life crises: how to achieve your financial goals
TRANSCRIPT
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Life Crises: How to Achieve Your Financial Goals
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Budget Your Way to Success
• Use personal finance software• List sources of income• Identify major expenses
o Record every expenditureo Cut expenses if possible
• Monitor regularly
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Budget Your Way to Success
• Cut expenses but pay yourself first• Emergency funds and loans• Sell unnecessary items• Insurance and taxes
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How to Handle Bankruptcy
• Affects your credit• Discharges some debt• Two primary types
o Chapter 7o Chapter 13
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How to Handle Bankruptcy
• Chapter 7o Liquefies assets not exempto Restricts who can file by incomeo Can use only once every 6 years
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How to Handle Bankruptcy
• Chapter 13o Can retain essential propertyo Must complete in 3 to 5 yearso Must pay at least $100 monthly
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How to Rebuild Credit
• Credit counseling serviceo Nonprofit is preferableo Helps organize budgeto Check credentials
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How to Rebuild Credit
• Debt management plan• Debt negotiation programs
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How to Rebuild Credit
• Secured credit cardo Limited to deposited amounto Available after bankruptcy
discharge
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Staying Out of the Red
• Negotiate severance pay• Apply for unemployment• Keep up insurance
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Protect Yourself with Insurance
• Health insuranceo Compare policieso Know limitations and exclusionso Customize
Rider Endorsement
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Protect Yourself with Insurance
• Health insurance alternativeso COBRAo Individual coverageo Trade groupo State-sponsored
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Protect Yourself with Insurance
• Medicaid (Medi-Cal)o Available for certain groupso Directly pays providerso Apply through social services office
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Protect Yourself with Insurance
• Disability insuranceo Deducted by stateo Offered by employero Purchase on own
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Tax Breaks for Job Hunting
• Must seek similar work• Cannot deduct if too long of a gap• Cannot deduct costs of first search• Cannot deduct reimbursements
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Tax Breaks for Job Hunting
• Possible deductionso Résumé o Travelo Relocationo Medical Costs
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Reducing Taxes on Your Estate
• Estate planningo Minimizes tax consequenceso Needed if worth $1.5 million or
moreo Ensures how assets are disposed
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Reducing Taxes on Your Estate
• Make annual gifts• Shield property• Use trusts• Make charitable gifts• Fund a life insurance trust
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Preparing for Your Funeral
• Funeral home not necessary• Be sure to comparison shop
o Get itemized price listo Consider package offers
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Preparing for Your Funeral
• Cemetery considerationso Religious connectiono Restrictions on memorialso Incidentalso Endowment careo Veteran burial
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On behalf of AICPA and CalCPA, thank you!