Finance > Taxes > Year End Planning
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Article rating : 0.00, 0 votes. Author : Roger Sorensen
Can anybody tell me what is so important about the next four weeks?
Christmas and New Year's Eve parties do not count as valid answers.
Instead, you are given a few last opportunities to get your 2003
finances in order to minimize the tax bill you'll pay next April.
We all know about mortgage deductions, and charity giving being
deductible and a few other things like that. We also know about the
standard deduction, home business expenses and other stuff that you
can learn from software programs like Turbo Tax (not an endorsement).
But what about the lesser known deductions - medical savings, and
others that I am not going to get into because I am not a tax expert.
I do know who to recommend you go to talk to: a financial planner.
Preferably a Certified Financial Planner.
Okay; here's a short test - all True or False answers.
1. T or F Financial planners are the same as stockbrokers
2. T or F Financial planners are primarily investment advisers
3. T or F Rich people are the only ones who can afford financial
planners
4. T or F Financial planners aren't worth the money you have to pay
5. T or F You should only work with fee-only planners
6. T or F You can develop your own financial plan
Tally up your totals. How'd you do? If you have more than 5 False
marks you're doing great. Anything less, read on and learn what you
can about how to improve your year end financial planning.
1. False - the Financial Planning Association notes that a
stockbroker, insurance agent, and other financial sales personnel
have the function of selling financial products. These days just
about anybody can hang out a shingle claiming to be a financial
planner.
A good planner's job is to help you identify your financial goals
and working with you to develop a plan to reach those goals.
2. False - investment advice is just one part of what a planner
does. Financial planners are supposed to look at your entire
financial picture - debt, taxes, retirement, savings, estate planning
and insurance.
3. False - an increasing number of planners are working with modest-
income clients. Go to www.fpanet.org to look for a financial planner.
4. False - sometimes you get what you pay for. A planner is an
objective third-party who can help you budget better, reduce taxes,
or even prevent a costly financial catastrophe.
5. False - with a caution. Fee-only planners can cost $100 an hour
and so can be prohibitively expensive. If you have a planner who also
sells financial products, beware of high-pressure tactics. Financial
planning won't help you if the planner pressures you into buying
products you can't really afford or aren't what you need.
6. False - with a caution. This depends on what kind of person you
are. If you are good at planning your financial future you won't need
a financial planner. If, however, you are like most people you don't
have the time or inclination to figure out how best to use your money
then you really should consider hiring a financial planner.
So in the last four weeks of this year you need to sit down and
decide what financial moves you can do to best help yourself. If this
requires the use of a planner, don't hesitate to contact one. At the
very least, sit down for an hour with all your paperwork in line and
see if they have any suggestions as what you can do. With the power
of the Internet behind you there is little reason why you can't
improve your financial situation in this remaining time if you just
know what to do.
Roger Sorensen
America's Financial Guide can be found at ==>http://www.Slave2Work.com Subscribe to Money Basics via http://www.slave2work.com/ezine.html
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