Idea: Roth IRAs as an Estate Planning Tool
Roth IRAs are a great tax saving tool. The reason: Investments held in a Roth IRA are allowed to build up federal-income-tax-free. Later on, you can take federal-income-tax-free withdrawals. Obviously, a zero tax rate is the best rate going. In addition to being great tax saving tools for retirement, Roth IRAs also provide tremendous estate…
Records Retention Guidelines to Remember During Spring Cleaning
Warm weather and rainy days bring the urge to purge. But before you clean your file cabinets or declutter your computer files, it’s important to review these guidelines. Federal Tax Records Most tax advisors recommend that you retain copies of your finished tax returns indefinitely to prove that you actually filed. Even if you don’t…
The Market Approach: A Touchstone in Valuation
The market approach, whereby appraisers use comparable “guideline companies” to help them estimate the value of a private business, has become a long-standing valuation touchstone. Two primary valuation methods are categorized under the market approach: Guideline public company method. Here, appraisers identify companies with stock (or partnership interests) that are actively traded in the public…
Four Steps to Protect a Special-Needs Child
Raising a child is expensive, and can cost a quarter of a million dollars, not including college. For a child with special needs, that cost can more than double.1 If you’re the parent of a special-needs child, it’s vital to ensure your child will continue to be provided for after you’re gone. It can be…
Four Really Good Reasons to Invest
Forty-eight percent of Americans do not own any stocks, or stock-related investments, such as mutual funds, according to a Gallup poll.1 Individuals may cite different reasons for not investing, but with important long-term financial goals, such as retirement, in the balance, the reasons may not be good enough. Why Invest? To Make Money on Your…
Tax Rules When Selling Your Home
How the gains from the sale of a primary residence are taxed has changed in recent years. If you have recently sold your home, or are considering doing so, you may want to be aware of the current rules. Home Sale If you owned and lived in your home for two of the last five…
How to Prepare for the Probable Demise of LIBOR
The London Interbank Offered Rate (LIBOR) has served as the primary reference rate for various types of adjustable-rate financial products for decades. However, its role as the finance industry’s reference rate may soon diminish in favor of a U.S.-based alternative. What is LIBOR, and why might it disappear? The Basics Unlike fixed interest rates, adjustable…
Stay on Top of Your Business Credit Rating
These days, anyone looking to form a new business relationship — especially one that involves credit — is wise to check out the risk involved first. Various parties might be checking out your company’s credit rating to determine whether they want to do business with you. That’s why, just as with your personal credit report,…
It’s Not Too Late for Some Business Owners to Lower Their 2018 Taxes
Most businesses will owe less tax for the 2018 tax year than they would have under prior law, thanks to changes brought by the Tax Cuts and Jobs Act (TCJA). But have you done everything possible to lower your business tax bill for last year? Even though 2018 is in your review mirror, there are…
5 Last-Minute Ideas to Lower Your 2018 Taxes
It’s almost Tax Day! But don’t despair; there still may be time to make some moves that will save taxes for your 2018 tax year. Here are five tax-saving ideas to consider. 1. Choose to Deduct State and Local Sales Taxes If you live in a jurisdiction with low or no personal income tax or…