Summit Financial Solutions Going Beyond the Numbers Q&A with Joe Parker of Summit Financial Solutions By Cyndi Braun Located in Towne Lake, Summit Financial Solutions provides personalized financial services for professionals, working families, individuals and small businesses. Through a team of tax and financial professionals, the company is committed to going beyond the numbers by tailoring financial plans to each clients specific needs. Services include tax preparation and planning, financial planning, small business consulting and payroll services. Recently, Woodstock Family Life met with Joseph Parker, president/executive tax director of Summit Financial Solutions. Parker has more than fifteen years of experience in business development and tax management. His expertise is consulting with small businesses. Q: Is now a good time to meet with my accountant?A: Of course, but it would have been better to have met with your accountant earlier in the year. Hopefully, you have had a plan in place all year long. The most expensive thing in life is income tax, yet most of us do not plan nearly enough to be sure we are paying the least amount as legally possible. We spend a large percentage of our income on tax, and its simple to plan for, but you have to plan. You cannot wait until December, or February or April to plan. That will not work in your favor. Q: What kind of financial planning is important?A: I have always wished clients would have come in before they began their career or began making substantial money. For example, if you are planning to sell a business or start a business, and you tell me after the fact, it may be too late. There are plenty of strategies to minimize tax liabilities, perhaps accept capital gain in a different way or some other like-kind exchange, but when people dont plan, they can be left paying taxes they should not have had to pay. Q: Im just an average person. Do I really need an accountant?A: A lot of people think they are average, or that they do not make enough money to have an accountant, but everyone can benefit from financial/tax planning. Many people are not disciplined enough to save money and plan for retirement. People who think they do not make enough money to need an accountant are usually the ones who most need an accountant. Q: Cant I do some research and set up my own budget?A: Financial advice you find on the internet is not always the best advice for your particular situation or personality. Its like going to a foot doctor when you need a heart doctor. The reality is we all treat and feel differently about money. The plan for you is going to be different than the plan for me, which is going to be different for the next person. I look at the situation and the fiscal personality of the client, then I find the right solution for his or her individual needs. Q: Whats a common mistake people make?A: When people think about finances, they think about income statements. They look at their paycheck, look at their expenses and try to figure out what they can and cannot afford. As a financial person, a balance sheet is much more important. It gives a picture of your assets versus your liabilities. This determines your net worth. You cant retire thinking about your income statement. I help people understand their balance sheet and build their net worth. Q: How do you help with financial planning?A: I have a three-meeting process where we talk about your individual situation; you do homework, and then I tell you what you need to focus on. After that, its maintenance.I believe we all live in our own snow globe. When all these emotions about financial things get going, thats the snow, and you cant see your hand in front of your face. But everyone on the outside of that snow globe can see your situation clearly. Its because the emotions arent there. With the ability to leave emotion out, I can point you in the direction that you need to go without letting you run into the blizzard. Now, the psychology part of that is I can tell you the best thing to do, but if it doesnt fit your priorities, its not the right option for you. Q: My kids are in high school, and I havent saved for college. Is there anything I can do? A: Direct your kids to cost-effective ways to pay for college. Do not encourage them to attend an out-of-state school where they have to pay higher tuition and acquire school debt. Suggest for them to go to a junior college for two years, and then transfer to a university. Or, suggest they go into the military first. I believe the military not only opens doors but also opens minds to what they may want to do in life. Four years, exposure to different careers, and likely some travel, can really help a young person make better long-term decisions for themselves. Q: Is now a good time to refinance my house?A: Probably not. A lot of people refinance their house to save maybe $200 a month. Never mind that they went from 21 years of mortgage payments to 30 years. Never mind they paid $8,000 in closing costs and theyre saving $200 a month. In the end, yes, they are saving $200 a month. They fixed their income statement, but in doing so, they shot themselves in the foot. If they had just kept that 21-year loan and kept paying on it, their balance sheet would have continued to look better and better. And they would have started to build true net worth. My opinion is its never going to be worth refinancing unless you are able to have little-to-no closing costs, drop your rate by at least one point and have a term that is equal to or less than you had before. Q: What makes Summit Financial Solutions unique?A: If you look around, you can find a tax preparer who will fill out your tax forms properly. What makes us different is we go beyond the numbers. We dont just help somebody with their taxes, business consulting or payroll processing. We take the time to get to know clients then advise them on ways to save money. We look for every opportunity that will benefit our clients and help them pay the least amount of tax as legally possible. Summit Financial Solutions1816 Eagle Drive, Building 100, Suite AWoodstock, GA 30189770-928-8100SFSGA.com/
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