Above the Canopy

12/14/2019

It’s now December, and if you blink hard enough (or drink enough egg nog) you’ll wake up & find yourself in January of a new year. For many people, holiday office parties & Christmas shopping comes hand in hand with a few year end financial chores.

There are plenty of these financial “chores” you could occupy yourself with if you chose. But since December 31st coincides with the end of the tax year, today’s post will cover my 5 favorite year end tax planning tips. These are five of the most common year-end opportunities I see to reduce your long term tax liability.

There are plenty year end financial "chores" you could occupy yourself with if you chose. Today's post will cover my 5 favorite year end tax planning tips. These are five of the most common year-end opportunities I see to reduce your long term tax liability.

12/14/2019

Back in September, Bloomberg published an article about index investing that made a few waves. If you read the book or watched the movie “The Big Short”, you might remember Michael Burry. He’s the former doctor turned hedge fund manager who lives in Silicon Valley (and rocks out to death metal in his office while pondering investment strategy).

The article made waves because Burry claims that index investing is a massive bubble. Comparing index funds to CDOs (collateralized debt obligations), Burry’s perspective stoked fear in the hearts of more than a few investors.

Here’s the guy who correctly identified one of the biggest bubbles and upcoming crashes of all time. And he’s saying that index investing could be a bubble too? Maybe the simplicity we’ve enjoyed of investing in index funds was really a big mistake. What if he’s right?

Don’t run for the hills just yet. There’s been some great discussion of whether the argument is fair (here, here, and here, for example). Here’s my take on whether index investing really is a bubble.

Back in September, Bloomberg published an article about index investing that made a few waves. If you read the book or watched the movie “The Big Short”, you might remember Michael Burry. He’s the former doctor turned hedge fund manager who lives in Silicon Valley (and rocks out to death metal...

12/06/2019

Here's a good list for year end 401k to-do's. Not a comprehensive compliance check list, but a few items to help clean up your plan. Executive summary: search for missing participants and force out ex-employees with less than $5,000 in the plan.

Here are plan review tips for reviewing plan provisions and completing key tasks, offers assurances fiduciary responsibilities are met.

11/30/2019

Now that we're approaching year end many small businesses start thinking about what they'll owe come tax time in April. Here's a pretty good list of tax strategies available to small businesses. Not all will apply, and those that do may not be "executable" prior to 12/31. Good food for thought either way.

Tax planning is a year-round event if you want to minimize your business's tax bill. Whether it's surviving an audit, capitalizing on business deductions, or finding tax-friendly ways to run your business, this Inc.com guide can help reduce your tax obligations and make paying taxes less anxiety pro...

11/29/2019

Many people I work with realize that they need some kind of life insurance once they start having kids. The purpose of life insurance, of course, is to ensure that everyone in your household can maintain their standard of living if you die prematurely. And as soon as other people start relying on income you haven’t earned yet to live, it’s probably time to consider some coverage.

The problem seems straight forward, but the options are confusing. First, there’s more than one type of life insurance. Whole, variable, universal, and term are the predominant options available. While insurance agents love to sell the first three (because they’re the most profitable to the insurance company, and therefore pay the greatest commissions) term is the least expensive and usually the best fit.

I’ve written in the past about why most people seeking life insurance should steer clear of permanent insurance policies. But what about the second part of the equation: how much do you really need?

There are two predominant ways to figure this out: human life value and a life insurance needs analysis. Today’s post will explore both methods.

http://abovethecanopy.us/how-to-determine-how-much-life-insurance-you-need/

11/27/2019

If you think you know what your business is worth.....you're probably wrong. Good reminder that you can't rely on math alone. Different buyers have different abilities to leverage & integrate your business into their.

There’s got to be an easy way to value your privately-owned business, right? A quick rule of thumb that gives you a realistic market price, give or take a few hundred thousand dollars? The simple answer is no.