Financially Simple

Getting on the path to simplifying your finances, depends on where you are.
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April 25, 2017
missed the tax deadline

Missed the Tax Return Deadline?

The tax deadline for most taxpayers was last Tuesday, April 18, 2017. The IRS has some advice for taxpayers who missed the tax return deadline. File and pay as soon as possible. Taxpayers who owe federal income tax should file and pay as soon as they can to minimize any penalty and interest charges. For taxpayers due a refund, there is no penalty for filing a late return Use IRS Free File. Nearly everyone can use IRS Free File to e-file their federal taxes for free. Taxpayers whose income was $64,000 or less can use free brand-name tax software. Those who made more than $64,000 can use Free File Fillable Forms to e-file. This program uses electronic versions of IRS paper forms. Fillable forms work best for those who are used to doing their own taxes. Taxpayers can file — even if they missed the deadline — using free options on IRS.gov through the Oct. 16 extension period. File electronically. No matter who prepares a tax return, taxpayers can use IRS e-file through Oct. 16. E-file is the easiest, safest and most accurate way to file a tax return. The IRS will send an electronic confirmation when it receives the […]
April 20, 2017
individual retirement accounts; retire with $100,000 per year in income

Can I really retire with $100,000 per year in income?

In a recent meeting with some long term clients, we began updating their comprehensive wealth plan. I vividly remember their specific goal. They wanted to reach retirement with an annual income of $100,000. Years ago when their journey to their financial independence began, this number was out of reach. Now, due to their hard work and persistence, this goal is actually becoming a reality. If you’re asking yourself this question, “Can I really retire with $100,000 per year in income?”, then let’s take a look at how you get there. The Math to Retire with $100,000 per year in Income My client is projected to have roughly a million dollars in retirement account assets when they stop working. If we apply the 4% rule to this amount, we can expect $40,000 in retirement income. Social Security will account for roughly another $40,000 per year, which isn’t an unreasonable benefit amount for those in middle-class. So far we’ve got around $80,000 a year expected during retirement. That’s a $20,000 shortfall. Here’s how we intend to make up for it. Adding Extra Income in Retirement We came up with a game plan for the additional income. Here are some ideas we discussed. If you’re […]
April 19, 2017
epic financial battle

An Epic Financial Battle! Dave Ramsey vs Robert Kiyosaki!

  An Epic Financial Battle Hey, guys! It’s Justin Goodbread with Financially Simple. I’m in the conference room today and we’re going to have an epic financial battle. Dave Ramsey vs. Robert Kiyosaki. Dave Ramsey is famous for his Financial Peace series and Robert Kiyosaki is known for his book “Rich Dad, Poor Dad.” Which strategy is right for you? Is one right and the other wrong? Not necessarily. They’re just different. Let’s look at the differences in how they approach finances! They have completely opposing views when it comes to some aspects of finances. We’re going to take their top seven strategies and dissect them. How closely should you follow either plan? Will either plan make you rich? What exactly do they offer that you can incorporate into your own financial strategy? Many consider both well known financial “experts” that offer advice to move your finances in the right direction. After we break down both trains of thought, I’ll tell you exactly where I stand when it comes to both of camps. The answer may surprise you! Always remember, no system or financial planning strategy can guarantee future results.  Therefore, no current or prospective client should assume that future performance or any specific […]
April 18, 2017

What to Do When an IRS Letter Arrives in the Mail

It’s Tax Day! Whether you filed on time or early, you may still get an IRS letter in the mail. What should you do if you are one of the ones that get something? First, know that the IRS mails millions of pieces of correspondence every year to taxpayers for a variety of reasons. What to Do When an IRS Letter Arrives in the Mail Below are some suggestions on how to best handle a letter or notice from the IRS: Do not panic. Simply responding will take care of most IRS letters and notices. Most IRS notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and provides specific instructions on what to do. Careful reading is essential. A notice may likely be about changes to a taxpayers’ account, taxes owed or a payment request. Sometimes a notice may ask for more information about a specific issue or item on a tax return. If a notice indicates a changed or corrected tax return, review the information and compare it with your original return. There is usually no need to reply to a notice unless specifically instructed to do so, or to make a […]
April 12, 2017
hire a cpa, taxes

Hire a CPA!

Hire a CPA! Hey, guys!  This is Justin Goodbread with Financially Simple. I’m holding two books. We’re going to talk about these. I want to illustrate one of the biggest mistakes I see business owners make. So what do I have? Let’s talk about this book first. This the manual to my 2007 Nissan Murano. So that’s how much of this book, not much, about 2 pages which are dedicated to oil changes. If I go down to Walmart just down the road here and buy the five quarts of oil which my owners manual says I need in the oil filter. It’s going to cost about $13.43. Not bad. I do have the option though to go to like a Jiffy Lube and I can go to the Jiffy Lube and they’re going to charge me about $45 to change the oil. Yeah, they’re going to do some extra little things, but for the most part, they’re going to change my oil for $45. If instead of going to Jiffy Lube I went down to Walmart and I changed the oil myself, I would save about $125 over the course of a year. Not bad. But we’re only dealing […]
April 11, 2017

Tips to Know about the Home Office Deduction

Taxpayers who use their home for business may be able to deduct expenses for the business use of it. Qualified persons can claim the deduction whether they rent or own their home. Use the simplified method or the regular method to claim a deduction. Here are six tips to know about the home office deduction: 1. Regular and Exclusive Use. Generally, taxpayers must use a part of their home regularly and exclusively for business purposes. The part of a home used for business must also be: A principal place of business, or A place where taxpayers meet clients or customers in the normal course of business, or A separate structure not attached to the home. Examples could include a garage or a studio. 2. Simplified Option. To use the simplified option, multiply the allowable square footage of the office by a rate of $5. The maximum footage allowed is 300 square feet. This option will save time because it simplifies how to figure and claim the deduction. It will also make it easier to keep records. The rules for claiming a home office deduction remain the same. 3. Regular Method. This method includes certain costs paid for a home. For […]
April 6, 2017

Top Financial Mistakes Self-Employed​ Doctors Make

If you’re a physician, then you attended one of the best medical schools in the world. Why? Because you live in the U.S. However, you may be struggling to make reach your financial goals, despite a hefty salary. Physicians are some of the most unique investors out there. Not only do physicians have a higher student debt, they also have higher liability risks, an above-average income, and a complex situation to start with. Here are the top financial mistakes self-employed doctors make and what you can do to change your future. What’s So Different for Physicians? First off, physicians go through years school, meaning they finally begin their career around 27. However, with a residency, it could even be as late as 30 before they potentially start. A much later start could hinder investment options early on leading to some poor decisions. Next, roughly more 60% of all physicians owe more than $150,000 by the end of their education; only 17% owe absolutely no debt whatsoever. Shockingly, three-quarters of doctors that specialize in low-risk areas receive some sort of malpractice claim against them before the age of 65. This statistic alone clearly shows the higher liability risk than most industries. Finally, an ever-changing […]
April 5, 2017
Debt Reduction

What Debt Should I Pay Off First?

Hey, guys! This is Justin Goodbread with Financially Simple. So if there is one question I get quite frequently, it is, “What debt should I pay off first?” In fact this last week I had an entrepreneurial doctor in our office. He’s freed up about $1000 a month. Many people will say, “Use the debt snowball.” It’s a good idea. Some will say, “Knock out the highest interest first.” That’s a great idea and may work for you. He actually has 3 types of debt left. He has his mortgage, his student loan and business loan.That’s it. Kudos to him. No car loans. No credit cards. He’s in good shape. If you become disabled or die, your student loan goes away. It’s typically forgiven or cast away. If you become disabled or pass away, then your mortgage is obviously there. That leaves us with the business debt. The business debt when he acquired this particular practice, he took out a huge note, and the bank encumbered the practice, and now he’s trying to knock out the debt. We looked at all things. We looked at the interest. We looked at the student loan, and the interest on the business note […]