Our Blog

Personal Financial Statements

Posted by Mike Flynn @ 9:30am on February 21, 2017

Personal financial statements provide a summary of an individual’s financial situation. The most commonly used financial statements are the “Net Worth Statement” and the “Cash Flow Statement”. The Net Worth Statement represents an individual’s assets, liabilities, and net worth as of a particular date.

The Cash Flow Statement shows an individual’s receipts and income and disbursements and expenses for a specific period of time. In other words, the Cash Flow Statement illustrates the individual’s inflows and outflows and whether there is a cash flow surplus or deficit.


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Cash Flow Analysis

Posted by Mike Flynn @ 4:50pm on January 18, 2017

Cash flow analysis begins with identifying income inflows and outflows. The process of gathering accurate inflows and outflows data is crucial to the process – "forgetting" certain inflows and/or outflows may have disastrous effects on a client's long-term financial situation. Client checklists of income inflows and outflows can be very valuable in the process, and decrease the likelihood that the client will overlook certain information.


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Transfer for Value Rule

Posted by Mike Flynn @ 2:00pm on December 7, 2016

Life insurance death benefit is generally received income tax free by the policy beneficiary. However, if an interest in a policy is transferred for valuable consideration, any death benefit received by the transferee in excess of the amount of the consideration plus subsequent premiums paid by the transferee will be income taxable. This is called the transfer for value rule. Transfer of an interest in a policy in violation of the transfer for value rule may have significant and unanticipated impact on policy beneficiaries.


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Asset Protection Strategies

Posted by Mike Flynn @ 11:55am on October 7, 2016

Asset protection is about protecting assets before the need arises; it is not about protecting assets from existing creditors. In other words, the implementation of asset protection strategies is appropriate in situations where an individual is concerned about the claims of future creditors.


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Marital Property

Posted by Mike Flynn @ 8:20am on September 23, 2016

American has two systems for how a married couple can own property: common law and community property. Nine states—Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin—have adopted some aspects of a community property system. Alaska has adopted a law that allows couples to voluntarily convert their assets to community property. All other states follow the common law system.


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