Tips

Being named as an executor sounds straightforward until the paperwork arrives, the deadlines stack up, and phone calls from financial institutions start coming in. Many people accept the role with good intentions, only to find themselves navigating tax rules, probate demands, and administrative work that wasn’t explained clearly at the beginning. A CPA can step in as a steady guide, offering practical support that helps executors stay organized and compliant while protecting the estate’s value. 

Estate Responsibilities You Assume as Executor

The moment you accept the position, the estate relies on you to keep financial details accurate and accessible. You’re responsible for gathering records, identifying assets, locating beneficiaries, and dealing with creditors. Some estates involve investment accounts spread across institutions. Others include real property that needs maintenance during probate. You may find insurance policies, pensions, or employer benefits that require forms submitted within specific timeframes. A CPA helps you set up a system to track each of these tasks, reducing the risk of missed deadlines or incomplete filings.

Understanding tax issues early is essential. Estates often require a final personal income tax return for the individual, and depending on the size or structure of the estate, you may also need to file an estate income tax return. A CPA walks you through which forms apply, how income should be reported, and whether specific filings can reduce the estate’s overall tax burden. Executors frequently underestimate how many documents they must coordinate, and a CPA brings clarity to what stays, what gets submitted, and what must be preserved.

Why Executors Need Financial Clarity

When you take responsibility for managing someone else’s financial affairs, decisions must be transparent and well-documented. Beneficiaries expect updates, and in some cases they may question valuations or the timing of distributions. Having a CPA maintain the estate’s accounting removes guesswork and helps prevent misunderstandings. Clear ledgers of expenses, receipts, and asset values create a record that stands up to outside review.

This kind of clarity also matters when debts surface. Creditors sometimes file claims late in the process or attempt to collect amounts that aren’t valid. A CPA helps you sort legitimate obligations from questionable ones and ensures payments follow state rules. If an estate distributes funds incorrectly, the executor may become personally liable. Working with a CPA reduces that risk by creating a defensible financial trail and verifying that funds move according to regulations.

Managing Estate Taxes and Deadlines

Tax planning may not be your first concern when someone passes away, but ignoring early filing requirements can complicate probate. Even small estates can trigger tax responsibilities, especially if income continues after death through investments or rental properties. A CPA helps you determine whether the estate needs an Employer Identification Number, which returns are due, and how to track income that arrives during administration.

Deadlines vary, and several filings must happen within months of the individual’s passing. There may also be opportunities to make elections that lower taxes or preserve certain benefits, but these choices often expire if not addressed promptly. A CPA keeps the estate aligned with the calendar, simplifying communication with attorneys, financial institutions, and beneficiaries.

Asset Valuation and Distribution Planning

One of the more challenging aspects of being an executor is ensuring the estate distributes assets fairly. When items must be sold, you need accurate valuations. When assets transfer directly to beneficiaries, paperwork must reflect the correct ownership details. A CPA helps document appraisals, evaluate market conditions, and structure distributions that comply with the will and state law.

Some estates include business interests or complex investments. These require careful analysis to determine tax implications and fair market value. A CPA works alongside appraisers or legal counsel to prepare financial summaries that support your decisions. Each step you take as executor becomes easier when you have professional documentation to reference.

Handling Real Property and Ongoing Expenses

Real estate within an estate can become a burden if expenses accumulate or maintenance is ignored. Utility bills, insurance, and property taxes don’t pause during probate. A CPA helps you set up temporary financial systems to manage these obligations while you wait for court approval or buyer interest. When the estate holds multiple properties, staying organized becomes even more important.

If the will directs a sale, the CPA can help you track costs that may factor into tax filings later. If the property transfers to a beneficiary, financial documentation supports a smooth transition. Clear accounting keeps the estate protected and prevents future disputes about how funds were used while you served as executor.

Working With Financial Institutions

Banks, investment brokers, and retirement plan administrators all have their own timelines and forms. Some require certified documents. Others won’t release information until you submit specific identification. A CPA helps you prepare what each institution needs and organizes the responses you receive. This saves time and reduces the risk of delays that slow the estate’s progress.

When accounts include taxable gains, losses, or required minimum distributions, the CPA guides you through how to handle those items in filings. Executors often underestimate the variety of tax positions an estate may hold, and early oversight keeps everything consistent from the start.

Reducing Stress and Protecting Your Time

Acting as executor can feel like a second job, especially when you’re balancing work, family, and the emotional weight of the situation. A CPA lightens that load. With professional support, tasks become predictable. You know which steps come next, which documents matter, and where each piece of information belongs. The estate moves forward without unnecessary obstacles, and you feel more secure in the choices you make.

A CPA also acts as a buffer when beneficiaries have questions or concerns. Instead of managing those conversations alone, you rely on clear financial records and professional explanations. This helps maintain family harmony and keeps the process centered on the estate’s goal—rather than personal conflict.

Serving as an executor doesn’t have to feel unmanageable. With a CPA guiding the financial and tax responsibilities, you protect the estate, maintain compliance, and move through each stage with confidence. If you’ve been named as an executor, early professional support is one of the most effective ways to protect your time, reduce stress, and complete your duties accurately.

by Kate Supino

Side hustles have become a normal part of life. Maybe you drive for a rideshare app after work, sell custom candles online, or do a bit of freelance design on weekends. Whatever your side gig looks like, the extra income feels great—until tax season rolls around and things get complicated.

Many people start a side hustle thinking it’s too small to matter. But the IRS sees income the same way, whether it comes from an office job or weekend projects. The key is knowing what to report, how to track it, and how to stay out of trouble without giving up too much of what you earn.

Why Side Hustle Income Counts

It might seem like the money you make on the side shouldn’t need reporting, especially if you didn’t earn much. But that’s not how taxes work. Any income—cash, digital payments, or checks—usually counts. Even if you never receive a tax form, it’s still your responsibility to include it when you file.

This catches a lot of new freelancers off guard. You might have thought of it as “extra” money, not “business” money. But once you accept payment for work or goods, it becomes taxable income. Treating your side hustle like a small business helps you stay organized and keeps surprises to a minimum when tax time hits.

The Self-Employment Tax Surprise

Here’s where many side hustlers first feel the sting: no employer is withholding taxes for you. That means you owe both income tax and self-employment tax, which covers Social Security and Medicare. When you’re on a payroll, your employer pays half of that for you. When you’re self-employed, you pick up the full tab.

It’s not all bad news, though. You’re also eligible for business deductions that regular employees don’t get. And by making small estimated payments quarterly, you can avoid a big tax bill at the end of the year. A simple habit—setting aside roughly a quarter of what you earn—can save you a lot of stress later.

Tracking Expenses That Actually Help

If you spend money to keep your side business going, some of those costs may reduce your taxable income. Think of things like supplies, software subscriptions, mileage, or part of your internet bill if you use it for work.

The golden rule is simple: if it helps you earn your side income, it’s worth tracking. Keep receipts, take photos of invoices, or use a simple bookkeeping app. Even if your operation is tiny, staying organized helps you avoid mistakes and see how much you’re really making.

Over time, those deductions add up. They also make your tax return cleaner and easier to defend if you’re ever asked for proof.

The Hobby vs. Business Question

One thing that can confuse people is whether their side activity counts as a hobby or an actual business. The difference matters. A hobby earns money for fun; a business exists to make a profit. If you put time and effort into growing your side work, advertise your services, or rely on the income regularly, the IRS is more likely to treat it as a business.

Why does that matter? Because hobby expenses are limited, but business expenses can be fully deductible. If you’re not sure which side you fall on, that’s where a CPA’s advice can be worth its weight in gold.

Staying Ahead With Good Records

Organization is everything when it comes to taxes. Mixing personal and business transactions makes life harder, so it helps to open a separate bank account for your side hustle. That way, every dollar in and out is easy to track.

Download your payment histories from apps or marketplaces once in a while and store them safely. Keep your receipts in a digital folder or even a shoebox—whatever works for you. The goal is to be able to prove your numbers if you ever need to. It also makes next year’s taxes a lot less stressful.

Planning For Estimated Taxes

Because there’s no employer withholding money for you, the IRS expects you to pay taxes as you go. That’s why many side hustlers send quarterly estimated payments. It’s not as scary as it sounds. You can calculate what you owe based on your income so far and send payments online.

If you also have a regular job, you can adjust your paycheck withholding instead. Increasing it slightly can help cover your side income taxes, so you’re not scrambling later.

Knowing When To Ask For Help

At first, managing taxes for your side hustle might feel simple enough. But as your income grows or your deductions expand, it can quickly get more complicated. A CPA can help you set up a structure that fits your situation, find deductions you might miss, and make sure you’re paying what you should—no more, no less.

Tax laws shift every so often, and what’s true this year might look different down the road. Having professional guidance helps you stay ahead of changes instead of scrambling to catch up.

Turning Knowledge Into Confidence

Understanding how taxes work for your side hustle isn’t just about avoiding penalties—it’s about taking control. When you know what’s expected, you can plan ahead. You’ll save better, spend smarter, and understand the real value of your extra work.

There’s a quiet sense of relief that comes from knowing you’re doing things right. The goal isn’t perfection—it’s progress. A little preparation now means fewer headaches later.

The Takeaway

A side hustle can bring financial freedom, flexibility, and maybe even the seed of a future business. But it also comes with responsibilities that can’t be ignored. Treating your side income like a business from day one—keeping records, tracking expenses, and planning for taxes—keeps you ahead of the curve.

When in doubt, lean on your CPA. They’ll help you navigate the gray areas, make sense of your numbers, and build a plan that fits your life. Because when you handle the tax side right, your side hustle can stop feeling like a scramble—and start feeling like success.

by Kate Supino

Caring for aging parents is one of those life chapters that arrives quietly, then suddenly becomes all-consuming. One day, you’re helping with errands or sorting mail; before long, you’re managing appointments, medications, and the costs that come with both. It’s a labor of love—but it’s also a financial commitment that requires foresight, patience, and sometimes, tough choices.

Whether you’ve already stepped into a caregiving role or see it on the horizon, preparing financially can make a huge difference. With the right planning, you can care for your parents without derailing your own stability or future goals.

Start With an Honest Financial Picture

The first step is getting clarity on what your parents have—and what they might need. This can be uncomfortable, especially if money hasn’t been an open topic in your family. But these conversations are essential. Ask about income sources like Social Security, pensions, savings, or long-term care insurance. Find out about recurring expenses, debts, and medical coverage.

Once you have a full picture, you’ll be able to see where gaps exist. Maybe their retirement savings won’t stretch far enough to cover home care or assisted living. Maybe their insurance doesn’t fully cover prescription costs. The sooner you identify shortfalls, the more options you’ll have to plan around them.

Understanding the True Cost of Care

Caregiving expenses vary widely. Some families can manage with minimal outside help, while others face steep costs for full-time care or medical support. In-home assistance, medication management, and mobility equipment add up quickly—and that’s before considering modifications to a home for safety and accessibility.

If your parents hope to age in place, research what local support services exist. Some communities offer subsidized transportation, meal delivery, or part-time caregivers at reduced rates. Knowing what’s available can prevent unnecessary financial strain later.

Protecting Your Own Financial Health

It’s natural to want to do everything possible for your parents, but it’s also easy to lose sight of your own financial footing. Many adult children dip into savings, cut back on work, or even take on debt to help parents manage expenses. Over time, that can compromise your own retirement security and lead to you paying a financial price that you hadn’t bargained for. There’s no need for you and your family members to be financially burdened just because you choose to care for your aging parents. 

First, set clear financial boundaries early. Decide what you can realistically contribute—whether that’s a fixed amount toward medical bills, groceries, or utilities—and communicate that clearly with your family—and with yourself. If siblings or relatives are involved, divide responsibilities in a way that feels fair. Emotional balance often starts with financial transparency.

It also helps to create a separate budget for caregiving costs. Tracking expenses separately keeps you from underestimating how much is being spent and helps identify areas where adjustments can be made. You might have to start thinking more creatively in order to get what’s needed, but there are lots of resources available, including the help of your CPA who is experienced with this exact kind of scenario.

Legal and Financial Documents You’ll Need

Caring for aging parents often means stepping into decision-making roles. Having the right documents in place ensures you can act quickly if needed. These typically include:

• A power of attorney for finances and healthcare

• An advance healthcare directive

• A will or estate plan

• Access to insurance and retirement accounts

If these documents don’t yet exist, encourage your parents to meet with a CPA or estate attorney. Having these tools in place isn’t about control—it’s about peace of mind for everyone involved.

Exploring Tax Deductions And Financial Assistance

There may be tax benefits to caregiving that people often overlook. Depending on the situation, you might be able to claim your parent as a dependent or deduct certain medical and caregiving expenses. A CPA can help determine what applies in your case and how to document those costs properly.

It’s also worth exploring state and federal programs that provide financial support to family caregivers. Some states even offer small stipends or reimbursement for those who provide care at home.

Planning For The Long Term

As your parents’ needs evolve, so will your financial responsibilities. What starts as occasional help can turn into daily care over time. Long-term planning should include both the emotional and financial aspects of this journey.

Look ahead to potential care options, such as assisted living or nursing facilities, and learn their average costs in your area. Even if those steps are years away, early preparation makes transitions smoother. Discussing these topics openly with your parents now prevents confusion and stress later.

It’s also smart to revisit your own financial goals regularly. Keep contributing to your retirement accounts, maintain an emergency fund, and avoid sacrificing your financial independence for short-term caregiving costs. You’ll serve your parents better when your own financial base remains secure.

When To Bring In Professional Help

Financial planning for caregiving isn’t just about crunching numbers—it’s about balance. A CPA or financial planner can help create a budget that aligns your parents’ resources with your own, identify tax strategies, and evaluate long-term care insurance or investment adjustments.

They can also help you avoid unintentional missteps, like spending from the wrong account or missing benefits your parents qualify for. In emotionally charged seasons, having an objective expert in the mix brings calm and structure.

Moving Forward With Confidence And Care

Caring for aging parents will always carry emotional weight. But financial clarity lightens the load. By understanding their finances, protecting your own, and planning for what’s ahead, you create stability for everyone involved.

The goal isn’t perfection—it’s preparedness. Each conversation, each budget, each plan brings you closer to a future where care feels manageable instead of overwhelming. When love is paired with financial wisdom, both generations benefit in lasting, meaningful ways.

by Kate Supino

The thought of early retirement is very alluring, especially when retirement is so close you can easily envision it. But early retirement is not unlike the Song of the Sirens. It can pull you into the rocks or sail you through a shortcut to happiness that you likely richly deserve after a life spent working hard. Before you allow yourself to be swallowed up by too many daydreams and not enough critical forethought, consider the pros and cons of taking early retirement.

Reduced Earning Years

Retiring early means reducing the number of years you’re actively earning income—with multiple ramifications. That means fewer contributions to retirement accounts, less time for investments to grow, and fewer opportunities to boost savings. Missing even five years of peak earnings can change retirement projections significantly. For small business owners, leaving early may also mean stepping away during the years when their business is most profitable, potentially reducing both salary and eventual sale value.

The Social Security Question

Social Security benefits are one of the most critical financial levers in retirement. Claiming them before full retirement age results in permanently reduced payments. For example, retiring at 62 rather than 67 can cut monthly benefits by up to 30 percent. That reduced income must be replaced from other sources, which can strain personal savings. On the other hand, some retirees calculate that starting earlier helps them collect for a longer period, especially if health concerns limit longevity. The decision comes down to balancing current needs against long-term security.

Healthcare Before Medicare

One of the hidden costs of early retirement is healthcare. Medicare doesn’t begin until age 65, so anyone retiring before then must find alternative coverage. Marketplace plans can be expensive, and private coverage even more so. Premiums, deductibles, and out-of-pocket expenses can eat into savings quickly. Business owners who retire before 65 may also lose access to group health benefits they provided through their company, leaving them to navigate the individual market. This cost alone is often a deciding factor for whether early retirement makes sense.

The Longevity Challenge

Money has to last as long as you do, and leaving the workforce early means stretching assets over a longer retirement. Someone retiring at 55 could face 30 to 40 years of living expenses. Inflation, market volatility, and unexpected emergencies only add pressure. Without careful withdrawal planning, even substantial savings can dwindle faster than expected. Working with a CPA or financial planner to model different scenarios—optimistic and pessimistic alike—can help reveal whether the numbers hold up.

Tax Implications of Early Withdrawals

Retiring early often means tapping into retirement accounts before age 59½. Doing so can trigger early withdrawal penalties in addition to ordinary income tax, unless exceptions apply. Even without penalties, drawing income earlier can push you into higher tax brackets in the years you’re still paying down debt or covering dependents’ expenses. On the flip side, leaving the workforce early may create windows of lower taxable income, which can be used strategically to convert traditional retirement funds into Roth accounts at a lower tax cost.

Impact on Business Succession

For business owners, the question of early retirement carries added complexity. Exiting the company earlier than planned may mean selling at a discount, passing leadership before the next generation is ready, or missing the opportunity to capture higher valuations in stronger markets. Business succession is rarely a quick process, and early retirement can force rushed decisions. A CPA can help structure buy-sell agreements, valuations, and tax strategies to preserve as much wealth as possible during the transition.

Housing and Lifestyle Adjustments

Though money is the central issue, lifestyle choices inevitably tie back to financial planning. Downsizing to a smaller home, relocating to a state with lower taxes, or cutting back on discretionary expenses can help savings last longer. Some retirees choose to stagger expenses—handling home renovations or major purchases while they’re still working—so that those costs don’t hit their retirement accounts too early. These adjustments make financial sense because they directly influence cash flow needs in retirement.

Opportunities for Semi-Retirement

Not every early retirement decision is an all-or-nothing choice. Some individuals step back from full-time work but continue part-time consulting or project-based roles. Business owners may keep a seat on the board after selling or gradually shift responsibilities while drawing reduced income. This semi-retired model provides income that supplements savings, reduces the draw on investment accounts, and softens the tax impact of a complete withdrawal from the workforce.

The Psychological Side, With Financial Consequences

It’s worth noting that early retirement also comes with non-financial adjustments. While the main focus here is money, how you spend your time affects your finances, too. Boredom or loss of structure can lead to overspending on a daily basis, which is like unplugging the drain hole on your coffers. 

Balancing Pros and Cons

On the positive side, early retirement means enjoying more years of health and freedom, reducing work stress, and gaining flexibility to pursue other interests. On the negative side, it brings reduced Social Security benefits, higher healthcare costs, fewer earning years, and the risk of running out of money. For small business owners, the stakes are even higher since the timing of retirement often influences both the business’s value and the owner’s personal wealth.

The Role of Professional Guidance

Ultimately, early retirement is a numbers game that benefits from professional oversight. CPAs can evaluate tax implications, model different retirement ages, and assess how savings, investments, and business assets align with long-term goals. What looks possible at first glance may carry hidden risks without a detailed financial analysis. Conversely, creative tax and investment strategies may make early retirement feasible for those who assume it’s out of reach.

In the end, the choice comes down to preparation. With the right planning, early retirement can be more than a dream—it can be a financially sound reality. Without preparation, it risks becoming a costly mistake. Taking the time now to review your situation with a CPA ensures that whichever path you choose, it’s one built on a solid financial foundation.

by Kate Supino

A good credit score can open doors to better interest rates, easier loan approvals, and even lower insurance premiums. On the flip side, a weak score can hold people back financially, making everyday decisions like buying a car or refinancing a home more difficult. Many clients know they should aim higher, but the question is how. Improving your credit score isn’t about overnight tricks—it’s about consistent, strategic steps that add up over time.

Understanding Credit Scores

Before getting into the nitty gritty of different strategies to bring up your credit score, it’s important to know what makes up a credit score in the first place. Payment history is the largest factor, followed by credit utilization, length of credit history, types of credit, and recent inquiries. Each element plays its part, and ignoring even one can drag the overall score down.

Paying Bills on Time

You can’t go back in time and change your payment history. But you can make sure that all your future payments reach your creditors before or on their due dates. Even one missed payment can linger on a credit report for years. Setting up automatic payments or reminders through a bank or budgeting app can prevent slip-ups. Be careful if you use bank-supported bill payment apps. These often send checks by mail, which can be delayed for an astoundingly long time. If you’re really committed to making sure your payments get to their destination on time, consider paying creditors online from their own website or even paying in person at utility companies. 

Lowering Credit Utilization

Credit utilization measures how much of your available credit you’re using. High balances relative to credit limits can signal financial strain to lenders. Ideally, individuals should keep their utilization under 30%, but lower is better. Paying down balances, requesting a higher limit without increasing spending, or spreading expenses across multiple cards can all help reduce this ratio. It’s tempting to dip into extra credit when you see something that’s a “great deal,” but waiting until you have the cash in the bank to pay for it will support your long-term credit goals much better.

Managing Debt Strategically

Carrying multiple debts not only hurts utilization but also creates a juggling act that can easily lead to accidentally missed payments. Strategies like the snowball method—paying off smaller debts first for momentum—or the avalanche method—targeting higher-interest accounts to save money—can help clients take control. Consolidation loans may also make sense, but only if they lead to steady repayment, not more borrowing.

Building and Maintaining Credit History

Length of credit history makes up a smaller percentage of the score, but it’s still meaningful. Closing old accounts, even those no longer in active use, can shorten the average history and reduce available credit. Instead of shutting down older cards, it may be smarter to leave them open with minimal activity, ensuring they continue to reflect positively on the report. Basically, if it’s not hurting your credit, leave it alone.

Diversifying Credit Types

Credit scoring models reward consumers who can responsibly manage different forms of credit, such as credit cards, car loans, and mortgages. That doesn’t mean opening unnecessary accounts, but it does mean recognizing that a healthy mix signals reliability. For example, someone with only revolving credit might benefit from responsibly managing an installment loan. Just beware that installment loans usually come with exorbitant interest rates—especially for someone with less than ideal credit. If you have any doubt whatsoever that you’ll be able to pay it down within a month or two, steer clear.

Checking Reports for Errors

Credit reports aren’t flawless, and errors can drag down a score unfairly. Reviewing reports from the three major bureaus—Equifax, Experian, and TransUnion—at least once a year can catch mistakes. Disputing incorrect late payments or accounts that don’t belong to the individual can result in quick improvements. Since clients are entitled to free annual reports, there’s no reason to skip this step. Consider signing up for a paid credit monitoring service if you’re interested in keeping a closer eye on your scores. This kind of service lets you check in every day if you want, and it can also provide insight into the kinds of credit activities that raise and lower scores.

Using Tools to Build Credit

For those with thin or damaged credit files, specialized tools can help. Secured credit cards, for example, require a deposit but build a record of responsible use. Some services also allow rent and utility payments to be reported to credit bureaus, adding positive history that might otherwise go unrecognized.

Practicing Patience

Credit scores don’t rise overnight. The best improvements happen steadily, through responsible habits that compound over time. Trying to “game” the system with quick fixes often backfires, while consistent steps like reducing debt, paying on time, and monitoring reports lead to lasting gains.

Why It Matters

A stronger credit score goes beyond securing a loan. It can mean lower interest rates, better terms on insurance, and even stronger bargaining power in negotiations. Over time, those savings add up, making credit health a crucial part of personal financial planning.

Taking the Next Step

Improving a credit score is less about mystery and more about discipline. By focusing on the areas that matter most—timely payments, debt management, and smart credit use—clients can put themselves on a path toward long-term financial stability.

For those who feel overwhelmed, this is where a CPA can step in. Reviewing financial habits, creating a debt payoff plan, and providing accountability are all ways professionals can guide clients through the process. Better credit not only improves immediate opportunities but also supports broader financial goals, from buying a first home to planning for retirement.

In the end, building a stronger credit score isn’t just about numbers—it’s about options, security, and peace of mind. Taking consistent steps today paves the way for a more flexible tomorrow, and with the right plan, that future is well within reach.

by Kate Supino

These days, people worry about locking their front doors, but they often forget to secure something even more valuable—their personal data. From credit cards to Social Security numbers, a growing amount of information lives online. And while you might feel secure with a strong password or a trusted bank, cybercriminals are finding more ways than ever to get past those walls. Identity theft protection is no longer just a nice-to-have—it’s becoming a smart consideration for anyone with a digital footprint.

What Is Identity Theft?

Identity theft occurs when someone uses your personal information without your permission. This can include your name, birth date, Social Security number, credit card or bank details, and even medical or insurance data. Once stolen, that information can be used to open credit accounts, file tax returns, commit medical fraud, or worse.

In some cases, victims aren’t even aware until something goes wrong. A loan application may get denied unexpectedly. A tax refund might never arrive. Your credit score could suddenly take a dive with no obvious reason. By the time you notice the signs, the damage may already be extensive.

How Identity Theft Happens

Cybercrime is constantly evolving, but the tactics often look familiar. Clicking a link in a suspicious email, entering personal data on an unsecured website, or using public Wi-Fi for banking tasks can all expose your information. And while many people think it only happens to the careless, identity theft can happen even if you’re cautious.

Not all breaches come from personal mistakes. Businesses, medical offices, and government agencies have all experienced data breaches, exposing the personal information of millions. Your details may already be circulating without your knowledge.

What Identity Theft Protection Actually Provides

Most people think of identity theft protection as simply watching your credit report, but many services go far beyond that. The best protection plans usually include:

Monitoring - This includes surveillance of credit reports, bank activity, Social Security usage, and even dark web activity.

Alerts - If unusual behavior is detected—like a new account opened in your name—you’ll receive an immediate notification.

Recovery Services - If you do become a victim, professional help is available to guide you through restoring your identity and credit.

Additional features may include lost wallet assistance, legal help, reimbursement for stolen funds, and identity theft insurance, depending on the plan.

A CPA’s Viewpoint On Financial Risk

From a CPA’s perspective, identity theft isn’t just a personal issue—it’s a financial risk that can create serious disruption. Correcting fraudulent activity can require hours of phone calls, letters, and documentation. It may involve everything from police reports to tax return amendments.

If you're self-employed, have multiple investment accounts, or own a business, the stakes are even higher. Identity theft can compromise customer data, business filings, or sensitive records. For frequent travelers or people who manage finances online, that risk multiplies.

One area of increasing concern is tax-related identity theft. Criminals may file a tax return using your name and Social Security number to steal a refund. Often, this is discovered only when your legitimate return gets rejected by the IRS. Sorting that out is time-consuming and can delay refunds, create legal stress, and lead to long-term complications with your tax record.

Who Benefits Most From Identity Theft Protection?

While not everyone needs the same level of identity protection, some groups are at higher risk:

• Individuals with high credit limits or multiple accounts

• Seniors, who are often targeted by phone and email scams

• College students new to financial responsibility

• Families with children, whose unused Social Security numbers can be quietly misused

• Remote workers or freelancers who depend on cloud services or online banking

Even people with relatively simple finances may want extra protection for peace of mind. Identity theft creates emotional stress, not just financial headaches.

What Identity Theft Services Don’t Do

No identity theft service can prevent all incidents. They can’t stop hackers from breaching databases, and they can’t block every phishing attempt. What they can do is catch suspicious activity early and provide hands-on help when you need it most.

Think of these services like an alarm system. They won’t stop someone from trying to break in—but they can alert you when it happens and help clean up afterward.

Is Free Credit Monitoring Enough?

Many banks and credit card companies offer free credit alerts or score tracking. These are helpful, but they usually cover only part of the picture. For example, they won’t tell you if your personal information is being used to open accounts outside the major credit bureaus. They also don’t monitor your name on the dark web or offer recovery help if something goes wrong.

If your identity is stolen, free tools often leave you to manage the situation alone. By contrast, a full identity theft protection plan can provide you with step-by-step guidance, legal support, and even financial reimbursement.

Weighing The Cost Versus Value

Like many forms of insurance or financial protection, identity theft services come with a monthly or annual fee. Whether or not the cost is worth it depends on your risk level and personal comfort.

If you’ve already experienced a data breach or fraud, you may feel that added coverage is worth the peace of mind. Even for those who haven’t, the time and money saved in avoiding or resolving identity theft may make it a sound investment.

Think about what you would spend to resolve fraud on your own—between lost work time, legal costs, and stress—and compare that to the cost of coverage.

Smart Habits That Help Prevent Identity Theft

You can take action today to lower your risk, even without a paid plan. Consider these good habits:

• Use two-factor authentication for online accounts

• Avoid unsecured Wi-Fi networks for financial transactions

• Shred sensitive documents before discarding them

• Check your credit report annually at AnnualCreditReport.com

• Freeze your credit when not actively using it

• Never click links or download files from suspicious emails

These simple steps are effective in keeping your personal data away from prying eyes.

When To Bring In A CPA

Your CPA can offer more than tax advice—they can help you understand the financial impact of identity theft and recommend protective measures. If you’ve had trouble with tax fraud, they may suggest applying for an Identity Protection PIN (IP PIN) from the IRS.

If you're unsure what level of protection is appropriate, a conversation with your CPA can clarify your financial exposure and help you choose a plan that fits your lifestyle.

by Kate Supino

Summer is usually considered to be a time for fun and relaxation. For those who are lucky enough to get the summer months off, it can also be a time to add to job skills, credentials or even the household coffers. For that, a summer job can’t be beat. Whether it’s a casual part-time job for your child or a foray into a new field where you can test the waters for a possible career change, summer jobs are full of potential

Why Summer Jobs Matter

While summer employment is often seen as just a way to earn money during a break from school, it also teaches essential life skills. Time management, communication, customer service and problem-solving all tend to improve through real-world work experience. For high school and college students, it’s also a chance to build a resume, explore career interests, and begin forming professional networks.

From a financial standpoint, summer jobs provide an early opportunity to learn about budgeting, saving and taxes. These first lessons in personal finance can influence long-term habits, especially when reinforced with good guidance from parents or financial professionals.

Summer Job Ideas

There’s a wide range of summer work available, depending on location, age, skills and interests. Some of the most common categories include:

Retail and hospitality - Positions in grocery stores, coffee shops, restaurants, and hotels are often seasonal and offer flexible schedules.

Outdoor work - Lifeguards, camp counselors, landscaping assistants, and park employees are in demand when the weather warms up.

Internships - Paid internships provide industry-specific experience and are ideal for college students or recent graduates looking to gain experience in their field.

Gig and freelance work - Babysitting, pet sitting, tutoring, or freelance digital services (like writing or graphic design) offer flexible and often self-directed opportunities.

Small business help - Many local businesses hire summer workers for clerical tasks, inventory, delivery support, or customer service roles.

No matter the job, what matters most is leveraging the experience to develop useful skills and apply smart money management practices.

Tax Considerations for Summer Workers

Many people assume that summer jobs don’t trigger tax issues since the income is relatively low. However, taxes still apply in many cases. Your CPA can help with this.

For employees earning wages, employers are generally required to withhold federal (and sometimes state) income taxes, along with Social Security and Medicare (FICA) taxes. Even if earnings are below the IRS’s filing threshold, a tax return may be necessary to receive a refund of any overpaid taxes.

Some summer workers are considered independent contractors rather than employees—especially in the gig economy. This includes work like babysitting, pet care, lawn services, and freelance gigs. These workers don’t have taxes withheld from their pay, and they may be responsible for both income tax and self-employment tax (which includes both the employer and employee portions of Social Security and Medicare).

For young workers or their families, a CPA can offer valuable guidance on tax filing, withholding adjustments and record-keeping for gig income.

Using Earnings Wisely: Save, Spend, or Invest

Summer earnings often go toward short-term goals like spending money, travel or saving for college. But they can also offer a unique opportunity to start building long-term financial security.

One of the most effective strategies is to open a Roth IRA for a teen or young adult with earned income. Contributions are made with after-tax dollars, and the money grows tax-free. Roth IRAs are ideal for young workers in low tax brackets, since the tax benefit of deferring income is minimal—but the tax-free growth can be substantial over time.

Parents or grandparents can even gift money to match the student’s contribution, helping to build savings without reducing the child’s sense of ownership. The only requirement is that contributions cannot exceed the amount of earned income for the year.

Building a Resume and Skills

While financial rewards are a key motivation, summer jobs can also serve as a launching pad for future opportunities. Encouraging students to keep a record of their responsibilities, accomplishments and skills used and skills learned can help them build a strong resume for future employment or college applications.

Some jobs also offer the chance to develop technical skills or earn certifications, like CPR training for lifeguards or food handling certificates in hospitality. Extras like these not only build confidence but also demonstrate initiative and professionalism to future employers.

For college students, internships often lead to job offers or provide a competitive edge in the job market. Paid internships are especially valuable, offering both income and experience in a student’s chosen field. Even unpaid internships may be worthwhile if the experience is highly relevant and other financial resources are available.

Making the Most of the Experience

Summer jobs provide a concentrated window of time for learning, earning, and growing. Whether someone is earning their first paycheck or exploring their career interests, the key is to approach the experience with intention.

A few ways to maximize the opportunity:

Encourage saving part of every paycheck, no matter how small the amount.

Track income and expenses to build budgeting skills.

Ask questions on the job to learn more about the business or industry.

Explore whether employers offer mentorship, advancement opportunities, or educational support.

Keep records of all income for tax time—whether through pay stubs or a personal log.

Parents and guardians play a key role in supporting good financial habits. CPAs can assist by providing tools, answering questions, and offering financial check-ins that help turn temporary jobs into long-term advantages.

A summer job is more than just seasonal work—it’s a chance to develop practical skills, gain independence, and learn about managing money. From understanding tax responsibilities to opening a Roth IRA, summer earnings can become a stepping stone to stronger financial literacy and lifelong habits.

For individuals and families, working with a CPA can provide essential insight on how to handle taxes, set up savings plans, and make smart decisions with earned income. With the right guidance, a summer job becomes more than just a paycheck. It can be the start of a lifetime of success.

by Kate Supino

Life insurance is a critical component of financial planning, providing a safety net for loved ones in case of an unexpected loss. While purchasing a policy is an essential first step, it’s equally important to review your life insurance periodically. Life is dynamic and, as circumstances change, your coverage needs will naturally evolve.

Major Life Events

During a person’s lifetime, there will be major life events that warrant another look at life insurance policies. These include:

Marriage or Divorce

When a person marries, another person becomes emotionally or financially dependent; often both. With marriage also comes shared future goals that usually include financial goals such as paying off a mortgage, sending kids to college, paying for parents’ assisted care into old age and more. This added responsibility means you should increase life insurance coverage accordingly.

Divorce is another important life event where life insurance should be evaluated. You may want to change beneficiaries, decrease coverage amounts or even cash out policies if their primary goal was to benefit a person who is no longer a spouse.

Having a Child

A child is an added financial responsibility as well as a joy. Over their time in your care, a child will cost an estimated cost of about $17,000 per year for a middle class family. But this estimate doesn’t account for unusual circumstances, such as caring for a child with a medical or mental disability, substance abuse problems, or even such things as expensive interests that may require specialized training or equipment. If the main breadwinner in the home is suddenly unable to bring in finances, this will have a major impact on the quality of life, stability and future challenges of any children in the home. Every time a child is added to the household, whether it’s an adoption or natural birth, life insurance needs should be reassessed. 

Buying a Home

Buying a home means taking on the responsibility of paying a mortgage for years to come, in many cases. Even if the home is paid outright, there will be large expenses in the future, such as replacing the roof, repairing a foundation, replacing the HVAC and more. A substantial life insurance policy will help to ensure that your loved ones are able to keep and maintain the home that they live in, which increases their stability, safety and peace of mind. 

Career Changes

Just as major life events warrant scrutinizing your life insurance needs, so too, do changes in your career.

Income Changes

Are you making more or less than before? While a decrease in income doesn’t mean you should decrease your life insurance coverage, positive income changes certainly do. This is because now you may be upscaling your family’s quality of life, and you want to leave them in a similar position should anything happen to you. Even if you’re the sort who chooses to live on your old salary and invest the extra, an increase in life insurance helps to ensure that your family keeps those investment options open. A final note: Even if life insurance feels less affordable after a decrease in income, try to retain the policy, since premiums usually increase as you age, and signing on with a policy after your income goes back up will cost more. Also, a temporary reduction in income shouldn’t lead to a permanent change to your future financial plan, or why you bought life insurance to begin with.

Milestones in Financial Planning

Financial growth or setbacks can also affect your life insurance requirements, so pay attention to your policies during these milestones.

Debt Accumulation

If you’ve taken on significant debt, such as credit card debt, student loans or business loans, your life insurance should cover these liabilities, since your family may be saddled with them after your demise. This is certainly the case if credit cards are in both your name and your spouse’s name.

Investment Growth

As your investments grow and you build wealth, your life insurance needs may decrease. However, if you rely on life insurance as part of your estate planning strategy, it’s best not to alter your plan. Your CPA can work with you to help determine smart financial moves.

Aging and Health

As you advance in years, one or more of your beneficiaries may have passed on before you, in which case you should review your life insurance policy. Another possibility is that your beneficiary is financially sound in their own life—such as an independent adult child with their own family. However, if it’s important to you to pass on the financial gift of a life insurance policy payout, there’s no reason not to stick with your original plan.

Health Changes

A significant change in your health status might make it more challenging to secure new coverage, so reviewing your policy while you’re still healthy and insurable is essential. One good thing to know is that some policies may include options to convert term life insurance to whole life coverage if your health deteriorates.

Approaching Retirement

As you get closer to retiring, your financial situation is obviously going to change. Living on a fixed income means cutting back, and this is a smart time to review your life insurance policy to ensure it still aligns with your retirement budget and long-term estate planning needs. Many people find it helpful to confer with family members to determine what may be needed into retirement and after you pass on.

Other Triggers

Changes in personal circumstances aren’t the only times when you should review life insurance needs. There are also other triggers that bring about a need for such reviews. These include:

Policy Expiration

Do you have a term life policy? If so, there’s an expiration date, as well as premium increases the older you get. Use these deadlines as opportune times to take a second look at your policy. You may want to consider converting it to a whole life policy or make other changes.

Economic and Market Changes

Broader economic factors can also influence your life insurance needs.

Inflation

Over time, inflation reduces the purchasing power of your life insurance payout. If you’re already retired, you probably are already aware of how higher prices can gouge your savings. Periodic reviews of your life insurance policy work to ensure the payout you leave behind keeps reasonable pace with rising costs. This is particularly true if you happened to purchase your policy many years prior.

Interest Rates

Low-interest-rate environments can impact the performance of cash-value life insurance policies. Monitoring your policy’s performance helps you address any gaps in expected versus actual returns.

Life insurance isn’t a one-and-done purchase. Regular reviews ensure your policy evolves with your life circumstances, financial goals, and market conditions. By staying proactive, you can provide lasting security for your loved ones and achieve peace of mind knowing that your coverage meets your needs.

by Kate Supino

As a responsible head of the family, you’re likely always on the lookout for ways to secure your family’s financial security. Estate planning is the foundation of endeavors such as this. By putting into place instruments like wills, trusts and other plans, you have the power to help ensure the stability and financial resources of your loved ones a long time after you’re no longer able to manage these things yourself. 

One powerful tool that may not be on your radar is a family foundation. This type of instrument is used by many of the world’s wealthiest families, and can be a very effective estate planning tool. But the surprising part you may not be aware of is that you don’t have to be a multimillionaire in order to avail yourself of the possible benefits you can get from setting up a family foundation. 

What is a Family Foundation?

A family foundation is a private foundation that serves as both a philanthropic tool and an estate planning strategy. Funded by a single family, it allows individuals to support charitable causes while reducing estate taxes and preserving wealth for future generations. Assets donated to the foundation are tax-deductible, and the family retains control over how funds are distributed, ensuring their philanthropic goals are met. By involving multiple generations in its governance, a family foundation can also strengthen family bonds and values. It offers a structured way to leave a legacy while creating financial benefits for the family and supporting meaningful causes.

Benefits of Setting up a Family Foundation

Setting up a family foundation offers numerous benefits for individuals seeking to combine philanthropy with effective estate planning. It allows families to create a legacy, reduce tax burdens, and engage future generations in charitable giving.

Tax Savings - Donations to a family foundation are tax-deductible, reducing income and estate taxes.

Legacy Building - Families can support causes aligned with their values, leaving a lasting impact.

Generational Involvement - Foundations encourage younger generations to participate in philanthropic decision-making, plus it can bring older family members together in meaningful ways.

Control and Flexibility - Families maintain control over how funds are distributed. 

With these advantages, a family foundation serves as a powerful tool for giving back while protecting wealth.

Regulations For Family Foundations 

If you want to set up a family foundation, you should know that, although the funds are within the family’s control, there are regulations that need to be followed. Your CPA can assist in keeping any foundation you create in compliance. Family foundations are subject to regulations designed to ensure transparency and proper use of funds. These rules typically include filing annual tax returns, adhering to strict reporting requirements, and distributing a minimum percentage of the foundation’s assets to charitable causes each year. Furthermore, foundations must avoid conflicts of interest, ensuring all transactions benefit the foundation’s mission rather than personal interests. While specifics vary, most family foundations are required to follow guidelines on governance, investments and grant-making. Staying compliant with these regulations is crucial for maintaining tax-exempt status and ensuring the foundation operates ethically and effectively.

How to Set up a Family Foundation

Setting up a family foundation involves several steps:

• Determine which family members will run it

• Define your mission by clearly articulating your philanthropic and estate planning goals

• Choose a structure, such as a trust or nonprofit corporation

• Obtain an Employer Identification Number (EIN) from the IRS

• Apply for 501(c)(3) tax-exempt status

• Establish a formal board of directors

• Put administrative practices in place

• Develop grantmaking guidelines

• Fund your foundation

This is just a broad brushstroke of tasks to set up a family foundation. There are many, many details to be accomplished in addition to these. To help you, enlist the help of a qualified CPA. They will guide you through legal and financial complexities, ensure compliance with regulations and help you and your family members to navigate the complexities of tax laws and reporting requirements.

Responsibilities of Running a Family Foundation

Running a family foundation involves significant responsibilities, requiring careful management and compliance with regulations. Foundation leaders must establish a clear mission aligned with the family's philanthropic goals. They oversee the development of grantmaking strategies, ensuring funds are allocated to programs and organizations that reflect the foundation’s purpose.

Day-to-day operations include managing financial assets, maintaining records, and preparing annual reports to meet legal and tax obligations. Decision-making often involves engaging family members to foster collaboration while balancing diverse opinions. Foundation leaders must also monitor grant recipients to ensure funds are used appropriately, tracking the impact of contributions over time.

Another thing to take into consideration is that compliance with IRS regulations, such as adhering to payout requirements and avoiding conflicts of interest, is crucial. Failing to file proper paperwork, missing deadlines and mismanagement of funds can land family members in hot water. Finally, effective communication with stakeholders, including grantees and the community, further enhances the foundation's reputation and effectiveness, making its philanthropic efforts sustainable and impactful.

Should You Set up a Family Foundation?

In order for your potential family foundation to be successful in the long-term, you need to have one or several members of the family who are willing to shoulder the responsibilities. This will help to make sure that the financial aspects are run according to your wishes and the wishes of all the family members, as well as ensuring government compliance. 

From there, you would have to evaluate the possible benefits of a family foundation against the costs of operating it. Weighing these two carefully will help to determine if it’s worth implementing as an estate planning tool. Remember that the financial benefits aren’t the only benefits. Family foundations help to carry on your legacy far into the future.

If you’re looking for more and better ways to ensure the continuance of your legacy and the financial stability of your family for generations to come, you may want to consider setting up a family foundation. Just be sure that you have the ongoing commitment of family members, since there are considerable requirements, including time, effort and the taking on of legal responsibilities. Contact your CPA today to learn more.

by Kate Supino