access financial university establishing your financial foundation
TRANSCRIPT
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Access Financial University
Establishing your Financial Foundation
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Access Financial University
Financial Basics– October 19, 2005
Retirement and Investment Planning– November 16, 2005
Tax Planning– December 14, 2005
Putting your Financial Plan in Motion– January 11, 2006
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Shannon S. Shareef, CPA
Bachelor’s Degree – University of TN – Knoxville
Masters of Accountancy (Concentration in Taxation) – University of TN – Knoxville
Certified Public Accountant
Member of American Institute of Certified Public Accountants– 360 Degrees of Financial Literacy
Member of Georgia Society of Certified Public Accountants
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Startling Financial Facts
The Roper Poll commissioned by the AICPA found the following startling facts:– 66% of Americans say they first learned about the
need for financial planning by the time they reached age 30.
– If a financial emergency occurred, 51% of Americans say they would borrow from family and friends while 24% would file bankruptcy.
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Financial Basics
Organize your Financial Records Determine your Net Worth Analyze your Income and Expenses Reduce Debt Increase Savings
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Organizing your Financial Records
Financial Records: Policies
Insurance Policies (Auto, Home, Life)
Settlement Statements (Closing Documents)
Loan Information (Student, Car, Home, Personal)
Credit Information (Credit Reports, Credit Scores)
Bank Statements
Financial Records: Tracking
Utility Bills– Telephone (LAN and Cell)– Water– Electricity– Gas– Cable (or Dish)
Credit Card Bills Mortgage Statements
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Organizing your Financial Records
Retirement/Investing Statements:
– Savings Account– Money Market Accounts– 401(k) – IRA
Payment Stubs Social Security Statements
Tax Planning All Tax Returns (Federal
and State) including any supporting documentation
All notices from any Federal and/or State Tax Authorities
Copies of all Tax Bills Copies of all Tax Receipts Copies of any Tax Related
Event
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Determine your Net Worth
What is Net Worth ?
Net Worth is an overall picture of your Financial Health.
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Assets“If it’s on your ass, its not an asset”
Assets – Items that you own that have
monetary value or income-producing
potential
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Liabilities
Liabilities – Items that you owe that do not have monetary value and reduce your income-producing potential
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Calculating your Net Worth
Assets– Cash – Retirement Accounts
(401(k), IRA)– Insurance (Cash Value)– Investment Accounts
(Stocks, Bonds, Mutual Funds)
– Market Value of: Home Car
– Jewelry and other Collectibles
Liabilities– Mortgages– Loans
Student Car Bank Personal
– Credit Cards– Taxes Owed
Real Estate Income
– Other Debts
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Calculating Net Worth
Establish Goals– Reduce Credit Card Debt– Re-evaluate other Debt Obligations– Increase contributions to Retirement Plans– Increase Savings
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Credit Cards (Example)
VISA $2,500 18.24%
MasterCard $3,000 9.99%
Target Card $1,500 8.49%
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Credit Cards
Identify credit card purchases
Adjust the minimum payment
Adjust the payment schedule
Zero percent interest credit cards ?
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Analyzing your Income and Expenses :Creating a Budget
Income– Salaries, Wages– Interest Income– Gifts of Money
Expenses– Utilities– Loan Payments– Tax Payments– Medical Payments (co-
pays)– Insurance Payments– Gifts of Money
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Income
Identify the types of income– Full time jobs– Part-time jobs– Interest Income– Social Security– Alimony
Identify the frequency of income– Weekly
– Bi-Weekly
– Monthly
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Expenses
Identify your “normal” monthly expenses Identify expenses that are paid on a quarterly or
yearly basis and calculate what it costs you per month– For example, you pay car insurance of $300 on a
quarterly basis. This equates to $100 per month. Track your expenses for at least a month to get
a “true” picture of what you spend on a daily basis.
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Budgeting
Once you have identified your income sources and tracked your expenses for a month, you are ready to create your monthly budget.
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Budgeting Steps
Enter Total Monthly Income and Total Monthly Expenses
Allocate your expenses– Based upon your income and/or– Based upon the “Due Date”
Re-evaluate all expenses– Do you really need to spend $100 on clothes every
month ?
Re-allocate your expenses to meet your goals
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How well are you doing ?
You should re-evaluate your Budget on a monthly basis to account for special occasions and holidays
You should re-evaluate your Net Worth once a quarter to make sure you are in line with your financial goals.
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Saving Ideas
Maximize your 401(k) Contributions
Automatic Savings – Automatically have your savings withdrawn
Direct Deposit into your Savings Account and make transfers to your Checking Account
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Places to Save
Emigrant Direct/HSBC Direct – 5.05 % APY
ING Direct – 4.40 % APY
Certificates for Deposit (Short-Term)
Money Market Accounts
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Contact Us
Access Financial Management, LLC
c/o Shannon S. Shareef, CPA
P.O. Box 724834
Atlanta, GA 31139
Email : [email protected]
Office : (404) 592-4418
Fax : (404) 592-4418