In This Issue:

• Tax Tips for Newlyweds
• Financial Planning: Sticking to a Budget
• Kemper CPA Group Values its Clients: West Financial Services
• Kemper Capital Management – Loose Change
  How Do You Measure Success?
  Adoption Aid
• Kemper Technology Consulting
  Summer Storm Safety

If you are planning a summer wedding, taxes are probably the last thing on your mind, but taking the time to consider the ramifications of this change now can help you avoid frustration when tax time rolls around.

There are several things you can do now to help avoid the headache next April.

• If you change your name, contact the Social Security Administration to report the change and request a new social security card. Click here to download a card replacement application.
• If your address changes, notify the IRS so your tax forms and IRS documents will go to the right place. You can file a change of address on IRS Form 8822.
• Your marital status on December 31 determines whether you are married for that year. Depending on your income levels and deductions, you could be hit with the marriage penalty—paying higher taxes as a couple than you would have if you filed separately. Talking to a tax professional now can help you determine if you need to adjust your withholding to avoid any surprises later.
• Because you may now have enough deductions (medical care, mortgage interest, contributions, casualty losses, etc.) to itemize on your tax return, think about filing Form 1040 instead of 1040A or 1040EZ.
• Consider creating a basic will as an important first step in creating an estate plan.
• If your parents' names are listed as beneficiaries on your insurance policies, IRAs, or 401(k)s, you might want to change them to include your new spouse.
• Think about changing your bank accounts to joint ownership.

Starting your financial life out on the right step is important as a new couple. The professionals at Kemper CPA Group LLP want to help you evaluate your tax situation now as you prepare for your future together. Contact us today!
 

Good financial planning begins with understanding your current financial situation and learning if you need to improve, or if you are on track for your long-term goals. Working out a family budget—and sticking to it—is one of the easiest ways to track your spending and see which areas you can trim in order to find more money to invest.

In addition to planning for the distant future, budgeting can also help you prepare for more immediate expenses. The new school year is just around the corner, and beginning to account for your finances now can help you make preparations for this seasonal expense—school supplies, clothes, textbook fees, tuition, etc. You can also begin to prepare for holiday spending and for next year's vacation so that these happy times don't turn into credit card bills that haunt you for months to come.

In order to help you track your personal expenses, and determine if you have any problem areas that should be addressed, Kemper CPA Group LLP has collected these budget spreadsheets. Information contained within the monthly spreadsheet is courtesy of Free-Financial-Advice.net, and the yearly budget spreadsheet is courtesy of the US Chamber of Commerce. These spreadsheets are in Microsoft Excel format and include a more detailed instruction sheet.

If, after completing and reviewing these spreadsheets, you have any questions or concerns about your current financial situation, the professionals at Kemper CPA Group LLP are ready to help! Contact us today!
 

How Do You Measure Success?

Choosing a mix of investments for your portfolio that you feel comfortable with is only the beginning. Asking the following questions can help you evaluate their performance.

Is your portfolio performing the way you thought it would? When you chose your investments, you probably thought about how much your portfolio should grow each year. Are your investments meeting those expectations?

Will you reach your goals with your portfolio's current performance? If you're not sure, you may want to look at what's holding you back. Consider how you've allocated your investments. Are you investing too conservatively to meet your objectives? Will the investments you currently have outpace inflation in the years ahead?

How do your investments compare to their benchmarks? Comparing your investments' performance with the performance of similar investments and with appropriate benchmark indexes will tell you whether they're outperforming, underperforming, or on target.

For additional information regarding managing your finances, click here to view the July/August 2004 issue of Kemper Capital Management's online newsletter "Loose Change"! If after reading the newsletter you have any questions, contact the friendly professionals at Kemper Capital Management today to schedule an appointment to discuss your investing needs!

Investment advisory services offered by KCPAG Financial Advisors LLC, a registered investment advisor. Securities offered through CapPro Brokerage Services, Inc., member NASD & SIPC. Insurance services offered through KCPAG Insurance Services LLC.
 
 
Adoption Aid

Parents who are adopting a child have some good financial news to add to their happiness: They may be eligible to claim a tax credit of up to $10,390 for expenses paid or incurred during the adoption process.

How It Works
The credit is phased out when adjusted gross income (AGI) exceeds $155,860 and is completely eliminated when AGI reaches $195,860 (for 2004). The credit may be used against regular tax and alternative minimum tax. And an unused credit can be carried over for up to five years.

What's Included
Adoption fees, court costs, attorney fees, and other reasonable and necessary expenses directly related to the legal adoption of an eligible child qualify for the credit. However, you can't claim a credit for any adoption expenses that your employer reimburses.

For more financial advice, click here to view the July/August 2004 issue of Kemper Capital Management's online newsletter "Loose Change"! If you have any questions about tax deductions, investing, or other financial matters, contact Kemper Capital Management today!

Investment advisory services offered by KCPAG Financial Advisors LLC, a registered investment advisor. Securities offered through CapPro Brokerage Services, Inc., member NASD & SIPC. Insurance services offered through KCPAG Insurance Services LLC.
 

Lightning storms plague the summer months, and the trouble with lightning is that you never know when or where it's going to strike. Protecting your PC from these surges of electricity is very important. According to the National Lightning Safety Institute, computer damage and data loss from lightning strikes cost the United States nearly $2 billion in annual economic loss.

Because lightning can cause permanent damage to equipment and data, it is extremely important to take steps to keep the odds in your favor.

• Make sure that you have installed a surge protector, not just a power strip, between the electrical socket and the computer's power cable. Surge protectors are more expensive, but they are worth the additional cost.
• Use a surge protector that protects your network from surges through network cables.
• Check the functionality of your protection devices at least once a year to ensure that they are working properly.
• Turn off the computer and disconnect the power cord during lightning storms.
• If it is possible, put the computer on its own power circuit.
• Turn off the computer if you lose power—when the power comes back on, the signal can be inconsistent, which can make things more difficult for your power supply.
• Unplug the telephone line from the modem jack or use a telephone line surge suppressor during electrical storms—it is possible for high voltages to zap your computer through the phone line.
• If you are running a business with a network, purchase a battery-operated power supply to keep servers running during power outages.

For more information on keeping your data and equipment safe during electrical storms, contact Kemper Technology Consulting. We can help you take steps to ensure that your PC or network is as protected from the weather as possible. Call us today!