KC Money-and-Taxes

February 29, 2012

Money & Taxes 2012 Kane County

CHRONICLE

Kane County Chronicle / KCChronicle.com • Wednesday, February 29, 2012

| MONEY & TAXES

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Estate planning?

Make the most of your money (ARA) - When it comes to financial planning, making smart investments and planning for the future aren’t your only fiduciary considerations. You also want to be sure you’re getting the most out of the money you spend on the process.

Estate planning is an important component of your overall financial plan, regardless of your age, income or size of your estate. If you own property and have heirs, you need to think about estate planning. To do the job well, you’ll need the help of a team of professional accredited estate planners such as a certified public accountant, a lawyer, insurance professionals and financial planners, and trust officers.

Professional fees can add up if you don’t manage time well, so it’s important to prepare for every meeting with your estate planning team

members. It’s a great time to think about how you can maximize the value of the time you spend with your estate planning team.

The NAEPC offers this advice on how to have productive working relationships with your planners: • Before meeting with a professional, gather all your personal and financial information, make lists of your current financial advisers, assets and liabilities, collect financial documents such as retirement plans, life insurance policies, property deeds, partnership and business agreements and your income tax returns for the past two years.

• Write out your own personal goals, concerns and ideas. Identify people whom you would like to have inherit your property when you die, and specify what you would like to leave each. Make note of any spe-

cial needs or situations, such as a dependent child or a spouse whose disability will prevent him or her from working. Identify people you would like to name as guardian for minor children, as well as an executor for your will.

• Seek out the right professionals. You’ll find any number of people who profess to be estate planners, but NAEPC designees complete rigorous educational requirements for estate planning and adhere to a strict code of ethics. To find an accredited estate planner, visit the association’s website, www.estateplanninganswers. org.

• Bring your notes and all the information you’ve gathered with you to your meeting. Being prepared can save you hours of billable time.

Discuss your overall goals and find out how each professional can help

you meet them. Ask for a list of the specific documents he or she will prepare for you.

• Realize that estate planning is an ongoing process. You should update your estate plan every few years or any time you experience a major life change, such as the birth of a child, marriage, divorce or death of a spouse or parent.

• Finally, once you’ve prepared for your loved ones’ financial future, don’t forget to take care of their emotional well-being. Estate plan documents are dry and technical, and they won’t communicate your emotions to those you leave behind. Consider writing a letter to your spouse and family expressing your final thoughts and feelings. Keep the letter with key financial paperwork and make sure your loved ones know where to locate these items.

Working with you we will build a comprehensive plan that pulls together all of the elements of your financial life.

Call us today and let us help you put all of the pieces in place.

IF AN ARMY OF BANKERS, BROKERS, ACCOUNTANTS, INSURANCE AGENTS AND ADVISORS CAN’T BRING YOUR FINANCES TOGETHER, PERHAPS WHAT YOU NEED IS A GENERAL.

AHC ADVISORS, INC. 303 N Second Street • St. Charles, IL 630-762-8185 • www.ahcadvisors.com

We Listen. We Plan. We Build.

Craig Larsen, CFP®

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your current financial situation and make goals for where you want to be at the end of 2012,” says Heather Battison, TransUnion’s senior director responsible for consumer education.

So what can you do to ensure financial success in the coming year?

TransUnion offers five tips for planning and achieving your goals: • Check your credit reports every three months. Monitoring your credit can help you recognize bad financial habits, like making late payments, which can affect credit score. Regularly checking your credit report is also a way to protect yourself against identity theft. If you ever run into a situation where you suspect identity theft, TransUnion provides a guide for what to do next.

• Check for accuracy. Make sure the information on your credit reports

is up-to-date and reflects your current credit history. Give yourself at least 30 days to resolve any issues. Online dispute forms are available at TransUnion.com.

• Know your score. Your credit score helps determine your interest rates on credit purchases. A healthier credit score can help you receive the best interest rate, ultimately putting more money in your pocket as your work toward achieving your financial goals.

• Create a monthly spending plan and stick to it. Breaking down your spending habits into smaller and more manageable increments can help you achieve your financial goals.

Through breaking it down by month, you can also set aside a fixed amount each month to deal with unexpected

financial emergencies that may come up later in the year. If you don’t have to spend this reserve fund, you can treat it as a year-end bonus, or, even better put it toward next year’s goals.

• Take additional measures to minimize your exposure to identity theft. In addition to frequently checking your credit, you can sign up for a credit monitoring service that will alert you whenever something changes in your report.

Setting yourself up for a successful financial year means developing plans now that you can execute as the year goes on. Additional planning tools to help you understand your credit information, manage your debt load, protect your identity and help you achieve your financial goals can be found TransUnion.com.

Michael Walschot ‘‘Your Personal CFO’’ • Retirement Planning • Financial Planning • 401 (k) Analysis • College Savings Plans

• IRA’s/Mutual Funds/Annuities • Tax Planning • Estate Planning • Independent Investment Advice

(630) 778-6260 michael@AmCapMgmt.com

525 Tyler Road, Suite U • St. Charles, IL 60174 Registered Representative of the securities offered through Financial Network Investment Corporation, member SIPC. Advisory services offered through Total Clarity Wealth Management, Inc. Total Clarity is not affiliated with Financial Network.

• Wednesday, February 29, 2012

(ARA) - The new year is a time for celebration, but it’s also time for planning. For many Americans, that means reviewing your budget for the next year and setting some financial goals.

As with any other goals, the key to achieving your financial goals is laying out a process that will ultimately lead you to success.

If you’ve set yearly financial goals in the past, but have failed to achieve them, now is a great time to re-evaluate your process. And don’t let past failures discourage you, because you are not alone - only 12 percent of consumers reached their financial goals in 2011, according to a recent Zogby IBOPE survey commissioned

by TransUnion, one of the three major credit reporting companies.

“Even though you may be busy, now is the perfect time to appraise

MONEY & TAXES | Kane County Chronicle / KCChronicle.com

Tips for meeting your financial goals this year

Kane County Chronicle / KCChronicle.com • Wednesday, February 29, 2012

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Charitable giving: Important tips for tax season (ARA) - Charitable contributions are a great way to give back to those who need it most. Of course giving back is great for the soul, but it can also be good for the pocketbook, in the form of a tax deduction. When you begin tax preparations, keep those 2011 donations in mind.

“Many charitable givers are aware of tax deductions,” says Todd Baylis, president of Qgiv, an online fundraising platform that helps organizations connect with the next generation of donors. “But many of those who give are not always aware of the qualifications come tax season.”

Here are a few things to keep in mind to make sure your good deed doesn’t go unnoticed during tax season.

Make sure your donations qualify First, make sure your donation qualifies. In order to receive tax savings your contribution must go to an IRS-certified, 501(c)(3) qualified organization. You can find an updated list at many public libraries as well as the IRS website.

Another important tip, itemize, itemize, itemize. Make sure you itemize your deductions on your tax form under Schedule A, otherwise you’ll be out of luck.

Keep records Now is the time to make sure you receive a receipt or acknowledgement from the organization you give to. Donations of $250 or more will not be allowed as a tax deduction unless you have the right documentation. To claim a deduction for cash,

check or other monetary gift, you must have written acknowledgement from the charity that includes the name of the organization and the date and amount of the contribution.

For donations less than $250, if you do not have a receipt, a cancelled check or bank record will work.

You can also receive a deduction for donations such as property, clothing, household furnishings or office equipment, but there are specific rules. The process is the same when claiming your deduction. You must have a receipt for the goods from the charity, and if the item donated is worth more than $500, you will need to file IRS Form 8283.

“Many nonprofit organizations now have the ability to accept online donations,” says Baylis. “When a

nonprofit organization partners with Qgiv, those donating to that organization will receive customized receipts by email in addition to the having the ability to print a receipt for their tax records.”

With the increase use of smartphones, mobile giving has become more and more popular. If you donated using your phone, you can use your phone bill as a receipt as long as it lists the date, amount donated and the name of the charity.

When in doubt, ask When preparing for tax season there are many resources to help you make sure you are getting your correct deduction for charitable giving. If you have a question, ask a tax adviser or go visit the IRS website for specifics on charitable giving.

Jobs may change. Retirement dreams don’t have to.

If you’ve left a job and have a 401 (k) or other retirement accounts, don’t forget about them. Rolling g over assests you have with former employers or other institutions to an Ameriprise IRA can be important in making your retirement dreams a reality.

Understanding and managing your retirement income strategies can help you put a confident retirement within reach. To start a conversation, call me at (630) 762.6556.

Steve Smith

Financial Advisor Associate Vice President 555 S. Randall Rd., Suite 100 St. Charles, IL 60174

(630) 762.6556 Toll Free: 1 (800) 942.5959 Steven.L.Smith@ampf.com

Ameriprise Financial cannot guarantee future financial results. Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC. Some products and services may not be available in all jurisdictions or to all clients. © 2010 Ameriprise Financial, Inc. All rights reserved.

MORE WITHIN REACHSM

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According to the National Association of State Treasurers Foundation, 90 percent of women will be solely responsible for their finances at some point in their lives.

However, despite the likelihood of eventually living this new financial reality, less than half of women (45 percent) and men (41 percent) have a contingency plan in place should something happen, according to research by TD Ameritrade, Inc. “It’s not always the easiest conversation to discuss with your partner because it forces you to think about worst-case scenarios,” says Lee McAdoo, director of Women’s Initiatives at TD Ameritrade.

“But you’ll find that discussing your family finances and setting goals together can also give you peace of mind.”

Life transitions are often times unexpected and highly emotional, which can make decision making more difficult. For

those reasons, it’s best to plan ahead.

Here are 10 suggestions to help you make sure you can effectively handle your personal and family finances: 1. Create a detailed household budget.

2. Compile all your financial documents, make copies and store them with your attorney or place them in a safe deposit box that you both can access.

3. Conduct an inventory of marital assets.

4. Determine medical expenses and other annual costs for your family such as activities fees for your children and gym memberships.

5. Review all your debt, including mortgages, student loans, car loans and credit cards. Obtain a current version of your credit report at least once a year.

6. Make sure each person is aware of how you file your tax returns and your tax filing status.

7. Discuss long-term savings plans and goals, including retirement and college savings plans.

8. Review beneficiary designations in your will and update if necessary.

9. Consider employee benefits for each person.

10. It can be helpful to have an attorney or financial adviser review financial documents and give you advice should you desire it.

While involving yourself more in your finances means taking on extra responsibility, it can also help you feel empowered and set your mind at ease as you look to the future.

Discover how you can affordably have a plan for the physical, emotional and financial burdens Long Term Care places on family & friends. What is your written plan if you lost your independence and your family needed to take care of you in your home or in extended care? Ideally you should plan well before retirement. Free consultation via phone or in person.

Sharon Surrett, MBA, CSA, CLTC Specialist in Long Term Care Planning

630-208-6882

Are you prepared?

ssurrettLTC@gmail.com www.sharonLTC.com

• Wednesday, February 29, 2012

(ARA) - One of the many benefits of marriage is having a partner to share in the day-to-day tasks. One person might handle the laundry while the other takes over yard work. But, when it comes to money management, while you may end up delegating most of the responsibility to one person, it’s in every couple’s best interest to be mutually involved in the family finances.

Life is full of uncertainty and change, and it’s possible, even likely, that you will be responsible for your own finances at some point. For many, the financial impact of significant life changes, from the good, like marriage and children, to the not-so-good, like death and divorce, is often a costly afterthought. While divorce and death are difficult possibilities to accept or anticipate, they are changes that come with many financial implications.

This holds especially true for women who typically outlive their male counterparts.

MONEY & TAXES | Kane County Chronicle / KCChronicle.com

Ten tips to manage your money through unexpected life changes

Kane County Chronicle / KCChronicle.com • Wednesday, February 29, 2012

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Managing your own personal debt ceiling (ARA) - The federal government and the average consumer have a lot more in common than you might think. The government’s debt has grown exponentially since the 1980s, and this summer we saw it come dangerously close to the debt ceiling - the cap set by Congress on the amount of debt the federal government can legally borrow. Some people often ignore their limits to get what they want in the moment and push the bounds of their own “debt ceiling.” Doing so could damage your credit score, dig you deep in debt that will be difficult to pay off, and ultimately hinder your long term financial goals.

The federal government has raised the debt ceiling nearly 100 times since the ceiling was established, but you don’t have to. Taking on too much debt can have severe consequences - today, more than 5.6 million mortgages are either delinquent or in foreclosure, and a

lack of savings can impact one’s ability to retire comfortably. Here’s some ways to set your limits and stick to them.

Get lean and mean: Take a hard look at how you’re spending your money.

Save receipts for any purchase you make for a week (or a month). At the end of your prescribed time period, go through your receipts and see where your money’s going. Divide your receipts by category - such as household expenses, meals, entertainment - and tally them up for each group. Sites such as Mint.com, or smartphone apps like iReconcile, can help you track and analyze your spending if saving receipts is a hassle for you.

Understanding where your money is going is a necessary step to determine your own budget and where you need to cut down, and can help you understand where you’re headed financially.

Hidden expenses: You’ve tracked your spending. Now take a look at hidden

expenses - little regular expenditures that don’t seem like much on their own, but over time can drain your finances.

Have a Netflix or Hulu Plus account you’re too busy to use? Cancel your subscription and save $7.99 a month - which adds up to nearly $100 a year. Cancel unnecessary unused gym memberships, cellphone insurance, unused long distance plans and extra TV channels and watch your bank account rebound.

Take that savings one step further and open a separate account for those “found” funds. Look for a bank that makes it easy for you to save, with account offerings that meet your needs.

Find more hidden money by emptying the change from your wallet into a jar at the end of each week or month. Some banks offer their customers free coin counting services. Deposit the counted coins into your savings for a pain-free nest egg!

Hidden fees: Just like you may not notice all the little hidden expenses that can drain your bank account, watch out for hidden bank and credit union fees - charges for paper statements, transactions with tellers or over the phone, the purchase of gift cards, or monthly checking. According to Bankrate.com, six out of 10 banks increased their checking fees recently.

Review your statement carefully each month to ensure you’re not being charged for things you’re not aware of - and if you find you are, have a chat with your bank to see if they offer other products that meet your needs. You should have access to services, convenient hours, and a large branch network without being nickel and dimed.

With these tips and a little bit of legwork, you’ll be on your way to keeping your personal debt ceiling in check.

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How to avoid them this year don’t have to panic about making sure that each minute figure is perfect. The IRS isn’t going to hunt you down and send you to jail over a simple mistake - even they understand that we’re all human. If you’ve lost some information that’s necessary to your tax return, do your best to fill it out using reasonable estimates. Don’t let perfectionism get in the way of filing.

Mistake 3: Going it alone We aren’t all tax experts, and that becomes particularly clear when you start filling out the labyrinthine forms.

And if you’ve had any major (or even minor) changes to your life this year, the whole process can get even more confusing. Getting help from a tax professional is much more affordable than you might imagine, and can pay off in a lot of ways, not least of which could be a lower overall tax bill.

Mistake 4: Not reviewing your work You had to do it for your homework, but you should be doing it for your taxes, too. Going back to your

taxes with fresh eyes can help you catch mistakes or areas that were simply missed. Check the details.

Are your Social Security numbers right? Were any credits or deductions missed?

Mistake 5: Being afraid to ask questions The old axiom “there are no dumb questions” applies to your taxes. If you’re not an expert, there will almost certainly be something that you don’t understand or find confusing.

Luckily, there are plenty of resources out there that can answer your questions. You can go directly to the IRS website or the IRS help line, but if you still need more assistance, ask your question at Equifax’s blog or check with a tax professional.

Mistake 6: Not being careful with direct deposit The advent of direct deposit has been a benefit to those waiting for

their thhei tax taax reree-

funds, but you have to do the footwork for the IRS. They can only deposit the funds into the account you tell them to use, so make sure that the information you provide is correct. If there’s a mistake and your money is deposited into the wrong account, it’s a nightmare, at best, to get it back. At worst, you might not get it back at all.

Preparing taxes might never be your favorite activity, but it doesn’t need to be a painful experience. Get the help you need, be cautious and don’t let the stress get to you - tax season will be done before you know it.

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• Call today for an appointment • We respect the service of our active military and participate in the Illinois CPA Society Military Service Tax Preparation Project

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• Wednesday, February 29, 2012

(ARA) - Tax time is a stressful ress time, even for the most prepared red filer.

And for the many people who aren’t perfectly prepared when the he season rolls around, each commercial, cial, ad or sign that mentions tax preparation can be a painful reminder that the daunting task still lies ahead.

This year, don’t let yourself be affected by the stress - or at least find ways to cut back on it. By avoiding these six common mistakes, you’ll be making the process of filing your taxes a lot easier on yourself.

Mistake 1: Rushing to file by April 15 If you aren’t ready by the 15th, you don’t need to panic. Six month extensions are now an easy-to-use option.

You no longer have to give a reason about why your taxes aren’t ready by the initial deadline - just fill out and file Form 4868, and you’ll give yourself some extra time to get it all complete.

Mistake 2: Being a perfectionist Of course, you can’t and don’t want to lie on your tax return, but you

MONEY & TAXES | Kane County Chronicle / KCChronicle.com

Have you made these six tax mistakes?

Kane County Chronicle / KCChronicle.com • Wednesday, February 29, 2012

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