Accounting News and Notes

Healthcare Planning: Pratical Considerations for a “Graying” America

Modern medicine has made great advances, giving a child born in the U.S. in 2000 an average life expectancy nearly 30 years longer than one born in 1900.¹ But healthcare has no cure for old age. 

Today, more than 36 million Americans are 65 years of age or older, making up approximately 12% of the total population. And by the year 2030, that number could grow to 71 million, a staggering 20% of the population. ² Yet as this tidal wave of Baby Boomers prepares to enter retirement, both employers and the government are cutting back on low-cost healthcare benefits.

More and more, responsibility for America’s healthcare price tag is shifting to individuals and families. Medicare faces constant cost pressures, and some people are concerned that the program may eventually become insolvent. Premiums for employer-sponsored insurance have increased 87% cumulatively from 2000-2006, compared to a 20% increase in wages and an 18% increase in overall inflation.³ In addition, employers are moving to limit the benefits and coverage they will offer to current and future retirees. 

With maturing Americans living longer, more vital lives, how will they afford the growing cost of healthcare—especially for situations involving long-term care? While various forms of insurance typically cover routine doctor visits and emergency medical situations sufficiently, coverage for ongoing long-term healthcare needs is often limited and restricted. Paying for long-term care needs can quickly deplete even substantial savings. 

Many Americans are rightfully concerned, and there are indications that rising healthcare costs are hurting their household finances.  Even wealthy individuals view this issue as a major threat to their family’s long-term financial well-being. According to a Citigroup Smith Barney Affluent Investor Poll (May 2006), about seven in ten of those surveyed had concerns about being able to pay the cost of long-term care in their retirement years. 

Whatever form governmental healthcare financing may take in the future, we will all shoulder some part of the costs. Wise planning now can make a great difference in how financially prepared you will be to handle the medical needs of retirement. This series of articles provides a brief introduction to some of the major programs and issues you should consider when planning your healthcare finances—both now and for retirement.  

Employer-Sponsored Health Insurance: The first line of defense

If you belong to an employer-sponsored healthcare program, regardless of your age or health, keep it! The premiums, deductibles, prescription drug and co-pay charges available through a group health plan can be a bargain in comparison to individual health insurance. If you are changing employers, sign up for the new employer’s plan as soon as you join the company (generally within the first 30 days). Many large plans will have no limitations on pre-existing conditions, but that may only apply if you sign up immediately upon becoming an employee. If you wait and do not have proof of existing coverage from another source, additional charges or limitations may apply. 

The government’s COBRA legislation (Consolidated Omnibus Budget Reconciliation Act of 1985) instituted a variety of safeguards for workers and their immediate family members to maintain healthcare coverage if a “qualifying event” occurs. These include death of covered employee; termination or reduction of hours (whether resignation, discharge, layoff, strike, or other cause); divorce, which normally terminates an ex-spouse’s eligibility; or a dependent child reaching an age or status for which coverage is excluded. In 1996, the government added further healthcare coverage and protections under the Health Insurance Portability and Accountability Act. While these are helpful, they generally place a greater burden of cost upon the individual. 

Health Savings Accounts: A new tax-favored strategy for healthcare savings

If you are currently employed, you might consider a Health Savings Account (HSA). The Federal government introduced these accounts in 2004 to help people save for both current and future medical expenses. To qualify, you need to have medical coverage under an HSA-approved high deductible health plan (HDHP). Check with your employer’s benefits department to see if they offer an HDHP alternative, which typically charges lower premiums than the regular group coverage and may, for some, balance out the higher deductible.  If not, you can also contact your state insurance department to find insurance companies qualified to sell these plans in your state of residence. 

There are significant advantages to HSAs. They are triple tax-favored: annual dollars you are allowed to contribute are deductible on your Federal tax return even if you don’t itemize; assets in the account can be invested and the earnings grow tax-free; and withdrawals from the account for qualified medical expenses are also tax-free. HSAs are fully portable, meaning you can keep your account even if you change jobs or medical coverage, become unemployed, move to another state, or change your marital status.  

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.

John Dillard is an Christian Speaker/Author and Certified Public Accountant in Duluth, GA. 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 and a Voice of One: Nehemiah’s Prayer visit http://www.john-dillard.com/ or call John Dillard CPA today at 770.814.9304 (All Rights Reserved) Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it

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

Protecting Yourself from Identity Theft 

No one can doubt the immeasurable benefits of the information revolution. Today, thanks to e-mail and the Internet, many of us are more productive, informed and connected than ever before. Unfortunately, as a result, we are also more vulnerable. The statistics are startling. According to a 2006 survey conducted by The Better Business Bureau and Javelin Strategy and Research, nearly nine million people were victims of identity theft, costing a total of approximately $56.6 billion. 

Understanding Identity Theft

Identity theft can take many forms. It typically occurs when someone uses your name and confidential information—including your social security number, date of birth and mother’s maiden name—to do something you didn’t authorize. Perpetrators may take out a loan, use your credit card, open a new credit card in your name or withdraw money from your account.  

A thief can obtain information about you by stealing your wallet, breaking into your car or home, going through your trash or illegally taking mail out of your mailbox. More sophisticated techniques include hacking into databases and websites, sending out fake e-mails (called “phishing”), buying website addresses similar to those of financial institutions and creating computer “spyware” programs that record your keystrokes. Information has also been stolen from computers, from data mistakenly posted on public websites and illegally copied when credit or debit cards are swiped to pay for a purchase. 

Vigilance Pays

Charges or withdrawals you don’t recognize on statements from your credit card, bank or brokerage firm, failure to receive a new credit card upon expiration or a check that a payee didn’t receive, all point to the possibility that someone may have accessed your account without your knowledge. 

How can you protect your personal information? You can reduce your vulnerability by being vigilant about protecting your personal information, monitoring your financial transactions, using updated computer technology and protecting your credit. Here are some specific steps you may wish to consider: 

Maintain Your Privacy

• Before giving out your date of birth, social security number or driver’s license number, ask why the information is needed.
• Use a good shredder to dispose of anything containing your personal information: account statements, credit card solicitations, checks (both canceled and unused), paycheck stubs and medical records.
• Include only the last four digits of your credit card account on checks when sending a payment to your credit card provider.
• If mail containing a canceled check or financial information has been tampered with, you may want to close the account and open a new one. 

Monitor Financial Communications

• If someone contacts you by phone, letter or e-mail, claiming to be from your financial institution and informs you of unusual account activity or asks questions to verify your identity, don’t provide any information. Call the financial institution’s main number (listed on your account statement or on the back of your card) to ensure that you’re speaking with an authorized representative and report the incident. Be just as circumspect with an e-mail from a financial institution—if you hit “Reply” or go to a website listed in an e-mail, you risk falling into a trap.
• Scrutinize every account statement you receive and make sure you can identify all the transactions. Some thieves will put small charges on your card (some under $1) to see if you catch on before they start making larger purchases.
• Mail and paper are still currently the most common path to identity theft.  If properly used, electronic receipt of statements and electronic bill payment can be safer than some paper-based transactions. 

Use Updated Computer Technology

• If you’re using a computer at home, keep your operating system up to date, set up a firewall and keep your virus protection and spyware detection programs current. If your computer has a feature for Internet use that notifies you if a form you’re submitting is being redirected, be sure that feature is activated.
• When conducting online transactions, look for “https” at the beginning of a website’s address—the “s” indicates that the information was transmitted in encrypted fashion from a secure site.  

Safeguard Your Credit Information

• Consider using one credit card that has a low limit for online purchases.
• Keep copies of your credit cards in a safe place in your house, and carry only the cards you need.
• Cancel and then cut up credit cards you don’t use.
• Take advantage of the free credit report you can get from Equifax, Experian and TransUnion, the three major credit bureaus. You can call 1-877- FACT-ACT (1-877-322-8228) or go to www.annualcreditreport.com. Review the accounts in your name—if you don’t recognize them, contact the credit bureaus immediately.  

How to Respond

Unfortunately, even the most cautious of consumers can still be victimized by identity theft. If it happens to you, here are five steps that can help: 

1.      Call your financial institution immediately and close the compromised account. Ask what they recommend you do next. 

2.      File a complaint with the Federal Trade Commission, 1-877-IDTHEFT
(1-877-438-4338), www.consumer.gov/idtheft. 

3.      Contact the Social Security Administration, which maintains a fraud hotline,
1-800-269-0271, www.ssa.gov/oig/public_fraud_reporting/index.htm. 

4.      Contact the fraud division of one of the three main credit bureaus to consider having a fraud alert put on your file. The credit bureau will then notify the other two bureaus of the fraud: Equifax (1-800-525-6285, www.equifax.com), Experian (1-888-397-3742, www.experian.com) and TransUnion (1-800-680-7289, www.transunion.com). The free 90-day security alert informs creditors that they must contact you before opening a new account or making changes to your existing account.  

5.      You can file a police report and submit a copy to the financial institution affected by the fraud as proof of the crime. 

In working with credit card companies, banks, credit bureaus and law enforcement agencies, the time it takes to recover from identity theft can be extensive. The Javelin/Better Business Survey also found that victims of identity theft spend a high of 40 hours each recovering from the crime. Protecting your information to begin with is certainly the most cost- and time-effective strategy. 

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.

Your retirement savings plan offers you several choices when you decide to change jobs or when you retire.  A distribution is a payout of realized savings and earnings from a 401(k) or other retirement plan. In general, you must begin taking distributions from your account by April 1 of the year following the year in which you turn 70 1/2.  When you leave a company your distribution options may include:  keeping your money in your plan, enacting a direct rollover, or taking a cash distribution. Each option has different consequences.

If you keep your money in your plan, you will no longer be able to make contributions, but you will still maintain control over the investments and your money will continue to grow tax deferred. You could rollover to your new employer’s qualified retirement account without physically receiving any funds.

Similarly, in a direct rollover, you could move your money directly to an IRA. This option allows for you to benefit from the advise of a financial advisor.  A flurry of new investment products, the emergence of foreign investing, the shift from company-funded pension plans to employee-driven retirement plans and uncertainty about Social Security has all contributed to the increased need for qualified financial advice. No matter what your level of investment experience or sophistication, you may benefit from developing a relationship with a financial advisor.  A qualified financial advisor is trained to analyze your personal financial situation and prepare a program designed to help you meet your financial goals and objectives. It might be helpful to think of your financial advisor as a kind of doctor for your financial health.  If you are under 59 at the time of separation from service, a direct rollover may be a good option, as it avoids the penalties associated with a cash distribution from a qualified plan.

Those tempted to take a cash distribution from a qualified plan should consider the taxes and penalties that apply to this type of distribution. You must pay taxes on the money you receive at then-current rates, and if you are under age 59 at the time of separation from service, you may also have to pay a 10% penalty, making this option viable only if the funds are immediately necessary.

Whatever option you choose you will want to think carefully before making any decisions about the money in your retirement plan, as some choices may mean you have to pay more in income taxes on your distribution.  Speak with a tax advisor before picking a distribution election.                            ___________________________________________________________________

                           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 Financial Services, LLC

     Ask any investor about risk and you’ll probably hear that it’s something the investor wants to avoid or at least keep to a minimum.  Like it or not, investment risk is an essential part of any investment decision.  Properly managed, risk can be turned to the investor’s advantage.  What is risk?  The answer depends on whom you ask.  If you ask an investor, particularly an inexperienced investor, you’ll probably hear that risk means that you might permanently lose a portion of the money you invest. 

    To many people, investing (particularly in stocks) is akin to gambling.  These people know the risks associated with playing the lottery, betting on a horse race or dropping a coin in a slot machine.  When you gamble, there’s a small chance you’ll win big and a big chance you’ll lose everything.  That may be true in Las Vegas , but experienced investors know that comparing the investment markets to a gambling casino is a simplistic and unrealistic view of the risks involved in making an investment decision.

    To understand investment risk, investors must accept certain fundamental truths of investing.  First, there is no such thing as a risk-free investment.  Second, investors seeking greater investment rewards must be willing to accept greater risk.  Conversely, if an investor is unwilling to accept a given level of risk, then reward expectations should also be lowered.   Third, the risks an investor faces can vary depending on how long an investor has to achieve his or her investment goals.  Finally, while risk cannot be eliminated, it can be managed through careful planning and following a disciplined investment process.

     Let’s look at risk from different perspectives.  One form of risk that everyone understands is “principal risk.”  That’s the risk that you are exposed to when you purchase an investment (a stock, bond or parcel of real estate) that may suffer a permanent decline in value.  For example, if XYZ Corporation goes bankrupt, its bondholders may only receive pennies on the dollar for their interest-bearing bonds and stockholders may see their investment go to zero.  The risk that an investment could suffer a significant loss in value due to the changing financial fortunes of the underlying enterprise is a risk of virtually all investments.  Only United States government securities and those backed by the federal government (like federally insured certificates of deposit) are presumed to be free of this risk of loss.  We assume that our government will always be able to pay its bills.

     Another risk investors face is “volatility.”  That’s the chance that on any given day, the financial markets might value your investment at a price greater or smaller than it did yesterday.  With some investments, the highs are higher, the lows are lower and the journey between the two is faster.  Common stock prices of large U.S. corporations tend to be more volatile than the prices of short-term government bonds.  Small stocks tend to be more volatile than large stocks.  Some foreign markets are more volatile than the U.S. market.  Almost all investments are subject to the risk of volatility.  Even rock-solid U.S. government bonds and notes fluctuate in value when interest rates move. 

     A risk that many investors ignore is inflation or purchasing power risk.  Inflation is a threat to the long-term health of an investment portfolio.  The relatively low (as compared to the double digit rates of the late ’70s and early ’80s) inflation rates of the recent past are actually in line with the long-term average rates over the last six decades or more.  Over the period of 1926 through today, the price of a dollar’s worth of goods and services has risen eight-fold, which averages out to about 3 percent per year.  Inflation of “only” 3 percent has a corrosive effect on purchasing power over shorter periods as well.  For example, over 25 years (the length of retirement for many people) inflation will rob over half of the purchasing power of every dollar if it continues at “only” 3 percent. 

     The real art of building a successful investment portfolio is balancing and managing risk.  One technique to manage risk is through diversification.  Diversification simply means spreading your assets over many different investments so that no one investment is too large a portion of the whole.  Another technique is to use the differing characteristics of investments to offset some of the risks associated with other investments. 

     For example, short-term government bonds and certificates of deposit offer no risk of principal loss and little or no price volatility.  However, over the long-term they have not been able to keep up with inflation after taxes are deducted.  Keep in mind that it’s not what you make but what you keep that matters.  Further, it’s not just how many dollars you have left after taxes, but what those dollars will buy that matters.

     Common stocks have, historically, provided the growth needed to overcome inflation.  The “problem” has been that short-term price volatility scares some inexperienced investors.  Blending stocks together with bonds and other investments, in just the right proportions, is essential to building a portfolio that minimizes the many risks of investing.

     This process of managing risk, diversifying investments and balancing portfolios is called “asset allocation.”  It is, quite simply, the single most important part of the investment decision-making process.  It is also a process that requires a careful examination of investor goals, investment experience, other sources of income, tax situations and a variety of other factors.  Asset allocation decisions should be made carefully and should not be based on “cookie cutter,” “one size fits all” approaches. 

 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 Financial Services, LLC

Getting “Fire Insurance” for Your Money 

Award Winning CPA Serving Grayson, Lawrenceville, Snellville & Beyond 

I am constantly encouraging homeowners to get “Fire Insurance” for their money. It’s free and all it takes is a little initiative, a little time, a home and a bank. Banks and savings and loans have long helped homeowners finance life’s little surprises by offering a home equity line on their home. This amount is a function of both the equity in your home as well as your credit score. Even though the market for loans is tight and home values are depressed setting up a line with the bank is usually free and will help ensure you have money “when you need it.”

Homeowners routinely spend hundreds of dollars, as well they should, and yet most of us, fortunately, will never have a fire at our home. However, all of us in our lifetime will have several financial challenges in our lifetime for which having a “lifeline” or an equity line will do much to help ensure we can overcome financial setbacks will mitigated damages. Always living within your means and being debt adverse are your best defense to financial challenges but having a drop back position in an equity line will help ensure financial difficulties are not as devastating. 

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 visit http://www.john-dillard.com/ or all 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!  

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, Forsyth, Fulton, Gwinnett, Haralson, Heard, Henry, Jasper, Lamar, Meriwether, Newton, Paulding, Pickens, Pike, Rockdale, Spalding, Walton, 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 and Woodstock

WWJD…What Would Jesus Do if He Was a CPA 

Award Winning CPA Serving Grayson, Lawrenceville, Snellville & Beyond 

We strive to live our lives by a higher standard; not just to live by the world’s but to live by God’s standards. Though I am challenged to be the very best CPA I can be by helping clients keep their tax bills as low as legally possible. However I believe as a CPA and a Believer I am called to a much higher standard in helping clients develop tools and resources to plan for much more than their taxes. A CPA is the best one to begin this process and after a CPA has met with a client and determined much of their financial picture and tax issues, it is time to take the relationship to the next level and to help clients determine a multitude of issues including: 

-Buying Life Insurance. Being sure to have enough life insurance to take care of your family, debts and needed living expenses is essential to ensuring that your entire family and your legacy will not be changed by your passing. 

-Buying Disability Insurance. Though life insurance is for your survivors, disability insurance is for you, in the event of a life threatening illness or injury that leaves you unable to both take care of yourself and to fend for our family. 

-Setting up a Will. If you pass away without a will, then the state will decide what happens to your children and to your assets. A well drafted will enables others to ensure that your last wishes are followed out and adhered to.

 -Setting up a Trust. Frequently taxpayers can use trusts to ensure that their assets and desires are carried out both during and after their lives. Trusts can be set up for a myriad of issues ranging from helping to save estate taxes to leaving your assets to your church or favorite charity. 

-Consideration of Guardianship. I want to know who my children will live with if I pass and even more so if my wife and pass at the same time. My children are gifts from God and I want to ensure that they are loved, protected and encouraged even if I am not around. 

-Estate Planning. For taxpayers who exceed the federal mandated thresh-hold for the payment of estate taxes, proper planning can do much to both limit the tax bill that will otherwise ultimately become due. Also proper planning can be used to ensure that assets such as a business can be passed to heirs without having to sell it to pay the required estate taxes.

 -Setting up a Business Credit Line. Frequently a business credit line will be the difference between a business that succeeds and fails and one that is marginally vs. very profitable. A line of credit can do much to help you get through tough business cycles as well as to take advantage of opportunities in the marketplace and growth opportunities. 

-Procuring an Personal Equity Line on Your Home. An equity line on your home is essentially financial insurance. As your build equity in your home and your credit score, many/most banks will put in an equity line on your home allowing you instant access to emergency funds if ever needed. 

-Investing. Our natural tendency is to buy high and sell low. A well informed and trained adviser can help educate you in the many skills that are available to help ensure that you make prudent investment decisions as well as to plan for retirement.

 -Planning for College/Education Expenses. Planning for college is perhaps one of the most important financial decision you will ever make in your life and the life of your child. Being prepared for college and their expenses will help ensure your financial future and give your children the best chance for initial career success.

-Setting up a Retirement Account for Your Business/Personally. Getting ready for the  “Golden Years” should be a priority for us all. Americans have a tendency to live to the hilt and to ignore the future and nothing could be worse for yourself or those you love.

Though my short term goal for my clients is to save tax dollars, my larger goal is that they have a better life by wise investing and prudent choices. In order for me to accomplish this I have to always remember WWJD…If He Was A CPA. 

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 visit http://www.john-dillard.com/ or all 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!  

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

Ways to Save Money on Health Care in Troubled Times

Whether you buy your healthcare coverage through your employer or independently, you need to look at your coverage the same way cost-cutting entrepreneurs do.  Buying coverage in the future won’t stop at finding the best price – what you pay increasingly will involve how well you personally manage your health. According to a report last year by benefits consultant Watson Wyatt, nearly half (47 percent) of the 453 large U.S. employers currently offer a consumer-directed health plan (CDHP), a high-deductible plan offered with a personal account that can be used to pay a portion of medical expenses not covered under the plan. It’s the same concept as the pairing of a high deductible health plan (HDHP) with a health savings account (HSA). Also, don’t be surprised if your employer or insurer is going to get tougher about you losing weight or quitting smoking.

Here are some ideas to help you take the first step in monitoring these costs:

Change your negative healthcare behavior: Losing weight will not only have immediate health benefits, it will also make your health insurance options and potential out-of-pocket costs more affordable over time. A Stanford University and Rand Corporation study reported that lifetime medical costs related to diabetes, heart disease, high cholesterol, hypertension and stroke among the obese are $10,000 higher than among the non-obese. It added that lifetime medical costs could be reduced by $2,200 to $5,300 following a 10 percent reduction in body weight.   

Know what you’re buying: Whether you buy health insurance through an agent or your employer, insist that they explain exactly what you’re getting for your premium, and where deductibles apply. That way, you’ll have a baseline when you buy your own coverage. If you’re purchasing your own insurance policy, compare the premium savings from a higher deductible plan with your usage pattern of health services. What you save can often cover your high deductible.

Discuss the potential cost of a diagnosis: If your physician diagnoses a condition that requires tests, prescription drugs, a hospital stay or ongoing therapy, ask detailed questions about what you’ll be charged, from the doctor’s bills to ongoing ancillary costs associated with treatment. Ask the doctor or his office manager if discounts can be negotiated through cash payments or other means. You also need to be careful that you’re not being charged a rate for uninsured patients when you are simply going to paying for all or part of the bill to get to your deductible.

Make sure your exact spending is reducing your deductible: Keep a binder or a filing system to monitor how this year’s out-of-pocket spending is reducing your deductible. Also, make sure you understand which procedures are offered through your plan that will be paid even though you haven’t paid up your deductible.

health officials to see if they have online databases on costs for various medical procedures. Also, if there is a support group for your condition, talk to members about what they paid locally for care.

Be smart about emergency and non-emergency health visits: Emergency-room visits tend to cost $300 to $1,000 compared with $150 at an urgent-care center and $35 to $45 at a convenience-care clinic in a drug store or some other location. Make sure the alternatives to emergency room care are acceptable for your illness. Write yourself a note at some point to check out these options in your area so you know what they offer, what their hours are, and under what conditions you’d choose them. In particular, make sure the facility and the provider are in your health plan’s network so whatever you pay out-of-pocket counts toward your deductible.

Talk to a financial advisor about planning for long-term care: If you or a loved one are diagnosed with a chronic illness, that’s a financial issue that requires a plan. As tough as it may be to focus on money issues at a stressful time, make an appointment with a tax or financial professional to discuss options that will safeguard your assets, including Medical Spending Accounts that can backstop out-of-pocket costs on high-deductible policies.

Take advantage of your company’s flexible spending account: A flexible spending account is a separate, tax-advantaged account where you deposit funds to pay for medical expenses not paid by your insurance. You need to check what your particular company’s FSA allows you to stockpile funds for, and you will need to estimate carefully because you’ll have to spend out these funds by a particular annual date or lose the remainder.  It’s also good to discuss how you’re allocating those expenses with a financial adviser.

This column is produced by the Financial Planning Association, the membership organization for the financial planning community, and is provided by Tim Madison, CFP, ChFC, CASL, who can be reached at 770-777-8979.

Duluth, GA/Gwinnett County CPA on Estate Planning  

Atlanta Estate Planning

A CPA should not only be your best “financial friend” he should also be a source of providing other financial advisers who can assist and advice in many other varied sections of longer-term financial advising, such as estate planning. Though many of us, even though as Believers we know where we are going, there is frequently a lack of interest or desire to planning for our life’s end and indeed our passing. Estate planning issues cover a myriad of issues, many of which I maintain a broad general understanding, however for the wise and judicious use and application of Estate Planning, Wills and Trusts I would defer to the skill and wisdom of a Tax Attorney with decades of practical and insightful experience. To this end, I often assist in these meetings between the Tax Attorney and my client to serve as a go between and to ensure that client’s wishes are carried out in a thoughtful and insightful manner. 

Frequently because of the many nuances and variables discussed in such a meeting, it is easy to miss the “meat of the presentation.” Frequently taxpayers who have a net worth over the threshold of having to pay estate taxes, fail to consider that making just a few simple changes will dramatically affect the ultimate disposition of the net worth of the estate and their minor children potentially receiving monies well before the client would have preferred. If an attorney writes a will, failing to consider these items, there could not substantive misdirection of monies, overpayment of taxes, and giving substantive monies to the control of minors, when they are not emotionally mature enough to handle resulting in not only the loss of the monies, but to the failure to adequately guide and direct the children. One such case involved a situation where if the husband had pre-deceased the wife, the ultimate estate tax on her death will be $1,575,000 more than it had to be with some fairly basic estate tax planning (adding a Credit Shelter Trust to their Will). However if the wife pre-deceases her husband, without a Will, he (the husband) would inherit 1/3 of her estate and the children would each inherit1/6 of her estate outright, a result that would be problematic because it might not be consistent with their wishes and would make their minor children suddenly flush with cash.  Reviewing the ownership of assets and ensuring that you can fully utilize the estate tax free amount regardless of order of death is an essential part of the estate planning process. 

Estate planning is, by definition, an unselfish exercise for the benefit of the survivors.  The estate tax is largely avoidable through proper planning over time; failure to plan can give the tax authorities a much bigger piece of your estate than you intend. 

CPA: Never Underestimate the Value 

John Dillard is a Christian Speaker/Author and Certified Public Accountant (All Rights Reserved). To See how he takes Christ along with him to work visit http://www.hiscpa.com/ (An Atlanta CPA firm) and for his latest book Overcoming Life’s 9/11’s: Job’s Journey and to learn about his ministry visit http://www.john-dillard.com/  To contact John Dillard CPA (Atlanta Christian Author/Speaker) today call 770. 814.9304 proudly serving Duluth, GA, Gwinnett County and Beyond.

“Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!” What, then, shall we say in response to this? If God is for us, who can be against us? Romans 8:31 Why are these verses here? Learn how HIS CPA became a Christian Accounting firm visit http://www.hiscpa.com/christian-CPA.html

Initial Questions to Ask When Interviewing an Financial  Advisor

For those who have never hired a Financial Advisor it can be a daunting task. These core basic questions will do much to enlighten and empower you in making a wise and prudent decision. At the center of these questions is a desire to discover an advisors technical competency, to check their references and to see if you can establish a dialogue. For if you advisor is technically brilliant but cannot communicate you will have much difficulty as well as conversely if they are a good communicator but lack the skills and experience required you are apt to run into problems. These questions can also be easily adaptable to looking for a Certified Public Accountant or Lawyer.

• What services do you provide?
  
  
• How do you provide these services?
  
  
• How do you get paid relative to each of these services?
  
  
• How long have you been in the business?
  
  
• How long have you been with your current firm?
  
  
• How many firms have you worked with?
  
  
• Why did you change firms?
  
  
• Did you get paid to change firms?
  
  
• Did you get paid to stay at your current firm?
  
  
• What is your educational background?
  
  
• What licenses and certifications do you have?
  
  
• Have you ever been disciplined by the NASD or other regulatory agencies?
  
  
• Can I have a copy of your NASD form?
  
  
• Do you prepare comprehensive financial plans?
  
  
• How long does it take to complete a comprehensive financial plan?
  
  
• What do you charge for this comprehensive financial plan?
  
  
• How many clients do you have?
  
  
• How much money do you manage?
  
  
• What type of clients do you have?
  
  
• How often will you contact me and how?
  
  
• How will you determine my risk tolerance?
  
  
• What type of due-diligence do you conduct to ensure my money is well-protected.
  
  
• How is my money going to be protected?
• How often will you meet with me to review my portfolio?
  
  
• Will you be handling my account personally?
  
  
• Will you be executing my financial plan personally?
  
  
• Will you keep me informed with every investment decision you make on my behalf?
  
  
• Will you be organizing, coordinating, and keeping all financial documents up-to-date ?
  
  
• How many full-time associates do you have assisting in providing the services you described?
  
  
• How long have these associates been working with you?
  
  
• What is the role of each of your associates?

• Can you outline your service model?
  
  
• What are your office hours?
  
  
• Do you have names of clients, CPAs, and attorneys you have worked with who I can call?

You can contact Ms. Meredith of Moore & Associates Wealth Management in Roswell, GA at 770.587.0281 or visit www.MooreWealthMgmt.com