Accounting News and Notes

I believe that in information in the hands of a wise business owner is a wonderful thing. However, that information has to be both timely, informative, and useful. Absent these three factors being fully satisfied then I would suggest changes should be in order.First: I believe financial should be issue on longer that the fourth workday after the close of a month. Absent their timely relevance, financial’s should not be distributed as much of the cause of their need would have lapsed.

Secondly: I believe that financials should be clear and concise and not uduly culletered with unnecessary accoutns will little or no monies in them or even subaccounts. If an account is not substantive enough to stand on its own merits then it should not exist at all.

Thirdly: And equally as important is that all financials should tell a story but often the subleties and interpetations of their significance can only be adequately expalined or clarified by narratives or substantiating statistics and infromation.

Providing timely and usefuly information is a financial departments primary and most important task and must be achieved in order for the business to both survive and thrive.

Passing the College Test 

In the United States, attending college has shifted from a privilege for a relative few to an expected rite of passage to adulthood. An estimated 17.6 million U.S. students will attend college during the 2006-2007 school year. That’s more than a 40 percent increase compared with 25 years ago.¹

So it follows that paying for a college education has become one of those financial milestones that most parents need to prepare for somewhere between buying the family home and saving for retirement.

Fortunately, there are some tax-advantaged vehicles to help families accumulate money for college.

Coverdell Education Savings Account: An ESA is a popular alternative for college savings. Up to $2,000 can be contributed per child (under age 18) every year. Funds accumulate tax deferred, and withdrawals are free of federal tax if used for qualified education expenses. ESAs also offer investment flexibility, allowing investors to choose their own investments.

Section 529 savings plan: This state-sponsored plan allows families to save for future higher-education costs. Contributions are made with after-tax dollars, but any earnings grow tax deferred. The contribution rules are also less restrictive than ESAs. Withdrawals are tax-free if used for qualified higher-education expenses (tuition, fees, room and board, and supplies). For withdrawals not used for qualified higher-education expenses, earnings are subject to income taxes at the owner’s rate plus a 10 percent federal tax penalty.

As with other investments, there are generally fees and expenses associated with participation in an ESA or a 529 savings plan. In addition, there are no guarantees regarding the performance of the underlying investments.

The tax implications of a 529 savings plan should be discussed with your legal and/or tax advisors because they can vary significantly from state to state. Also be aware that most states offer their own 529 plans, which may provide advantages and benefits exclusively for their residents and taxpayers.

Before investing in a 529 savings plan, please consider the investment expenses, risks, charges, and expenses carefully. The official disclosure statements and applicable prospectuses, which contain this and other information about the investment options and underlying investments, can be obtained by contacting your financial professional. You should read this material carefully before investing.

College can be a valuable investment for the children in your family. Taking advantage of the available college funding options may be a good way to get an early start on your homework.

1) U.S. Census Bureau, 2006

To learn more contact Ms.  Meredith C. Moore, LUTCF, CLTC at 770.587.0281

Procrastination: Your Costly Foe

Getting people to make a decision is the number-one problem financial professionals face when working with their clients, according to a recent poll.¹

Of the three main barriers that most people face when trying to reach their financial goals – taxes, inflation, and procrastination – the first two are practically guaranteed to occur, but the latter has the potential to be the most costly, yet is the easiest to overcome.

Why do people procrastinate when preparing for their financial future? Here’s a look at some common reasons.

Fear of bad decisions – People often procrastinate because they are afraid. “You miss 100 percent of the shots you never take,” hockey great Wayne Gretzky said.

When it comes to making decisions – such as how much to invest, where to invest, and what to do with underperforming investments – there will always be the risk of making wrong choices. But even bad decisions can be more valuable than no decision at all because they present a learning opportunity.

Lack of knowledge – Many people think they don’t know how to pick a suitable investment because this difficult task usually requires education and experience.

One way to avoid this problem is by seeking professional guidance. Although there is no assurance that working with a professional will improve investment results, a financial professional who focuses on your overall financial objectives can help you consider options that could have a substantial effect on your long-term financial situation.

Poor time management – The day-to-day demands of having a career, raising a family, and maintaining a home often take precedence over investment needs. Most people schedule time to get the oil changed, visit the dentist, and get their hair done. Why not then schedule regular appointments to review investment matters and measure the progress made toward financial goals?

Time is one of the key ingredients to financial success, and procrastination can potentially cost you thousands of dollars. Squandering time is one mistake from which many people never recover.

To learn more you can Meredith C. Moore, LUTCF, CLTC at 770.587.0281

Securing Retirement Income in a Turbulent Market: Look Beyond the Numbers

Today’s challenging economic environment has forced many Americans to review their retirement planning goals with a more critical eye. While most core principles about retirement planning still hold true no matter the environment, a few may require some slight modifications. And given the turbulent times we’re facing, who couldn’t use a roadmap to help plan and execute a successful retirement strategy?

When it comes to retirement planning, we all want to know what “the number” is: That magic dollar figures that, when reached, means you’re set in retirement. Sure, knowing your number—and reaching it—is good, but it’s only part of the equation. Mastering the accumulation phase without factoring in the distribution phase could render all your hard work saving toward your number moot.

Instead, you should think about retirement in terms of income needs. The accumulation of, say, $300,000 is not meaningful for living in retirement unless you can translate that figure into a yearly or monthly income stream. You need to be able to pay your monthly food, rent and utility bills, as well as health-care expenses—and have enough left over to live the way you want to live in retirement.

When you consider your retirement income needs, make sure you also factor in that some of your assets have a built-in tax liability. In other words, view your retirement assets with a “tax lens” on so you can see their true economic value. You can’t pay your rent or utility bills with before-tax dollars, so it’s important to understand what you’ll be left with after taxes before concluding you’re saving enough.

Longevity risk and investment risk are other items the number approach does not consider. So to use the same example, you’ve reached your $300,000 number, but how do you know that a sufficient amount will be there 20 years later? If the assets decline to $200,000 in the next year, what does that mean for your future? Are there ways to manage these longevity and investment risks? By translating the number into an income stream, you can better see what a decline in asset value will mean to the longevity of your assets.

The message here is that retirement planning should be done considering income needs. If you base it purely on accumulation, or reaching “your number,” you won’t adequately define your retirement planning goals or manage retirement planning risks. By choosing strategies that mitigate the risks of poor investment return or of outliving your assets, you will substantially reduce your plan’s risk of failure.

This article provides general information for the subject matter covered.  It is not intended to render legal or tax advice.  An individual’s particular circumstances should be discussed with a personal tax or legal advisor. The Prudential Insurance Company of America, 751 Broad Street, Newark, NJ  07102-3777

Provided courtesy of Cornerstone Financial Partners, LLC.   For more information, contact  Richard L. McDonald, Tim Thornberry, ChFC or John Winters, MBA, CLTC, who offer investment advisory services through Prudential Financial Planning Services, a division of Pruco Securities, LLC.  They can be reached at 770-730-6100. Cornerstone Financial Partners, LLC is not affiliated with Pruco. 

Social Security: Sooner or Later?

In a recent survey, 60 percent of workers aged 55 and older gave an incorrect answer when asked the age at which they will become eligible for full Social Security benefits.¹

Not only is it important for you to know when you become eligible, it’s also important to understand the implications of taking benefits early, at full retirement age, or later.

Under current rules, individuals born in 1937 or earlier qualify for full Social Security benefits at age 65. The age for full benefits ratchets up for those born between 1938 and 1942. Full-benefit age then rises to 66 for those born between 1943 and 1954, and it increases incrementally for those born between 1955 and 1959. Individuals born in 1960 or later will qualify for full benefits at age 67.²

People who retire before reaching their “full retirement age” can choose to take a reduced Social Security benefit starting at age 62 or can delay benefits up to age 70 and receive a higher payout. Before deciding which option is appropriate for you, consider the following.

· If you choose to delay benefits, you’ll have to rely on your savings for income during the early years of your retirement. This could deplete your portfolio and reduce your returns in later years.

· If you are in good health and have family members who lived well into their 80s and 90s, delaying benefits may provide you with a greater lifetime Social Security benefit. If you’re in poor health or have a history of illness in your family, it might be wise to take benefits early.

These are just some of the factors to consider when determining when to start taking Social Security benefits. Call so we can discuss the timing that is appropriate for you.

1) Employee Benefit Research Institute, 2006
2) Social Security Administration, 2006

To conatct Ms Meredith C. Moore, LUTCF, CLTC call 770.587.0281

How Life Insurance Fits into your Estate Plan

Even with reduced estate tax rates and higher exclusion levels, Americans could still be on the hook for billions of dollars in estate taxes over the coming years. More than half a million estate tax returns were projected to be filed with the IRS in calendar years 2004 to 2010.

Fortunately, there are strategies to help protect the legacy you intend to leave your heirs. One popular method uses life insurance to complement your estate plan and possible help offset your estate tax liability.

Set Up a Life Insurance Trust

The death benefit from a life insurance policy is not subject to federal income taxes. But if you are the policy owner and the death benefit is large enough to push the value of your estate over the applicable exemption amount ($1.5 million in 2004 and 2005), some of your estate could be taxed (maximum 47 percent rate in 2005).

If you set up a properly structured irrevocable life insurance trust to purchase your life insurance policy and pay the premiums, the death benefit will be paid to the trust and will not be considered part of your estate. You can fund the trust with “present interest gifts” of cash each year. The trustee appointed when the trust is drafted can use the cash to pay the policy premiums, and eventually will distribute any proceeds according to the terms of the trust.

The proceeds from a policy held in an irrevocable life insurance trust may also help protect your heirs from being forced to raise cash to pay any other taxes that your estate might incur.This may prevent them from having to sell assets such as a home or business.

But be careful. An irrevocable trust cannot be changed after you finalize the terms of the trust.

Setting up an irrevocable life insurance trust to hold your life insurance policies could help protect your heirs from having to pay estate taxes on your legacy. That’s one good reason to carefully consider the role of life insurance in your estate plan.

1)      Internal Revenue Service, 2003

2)      The cost and availability of life insurance depend on such factors as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved.

3)      The use of these approaches can involve a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional before implementing such strategies.

Meredith C. Moore is a Registered Representative offering securities through NYLIFE Securities Inc., Member NASD/SIPC.  (404) 459- 2000.  Financial Advisor offering investment Advisory services through Eagle Strategies Corp., A registered Investment Advisor. Moore and Associates Wealth Management is not owned or operated by NYLIFE Securities Inc. or its affiliates.

Retirement Plan Sponsors: Could Your 401(k) Benefit from a Roth Feature?

Retirement plan sponsors have a dizzying array of options available to them as they attempt to create a meaningful benefits package for their participants.  One optional feature that may be well worth considering is the Roth 401(k).  A Roth 401(k) combines features of a traditional 401(k) with those of a Roth IRA.  Like the traditional 401(k), the Roth 401(k) allows participants to make contributions via salary deferrals.  However, like a Roth IRA, contributions are made on an after-tax basis and participants may take tax-free distributions at retirement, as long as certain holding requirements are met.  The Roth 401(k) was authorized under the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) and the IRS issued final regulations for Roth 401(k) plans, effective January 3, 2006.  The Pension Protection Act of 2006 (“PPA”) made the Roth 401(k) permanent by withdrawing the sunset provision that would have eliminated the Roth 401(k) feature by 2011. If interested, plan sponsors have the ability to amend their existing traditional 401(k) plan to offer Roth 401(k) accounts as an additional option for participants.

Plan Requirements An existing traditional 401(k) plan must make a formal amendment to the plan’s documents to allow explicitly for designated Roth 401(k) contributions.  Operationally, Roth 401(k) contributions and earnings are maintained in a separate account from the traditional 401(k) contributions and earnings.  Plan participants must make an election for a portion or all of their salary deferral contributions to be treated as a contribution to the Roth 401(k) account.

Contributions Unlike contributions to a traditional 401(k) plan that are made with pre-tax dollars, contributions to a Roth 401(k) plan are made on an after-tax basis. The maximum contribution amount to a Roth 401(k) account is the same maximum as in a traditional 401(k).  For the 2009 tax year, federal laws permit a maximum annual contribution of $16,500 ($22,000 for participants age 50 and older), although employers may impose a lower limit.  A plan participant may make any combination of Roth and/or traditional 401(k) contributions up to that limit.  Employee Roth contributions are eligible for an employer match, but all matching dollars are allocated to a pre-tax account and are not made as additions to the Roth “account”.  Also, any forfeiture amounts credited to a plan participant are added to the traditional 401(k) account rather than the Roth 401(k) account.

Tax-free Distributions Like the assets in the traditional 401(k), Roth 401(k) assets accumulate tax-free.  However, unlike the traditional 401(k), qualified distributions may be taken tax- and penalty-free from the Roth 401(k) account. Qualification requires that withdrawals are made after the account holder has attained age 59 ½ (or in the event of death or disability) and that a minimum of five years has elapsed from January 1 of the year of the first contribution to the Roth 401(k) account.  If both of these requirements are met, the distributions from the Roth 401(k) account will be tax- and penalty-free.  Non-qualified distributions (taken prior to satisfying the qualification requirements) of any investment earnings will be taxable and both contributed amounts and any investment earnings may be subject to the 10% early withdrawal penalty.

Rollovers After the participant has separated from service, distributions from the Roth 401(k) account may be rolled over into another Roth 401(k) or Roth 403(b) or to a Roth IRA.  It is important to note, regarding the 5-year holding period, that while moneys transferred from one Roth 401(k) to another Roth 401(k) carry forward the original holding period start date, distributions rolled into a Roth IRA do not – the five year rule applicable to the Roth IRA will restart as of the date amounts are rolled over from the Roth 401(k).  In some cases this may not present a problem because the rules for Roth IRAs allow the IRA owner to withdraw his or her “basis” (i.e., the after-tax amount originally contributed to the Roth 401(k)) tax-free, even in the event of a nonqualified distribution.  In the case of a rollover of a qualified distribution, the entire amount of the rollover becomes basis in the Roth IRA and can, therefore, be withdrawn tax-free.

No Eligibility Requirements Based on Income Limits Any employee eligible to participate in the traditional 401(k) is likewise eligible for the Roth 401(k).  Unlike Roth IRAs where single individuals with more than $110,000 in adjusted gross income (married couples who have more than $160,000 in adjusted gross income) are ineligible for contributions, there are no income limitations on participating in the Roth 401(k).  For some plan participants, this fact alone may make participation in the Roth 401(k) more attractive; if they are ineligible to participate in a Roth IRA, the Roth 401(k) may be their only option to save for tax-free distributions.

Required Minimum Distributions Required Minimum Distributions (“RMD”) are generally required to be taken annually from assets held in a retirement account, starting when participants reach age 70 ½.  One exception to this rule is the Roth IRA, which does not require RMDs.  However, the Roth 401(k) account does not share in this exception – generally, RMDs must be taken annually as long as there are assets held in the Roth 401(k) account. If the Roth 401(k) holder rolls his/her Roth 401(k) assets to a Roth IRA after separation from service, the RMD rules will not apply (however, the five year holding period for those assets will restart).

Participant Choice Your plan participants may find making the traditional versus Roth 401(k) decision difficult.  Unfortunately, there is no easy answer.  Each individual must attempt to analyze the value of receiving a current income-tax deduction when contributing to a traditional 401(k) versus the benefit of contributing to a Roth 401(k) and having the potential for no taxation on future distributions from the plan. Part of the decision hinges on whether personal income tax rates will rise or fall in the future – not an easy forecast to make.

Many plan participants may elect to split contributions between their traditional 401(k) and a Roth account.  If an employee qualifies for a Roth IRA, he or she can make after-tax contributions to the Roth and pre-tax contributions to the traditional 401(k).  If not, then the plan participant can split contributions between the traditional and Roth 401(k) options.

Implementing the Roth 401(k) If you decide that a Roth 401(k) plan may be appropriate for your business, you should speak with your current plan provider about implementing this feature for your plan.

Jeff Shoup is a Financial Advisor at Morgan Stanley Smith Barney located in Atlanta, GA and may be reached at 404-842-2236.

Morgan Stanley Smith Barney LLC and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law.   Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.  © 2009 Morgan Stanley Smith Barney LLC.  Member SIPC.

Virtual/Part-Time Chief Financial Officer for Your Rapidly Growing Metro Atlanta Business 

A CPA who is well versed in Business Issues can be much more than just a tax return preparer. If you are a business owner, run and do not walk to the nearest and best CPA you can find. Utilizing the services of a CPA with a divergent track able and proven history of success is essential to long-term success as an entrepreneur in Atlanta and throughout America. Below are just a few of the items a CPA can do to help you with more than just your tax returns. 

-Procuring Unanticipated Tax Refunds/Relief from both the IRS and Georgia for previously assessed taxes. We have even received checks back from the IRS for previously paid monies. Have saved individual clients from tens of thousands of dollars to well over “six figures.” A history of success in setting up Installment Plans, the acceptance of IRS Offer in Compromise, Penalty Abatement, Stopping of Garnishments & Levies. Contributing to cost, operational, and tax efficiencies saving clients millions of dollars. 

-Understanding of shareholder issues and the design and implementation of shareholder agreements to both be fair to the individual shareholder as well as beneficial to the majority owner. Care taken to ensure that both the operational as well as financial considerations of a Shareholder Agreement are carefully contemplated to ensure smooth business operations despite changes in key personnel 

-Getting  financing for owner occupied properties, lines of credit and leasing of equipment. Assisting with Determining needs for capital and lending sources before needs become acute. 

-Amending and correcting prior corporate and personal income tax returns claiming previously missed deductions for refunds not previously aware of, that were legally available. 

-Converting many and numerous clients from Proprietorships, C Corporations, and LLC’s saving clients thousands of dollars annually and many tens of thousands (the highest being $80,000) of dollars in one year alone. Tax Elections to convert LLC’s and C Corporations to S Corporations thereby legally avoiding double taxation and earned income assessments for FICA/Medicaid taxes, as long as IRS reasonable compensation statues are followed. 

-Working as a consultant/adviser with your Tax Attorney regarding estate planning, gifting and strategic business issues. Working as a strategic team to save one client over $400,000 and another $1,500000 plus. Often it is not what you don’t know that can cost you greatly when settling up with Uncle Sam. 

-Obtaining refunds from both the IRS and state for monies clients did not know they were legally entitled to, ranging from missed tax deductions, entity selection issues, and timely filing of returns reflecting appropriate exemptions, status, elections and deductions.

 -Working with financial advisers to help clients set up qualified/”deductible” retirement plans, education funds, rainy day money, second homes and planning for that “nest egg” readying your personal home finances for retirement. 

WWJD…What Would Jesus do if He Was a CPA. I think he would love to serve those who are his clients making his customers his friends and seeking to better the whole of a business rather than just keeping their filings current. 

John Dillard is an Christian Speaker/Author and Certified Public Accountant. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11′s: Job’s Journey or call John Dillard CPA today at 770.814.9304

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping. 

Serving Barrow, Bartow, Carroll, Cherokee, Clayton, Coweta,  Douglas, Fayette, Forsyth, Fulton, Gwinnett, Henry, Newton, Paulding, Pickens, Rockdale, Walton, Barrow, Bartow, Carroll, Henry, Newton, Bartow, Walton, Rockdale, Barrow, Spalding, Coweta, Dawson, Douglas, Fayette, Newton, Paulding, Spalding, Walton, Henry, Paulding, Douglas, Coweta, Canton, Covington, Douglasville, Druid Hills, East Point, Forest Park, Griffin, Lithonia, Mableton, McDonough, Milton, Mountain Park, Newnan, Powder Springs, Stockbridge, Union City, Villa Rica, Winder, Woodstock,  Smyrna, Sandy Springs, Marietta, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Gwinnett County, North Fulton County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Milton, Norcross, Snellville, Roswell, Buford, Cumming, Grayson, Lake Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, Dunwoody, Gainesville, Decatur, Atlanta GA, Gwinnett County, North Fulton County, Cherokee County, DeKalb County, Hall County, Clayton County, Cobb County, Forsyth County, Hart County, Jefferson County, Duluth, Atlanta, Alpharetta, Johns Creek, Lawrenceville, Marietta, Milton, Norcross, Snellville, Roswell, Buford, Smyrna, Marietta, Cumming, Grayson, Hartwell, Suwanee, Sugar Hill, Loganville, Lilburn, East Point, Gainesville, Snellville, Buckhead, Buford, Peachtree City, Dunwoody, Kennesaw, Decatur, Conyers, Stone Mountain, Decatur. Sandy Springs, Peachtree City, Douglasville, Newnan, Griffin, Woodstock, Carrollton, Forest Park, Canton, College Park, Cartersville, McDonough, Riverdale, Fayetteville, Covington, Stockbridge, Conyers, Clarkston, Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Coweta, Dawson, Douglas, Fayette,

Repenting and Turning…Taking Christianity Into the World 

Recently I received the attached letter from a taxpayer looking to address their unfiled and unpaid back taxes. The fear and the sin is not in the repenting but from not doing so. Our faith is centered and based upon forgiveness to all who honestly seek it and turn from their past and look to live in the light of Jesus Christ. The below highlighted paragraph is the letter received and the next several paragraphs my response. Believers who are seeking to better themselves and to walk closer with Christ need our support and our prayer and not our judgments and condemnations. Look at those around you in your family, work, school, neighborhood and church whom you can lovingly guide back to our Lord and Savior. 

I am an embarrassed Christian realizing I have been living a lie by not filing or paying taxes on my business for the past several years. I need help so that I can look myself in the mirror in the morning and remove that barrier I have placed between me and my savior Jesus Christ. I don’t know where to begin, what it will cost or who to turn to. I hope you can help. 

Thanks for visiting www.HisCPA.com Yes, I can help. There is no embarrassment if getting help, but only in continuing to hide. 

To get started we will need to do the oldest return first. Might I suggest we meet to pull your information together ASAP. I suggest you use the checklist on the contact page of my web-site to pull your data so that I might prepare your business and personal returns. 

FYI, we can also look to convert your LLC to an S Corporation for tax purposes. Fees will depend largely upon the complexity and organization of your business records. When we meet I will be happy to go over based upon yours. Fee-wise we strive to be in the middle, while quality-wise we strive to be second to no one. 

John Dillard is an Christian Speaker/Author and Certified Public Accountant. To See how he takes Christ along with him to work visit http://www.hiscpa.com/ and for his latest book Overcoming Life’s 9/11′s: Job’s Journey or call John Dillard CPA today at 770.814.9304

 Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!  

We advise clients on: IRS representation, Offer in Compromise, Tax Problems, Incorporation in Georgia, Corporate and Personal Income Tax Returns, Part-time CFO, Virtual Controller, Business Planning, Offer in Compromise, Back Taxes, Bookkeeping.

The Journey to Retirement

With summer here many of us are planning our summer get away.   We take a lot of time to make sure that we get where we want to go and are able to enjoy the things we look forward to all year.  We work hard all year and deserve to have a nice vacation.   Planning is essential to being sure that our vacation is what we want it to be.  Planning for your retirement is also very essential to insuring that you reach your goals and dreams in retirement.   Unfortunately, many people never take the time to prepare for retirement.  We can think of retirement as 20 to 30 years of unemployment.  So we must have a plan to be sure that we can fund our dreams for retirement.  Imagine for a moment that you are 70 years old.  What do you want to be doing?  Is it spending time with your grandchildren, family and friends?  Is your dream to travel the world or to work at a favorite charity?  Whatever your dreams may be you have to prepare all along the way for the journey.  Unfortunately many people spend more time planning their yearly vacation than they do the journey to retirement.

                                          Planning:  The key to success.

In life, we pass through several phases, each with different requirements.  For example, the financial needs of a young married couple are not the same as those of a retired couple.  That is why continuous long term planning is essential.  Typically, there are three basic financial steps most people take in life.  These include:

1.      Wealth Accumulation – the building of a solid, diversified financial foundation from which to expand over time.  During this phase, allocation of money for a home, investments, life insurance and educational expenses is coordinated with tax planning strategies to ensure that current and future income is utilized effectively.

2.      Wealth Conservation – the inclusion or a variety of investment strategies and further diversification, designed to preserve and grow assets to help ensure adequate funds for current living expenses and future retirement needs.

3.      Wealth Distribution – the proper allocation of assets to heirs.  Good estate planning should provide for the orderly transfer of assets while avoiding unnecessary tax burdens.

In addition to the complexities and changing priorities that occur over a lifetime, fluctuating economic conditions, taxes and inheritance laws also affect a financial plan.  A qualified financial advisor has the expertise to thoughtfully design a plan with your circumstances in mind, helping you develop a plan for a long-term financial strategy for you to reach your individual goals and dreams.   Take the time today to develop your personal plan for the journey to retirement.  Robin can be reached at 770-887-2772, or by email at rgrier@harborfs.com.

This material is not intended to replace the advice of a qualified attorney, tax adviser, investment professional, or insurance agent. Before making any financial commitment regarding the issues discussed here consult with the appropriate professional adviser.

Securities offered through Harbor Financial Services, LLC Member NASD/SIPC,     Clearing Raymond James & Associates,   Robin Grier Financial Services, Inc is not an affiliate or Subsidiary of Harbor