Interest rates are at historically low levels. This is great for the loans you have that have variable interest rates but not so great when you have savings in the bank or other investment vehicles and are trying to make interest income on those investments. You can improve your net worth by reducing your debt. Have you considered making larger loan payments against your debt? With a lower interest rate on your variable loans, more of your monthly payment is being applied to principal and you are creating more equity in that investment as that debt goes down. Perhaps those liquid funds should be used to reduce debt. What other factors should you consider? Are there any prepayment penalties associated with the debt? Are you turning a liquid asset into net worth - will you need that cash in the near future for another opportunity? With the tight credit market today, you might not be able to get that cash back by refinancing if you need to. Please contact us if you have these types of situations and have questions about your options.
Health Savings Accounts
Please review your health insurance coverage and the options available for you. Are you familiar with high deductible health insurance plans coupled with heath savings accounts? These can be a wonderful option for many people. Please call us to discuss how these work. We use a health savings account associated with our health insurance plan and can review the impact of this type of insurance.
Online Bank Accounts
Are you accessing your banking and credit card activity online? I strongly believe that frequent reviews of your banking and credit card transactions is your best defense against identity theft or other financial fraud. If you do not already have online access to your banking activity and have any questions about how this works and what to expect, please contact Bill or I to review this. In today's fast paced world, waiting until you receive your monthly bank statement to review your transactions is not providing the level of protection needed today.
Computer Passwords
Where do you keep your passwords for all your online transactions? Are they scattered around your office on scraps of paper or perhaps on sticky notes on your monitor? We have a much better solution for you. Google Roboforms and review this secure software. Please give Bill or I a call regarding this.
College Savings
We have one child through college and one with three semesters yet to go. Kristin is living in Nashville now and working as a nurse at Vanderbilt Medical Center. We are very proud of the young woman she has grown into and we LOVE visiting her in Nashville. She plans to continue her education with a Masters degree once she qualifies for tuition reimbursement at Vanderbilt. It should be no surprise that we have managed to instill in our children to need to make financially sound decisions when it comes to their education expenses. Scott is attending the University of Akron - studying accounting. He works for us part time and is a big help to both Bill and I. We understand the financial stress that college brings to a family. We are feeling it! College expense is a huge undertaking for famiies today. Do you have children? Do you expect those children to attend college? What are you doing today to prepare for those costs? We strongly recommend a 529 college savings plan to enable you to start to save now for this expense. It is never too soon or too late to get started on this. We would love to be able to review your thoughts and plans for this important time in your family life.
Both Bill and I we want our clients to ask questions of us. After all, it is YOUR money and YOUR financial future we are helping you with. The following is a selection of articles I think you will find meaningful. Please contact us with your concerns so that we know the types of issues you are having.
Real Estate Valutaions
Recently, Richland County completed its reappraisal of real estate. We encourage all real estate owners to review the 2011 tentative values listed on the Richland County Auditor's website.
Go to: www.richlandcountyauditor.org and click on the tab for PROPERTY RECORDS. You can then search by name. Once you click on the property address you are reviewing, you will then see a number of links or pages listed on the left hand side of the screen. Click on the link for: 2011 Tentative Values. If you feel the value is reasonable, you need take no action. If you feel the value is too high or too low, please contact our office and we can review with you the steps you might want to take with the County Auditor's office
Working May Decrease Your Social Security Benefits Many taxpayers currently underemployed due to recent economic conditions may consider applying for social security retirement benefits earlier than they previously planned to supplement their income. But, continuing to work while receiving those benefits may cause their benefits to be reduced below the anticipated amount.
Maximizing Business Transportation Expense Deductions The costs of commuting from a personal residence to places of business or employment generally are nondeductible personal expenditures. The deduction for commuting costs is disallowed regardless of the distance involved.
Business Cell Phone Restrictions Removed Effective for tax years beginning after 2009, cell phones and similar telecommunications devices used for business are no longer subject to the ultra-strict recordkeeping requirements that formerly applied.
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