Depending on your perspective, this can feel like a double-whammy.

Certainly, as with children, it’s always a better idea to focus on the benefits of more time with your parents, etc … but yes, I’ve seen many times how this can put a major drain on a family.

From what I’ve observed of adults thrust into the role of caring for their parents, the biggest struggle often comes from trying to keep their dual responsibilities segregated. They try to ensure that the needs of the aging parent don’t impact what’s going on in their children’s lives.

As an example, the adult children feel like they have to choose between making sure that Mom takes a walk for exercise and attending a child’s piano recital. No matter what the adult parent chooses, he or she often feels like a failure at everything.

What you need to realize is that this process is not something that you can keep separated in your life. You’ll do your family a great service by viewing it as an experience to be shared with everyone in the family, and maybe even with some members of the outside community.

If you find yourself in this situation here are 3 practical tips I can offer:

1) Get the Actual Facts. You may have avoided talking with your parents about finances in the past. Whether you were taught that those things are private or “it just never came up,” now is not the time for surprises. You need to know how your parents are doing financially and whether they’ve made any provisions in case they become ill or suffer a long-term disability.

2) Ensure the Estate is Set Up Right. At this stage of your parent’s life it’s important to make sure that your parent’s legal house is in order. No matter where you get it done, your parents absolutely need to have a financial power of attorney, advance health care directive (a health care power of attorney plus a living will), and a simple will.

All this may not constitute the fullest estate plan for your parents. It might not be proper Medicaid planning. However, it is the bare minimum you will need to help care for your parents.

3) Insure Against the Future. Now is the time to examine long-term-care insurance or assess whether savings will cover an extended nursing home stay, assisted-living facility costs or extended home-care services. You may be tempted to begin to liquidate your holdings or stop saving for your own benefit to help pay for the cost of your parent’s care. Big mistake.

Remember that there aren’t nearly the same kind of government programs or lending scenarios that will help you pay for your kids, or their college, or to fund your retirement — as there are to help support aging parents. It’s vital that you continue to save for your retirement.

Financial Advisor Richmond
Financial Planner Richmond
Financial Planners Virginia

You know how good coaches are usually famous for making adjustments during halftime of big games? Well, here I am — acting as your financial coach in matters tax-related, and we’ve just about hit halftime for 2011.

You have six months of financial info to use for some quick math about your year as a whole, and to prepare for a pleasant upcoming tax season.

To begin, all you have to do is take your cash flow for the first half of the year, and multiply by two. Add up your wages, dividends, interest, and any other income, and then–if this represents approximately what you’re expecting for the second half of the year–double the sum.

Once you have your estimated 2011 income, give us a call (or send me an email), and we’ll help you determine the appropriate tax rate and deductions to apply. Because once you’re armed with this info, we can help you determine the amount of taxes you might expect to owe for 2011.

By then comparing this against your projected withholding, you can adjust the withholding on your paycheck in advance as needed, and ensure a happy visit to our office in the early winter.

This can also be a good time to organize your financial records and/or get started with some financial software. (Quicken, Microsoft Money, or the free online utility www.Mint.com are some popularly available options for this.) Getting organized now can make gathering a report of all those deductions a breeze come tax time!

Financial Advisor Richmond
Financial Planner Richmond
Financial Planners Virginia

Well, the dream of freedom, birthed on the 4th , does still live. But let’s face it–our government (especially the IRS) is poised to become a deeper, larger influence in our lives.

And it’s ironic, this month of Independence, to see how much power the IRS now has as probably one of the most powerful organizations in the USA. Solely responsible for collecting
Federal taxes and imposing related penalties, the IRS poses one of the biggest financial threats to individuals and business owners.

They have unique information resources, legal standing, and roles as a law enforcement agency. On top of all this, the IRS has the authority to issue legislation and the freedom to make mistakes without consequences (they’re protected from penalties for false tax accusations)!

So what can we do to protect ourselves from the IRS’ power and potential for financial wrath??? … Well, if there were a concrete answer for that, the IRS wouldn’t be the intimidating and widely-feared agency it is today. But there is one thing each of us can do to keep them off our back: Keep Records! (I know, a bit lame … but it’s true!)

Our best defense against audits and false accusations is keeping accurate, detailed records of the flow of all money into and out of our lives.
Now, depending on your situation, this can be complicated and time-consuming! Where do you begin?

A great place to start is by calling our office; we can help you determine where to focus your record-keeping efforts, and help you develop a strong wall of defense around the “castle” of your finances. Generally, the better and more accurate your records, the better your chances are for surviving an All-Out IRS Battle!

Financial Advisor Richmond
Financial Planner Richmond
Financial Planners Virginia