Begin: 10/17/2023
Finish: 12/5/2023
Title: Financial Planning Seminar
Instructor: Paul Mata – Financial Planner
Why I chose to take this class:
This class teaches us how to manage our finances. The information from this class will be used for my financial planning strategy.
What I learned from this Class:
Financial planning process is pretty involved inn various aspect. The factors considered are:
1) Budget and expenses tabulation.
2) Credit and credit reporting.
3) Types of insurance.
4) Retirement accounts.
5) Types of investments.
6) Estate Planning / Will and Trust.
1) Budget and expenses tabulation:
The purpose of tracking you expenses and budget is to identify when your funds are being spent, identify unnecessary expenses, cut out and reduce expenditure, so you can save funds for investments or other things.
2) Credit and credit reporting:
There are three credit reporting companies: Trans Union, Experian and Equifax. Your credit rating can be affected by many factors: closing credit card accounts, unnecessary credit inquiry, balance on credit cards, delinquent loan and payments. keeping credit rating of 650 and up will reduce your interest on loans.
3) Types of insurance:
Insurance are to protect you and your assets. Medical, home, auto and life insurance. There are also term. life and UL insurances.
4) Retirement accounts:
Most retirement accounts are tax deferred until you withdraw the funds. Retirement accounts includes: IRA, 40K, 457K, SEP IRA, Roth and Others. Roth is the only account that is not tax deferred. It is funded by after tax funds and funds can grow in the Roth IRA and is tax free, after you have reached 59.5 Years old. Other IRA has a minimum withdraw at age 73 years old. Otherwise you will have to pay a penalty.
5) Types of Investments:
You should diversify your portfolio in these seven categories to avoid worrying when the market condition changes. The seven type of investments are:
a) Cash – for liquidity and emergency fund.
b) Stocks – Driven by technology, dividend stocks.
c) Bonds – Zero coupon Bonds – Brokerage advantage – used to raise capital for investment.
d) Commodities – Gold, gold stocks or mining company.
e) Real Estates – REIT and rental properties.
f) Insurance.
g) Cryptocurrency –
h) small business – Tax avoidance, expense write off, donations.
6) Estate Planning:
It is important to have a will, otherwise the state will go to a probate process to divide your property. Even with a will, you will need a Trust to avoid probate cost from the state. a Revocable or Irrevocable trust will avoid probate cost, make sure to retitle the property to the trust, record the title to the trust. Use a pour over will to cover everything not listed. Name beneficiary for all non – probate assets including: 401k and IRA accounts, life insurance policies and pensions. Revocable living Trust a) list all personal property and decide which people you want to receive each assets, b) Transfer your personal property to the trust, c) name a successor trustee to manage your trust after you pass away. Title and property deeds – if you establish a trust, retitle your property so the Trust is the owner.
How will this class contribute to my success upon release:
This class helps me understand the aspects of financial planning as well as estate planning. The information can be passed on to others when I volunteer my teaching services.
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