Life Crises: How to Achieve Your Financial Goals

Life Crises: How to Achieve Your Financial Goals

Budget Your Way to Success Use personal finance software List sources of income Identify major expenses o Record every expenditure o Cut expenses if possible Monitor regularly

Budget Your Way to Success Cut expenses but pay yourself first Emergency funds and loans Sell unnecessary items Insurance and taxes

How to Handle Bankruptcy Affects your credit Discharges some debt Two primary types o Chapter 7 o Chapter 13

How to Handle Bankruptcy Chapter 7 o Liquefies assets not exempt o Restricts who can file by income o Can use only once every 6 years

How to Handle Bankruptcy Chapter 13 o Can retain essential property o Must complete in 3 to 5 years o Must pay at least 100 monthly

How to Rebuild Credit Credit counseling service o Nonprofit is preferable o Helps organize budget o Check credentials

How to Rebuild Credit Debt management plan Debt negotiation programs

How to Rebuild Credit Secured credit card o Limited to deposited amount o Available after bankruptcy discharge

Staying Out of the Red Negotiate severance pay Apply for unemployment Keep up insurance

Protect Yourself with Insurance Health insurance o Compare policies o Know limitations and exclusions o Customize Rider Endorsement

Protect Yourself with Insurance Health insurance alternatives o COBRA o Individual coverage o Trade group o State-sponsored

Protect Yourself with Insurance Medicaid (Medi-Cal) o Available for certain groups o Directly pays providers o Apply through social services office

Protect Yourself with Insurance Disability insurance o Deducted by state o Offered by employer o Purchase on own

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

Tax Breaks for Job Hunting Possible deductions o Résumé o Travel o Relocation o Medical Costs

Reducing Taxes on Your Estate Estate planning o Minimizes tax consequences o Needed if worth 1.5 million or more o Ensures how assets are disposed

Reducing Taxes on Your Estate Make annual gifts Shield property Use trusts Make charitable gifts Fund a life insurance trust

Preparing for Your Funeral Funeral home not necessary Be sure to comparison shop o Get itemized price list o Consider package offers

Preparing for Your Funeral Cemetery considerations o Religious connection o Restrictions on memorials o Incidentals o Endowment care o Veteran burial

On behalf of AICPA and CalCPA, thank you!