For some family-owned businesses, the matter of succession is a non-issue. The future owners are already working for the company and the only question revolves around timing. But for others there is a quandary. Either family members express no desire to carry on the business or have different educational backgrounds or skill sets than you. But regardless of the circumstances, it remains critical to plan ahead to hand over the reins to someone.
A recent survey found that 39% of all family- owned businesses will change hands in the next several years either due to death or retirement. Yet it’s been our experience that less than half have done adequate
Despite the fact that well over 30 billion dollars has been diverted from the market, over the first 23 days of October did that really make the investors that moved their money feel any better about their portfolios? More importantly was it the right thing to do?
I keep hearing from clients that the stimulus package sounds great in concept, but what is in it for them? All of the media attention is focused on bailing out the banks and big business, and I would have to agree that the news is dwelling on rescuing Wall Street and the like. But that being said, the stimulus plan does offer individuals and small businesses more tax credits, reductions and incentives than any that I can remember in my lifetime.
Consider that in the package are tax credits for education, health care, housing and more. There is extended aid for the unemployed and generous concessions for retirees. The plan also includes job programs, debt
Many seniors have Powers of Attorney, but do you have the right one? This is a very important question because no one has the right to make financial decisions for you, unless you have legally appointed a person with the authority to act for you. The best way to give that legal authority is by executing a Comprehensive Durable Power of Attorney.
STATUTORY FORM
It is critical that your Power of Attorney is a NEW YORK STATUTORY FORM: DURABLE GENERAL POWER OF ATTORNEY. This means that the document must be followed by banks and financial institutions in New
The economy might be tough, but I believe the entrepreneurial spirit is tougher. Recently the news has paid an inordinate amount of attention to the plight of laid off workers who are desperately searching for new jobs. In previous periods of high unemployment, the banks were still relatively healthy and in a position to lend money, which fueled an increase in the number of small business start ups.
We understand how difficult it is to cope with the death of a loved one while trying to figure out probate and trust and estate administration. We can provide professional services to help ease your burden, both during the planning process, and when a loved one passes. You can relax knowing that the job is being done right
This week a very important update was announced regarding 529 college savings programs. The IRS effectively removed the longstanding limitation of making changes in investment strategies to once a year.
You know the drill. New Years is approaching and that means making your resolutions to improve on everything that didn’t go as planned. This year, however, we’ve all gotten a huge wake- up call and the need to regroup is far more urgent because our finances were so affected by the economic collapse. In addition, much of what we thought we knew about investing, saving and planning ahead has been redefined. Of course we still have to make sensible decisions, including reigning in expenses, but here are some ideas on how to approach the coming year to help you become more fiscally fit.
Life seems to just get more challenging for all of us. Who could have predicted the economic crisis that our country is facing today? I am sure that we will all pull together as Americans and get through this crisis but we are in for tough times.
With that in mind, it is important to take steps to ensure that each one of us
What exactly cause the bubble to burst on Wall Street is still unclear but, we will certainly overcome it. Watch this excellent synopsis from CBS news to give you a clear and concise insight into our current financial crisis both pre and post election.
Given the daunting political and economic climate, doesn’t it sometimes feel like we are spectators watching an intense football game where everything is on the line and the score keeps changing? We go from cheering (our candidate is up 5 points in the polls) to panicking (the stock market is down 900 points). We go from relief (gas prices are under $3.00 a gallon for the first time in a year) to shock (the quarterly statements arrived and we’d rather not look).
Capitulation sounds like one of those SAT words you can immediately forget after the test, but with the recent economic crisis, it’s a good time to review the meaning. In financial terms, capitulation is when frightened investors lose faith in the market after a period of losses and decide to jump ship en masse. In other words, unable to stomach any further losses, they collectively sell in a panic and look for safer havens.
While some would say its inflation, others would say its a recession, and others still, might think its a stock market crash that is the biggest threat to their retirement. The truth is that its neither taxes, interest rates nor volatility spikes. It’s instead living a good long life and then incurring unexpected un-reimbursed health care costs amounting to hundreds of thousands of dollars. This situation could by far be a much bigger threat to your own retirement that you could have ever imagined.
Many people are of the wrong impression that there must be some governmental program out there that will pay for some or a big part of these unreimbursed healthcare costs. The fact of the matter is that there are no governmental programs available to pay for these costs other than Medicaid. But to qualify one must be destitute and have virtually no assets in their name. It used to be much easier to qualify for Medicaid but several years ago they changed the eligibility requirements and made it more difficult for a person to qualify for benefits if he/she is only artificially impoverishing themselves.
A fixed annuity is an accumulation planning vehicle that allows an individual to accumulate money they’re not going to need for at least 5-7 years. One of the benefits of this type of vehicle is that it offers a return significantly larger than usually offered in a bank CD or money market fund. In addition it allows the money to accumulate on a tax deferred basis. In addition It is GUARANTEED by the Life Insurance company that issues the contract. Even in this day and age of Bailouts and failed financial institutions that GUARANTEE is extremely meaningful as not one investor has ever lost a nickel in a failed Life Insurance contract.
