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When Should You Replace Your Old Car For A New One?

When it comes to making smart money moves, our family has never been a big fan of buying a new car.   In fact, the last new car that we bought was back in 1993 when we really did the math on how much smarter it is to buy a used car that is somewhere between two to four years old versus getting a new one.   While getting a new car should be a well thought out planned purchase, it often falls into the camp of a spur of the moment purchase depending on when you get in the mood.    In a sound financial plan, you should begin to save for the (new) used car purchase the moment that you pay off the old purchase.  If you are like me and pay for your cars in cash, you should begin to immediately build a side fund so you can pay for that next automobile purchase in cash as well.    So the ...

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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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