Post on 31-Dec-2015
transcript
Section 9.4
Organizing Your Records
Why keep records?For identification—some forms of
identification are good to keep safe at home, and do not need to be carried with you.
For legal proof—You may need to prove ownership or that you have made a payment.
For loan applications—all assets and income need to be established before a loan can be received.
For tax purposes—keep a record of all needed information to file for the next year, as well as records from the last 7 years.
Why keep recordsFor budgeting purposes—know what you
spent in the past can help in the present.To verify transactions—For reference—as you move toward more
legally complicated transactions record will come in handy.
For medical reasons—A record of past treatment, allergies, etc.
How long to keep documentsDocument How long to keep.
Bank statements and cancel statement
6 years
ATM receipts Until verified with bank statement
Credit card statements 3 years
Credit card receipts Until verified with statement
Utility bills 3 months
Repair records and warranties Until you get rid of the item
Pay stubs Until verified with W-2
Tax returns and documents 7 years
Real estate and property taxes 1 year past last transacton
Options for keep records safeSafety deposit boxHome safe or lock boxHome filing systemElectronic storageWallet
Section 9.5
Professional Advice
What help do you need?Financial professionals can help you plan
and manage your finances in exchange for a fee:Assistance with tax returnsGive advice about investingCheck over contracts.
Who is qualified?Qualified financial professionals have
credentials (licenses, certifications, or degrees that indicate that a person is qualified to perform a certain service). 1. Certified Financial Planner (CFP)
Completed specialize trainingPassed a rigorous examMust take additional training every year.Three years of financial work experience.
Who is qualified?2. Chartered Financial Consultant (ChFC)
CFP’s who complete additional course work in financial planning.
•3. Certified Public Accountant (CPA)•Licensed in the state in which they practice•Give tax advice, investment advice and financial planning
Who is qualified?4. Insurance agent
Specializes in the insurance aspect of financial planning
Licensed by the state in which they practice.5. Attorney
Prepares a willReviews documents connected with a home
purchasesEnforces contractsHandles complicated tax situations
Who is qualified?6. Stockbroker
Specializes in buying and selling stockMust be licensed by the state where they
practice.
Fees and Commissions:Some financial professionals are paid a set fee
for their services, others earn a commission and some are paid by a combination of fees and commission.
WHEN CHOOSING A PROFESSIONAL, ASK FOR INFORMATION ABOUT CREDENTIALS, SERVICES AND FEES IN ADVANCE!!!!