Be Prepared If Disaster Strikes

Are you ready if disaster strikes?

Friends of mine recently lost almost everything they owned in a house fire. Although they were covered by insurance and will have the house rebuilt, they are spending endless hours documenting losses and replacing lost records. With the recent hurricane warnings, wild fires and floods it is good to have your Financial House In Order.

How can you be prepared?

• Keep a list of important documents and their location.
• Keep copies of documents and back up electronic files.
• Keep a list of important contacts and phone numbers
• Videotape your home to document contents

What documents are important?

• Estate Planning Documents: Wills, Trusts, Advance Healthcare Directives or Living Will, Power of Attorney for Healthcare, Power of Attorney for Property, DNRs, etc.
• Insurance Documents: Life Insurance Policies, Accident and Health Insurance Policies, Auto and Property Insurance Policies, etc.
• Financial Documentation: Tax Returns and supporting documentation, Loan Documents including mortgages, education loans and any other personal loans, Real Estate Deeds, Titles, Investments including Retirement Accounts, Pensions, Savings Bonds, Bank Accounts, Stock Certificates, Brokerage Accounts, Mutual Funds, Stock Options, etc.
• Other Important Documents: Birth Certificates, Marriage Certificates, Social Security Cards, Divorce Decrees, Death Certificates, Military Discharge Papers, Passports, Family Records, Medical Records, Safe Deposit Box info, etc.

What contacts are important?

• Family members and friends, Medical - Doctors and Dentists, Financial Advisor, Tax Preparer, Insurance Companies/Agents, Attorneys, Executors

Other Resources to be prepared for disaster:

IRS: http://www.irs.gov/businesses/small/article/0,,id=180547,00.html?portlet=7

FEMA: http://www.fema.gov/pdf/library/pfd.pdf

Harvard Health: http://www.health.harvard.edu/downloads/preparing_for_disaster.pdf

Ready America: http://www.ready.gov/america/getakit/

NAPFA Consumer Webinar Oct 1st

NAPFA will present the next in it's series of Free Consumer Webinars: Financial Management of an Aging Parent on Friday, October 1st.

Instructor Cheryl Sherrard, AAMS, ATP, CFP^®

^{NAPFA-Registered Financial Advisor}

Many Americans are faced with the reality that they will be responsible for managing the financial needs of aging parents. From paying for housing and health care costs to addressing estate planning needs, ensuring that Mom and Dad are taken care of can take a considerable amount of time. This session will address what you can do today to begin planning for their needs tomorrow.

Sign up for "Financial Management of an Aging Parent" on the NAPFA website at http://www.napfa.org/calendar/calendar/event.asp?EVENT_ID=1051&

Seven lessons learned from my father's death Robert Powell - MarketWatch

Seven lessons learned from my father's death Robert Powell - MarketWatch

Everyone should read this!

Without a Financial Plan, Women's Long-Term Outlook at Risk

The Great Recession has changed our lives in many ways. One positive result is that it has helped women to become more educated about their finances. A recent study shows that 95% of women are involved in making financial decisions yet most do not have a financial plan in place and many look for help in the wrong places. Good resources to find a Fee-Only Advisor who will be a fiduciary are NAPFA or the Garrett Planning Network.

Read more in Ruthie Ackerman's July 28th article:

http://www.financial-planning.com/news/women-financial-prudential-2668099-1.html?ET=financialplanning:e1792:2120299a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=FP_Retirement_Planning_081910

Retirement Account Rollover Chart

Wondering what retirement accounts you are allowed to roll into another type of retirement account? The following chart has been published by the IRS:

IRS Rollover Chart

Find an AARP Tax-Aide Site Near You!

From February 1 through April 15th each year, the AARP Tax-Aide program offers free one-on-one counselling, as well as assistance on the telephone and internet to help individuals prepare basic tax forms, including the 1040, 1040A, 1040EZ and other standard schedules. For a site near you go to: https://locator.aarp.org/vmis/sites/tax_aide_locator.jsp

Did You Receive Economic Recovery Last Year?

The IRS has developed the “Did I Receive an Economic Recovery Payment?” look up tool which gives taxpayers an easy way to determine if they received the one-time ERP payment and which agency made the payment.

Beginning today March 8, 2010, taxpayers can call 866-234-2942 to access the phone application. The Web application will be available in late March on IRS.gov.

Taxpayers who had earned income in 2009 or are government retirees and received an Economic Recovery Payment need to report whether or not they received an ERP and the amount when they prepare their Schedule M, Making Work Pay and Government Retiree Credits.

The onetime $250 ERP was paid to individuals in the following categories:

• Retirees, disabled individuals and Supplemental Security Income (SSI) recipients receiving benefits from the Social Security Administration,
• Disabled veterans receiving benefits from the U.S. Department of Veterans Affairs, and
• Railroad Retirement beneficiaries.

Using the IRS look up tool taxpayers will have to enter three pieces of information to determine if they received an ERP:

• SSN
• Date of birth
• Zip code from the last filed return

A separate telephone call or Web inquiry must be made for each taxpayer, even if filing a joint tax return.

How Is Your Financial Advisor Paid?

I have chosen to work as a Fee-Only FInancial Planner because I feel it is the most objective way to give financial advice. I have taken the Fiduciary Oath. Evergreen Financial Planning provides financial and tax advice on an hourly-as-needed based.

Commissioned Professionals: If you aren't sure how your Financial Advisor is getting paid, chances are thy are earning commissions. Your broker or insurance professional earns a commission whenever they sell you a stock, mutual fund, annuity or one of the many products that trigger a sales charge. Sounds like a conflict of interest to me!

Fee-Based Advisors: Fee-based professionals also receive monetary reward for the products they sell. With fee-based accounts, brokers can charge customers a flat fee or a percentage of the value of the account. Sounds like a conflict of interest to me!

Fee-Only Advisors: A Fee-Only Financial Planner does not sell securities or insurance. There is not the conflict of interest which exists with the other types of "advisors" because recommendations for investments are not made based on the size of the commission. The fee-only advisor works for you.

AUM: Some advisors charge a fee for Assets Under Management. They are compensated by charging a percentage of the market value of the assets they manage on behalf of their clients

What is a Fiduciary?

The five core principles of the authentic fiduciary standard say it well. They are:

• Put the client's best interest first;
• Act with prudence; that is, with the skill, care, diligence and good judgment of a professional;
• Do not mislead clients; provide conspicuous, full and fair disclosure of all important facts;
• Avoid conflicts of interest; and
• Fully disclose and fairly manage, in the client's favor, unavoidable conflicts.