Showing posts from October, 2018

Comparing Health Insurance Plans

Perhaps you're starting a new job or trying to integrate employee benefits with your new spouse. Or maybe you're shopping for individual health insurance coverage. One of the challenges when comparing health plans is that many different types of plans are available, including indemnity plans, health maintenance organizations (HMOs), preferred provider organizations (PPOs), and point of service (POS) plans. If you are offered the chance to choose among different types of plans, you'll first have to decide which type best suits your needs. Then, you can begin comparing and evaluating policies.
Compare premiums The premium may be the first thing you look at when trying to choose a health plan. Individual coverage can be expensive because the insurer takes on more risk by covering just one person. However, if an individual policy is your only option, you should compare the premiums charged by several different insurers. Even though companies all use certain information to pri…

Tax Planning for the Self-Employed

Self-employment is the opportunity to be your own boss, to come and go as you please, and oh yes, to establish a lifelong bond with your accountant. If you're self-employed, you'll need to pay your own FICA taxes and take charge of your own retirement plan, among other things. Here are some planning tips.
Understand self-employment tax and how it's calculated As a starting point, make sure that you understand (and comply with) your federal tax responsibilities. The federal government uses self-employment tax to fund Social Security and Medicare benefits. You must pay this tax if you have more than a minimal amount of self-employment income. If you file a Schedule C as a sole proprietor, independent contractor, or statutory employee, the net profit listed on your Schedule C (or Schedule C-EZ) is self-employment income and must be included on Schedule SE, which is filed with your federal Form 1040. Schedule SE is used both to calculate self-employment tax and to report the a…

Funding a Business

You've written your business plan, you're excited about your business idea, and now it's time to get started. One problem: You don't have the financing to fully realize your dream. What are your options? Aside from using your own funds and borrowing from friends and family, there are numerous routes that you can take, and each has its advantages and disadvantages. Here are some of the major options available for funding your small business, and some of the pitfalls to avoid.
Bank loans Getting a loan from a local bank is the first option that most people consider when funding a new business. But it's often difficult to obtain a bank loan on the basis of a business plan alone. Banks can't use your idea as collateral. If you are thinking of getting a bank loan, you will likely need to secure the loan through other means, such as putting up your home as collateral. A bank loan may be more feasible, though, if you are purchasing an ongoing business outright. In th…

Record Keeping for Business Owners

Keeping good business records will not only help you stay in business but may also help you increase profits. Your business records let you analyze where your business is and where it's going. They point out potential trouble spots and serve as a guide to where you want your business to be.
Your ideal office manager: criteria for record-keeping systems Like a valued office manager, your record-keeping system should have good work habits. It should be easy to use. If it's too complicated, it might be neglected, defeating its purpose. It should reflect information accurately, completely, and consistently throughout all of its applications, and it should do so in a timely fashion; you don't want to base important business decisions on partial or outdated information. Finally, it should present results in an easily understandable manner. If you can't comprehend the data that your record-keeping system provides, you might ignore their implications. Some commercial record-k…

Retirement Plans for Small Business

As a business owner, you should carefully consider the advantages of establishing an employer-sponsored retirement plan. Generally, you're allowed a deduction for contributions you make to an employer-sponsored retirement plan. In return, however, you're required to include certain employees in the plan, and to give a portion of the contributions you make to those participating employees. Nevertheless, a retirement plan can provide you with a tax-advantaged method to save funds for your own retirement, while providing your employees with a powerful and appreciated benefit.
Types of plans There are several types of retirement plans to choose from, and each type of plan has advantages and disadvantages. This discussion covers the most popular plans. You should also know that the law may permit you to have more than one retirement plan, and with sophisticated planning, a combination of plans might best suit your business's needs. Profit-sharing plans Profit-sharing plans are…

Benefit Plans for Small Businesses

If you own a small business, you may be finding it increasingly necessary to implement a benefit program to attract and retain employees. For small businesses, benefit plans generally consist of some of the major insurance benefits, discussed here, as well as employer-sponsored retirement plans.
Group health insurance Health insurance is by far the most common benefit offered by employers, and the one most requested by employees. However, with the passage of the Affordable Care Act in 2010, offering a health insurance plan has taken on even more importance for small businesses. That's because employers with 50 or more full-time employees are subject to financial penalties unless they offer "minimum" and "affordable" coverage to at least 95% of their full-time employees. Minimum means that the company's share of total plan costs must equal at least 60%. Affordable means that an employee's share of the premium must be less than 9.69% of his/her household…

🤫 Psst... Do you know about the silent thieves!? ⠀⠀⠀⠀

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It’s more important than ever to make smart investment decisions and understand the forces that affect investment performance. ⠀⠀⠀⠀⠀⠀⠀⠀
You may ask yourself: “Why should I consider investment instead of just depositing my money in the bank” ⠀⠀⠀⠀⠀⠀⠀⠀⠀
The answer: Savings account are particularly vulnerable to the “silent thieves” that impact your ability to save for your long-term financial security. ⠀⠀⠀⠀⠀⠀⠀
Please welcome thieve numero uno: INFLATION. A gradual increase in the cost of goods and services can erode your purchasing power over time. Today’s dollars simply won’t buy the same goods and services in the future. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
Thieve numero dos: TAXES No one likes to pay taxes, specially when you work so hard for your money. Taxes basically reduce the rate of return of your investment. ⠀⠀⠀⠀⠀⠀⠀⠀⠀

Consider Dollar-Cost Averaging, which helps boosting your purchasing power. Each month or period, you contribute a specific but equal amount to your investment program to p…