Planning Potpourri

■ What to do with Some Spare Cash: Tax refund, property finally sold, big
birthday gift, what should you do with the dough?: ◙  Buy
term life insurance. Everyone’s savings and retirement plans and house values
have been hammered. If you get hit by a bus tomorrow will your family make it?
Buy at least a 10 year term policy to supplement your family’s savings until
your asset values regain former ground to support them. And since the estate
tax looks long lived, you might just opt for a more comprehensive revision of
your insurance plan. ◙  Consult
with a fee only financial planner. They are objective. Everyone’s finances and
planning has been put through the mill. Spend a few buck to get an objective
non-sales compensated expert to look at your estate plan, investments,
retirement planning, and get you back on track. ◙  Pay
down costly debt. Some folks still have credit card and other debt that is
accruing interest at high rates. Line up all your bills and pay off the most
costly first. If you are at risk of not being able to pay off your debts, call
up your creditors and tell them how much debt you have and what cash you have
and offer to strike a deal. Some may be very willing to cut what you owe to get
paid. If you can selectively do this you might get yourself “out from under” a
lot of pressure for a lot less money than you thought you needed, and back on
track to rebuilding. ◙  Put
it away for that rainy day fund mom always warned you to have but which many people
forgot about. Sorry mom! Many investors were really hurt by the market declines
because they did not have a cash reserve to fall back on. As a result they had
to liquidate stocks and missed out on the 50% recent run up in the market.

■ ID Theft.  If your wallet was lost or stolen, report to it
immediately to the IRS ID Theft Unit 800-908-4490. Your account will be flagged
immediately. So if the “bad guy” makes any filing or refund request under your
name or Social Security number it will be flagged and the IRS will contact you
before taking any action.

■ Money Service Business. You thought an MSB meant a bank! A hotel, corner
grocery store selling money orders and other businesses can be ensnared by the
tough anti-money laundering compliance program. Your business needs a policy
and procedures appropriate to the size and sophistication of the business.  MSBs must register with FINCEN as money
service business and renew by the end of second year from the initial
registration. Maintain check cashing activity logs. Transactions over $10,000
must be reported. The penalties for non-compliance are huge!  For info see www.fincen.gov
 go to MSB link, or www.irs.gov and click to MSB info. Center.