CHECKING OUT THE BEACH IN
GALVESTON.
THEY GOT THE CLOUDS AND THE RAIN
JUST LIKE WE DO HERE IN H-TOWN.
YOU KNOW TODAY IS TAX DAY.
AND IF YOU'RE ONE OF THOSE
WAITING UNTIL THE VERY LAST
MINUTE TO FILE, YOU HAVE JUST
HOURS NOW TO MAKE THE DEADLINE.
>> I FILED AN EXTENSION, OKAY?
IT'S GOING TO WORK OUT.
IF YOU FILED ON TIME, WHAT IS
NEXT AFTER YOU FILE?
AND IF YOU GOT A TAX REFUND,
WHAT'S THE BEST WAY TO USE IT?
HERE WITH TIPS TO TO HELP GET US
PREPARED FOR NEXT YEAR IS
CERTIFIED FINANCIAL PLANNER
TREVOR SHAKIBA.
>> I LOVE THAT YOU'RE GETTING US
READY FOR NEXT YEAR.
>> EXCITING DAY.
>> GETTING READY FOR NEXT YEAR.
WE JOKE ABOUT IT BEING A YEAR
AWAY, BUT BEING ORGANIZED AND
READY IS THE KEY TO AVOIDING THE
HEADACHE ON TAX DAY, RIGHT?
>> ABSOLUTELY.
BE PRO-ACTIVE.
I'M SO EXCITED TO BE BACK AND
THIS IS OUR FOURTH EDITION OF
OUR FINANCIAL GAME SHOW.
DERRICK IS CURRENTLY LEADING
2-1.
>> WHAT A SHOCK.
>> THIS IS PROBABLY THE MOST
IMPORTANT GAME SHOW WE'RE GOING
TO DO AND WITH THAT, LET'S GET
STARTED.
>> ALL RIGHT, GAME SH HOSTS.
>> USUALLY WE RUN A LITTLE GAME
SHOW ANIMATION, BUT IT'S NOT
RUNNING.
GO AHEAD AND ASK US.
>> ALL RIGHT.
IT'S TAX DAY.
IT MESSES EVERYTHING UP, RIGHT?
>> IT DOES.
>> QUESTION NUMBER ONE, TRUE OR
FALSE, YOU SHOULD DO EXACTLY THE
SAME THING FOR NEXT YEAR'S TAX
RETURN AS YOU DID FOR THIS YEAR.
DERRICK?
>> FALSE.
>> THAT IS CORRECT.
AND BELIEVE IT NOT, I'M
GIVING OUT MONEY.
>> OH, LET IT RAIN ALL UP I
HERE.
>> $1,000.
THAT'S ABSOLUTELY CORRECT.
MORE THAN LIKELY, YOU PROBABLY
MADE SOME MISTAKES AND IN
DERRICK'S CASE, YOU
PROCRASTINATED A LITTLE BIT.
>> AND IN DERRICK'S CASE, YOU
DIDN'T FILE AT ALL.
>> BUT SHOULDN'T YOU EVERY YEAR
KIND OF EVALUATE WHAT DEDUCTIONS
YOU'RE TAKING AND ALL THAT SORT
OF THING.
>> EXACTLY.
THAT'S MY GREAT TRANSACTION.
BE PRO-ACTIVE.
BE ORGANIZED, USE SOFTWARE AND
YOU CAN BE IN A MUCH BETTER
POSITION NEXT YEAR.
>> ALL RIGHT.
>> AGAIN, TRUE OR FALSE.
IT'S ESTIMATING OVER ONE BILLION
IS LEFT ON THE TABLE EACH YEAR
FROM INDIVIDUALS THAT DO THEIR
TAKES P.
>> DO THEIR TAXES WRONG?
I WOULD GUESS THAT'S TRUE.
>> INDEED THAT IS TRUE.
>> EAGER BEAVER OVER THERE!
>> BECAUSE PEOPLE MESS UP THEIR
TAXES AND THEY --
>> BOCKLES THE MIND.
ONE -- BOGGLES THE MIND.
>> ONE MILLION DOLLARS?
>> ONE BILLION DOLLARS.
ONE OUT OF FIVE FOLKS THAT DO IT
THEMSELVES DO NOT GET THE
APPROPRIATION DEDUCTIONS OR
CREDITS.
SO THIS IS ANOTHER GOOD TIME
BEYOND THAT JUST TO BE THINKING
ABOUT YOUR WITHHOLDINGS.
ARE YOU WITHHOLDING ENOUGH?
ARE YOU GETTING ENOUGH MONEY
BACK WHICH YOU DON'T WANT TO DO
THAT EITHER.
LOOK FORWARD.
>> IS IT ME OR IS IT GETTING
REALLY WARM IN HERE, GUYS?
>> ALL RIGHT, JENNIFER.
HERE WE GO.
QUESTION THREE.
ONE OF THE BEST WAYS TO SAVE
MONEY ON TAXES IS TO CONTRIBUTE
TO --
>> TRUE.
>> WHAT WAS THE QUESTION?
EXCUSE ME!
>> I DON'T CARE.
I WANT TO BE AN EAGER BEAVER.
>> CONTRIBUTE TO WHAT,
JENNIFER BROOME?
>> I DON'T KNOW, BUT I WON.
>> A THOUSAND DOLLARS.
>> WHAT ON EARTH -- WHAT WAS THE
QUESTION?
>> CONTRIBUTE TO YOUR 401(K).
OKAY.
AND BEFORE WE TALK MORE ABOUT
THAT, REMEMBER DON'T LEAVE MONEY
ON THE TABLE.
IF YOUR COMPANY OFFERS A MATCH,
YOU HAVE TO GET THE FULL MATCH.
BUT IF YOU SAVE IN PRETAX TO
YOUR 401(K), THAT ACTUALLY
LOWERS YOUR TAXABLE INCOME.
SO NOW WOULD BE A GOOD TIME TO
SEE IF YOU WANT TO START YOUR
401(K) OR ACTUALLY INCREASE IT.
>> YOUR PERCENTAGE.
>> SORRY TO INTERRUPT.
IS THERE A GOOD RULE OF THUMB,
LIKE IF YOU'RE SIGNING UP FOR
YOUR 401(K) OR LOOKING AT YOUR
CONTRIBUTIONS, IS THERE A GOOD
RULE OF THUMB OR DOES IT JUST
DEPEND ON THE PERSON?
LIKE SHOULD IT BE 5%, 10%, MORE?
>> WELL, THAT GOES BACK TO
FINANCIAL PLANNING AND HAVING A
PLAN IN PLACE TO KNOW WHAT YOU
ACTUALLY NEED TO ACHIEVE.
AND I THINK THE STARTING POINT
IS IF YOU'RE COMPANY IS GIVING
YOU A 5% MATCH, YOU GOT TO GET
5%.
>> THAT'S BASICALLY FREE MONEY
COMING TO YOU, RIGHT?
>> OH, YEAH, ABSOLUTELY.
YOU DON'T WANT TO GIVE
UNNECESSARILY DOLLARS AWAY,
RIGHT?
>> OKAY.
>> GET THAT FREE CASH.
>> NUMBER FOUR, YOU SHOULD
ALWAYS SAVE ALL OF YOUR MONEY
INTO RETIREMENT ACCOUN PRETAX?
DERRICK.
>> OKAY.
I'M GOING TO SAY FALSE TO THIS.
HOWEVER, I SEE HOW IT'S A GOOD
IDEA.
>> JUST STOP IT RIGHT THERE.
YOU ARE CORRECT.
>> I KIND OF WENT, HMM.
>> HERE'S MY POINT HERE.
ESPECIALLY FOR THE YOUNGER
VIEWERS OUT THERE.
YOU MA MAY NOT WANT TO BE SAVING
EVERYTHING PRETAX
YOU'RE GOING TO TAI PAY THE
TAXES TODAY OR LATER, BUT YOU
SAVE AFTER TAXES TO A ROTH
401(K) OR 401(K), AND NEVER PAY
TAXES, IT CAN BE POWERFUL TO
ACHIEVE YOUR FINANCIAL GOAL.
>> THEN YOU HAVE GROWTH ON YOUR
TAX-FREE MONEY.
>> NEVER TAX NEVER AGAIN,
POWERFUL.
>> WHEN SHOULD YOU OPEN THAT
ROTH REQUIREA?
>> IT GOES -- IRA?
>> IT GOES BACK TO THE PLAN.
IS DEBT UNDER CONTROL.
ARE YOU GETTING THAT MULL MATCH.
AND -- FULL MATCH.
THEN YOU MAY WANT TO OPEN UP A
ROTH IRA OR DO SOMETHING ABOVE
YOUR 401(K).
>> THAT'S A LONG-TERM PLAN,
RIGHT?
>> FOR RETIREMENT.
YES.
>> I LOVE THESE SEGMENTS BECAUSE
IT'S LIKE GETTING FREE FINANCIAL
ADVICE.
FREELY FREE TO SEND -- FEEL FREE
TO SEND US A BILL.
>> THIS IS A -- STARTING A
BUSINESS ON THE SIDE COULD
POTENTIALLY HELP FROM A TAX
PERSPECTIVE?
>> OH, YEAH, YEAH.
>> I'M GIVING YOU ALL THE MONEY.
THIS IS ALL THE MONEY THAT I
HAVE.
>> WOW.
>> BUT IT IS TRUE.
NOW, BEFORE EVERYONE GOES OUT
AND JUST STARTS A BUTCH
BUSINESSES, YOU -- A BUNCH OF
BUSINESSES, YOU NEED TO CONSULT
WITH YOUR CPA AND TAX ATTORNEY.
IT HAS TO BE LEGIT.
YOU NEED TO BE TARGETING PROFIT.
YOU CAN'T BE GETTING LOSSES
EVERY YEAR.
THE OTHER IS REAL ESTATE.
THIS COULD BE A GOOD STRATEGY
WITH RENTAL PROPERTIES TO LOWER
YOUR TAXABLE INCOME.
>> AREN'T LIKE MORTGAGE RATES
AND EVERYTHING REALLY LOW SO
IT'S A GOOD TIME TO THINK REAL
ESTATE?
>> ABSOLUTELY, ESPECIALLY
CONSIDERING THAT RATES LOOK LIKE
THEY'RE GOING TO CONTINUE TO
TREND UP.
SO THAT MIGHT BE A GOOD
OPPORTUNITY TO LOOK AT A RENTAL
PROPERTY OR SOMETHING LIKE THAT.
>> AND BY THE WAY, SPEAKING OF
BUSINESSES, IF THERE ARE
FREELANCERS OUT THERE, THE
REASON WHY I STARTED A BUSINESS
YEARS AGO IS BECAUSE I WAS
FREELANCING AND MY ACCOUNTANT
SAID, YOU'RE PAYING SO MUCH IN
TAX, START A BUSINESS AND NOW
IT'S LIKE A WHOLE NEW WORLD.
I'M SO GLAD I DID THAT.
>> HOW DO I MAKE MY THOUSAND
DOLLARS TURN INTO ALL OF HIS
MONEY?
>> SO THIS IS A GREAT
TRANSITION.
IF YOU HAVE A TAX REFUND, WHAT
SHOULD YOU DO WITH IT?
>> YEAH.
>> FIRST THING, THIS MIGHT
SURPRISE YOU, ELIS BRACELET.
I'M NOT AGAINST -- CELEBRATE.
I'M NOT GET SELL PRAYING.
>> BY BUYING YOURSELF A NEW PAIR
OF SHUS.
>> NO.
CELEBRATE WITHIN REASON.
MAYBE GO OUT TO A NICE DINNER.
BUT TARGET AND SOLIDIFY YOUR
FOUNDATION.
PAY OFF THAT HIGH CREDIT CARD.
>> MAYBE 5%.
>> DON'T SPEND IT ALL ON AN
ENTIRE BOTTLE OF WAYNE.
MAYBE UNDER $20.
>> DO YOU SPLIT WHAT YOU WOULD
DO WITH THIS MONEY?
LET'S SAY YOU HAVE CREDIT CARD
DEBT BUT YOU ALSO HAVE
INVESTMENT AND SAVINGS GOALS.
SHOULD YOU TAKE ALL THE MONEY TO
PAY DOWN THAT HIGH INTEREST
CREDIT CARD DEBT FIRST BEFORE
CONSIDERING INVESTING?
>> SPREAD IT OUT.
>> PROBABLY SPREAD IT OUT.
BUT IF YOU HAVE A LOT OF HIGH
INTEREST CREDIT CARD DEBT AND NO
CASH RESERVE, IT ALL NEEDS TO GO
TO YOUR FINANCIAL FUNDAMENTALS
AND FOUNDATION.
IT REALLY DOES.
ONCE YOU GET A DECENT CASH
RESERVE AND YOUR DEBT IS UNDER
CONTROL, THEN MAYBE TARGET OVER
A ROTH IRA OR A 5 GENT 9 FOR
THE -- 529 FOR THE KIDS AND
THINK LONGER TERM.
>> THAT'S WHERE YOU COULD MAKE
THE MOST MONEY IN THE END,
RIGHT?
>> YOU'RE NOT GOING TO MAKE ANY
MONEY IN A CASH RESERVE, RIGHT?
VERY LOW INTEREST RATE.
BUT IF YOU'RE PAYING 15% ON A
CREDIT CARD, THAT'S WHERE IT HAS
TO GO BECAUSE YOU'RE PROBABLY
NOT GOING TO MAKE 15% IN YOUR
INVESTMENTS.
>> THAT CASH RESERVE IS
SOMETHING YOU RECOMMEND LIKE
ABOUT A SIX-MONTH CUSHION?
>> I START OUT THREE TO SIX
MONTHS.
IF YOU DON'T HAVE ONE NOW, JUST
TARGET MAYBE A THOUSAND DOLLARS.
AND BUILD FROM THERE.
>> OKAY.
PERFECT.
TREVOR, THANKS SO MUCH FOR
BRINGING ME ALL THIS MONEY.
>> AND TAKE YOUR TAX RETURN OVER
TO TREVOR AND HE'LL GET IT
INVESTED FOR YOU.
>> IF YOU'D LIKE TO CONNECT WITH