How Financial Planning Helps You Manage Your Money Strategically

Fiancial PlanningFinancial Planning is an integral element of personal financial management. It is a strategic approach in which a financial planner helps people deal with various financial issues in areas such as cash flow management, investment planning, retirement planning, risk management etc. It involves the incorporation of myriad of financial resources and financial tools to achieve financial goals.

All industries across the world have seen drastic changes since the last decade and better financial planning and management is required to handle the financial intricacies. Moreover, with recent economic slowdown and recession, people are realising the importance of financial advisers and planners, especially in Sydney, to manage their personal finance through proper assessment of current situation and comparison with the plan.

Important Aspects in Financial Planning: A financial planner should address all the areas of the client’s financial needs and successfully achieve the set goals. Some of the areas that must be addressed in the overall financial plan are:
? Risk Management
? Cash Flow Management
? Insurance Planning
? Education Planning
? Investment Planning
? Tax Planning
? Estate Planning
? Relationship Management

Steps Involved in Financial Planning: Financial planning involves strategic decision making. Discussed below are the steps that enable strategic financial planning:

Step 1: Goal-setting with the client- Primarily, the financial planner has to identify the client’s financial goals and life goals.

Step 2: Gathering information on the client’s cash inflows and outflows- Preparing a list of how the cash is coming and going would help the planner to better understand how well the money is utilised and how much has to be used for investing purpose.

Step 3: Identifying financial problems that can create barriers- After listing the goals and collecting information on cash inflows and outflows, the financial planner has to identify the pertaining or possible financial problems that can create barriers in achieving the financial goals. Some of these barriers may be recession, high inflation, inadequate increase or decrease in income etc.

Step 4: Making the plan- For each financial goal, a systematic investment plan has to be devised by choosing the correct investment instruments and planning the alternatives, wherever possible.

Step 5: Implementing the plan- A financial plan is only successful if it is put into action. This is done by utilising the resources allocated for each goal in the plan.

Step 6: Periodic review and revision of the plan: Many times the planned scenario does not match up with the actual situation. Because of this, it is important to review the steps to check for misalignment and changes in the client’s situation.

Importance of Financial Planning: In order to reap long term benefits, it is important to plan finances with the help of financial planners and advisers. Some of the reasons why financial planning is important are stated below:

? Increased cash flow: Financial Planning ensures proper flow of cash by undertaking measures such as tax planning, prudent spending and careful budgeting.
? Strong capital base: Through efficient financial planning, strong capital base can be established. It enables the person to think about investments and thus, improve their financial position.
? Income management: Financial planning facilitates management of income which helps in segregating it into tax payments and other monthly expenditures and savings.
? Fulfil financial goals: By planning the finances, an individual can fulfil his or her aspirations which may include enrolling for an educational program, going for a vacation or savings for retirement.
? Family security: From the point of view of family security, financial planning is crucial. Various policies available in the market serve the purpose of financially securing one’s family.
? Standard of living: A proper financial plan ensures that one’s standard of living is not affected even in difficult times. For instance, death of the bread winner in a family or recession may affect the SOL if the financial plan is not in place.
? Savings: Through planning, one can ensure financial security in the form of savings and investments.

Though financial planning is believed to be a time-consuming activity, it is worth all the effort.

This entry was posted in Finance.

Financial Advisor – How to Find the One You Like

Financial AdvisorYour financial life more or less controls every other aspect of your life since you need money to eat, drink, have a roof over your head, and to have clothes on your back. Sometimes, you need a little help with your financial life, which is why you may wish to employ the services of a financial advisor.

A financial advisor will help you make the right decisions regarding your present and future financial condition. You do, however, need to make sure you have the right person doing the advising or they can lead you in the wrong direction and cause you to lose everything.

It is a fact that most people will need the help of a financial expert at some point in their life. You will need their assistance with retirement plans, finances, investments, insurance, estate planning, or your income taxes.

When you use a financial advisor, they are able to guide you through all of the rules, regulations, and the complicated federal and state laws. It is through their recommendations that you are able to make your plans more solid. You know that you are on the right track when your advisor tells you so and advises you on how to keep everything going in the right direction.

Even a person who is not on the right track can benefit from what a financial advisor has to offer. As a matter of fact, these individuals can go from being “down and out” to landing on their feet and establishing a stable financial future.

Choosing the right financial advisor

The financial services industry is offering more and more services to individuals. Rather than just providing advice, the service range is much broader. This means the first thing you need to know when looking for advice is what service you want to take advantage of. Financial advisors come in different forms. They come as investment advisors, financial consultants, investment consultants, or another title suggesting the same. No matter their title, they all state that they offer the best financial services available.

It is up to you to find out whether or not the claims that they offer the best financial services are true or not. Here are the steps you need to take to find the best financial advisor for you:

Compile a list of advisors you want to check out. You can check your local telephone book or do a search online. You can also locate financial advisors through an Internet search.

Make an appointment with each company you are interested in. This hour of consultation may be free or it could cost you up to $150 or more. The time should be spent with you telling the financial advisor what you want. Be sure to be prepared by having your net worth, a statement of your income, and what your goals are. Preparation can keep you from having to pay out a large sum of money for the advisor’s time.

Confirm what the financial advisor’s fees are. Ask how they are paid, how much they charge, etc. Those such as tax advisors and estate planners may request to be paid by the hour, while others may be paid through commissions they earn when facilitating stock trades.

You should always request an “ADV form.” Each financial advisor that is legitimate and manages over $25 million in investment assets reports their methodology, education, compensation, and business background to the Securities and Exchange Commission. This form allows you to obtain that information. Those that manage less than $25 million in investment assets disclose the same information to the securities agency within their state.

If the financial advisor sells securities, they should have a Central Registration Depository, or CRD, on file with the state securities agency.

During your appointment look for any diplomas or other credentials on the advisor’s wall. If you do see such documentation, look at what the initials after their name say. You want to see ChFP for Chartered Financial Consultant, CFP for Certified Financial Planner, PFS for Personal Financial Specialist, or CPA for Certified Public Accountant.

Unfortunately, most states do not have a licensing requirement, so almost anyone can call themselves a financial planner. This is why you want to rely upon credentials.

Experience is also important because the longer, the better. You can ask for sample work, names of clients, and ask how long the financial advisor has been in the field and done business in the area.

If you have friends who have used a financial planner in the past or present, ask them about their experiences. Be sure to find out anything you can regarding how they charge, if they are trustworthy, if they have the proper credentials, etc. Word of mouth is very powerful. Keep in mind, however, that you need to make your own determination because your idea of a good financial advisor may not be the same as your friend of family member’s.

Using the above tips can help you to find the financial advisor that is right for you and your particular financial situation.

Here are just a few more tips to help you choose a financial advisor that is the right fit:

You may want to choose an advisor that does specialize in different areas if you want to experiment with different ways to make your money work for you. For instance, you need to be advised on how to save money, but you may also want to do some investing so that you can make your money grow. Having your services in one place can help you to save money rather than having different types of financial managers with their hands in your finances.

Once you have the right financial advisor in place, you can rest assured that you will have a much better financial future than you would have otherwise. You only live once, so you want to make sure you live it right and as comfortable as you can.

This entry was posted in Finance.

Get Peace of Mind and Financial Freedom with a Household Budget

get peaceWith the economic times hitting so many households so hard it is time to find out how you will be able to manage in these difficult times. A household budget must be implemented in order to determine where you are overspending and can cut costs. This can help you begin to practice cost analysis methods before you go out and spend money.

A cost analysis is a method of determining the overall cost of a family event. For example, you want to take your three children to the movies and you want a real cost of the show. The show is 50 miles away, the kids must eat, you have to buy tickets, etc. You may find the overall cost to go to the movies after gas, food and tickets, is around $100 or more. This is not cost effective for your budget. Determining the cost of a movie is not only the tickets to get into the show. This is where many people go wrong with their budget and they cannot figure out where their money went. Take snacks, carpool, eat first, or just rent a movie on pay-per-view and stay at home. A cost of $5 is much better than $100.

A household budget will consist of everything you owe and everything you count on. The priority items on your budget include living expenses you cannot go without which include basic necessities like a roof over your head, electricity, water, food costs etc. Below these items then place all of your monthly bills that you owe underneath.

You also have to include all the items that constitute your net worth, all the money received in your household, etc.

This is where you face reality. It is very painful for some people, especially if there is a risk to lose their jobs and they have a lot of debt.

The good news is that a household budget can give you the peace of mind you need and an open door to financial freedom. Knowing how to set it up in a way that instead of giving you pain gives you freedom and money in your bank account is the key to succeed in your way out of debt slavery.

A household budget is vital if you want to make it in the economy today. Many people dont know the first thing about a budget and financing. You dont need to be an expert, but you need to know how to set it up, what items to include, and the tricks to make the process as painless as possible. With the right tools and information, setting up a household budget becomes very easy.

This entry was posted in Finance.

Debt Relief and Financial Planning

debtThat nobody likes debt is a simple truth. However, our current economic model is driven by debt. From the billions that countries borrow from each other and common resources to the thousands that people spend each year on their credit cards, debt is built-in to our modern world.
But the problem with debt is that it is often easy to lose control of the situation and take on more debt than is physically possible to repay, considering other commitments you may have. In addition, unfortunate events often give rise to unwanted but necessary debt. From insurance deductibles and co-pays to unexpected expenses, an average person’s books are a delicate balance between income and expense. If that balance is upset for any reason, the downward spiral to uncontrollable debt starts to happen.
How Can I Recover from Huge Debt?
It is definitely an unpleasant experience dealing with unpaid debt; the problem impacts nearly every other aspect of your life from your mental well-being to your future employability. Since your credit rating is linked to every major financial transaction you will ever make, a dip in that is akin to being hit when you’re down. The double-effect of debt and poor credit can often send people into bouts of anxiety and affect family life as well.
Recovering from debt is all about evaluating, planning and then executing. The first step is to eliminate sources of further debt. If that means cutting all of your credit cards in half, by all means do that. If your gas-guzzler of a car is the source of your debt, get rid of it and take the bus instead. If your lifestyle habits are the source, make some drastic changes to control further debt. However, this is only a first step; the only thing that will help you at this point is negotiating a new payment plan with your creditors. A professional debt management company can help you do this, but you have to be up-front about any existing debt and all sources of income so they can help negotiate on your behalf and chart out a new payment plan for you.
Why Do I Need a Financial Planner?
A financial planner can deal with the debt part, but more important than that is your future financial health. Dealing with a fire is only a temporary solution – the real answer is in making things fire-proof to whatever extent possible. A company like Your Financial Life is dedicated to making this happen for you. Click here to find out more about their services, and reasons to use them. They will guide you through the maze of financial planning and draw out a new game plan for your ultimate success.

This entry was posted in Finance.

How Financial Advisors Can Help In Expatriate Investing

How Financial AdvisorsWhen a person works hard for the entire month to get his income at the end, he doesn’t want it to go in waste. He will try to look for the new ways to invest his income to make it grow with the help of the best financial advice given to him by experts. Investment is the best way to see your money grow and have a safe financial future ahead. There are different ways of investment to let your money grow like:

* Insurance: in insurance plan a person has to deposit a certain amount of money with the insurance company for a given period. After the amount you have deposited reaches maturity, you can take the money along with the interest hence a bigger amount will be given to you. There are different types of insurance plans like life insurance, education insurance and medical insurance, which can provide you funds if you die, have to pay for treatment or any other unfortunate incident, otherwise can receive the amount after the maturity.
* Mutual funds: mutual funds are the funds you deposit in the market along with a company, or by buying shares of that organization. They can provide you great returns only if the market is performing well and is in bull or having profits. If the market is going down like it is happening now with the economic crisis, you can lose your entire sum of money deposited. You can take help from the top financial advisors to find out about the safest mutual funds.
* Investing in real estate: this field of investment is not new but wasn’t much popular with the moderate income group like it is now. You can invest in a construction company and avail assured returns if the company is registered. Make sure to find out about the company more before investment.
* Expatriate investment: in expatriate investment a person invests money in some other country or in a foreign land. This surely can give you a large percentage of returns but also involves risks. You do not know about the company in which you are investing. People have faced lots of frauds in expatriate investing thus government of USA has declared it illegal. If still you want to go ahead with it then discuss with financial advisors about which company is good and how you make more money.

Visit mintfinancial.com for more information on these.

This entry was posted in Finance.

5 Uses For Experts

Know The Best Ways To Handle Tax Returns

When it is about the tax return during the tax season, businesses and individuals should understand that it is their duty to file these returns as citizens. These tax return are considered components of being governed by the basic services in the state. It is necessary that you can be able to know which services you need when filing tax return, whether tax service companies or certified public accountants. It is necessary also to note what it means when saying quality tax return. Another concern is whether tax returns are filed and prepared, with income taxes reduction.

Someone who has been involved countless of times in the process of tax return preparation knows that the clients need to provide information on the tax return documents.

When it comes to competing tax return documents, the details and information should come from the clients since the information has to be accurate all the time. It does not mean that the preparation are the same for all taxpayers. Since there are various tax returns from new clients, these returns can have varied preparation methods.

This article will present some examples for you. For instance, you made expenses that are categorized either under investment expenses or business expenses. These classifications might involve some tax return deductibles as stated on the provisions. However, there are tax returns that are more deductible in the business expense than in the investment expense. These deductible is always possible. For instance, investment expenses can have tax return deductibles within a particular time frame and are called miscellaneous itemized deductions. There are thresholds on these miscellaneous itemized deductions as well. If these expenses exceed two percent of the income, they are deducted from these expenses. To illustrate, if a person has $7,000 investment from his $300,000 income, then the deduction can be pursued. Taxpayers have to note that the benefits and coverage that they can get from the alternative minimum taxes.

Meanwhile, if taxpayers are able to deduct the expenses on another time frame, then there are instances that the deductibles are full from the expenses. Furthermore, then the expenditures can be lessened from the self-employment earnings from the business. Aside from the income tax benefits, then consumers are bound to get benefits from these circumstances as well. It has always been the aim to acquire the most benefits from the tax returns. Investors can also be entitled to some benefits when there is a need to, in the long run. These are just some wealth creation principles with respect to tax returns.

Source: Tax Return

Discovering The Truth About Taxes

Tax Returns: Successful Tips

It is very important to have the best team of advisor in order to have your financial goals achieved faster than you thought possible. For a lot of people, taxes are the biggest expense that they have to pay every year. This is the reason why it is important that you should have the right person who can prepare your taxes right.

How do you find the right tax preparer for you?

Remember that not all tax preparer are the same. In this article, I have calculated the average savings that I have found in most annual tax savings with reduced professional fee and audit assessment and here are the total savings:

$23,750 annual tax savings
$5,000 defense savings
$10,00 audit assessment savings reduced
$50,000 reduced legal fees
$3,000 reduced tax return preparation fees

$91,750 is your average total savings. This could only mean that your tax preparer do make a difference. There are still so many things you can do with this savings.

Your tax preparer will depend on what is really important to you.

So what really makes a tax return successful?

Here some of the basic questions that you can answer and your answer to these questions will greatly have an effect on what type of tax preparer you may need for your team. All the questions here I have already asked these with my colleagues, clients and prospects. Apart from the questions, I have also complied all the common answers and what it means when you are looking for the right candidate for the tax preparer for your team.

When you pay the least amount of tax legally.

Tax preparer has to:

Your tax preparer must know the law and be creative legally.

You need to ask questions about your current situation for you to fully understand you situation as well as your goal.

It is also important that you have someone who will check and review your tax return separately to find out more on how to reduce your tax legally.

These are the questions that you can ask your tax preparer.

What are the other industry you serve?

:it is very important that the tax preparer will know what tax laws that will fit to your situation. If they have the same client in your industry or investments the tax preparer will know what tax law that will impact you.

Who is going to work on your tax return?

It is quite common for a tax preparer to have staff that will prepare your tax returns You only want to make sure that your tax return is being handled by people who have the same level of expertise as the tax preparer.

When you hire a tax preparer you have to be very patient and selective. You can save over $90,000 if you hire a good tax preparer.

Source: Tax Return

How I Achieved Maximum Success with Returns

Standard Recommendations Relating to Tax Returns

A tax return is actually a form that has to be filled in with specifics of such things as your income. Through the tax return, the quantity of tax you are chargeable to is calculated.

If a tax return is issued there is a legal responsibility to fill the issue in. Preparing a tax return is a type of thing we tend to construct up within our minds as a large deal, when it does not have to be. Prepare and lodge your very own tax return electronically.

A tax return is usually required for other factors, for example to examine if the right tax has been paid out overall. So In case you are dispatched a tax return, you need to fill up it in and ship it back even though you believe that you’ve got no extra tax to pay for.

A tax return is usually a document submitted with HMRC that declares a taxpayers legal responsibility for being taxed, based mostly on their yearly revenue.

Three outcomes are attainable from submitting a tax return: both the taxpayer has possibly been charged excessive or too little of his or her income, or they are already charged the correct volume. A tax return can be a form on which you might be questioned to report your money and capital gains, and provides aspects of reliefs and allowances claimed, for a certain tax year.

It relates to taxpayers who are determined as demanding a tax return and that are issued with a discover to file or even a paper self assessment taxes Return incorporating a recognize to file. It also relates to people who produce a clean exterior a tax return.

If you are freshly self-utilized it is not adequate just to file a tax return by Oct 31 for the tax year during which you became self-used. You must explain to HMRC that you’ve got started to work yourself within three months.

If a return is submitted following the deadline for that strategy, HMRC has approximately and right up until the quarter day pursuing the first anniversary of the day the return was submitted, in which to open up an inquiry.

The HMRC’s local office construction has become dismantled, but The brand new structures do not show up to provide adequate assist mechanisms. There is little question that this concern is the biggest one cause for concern amid tax professionals and accountants, who symbolize the largest variety of qualified tax advisers in Britain, many of whom handle HMRC on an extremely regular basis.

Remember that if you are doing your online tax return on time and don’t breach rules that you are far not as likely to attract the eye of your HMRC investigators.

Source: online tax return

If You Think You Get Services, Then This Might Change Your Mind

sThe Advantages Of Online Tax Returns

Today, online tax options have become a hot topic throughout the world. It is among the quickest methods of submitting returns. So, if you need to file them online, then this informative article could be of excellent help to you. There are rather a lot of great things about online options. One should avail all this kind of advantages.

I must tell you that when you adopt this process, you would surely like it. Tax return preparation requires calculating the revenue taxes. The process is long and wearisome if done through the tax filer himself. Nowadays, individuals or enterprise establishments have another alternative for this. You should purchase tax preparation software program, or there are numerous internet sites in the online where you can pick from, which even gives their software free of charge and you may as well do online tax return preparing.

But for a company owner filing income taxation statement could be a frightening task. At times, accountants and accounting clerks must render overtime just to make certain that the preparation of the said documents and data files are organized and completed efficiently. For some, as a result of large workload would want to hire temporarily someone that could work using the accountants. This would entail a substantial amount of cash in overhead and team costs. I would like to tell you that it is among the modern means of returning tax.

You can locate numerous websites on the web which will support you and immediate you in each and each footstep. Now, listed below are a few of the key benefits of an online tax return. Everyone knows that time and cash go together. Time is money for each and every one. You should never waste time and cash in looking for tax return software.

By submitting them online, you could seal in your facts using the software without the need of scripting all of your details manually. It is important to notice that appointing a specialist for this occupation is costlier than submitting a return online. Yes, it is legitimate that this technique of submitting them is pretty effortless for each and every taxpayer. Well, if you’re able to the internet through your home PC you’ll be able to conveniently file tax return online. Once you start submitting your tax return online, I can assure you another thing that your glitches in tax submitting would reduce an awesome deal.

It helps you very easily assess your tax file. Thus, you can examine upon your faults and rectify them. Even your calculations could be done by the software package.

So, there isn’t any chance of any mistake being left out. For those who file your return online, you’ll be able to certainly get entry to your tax refund in really quick time. The whole money will be transferred to your banking account directly without stress.

Source: Tax

A 10-Point Plan for Returns (Without Being Overwhelmed)

Common Errors When Filing Income Taxes

Nowadays, thanks to tax preparation software, it is easier to file annual tax returns. However, with just a single slip in putting in your information on your computer could end up costing you, either in the form of a larger tax bill or a smaller refund. Additionally, even when a mistake, either on your PC or paper forms, doesn’t cost you any money, it could delay the receipt of any refund you’re expecting.

One thing you have to remember is that tax changes can also complicate the annual tax-filing exercise. For example, in the 2015 tax year, the reporting and filing of requirements prompted by the Affordable Care Act have caused a countless of difficulties for taxpayers, tax professionals and even the IRS. Whether or not are there are special taxes to be applied in the current year, there are still plenty of incidents that you may accidentally mess up a 1040 form.

Tax Math miscalculations

Each year, the top most common mistake that happens on tax returns are incorrect math. Any kind of error in your arithmetic or in moving figures from one schedule to another will get you an instant correction warning. You need to remember, even the most simple mathematical error can reduce your tax refund or result in you owing more taxes than you thought. Your primary responsibly is to get all the numbers correct since the IRS will be doing a double-check all of the numerical entries against its copies of your tax statements (W-2, 1099s and the like).

Another common math error are computation errors, here taxpayers or their tax pros make mistakes in figuring such tax-return entries as taxable income, withholding and estimated tax payments. Additionally, credits and special deductions also pose problems.

Misspelled and Incorrect Names

One important thing you need to recall, the IRS is not just all about numbers, but words too, especially correct names. If ever the names of a taxpayer, his or her spouse, or even their kids don’t match with the tax identification number that the Social Security Administration will provide it may start different problems with the processing. Usually, this problem is a normal especially for women who are newly married. That is why it is crucial that you should announce to the Social Security Administration as soon as she can when she got married and will be changing surnames.

Added Income Means Added Filing Work

If you have any side job, for example, as a contractor you will most likely receive a Form 1099-MISC detailing the extra earnings. You must never miss out on stating these vital details or the IRS will count this against your owed taxes. There are numerous other tax problems that you will meet, it is vital that you know how to amend them to avoid problems.

Source: Tax Return