At Family Wealth Management we take  pride ourselves on delivering an array of financial planning services that extend beyond money management.  Reviewing tax returns and uncovering opportunities that benefit you is just one service we offer.

Here are a few items we look for..

1. Interest Income (line 8a) - Is your interest income in excess of $1,000?  With bank interest rates near all-time lows, $1,000 in interest income could mean that you have +/- $100,000 sitting in an account. While it’s important to have adequate emergency fund money, perhaps it makes sense to reallocate these dollars to tax-deferred accounts or higher income producing alternatives.

2.  Tax-Exempt Interest (line 8b) – Is this line blank?  Perhaps there is an opportunity to convert your taxable interest to tax exempt items.

3.  Capital Gain (or loss) (line 13) - Is there a ($3,000) in this box?  This could mean that you still have loss carry-forwards from previous years that could offset unrealized capital gains you earned in your accounts this year.

4.  Social Security Benefits (lines 20a and 20b) – Take a look at both boxes, you may be surprised to learn that only a portion of your social security income is taxable.

5.  Self Employed SEP, Simple or Qualified Plans (line 28) – Do you operate your own business?  If so, did you take advantage of a retirement plan option

6.  Taxable Income (line 43) – This is the amount the IRS uses to determine your tax liability.  Notice how much different it is from Total Income (line 22).

7. Total Tax (line 60) - This is the amount of money owed to the IRS for Federal Taxes.

8.  Determine Your Effective Tax Rate – Divide the Total Tax (Line 60) by your ‘Taxable Income’ (Line 43).  You may be surprised by the number.

There are many more opportunities that can be uncovered by simply reviewing a tax return.

Send us a copy of your tax return and we’ll be happy to review it for you.

“The Number,” a book written by Lee Eisenberg several years ago, generated enough buzz that it became a reference point in financial planning circles. Maybe he should write a sequel called “Life Goals.”

According to the recent Merrill Lynch Affluent Insights Quarterly survey, 51% of retired respondents said if they had the chance to do it again, they’d have focused more on “life goals” and less on “the numbers” associated with reaching a specific nest egg dollar amount in retirement planning.

That said, the other 49% said they’d still focus on the dollar amount, not the life goals.

Among the “life goals” crowd, 38% said they’d have spent more time on how they wanted to live in retirement. In addition, 8% said they’d have created a better plan to support their charitable intentions.

As for “the numbers” group, 23% said they wished they started working with a financial advisor earlier in life and 18% said they would’ve jettisoned more luxuries to help them reach their retirement goals.

The survey, which was conducted in December by Braun Research for Bank of America’s Merrill Lynch Global Wealth Management division, also indicated lifestyle changes made by respondents as a result of the recent economic downturn.

Among the findings: 48% said they were cutting energy costs; 38% were more aware of daily and short-term cash flow; 30% were vacationing less; 29% were cutting back on golf, skiing and other recreational activities; and 16% were delaying home improvements and other capital expenditures.