Achieving Your Financial Goals: Taxes, Credit and Investing

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Achieving Your Financial Goals Taxes, Credit
and Investing

• Date

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Use Credit Wisely

• An introductory credit-card interest rate can be
  a trap.
• Avoid having multiple credit cards.
• Pay in full every month.
• Pay on time.
• Avoid cash advances.
• Stay within your credit limit.
• Review your statements carefully.

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How to Reduce Debt

• Cut back on spending so you can pay more each
  month.
• Consolidate your debt on one low-rate card.
• Seek out payment options, including discounted
  rates.
• Dont miss payments, and dont default.
• If you own a home, use your equity to get credit.

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Long-Term Savings

• Enroll in your employers 401(k) plan.
• Social Security and pensions may not be
  available.
• Open a traditional or Roth IRA.

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Tax Issues

• Make the system work for you.
• Get a tax credit for any dependent care you
  provide.
• Keep good records to document your deductions.
• Deduct mortgage interest and real-estate taxes.
• Plan your investment gains to minimize taxes.
• Bank your tax refund.

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Youre Lost Without a Plan

• It should address three critical issues.
• An emergency fund.
• Your short-term financial goals.
• Your long-term financial goals.
• When planning investments, consider
• Liquidity.
• Diversification.
• Your personal risk tolerance.

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In Summary

• Emergency fund
• Your short-term goals.
• Your long-term goals.
• Asset allocation is an ongoing process.

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Your Friend, Benjamin

• A joint creation of the AICPA and the Ad Council.
• Help is available at www.FeedthePig.org.
• Take charge of your money and your life!

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Thank You!