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We're ready for Tax Season Are You?

If you’re a CPA and missed out on the opportunity to be featured in our guide, it’s not too late!  Be sure and contact us so you can be listed in the continuation of our CPA Guide for the February, March and April issues.

Individuals who participate in a 401(k) plan sometimes borrow from their plan. While you may justifiably feel squeamish about taking out a 401(k) plan loan, it can actually make good sense in appropriate circumstances—assuming it is paid back on time.  For instance, in today’s tough economy, plan loans can be a source of much-needed cash when bank loans are unavailable or prohibitively expensive.
401(k) plan loans are generally economical and easy to obtain. 

I was sitting in the locker room the other day with a couple of fellow club members after a horrible round of golf (nothing new for me).  My friend, a doctor, turns to me and says, “Peter, as soon as I have some wealth, I’m definitely going to put my money with you!”  “I get that a lot,” I responded.  “You will do what you have to do and I look forward to that day,” I added. 

Discussions with parents or other family members regarding estate planning can at times be difficult, emotional and stressful.  This discomfort, however, cannot compare to the financial pain felt by family members whose parents die without having implemented estate planning strategies.  Relying upon state governments to decide the management and distribution of our assets and property can be an unsettling experience.  Probate costs and the time delays associated with municipal court systems may leave heirs financially unstable. 

One of the few things you can control about Social Security is when to start collecting it.  Should you take it when you become eligible at age 62, wait until “normal” retirement age (a function of your birth date) or consider delaying your benefits past normal retirement age?

Part of reaching your potential means using your brain.  Most people use computers, email, and other various electronic devices.  If you do too much text messaging, this may decrease your concentration.  Your mind is constantly being distracted and eventually is looking for the next distraction, rather than focusing on the work that needs to be accomplished.

You’re all painfully aware that there are far too few openings for the mass of capable and talented job searchers.  So you see a notice for a job fair and hope for the best.  Let’s develop your expectations and make a plan of attack!  It is often frustrating that there are simply not enough exhibitors offering positions of high enough substance.  You can still be productive, gather information that is very helpful to your job search, and make great connections, even if an exhibitor doesn’t seem attractive initially.

Will you be 65 soon?  If you’re turning 65 in the next few months, you might consider getting a Medigap policy to supplement your Medicare coverage.  Most people think Medicare covers more than it actually does.
For 2009, Medicare Part A gives you a $1,068 hospital deductible per stay; Medicare Part B asks you to pay 20 percent of physician, outpatient and home healthcare costs after a $135 deductible.  With numbers like these, it’s easy to see the value of Medigap coverage.

Short sales and pre-foreclosures are two home types that constitute a growing subset of bargain homes that also includes properties referred to as “distressed” homes.
Americans facing the very real threat of foreclosure are looking for ways to avoid it.  One option that has garnered a lot of industry interest is a short sale.  Normally reserved for stocks and other finance-related transactions, short sales are becoming an increasingly popular, and common, foreclosure avoidance tactic for homeowners.

The best time to start using new accounting software is at the beginning of the new tax year.  For most business owners this is January first.   Quickbooks is the most popular accounting software for small business owners.  It’s inexpensive to purchase and easy to install.  However, if not planned and not managed correctly an accounting system can become an ugly monster.  People underestimate the effort required to start a new accounting system.

Does your current financial institution provide free online advertising for your products or services to local consumers?  Premier America Credit Union has created the Community Marketplace to give local member businesses an exclusive opportunity to sell their products to the consumer members of the credit union. 

According to Webster’s dictionary, a vacation is defined as a period of time away from work for pleasure, relaxation, or rest.  Isn’t it time you took your vacation?  Relax in an atmosphere full of beauty, life and entertainment.  Rest in a room fit for your comfort.  A vacation is supposed to be about you.  Get ready to explore the possibilities. 

Every fall, the Santa Clarita Valley Chamber of Commerce hosts a fun-filled weekend of family fun — the Annual Home and Business EXPO.  Now in its 25th year, Expo moves to the new Santa Clarita Sports Complex located at 20880 Centre Pointe Parkway near the intersection of Golden Valley Road between Sierra Highway and Soledad Canyon Road.

You’re 60 years old, you’ve been saving in your 401(k) for over 30 years, your investments are poor at best, a majority of your plan includes your company’s stock, and/or you can never reach a plan advisor to direct you on your investments.  There should be something you can do.  Well, there is!  It’s called an in-service withdrawal/distribution and it’s available in many employers’ 401(k) plans. 

To provide some relief for taxpayers who are paying higher education costs for themselves or members of their families there are several tax credits and deductions available.  Generally, qualified tuition and related expenses are out-of-pocket costs for tuition, fees, books, supplies and equipment that are required as a condition of enrollment at an accredited post-secondary educational institution.  Costs associated with room and board; insurance; medical, transportation and similar personal items are not qualified tuition and related expenses.

The current bear market has been one of the most tumultuous ever for the financial markets — and among the most difficult for investors.  But even the most severe bear markets turn around.  Many investors may have made sensible adjustments in response to the crisis.  As a result, however, their portfolios may no longer be aligned with their long-term goals.  What’s more, their current holdings may not be the ones that will benefit when the market does begin to rise.

Many people in business have it, and they do not know how to deal with it.  What is it?  It is information overload.  The Internet has unleashed the age of information overload.  With the Internet, we have a very large amount of information available.  In order to see the big picture clearly and identify opportunities, you need to reduce information overload.

Why are more and more financial advisors fee-based?  It comes down to philosophy. Advisors are increasingly choosing a business model that promotes a trusted, ongoing relationship with a client, rather than just a sale. 

Would you rather meet with an advisor, or a salesman?  A fee-based advisor has every motivation to be your financial consultant and help you manage the investments you have chosen.  Does a transaction-based advisor have similar motivation?