Category: 401k advice


Tax Preparation With A Local CPA

There are a huge number of excellent Certified Public Accountants in the USA. As tax season looms large, it seems like a sensible option to be getting in touch with one of them. How do you go about making this choice? There are a whole lot of reasons for choosing an accountant, but not many think about one big one, and that is choosing local. For example, if you live in St George, maybe choosing an accountant in St George makes sense.

So just what is it about st george tax prep that is so special, you might be asking? Actually, the answer is nothing and everything. Tax law is a complicated beast and there are many subtle (and not so subtle) differences from state to state. It would be a shame to miss out on any particular tax deductions that you could have just because you chose a cpa who isn’t an expert in your state law.

Of course, the advantages go beyond simply knowing local tax law. Having an accountant that you can actually see regularly makes a big difference to overall financial strategy and actually encourages good habits.

For example, what about having someone look over your monthly bank statements in order to plan a budget with you? This is a great starting point for anyone’s finances. Or maybe you need help organizing your child’s college fund? This is perhaps even more important for the small businesses out there. A cpa can clean up your ledger and put you on the road to profitability with regular consultations.

Getting your taxes done by a local cpa makes sense. Making this the starting point for a tighter future collaboration is even better. This can really help put all of us from individuals to businesses on a much firmer financial footing over the years to come.

Diversified Stock Allocation – Investing Strategy

You should have a diversified investment portfolio.  It should not just be in stocks.  You should have a bit of bonds, some emerging markets, mutual funds, index funds, derivatives and options mixed in.  That is if you are a sophisticated investor.  As time goes on and you learn more about the financial markets, your investment strategy should reflect that as well.  Here is how places like Finance World would tell you how to diversify, at least in stocks.

There are many different types of stocks.  There are small, mid and large cap stocks, each with it’s size differences and associated risk profiles.  Then you have value or growth stocks that you can pick from.  You now also have options like ETF’s as well as the traditional mutual funds of the past.  Now if you engage in online stock market trading, you may not be so interested in this.  But if you are saving and investing for your retirement, you may want to have a listen.

Small cap stocks will get you the best chances of high returns.  Let me qualify that just a little bit.  Small cap value stocks will give you the best chance for the highest returns.  No, I didn’t say growth stocks.  That is because research is showing that value stocks actually perform better than growth ones.  That’s ironic, but it’s a fact.

Large cap stocks are good for conservative investors or ones who need to be conservative.  They are similar to bonds and may even give you income without you touching your capital.  But these are more for older folks who are retired and may not have the time to risk in a volatile security.

The moral of my story is to diversify among many different types of stocks.  Also, branch out into different sectors as well like technology stocks and some in utilities and some in financial companies.

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