Category:

Life Insurance vs. Traditional Investments: A Comparative Analysis

Investing in financial schemes either through traditional investments or life insurance policies is a calculated move made towards ensuring financial security. However, each investment avenue offers unique prospects and risks, as reflected by the circumstances surrounding GWG Holdings, Inc.

Traditional Investments

Traditional investments include vehicles like stocks, bonds, mutual funds. These are generally more liquid, offer higher potential returns but bear greater risks.

The case of GWG Holdings, Inc. serves as a potent example of this. The Dallas-based company had made its mark by converting life insurance policies into cash. It issued high-yield bonds known as L Bonds from 2012 to April 2021. However, by April 2022, the company was struggling under $2 billion in net liabilities, including $1.3 billion attributed to L Bonds. After missing payments and subsequently declaring bankruptcy, GWG went into liquidation, leaving bondholders in a precarious financial position. You can find GWG Holdings news on Haselkorn and Thibaut website, the law firm representing GWG’s creditors, have been fighting for bondholders to get their money back. Haselkorn and Thibaut filed a lawsuit against the company for allegedly failing to disclose financial information that would have revealed its true financial state.

These events underscore a critical element of traditional investments – higher potential gains can often come with correspondingly high risks. Thus, it’s vital to understand the company’s financial health and the inherent risks associated with any investment.

Life Insurance

In contrast, life insurance serves a different purpose. It provides a financial safety net to the beneficiaries of the policyholder upon their demise. Additionally, certain life insurance policies, like whole and universal life, include a cash value component that grows over time and can be used as a potential investment source.

While the returns may be more modest than those of traditional investments, life insurance policies carry a lower risk profile. The financial outcomes are more predictable and stable, albeit with less possibility for significant gain.

Interestingly, the case of GWG Holdings also extends into the realm of life insurance since one of the company’s key assets included in liquidation was their life insurance policy portfolio. However, it was sold for a mere $10 million, providing a bleak return for the bondholders. This situation, though a company’s mismanagement, brings to light the inherent liquidity risk present in life insurance as an investment.

The Middle Ground

The common denominator between life insurance and traditional investments is risk, though on opposite ends of the spectrum—insurance carries lower risk but provides lower returns, while traditional investments can potentially yield higher returns but at a greater risk.

However, a well-diversified investment portfolio strikes the balance between these extremes. Combining both life insurance and traditional investments can offer a holistic approach to investment and insurance needs, leveraging the best of both worlds—potential growth and enhanced security.

In Conclusion

Both life insurance and traditional investments play distinct but important roles in a well-rounded financial strategy. The case of GWG Holdings not only demonstrates the potential risks of traditional investments but also highlights the importance of sufficient due diligence and a diversified approach.

Remember, a smart investor doesn’t merely chase high returns but balances their financial portfolio with a blend of stability, growth, and adequate risk management strategies.

Posted On : Published By : sunnypointsouth
Category:

The Role of Technology in Financial Planning for Small Businesses

Today, technology plays a significant role in streamlining financial planning processes for small businesses. Let’s explore the various ways technology can improve financial planning for small business owners, from budgeting and forecasting tools to cloud-based accounting software.

Budgeting and Forecasting Tools

Budgeting and forecasting tools help small business owners create accurate financial projections and set realistic goals. These tools can analyze historical data, track expenses, and generate reports to help business owners make informed decisions. By utilizing budgeting and forecasting software, small businesses can optimize their financial planning and better allocate resources for growth.

Automated Invoicing and Payment Processing

Managing invoicing and payment processing can be time-consuming for small business owners. Technology can streamline these processes by automating the creation and sending of invoices, tracking payments, and generating financial reports. Automation can reduce errors, save time, and improve cash flow management, allowing small business owners to focus on other essential aspects of their business.

Real-Time Financial Data and Analytics

Access to real-time financial data and analytics is crucial for effective financial planning. Technology enables small business owners to monitor their financial performance in real-time, providing insights into their company’s financial health. This information can help business owners make proactive decisions, identify potential issues, and adjust their financial plans as needed.

Cloud-Based Accounting Software

Cloud-based accounting software allows small business owners to manage their finances from anywhere, at any time. These platforms offer features such as expense tracking, invoicing, payroll management, and financial reporting. By adopting cloud-based accounting software, small businesses can simplify their financial planning processes and ensure accurate record-keeping.

Online Tax Preparation and Filing

Tax planning is a critical aspect of financial planning for small businesses. Online tax preparation and filing tools can help business owners navigate the complex tax landscape, calculate their tax liabilities, and submit their tax returns electronically. These tools can save time, reduce errors, and help small businesses stay compliant with tax regulations.

The Future of Technology in Financial Planning

As technology continues to advance, small businesses can expect to see even more innovative tools and solutions for financial planning. Artificial intelligence and machine learning, for example, have the potential to revolutionize financial planning by providing personalized insights and recommendations based on a company’s unique financial situation.

Cassie Finance is one of the best financial planning and management software solutions for small businesses. It provides tools to help companies save time, reduce errors, and stay compliant with tax regulations. With a simple dashboard and user-friendly interface, Cassie Finance makes it easy for you to manage all your financial planning needs.

Conclusion

By leveraging technology, small business owners can simplify and improve their financial planning processes, leading to better financial management and increased business success. Embracing these technological advancements is essential for small businesses looking to stay competitive and achieve long-term growth.

Posted On : Published By : sunnypointsouth
Category:

Make Your Retirement Dreams a Reality With Gold IRA Rollover

Are you looking for a secure, reliable way to make the most of your retirement savings? A gold IRA rollover may be the perfect solution for you. Investing in gold has always been a smart financial decision, and now you can reap the benefits of this timeless asset in your retirement portfolio.

What is a Gold IRA Rollover?

A gold IRA rollover is a situation in which you take funds from a traditional IRA or 401(k) and roll them over into a gold IRA. This allows you to invest in gold, silver, platinum, and palladium at the same time, diversifying your retirement portfolio and protecting it from inflation.

A gold IRA rollover also offers you the ability to buy and sell gold, silver, platinum, and palladium with tax-deferred status, meaning you won’t have to pay taxes on the gains until you withdraw the funds. This makes gold IRA rollovers the perfect way to maximize your retirement savings and enjoy the security of gold.

How To Roll Over A 401k Into A Gold IRA?

To roll over your 401k, you need to contact the administrator of your account and request that they send you information on how to do so. You will also need to contact a custodian for your new gold IRA , such as GoldCo company. Once you’ve set up an account with them, you can transfer funds from your 401(k) into it.

It’s important to note that the custodian you choose will be responsible for storing your gold. If they are not a legitimate company, then your gold could be stolen or lost. To ensure that your IRA is safe, it’s best to use a licensed and insured custodian such as Goldco. So, if you have concerns is Goldco legit, the answer is yes. Goldco is a licensed and insured company that has been in business for over 30 years. They are a member of the Better Business Bureau as well as the National Association of Precious Metal Dealers (NAPMD).

Grow Your Retirement Savings with GoldCo

GoldCo is the perfect choice for investors looking to diversify their retirement portfolio with gold. Our experienced team will help you make the best decisions for your financial future and ensure that your gold investments are secure and performing well. With GoldCo, you can rest easy knowing that your retirement savings will be growing.

Conclusion

Gold is a safe and secure investment that has stood the test of time. As an investor, you can rest assured knowing that your retirement portfolio will be growing with the value of gold. GoldCo is here to help you make informed decisions about your investments and ensure that they are secure and performing well.

Posted On : Published By : sunnypointsouth
Category:

Can Your Business Qualify For Employee Retention Credit?

An employee retention tax credit is an incentive offered by the government to encourage employers to keep good employees. The tax credit is generally a percentage of the wages paid to the employee over a period of time.

The incentive is intended to help employers pay for the cost of retaining key employees who are in short supply in their industry or profession, as well as for improving morale and productivity among existing employees.

When you hire an employee, you have to pay a portion of their salary as income tax. However, if you can prove that an employee has been retained due to your efforts and not because they were just lucky enough not to quit in spite of poor management, then you may be entitled to claim a tax credit on your business expenses.

Who Can Qualify For Employee Retention Credit?

To qualify for this credit, your organization must meet certain conditions:

Have fewer than 50 full-time equivalent employees on average over the past 12 months (including seasonal workers).

Be eligible for a small business deduction for each year that the credit applies.

Pay eligible salaries or wages during the period when the credit applies.

You cannot claim this credit if you were eligible for the retention tax credit in any of the previous five years or if your business is a specified professional employer organization.

You may claim this credit only if it applies to ineligible salaries and wages paid by an associated corporation.

Consult With Professionals For Help

You may be able to claim employee retention credit if you’re eligible and the business has met all of the requirements. However, you should consult with a tax professional or accountant before claiming it to ensure that you have met all of the criteria. It’s always a good idea to consult with professionals before making any tax-related decisions. Your accountant or tax professional can help determine whether you should claim this credit, what amount of the credit is available and which expenses qualify.

In addition, they can help you make sure that you comply with all of the requirements for claiming the credit. If you’re eligible and have met all of the requirements, employee retention credit could be a great benefit to your business.

Conclusion

The employee retention credit can be a great way to help your business. It’s especially useful for small companies that may not have the resources to provide generous benefits packages. And because it’s a tax credit, it’s essentially free money that you don’t have to pay back.

Posted On : Published By : sunnypointsouth
Category:

What Is A 401k To Gold Rollover?

With the increasing value of gold, investors are looking for ways to diversify their portfolios and protect themselves in case of an economic downturn. One way to do this is by converting your 401k into physical gold.

What Is A 401k?

A 401k is an employee retirement account that employers often match with company funds and employee contributions. It’s similar to an IRA account but only applies to employees who work at companies that offer 401k plans. The funds in these accounts are held by trustee banks and managed by trustees who oversee their investments until they retire at which point they can withdraw the money in full or have it transferred into an IRA account.

What Is A Gold 401k?

A gold 401k is a type of retirement plan that allows you to invest in physical gold instead of stocks, bonds and other traditional investment vehicles. This helps protect your savings against the effects of inflation and market volatility while allowing you to diversify your portfolio with something tangible like gold.

In addition to these benefits, gold 401ks also offer some tax advantages. For example, if you invest in a gold-backed IRA, then you won’t be taxed on any gains until you retire and begin taking distributions from your account. Another tax benefit is that you may be able to deduct your contributions from your income, which can help reduce your taxable income.

When you invest in gold in 401k , you’re also investing in the futures market. This means that your gold will be stored at a secure, third-party facility and can be easily liquidated if necessary. This is an important point because it means that you don’t need to worry about your gold being stolen or lost. In fact, many people choose to invest in gold as a way of protecting themselves against inflation and market volatility.

Conclusion

Overall, if you are interested in investing in gold, a 401k is a great way to do so. You can purchase gold and other precious metals without having to pay taxes on the investment, which can help save you money.

Posted On : Published By : sunnypointsouth
Category:

Everything About Gold IRA Rollover

A gold IRA rollover is a tax-advantaged way to transfer your 401(k) or other retirement plan into a self-directed IRA. You can use this type of account to invest in gold and other precious metals, as well as collectibles, real estate, private placements, and more.

Gold IRA Rollover Benefits

One of the biggest benefits of a precious metals IRA is that you don’t pay taxes until you sell your assets. This means you won’t have to pay taxes on any gains until you liquidate your holdings.

You’ll also be able to defer capital gains taxes on your other investments when you rollover your existing 401(k) or other retirement plan into an IRA account with precious metals as one of its investment options.

Gold IRA Rollover Requirements

Your income level will determine whether you can open an account with precious metals as an option for investing your retirement funds. This is because of the IRS’s IRA contribution limits. You can’t contribute more than $5,000 annually to an IRA if you’re under 50 years old or $6,000 if you’re 50 or older. However, there are ways around this restriction through various rollover strategies that allow investors to maximize their tax savings.

Gold IRA Rollover Companies

There are many gold IRA rollover companies that offer precious metals as an investment option. These companies typically provide a custodial service for your IRA, and they will store any precious metals you purchase through them. They also offer other investment options such as stocks, bonds and mutual funds in addition to precious metals. One of the most popular gold IRA companies is Gold Co as you can see from all Gold Co reviews found online. They have a great reputation. They also offer some of the best gold IRA rollover rates in the industry, which is why many investors choose them over other companies.

Posted On : Published By : sunnypointsouth
Category:

Gold IRA Rollover: How to Diversify Your Retirement Portfolio

A gold IRA rollover is an investment in a precious metals IRA, which allows you to transfer funds from an existing retirement account into an account that holds gold, silver, platinum and palladium.

Gold is one of the oldest forms of money, and many people believe that it will continue to be a valuable asset even if other forms of currency fail. They may also see a chance to diversify their portfolios by adding gold to their retirement savings plan.

Why Gold IRA Rollover?

A gold IRA rollover allows investors to transfer funds from another retirement account — such as a 401(k) or traditional IRA — into an account that holds physical precious metals. This can be done for a variety of reasons, including:

  • To take advantage of tax benefits on precious metals holdings
  • To add real asset allocation in addition to stocks and bonds
  • To diversify a portfolio
  • To hedge against inflation

How To Invest in a Gold IRA Rollover?

An investor can open a gold IRA rollover account with any provider that offers the service. The process is similar to opening any other type of retirement account, such as a Roth or traditional IRA. In order to do so, you’ll need to provide some personal information about yourself and your financial situation — including income levels and retirement savings goals — in order for the provider to determine whether you’re eligible for a gold IRA rollover account. If so, you can then choose from an array of investment options within your account. You can also decide whether to have 100% of your assets invested in precious metals or if you want some portion allocated to other asset classes such as stocks and bonds.

Choosing The Right Gold IRA Company

If you’re thinking about opening a gold IRA rollover account, it’s important to find a company that offers quality services at an affordable price. You also want to make sure they are reputable and have been in business for several years. In addition, if you plan on rolling over any assets from another retirement account (such as a 401k), you’ll need to choose an IRA provider that can handle this type of transaction.

GoldCo IRA investments company in is one of the best gold IRA companies on the market today. They offer a wide range of services, including precious metals IRAs and 401k rollovers, as well as estate planning services. You can also buy gold coins from them, if you want to diversify your investment portfolio even more.

Posted On : Published By : sunnypointsouth
Category:

Why Gold IRA?

When it comes to investing in precious metals, gold is the best option. Why? Because it has always been a safe haven and an inflation hedge. It’s also an excellent way to diversify your portfolio.

What Is A Gold IRA?

A gold IRA is an Individual Retirement Account (IRA) that’s invested in physical gold and other precious metals. It’s designed to help people save for retirement while providing them with a safe haven for their money during uncertain times.

Who Can Invest In A Gold IRA?

Anyone with a valid Individual Retirement Account is eligible to open a gold IRA. It doesn’t matter whether you’re young or old, rich or poor. And there are no income limits for investing in one either. You can open a gold IRA with any company that offers this type of investment. Of course, you should do your research as not all companies are good. Fortunately, there a lot of reviews about Gold IRA best providers online where you can learn more about each company before making any decision.

There are many different types of gold IRAs, including self-directed and traditional. Self-directed accounts allow you to invest in a wider range of precious metals than traditional accounts do while also giving you more control over your investments.

Gold IRAs are usually most popular with people who want to invest in gold, but don’t have the funds to buy it outright and store it personally. They’re also a great way to diversify your retirement portfolio while providing protection against inflation.

As far as investing goes, gold doesn’t pay dividends or interest like stocks and bonds do. However, it does offer many other benefits that make it an attractive investment option.

Gold IRA Benefits

Diversification: When you have a gold IRA, you’re diversifying your portfolio in an extremely safe way. Gold also has the added benefit of being easy to liquidate when needed.

Tax Advantage: You can avoid paying taxes on your gains if you put them into a gold IRA. The only caveat is that any earnings from your investments must be converted into physical form before placing them in the account.

Security: Unlike other investments, gold is not tied to the value of any particular currency or government. It’s a way to protect your money from inflation, deflation and market crashes.

Liquidity: You can sell gold at any time, and it’s easy to convert back into cash. This makes it an ideal investment for people who want to hedge against inflation or are looking for a safe place to store their money.

Cash Flow: You can easily liquidate your gold IRA when you need cash. This means that if you want to buy a new car or pay off some old debt, you can do so without having to sell your assets first.

Conclusion

Gold is an excellent investment for people who want to protect their money from inflation, deflation and market crashes. It’s also a great way to diversify your portfolio, which helps reduce risk and gives you more control over your financial future.

Posted On : Published By : sunnypointsouth
Category:

What Is A Check Stub Maker?

Check stub maker is a tool that helps you create check stubs online. It is an online software that allows you to create customized check stubs. A check stub is a document that shows the details of your paycheck. Check stub maker is a very useful tool if you are looking for a tool to create check stubs online.

Check Stub Maker Online

Check Stub Maker Online is an easy to use tool where you can create professional-looking check stubs from scratch within minutes. You can use it to print paystubs and print checks for free, or save them as PDF documents, Excel spreadsheets or Word documents for later use or archiving purposes.

How To Use Check Stub Maker Online?

To start, simply click on ‘Create’ button on top of the page and then select one of the options available in drop-down menu like ‘Create Blank Check Stub’, ‘Create Blank Paycheck’ etc., depending upon your requirement. Then enter all the required details like name, address, social security number etc., into respective fields provided in the form displayed on screen before clicking ‘New File’ button located at right top corner of screen next to ‘File Name’ field. Once you are done entering all the details, click on ‘Save’ button located at bottom right corner of screen to save the file. You can also choose to go with one of the pre-defined templates provided by the software and then edit it according to your needs.

After saving the file, a blank check stub is automatically generated which you can print out using your printer. You can also choose to save the file in any format like .pdf or .docx etc., by clicking on corresponding button located at bottom left side of screen.

Paid vs Free Check Stub Makers

There are many check stub makers available on the internet that you can use to create and print your own check stubs. Some of them are free while others charge a small fee for their services. Paid check stub makers provide more features than their free counterparts and also have better support system in place. They also offer free trial periods so that you can test out the software before purchasing it. The best paid check stub maker online is Real Check Stubs. It offers many useful features such as easy to use interface, customizable reports and statements, instant payroll calculations, etc. It also supports a wide variety of tax codes so that you can customize it according to your requirements.

Posted On : Published By : sunnypointsouth
Category:

Basic Gold IRA Investment Rules And Guidelines

There are two methods used by the IRS to apply taxes to gold placed in an IRA as an investment. An investor should learn the gold IRA Rules to receive the desired benefit from investing in a gold IRA. The two options available for tax purposes affect the method of withdrawal used for taking the gold out of the IRA.

The first withdrawal option available is to liquidate the gold before withdrawing it from the IRA. Normal IRA tax rules apply when this option is chosen; taxes are paid on the withdrawal. The second choice is to take physical possession of the gold in its metal form and liquidate it at a future time.

Choosing this procedure requires an investor to pay income taxes on the value of the metal at the time of the withdrawal. At the chosen time of the liquidation, a 28 percent capital gains tax is required by the IRS. The benefit offered by a gold IRA is the choice of when the income taxes are due on the withdrawal.

If tax rates remain low the most beneficial option appears to be in liquidating and paying the income tax. An increase in the value of gold in the future could make the most advantageous choice become holding the metal in its physical form for future appreciation. The disadvantage is the possibility of double taxation. The taxation levied when the money is withdrawn and the 2nd taxation on the capital investment.

An investor must choose wisely when considering a gold IRA. Specific rules apply for the investment to be qualified. Among these rules are that only US gold coins along with other bullion coins are allowed as an investment. Coins carrying a numismatic premium are not allowed. Another investment error to avoid with a gold IRA investment is purchasing the more expensive Proof versions of bullion coins as the gold investment rather than the standard Mint State.

The method of manufacturing the Proof versions cause these coins to demand a premium price in the market. In essence the investor is actually getting less gold “value” for the dollar. A self directed IRA account is required to purchase these coins as an investment. These accounts are allowed to contain a variety of different assets.

Once the coins are purchased, they must be stored in a depository. These locations are insured, secure approved for protecting valuable assets. Each investors’ assets are held in a segregated compartment so that each investor receives the actual coins deposited upon the withdrawal.

More Information On Gold IRA

As you can see there are quite a few rules in Gold IRA and it can be quite confusing. Fortunately, there are sites like IRA Investing that can help you through the process. They have a list of all the rules and regulations that you need to know about Gold IRA along with step-by-step instructions on how to set one up. The information they provide is invaluable, especially if you are new to this kind of investment.

Posted On : Published By : sunnypointsouth