Access Financial University Establishing your Financial Foundation

Access Financial University Financial Basics – October 19, 2005 Retirement and Investment Planning – November 16, 2005 Tax Planning – December 14, 2005 Putting your Financial Plan in Motion – January 11, 2006

Shannon S. Shareef, CPA Bachelor’s Degree – University of TN – Knoxville Masters of Accountancy (Concentration in Taxation) – University of TN – Knoxville Certified Public Accountant Member of American Institute of Certified Public Accountants – 360 Degrees of Financial Literacy Member of Georgia Society of Certified Public Accountants

Startling Financial Facts The Roper Poll commissioned by the AICPA found the following startling facts: – 66% of Americans say they first learned about the need for financial planning by the time they reached age 30. – If a financial emergency occurred, 51% of Americans say they would borrow from family and friends while 24% would file bankruptcy.

Financial Basics Organize your Financial Records Determine your Net Worth Analyze your Income and Expenses Reduce Debt Increase Savings

Organizing your Financial Records Financial Records: Policies Insurance Policies (Auto, Home, Life) Settlement Statements (Closing Documents) Loan Information (Student, Car, Home, Personal) Credit Information (Credit Reports, Credit Scores) Bank Statements Financial Records: Tracking Utility Bills – Telephone (LAN and Cell) – Water – Electricity – Gas – Cable (or Dish) Credit Card Bills Mortgage Statements

Organizing your Financial Records Retirement/Investing Statements: – Savings Account – Money Market Accounts – 401(k) – IRA Payment Stubs Social Security Statements Tax Planning All Tax Returns (Federal and State) including any supporting documentation All notices from any Federal and/or State Tax Authorities Copies of all Tax Bills Copies of all Tax Receipts Copies of any Tax Related Event

Determine your Net Worth What is Net Worth ? Net Worth is an overall picture of your Financial Health.

Assets “If it’s on your ass, its not an asset” Assets – Items that you own that have monetary value or income-producing potential

Liabilities Liabilities – Items that you owe that do not have monetary value and reduce your income- producing potential

Calculating your Net Worth Assets – Cash – Retirement Accounts (401(k), IRA) – Insurance (Cash Value) – Investment Accounts (Stocks, Bonds, Mutual Funds) – Market Value of: Home Car – Jewelry and other Collectibles Liabilities – Mortgages – Loans Student Car Bank Personal – Credit Cards – Taxes Owed Real Estate Income – Other Debts

Calculating Net Worth Establish Goals – Reduce Credit Card Debt – Re-evaluate other Debt Obligations – Increase contributions to Retirement Plans – Increase Savings

Credit Cards (Example) VISA$2, % MasterCard$3, % Target Card$1, %

Credit Cards Identify credit card purchases Adjust the minimum payment Adjust the payment schedule Zero percent interest credit cards ?

Analyzing your Income and Expenses : Creating a Budget Income – Salaries, Wages – Interest Income – Gifts of Money Expenses – Utilities – Loan Payments – Tax Payments – Medical Payments (co- pays) – Insurance Payments – Gifts of Money

Income Identify the types of income – Full time jobs – Part-time jobs – Interest Income – Social Security – Alimony Identify the frequency of income – Weekly – Bi-Weekly – Monthly

Expenses Identify your “normal” monthly expenses Identify expenses that are paid on a quarterly or yearly basis and calculate what it costs you per month – For example, you pay car insurance of $300 on a quarterly basis. This equates to $100 per month. Track your expenses for at least a month to get a “true” picture of what you spend on a daily basis.

Budgeting Once you have identified your income sources and tracked your expenses for a month, you are ready to create your monthly budget.

Budgeting Steps Enter Total Monthly Income and Total Monthly Expenses Allocate your expenses – Based upon your income and/or – Based upon the “Due Date” Re-evaluate all expenses – Do you really need to spend $100 on clothes every month ? Re-allocate your expenses to meet your goals

How well are you doing ? You should re-evaluate your Budget on a monthly basis to account for special occasions and holidays You should re-evaluate your Net Worth once a quarter to make sure you are in line with your financial goals.

Saving Ideas Maximize your 401(k) Contributions Automatic Savings – Automatically have your savings withdrawn Direct Deposit into your Savings Account and make transfers to your Checking Account

Places to Save Emigrant Direct/HSBC Direct – 5.05 % APY ING Direct – 4.40 % APY Certificates for Deposit (Short-Term) Money Market Accounts

Contact Us Access Financial Management, LLC c/o Shannon S. Shareef, CPA P.O. Box Atlanta, GA Office : (404) Fax : (404)