
their employers paying whole or part of the premiums. Many employers offer
a choice between HMOs (health maintenance organizations) and traditional
fee-for-service care. Rates for HMOs are usually cheaper but have more
constraints. Privately purchased health insurance is much more expensive
-- often by several hundred dollars a month -- depending on such things as
deductibles, coverage choices, and location.

9 Long-Term Care Insurance
With an aging population and uncertainty about the future of Social Security,
insurance to cover the high cost of nursing home or at-home health care is
becoming more widespread. Medicare pays very little of the cost of long-
term care in the United States. Medicaid will pay for the care, but only for
patients whose assets are almost completely depleted.

With Congress always debating the future funding of these programs,
financial planning for long-term care is more crucial than ever.

Medigap insurance can help pay medical expenses of the elderly not
covered by Medicare. However, it doesn't cover custodial nursing home
costs. In fact, about half of all nursing home residents pay for the care with
personal savings.

Contact a qualified insurance professional or AARP for more information on
long-term care insurance.

Summary
Your insurance needs will vary based on your family, age, and economic
situation.
Anyone who owns a car should have auto liability insurance. Collision, fire,
and theft coverage can protect your investment in a valuable car.
Homeowner's insurance should provide coverage up to 80% of the cost of
replacing your home, minus land and foundation. Homeowners should also
have liability coverage, and those with considerable assets may want to
purchase liability up to $1 million.
Life insurance is important for those who have families to cover living and
other expenses in the event of death.
Long-term care insurance can be expensive and complex, but may be a
necessity for older people as the long-term coverage of Medicare is often
inadequate.
Checklist
Calculate your life insurance income-replacement needs (the amount of
money survivors would require in order to maintain long-term financial
security).
Make a list of each policy's expiration date. A few months before those dates,
start shopping around for better deals.
If your home's value has increased recently, determine its current
replacement value and then make sure that your home insurance policy
would provide enough money to rebuild.
Shop around for long-term care insurance and disability insurance if you
don't have them already.