Exit Insight: sale proceeds from your business

The following is an excerpt from “Exit Insight: Getting to Sold!” (pp. 157-158) available on Amazon.com and Merrell Publishing: The third element contributing substantially to your retirement lifestyle is the money you receive from the sale of your business. Most business owners do not know the true value of their business, heavily overestimating its worth as we have mentioned repeatedly. This is a huge detriment because if you do not know its value, you are unable to calculate whether or not you are due for a dear or a dire retirement. The after-tax proceeds from the sale of your business are critical to your retirement comfort. Most business owners assume a happy ending, foolishly confident that a buyer will be ready and waiting to purchase the business at the asking price when the day comes. Yet the chances of that happening are remote without preparation and planning. Just as you would dress up your home for curb appeal, fix the leaks, mow the backyard and put flowers on the dining room table, your business may require several years of carefully considered adjustments to prepare it for sale, so it stands out from the flood of other businesses begging to be bought. Consulting with a master financial planner trained in understanding a variety of ways to strategically synthesize the fiscal tools available to you for reducing taxes, improving your business’s appeal, increasing your portfolio’s value, and providing the most funds for your retirement lifestyle is the most lucrative and sensible investment you can make. Whether your financial accordion’s bellows need some steady pushing, the tone chamber requires an adjustment, or...

States with no income tax

Did you know there are six other states besides Washington that don’t charge income tax? Here they are, in alphabetical order: Alaska: The state of Alaska relies heavily on petroleum revenue to cover the state budget. Florida: Sales tax and property taxes cover government costs in Florida. Nevada: Gambling-related taxes and fees raise almost a billion dollars for Nevada each year. South Dakota: This western state gets its revenue from a variety of taxes, including “sin taxes” on cigarettes and alcohol. Texas: The state of Texas sustains itself through a state sales tax, local sales taxes and property taxes. Washington: The Evergreen State supports itself through a variety of taxes. Our state sales tax ranges from 6.5% to 9.5% in King County. Wyoming: This state does not have a personal state income tax or a corporate income tax. While it may seem appealing to live in a “no income tax” state, these states still pass along their operating costs to residents through other taxes and fees. As the saying goes, there is no free lunch.   Source:...

401(k) plans: review, monitor and adjust

When you choose Synergy 401(k) to set up your 401(k) plan, you get more than just an objective financial advisor. You get a team of 401(k) experts that will help you grow and nurture your plan from Day 1 to ensure it meets your needs as the business owner, as well as the needs of your employees. Part of that process is reviewing, monitoring and adjusting your plan and its investments. To help you and your 401(k) plan participants stay on course, we review your goals and objectives with you annually. Does this plan still meet your needs? If not, we’ll recommend adjustments. We will hold quarterly investment review meetings to help you and your plan participants understand your investment choices and the results of those investments in our five-step process.           We are also available any time you or a plan participant has a question about the plan. We can explain everything from salary deferrals and contribution limits to investment performance and hardship withdrawals. To learn more about how a 401(k) plan can benefit your business, visit our Synergy401k.com site, give us a call at 206-386-5455 or send us an email. We enjoy sharing our expertise and helping business owners create healthy retirement plans that meet everyone’s...

Seattle Seahawks: An Underdog Dynasty

by Douglas daBoone Johnson Efren Herrera’s flailing fumble. Jim Zorn’s no-look throws. A 2006 Superbowl stolen by referees. These are a few Seahawk moments emblazoned on the minds of fans that were put to rest by a 2013 pro football season that celebrated, not just a whole new bird as champions, but dare I say, a dynasty? The Hawks ushered in a new era. “Underdog football” is here to stay, and the NFL will never be the same. Football is a struggle of will— a measure of the fight in the player; it’s a game of emotion that has allowed many a David to overcome Goliath. That said, some of the “Davids” of professional football were rejected and scorned for years, which motivated them to achieve astounding levels of greatness. Jerry Rice was told he wasn’t fast enough. He went late in the draft and became the greatest receiver of all time. Comparably, Tom Brady started a few games in college, but was deemed undersized with a weak arm. He also went late in the draft. After winning three Superbowls, Brady was asked if he’d gotten over the slight. The answer was an emphatic, “No!” What if you had an entire team of underdogs— a team composed of players who did not come from celebrated football high schools—a group who had not played for celebrated college conferences like the SEC? Undrafted players would have something to prove. They’d play with chips on their shoulders. They might strive to become the next Tom Brady or Jerry Rice. If you built a team of such underdogs, you would have, for the...

10 ways business owners can save money on taxes

With 2014 behind us, income taxes are on our minds right now. There is little we can do to reduce our tax liability for last year (except setting up an IRA and making contributions by April 15), but this is a good time to start tax planning for 2015. Here are 10 ways business owners can reduce their tax liability: Closely track tax deductible expenses, using software like QuickBooks or an app like Expensify. Track everything from mileage and business lunches to business travel and moving expenses. If you have employees, add them to your Expensify account to track their expenses as well. File your taxes on time. This might seem obvious, but not everyone pays their taxes when they’re due, racking up late fees and penalties. Visit IRS.gov for tax filing due dates and circumstances under which the IRS might waive penalties. If you are anticipating an exceptional year in terms of revenue, consider accelerating the time line on major business purchases to offset this year’s revenue. Start a profit sharing plan to put away as much money as you can as the business owner. Our team of retirement planning experts can help you choose the right plan for your company and set up the plan to maximize your contributions. Ask us how. If you own multiple businesses, create an overarching umbrella company to simplify taxes and use the losses of one company to offset the profits of another. Working from a home office? You may be able to deduct expenses for the business use of your home if (a) you regularly use part of your home exclusively...