Six Tips for Tax-Smart Charitable Giving

tips charitable givingWhen done the right way, charitable contributions can lower your tax bill. Of course, this only applies if you itemize your deductions.  If you take the standard deduction, you're not eligible to deduct charitable contributions from your tax bill. Here are some key pointers in giving to charity while also reducing your tax burden. 1. Audit the charity. This tip isn't even tax-smart - it's just the first thing you should consider in giving, and a way to ensure that your money is going to the right cause. Guidestar keeps records of a charity's actions so philanthropists can audit them for their legitimacy, impact and finances. Sign up for a free account and you … [Read more...]

Why Long-Term Care Is Important

Even a well-developed investment plan can fail for reasons that have nothing to do with investments.  It could fail because the family breadwinner dies prematurely and doesn't have enough life insurance to cover her loved ones.  Or it could fail because of an auto accident that results in a large judgment, and there's insufficient liability insurance in the form of an umbrella policy. This is why it's critical to integrate an investment plan into an overall estate, tax, and risk management (insurance) plan.  One area of concern that is all-too-often overlooked is the need for long-term care insurance (LTCI). According to a survey by Sun Life Financial (SLF), there's a major disconnect … [Read more...]

Goal Setting – Where are you going?

As the famous philosopher and hall of fame catcher, Yogi Berra once said, "If you don't know where you are going, you might wind up someplace else." Unfortunately, this is exactly how most people run their family finances.  The focus of your financial plan today should be on goal setting and developing such a compelling vision for your future that you can't wait to get out of bed in the morning and work towards that vision. A good starting point for goal setting is to think about how you'd like to spend your future time - the details of each day, week, month, and year.  Don't assume that you must punch the clock each day; developing the vision doesn't mean that you'll be starting next … [Read more...]

Eight Commandments of Building a Strong Financial Foundation

commandments financial foundation 1. Compare your monthly income versus your monthly expenses.  Establishing a spending plan can help you get a hold of your financial situation.  Live within your means and do not spend more than you make! 2. Pay off credit card balances each month.  If you have current credit card debt, attack it each month by paying more than the minimum payment and go for the smallest balance first.  When the first card is paid, add that amount to the payments on the second card.  Repeat for the next card, and keep going until you've paid them all. 3. Create a "safe and sound" fund.  Build a cash reserve of 6 months (or more) of your living expenses.  It may be a … [Read more...]

Best Ways to Give Your Heirs Money While You’re Alive

Several years ago, a new theme emerged in the financial planning industry. Clients were beginning to truly worry about their children's financial futures. Increasingly, the demand to find ways to assist their kids now, rather than waiting to leave them money and assets in their wills, is on the rise. The parents in their 50s and 60s want to be here to watch and enjoy seeing the ways their children will benefit from their generosity. If you find yourself thinking along these lines, you are not alone. Below are some smart planning ideas you can employ to make financial gifts to your adult children and a little cautionary advice... A great gifting plan involves many moving parts: … [Read more...]

Midyear Budget Checkup: Are your current finances still healthy?

When you're halfway through the year, it's time for a fiscal checkup. Just as you do with your annual physical, you need to determine if your budget is healthy or if expenses are bleeding enough red ink to cause financial anemia. Are you shedding pounds of debt or are you over-stressed? Will you reach your goals for savings this year? Will you have enough to spend on splurges or holiday gifts? Examining your current financial health is going to take more than simply confirming that you have money in your checking account. We hope you are using some sort of online tool or spreadsheet software. If not, you need a complete physical. Like the familiar, "I'm going to lose 10 pounds" New … [Read more...]

Stretch Your Retirement Nest Egg So It Lasts as Long as You

During the month of May, Vermillion Financial Advisors work with their clients to review their retirement goals and work to make sure their retirement plans are on track. We would like to provide you, our readers, with an article to supplement your retirement planning process! Americans are living longer than ever before, with an average lifespan that, according to U.S. government figures, has increased from 73.7 years in 1980 to 78.3 in 2010 and a projected 79.5 by 2020. While that means more time to enjoy life, it also presents a dilemma: How are we going to make sure our money lasts a lifetime so we can keep living the lifestyle in which we're accustomed, whether we live until 70, 80, … [Read more...]

How Do You Know When It’s Time to Sell?

how do you know when it's time to sellIn April, Vermillion Financial Advisors review their clients' investment portfolios and their financial objectives. To supplement this work, VFA has chosen to provide you, our readers, with an article to provide more insight into your investments. Most investors have a process for purchasing an investment. It usually involves performing research, comparing similar investments or investment types, and considering a number of more personal factors, including time horizon, risk tolerance and goals. Few investors, however, have a tried-and-true process for selling an investment. Yet knowing when to sell can be every bit as important as knowing what to … [Read more...]

Five Red Flags of Tax Returns

red flags tax returns In March, Vermillion Financial Advisors prepare their clients for the upcoming tax season. We would like to provide you, our readers, with an article to supplement you in the preparation process of your taxes! Audits normally total just over one percent of total tax returns filed, with big income and very low income earners more likely to get flagged. You may have heard that the government needs revenue, so audits are expected to increase. Let's look at five red flags to keep in mind when preparing a tax return.       1. Unrealistic Deductions For the typical tax return, the IRS is interested in seeing deductions in line with other … [Read more...]

Ten Questions When Planning for Financial Security

questions planning financial securityIn February, Vermillion Financial Advisors review their clients' financial inventories and their cash-flow management. To supplement this work, VFA has chosen to provide you, our readers, with an article on how to decide what's important in your financial inventories. When thinking about how to protect your livelihood or build the financial resources you will need to live life as desired, answer these 10 questions first. 1. What is important to me? Before thinking about the right financial products for your needs, clarify what's truly important to you -- the people you care about, the aspirations you have, the things you want to protect, and the … [Read more...]