securities offered through j w cole financial inc., member finra/sipc sankofa financial group llc...

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


About Sankofa Financial Group

Virginia Jackson – President CPA Registered Representative, JW Cole Financial Inc

Tax, Investment, Business Management services Small business owner


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


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


Elements of a Financial Plan

Notes Budget Emergency Fund Debt Management Savings Investing Insurance Education Planning Retirement Planning Tax Planning Estate Planning


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


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


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


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


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


Insurance

Notes

Angela Watkins, Liberty Mutual


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


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


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


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


Estate Planning

Notes Financial Planner Accountant (CPA) Insurance Lawyer


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


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


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


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


Island Flavors Restaurant


Free Financial Check Up

Schedule an appointment today for your free financial review


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

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