Do a Quarterly Financial Review

470480e1gdwufwtHave you met with a professional and done a financial review lately? Every quarter I like to meet with my clients and go over any changes that have occurred in their lives. In many cases, the meetings give me the opportunity to find out what adjustments need to be made in their financial lives.

Life Happens

If there’s been a promotion, we may be able to increase the amount that is set aside for a rainy day or retirement. If there’s been a marriage or new birth, we need to make sure that family members have the right protection. If clients are no longer happy with their job, we need to map out a plan to find a new job or start a new business. Whatever the changes are, there’s a very good chance that my client’s financial life has been affected. I need to know that so we can tweak our prior plan.

Benefits of a Review

One of the major benefits that results from this quarterly review is that it helps my client feel comfortable letting me know what new things are going on in their lives. How? Some people may feel that they’re interrupting advisors. Scheduling a quarterly review sends a clear message that the changing circumstances are important. It also keeps the lines of communication open for events that happen between meetings.

One of the other benefits resulting from the meetings is referrals. Meaning, I get referrals for my business and my clients help those close to them. How? My clients have family, friends, associates and co-workers that need financial advice. Keeping the lines of communication open lets them know that they have a go to person in their financial life. Why not help others have that same peace of mind?

So if you’re working with an advisor, try to meet with them on a quarterly basis to go over what changes have occurred in your life and see how that can impact your financial life. Remember, the meeting may last a few minutes or hours but the impact can last a lifetime.

For more on TaxAssurances, check out our reviews, photos and links on Yelp.

Teaching Children the Value of Hard Work

21499q0bflrr39zHard work and doing a good job are valued at every level of society. Whether the work is done by a teacher’s assistant that makes $17,000 a year or the leader of a multibillion dollar data storage company, hard work is recognized as playing an important role in everyday life.

Wealth Requires Hard Work

Many people make the mistake of thinking that if someone starts off with a silver spoon in their mouth they’re going to be on easy street and won’t have to work hard. Granted it’s not the same as starting off as the single child to a lazy parent. However, the great equalizer over time is a dedication to hard work.

This is demonstrated in the fact that roughly 80% of millionaires are first generation wealthy. By contrast, lottery winners in many cases no longer have the money they won after 5 or 10 years. Why? They believed they no longer had to work to keep up with the new expenses created by their wealth.

Hard Work with Chores

The hard work ethic is something that parents in all income brackets can give to their children when they’re young. That process can start when parents give chores to their children to do around the house. Not only do the chores show young people how to work hard, but they also show them how to be accountable and responsible. That responsibility means that they are answerable not only for themselves but other family members as well. They are depended on and that carries a valuable lesson throughout their lives.

Hard Work after School

As they get older, the lessons of hard work can be learned in the work children do outside of their normal school work. So whether it’s a part time job after school or a school club they are part of, the parent by allowing their child to participate supplements their school education.

And obviously when they graduate from either high school or college they are tasked with the responsibility of working. No matter where they go it’s a valuable lesson they carry forward with them into the future.

So if you’re a parent wondering how you can instill a work ethic in your child, you can always start by letting them take on that responsibility in the home. Dishes, moping dusting, mowing the lawn are all great ways to get them on the road to learning the value of a hard day’s work. Again, dedication to hard work can be the great equalizer in making sure that young people are good contributors to society.

For more on TaxAssurances, check out our reviews, photos and links on Yelp.

Alleviate Audit Anxiety

IRS4Internal Revenue Service tax audits can be complicated and time-consuming, but the right tax preparation can make them less stressful. Taxpayers facing an audit should remember these five things:

1. Seek Professional Help

Upon receiving an IRS audit notification, taxpayers should meet with their tax professional to discuss what the audit notification means, what is being requested and what records are needed.
2. Seek Representation

Correspondence audits are handled via mail, field audits have auditors visit a home or business in question, and office audits require taxpayers to report to an IRS office. Depending on the type of audit and individual situation, taxpayers may represent themselves or seek assistance from a certified public accountant, lawyer or enrolled agent. Enrolled agents are federally authorized tax practitioners empowered to represent taxpayers before the IRS.

3. Organize

Ideally, taxpayers should keep complete, organized financial records for the past seven years. Gather all receipts, checks and other records relevant to the audit. Be thorough; having the records the IRS requests readily available will help the audit go more smoothly.

4. Be Concise

Taxpayers should only give the auditor copies of documents the IRS specifically requests and answer all questions honestly. Do not volunteer information that is not requested.

5. Appeal

If taxpayers disagree with auditors’ findings, they can file an appeal with the IRS. Appeal options include meeting with the auditor’s supervisor, or filing an administrative appeal to the U.S. Tax Court, U.S. Claims Court or the local U.S. District Court.
Of course, the best audit is the one that doesn’t happen. To lessen the likelihood of being audited, taxpayers should report all income and only claim credits and deductions they are entitled.

For more on TaxAssurances, check out our reviews, photos and links on Yelp.