Who do you trust now? Who can you trust?
I got that question from a guy on LinkedIn in response to an article of mine about the fiduciary rule and why folks should care.
It’s a great question… Read More
What is a HSA, otherwise known as a health savings account?
My colleague Holly Thomas CFP® wrote about HSAs a while back, here is a link to her post. Reading her post reminded me to write a post myself for my followers. This is awesome stuff, so pay attention.
A HSA, or health savings account, is a tax advantaged account used in conjunction with a high-deductible health plan, HDHP. As usual, the details are numerous and tiring, but worth it… Read More
I have a new client who engaged me on a hourly basis. He wanted some help to determine the best way to handle a forthcoming distribution from a profit sharing plan and a low 6-figure gain on the sale of his personal residence. He was concerned about taxes and IRAs.
He is 52 years old, divorced with grown kids, moving to a different state, starting a new job and is excited by his prospects.
This current year, he will earn somewhere in the low $30,000s. Next year, he will earn much more, in the mid-to-upper $50,000s.
He wanted to take his $30,000+/- profit sharing distribution as a taxable event and then contribute it to a Roth IRA.
He didn’t have any real plan for the $120,000+/- expected proceed from the sale of his home.
Want to know what I suggested? Read More
I have a friend with a new son, 16 weeks old. He asked me about 529 accounts, better known as college savings plans.
My friend has it spot on. Starting early with these plans is the way to go, allowing the power of compound interest to work its magic. Then, there is a wonderful double-dip at the end, those earnings from compound returns incur no state or federal income tax liability. It’s joyous…
College savings plans were originally established the by the states, starting off in Michigan. Congress eventually got on board, and through a series of legislative acts in the 1990s to early 2000s, we can now all enjoy the benefits of these plans for our kids, our grandkids, our nephews and nieces.
Here are the basics: Read More
Want to sell your business?
I’ve heard this refrain before. From business owners with revenues in 6-figures to business owners with revenues in 9-figures. Asked if they want to sell their business, often they reply yes, why sure. In ten or so years.
Once ten or so years comes and goes, they find they are not ready because they haven’t done the planning necessary to maximize value for themselves or potential purchasers. They only have the dream of being out of it.
Well, like tax planning, selling a business requires a lot planning. Planning done so over several previous years. Necessary are thought and purpose.
Businesses usually sell for some kind of multiple of either revenue or net profit. This multiple varies widely, depending upon the type of business, the market cycle, the type and value of assets, tax implications and objectives, financing terms, and on and on.
Three stories about selling a business: Read More
I love investment real estate. You?
Want to invest in real estate? Make some money in real estate?
Many people are looking for ways to boost their income. Some figure that rental income from ownership in real estate will fit that bill.
But how? Where will the money to do so come from?
“What about my IRA?”
So glad you asked…. Read More
So, how much money did you earn last year?
It’s okay. You can tell me. I’m safe.
Just you and me here. Won’t go any farther.
Don’t worry about these people listening in, or the multitude of readers anxiously standing by, all awaiting the titillating figure you provide… Read More
Let’s face it, tax planning for this year should have been started this same time last year. And you better be thinking about tax planning for next year now. We are getting close to year end, only about 3 weeks to go. Have you done all you should, and could, tax planning wise to prepare for your income tax liability?
Here are 3 reminders… Read More