4 Lies Investors Will Tell Themselves Again

Do any of these stories ring true when you talk about how your portfolio is doing?   Here are four tall tales that I keep hearing year over year when people first come into our offices.   You are not alone, no one wants to admit that things haven’t gone as well as they expected.  Or perhaps they just don’t know at all?  Which story have you told yourself in the past? “I Have Killed It With My Stock Picks” I have never heard somebody come to a party ready to talk about their mutual fund or life insurance policy.  But stock picks?  Oh yes, this is a party favorite.   People LOVE to brag about the stock they bought that tripled or quadrupled in value whether it was a technology stock or some penny stock you have never heard of before in your life.   What they won’t tell you about is all of their losers because they don’t remember them.   How many ...

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How Can A Business Owner Save Money?

Through the creation of a captive insurance company, businesses can cut their taxes and increase the value of their estate. A business creates a captive insurance company to insure its risk; the captive can issue property and casualty insurance. It can also collect and invest premiums, as well as pay claims. To be sure, the business can also use the captive for pretax wealth accumulation, to protect assets, for efficient estate planning and to retain key employees. The business determines the policy terms, whether to write new or renewable policies and the types of insurance coverage to write. The strategy works best for companies that generate at least $1 million in annual net income, making it viable for physician groups, associations, franchisees and other businesses. For instance, Stan and Joan Smart, 60 and 55, respectively, own ABC manufacturing company. They seek better risk management and estate planning. After meeting with their financial adviser, Stan and Joan decide to retain an ...

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