Category: Financial Planning

  Some people are worried that they will wind up in a nursing home with their life savings wiped out. But that doesn’t have to be the case. You can buy some peace of mind with long-term care insurance. But caveat emptor: These policies can be expensive, complicated and they don’t always cover all the costs involved. First, the good news: If you purchase long-term care insurance, you may be able to get a limited tax deduction. Plus, benefits received… Read more ›

  For charitable donors, the Tax Cuts and Jobs Act (TCJA) provided some tax breaks and took away others. Here’s what charity-minded individuals need to know. Increased Charitable Deduction Limit Under prior law, deductions for cash contributions to public charities and certain private foundations were limited to 50% of your adjusted gross income (AGI). The TCJA, which passed in December of 2017, increased the deductible limit to 60% of AGI for the 2018-2025 tax years. Deductions that are disallowed by… Read more ›

If your company has a qualified retirement plan or you have set one up in self-employment — such as a 401(k), profit-sharing, or Keogh plan — the participants might be allowed to borrow from their accounts. (This option is not available for traditional IRAs, Roth IRAs, SEPs, or SIMPLE-IRAs.) In the right circumstances, taking out a plan loan can be a smart financial move because a participant gains access (within limits) to his or her retirement account money without having… Read more ›

  Beneficiary designations determine who will receive your assets, such as retirement plans, life insurance policies and, potentially, bank and brokerage accounts, when you die. Even if you’ve made an estate plan that includes a will or trust, you need to regularly update beneficiary designations because these assets typically don’t go through the probate process. Plan to review designations once a year or whenever you experience a major life change, such as a birth, death, marriage or divorce. Recognize Serious… Read more ›

When people are young, saving for retirement is often the last thing on their minds. But starting early and saving every month can translate into a huge difference in your net worth at retirement — all through the power of compounding. It’s a simple concept: Compounding allows you to earn profit on your profit, or interest on your interest. Over an extended period of time, you can earn far more than you thought possible, particularly if the annual rate of… Read more ›

How does the Tax Cuts and Jobs Act (TCJA) affect divorce settlements? Changes in the new law may require divorcing individuals — especially those who own businesses and other investments — to take a different approach to splitting assets and setting maintenance payments than under prior law. To illustrate, consider Pat and Chris, a hypothetical married couple who decided to file for divorce on Valentine’s Day 2019. Here’s an overview of several key issues they face. Business Tax Issues Pat… Read more ›

Many dealerships generate detailed financial information and send it to their banks and manufacturers each month. This typically includes an income statement and a balance sheet. The balance sheet can be a useful tool for dealerships that know how to uncover the valuable nuggets of data that lie within these reports. Savvy dealerships use the information to improve their financial performance. Think of it this way: The balance sheet gives you a snapshot of your dealership’s financial position at a… Read more ›

Creating a formal debt management plan, rather than borrowing haphazardly, can save your firm thousands or even tens of thousands of dollars in interest. Following certain best practices and using a structured approach to your company’s debt plan is part of an effective construction finance, accounting and tax strategy. First, create a table that lists all current debt, including working capital lines of credit, loans of any kind, any interest bearing notes or other financial obligations. Don’t include Accounts Payable…. Read more ›

Estate planners often tout the virtues of owning property jointly — and with good reason. Joint ownership generally offers several advantages for surviving family members. But this shouldn’t be viewed as a panacea for every estate planning concern. You must also be aware of all the implications. Title Wording Matters – Joint Ownership in Estate Planning Joint ownership requires interests in property by more than one party. The type of joint ownership depends on the wording of the title to… Read more ›

A PDF copy of this article about teaching financial responsibilities to children can be found by clicking here.  Giving to our children comes naturally. As with any other family practice, our spending habits serve as a role model for our children. The conflict here generally comes with wanting to demonstrate our love through spending and at the same time teach appreciation, respect and responsibility in financial matters. The teaching and understanding of financial responsibilities starts at home. How comfortable is… Read more ›