August Money Management |
AUGUST 4, 2008
PROTECTING YOUR FINANCIAL PRIVACY
According to the Federal Trade Commission, identity theft is the top consumer complaint that the agency receives. As a result, the Georgia Society of CPAs advises that it’s important to be aware of identity theft schemes, including a common trick called “phishing.” In a phishing scam, the criminal sends e-mails that appear to be from a financial institution, a popular online retailer or even federal agencies, such as the Internal Revenue Service. The e-mails ask the recipient to supply personal information—such as a bank account number or Social Security number—that is later used to make fraudulent transactions or commit other crimes. If you receive a message asking for private data, you should not reply, nor should you click on any links in the e-mails. Instead, contact the supposed sender directly to verify that the message is legitimate. And remember that you CPA can provide advice on how to make prudent financial decisions and protect yourself against fraud. Consult your local CPA on any financial issue facing your family.
AUGUST 11, 2008
WHEN SHOULD YOU BEGIN TAKING SOCIAL SECURITY PAYMENTS?
Choosing when to retire and start drawing Social Security benefits is an important decision, one that is unique to each individual, according to the Georgia Society of CPAs. You can begin taking payments as early as age 62, based on Social Security regulations, but when you retire will have an effect on the amount of the payment you receive. Retiring at age 62, for example, could cut your benefit payments by as much as 25%. In addition, early retirees will face benefit forfeitures for working while receiving benefits.
That means that if you are a healthy person who enjoys working, it’s probably a good idea to continue doing so as long as possible without drawing on Social Security. If you are in poor health, however, it may be best to take your payments as soon as possible. You may also want to retire early if you have a large retirement nest egg and don’t need the maximum Social Security benefit.
If you have questions about when to begin drawing Social Security payments—-or about other retirement planning issues—-be sure to consult your local CPA. He or she can help you find the answers to your family’s financial questions.
AUGUST 18, 2008
UNDERSTANDING MUTUAL FUND FEES
There is nearly $12 trillion invested in the nation’s mutual funds, proving that they are a popular option. But what kinds of fees are you paying on that investment? There are typically charges associated with any investment, according to the Georgia Society of CPAs, and that’s also true of mutual funds. To find out about those fees, the best place to turn is the fund’s prospectus, an important document you should request before making any investment. Among other things, the prospectus will tell you about the fund’s sales load—-a kind of commission—-that’s charged for purchasing shares in the fund. “No-load” funds don’t require this fee, but be aware they may levy other charges, including purchase, redemption and account fees. As a result, no matter what the fund is called, it’s important to know exactly what costs are involved so that you can make an informed decision.
Have more questions about mutual funds or other investment options? Turn to your local CPA for information to help you with all your financial planning needs.
AUGUST 25, 2008
FINANCIAL RECORDS TO KEEP
Every year, taxpayers wade through piles of receipts and other financial records in order to find the information they need to file their taxes. How long do you have to hold on to your records in case of a tax audit or other concern down the road? While there are few hard and fast rules, the Georgia Society of CPAs advises that there is one type of document that you may want to keep for a minimum of 10 years: copies of your tax return. That’s because the Internal Revenue Service may challenge your individual tax return up to three years after it is filed (and longer if the Service suspects tax fraud or intentional underreporting of income). In addition, a lender may ask for records of back income when you apply for a loan. Tax returns also contain a lot of valuable information that you may need for other purposes in the future, including a record of past income, deductions or taxes paid. Supporting documents, such as cancelled checks and receipts, can come in handy, too.
Your local CPA can advise you on the best plan for retaining the financial records you’re most likely to need in the future. Turn to him or her with all your family’s financial questions.
For more information contact Calvin Wong at 404-231-8676, Opt. 5.