(386) 734-9441

Outsource your CFO

With trained professional staff, Dreggors, Rigsby & Teal can provide assistance to your business at whatever level of service you need. Is it time you outsourced your CFO? 

Have you ever thought of outsourcing your Chief Financial Officer?

There are many instances where you could use an additional hand at the office, but don’t want the burden of hiring a full-time employee.

It may be time to outsource your CFO.

While hiring a part-time employee might be a good solution for your business, many times it is difficult to find an experienced, knowledgeable individual willing to work part time.

Consider outsourcing your CFO.

Could you make more money spending more time on your business and less time worrying about the office work? Has your business outgrown your bookkeeping staff?

Look again at outsourcing your CFO.

With trained professional staff, Dreggors, Rigsby & Teal can provide assistance to your business at whatever level of service you need.

  • Account Reconciliations
  • Bookkeeping
  • Bookkeeping and Accounting Oversight
  • Budgeting
  • Cash Flow Projections
  • Comprehensive Financial Planning for Business Owners
  • Financial Statement Analysis
  • Tax Projection
  • Strategic Business Planning
  • Assistance with Year End Closeout to Prepare for Audit

Let Dreggors, Rigsby & Teal help you take your accounting to the next level.

Call us at 386-734-9441 to learn more.

 

Let Your Child Retire a Millionaire For Only $1 a Day

Unlike prior generations, our children will not have the opportunity to work for companies that offer retirement plans that guarantee an employee has a “paycheck for life.”

Even governments, long known for their generous benefit packages, are dropping their guaranteed benefit plans. It will be up to our children to save for their retirement, invest appropriately, and set realistic retirement expectations.

We all want to make sure our children (or grandchildren) have a comfortable life. With working to obtain our own financial goals, we sometimes forget that with a very small investment we can jump-start our children’s retirement savings and start them on a path to a comfortable retirement.

Would you be willing to sacrifice $1 per day for your child for the first 18 years of their life?  The power of compounding turns this small sacrifice into a large retirement fund. 

For example, if you invested $1 a day in a low-cost S&P 500 index fund, you would have invested $6,570 by the time your child turns 18. The S&P 500 earned an average of 10.2% per year between 1973 and 2014. Therefore, if you left the investment alone and did nothing after your child reached age 18, your child will have over $1,775,000 by age 67 (their normal retirement age).

Obviously, there are some caveats to this plan. Your child will be liable for taxes on the dividends earned by this plan. (Fortunately, if your child is in the 15% tax bracket, the current divided tax rate is -0-; if they are in a higher tax bracket, they can hopefully afford to pay the taxes).

Also, while $1,775,000 sounds like a lot of money, you must remember that 67 years from now, that $1,775,000 will only likely have the purchasing power of approximately $250,000 in today’s dollars.  (But would you complain about investing $6,570 and getting back over $250,000?).

At Dreggors, Rigsby &Teal, we encourage you to help your children secure a solid future. We can recommend how to set up the investment account, where to send your contributions, and a good, low cost index fund to invest in. We also will send out periodic reminders that you should fund your plan to keep you on track.

As always, we would appreciate the opportunity to answer any questions about this article or any other financial planning and investing questions that you may have.

Love Your Future: 3 Key Funding Strategies for Your Golden Years

If you’re over 40, chances are you’ve been thinking about retirement – at least, how you’ll fund it. Much more than a pension or 401k make up retirement benefits. Adequately funding your golden years likely will be a combined result of sound investing in a diversified portfolio over a significant time period and insurance benefits.

Here’s an overview of a few strategies we recommend to Dreggors, Rigsby & Teal, P.A. clients as they plan retirement outcomes that will allow them to continue with their current lifestyle, or help them understand how to adjust it to meet their goals. Everyone’s situation is different, but we offer you these key points to get the ball rolling as you determine what income strategies will work best for you and your loved ones to ensure their comfortable future.

Understand what you need in your retirement plan to take care of you and your primary beneficiary.

“How much will I need to retire?” It’s one of the first questions we ask. And, of course, the answers vary.

In 1994, a retirement investor named Bill Bengen established the “4% rule” that has largely stood the test of time. The essential tenant of the formula is that you would be at low risk of running out of money if you stashed away enough retirement income to allow you to withdraw 4% of it for 30 years. (The first year would be a flat 4%, with subsequent years representing an inflation-adjusted amount.)

While there’s no one-size-fits-all formula for retirement savings, a steady investment over a significant period of time is the gold standard. Contact your investment advisor about your goals and your risk tolerance.

Buy sufficient life insurance as early as possible. As a rule, it’s best to purchase life insurance when you’re younger and healthy. It makes sense that as we get older, life insurance companies view older potential policyholders as greater risks, and those risks are met with higher premiums. The younger you are when you secure the policy, the more affordable it will be. But no matter your age, if you need life insurance — and it will help financially secure the future for your spouse and dependents — you will find it to be worth the investment. A few factors that affect life insurance policies and rates include: 1) your health at the time of the policy purchase; 2) your age when you apply for coverage; 3) how healthy your lifestyle is upon policy purchase; 4) how high-risk your occupation is; and 5) the type of policy you secure, such as a “term” or “cash-value” policy.

Explore the benefits and risks of long-term care insurance. Long-term care insurance covers the essential activities of daily living, including getting around the house, dressing, bathing and eating. These activities typically are provided in a nursing home environment, and are usually needed as a result of a chronic medical condition. The Department of Health has stated that 43% of Americans over the age of 65 will require long-term care in their lifetimes. And, it will come at a cost. Some long-term care professionals have estimated that by 2030 the average cost of a nursing home residency will be nearly $200,000 a year.

Of course, none of us can predict the future, and acquiring long-term care insurance is a strategy that may never need to be employed. But, for those who can accommodate the premiums, the return on investment may be increased independence, better care options and greater peace of mind.

And here’s another note about beneficiaries: Do you need to update yours? If you’ve had a family change (divorce, death of spouse, new child, etc.), you’ll want to be sure to update your legal and financial documents to reflect your new situation and update the names of your beneficiaries. Typically, only policy owners can change beneficiaries. However, in the case that a beneficiary was named as an “irrevocable beneficiary,” both the beneficiary’s signature and the policy owner’s signatures are required.

Be sure to understand how your assets will be dispersed upon your death. If you have not named a beneficiary to your estate, your benefits may be directed to the estate itself, and the assets would go through probate. Alternatively, some policies choose the beneficiary for you if you don’t name one.

We all want to ensure our loved ones are cared for in the later years of their lives. While there are several sound approaches to making this dream a reality, nothing replaces speaking to your financial advisor– so make the call today and start strategizing!

Dreggors, Rigsby & Teal, P.A. offers these financial services, and invites you for a free consultation to get the conversation started. Simply call Ron or Kevin to make an appointment at 386-734-9441. It’s the first step to ensuring you’ll love your golden years, and have greater peace of mind while you travel there.

5 Keys to Getting Your Income Tax Return Faster

In the financial services world that we live in at Dreggors, Rigsby and Teal, P.A., we ring in New Year’s Day on January 1.  But, as of January 2, it’s tax prep season.

Many of our clients are great partners in helping our CPAs and accountants prepare their income tax paperwork for filing with the IRS. Having your documents ready when we begin preparing your return can equate to a quicker turn-around time and ultimately, a faster return in your bank account. Who doesn’t want that?

Read below some of the most common documents we need to prepare a client’s income tax returns. You can take the stress out of gathering these by using our tax organizer as a guide.   Once you have all of your documents, let us get started on your tax return.

Here’s a list of the information the IRS may need from you so your income tax return can be filed completely and accurately. Start getting your documents together this month, and see that as you collect the details step by step, the process can be a lot easier (and less painful!) to accomplish!

Last year’s tax records. Have copies of last year’s return? Look over your tax return from last year.  Most likely there will be few changes.  If you had a 1099 from someone last year, you should be looking for one this year.

Income information. Have numbers in hand (and the forms that go with them) so you can accurately report your income. Examples of common income sources that most of us need for income tax returns include:

  • W-2 forms for you and your spouse
  • 1099 forms from other forms of income (such as a savings account)
  • Unemployment income
  • Income from the sale of a property
  • Social security benefits
  • Alimony
  • Rental property income
  • Miscellaneous income, such as medical savings accounts, scholarships or Lotto winnings (lucky dog!)

Adjustments to your income. Several items can reduce the amount of income that’s taxed, and these include:

  • Student loan interest paid
  • Tuition paid
  • Classroom expenses (for teachers) paid
  • Receipts from energy-efficient home-improvements paid
  • Moving expenses paid
  • Alimony paid

Many of us who file income taxes are eligible for deductions and credits, too.  These can include IRA contributions, child care costs, education costs, adoption fees, charitable donations, medical and dental expenses and expenses related to home business or rental property.

Bank account info. If you want your return directly deposited into your account, have your bank account information ready. You can find these at the bottom of checks or bank statements.

***

These are a few of the items your tax accountant will need to get your documents rolling on over to the IRS in a timely manner. It doesn’t need to be a daunting task.

If you need tax prep help or more tips on doing it right, call us at 386-734-9441. We are at your service at Dreggors, Rigsby & Teal, P.A.

 

How Health Insurance Can Affect Your Taxes

filesThe Affordable Care Act passed in March of 2010. There are several provisions of this act that take effect for the 2014 tax year.

Beginning last year (2014), individual taxpayers were required to have health insurance. To help enforce this requirement, the IRS started requiring that every taxpayer report, on their 2014 tax return, whether they have been covered by health insurance for the entire year, and if not, which months they were not covered. When you bring in your information to get your taxes prepared, please let us know if you were covered by health insurance (either through your employer, the health insurance marketplace, private coverage, or Medicare).

To help subsidize the cost of insurance for certain individuals, the government offered tax credits to individuals who purchased insurance through the health insurance exchange. As you purchased the insurance, a credit was calculated based on your anticipated income and family size. Most people chose the option to use the credit immediately to pay for the monthly premiums on their health insurance.

Because the insurance credit was based on your estimated income for 2014, we must re-calculate the actual credit for your income tax return. Our recalculation is based on your actual income. Any difference between the credit calculated on your tax return and the estimated credit provided to you when you signed up for health insurance will either be an additional refund (if your actual credit is more than you originally received), or you will be required to repay a portion of the credit that you received in advance (if your estimated credit was higher than the credit based on actual income).

The IRS will be sending a Form 1095-A to all individuals who signed up for health insurance through the health insurance exchange. Please bring this form to us with your tax information so that we can properly report this information on your tax return.

If you have any questions regarding the taxability of your health insurance, health insurance credits, or any other tax or financial planning issues, please let us know. We are here for you! Call us at 386-734-9441 or email me at rcantlay@drtcpa.com.

Your Child Can Retire a Millionaire for Only $1 a Day

Unlike prior generations, our children will not have the opportunity to work for companies that offer retirement plans that guarantee an employee has a “paycheck for life.” Even governments, long known for their generous benefit packages, are dropping their guaranteed benefit plans. It will be up to our children to save for their retirement, invest appropriately and set realistic retirement expectations.

We all want to make sure our children (or grandchildren) have a comfortable life. While working to obtain our own financial goals, we sometimes forget that with a very small investment we can jumpstart our children’s retirement savings and start them on a path to a comfortable retirement.

Would you be willing to sacrifice $1 per day for your child for the first 18 years of their life?  The power of compounding turns this small sacrifice into a large retirement fund.

For example, if you invested $1 a day in a low-cost S&P 500 index fund, you would have invested $6,570 by the time your child turns 18.  The S&P 500 earned an average of 10.2% per year between 1973 and 2014. Therefore, if you left the investment alone and did nothing after your child reached age 18, your child would have more than $1,775,000 by age 67 (a typical retirement age).

Obviously, there are some caveats to this plan. Your child will be liable for taxes on the dividends earned by this plan.  (Fortunately, if your child is in the 15% tax bracket, the current divided tax rate is 0;  If they are in a higher tax bracket, they can hopefully afford to pay the taxes).

Also, while $1,775,000 sounds like a lot of money, you must remember that 67 years from now, that $1,775,000 will only likely have the purchasing power of approximately $250,000 in today’s dollars. (But would you complain about investing $6,570 and getting back more than $250,000?).

At Dreggors, Rigsby & Teal, P.A., we encourage our clients to help their children and grandchildren secure a solid future. Call us for a free consultation at 386-734-9441 or email us at info@drtcpa.com. We look forward to the opportunity to help.