HSA, The Best Retirement Plan You Are Probably Not Using


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

Want to Save $15,300 in Taxes?


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

The Ins and Outs of College Savings Plans


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

So, You Think You Might Want to Sell Your Business


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