- Who Actually Has to Pay the Alternative Minimum Tax (AMT)?
The alternative minimum tax (AMT) was designed to ensure that high-income individuals and trusts pay a minimum level of tax, even if deductions and credits would otherwise significantly lower their tax liability. While originally aimed at the ultra-wealthy, the AMT now affects a broader range of taxpayers, particularly those with high earnings, numerous deductions or… read more…
- Comparing Property Taxes in Texas vs. California
If you’re thinking about moving to or investing in Texas or California, property taxes are an important factor. Each state has different tax rules that can affect your finances and business costs. A financial advisor can help you understand how these differences impact your situation. Property Taxes in Texas vs. California Property taxes are a… read more…
- What Is an Acceleration Clause in a Mortgage?
An acceleration clause allows a mortgage lender to demand full repayment of the loan if certain conditions are not met. This clause protects against missed payments, violations of loan terms, or significant changes in the borrower’s financial situation. If triggered, the borrower must pay the remaining balance of the mortgage in full, rather than continuing… read more…
- Ask an Advisor: Will the $500k in My Retirement Account Be Taxed When My Heirs Inherit it?
I have about $500,000 in a 403(b) account. I am writing my will and I do not know whether the money in my 403(b) will be subject to taxes when it is distributed to those I list in my will. Or, will the money just pass directly to those whom I have named? – Bill Bill,… read more…
- How Does Series B Funding Work for Startups?
Series B funding is the second round of funding for many startup businesses acquiring new capital to pay for scaling operations, expanding market reach and enhancing product development. This phase of funding typically involves venture capital firms and investors who want to invest in companies with proven business models and a clear path to profitability.… read more…
- Florida Corporate Tax: What It Is and How It Works
Florida, known for its business-friendly environment, offers a unique corporate tax structure that can be advantageous for companies operating within its borders. Unlike many states, Florida does not impose a personal income tax, which can be a significant draw for entrepreneurs and corporations alike. However, businesses must still contend with the Florida corporate tax, a… read more…
- How Much Should You Have Saved for Retirement at Age 45?
Planning for retirement can often feel like navigating a complex maze, especially when trying to determine how much you should have saved by a certain age. For those at the midpoint of their careers, understanding how much should be saved for retirement at age 45 is crucial for ensuring financial security in the golden years.… read more…
- At What Age Can You Retire With $500,000 in Savings?
While many people think the magic number for retirement is $1 million, others wonder if $500,000 is enough. To determine how much you need, you must evaluate how long this sum will last based on your anticipated annual spending and the rate of return on your investments. Additionally, factors such as Social Security benefits, healthcare… read more…
- Texas Corporate Tax: What It Is and How It Works
Unlike many states, Texas does not impose a traditional corporate income tax. Instead, it levies a franchise tax, which is a type of gross receipts tax. This means that businesses are taxed based on their total revenue rather than their net income. The franchise tax applies to most entities, including corporations, limited liability companies and… read more…
- What Is the Treasury Stock Method and How Is It Used?
The Treasury Stock Method is a widely used accounting technique that helps companies calculate the potential impact of outstanding stock options and warrants on their earnings per share (EPS). By providing a clearer picture of a company’s financial health, the Treasury Stock Method aids investors in making informed decisions. At its core, the Treasury Stock… read more…
- How Is IRS Section 1245 Used for Real Estate Taxes?
IRS Section 1245 determines how certain types of property are taxed upon sale. Specifically, it deals with recapturing depreciation on personal property and specific kinds of real estate. When applicable, this rule can significantly impact the tax liabilities of property owners. When a property that has been depreciated is sold, IRS Section 1245 requires that… read more…
- I Have $1.4 Million Invested with My Advisor Who Charges a 1% Fee. Am I Paying Too Much?
The fee your advisor charges is based on the services you’re receiving, the individual advisor’s fee structure and other factors, including the amount of money you have to invest. With $1.4 million invested, many advisors would likely charge about 1% of the account balance as an annual fee. However, this could vary widely among advisors.… read more…
- How to Incorporate a Business: Step-by-Step Guide
Many entrepreneurs incorporate their businesses each year to gain legal and financial benefits. The process may seem complicated for those unfamiliar with the requirements. Key steps include choosing a business structure, registering with the state, getting licenses and following tax rules. While some entrepreneurs choose to handle incorporation themselves, working with a financial advisor or… read more…
- Ask an Advisor: We Sold an Investment and Our Medicare Part B Premiums Shot Up to $592. Can We Avoid This Increase?
I sold an investment property which made my income very high for that year. Medicare Part B premiums increased to $591.90 for both me and my wife. Is there any way to avoid that increase? Our Part D premiums increased as well. -Fred First off, congratulations on selling your investment property. Unfortunately, there likely isn’t… read more…
- Qualified Institutional Buyer (QIB): Definition and Who Qualifies
A Qualified Institutional Buyer (QIB) is an institutional investor deemed to have the expertise and financial acumen to engage in sophisticated investment activities. These entities include insurance companies, investment companies, employee benefit plans and certain banks, all of which must meet specific criteria set forth by federal securities regulators. The designation of a QIB is… read more…
- What Is Schedule 13G and Who Has to File It?
Schedule 13G is an official form that federal regulators may require investors to file when they purchase a significant amount of a company’s stock but have no intention of influencing or controlling the company. The threshold is ownership of more than 5% of a company’s shares. Typically, institutional investors, such as mutual funds or pension… read more…
- I’m 60 and Retiring Soon. How Should I Structure My $1.2 Million Portfolio?
Broadly speaking, there are three stages to retirement planning: accumulation, distribution and estate. The accumulation phase refers to your working life, which is when you build the wealth that you’ll eventually retire on. This stage is about savings, growth and long-term investing. The estate phase of your retirement plan is when you make preparations for… read more…
- I’m 52 With $1.4 Million in My 401(k). Would Catch-Up Contributions Be Worth It?
Catch-up contributions are usually worth it, in the sense that it’s always a good idea to boost your retirement savings. If you can increase your savings, it’s generally wise to do so. The question for many households over the age of 50 is whether catch-up contributions are necessary. If you invest in an employer-sponsored plan… read more…
- Ask an Advisor: I’m 54 and Inherited a $100k Annuity from My Mom. Should I Take the Lump Sum or Monthly Payments?
I inherited a non-qualified annuity from my mom. I am on SSDI and I receive $1,800 per month. The annuity is worth $100,000. I am trying to decide whether to take monthly payments for the rest of my life, which should be about $450 a month, or take the lump sum (between $80,000 and $90,000… read more…
- What Is the Testator of a Will?
The testator is the individual who creates and signs a will, outlining how they wish their assets to be distributed upon their death. This role is pivotal, as it ensures their final wishes are clearly documented and legally recognized. By comprehending the responsibilities and legal requirements of a testator, individuals can better prepare for the… read more…
- Grantor of a Trust: What Are Their Responsibilities?
When estate planning, it is critical to know who is the grantor of a trust, as it can significantly impact financial planning and estate strategy. As the individual who establishes a trust, the grantor shapes how their assets will be managed and distributed, both during their lifetime and beyond. Understanding the responsibilities of a grantor… read more…
- What Is a Deed Restriction and What Is It Used For?
A deed restriction is a legal stipulation written into the deed of a property that dictates certain conditions or limitations on use. These restrictions can range from architectural guidelines to prohibitions on commercial activities, and they are typically put in place by developers, homeowners’ associations or previous property owners to maintain a certain standard or… read more…
- Grantor vs. Grantee: Basic Roles and Responsibilities
The distinction between a grantor and a grantee in real estate lies in the transfer of property rights. The grantor is the party who transfers the property, while the grantee is the recipient of these rights. This fundamental relationship is pivotal in various transactions, from buying a home to transferring land ownership. The responsibilities of… read more…
- Will $780K Last if I Retire at 65 With $1,900 a Month in Social Security?
Most of the time, we talk about retirement planning in relation to goals, lifestyle and how to build the wealth to maintain that lifestyle in retirement. But there’s another way to looks at things. Once you reach retirement age, what can you do with what you have? Based on your savings, benefits and other assets,… read more…
- I Have $2.5 Million Invested With My Financial Advisor and Pay a 1% Fee. Am I Paying Too Much?
How much should you pay a financial advisor? The answer is, there are a lot of answers to this question. The simple one is: around 1%. That’s the average rate that a professional financial advisor charges to manage your money. The better one is: it depends entirely on what services you need and how much money… read more…