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Recently, I wrote an article about hiring your children in your business. In that post, I showed business owners that you can hire and pay your children (ages 0 to 18) as long as you follow certain guidelines. Yet, what if your child has special needs? What if they have disabilities? Yes, hiring your special needs child is possible, but there are a few unique considerations that need to be addressed. Special thanks to my Podcast interviewee and contributor, Jonathan Peyton of Horizon Ridge Wealth Management in Ashburn, VA. Johnathan is a renowned CERTIFIED FINANCIAL PLANNER™ who specializes in wealth management and special needs planning. Is it Even Possible? As long as they are capable of performing a task within your business, you can definitely make them an employee. Yet, if you hire your special needs child, you want to do it in such a way that it doesn’t harm […]

The post Hiring Your Special Needs Child – A Unique Employee with Unique Benefits appeared first on Financially Simple.

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Can you imagine taking money out of one of your pockets, deducting it as a business expense, and then putting it back in your other pocket tax-free? That’s pretty crazy, right? What if it were legal? Actually, this tax strategy is so common that the IRS issued a private letter ruling on the matter. So what is this tax gem I’m talking about? You can rent your home to your business for business meetings! This even goes beyond the standard home office deduction found in IRC 280A. Let me explain how this works. Please note that the information in this article is not tax advice. I am merely giving you information about tax strategies you can employ, but this information does not take the place of advice from your personal tax advisor or planner. If you think the information in this piece applies to you, contact your financial planner, CPA, […]

The post IRC 280A(g) – Earn Tax Free Income Beyond the Home Office Deduction appeared first on Financially Simple.

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As a CERTIFIED FINANCIAL PLANNER™, I’m always looking for ways to increase the overall net worth of my clients as well as myself. Investing in your retirement accounts is obviously one of the easiest strategies to employ when working toward that goal. Additionally, I’m not really a fan of investing in individual stocks, however, with the various apps available, you can often play a little without ruffling your nest egg too much. Which is why today I’m sharing three investing apps I personally utilize to play and grow my wealth. Top Investing Apps  1. Acorns The first app on my list is Acorns. The concept behind this app is to invest your “spare change.” We’ve all probably saved our spare change in a jar at some point in our life. Well, now that notion is getting an upgrade with a digital spin. Your Acorns account takes whatever you spend […]

The post 3 Investing Apps – This Financial Planner’s Favorites appeared first on Financially Simple.

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Recently a prospective client asked me, “Justin, how will I know when is the right time to sell your business? Is it really possible to know?” Looking around right now we know the real estate market is up. Stocks are booming. This perhaps also encourages you to ponder the sell of your business. Determining your answer isn’t cut and dry. It needs to be broken down into a couple of different areas helping you answer your perfect time. Personal Factors’ Effect on Selling Your Business The first thing to consider is personal timing. How’s your energy level? As an owner are you struggling to keep up mentally, physically and emotionally? If that’s you, then now is most likely not the best time to sell your business. Waiting until an owner is weary and completely zapped of energy only benefits the buyer. As an owner, you want to make a move […]

The post When is the Right Time to Sell Your Business? The 3 Determining Factors appeared first on Financially Simple.

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Did you know that you can legitimately hire your kids, no matter what age they are, to work in your business? The IRS Code says you can! Yet, I’m not talking about hiring your children into  your business as “slave labor.” No, you’re going to put your kids to work to teach them about entrepreneurship and to help them develop a strong work ethic. However, you’re going to pay your kids for the work they’re doing. As of 2018, each of your children can earn up to $12,000 in tax-free income! So, your kids (under the age of 18) can work, bring home tax-free money, and pay for their own expenses. What a great chance to teach them about budgeting… Let me walk you through how this concept works. Then, I’ll give you 51 jobs your children can do for your business. Before I give you a list of jobs […]

The post Hiring Your Child in Your Business – More Than Just Tax Benefits appeared first on Financially Simple.

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If you’ve already created your ideal budget, then you know how much money you need coming into your family. Essentially, you (personally) could bring all of that money home from your business. However, what if your spouse brought home some of that money? What if hiring your spouse offered your family and your spouse benefits you wouldn’t have otherwise? Although many of my business owner clients ask me, “Should I hire my spouse as an employee?”, what they are really asking is, “What benefit does putting my spouse on payroll provide?”. 9 Benefits of Hiring A Spouse as An Employee Disclosure:  I advise you to discuss these 9 points with your tax advisor and your financial advisor because some of these points may not be possible for you depending on your entity type. #1 – Retirement benefits The number one reason I recommend putting your spouse on your business’s payroll […]

The post Hiring A Spouse as An Employee… A Smart Option with Many Benefits appeared first on Financially Simple.

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No matter whether you are just getting started in business or are a seasoned business owner, you need to revisit the method by which you are paying yourself. Perhaps, in the initial days of your business, you went through a period of time where you paid yourself only if there was a surplus in the business accounts. However, as your business matures and as cash flows become more predictable, you must gain control of your withdrawals. You should plan how much and how often you pay yourself from your small business. Before I go any further, I want to remind you that I’m trying to simplify complex financial matters. I may be leaving out some information specific to your individual need. Therefore, visit with your CPA and CFP® because they can give you further guidance about this particular topic. How Should You Pay Yourself? Did you know that the structure […]

The post Determining How to Pay Yourself From Your Small Business appeared first on Financially Simple.

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In this post, I’m going to tackle one of the most difficult areas of financial planning. This single area – this one single thing – will make or break your financial future. Today’s topic is how much should you pay yourself as a small business owner. Two Simple Words That Determine How Much You Pay Yourself As you know, I spent my last blog series dealing with growing your business, adding maximum value to it. Yet, many times, business owners don’t think about how much to pay themselves. Inevitably, you end up going to work, busting it, producing revenue, paying bills through the company, and taking whatever’s left at the end of the day, week, month, or year. You simply take the spoils. But friends, there’s a better way. You can actually control your personal financial life as a business owner. You see, the question, “How much should I pay […]

The post “How Much Should I Pay Myself from My Business?” appeared first on Financially Simple.

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Richard Branson, famous entrepreneur and owner of Virgin Airlines, once said, “Never take your eyes off the cash flow because it is the lifeblood of business.” I agree with that. I would say the same is also true in your personal finances. However, I actually propose that the amount of cash flow which passes through your personal accounts is more important than the cash flow that passes through your business accounts. Therefore, personal cash flow matters to the business owner a great deal. What is Cash Flow? To make sure we’re all on the same page, let’s define cash flow. Technically, cash flow is the net amount of cash you deposit and spend during a period of time. In my Financially Simple terms, cash flow is the amount of money you put into your checking account minus the amount of money you use to pay bills each month. Whether you’re […]

The post Why Personal Cash Flow Matters to the Business Owner appeared first on Financially Simple.

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Today, I want to talk about the psychology of money, or what’s known as behavioral finance. If I’m going to teach you how to take control of your personal finances (your cash flow, your risks, your investments, and your distributions), you must know why you lose control of them. You see, the way you think about money directly affects the way you behave with money. Your personal beliefs and your unique experiences create your biases about life and about money. Those money biases affect your feelings and expectations about money which then lead you to handle money a certain way. The way you think about money directly affects the way you behave with money. Typically, if your emotions affect your actions, then you are going to react or act irrationally with money rather than rationally. As Brad Sherman with Investopedia says, “The concept of behavioral finance helps us recognize our […]

The post How Money Biases Affect the Way You Spend, Save, & Invest Money appeared first on Financially Simple.

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