Business Planning

Practice owners can surpass 401(k) contribution limits with Cash Balance plans.

Professionals (doctors, dentists, lawyers, etc.) may have very high wages, but the earnings come after years of school, training, buying into a practice, and paying down student debt. Because of these factors, professionals often are unable to make meaningful retirement contributions until the middle or later parts of their careers. Professionals, who are owners in a practice, can make up…

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Business Planning, Financial Planning

Seasonal and Cyclical Revenue Declines will make Realtors Save More Money.

I have previously written that home builders and contractors need to keep more money in emergency savings than most professionals do. Several realtors and real estate agents have since contacted me to point out that they also have to keep extra money in emergency savings due to seasonal and cyclical sales fluctuations. They are absolutely correct. Financial planning professionals have…

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Business Planning, Financial Planning

Self-employed Real Estate Professionals, too, can have a 401(k)

Real Estate professionals who are considered self-employed may love the flexible nature of their job, but are often envious of corporate worker’s access to a 401(k) plan. Well, there is good news. Self-employed individuals, like many Real Estate Agents and Brokers, also have the privilege of saving for retirement with a 401(k) plan. The plan is commonly called a solo-401(k)…

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Business Planning, Contractors & Builders, Financial Planning

Builders should hire an advisor who understands their industry.

I recently spoke with a builder of custom luxury homes about his experience during the 2008 recession. Despite having been in business for 40 years, he was woefully unprepared to weather the recession. His company made deep spending cuts and sold company property, but the pain spilled over into his personal assets. This builder had to liquidate all of his…

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