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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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Reminiscing About The TV Dinner

With all of these reality TV shows pretty much filling up network and cable stations alike, I was wondering if they would ever bring back really good cheesy TV that I saw when I was a kid like The Love Boat and Fantasy Island.   I can remember how much I looked forward to the shows coming on TV every week as well as what was going to happen in this week’s installment of Dynasty and Dallas. All of this TV thinking got me to think about how much I don’t like the microwavable meals you can buy at the store today.   They all come in some cardboard like box and tray, and often they just don’t come out right after you microwave it up for about 3 to 5 minutes.    They look good on the package, but just don’t pack the punch when you eat them. I know what we need.   We need to bring back the good old TV ...

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Is it smart to get tax refund?

Around tax time, we often hear the question, “Is it smart to get a tax refund?”  The answer really falls into the ‘it depends’ category. In general, I am not a big fan of getting refunds.  Anytime in today’s world that you give the Government an interest free loan of your money for a year is probably not a good idea.  When you get a refund, you withheld too much money out of your paycheck over the course of the year.  When your actual tax calculation is done at year end, you will receive the excess withholding back in the form of a refund.   This means that you should really sit with your accountant, CPA, or financial advisor and adjust that withholding number for the current tax year.   If you are going to put more money back into your paycheck, make sure you have those dollars systematically saved into some type of savings or investment vehicle so you don’t spend ...

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