For Parents of Special Needs Children

If you are the parent of a child with special needs, then you probably already know that there can often be additional costs and fees involved in raising your child and ensuring he or she has the best life possible. What you might not know, however, is that the government understands your plight and has written some provisions for you into the tax code, provisions which you should make an effort to learn about and take advantage of where possible.   

Special Education

If you have placed your child in a specialized school, you can actually deduct the costs associated with the school as a medical expense, believe it or not. You can deduct the cost to the extent that it exceeds the 10% of adjusted gross income floor for medical expenses.

Fortunately, lots of school related costs are deductible, including: meals and/or lodging costs, school transportation costs, and any costs associated with overall supervision or care of the child. Plus, children don’t even have to go to a specialized school to qualify for these benefits. If a child receives special care from a standard school, any additional costs involved count as a deductible medical expense. Either way, taking advantage of this option can save you a lot of money!

Home Modifications

Something else that may surprise you is that if you make modifications or improvements to your home in order to make it more accessible to your special needs child, you can deduct some of the associated costs. You can deduct up to the extent that the improvement costs surpass any increase in the fair market value of the home, making this a great deduction opportunity.

The Dependent Care Credit

One final thing that you may qualify for as the parent of a special needs child is the dependent care tax credit. For most people, the credit can only be claimed for dependents under the age of 13, but for special needs children who are incapable of caring for themselves indefinitely, the credit can be received for much longer, which is a nice bonus.

These are just a few of many tax breaks that can help out the parents of special needs children. To learn more about these or other opportunities for parents in this situation, be sure to speak with a qualified financial adviser.

Does Marriage Help Your Wealth?

People love to say that getting married is an instant way to build your wealth, but is this really true? Unfortunately, it’s not NECESSARILY true, at least not in every case. However, with that said, studies do show that married people tend to be much wealthier than single people. Of course, there are a lot more factors at stake than whether or not someone is married, but these trends suggest that marital status CAN play a role in financial stability, especially given the fact that married couples often have two incomes instead of one and can also enjoy some tax breaks made just for them.

None of this is to say, however, that getting married will automatically make you rich or ever richer. However, if you choose your spouse wisely and go into marriage with not just a romantic-minded perspective, but also a business-minded one, you greatly increase your chances of your marriage increasing your wealth.   

Know the Facts

The key thing is to make sure that you don’t go into a marriage without knowing where your partner stands financially. While it may not seem like the most romantic thing in the world, you need to know what your partner has going for him or her, financially speaking, as well as what your would-be spouse is dealing with in terms of debt. Marrying someone with horrrible credit and a mountain of debt certainly isn’t going to help your financial situation.

This doesn’t mean that you shouldn’t marry someone who is in a bad financial state…but you probably shouldn’t marry that person YET. Work together to clean up any bad finances on both of your parts and THEN tie the knot if you want to see the most benefit.

Remember, knowing the truth before you take the plunge and working together to better yourself will only help your intended marriage, so treat financial planning as one of your first responsible acts as a serious couple.

Smart Habits for Saving Money

Everyone wants to save more money. Saving more money means paying down old or bad debt, being financially independent, and having funds on hand to help in the event of an emergency or other unexpected situation.

However, learning to save successfully isn’t easy. It’s not only about regularly putting money aside for savings. It is also about developing frugal habits in general and learning to live below or just at your means.

If you are serious about saving money and becoming a more frugal person in general, there are things you can do to get yourself accustomed to this mindset and to learn to save more and be thrifty.

Find Ways to Make More Money

It’s a lot easier to save money when you have more of it coming in. Thus, do what you can to earn a little extra money on the side, in addition to your main source of income.

This could be something simple, like selling items you no longer need, or something involved, like creating a pet-sitting business or a business where you sell crafts you have made.

There is always a way to generate extra income, and if you can find a way that works for you and then contribute a nice chunk (or even all!) of that extra income to savings, you’ll be amazed at just how much you can earn and save in just a short amount of time.

Have a Long-Term Goal

Another important thing you should do, as someone looking to save more money, is to have a big, long-term goal that you hope to reach. This could be to save a certain amount or to save enough to pay down a big debt. Whatever the case may be, having a long-term goal to work toward can make it easier to save and to turn down those impulse purchases.

In addition to your long-term goal, you may also want to plan a reward for when you reach that goal. It could be something like taking a vacation or buying something you want. Having that reward to think about will make it even easier to stick to your savings plan.

Make Saving a Priority

Above all else, you should absolutely make saving a priority- something that you HAVE to get done, no matter what. Make saving money just as important and necessary as paying your bills!

In fact, make saving the first thing you do when you get your paycheck. Take a pre-determined percentage of it, and immediately invest it in savings.

If you are unable to do this and still make ends meet, then it’s time to reevaluate and cut costs where you can so that you will have money left for saving.

Saving for your future is really that important!

As you can see, there are a lot of steps you can take to make yourself a more frugal person and to improve the size of your savings account. Follow these tips and put saving first, and you should see big improvements!

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Tips to Improve Your Finances

2016 is about a quarter of the way through, so if you made a promise to yourself to get in better financial shape and haven’t yet honored that promise, you better act fast!

Perform an Investment Checkup

One of the first things you can do to make things better is to do a “check in” on all of the financial products and/or services you currently use. So many people make the mistake of entering into financial or investment decisions and then just seeing what happens from there on out. In truth, you need to consistently stay on top of your financial endeavors and make sure everything is still working for you as it originally did. And, there’s definitely no time like the present to see how your choices are performing and to make sure you’re not missing out on better terms elsewhere. Check in on your current investments and plans and make changes as needed for a brighter future.

See if Your Savings are Sufficient

Not only should you check to see how your investments are performing, but you’ll also want to take a close look at your savings/emergency fund. If you’re like most people, you dip into your “set aside” money a little here and there as needed. And, unfortunately, if you’re not careful, you can end up using way more of this money than you anticipated. Take the time to ensure you’re still in good shape in terms of saving and/or emergency money. If you find that funds are running a little low, beef up your savings contributions until you could comfortably ride out any special circumstance life throws your way.

Check Your Credit Score

Another wise thing to do is to check up on your credit report. You can do this for free through any of the major credit reporting bureaus. Find out what your credit score is and, if applicable, what things are dragging your score down. Once you know what issues exist, you can file a complaint on credit remarks that don’t currently apply or that have been wrongly issued. You can also take note of any accurate negative reports on your credit history and take steps to remedy them, or, at the very least, to start building new and better credit.

Talk to a Pro

Finally, if you’re not already working with a financial adviser, there is no better time than the present! As you probably already know, managing your taxes and general finances on your own is tough and complex. That’s why, to ensure the best possible outcome in all financial matters, you should consider hiring a professional and trustworthy financial adviser to help you through the process. The sooner you do, the sooner you can get your financial goals and reputation on the right track, no matter what your starting point.

It's All About Money Management

A lot of people make the mistake of only thinking about their finances and planning for their taxes when it’s down to the wire, i.e. in the days before taxes are due. In reality, though, you could be taking small steps toward preparing your taxes all year long. In fact, during the year is actually the perfect time to do a little “money managing” since it will give you enough time to spot and fix problems and make changes that can have big benefits. For some simple  “check-ins” that you can do, keep reading!

Task #1: Check on Employee Benefits   

It’s always smart to do a little check-in on your employee benefits. Ensure you’re getting everything you signed up for and are entitled to, and check in with your boss or the accounting department to ensure you’re not missing out on good earning opportunities, like a 401(k) matching option. It’s also a good time to assess whether you need to be making more pre-tax contributions to experience maximum benefits because, if you do these types of things mid-year, you’ll still have some time to see their advantages.

Task #2: Prepare for Tax Season

Even though it can be a pain, why not go ahead and take a look at your taxes for the next year and how they’re shaping up? You don’t have to do anything too major, but do check in to ensure that you’re happy with your paycheck tax withholding setup, that you don’t have any bad investments weighing you down, and that your income, investments, and deductions are all stacking up as planned. If not, you’ll have time to make the necessary changes.

Task #3: Assess Your Risk

Finally, always check in mid-year to determine how risky your investments are looking. If you find stocks that aren’t doing well or other risks, it’s a good time to rebalance your portfolio and sell off bad stock.

Doing these things takes just a little of your time and can set you up for a much easier and more successful tax experience in the coming year, so get on it!  #FinancialPlanning

Debt Problems? There is Help and Hope

Many people in America struggle with spending, shopping, and related addictions. Even if you don’t have a spending/money problem so serious you would term it as an “addiction,” if you’re making poor financial decisions, there’s likely to be some negative habits and thought processes behind your behaviors. The good news is that it is possible to stop making poor choices, to avoid future bad-financial decision making, and to have a brighter financial future.   

For most people, the first and smartest step is to meet with an experienced credit counselor who can get to the root of their bad financial habits and instill good ones in their place. Doing that, as well as following a few basic tips, has the power to change the way people think about money and spending and to help them make much better decisions in the future.

Say No to Mental Math

If you’re someone who could benefit from credit counseling and learning a new way of thinking about financial matters, one of the first tips we have for you is to stop doing mental math!

Are you guilty of estimating how much you have in your accounts vs. how much you’ve spent vs. how much you can spend and then making decisions based on those estimates?

If so, you’re on dangerous territory. Estimates are never good enough. Instead of making guesses, you need to be keeping accurate financial records of every single purchase you make.

Realize that, often, people will deliberately-but-subconsciously lie to themselves about the current state of their finances in order to reduce anxiety (anxiety that should be there!) about making not-so-smart monetary decisions.

Don’t fall into that (often self-made) trap. Work with your credit counselor to get a realistic view of your current financial situation and what you need to do to get back on track. Then, be accurate, detailed, and honest when it comes to keeping track of your spending vs. earning details.

Expecting Instant, Easy Change

Trying to do a complete 180 overnight very rarely works out. Chances are, if you’re vowing to yourself that you’ll be 100%  smarter moneywise, starting tomorrow, you’ve made (and broken!) that promise a thousand times before.

Wanting change and recognizing problems with spending, budgeting, saving, and the like is a good first step. But expecting perfection immediately and then not achieving it equals nothing but guilt and let-downs.

Be realistic in financial goals. Aim to change one bad behavior at a time. If you’re a compulsive shopper, for example, set a goal of sticking to a budget or only going shopping once a month, instead of once a week....not once a year. Setting realistic goals, and, as mentioned, working with a pro is the real way to eventually see lasting, positive change when it comes to your financial hang-ups.

When Starting a Business

Many people dream of starting a small business, something that will be just theirs and that they can build from the ground up. One fine example of this dream becoming a reality is the Macpherson family, who took all the things they loved and combined them into one incredible place: Foster Harris House, a bed and breakfast of sorts.

Making the business a success wasn’t easy for the family, but they stayed true to their dream and their goals throughout all of the ups and downs they experienced. They were also willing to change and grow their business as their own needs did the same. For example, they became parents soon after opening Foster Harris House and had to add in new services to start saving for their child’s future education.   

These people, though, are a shining example of what can happen if business owners open a business they love and then commit to sticking by it no matter what. It’s commonly cited that at least half of all small businesses fail within the first year. But more often than not, it isn’t so much the businesses that fail but the owners that fail them. Staunchly refusing to give up on a dream and to ride out the ebbs and flows of the business world is what it takes to be a success.

Other tips for giving any small business a great chance at success include:

·         Write a detailed small business plan, hopefully with the help of a lawyer AND a financial planner. Be flexible when it comes to following the plan. You don’t have to stick to it staunchly, but having set goals and a general course of action to follow can be extremely helpful during that stressful first year of being a new business owner.

·         Determine who your “target demographic” is and then market, market, market to that demographic. In other words, through research, figure out which types of clients are most likely to buy your products or use your services. Then, gear your marketing toward members of that demographic. Don’t be afraid to reinvent your brand from time to time or to try appealing to others as well as your original target demographic however. After all, the more people you can appeal to and sell to, the more money you can make.

·         Overestimate expenses. It might seem like you’re being a “Negative Nancy,” but it’s always smart to plan and budget for spending more money than you actually think you’ll spend. That way, if you go over, it won’t cause a problem. If you don’t, then you’ll have a nice little bonus at the end of your first year of business.

All in all, if you can follow these tips and stay focused on your goals, you can’t go wrong, and your little business has a great chance of surviving its first year and maybe even thriving.

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The Math of Money

Cover of The Math of Money

Financial planning can be defined as the evaluation and assessment of all the possible ways to invest your money, in order to reap the best benefits in the future. The main objective is to help you maximize your returns and minimize your losses. If you hire an experienced financial planner, you can change the way you lead your life as they will show you the best way to save and invest.

In order to properly plan your finances, a qualified financial adviser follows certain steps. First, they evaluate your monthly income, your expenses, your assets and then device a plan that best suits your lifestyle. If you follow the framework then you can maximize your income by cutting down unnecessary expenses and increasing your savings.

Setting Long term Goals

One of the key benefits of hiring an experienced financial professional is that they can help you set achievable long term goals. The process of achieving long-term goals is tough. Even if you begin saving for the future, chances are that you will miss some installments or stop saving for a few months. Your adviser will help you get back on track to minimize losses.

Expert Advice

As an average human being, you may not be well versed with the math of money. You may not understand the various policies and hidden terms. When you hire the services of an financial planner, they can give you their expert advice as well as offer you professional planning and analysis services.

Helping You out When the Market is Volatile

Investment markets and stock markets are highly volatile. No one really knows what the next market news will bring with itself. A competent adviser has a good understanding of the money markets, and can help you make the best decisions about your money. In addition, these professionals are always up to date with the latest information about the money markets.

These are just some of the key benefits of hiring financial advice. To get the best services, it is important that you consider factors such as experience, education, availability and commitment before you hire your financial planner.

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FInancial Planning for the Elderly

Kare11.com, a news station based out of Minneapolis, Minnesota recently released a list of tips for helping the elderly with financial planning. Those tips, however, certainly aren’t limited to those living in the state. The fact of the matter is that the elderly people of today are not nearly as prepared as they should be financially. Whether it’s due to a lack of education “back in the day” or changing financial expectations, most elderly people need help getting their finances in order.  

First things first, you can’t just approach your parent or grandparent about finances without a gentle touch. Bring the topic up respectfully and kindly and explain that you are only interested in the person’s wellbeing. Also explain, however, that his or her financial planning or lack thereof does have the potential to affect the entire family. If an elderly loved one hasn’t prepared for long-term care, for example, and it’s needed, the family has to deal with the burden. A financial planner can be of great help to you when managing the finances of an elderly loved one. However, talk to the loved one gently and one-on-one first before bringing a professional into the mix. Who knows- your loved one might even be financially prepared. If not, however, explain that you do have options for getting those “money matters” in order.

A lot of elderly people are uninformed about their spending habits. In fact, many of them have their bills set up to be paid automatically, thanks to help from their well-meaning loved ones and thus have no idea of how much they actually spend vs how much they earn in a given period. Help your loved one to set up a budget that shows clearly what they’re bringing in versus what they’re spending, as well as what they’re saving. Show this budget to a financial advisor and have it tweaked for maximum benefit to your loved one.

You also want to make sure that your elderly family member has all of his or her financial ducks in a row so to speak. In other words, all important financial paperwork should be filed somewhere safe and somewhere that you or another trusted loved one are aware of. If a will has not been established, get one! Elderly people need to be prepared for what will happen at the end of their lives; in fact, we all do.

If you can approach your elderly family member in the right way and help him or her to get financial matters in order, you’ll quickly find that life is a lot easier for everyone involved and that you all have greater peace of mind.

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Understanding Co-Signing

So, you’re not quite ready to barter with brokerage services or open an IRA. If you’re just starting out in the financial game, that’s okay. After all, everyone has to start somewhere. Just be aware that not having a lot of credit can sometimes be a challenge. However, it’s certainly one that can be overcome.  

If you find that your lack of credit is getting your applications for credit cards or loans turned down, you do have options. One of those options is to enlist a trustworthy, financially smart family member to act as a “co-signor” on your loan. A co-signor is essentially someone who agrees to be responsible for your debt should you fail to pay it.

The best co-signors are close family members with stellar credit. A friend or someone you haven’t known for long usually doesn’t make a good co-signor; many creditors and lenders will deny co-signors who aren’t related to or otherwise closely and demonstrably tied to you. Also remember that a co-signor is not an excuse to not pay your debts. If you’re smart and honest, your co-signor will simply act as a stepping stone to establishing and building (or rebuilding!) your own credit history.

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Teaching Teens About Money

money and savings (Photo credit: 401(K) 2013)

As an adult, you undoubtedly understand the importance of financial planning and how difficult it can be to recover from money mistakes. If you have a child, then you certainly want the best for him or her, and you likely don’t want that child to repeat your own mistakes, especially as they relate to money. To set your teen on a bright financial path, all you have to do is be open and honest with your child and to provide a little loving guidance along the way.

Teens often make money of their own. Whether they baby-sit, mow lawns, or have part-time jobs, they can pocket quite a nice bit of cash. Unfortunately, teens tend to love trends, and following trends often means spending money. If you find that your teen is spending every dollar, sit down with him or her and have a talk about why saving is important. Open a savings account for him or her or just encourage your teen to put aside a set amount of each dollar earned.

For non-working teens, the tried and true chore-and-reward system works just fine. Make your children work hard for the money they earn, and they’ll be less likely to blow it! Remember, what you teach your teen now has the potential to last a lifetime, so don’t be shy when it comes to honing in on those financial “learning moments.”

Who Can You Trust?

When it comes to financial planning, it’s definitely advisable for all people to have a trusted financial consultant who can help them with saving, investing, and just managing their money in general. Unfortunately, however, not all financial advisers are as trustworthy or as skilled as they might present themselves to be. That’s why you need to be aware of the indicators that point toward a less-than-reputable adviser. 

To start with, you should never hire a particular financial advisor until you’ve checked up on his or her background. Luckily, in today’s world, there are many ways for you to do that. To learn more about your potential adviser, check out background-checking websites, like FINRA BrokerCheck and the SEC Investment Adviser Public Disclosure site.

If everything is all good and clear in your potential adviser’s past, then just make sure that the two of you communicate well, that your adviser asks you about your own goals and plans for your future, and always makes you feel like he or she is on your team and in your corner!

To choose from a wide range of financial planning experts whom you can most definitely trust, check out Platinum Financial Associates, Inc. of Naperville.

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How Americans Waste Their Money

USA Today recently exposed twenty of the major ways in which Americans are wasting their money—money they could be using to plan for the future. It’s no surprise that credit card interest costs were included as one of the “money wasters” on the list. The article even provided some not so nice figures: the average credit card debt per household in the United States is a whopping $15,270!   

Articles (and numbers!) like that one should really make you take a close look at yourself. Are you anywhere in that average credit card debt range? Maybe even above it? If the answer to either question is “yes,” then that’s probably a good indicator that you’ve been doing some poor financial planning and making poor financial decisions.

It’s never too late to turn things around though, especially if you get professional help! The financial gurus at Platinum Financial Associates can look at where you currently are financially (no judging!) and come up with a financial planning strategy to help you make smarter decisions in the future and maybe even ditch that credit card debt.

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Smart Finance Tips

Everyone knows that financial planning is important and necessary, but, unfortunately, few people know how to actually go about it. One of the first steps to smart planning is to set clear and realistic goals and expectations for the future. When it comes to your money, you should always be working toward something, whether it’s saving for retirement, your child’s education, or anything in between.  

Another major tip to keep in mind is that you do not have to handle financial planning matters on your own, nor should you. There are excellent organizations out there that can assist you with planning for your future and with enjoying your life, free of debt, right now. One of those organizations is Platinum Financial Associates of Naperville, and it’s just a phone call away! You can take the first step toward a better, brighter financial future by calling the office today and speaking with a qualified, experienced financial advisor who will put your needs first.

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Financial Predators

Finance (Photo credit: Tax Credits)

Everyone knows that financial planning is important and necessary, but, unfortunately, few people know how to actually go about it. One of the first steps to smart planning is to set clear and realistic goals and expectations for the future. When it comes to your money, you should always be working toward something, whether it’s saving for retirement, your child’s education, or anything in between.

Another major tip to keep in mind is that you do not have to handle financial planning matters on your own, nor should you. There are excellent organizations out there that can assist you with planning for your future and with enjoying your life, free of debt, right now. One of those organizations is Platinum Financial Associates of Naperville, and it’s just a phone call away! You can take the first step toward a better, brighter financial future by calling the office today and speaking with a qualified, experienced financial advisor who will put your needs first.

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Bad News for the Housing Market

Things are not looking up for the housing market. In fact, according to a recent report from The Daily Ticker, sales on previously owned homes have dropped five times in the last six months, with a drop of a whopping 5.1% this past January. Things are going equally badly on the home construction front, with a 16% decline in new home construction in January. While many causes have led to the recent declines in the housing industry, one of the main factors being blamed is an increase in the average student loan debt

amount.

If you never want to see your children in this kind of situation or if you need to get yourself out of a bad financial situation, know that there is help and hope. There are companies, such as Platinum Financial Associates of Naperville, that offer a wide range of financial services that can help you to plan for the future and/or clear up past debts. Get the Naperville financial services help you need by calling today!

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