While most of us try to identify as many possible write-offs on our taxes that we possibly can each year, there are many qualified write-offs that are often overlooked. Recognize these obscure write-offs and get ready to optimize your next tax return:

• Job Seekers: Expenses related to job seeking can be a legitimate deduction on your taxes. Qualified expenses include phone calls, unemployment agency fees, resume preparation costs, travel and transportation fees, and career counseling services.
• Teachers: Any classroom related expenses such as books, computer equipment (including software and services), supplies, and other materials used in the classroom are legitimate deductions. Save your receipts!
• Home Office: If your home has a space solely dedicated to use as a home office, depreciations in home office equipment, computer expenses (if solely used for business purposes), and even the percentage of heat and electricity used by your home office are qualified deductions.
• Charitable Contributions: Any donation you make to a legally recognized charity is tax deductible, as long as it meets IRS standards. Double check charitable organizations to which you have donated to ensure they qualify.
• Military Personnel: Active military personnel qualify for many legitimate deductions regarding travel, uniforms, and educational expenses. Check with your tax professional to see which write-offs you can claim.
• First Time Home Buyer: As a first time home buyer, expenses such as property taxes and mortgage interest are legitimate deductions on your tax return.
• Energy Efficiency: Tax credits for using energy efficient appliances and heating systems are deductible in addition to alternative energy systems such as solar panels, wind turbines, and residential fuel cells. Energy saving home improvements such as insulation, lighting, windows, and roofs also qualify.

Identifying and claiming these additional tax write-offs positions the educated taxpayer for a greater return come April. Make sure you are claiming every possible deduction and limit the amount of money you shell out to Uncle Sam.

This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.

Effectively managing outstanding debt is the first step on the road to financial freedom. You’ve set yourself a budget, you’ve stuck with the plan, and you’ll soon be debt free. Now what? Take what you’ve learned and begin working towards a richer future.

Follow these six steps and you will soon be well on your way to easy street:

1.  Know Your Situation: Take the time to understand exactly where you are at financially. What is your total income? What are your debts? How much is left over after you pay bills? Using a spreadsheet or other type of software tool to map these numbers out in a “Personal Finance Sheet” makes it much simpler to identify how much you need for monthly expenses, and how much you can afford to put away for future investments or savings.
2. Set Goals for Your Future: Clearly define both your short- and long-term goals. Want to pay buy a $25,000 car in the next two years? How about retiring by 55 with $1 million in savings? The key here is to capture your goals somewhere and refer back to them periodically. Keep in mind that any goals you set should be realistic, specific, measurable, set within a certain timeframe, and actionable.
3. Explore Alternatives: No one is saying you need to continue down the financial path you are currently on, so what’s the harm in taking a look at alternative routes? When exploring your options you can choose to do one of four different things; stay the course, expand your strategy, modify your strategy, or adopt an entirely new strategy.
4. Evaluate: Now that you’ve identified the alternative strategies, evaluate the feasibility of each one and how it fits into your personal finance plan. The important thing here is to identify which options you can believe in and work towards.
5. Act: Now that you have your strategy mapped out it’s time to act. Begin by implementing the first actions identified in your goals, and go from there. If you find you cannot act on your chosen strategy for financial or other reasons, it may be time to take a step back and reevaluate the situation.
6. Measure: In order to know where you are at with your goals and to make projections for the future, you need to know how your financial strategy is working. Failure to measure your results frequently can cause you to lose sight of the goals you set up at the beginning of your planning.

Keeping a keen eye to the future through the use of these six steps will ultimately lead you to greater financial security. With a little work on your part, you can soon be living the good life — golf clubs and Cadillacs.

This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.

Now that you have your financial problems well in hand and are nearly to the point of being debt free, it is a good time to begin thinking about your financial future. You have made sacrifices, changed your lifestyle, and allotted a significant portion of your monthly income to settling your outstanding credit card debts. With the lessons you have learned, and your new ability to budget and save on a monthly basis, you can begin structuring a retirement plan to guarantee financial independence into your golden years.

One great way to begin saving towards retirement is to set up a Roth IRA personal retirement account. Roth IRAs (or Individual Retirement Accounts) allow you to set aside after-tax income up to a specified amount each year. Earnings on the account are tax-free, and tax-free withdrawals may be made after age 59 and a half. Funds are used in much the same way as traditional investment programs, and can either be managed by your selected investment manager, or managed personally, whichever suits your individual needs.

 Setting up a Roth IRA account is fairly simple and straightforward. The first step in the process is to identify exactly where you should open your account. Many financial institutions offer IRAs, each with its own strengths and weaknesses. It’s important to search for a company that suits your needs. Questions to keep in mind when researching IRA offerings include the following:

•  Is there a minimum initial investment? Minimum contributions?
• What sorts of fees are assessed to the account?
• Does the company offer automatic contributions?
• What investment options are available? Can you invest in stocks? Mutual funds? Real estate?
• How reputable is the provider?

 If you already work with a financial advisor, they can assist you in selecting an appropriate financial institution to work with. A good starting point is the three leading American investment institutions — T. Rowe Price, Fidelity, and Vanguard. These large investment firms have more investment options than smaller institutions, and can support both aggressive and conservative investment plans.

 Actually setting up the Roth IRA account involves little more than filling out a detailed application (similar to a credit card application). You will need your social security number, banking information, and funds to cover an enrollment fee and initial investment into the account. Automatic fund transfers can also be selected to automatically transfer funds from your bank accounts into the Roth IRA each month, making investment that much easier.

 The only thing to do now is to sit back and watch your investment grow.  

 This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.

The official release will happen in a March issue of Forbes® Magazine, but DMB Financial was just named one of the Top 5 debt settlement companies in the entire United States!

We couldn’t be happier for our hard working settlement, client services, accounting, support staff and sales personnel. Thanks to all the great clients who voted with their feet and made DMB Financial their #1.

We’re also celebrating two new milestones. As of January 10, 2010 we’ve saved over $123,000,000.00 for more than 13,000 clients nationwide. We’re looking forward to another mega year of restoring financial freedom to thousands of Americans!

The stock market has prompted many Americans to seek safer quarters for at least some of their life savings. But, instead of stuffing a mattress with dollar bills, some find security in money market accounts, certificates of deposit or fixed annuities. Each of these saving alternatives has unique features, benefits and drawbacks.

Money market account

People typically house surplus cash in a money market account when they want to earn a slightly higher rate of interest than a checking or savings account. A money market account may restrict cash withdrawals each month, but in general, it usually offers enough liquidity to ensure access to your money when needed. Some money market accounts issue checks to facilitate withdrawals.

Before you open an account, check bankrate.com for the best money market rates. It’s not enough to simply compare the Annual Percentage Yield (APY); you need to consider the frequency of compounding interest. For example, interest that is compounded daily will grow more quickly than interest that is compounded monthly, quarterly or annually, so your yield will be higher as a result.

The FDIC has temporarily increased insurance on FDIC-insurable funds, including money market accounts, from $100,000 to $250,000 per depositor, per insured bank until December 31, 2013. After that date, the amount will revert back to $100,000.

Certificate of deposit

A certificate of deposit (CD) is a savings vehicle that ties up your money for a set period of time, ranging from three months to six years. In exchange for “lending” your money for the fixed period, you earn a fixed or variable amount of interest. When you purchase a CD with a fixed rate, you have the advantage of knowing exactly how much money you will earn when the CD matures.

In general, the more you invest in a CD and the longer the timeframe, the higher the earned interest rate. Bankrate.com publishes rates to help you sort through your options. Before you buy, check out the frequency of compounding and whether the interest earned is rolled into the CD or paid to you by check during the holding period.

You can buy CDs directly from a bank or credit union, or you can buy them from a brokerage. Note that a CD purchased from a brokerage may be considered “callable,” meaning the issuing bank can drop the CD if interest rates fall.

Help increase your interest earnings and keep at least some of your savings accessible with “laddering,” a strategy that involves purchasing multiple CDs with staggered maturity dates. As each CD expires, roll the money into a new CD of the longest duration. Eventually, you will own continually maturing CDs that also earn the best rates.

Like money market accounts, CDs are covered by FDIC insurance. If you withdraw from a CD before the maturity date, you may be subject to a penalty.

Fixed annuity

A fixed annuity is another savings option that offers principal protection. A fixed annuity provides a set amount of interest income at regular intervals. It is usually purchased in a lump sum, which is forfeited by the buyer in exchange for guaranteed income over a predetermined interval. For example, you can purchase an annuity that provides payments for the rest of your life or until a certain dollar amount is reached.

A fixed annuity is a tax-deferred investment, meaning you pay no taxes on the income until your money is withdrawn. However, earnings from an annuity are subject to ordinary income tax, which tends to be higher than the capital gains tax applied to other forms of investment income.

Annuities are sold on commission and can be costly because of the variety of fees attached to them. If you expire before the annuity does, the money is gone unless you purchased a special death benefit rider. If you decide to cancel your annuity after purchase, you may be hit with a stiff surrender fee. Because of the complexity of annuities, make sure you understand all the fees and restrictions of the product before you sign on the dotted line.

As an insurance contract, an annuity is not guaranteed by the FDIC. You can check the strength of the issuing insurance company with a rating agency such as Moody’s or Standard & Poor’s.

Save trouble by seeking expert advice

If you need a safe place to put your money outside of the stock market, talk to a qualified financial advisor for professional advice. A financial advisor can help you evaluate your savings options and make decisions that support your overall financial plan.

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This column is for informational purposes only. The information may not be suitable for every situation and should not be relied on without the advice of your tax, legal and/or financial advisors. Neither Ameriprise Financial nor its financial advisors provide tax or legal advice. Consult with qualified tax and legal advisors about your tax and legal situation. This column was prepared by Ameriprise Financial.

Fixed annuities are long-term insurance products.  Before you purchase, be sure to ask your financial professional about the annuity’s features, benefits, and fees, and whether the annuity is appropriate for you, based on your financial situation and objectives.

Financial planning services and investments offered through Ameriprise Financial Services, Inc., Member FINRA & SIPC.

© 2009 Ameriprise Financial, Inc. All rights reserved.

While tax season is still a few months away, take some time today to set yourself up for an optimal filing with Uncle Sam. Donations and charitable giving are a great way to limit the amount you owe, and you might be surprised by the types of donations that qualify.

The simplest donation is of course cash. Most non-profit charitable organizations qualify. Keep all your receipts to make sure your itemized donation deductions are accurate. In addition to cash, property donations such as clothing, books, land, and even cars qualify.

The general rule of thumb is to deduct the fair market value of the item, although the rules for donating cars have changed recently from fair market value being determined by a blue book value, to the actual price the car is sold for at auction. For donations of cash or property under $250, merely holding on to the receipt is enough to qualify for a deduction. If the donation is between $250 and $5,000, you will need to explain how you received the property, when you received/created it, and your cost basis for the deduction. If the donation is over $5,000, then you will need a qualified written appraisal of the property in addition to everything else.

Look around your home today to identify items that may qualify for a donation deduction. Not only will you be helping charitable organizations continue to help those in need, but you can hold on to some of your hard earned money at the same time.

This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.