Its time for your annual Check-up
Now is an ideal time to review your financial plan for 2010.
You should now have a past year history, or an idea of where your money is going, how your investments are performing, and what your savings are earning. By taking a look at where you stand now, you can adjust your financial strategies to better meet your goals by year end. Here are the critical item to review.
Analyze your Cash Flow:
Add up the income you received from all sourses last year: wages, interest, dividends, etc. Then add up all your expenses for the same perior. If you income is greater then your expense, make a plan to invest as much of the surplus as possible over the balance of the year. If your expenses are greater thatn you thought they'ed be, adjust your discretionary spending habits accordingly.
Review your interest earnings.
If you've got money parked n a passbook savings account, you need to find alternative sources that offer a much better rate that are safe. When you compare interest rates, be sure to consider the impact of compounding-it can make a real difference in what you earn.
Contribute to your IRA now
Weather or not you are eligible to deduct your IRA contribution, make a contribution now because income earned in an IRA is tax deferred. Don't pay taxes on interest you earn when you can defer the tax until you retire.
Adjust your withholding. Many people deliberately have excess withholding taxes dedcuted from there paychecks. It make s no sense to pay money to Uncle Sam that couldbe earning interest for you. And because many states have increased there income tax rate, you may be giving up even more money than you think
Review your disability insurance
The most common mistake in personal financial planing is failing to have adequate disability insurance coverage. From an actuarial standpoint, it's more likely that you will become temporarily disabled than it is that you'll die during your income earning years. A good rule of thumb is to have coverage that will pay you about two-thirds of your pre-tax earnings. Look for a policy that will protect you until your age 65.
Re-examine your Will
Has your personal or financial situation changed suring the past year? if so, you should look at your will for possible updating
This is just some information that might interest you in trying to establish what your financial health really is.
Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.
Now is an ideal time to review your financial plan for 2010.
You should now have a past year history, or an idea of where your money is going, how your investments are performing, and what your savings are earning. By taking a look at where you stand now, you can adjust your financial strategies to better meet your goals by year end. Here are the critical item to review.
Analyze your Cash Flow:
Add up the income you received from all sourses last year: wages, interest, dividends, etc. Then add up all your expenses for the same perior. If you income is greater then your expense, make a plan to invest as much of the surplus as possible over the balance of the year. If your expenses are greater thatn you thought they'ed be, adjust your discretionary spending habits accordingly.
Review your interest earnings.
If you've got money parked n a passbook savings account, you need to find alternative sources that offer a much better rate that are safe. When you compare interest rates, be sure to consider the impact of compounding-it can make a real difference in what you earn.
Contribute to your IRA now
Weather or not you are eligible to deduct your IRA contribution, make a contribution now because income earned in an IRA is tax deferred. Don't pay taxes on interest you earn when you can defer the tax until you retire.
Adjust your withholding. Many people deliberately have excess withholding taxes dedcuted from there paychecks. It make s no sense to pay money to Uncle Sam that couldbe earning interest for you. And because many states have increased there income tax rate, you may be giving up even more money than you think
Review your disability insurance
The most common mistake in personal financial planing is failing to have adequate disability insurance coverage. From an actuarial standpoint, it's more likely that you will become temporarily disabled than it is that you'll die during your income earning years. A good rule of thumb is to have coverage that will pay you about two-thirds of your pre-tax earnings. Look for a policy that will protect you until your age 65.
Re-examine your Will
Has your personal or financial situation changed suring the past year? if so, you should look at your will for possible updating
This is just some information that might interest you in trying to establish what your financial health really is.
Franklin Katz, ATP ,PA, PB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934
e-mail: [email protected]
Providing Professional Accounting Services and Income Tax Preparation
Circular 230 Disclaimer – Any tax advice in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matters addressed herein.