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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Problem – or a PROBLEM!

As I sit this weekend and read more about the oil spill in the Gulf, it becomes more and more apparent to me they really don’t have a solution other than drilling a relief well.  All the other pomp and circumstance they are doing right now is for our benefit so at least we will feel like something is getting done.  With advances in today’s technology, how could we get to this point?  Surely there was a contingency plan, right? Most of us would be just as guilty for lack of preparation in our personal lives.  Who has time to stop and assess?  Unfortunately however, what starts out as a small problem can quickly turn to a PROBLEM!  All of us have heard a story from a neighbor family member or friend, someone loses their job, they have medical issues, bad luck, whatever! When you are done reading this take 5 minutes and ask yourself the following questions: When was ...

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5 Financial Questions To Ask Yourself Right Now

With a roller coaster economy, high job unemployment, and increasing federal debt, this is the time to take stock and ask yourself some important financial questions to make sure you keep your financial house in order.  Here are 5 important questions to ask yourself now? Do I have an exit strategy with my investments? If the stock market has another free fall or your company stock takes a dive, how will you put some sort of cushion to secure those assets which have grown over the past year?  You should be asking yourself questions such as how far your money may go down before you exit the stock market, or how much it needs to make before you might take some profit off the table.  Learn from the ups and downs you saw in the early 2000’s and in 2007/2008. Do I have enough of a cash reserve? With job market uncertainty, you want to make sure you beef up ...

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