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 $2,500 18.24%

MasterCard $3,000 9.99%

Target Card $1,500 8.49%

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 724834

Atlanta, GA 31139

Email : sspencer@accessfinmgmt.com

Office : (404) 592-4418

Fax : (404) 592-4418