Posts Tagged ‘business’
Thursday, May 6th, 2010
The tax cuts instituted under President Bush are going to expire at the end of this year. Maybe you believe those in Washington will extend the current tax law, but that would take an act of Congress. If they’re not extended, how serious will this be to the average person? How will this tax increase of $2.4 trillion affect the average tax payer?
This lack of repeal will increase taxes for 17 million seniors an average of $2,034 per year according to the Heritage Foundation, a Washington D.C. non-profit think tank. That is approximately $170 per month! Many seniors will find themselves dipping into savings to pay the taxes, if they have savings at all. (more…)
Tags: business, debt, financial, income, money, retirement, save, tax
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Wednesday, March 24th, 2010
In the nineties I was involved with a number of companies that brought Russian technology to the United States to develop businesses. At one point I asked one of the Russian gentlemen what he thought of our country. He said he was particularly taken by our privileged class. When I asked him to clarify the statement, he said, “You know, your teenagers.” He went on to explain how they drive the cars, buy the clothes and the electronic equipment, and they do it all at little to no cost to themselves. However, they are not the only group that has favor in this nation. There are other groups with favor based on age, health, income, net worth, and occupation.
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Tags: business, debt, family, financial, health, healthcare, income, inflation, medical, MEDICARE, money, retirement, save, tax
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Friday, December 11th, 2009
We live in such a complex world today. Each day brings more legislation to add to the complexity. How does the average person cope? Having counseled multitudes of people over the years, I find it fascinating that so much money is wasted by even the brightest people. We live under the belief that an accountant, a financial planner, a business executive, a banker, an insurance advisor, a lawyer, a physician, a mortgage broker, and a financial aid officer will provide our needed knowledge. I have counseled all of these types of advisors and found significant money they had thrown away because of their lack of knowledge. Are we all bright enough or have we as a people entered into such a specialized world that no one is taking time to address the bigger picture? There is money to be saved for everyone.
Proverbs 19:2 says, “It is not good to have zeal before knowledge.” We live in a society that has zeal and limited knowledge so we miss out on the hidden manna that is available to everyone. (more…)
Tags: appliances, business, debt, energy, financial, food, house, income, money, save, tax, utility, water
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Friday, October 16th, 2009
Tax Strategies to Consider Before 2010
If the recession has touched your life financially, you might want to do some tax planning to either postpone or accelerate your tax deductions and/or income. For those anticipating more income this year than next, it may be prudent to accelerate deductions and postpone income. For those anticipating less income this year than next, consider postponing deductions and accelerating income. Here are some ways to do that.
One example might be to do a conversion of a Traditional IRA to a Roth IRA. This will result in more income in the year completed, but will reduce taxes in future years, particularly after the Roth has been in place five years. It will be necessary to look at how the additional income will affect your taxes this year before you do complete the process. (more…)
Tags: business, car, employment, family, financial, income, money, tax
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Friday, August 28th, 2009
In the year 2011 when the first baby boomer reaches 65 years of age there will be a significant tax increase without an act of Congress. This will happen when the tax cuts put in place under President Bush expire. What I have observed since the Bush tax cuts took effect was an increase in taxes at the state and local level as federal funds were cut back. When the tax increase takes place we will see taxes, at least in Ohio, at an unprecedented level.
What will this mean to the average family earning $50,000 per year? Using standard deductions a family earning $50,000 will pay an extra $200 per month in federal taxes. If this was the only tax to be concerned with it might be possible for a family to survive. But it’s not. (more…)
Tags: business, employment, energy, fuel, gas, income, inflation, tax
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Friday, June 26th, 2009
HELPING OTHERS
The complexity of good stewardship for today’s family has gone way beyond the average person’s comprehension and understanding. As an independent financial advisor for over forty years, I have found it increasingly difficult to stay abreast of the constant changes in government programs, tax law, health care, debt management, portfolio analysis, technology, food cost reduction, consumer products, automobile maintenance, estate planning, retirement planning, college cost reduction, home financing, extended health care (nursing homes, assisted living, etc.), career management, employment benefits, and personal budget management. Living expense reduction and asset management is my life’s work, but few financial planners specialize in both of these areas. If I have trouble keeping up with all the changes, do you think most people in our society have missed taking full advantage of their resources?
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Tags: business, debt, financial, health, income, money, save, tax
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Friday, June 12th, 2009
Health Care for the Future
Current health care costs are estimated to be, on average, more than $8,000 for every man, woman, and child in the United States. I think we can all agree that there is not enough money available to pay for that. At the center of the problem is the need for law changes limiting excessive lawsuit settlements related to health care that cause the liability expenses for physicians and hospitals to soar. In addition, the vast majority of physician offices are run inefficiently. For the most part they are “mom and pop” organizations. A uniform standard for reporting and for claims processing would go a long way in reducing costs.
I recently met with a physician who does research on longevity and asked him what the most essential steps are to extend life. His answer surprised me. Meditation (prayer) was number one, followed by stretching, aerobic and anaerobic exercise, and finally, nutrition. As individuals we need to take control of our own health. Most of us know how to be healthy, but we often lack the discipline to follow through to make it happen. (more…)
Tags: business, debt, health, income, medical, money, tax
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Friday, May 29th, 2009
Maximizing Compensation
Having been engaged in financial planning for over forty years I am fascinated by the lack of care taken by employees, business owners, ministry leaders and their advisers in the structure of compensation. Too often significant dollars are spent needlessly because of a lack of understanding of some of the fundamental tax laws. Structuring compensation properly can benefit the owner, the business or ministry, and the employees, saving thousands of dollars.
I always begin this process by reviewing the personal budget of the owner or ministry leader. From there we identify future goals of the decision maker so that we can look at what new employee benefits we may want to introduce in the future. Next, a review of the business budget is done to identify tax liability levels for the company and how money is being spent. We begin to methodically look at reducing any items in the business budget that may decrease operating expenses. Businesses can be structured to pay healthcare costs, dental, long term care insurance, eyeglass care, childcare, transportation, parking, adoption, life insurance, disability insurance, educational reimbursement, prescriptions, and moving costs on a pre-tax basis. Additional deductions can be realized with retirement plans and, in some cases, utilities and housing allowances. (more…)
Tags: business, financial, income, money, save, tax
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Friday, May 15th, 2009
Tax Stimulus Pros……and Cons
The recent economic stimulus bill has some advantages for certain taxpayers. The following list represents some of the benefits:
1. The first $2,400 of unemployment compensation will not be taxed for those who have lost employment between September 1, 2008 and January 1, 2010.
2. Those paying for health insurance through COBRA will only have to pay 35% of the cost. The balance of 65% will be paid by the employer, but reimbursed by the government. This is available until January 1, 2010.
3. The alternative minimum tax exemption allows for couples earning up to $70,950 and single up to $46,700 to avoid paying the tax.
4. Anyone who has not owned a home for the past three years can qualify for the $8,000 tax credit if the home is purchased by December 1, 2009, as long as your income does not exceed $75,000 for an individual or $150,000 for a couple.
5. There is a temporary expansion of the Hope Credit for the first two years of post secondary education expenses. The first $2,000 of expenses receives 100% credit while the next $2,000 receives 25% credit up to $500. This credit phases out for incomes of $160,000 for married couples and $80,000 for single individuals.
6. Those with funds in the educational 529 plans can now use the money for computers and computer technology. (more…)
Tags: business, employment, energy, income, money, save, tax
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Thursday, May 7th, 2009
EVERYONE NEEDS A PLAN B
The short term trend in the market has been upward for equities and although we may see some rocky behavior, the direction appears to be toward recovery. Our concern, in light of recent behavior in Washington D.C., continues to be toward a highly inflationary season for the long-term. Warren Buffet recently talked about how inflation taxes those on fixed income by stealing purchasing power. We fear this sentiment for everyone as new taxes devalue our currency and erode our purchasing power. The result of these new taxes for US stocks will be repressive. In turn, global stocks will likely rise more aggressively than US stocks. (more…)
Tags: business, employment, income, inflation, network, tax
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