Month: November 2014
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What I learned this week:
Despite the short work week abbreviated by the holiday, I learned quite a bit: Web and social media My ability to “pull” web traffic from search engines far exceeds my ability to “push” readership through social media platforms. That even includes paid promotion on social media to the extent that budget would allow for testing.…
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estimating defined benefit contributions
I was impressed by onepersonplus-for-db.com estimator for maximum defined benefit contribution. The proposal it generates is simple. The discussion that must accompany the planning for this type of strategy is not simple. I know most people who consider a new pension plan are largely unaware of the risks, cost and potential downsides. So A tool…
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How to choose a financial adviser
This blog post is revised from an article that I originally published in 2006 and is reproduced at www.tonynovak.com. At that time I operated as an independent Registered Investment Adviser. Since then, I’ve simplified and automated investment client advisory functions to the point where I presume that separate RIA registration is not required. Now, as…
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Surprise announcement by DOL affects small business health care planning
I didn’t see this one coming either: A small business employer who gives an employee money to help pay for the cost of Obamacare under any circumstances is considered to have set up an illegal group benefit plan that may trigger penalties under the Affordable Care Act. The warning is titled “FAQs about Affordable Care…
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Tax planning engagement letter for individual clients (revised)
Update in September 2015: I am no longer using this letter. The new version is shorter, more segmented, and is in a format intended to be delivered by email and not on paper or PDF. The collaboration section is now simplified and changed. I am working on updating and expanding my tax planning engagement letter for…
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What I’m learning about lender-placed flood insurance
My mortgage bank requires flood insurance for our home on the NJ shoreline. I hate paying the premium lately after I learned that I can’t collect on a claim because it is highly unlikely that flood waters would ever rise high enough to a level that would to reach my house that is elevated on pilings. It…
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Americans are baffled by health insurance elections
149 million people representing 55% of working Americans are covered by employer sponsored health insurance plans. Yet the large majority have no access to advice or information other than provided by the employer, the company selling the insurance or the company handling the enrollment. As a result, many employees choose inefficient coverage options and a significant number elect…
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Rolling back the clock to reconsider a financial mistake: the Sandy recovery saga of Money Island Marina
This past weekend we rolled back our clocks by an hour. The concept triggered me to wish I that I could roll back my own clock by two years. On this weekend, two years ago, the residents of New Jersey’s Delaware Bay shores faced substantial damage to our homes and businesses from Sandy storm that…
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Avoid C corporations with high tax rates
U.S. corporate income tax rates are the highest in the world. Most incorporated businesses pay 35% before their owners ever see a dollar of return on investment. The morale of the story for small business owners: consider using a regular corporate form (called a “C corporation”) for other planning business purposes but tax strategy is usually…