With unemployment at its lowest level in decades, many businesses are struggling to retain employees and fill vacancies. An attractive retirement or profit-sharing plan can help meet this challenge while also reducing a company’s tax liability. It can also help company owners accumulate wealth for their own retirement. (more…)
Don’t Put All Your Eggs in One Basket, or All Your Wealth in One Stock
It’s been said repeatedly: Don’t put all your eggs in one basket. Yet many individuals often disregard this saying. And it comes back to haunt them or their heirs at a future date.
If you’ve built up a substantial nest egg over the years, it’s likely you feathered it through various investments. This growth may have been fueled by one or two specific stocks. For instance, if you acquired Amazon or Apple before those stocks took off, you may be sitting on a goldmine. (more…)
Pros and Cons of Using Retirement Accounts for Emergencies
As businesses and individuals continue to feel the financial impacts of the COVID-19 pandemic, some taxpayers might be considering tapping into their tax-qualified retirement accounts, either to keep their businesses operating or to meet personal cash needs. Certain provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act made this strategy more accessible for many taxpayers.
Business owners, plan administrators, and individual taxpayers considering such a move should familiarize themselves with the CARES Act’s special rules, as well as the general advantages and disadvantages of using retirement accounts to manage temporary cash shortfalls. (more…)