Most financial professionals will give you their credentials, which will include the professional organizations they belong to. Here at Step By Step, one of our longtime associations is NAPFA: National Association of Personal Financial Advisors. In fact, many of our referrals come from their handy “find an advisor” function on the website. Every advisor is required to pledge a Fiduciary Oath annually (no sales commisions for products, complete disclosure of business practices) and adhere to a strict Code of Ethics. They provide ongoing continuing education for affiliated advisors and are often noticeable in the public sphere, promoting integrity in the financial profession. Step By Step is proud to be a part of NAPFA. We hope you’ll take 40 seconds to view their latest video: The NAPFA Story. It gives a great background introduction to how it came to be and it’s mission.
Retiring Soon? Do You Have all Your Questions Answered?
If you are looking at retiring soon, do you have the answers to the questions to adequately prepare for this time in your life? I have listed below and also included in the video typical questions I help clients answer. If you have these questions, you may want to consider seeking out a financial planning professional.
- Will I outlive my retirement savings?
- What will I spend my time in retirement doing?
- Will social security be available to me?
- Should my annuity really be inside of an IRA account?
- How much money do I really need to retire?
- I want to retire early. How much should I be saving now?
- I am a teacher. What pension payout option should I select?
- What will be my cost of living in retirement?
What Should You Expect from Step By Step Tax and Financial Planning
SBS_What_to_Expect (Click here to listen to short audio version of this blog.)
What should you expect if you engage Step By Step Tax and Financial Planning for holistic tax and financial planning services?
1. Straight Talk
2. Easy Access
3. Value for Your Money
4. All-Inclusive Approach
5. Adaptive & Ongoing Service
Looking for a Planner? Want to know who we serve best?
I often get asked who would be a good fit for the services we offer here at Step By Step Tax and Financial Planning. Well just watch this short 2-minute video and you will find out.
“Hitting it Big Time” Success of Zanybandz
On March 3rd at the “Finishing the Race” Business Conference at NSU/BA Lori Montag and Jim Howard will share their success story of their newest business Big Time Brands, located in Broken Arrow, which provides the world famous ZanyBandz.
Those colorful silicone wristbands that have taken over preschools, Kindergartens and elementary schools across America have found their way onto the LPGA Tour. Never heard of Zanybandz? They’re the Beanie Babies of 2010, only easier to find and a lot cheaper to buy. They’re glow-in-the-dark “bracelets” that come in an array of colors and shapes, from animals to sports paraphernalia.
Big Time Brands have placed their silicone bracelet products in over 25,000 stores nationwide. They have also developed the silicone rubber band bracelets for more than 10 international retail accounts. They have launched ZandBandz, UndergroundBandz, Splash Watches, and Slap Watch.
Learn how these entrepreneurs came up with this trendy concept from the animal Zanybandz to tie-dye and underground specialty bracelets. Listen as they talk about market tactics, distribution and staying on the cusp of technology and latest fashions.
For more information about the “Finishing the Race” Business Conference, other speakers, and the program, go to the website www.babusinessconference.com
Open Letter Regarding BA Business Conference on March 3rd-4th, 2011
We are planning on a great conference and we want you there. Last year’s conference was well received by all who attended and it was only our first year. We have learned from our mistakes and improved this year! We are hosting incredible speakers who will inspire you to grow both personally and professionally.
The planning committee desires nothing other than your success and that is the mission behind this event. We believe this event serves the membership of the Broken Arrow Chamber of Commerce and the surrounding communities well.
I can speak from personal experience my tax and financial planning business improved from attending last year’s conference. The Monday after last year’s conference I set out a game plan to reach a certain level of success in 2010. On December 15th, 2010, I hit that level and I did not think it was possible until I attend the BA Business Conference last spring.
I encourage you to take a risk and come to this conference. We want to see you, your business and the local communities succeed in 2011. Be part of the solution and “finish the race!”
Sincerely,
Kevin Jacobs, CFP®, EA
Owner of Step By Step Tax and Financial Planning, LLC
Chairman-BA Business Conference 2010 and 2011
918-806-6596
Press Release for Broken Arrow Business Conference
For Immediate Release
February 3, 2011
www.babusinessconference.com
Broken Arrow Area Chamber of Commerce Presents the 2nd Annual Business Conference
Businesses Learn How to Succeed and Finish Strong
BROKEN ARROW, OKLAHOMA – The Broken Arrow Area Chamber of Commerce will host its 2nd annual business conference designed to help business owners beat the odds and improve their chances of succeeding. The theme for this year’s conference is “Finishing the Race” and will be held on Thursday, March 3rd and Friday, March 4th at the Northeastern State University – Broken Arrow Campus. In addition to the dynamic speakers, attendees can visit local businesses at the Conference Expo and attend the Business After Hours networking reception.
Speakers at this year’s conference are the following: Scott Klososky – Former CEO of three successful startup companies who applies his skills to help organizations thrive, Heather Rumley – Founder of ClearWater Performance Group who works with senior level executives to improve their organizational performance, Dr. Brian Epperson – Founder and CEO of Human Performance Advisors who works one-on-one with business leaders to help them navigate critical issues that impact them professionally, Kelly Riggs – Founder and President of Vmax Performance Group, who is a powerful speaker and dynamic trainer in the fields of leadership, sales development, and strategic planning, and Jack Nation – Running coach who has participated in numerous 5Ks, 10Ks, half marathons, full marathons, Duathlons, and Triathlons.
Business owners who want to increase their bottom line, need innovative ideas on successful small business practices, are looking for ways to “get out of the box”, and want to be challenged to step their business up to the next level should make plans to attend this information packed conference.
Registration and additional information about the conference can be found at www.babusinessconference.com or by contacting the Broken Arrow Area Chamber of Commerce at (918) 251-1518.
Contact: Vanessa Komara (918) 729-2616
Brenda Senter (918) 251-1518
Common “Do-It-Yourself” Tax Preparation Mistakes
I find three of the most common “do-it-yourself” tax preparation mistakes include capital gains, business asset depreciation and rental home cost basis.
Many people do not know the difference between short-term (1 year or less) and long-term (1 year and 1 day+) capital gains tax treatment. I have met individuals who had to pay more in tax then necessary because they sold their asset within a day or two of it becoming a long-term asset. Knowing the difference between short-term and long-term capital gains can save you up to 20% or more on your federal return. If you receive an inherited asset, it is deemed to be a long-term capital gain and it receives a step-up in basis. This means your basis is what it was worth on the day the grantor died. If you have capital gains on your return and/ or your received an inherited asset, I strongly encourage you to seek out a professional and competent tax professional.
Moreover, another area worth significant tax savings on your return is calculating and planning your business asset deprecation correctly. I have had to amend many returns to correct their depreciation schedules. It is important you keep your purchase documentation for business assets and allow your tax professional to determine the best course of action in preparing your depreciation schedules. Many times, if I have a start-up business, it is more advantageous to depreciate business assets rather than taking a Section 179 expense deduction. If your business is showing a loss even before you have calculated depreciation, it is probably not in your best interest to expense the asset.
Finally, cost basis tracking on rental properties is another area where I see common mistakes. This is especially evident with converted personal to rental property. If you convert your home from a personal residence to a rental, your basis for depreciation is either the FMV (Fair Market Value) or adjusted basis at the time the property was converted. The adjusted basis is the original purchase price of the home in addition to many improvements and purchasing expenses. The basis for your rental property is the lower of these numbers (current FMV or adjusted cost basis).
Unless you have a very simple tax return, I strongly encourage you to seek out the advice of a competent professional. Tax preparation work is very tricky and can cost you in the long run if it is not done correctly. If you have capital gains, business depreciation or rental property on your return, I would consult with either a CPA or Enrolled Agent before filing your own return. The value of a good professional should far outweigh any fee they may charge.
Proactive Tax Planning Strategies
Many people fail to plan when it comes to taxes. You can save significant amounts of money regarding your tax liability if you are willing to be plan. Below you will find some proactive tax planning strategies:
1. Learn the range for the marginal tax brackets. You can find these at http://taxes.about.com/od/preparingyourtaxes/a/tax-rates_2.htm. With some planning, you may be able to reduce your taxable income so as to be taxed at a lower marginal rate.
2. Evaluate your investments and make sure you not only have them allocated appropriately, but also determine if they are in the most tax-efficient vehicle. See previous blog entry regarding asset location at http://stepbystepfinancial.org/blog/2009/06/14/asset-location-an-often-overlooked-aspect-of-investing/
3. Fund your available retirement plans as much as possible. Don’t just contribute what the company gives you as a match!
4. Document the non-cash charitable contributions you make to organizations, such as Goodwill and Salvation Army. You give more than you realize.
5. Keep track of miles for business, unreimbursed employee expenses, charity and medical.
6. Use your investment losses in your non-retirement accounts to offset gains.
7. Be mindful of potential state tax deductions for contributions to 529 college savings plans.
8. Consider Donor Advised Funds for charitable purposes.
There are many other potential tax planning strategies so I encourage you to speak to your tax professional for ideas and suggestions. Tax preparation is nothing other than “documenting history.” Tax planning is where the real money is saved. I encourage you to take some time before the end of the year to see how you can proactively plan to reduce your 2010 tax liability.
Important Information Regarding Roth IRA Conversions
Below you will find a blog entry from Bert Whitehead, a mentor of mine, with the Alliance of Cambridge Advisors. This is important information to read and to do something about sooner then later. I use this information with permission from the author.
Roths Now Make the Tax Code Your Friend!
Starting in 2010, the Tax Code opens up vast opportunities to increase Roth IRA participation for many taxpayers. As I will explain, you will need to consider at least 11 issues or possible strategies to make the most of this and determine the final formula that will reduce your long-term income tax bill and address other financial goals. But I caution you from the outset…Roth conversions are a hot topic with brokers and investment advisors who want to use this as an asset gathering gimmick or earn commissions from transactions. It is a complicated opportunity, and demonstrates how a comprehensive Financial Advisor who handles your taxes, investments, and estate planning is able to add value.
Here’s a review of some Roth IRA basics.
You probably know that if you work and your overall income is low enough, you can contribute to a Roth IRA as one of your annual IRA contribution choices. Your contribution is taxable (that is, you cannot deduct it on your tax return) when it is made. Age 70 ½ distributions are not required and, if taken, withdrawals in later years are totally free from income tax. Depending on your circumstances, this can be a huge advantage. A Roth IRA contribution of $5,000 can grow to $80,000 if invested at 7% over your working career, and you would save taxes on $75,000!
The only way to fund a Roth IRA other than an annual contribution based on earned income is to “convert” an existing IRA (or similar pre-tax retirement account) to a Roth IRA and pay tax on the current IRA distribution now rather than at age 70 ½. . In the past, your total adjusted gross income (AGI) had to be under $100,000 to avail yourself of this option. This is the big change this year.
Starting in 2010, you can convert any of your IRA’s to a Roth IRA no matter how high your income. While you do have to pay the income taxes now, remember that future withdrawals from your Roth IRA are tax-free! The reason why 2010 is a big year is two-fold; 1) there is special relief when paying the income taxes that result from any 2010 Roth conversion and 2) we are all facing the threat of rising income tax rates.
Here are some points to ponder and strategies to consider. Again, these can be complicated so you should expect to discuss whether these apply to you during the year when you do tax planning with your ACA advisor (i.e. a member of the Alliance of Cambridge Advisors).
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