By David L. Cumming
From record-breaking stock market returns to falling unemployment, the U.S. has no shortage of positive economic indicators, and the majority of investors say they feel confident about achieving both their short- and long-term goals, according to the latest Morgan Stanley Investor Pulse Poll, which surveyed more than 1,200 investors age 25 to 75 with over $100,000 in assets.
About one in four (29 percent)—or 36 million—U.S. households fall into this category.
By Jill Nagy
“More than in recent years, there is a need to take a look at the tax impact” when making investment decisions, said Dale Mullin, a certified financial planner with WDR Financial LLC, and a certified public accountant with the accounting firm of Whittemore, Dowen & Ricciardelli LLP, both located in Queensbury.
New, mostly lower, tax rates and new provisions for tax deductions and credits will have an impact on investments in a business, decisions about taking distributions from taxable retirement accounts and decisions about allocating business proceeds between salary, pass-through income and investment in equities.
Mullin said interest rates are beginning to rise and inflation is becoming a possibility. Those factors might indicate that this is a good time to make investments in equipment in order to lock in lower prices and lower interest rates.
By Meghan Murray
Summer is here – and so is vacation season. Americans spend a lot on their summer getaways—more than $100 billion in 2017 alone, as reported in Travel and Leisure magazine.
When you hit the road, you will enjoy getting away from your regular tasks, but there’s one part of your life that should never take a break—your investments.
To keep your investments working consistently and efficiently for you, consider these suggestions:
By Jill Nagy
Despite uncertainty about the fate of the U.S. tax code, advice from accountants for year-end tax planning remains similar to what it has always been: Try to accelerate expenses and delay receipts.
If anything, the prospect of possible reductions in tax rates and the elimination of some tax deductions, gives greater credence to that advice.
“There are a lot of unknowns,” said James E. Amell, a CPA in the Queensbury office of Marvin & Co. He expects corporate tax rates to come down but predicts that the Republicans in Congress will not make radical changes.
“They want some durability in what they do,” he said. “They don’t want to see everything changed again when the control of Congress changes.”
Robert Ricciardelli, a CPA and partner at Whittemore, Dowen & Ricciardelli, also in Queensbury, agreed. “It looks like something is going to get done,” he said. “It is tough to plan.”
Defer income, he advised, “even more so than usual.”
Deferring income until 2018 also defers the taxes on that income, possibly into a year when rates are lower. “Hold off on some of you billing,” Amell said.
By Kevin Hedley
As Congress and the White House debate tax plans, there have been much discussed changes to the traditional 401(k) plan. The proposed plan to adjust the maximum limit for contributions has been tabled but we still have a long way to go before we have a tax plan in place.
That does lead to the questions—What are the limits for various retirement plans and what are some options for a small business owner to save for retirement?
Depending on your immediate and long term goals there are plenty of options. There are defined benefit plans, Defined contribution plans and other retirement savings plans such as SEPS, SIMPLES and IRAs to name a few. All of these plans allow a deduction from current income if a contribution is made according to the respective plan terms. The differences between them include the amount of contribution and the costs of administering each plan.
Benefits are paid from these plans in most cases at retirement, death, disability, or separation from service. Distributions from plans that do not fall into one of the allowed categories are also subject to penalty ranging from 10 percent to 25 percent.
Under a defined benefit plan, an employer makes annual contributions to the plan to provide each participant with a set benefit at retirement. Contributions to the plan are actuarially determined, and the plan can be integrated with social security. An integrated plan reduces the contribution for the lowest-paid employees and still allows for a significant contribution on behalf of the owner and key executives. Benefits under the plan are fixed using a definite formula. Typically, the formula expresses the benefits in one of the following ways:
By Jennifer Farnsworth
The best advice Paul Dowen, a managing partner of Whittemore, Dowen and Ricciardelli, LLP in Queensbury, can give to business owners is pretty simple: Have cash.
Dowen said the number one thing he tells small business owners, or those looking to open a small business is have enough cash in a reserve.
“I tell people just starting up—hoard your cash, be prepared,” said Dowen.
Dowen said when starting a business, people should not be undercapitalized. They need to figure out how quickly cash can be generated. He recommended having enough cash to live on for three months, so that until a person can be solvent before collecting the first paycheck as a small business owner.
“If you don’t have that, then it is best to wait on the startup,”said Dowen.
For current business owners, he gives similar advice. He warns against purchasing things that won’t help generate a cash flow. Most banks are happy to finance equipment for small business owners, especially items that will enhance the business and generate more equity.
Dowen also advises to have a business plan in writing to serve as a guide to short- and long-term goals. It should be a clear plan that addresses sources of income and the demographics of target customers. Businesses need to know who they are marketing to, because it will greatly affect cash flow.
“That is how you will grow and make money. Ninety five percent of businesses fail because of cash flow,” said Dowen.
Dowen recommended using marketing tools like social media to tap into potential customers. Once that research is done, look to find ways to finance the business. Save as much as possible and make sure the venture can afford to lose money if things don’t go as planned.
Pamela D. Wickes has created Wickes Forensic Accounting & Consulting. Courtesy Pamela D. Wickes Forensic accountant Pamela D. Wickes has branched off to found Wickes Forensic Accounting & Consulting LLC. The niche accounting services firm focuses on forensic accounting,...
Frank Mayer, a member of Bond Schoeneck & King, deals with tax-related matters. Courtesy Bond Schoeneck & King By Frank C. Mayer It's been said that all good things must come to an end. This includes an ownership interest...
NBT President and CEO Martin A. Dietrich was elected chairman of NBT Bancorp Inc. Courtesy of NBT Daryl R. Forsythe has retired as chairman of NBT Bancorp Inc. Courtesy of NBT The board of directors of NBT Bancorp Inc....
Breanna Fulper prepares to cut the ribbon at the formal opening of a new Edward Jones Financial office at 2 Church St. in Greenwich. Fulper is a financial advisor.Financial advisor Breanna Fulper and office administrator Lori Lennox held a grand...