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Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Sankofa Financial Group LLC and Island Flavors Restaurant
Present
Getting the Most from Your Money inDifficult Financial Times
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
About Sankofa Financial Group
Virginia Jackson – President CPA Registered Representative, JW Cole Financial Inc
Tax, Investment, Business Management services Small business owner
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Why Do you Need a Financial Plan?
Best way to stretch your money is to have a plan No matter how much money you have, the
principles of financial planning apply to you Financial needs and goal change over time Most projects fail due to lack of planning
Notes
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Setting Financial Goals
Notes Set short term and long term goals Don’t be afraid to think big Write goals on paper Goals should be measurable and realistic Use specific time frames and numbers Expect to achieve your goals
“Your attitude is your altitude” Include a family members
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Elements of a Financial Plan
Notes Budget Emergency Fund Debt Management Savings Investing Insurance Education Planning Retirement Planning Tax Planning Estate Planning
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Creating a Budget
Notes Know your income and outflow Fixed vs variable expenses Expenses cannot exceed income
Earn more income Decrease outflow
Write it on paper Track actual spending monthly
Microsoft Money, Quicken Excel spreadsheet Pen & paper Envelope system Mint.com
Adjust periodically as circumstance change
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Why Do You Need an Emergency Fund?
Notes 6-9 months of expenses Housing Auto Utilities Groceries Insurance
Start small Automatic payroll deduction Treat it as a bill – pay yourself Limit your access to the account Save gifts, bonus or tax refund Find additional income sources to fund account
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Debt Management
Notes Top two approaches Smallest balance Largest interest rate
Include: Credit cards Mortgage Car Loans Unsecured Personal Loans
June 29th Seminar You Can Get Out of Debt: A Practical Approach to
Debt Management
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Savings Plan
Notes Set goals – what are you saving for Prioritize – when do you need the funds
Short term – vacation, furniture, auto, wedding Mid term – mortgage down payment, starting
business Retirement
Similar to emergency fund principles When debts are paid – shift funds to savings
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Investing
Notes Do it yourself or use a financial advisor? Your financial advisor should
Understand your current financial position Understand your risk tolerance Support your financial goals Track performance Make recommendations, you make the final
decision You should
Choose an advisor you trust Understand fees/charges Make educated decisions
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Insurance
Notes
Angela Watkins, Liberty Mutual
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Saving for Education
Notes Coverdell Education Savings Account
Account established for beneficiary Income limitations Non-deductible (after tax) contributions - $2,000/yr
per beneficiary Account grows tax free Withdrawals are tax free if used within guidelines Elementary, secondary, post-secondary expenses
Prepaid Tuition Plan College Savings Plan (529 Plan) Upromise.com Hope Tax Credit Lifetime Learning Credit
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Retirement Planning for Individuals
Start saving early Thrift Savings Plan (TSP) Individual Retirement Account
(IRA) Roth IRA 401 (k)
Notes
Age Annual Savings
Years to Save
Amount at 65
25 $2,259 40 $1million
35 $6,079 30 $1million
45 $17,459 20 $1million
55 $62,745 10 $1million
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Retirement Plans for Small Businesses
Notes Simplified Employee Plan (SEP) IRA Individual 401(k) (Roth 401(k)) Keogh Plan (Profit sharing, Money Purchase_ Savings Investment Match Plan for Employees
(SIMPLE) IRA IRS Publication 560
Retirement plans for small businesses Considerations
Administration and fees Contribution limits Tax implications
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Tax Planning
Notes Goal: Reduce or defer tax payments American Recovery & Investment Act 2009
Individuals - $400 credit, $95k salary phase out Married - $800 credit, $109k salary phase out Tax deduction for sales tax on new car purchases
up to $49,500 Self employment tax issues
Business deductions Self employment tax Estimated tax payments June 29th seminar – Accounting and Record
Keeping for Small Businesses Using a CPA vs an accountant/bookkeeper
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Estate Planning
Notes Financial Planner Accountant (CPA) Insurance Lawyer
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Stretching Your Dollars Money Management
Create a budget and stick with it Track spending habits Use online bill pay Pay more than monthly minimum payment on
debt Apply for scholarships/fellowships Pay in cash Avoid ATM fees Avoid credit cards with annual fees No fee checking accounts Barter Avoid late fees – pay bills on time Refinance mortgage Eliminate credit card debt Involve the entire family – make it fun Submit rebates Rewards credit cards Increase insurance deductibles Always ask for fees to be waived Live on one income Buy term life insurance Use flexible spending accounts Pay car insurance semi-annually Ask credit card company for rate reduction Get rid of private mortgage insurance
Additional Income Learn to sew Deliver pizzas/newspapers Hold a garage sale Cut grass/shovel snow Tutor Clean homes Substitute teach Baking Babysitting Pet sitter/walk dogs Sell bottled water Wash cars Put items on consignment Look for jobs/sell stuff on Craigslist
Household Wash full loads of laundry and dishes Reuse plastic sandwich bags Create a compost heap Plant a garden Groom pets yourself Use a clothes line to dry clothes Have furnace serviced regularly Turn down temperature on water heater Repair damaged clothing
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Stretching Your Dollars Entertainment/Travel
Matinee movies Red Box movie rentals - $1 Borrow books from the library Free concerts in the park Free museums Cancel unread magazine subscriptions Buy used books Travel during off season Pack food for road trips Travel early in the morning Stay in hotels with cooking facilities Don’t eat out Invite friends over instead of going out Swap babysitting with neighbors
Grocery Shopping/General Shopping Avoid vending machines/convenience stores Avoid impulse buying Shop at consignment stores Shop at dollar store for cleaning supplies Goodwill Shop sales/comparison shop Add memory to computer instead of buying new Buy cloth diapers Buy out of state to save on sales tax Buy furniture direct from manufacturer Do holiday shopping right after holidays Pass on extended warranties Prepare list when grocery shopping Coupons Buy fresh foods instead of prepared/frozen Shop at farmer’s market Buy in bulk Buy store brand products By water filter instead of bottled water Read unit price labels Cook meal that last several days Buy rechargeable batteries
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Stretching Your Dollars Health Care/Personal Care
Get hair done at local beauty school Ask for generic prescription drugs Cut your own hair Cancel unused gym memberships Drink water instead of soda, juice, coffee Stop smoking
Gift Giving Re-gifting Give handmade gifts
Work Make morning coffee at home Pack you lunch Ride share Take metro, walk, bicycle
Utilities Adjust thermostats lower Close vents in unused rooms Cut cable bill Cut cell phone bill VOIP telephone service Combine cable, internet, phone bill Buy fluorescent light bulbs
Automobiles Perform regularly scheduled maintenance Properly inflate tires Buy used cars Buy cars online Buy a fuel efficient car
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
WHERE TO GET HELP
360financialliteracy.org IRS.gov Annualcreditreport.com – must pay for FICO score Investopedia.com Bankrate.com Money.cnn.com Smartmoney.com Credit.com FTC.gov (Federal Trade Commission) Feedthepig.com
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Island Flavors Restaurant
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Free Financial Check Up
Schedule an appointment today for your free financial review
Securities offered through J W Cole Financial Inc., member FINRA/SIPC
Virginia Frazier Jackson, CPA
www.sankofafinancial.net [email protected] 202-213-2116
Upcoming Seminars
June 22 – You Can Get Out of Debt: A Practical Approach to Debt Management
June 29 – Accounting and Record Keeping for Small Businesses