Claiming Homebuyer’s Credit on your 2010 Tax Return

Written by on February 8, 2011 in Uncategorized - No Comments

Question:   I was wondering what documentation you are suggesting your clients submit to claim the $6,500 home-buyer’s tax credit.

Answer:  Here is what I would do for a client

  • Paper file return
  • Properly complete Form 5405
  • Copy of HUD Settlement Statement showing signature of buyer and seller
  • Copy of mortgage statements from the last 5 years you lived in your previous home

If you follow this guideline and your claim is legitimate, you should not have a problem receiving your refund.  Keep in min you will probably need to wait 6- 8 weeks to get your refund, so please be patient.  For more information, please visit http://www.irs.gov/newsroom/article/0,,id=204671,00.html.

Services Offered By Step By Step Financial

Written by on February 8, 2011 in Uncategorized - No Comments

I often get asked to give a brief summary of the services I offer here at SBS.  With that in mind, I have written the following blog post.  Enjoy and please comment!

At this time, we have three predominant services we offer to individuals and businesses:

1.  Fee-Only Financial Planning Retainer Service for Pre-Retired Married Couples and Entrepreneurs

Step By Step Financial is a fee-only financial planning firm in the metro-Tulsa, OK area. What makes us different from many financial firms is that we offer professional, objective tax and financial planning services on a one-to-one personal level. We are an independent firm whose complete focus is on the client.

We work with a small number of individuals in order to best serve each one, remaining focused on the needs of our clients. The only compensation we receive is directly from our clients. We do not receive commissions, referral fees or third-part incentives. 

2.  Individual and Business Tax Planning and Preparation

Along with the holistic financial planning services we offer to our clients, Step By Step Financial, LLC also services the tax preparation needs of many individuals and businesses. Kevin Jacobs, CFP®, EA is enrolled to practice before the IRS.

The fees for tax preparation are very straightforward. We serve the needs of our tax preparation clients on an hourly basis. For individual clients, the hourly rate is $75/ hour for the first four hours and $37.50 for each additional hour after the initial four. For business returns, the hourly rate is $75/ hour. There is a minimum fee of $75 for all returns.  If you are looking for a second opinion on your individual or business return, we also offer that service at our standard business tax preparation rate.  There are no additional charges for e-filing or document preparation.

3.  401k Retirement Plan for Small (as few as one participant) to Medium-Sized Companies

If you are looking to start a 401k plan for your company or if you are not happy with your current provider, please contact me so we can discuss the benefits of a multiple employer plan.  Most small businesses do not know the liability they take on in offering a plan to their employees.  On top of that, the fees charged by most providers are astronomical for the small to medium-sized businesses.  You have nothing to lose by setting up an initial consultation for us to discuss your company’s retirement plan.

Dateline NBC Exposing the Sale of Equity Indexed Annuities

Written by on August 7, 2010 in Annuities, broken arrow, fee only, financial adviser, financial advisor, Financial Education, financial planner, Financial Planning, Investing, Tulsa, Uncategorized - No Comments

 

Visit msnbc.com for breaking news, world news, and news about the economy

Visit msnbc.com for breaking news, world news, and news about the economy

Visit msnbc.com for breaking news, world news, and news about the economy

Visit msnbc.com for breaking news, world news, and news about the economy

Visit msnbc.com for breaking news, world news, and news about the economy

Visit msnbc.com for breaking news, world news, and news about the economy

Visit msnbc.com for breaking news, world news, and news about the economy

“Rapping” Financial Advisor

Written by on June 7, 2010 in Financial Education, Financial Humor - No Comments

http://www.youtube.com/watch?v=C3GtxtWSZxE

Even with the equation of snacks to cash equivalents and the fact that Mr. Robinson eerily resembles my father-in-law, there’s a great message hidden in here:  the markets are resilient, diversify and RELAX.  Oh, and learn how to hunt.

What makes a “fee-only advisor” different?

Written by on May 31, 2010 in Annuities, broken arrow, Economics, fee based, fee only, Financial Education, financial planner, Financial Planning, Investing, Oklahoma, Security, Tulsa - No Comments

I am frequently asked:  what is a “fee-only advisor” and why should I work with one?  First, a fee-only advisor’s compensation comes directly from the client.  The advisor does not receive any commissions or referral fees from selling financial products (such as annuities, insurance or investments).  A fee-only advisor may receive compensation from assets under management, retainer fees or an hourly rate.  I focus the majority of my business on retainer fees.

In contrast, a “fee-based” advisor receives compensation from both charging a fee for completing a financial plan and from commissions on the products recommended as part of the “implementation strategy.”  Many times the financial plan is offered at severe discount.  Their real profit comes from selling you the products they recommend.  Their belief is that by charging you a fee for their “objective” advice you are more likely to “implement” the strategies they recommend.

A commission-only advisor makes his compensation strictly from selling you financial products that have a “load” or commission attached to them.  In my humble opinion, I tend to trust “commission-only” advisors more then “fee-based” advisors because you know they are only getting paid from what you buy from them and they do not have any ulterior motive in offering you a “plan.”

I personally believe each of these advisors has a place in the financial service industry.  However, the main thing I ask from each one of them is to disclose to the client how they are going to get paid.  The main reason why you should work with a fee-only advisor is they can give you objective, unbiased financial advice free from the potential conflict of interest inherent in product sales.  Yes, the fee-only advisor is still selling to you, although the “product” he is selling is an education and trustworthy advice.

When it comes to your money follow this common sense rule:  “When you know how your advisor is getting paid you will know who he is really working for!”

You may find this article from Money Magazine interesting:  http://money.cnn.com/2007/09/27/pf/planner_advice.moneymag/index.htm

Teaching Kids About Money

Written by on January 14, 2010 in Kids and Money - No Comments

This post was written by Virginia Nolen, a homeschooling mother, wife and occasional blogger.

While so many of us adults are struggling to learn to manage money and finance our lives, we often forget to make sure our children are receiving a proper financial education. If we want our kids to avoid the same pitfalls and traps we’ve experienced, we have to make sure we’re giving them the tools they need to succeed. Fortunately, we can learn alongside them and anything that leads to dinner conversation rising above the level of “Are we raising a cow, dear? Do you think our daughter could chew with her mouth closed tonight?” is a positive step in my book!

The first consideration is the age of the children in question.  It’s never too late (or too early) to start, but the sooner the better.  Kevin recommends the book Why Smart People Do Stupid Things With Money by Bert Whitehead for his clients, and there’s an excellent section within the Financial Life Cycle chapter dealing specifically with youth.  Bert Whitehead lays out a chart separating childhood into three stages:  early childhood, middle childhood and the teen years.  I won’t go into futher detail (read the book!) but I want to elaborate on his ideas.  I think about those years somewhat more concretely  (having children in the early childhood stage myself).  In addition to his very good suggestions for topics to be covered at those ages, I add the following general concepts for each age group:  in early childhood, the focus should be on the definition of money and it’s mathematical properties.  In middle childhood, the focus should be on the function of money and the variety of accumulatory functions it has.  In the teen years a focus on the consumer value of money (I’d like them to have a good idea of how much those fancy jeans cost) as well as the far more important ability of assigning a value to consumer products.  That teen year focus sounds redundant, but I assure you it is not.  The grocery store says that apples are worth $1.99 a pound while out of season, $1.25 a pound while in season but am I really willing to pay that much for apples in the first place?  Would my money be better spent buying bananas at $0.40 a pound so that I have money to buy yogurt with?  I’m starting to get hungry talking of food and about to go on a rant about the cost of fresh produce so let’s move on, shall we?

Read more…

IRS Tax Tips

Written by on January 11, 2010 in Uncategorized - No Comments

If you are looking for some tax tips directly from the IRS, you can check out the website below.  I find these “tips” to be very helfpul.

http://www.irs.gov/newsroom/content/0,,id=104608,00.html

Proposed Tax Preparer CE and Competency Requirements

Written by on January 6, 2010 in Economics, Financial Education, Tax Planning - No Comments

It looks like the IRS has finally put together some proposed recommendations for tax preparer continuing education and competency requirements.  These requirements are for unenrolled tax preparers.  If your tax preparer is an Enrolled Agent, CPA or attorney they are already required to fulfill similar requirements based of their professional status.

Check out the IRS proposed requirements at http://www.irs.gov/newsroom/article/0,,id=217781,00.html

Your Greatest Asset: Yourself!

Written by on August 26, 2009 in Motivational, Security - 1 Comment

What do you think of when you think of your greatest asset?  You may think of your home, investment accounts, vehicles or a family heirloom.  In reality, you have an asset that is far greater than any of the aforementioned items.  The greatest asset you have is yourself and the ability you have to earn an income.

When I worked for a commission-based financial advising firm, we would lead with the first question above to begin the long-term disability sales process.  We have insurance for all of these tangible assets (house, vehicles, etc) but many times we do not have any or we are completely ignoring the need to have insurance on our future income earnings.  I want to look at this question a little differently now, though.  I want to look at the “cap” you may be putting on your future income and future well-being at this very moment.

I work with many entrepreneurs and the successful ones have something in common.  They realize that their income and ultimate success is contingent upon their ability to create something of value and then market that item or service so others will pay for it.  I see a lot of people who have comfortable “jobs” working for someone else are putting a “cap” on their potential earnings.  If you are working for someone else, you are allowing them to tell you what your value is to the company or organization.  If you think you need a raise, what you are really saying is that your services are “undervalued.”  I used to think I would only be able to make XX amount of dollars in my previous career.  The thing I soon realized is that my self-esteem and the value I was giving myself was based on someone else telling me what I was worth.  It was not until I looked at my situation objectively that I realized I could provide tremendous value to others and be compensated fairly for it.

Read more…