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.
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.
___ 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.