Do you have a lot of medical bills that you pay on each month? Could those medical bills be deducted from your tax bill this year? I was helping my mother take care of all of her finances after my dad passed away. I didn't realize how many bills she had coming in each month for medical treatments that my dad had undergone months, even a year earlier. I started doing some research about medical bills and tax deductions. If you have medical bills, take a minute to read through this blog to gain some knowledge that can help you decide what you can do when tax time comes around.
Do you expect a sizable inheritance in the near future? No matter whether you're planning ahead, or whether the inheritance is imminent, one of your first steps — before you even have a check in hand — should be to meet with a financial consultant. Why should you do this as soon as possible? Here are a few key reasons.
1. You Need a Professional. While you aren't required to seek out professional financial assistance, it's a wise move. If you've never had this kind of money before, you can easily make common mistakes with it — things like risking too much in the stock market or not vetting charities. By starting out with the help of a pro, you set yourself on a path to success.
2. You Get Time to Plan. Many people who come into a large amount of money have no real idea what they want to do with it. This is especially true if you didn't know about the inheritance or its true size. The earlier you meet with a professional and start crafting a plan, the more time you buy to consider all your options, decide on priorities, do research, and make unhurried decisions.
3. Some Things Need Prep. If you wait until you actually receive your inheritance, you and your money will be exposed to more risk at the beginning. For instance, if you plan to put a sizable sum into the bank where it's safe, you will run into the FDIC insurance limits per client. The answer may be to open multiple accounts at different institutions, but you need time to do this — before you deposit money that won't be fully covered.
4. No One Knows Yet. Once the will is read or probate has begun, the secret about your inheritance may no longer be under your control. This opens up the likelihood that others will try to get access to your new money — in donations, business investments, and outright gifts. Counter these pressures by having a plan already in place and certain decisions already made before it's public knowledge.
5. You Can Decide for Yourself. As it is with your own money now, you should decide for yourself how to spend or save it. And the only time you will likely face almost no outside pressure in this decision is before others know about it. After it's in your possession, you will likely hear many conflicting opinions and well-meaning — but often wrong — advice. These early times are your own and they are free of others' agendas.
Are these 5 great reasons to seek out financial consulting early compelling to you? If so, make an appointment today and get a jump start on financial success no matter what your inheritance or your goals.
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