Personal Finance 101 – Funding Your Buy-Sell Agreement

Part of any good business plan is an exit strategy if the unexpected happens.  A good Buy-Sell Agreement should anticipate certain unfortunate but foreseeable events, and make sure a fair and reasonable plan is in place. When a triggering event occurs, everyone should be fully comfortable and prepared to move forward with the plan. The most critical detail of the Buy-Sell Agreement to the company’s survival is how to pay the purchase price for a departing owner’s interest.  If the company or other owners do not have adequate assets, cash reserves, or credit available to fund the payment obligations, then they cannot fulfill their side of the agreement.  This isn’t good for anyone – the departing owner (or his estate and family), the company itself, or the remaining owners. Insurance. Since death and disability are two of the most basic triggering events in any Buy-Sell Agreement, life and disability insurance can be the most attractive methods for funding the payment ...

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Active Trader: Time to Curb Your Enthusiasm

But this is a dangerous time, experts say, because a trader’s inflated ego can get in the way of sound investing decisions. The thrill of buying a winning stock can keep them from selling that stock and locking in profits. “The human mentality is to want to have a winner,” says Todd Salamone, senior vice president of research for Schaeffer’s Investment Research. “It’s psychologically hard to admit you’re wrong.” Meanwhile volatility, after seemingly taking the summer off, has started to return to the stock market. The CBOE Volatility Index, known as the VIX and a commonly-used guage of the market’s volatility, was as low as 22 in mid-August, but popped up above 30 last week. ...

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Roller Coaster Week

I do think the one thing that should come out of this is knowing what you make and what you spend because saving is still one of truly key elements to building wealth. To do this as the CEO of your family finances, now is the time to get with a private CFO™ to understand your balance sheet, income statement, and your bottom line. I'm pretty sure they won't do that for you on CNBC! Visit OxygenFinancial Today ...

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