Starting Over Single

It was supposed to last forever, but it didn't. We had to untangle our finances - the mortgage and the car loan and agree on support. That deal wasn't great then, but it seems worse now. It feels like my past is holding back my future. How can Life Focus help me?

Suggested Action Plan:

Step 1- Download Your Life focus Software and Begin the Planning Process

Step 2- Register for One of the Life Focus Wealth Education Classes

Step 3- Contact a Wealth Coach through the Life Focus Wealth Advantage Program

Step 4-Develop a Spending Plan

What we can accomplish for you…

o    Your financial coaches will work directly with you to develop effective strategies for tracking your spending and developing a spending
      plan that allows you to get the most out of life.

o    Your financial coaches will review your current expenses and determine the best way to create savings and reduce your spending.

o    Your financial coaches will help you find the money to set aside each month to increase your savings and plan for your future.

o    Your financial coaches will suggest strategies to become debt free and negotiate directly with your creditors to reduce and eliminate
       your outstanding debt load.

Step 5- Legal  

Step 6- Tax (W-4)
Check Your Tax Withholding
If you are paid as an employee and have taxes withheld from your paycheck, you will complete a W-4 form as part of your new hire paperwork. The W-4 form is a worksheet that establishes how much your employer is to withhold in estimated federal income taxes on your behalf, based on your response to certain questions. How do you know if you need to revise your W-4 form? If year after year, you receive a refund when you file your income tax, it is an indication that you are having too much money withheld from your paycheck.

For example, let’s say that this year after filing your income tax, you received a refund of $3,000, which means you over-paid your taxes. To determine how much you over-paid in income tax throughout the year, divide the $3,000 refund by 12 to get a monthly amount you are over withholding. You would then determine that based on the previous W-4 you submitted to your employer, you over paid (over-withheld) an additional $250 every month. By recalculating the amount withheld from your paycheck, completing a new W-4 form, and submitting to your employer, you can have an extra $250 in your monthly take home pay throughout the year. For anyone struggling to pay off debt, or wanting to increase his or her savings, this can be a way to increase the cash you have available every month. If you have a similar type of situation, you may want to reset your tax withholding to keep more of your income in your pocket each pay period.

To help you determine how much to adjust your withholding, use the withholding calculator found at http://www.irs.gov/individuals/article/0,,id=96196,00.html. Keep in mind that by increasing your withholding exemption, you will decrease the amount of tax withheld, which will result in a smaller tax refund. For assistance with adjusting your withholding, check with your financial coach to schedule a time to discuss how to complete a new W-4 form.

There is little incentive to overpay your income taxes when you consider that when you do, you are providing an interest free loan to the IRS. When you take the time to review your W-4 withholding, you will find that you can reduce the amount withheld monthly and maximize your take home pay. If you are making payments on your debt, the increase in cash flow that occurs when you have your withholding adjusted can allow you to pay down your debt more quickly.

Next, consider gift tax implications if funding your children's education is required by your property settlement. Although your direct tuition payments (even for adult children) are exempt from gift tax when required by property settlement agreement, the aware that your payments for related educational expenses (E. G., Books and room and board) may be subject to gift tax.

Finally, consider the absence of the unlimited marital deduction. A deduction is allowed prequalifying transfers to one's spouse during lifetime or at death. Because this gift and estate tax deduction is one of the most important estate planning tools for married couples, your loss of this tool that divorce can affect your tax situation adversely when you die.

 Step 7- Credit Restoration
There are three national credit-reporting agencies that maintain records about you-Trans Union, Equifax and Experian. Each of these bureaus works independently to gather information from businesses to update and archive your credit profile. This data is available when requested by creditors, lenders, insurers, landlords and employers to be used in evaluating your financial responsibility. Even though the credit bureaus receive and archive your personal credit history, you are responsible for the accuracy of the information contained in each of the three credit reports about your financial life. Statistics show that approximately 70 percent of all reports contain at least one error. These mistakes can sometimes cause you to be turned down when applying for credit, or to be charged a much higher interest rate for a loan or credit card.

Your right to challenge incorrect or obsolete reporting in your credit file is protected by a federal law known as the Fair Credit Reporting Act (FCRA). The FCRA is primarily concerned with credit bureaus and credit reports. The intent of the FCRA is to protect you against mishandling or abuse of your credit report information, and to provide you with legal tools to repair and improve your credit. The Fair Credit Reporting Act (FCRA) grants you important rights as a credit consumer. You have the right to dispute any information in your report that you feel is false, obsolete, incomplete, or incorrectly entered. By disputing an entry, you are challenging the accuracy of what is reported on your credit statement and you neither admit nor deny your liability for the debt.

Under the Fair Credit Reporting Act, it's not difficult to get rid of mistakes, but it can take time for everything to be corrected. There may be an exchange of mail, e-mail or phone calls that need to take place to communicate the changes that need to be made.
Whether you want to correct your credit report, address previous credit problems, or maintain your existing good credit profile, the following information will address the appropriate steps to take so you may better understand and employ the right approach.

If you have been denied credit, have a dispute, or just want to know what's in your credit file, you would need to request a credit report from all three major credit bureaus to be certain that you have a complete picture of your credit file, or that you have completely removed any incorrect or obsolete information that may appear in any credit report.

Promises:
Working together with your Money Coach you'll

• Give your settlement a check-up with a review from a Certified Divorce Financial Analyst
• Get a free legal consultation if there are issues that need to be revisited
• Make sure you are being taxed at the right rate
• Modify how you spend so that it works in these new circumstances
• Build a credit score for your future that's all about you
• Have more money in your pocket at the end of every month, guaranteed.