Tag Archives: investment

Investing Business Profit

Many of us have such small home businesses that any money we net after expenses goes directly into the family coffers. As a matter of fact, it may be hard to imagine that your home business will ever be so successful that you will make MORE money than you can spend on a monthly or annual basis. This may happen, however, and when it does, you will have to decide what to do with the excess profit. Do you save it? Invest it back into the business? Or do you invest the profit in other ways and work to grow … Continue reading →

How Much of Your Own Money Should You Invest?

One of the big realities of starting a home-based business is that, like any small business, we have to invest time and money at the onset in order to get the enterprise off the ground. At the planning stages, therefore, it is important to calculate your initial expenses and try to figure out how much of your own money you are able to invest in order to get the business started… If you have ever done any research on purchasing a franchise or an existing business, you will know that they all have different “up front” capital investment requirements. Some … Continue reading →

More About the Business of Insurance.

In the first Blog about The Business of Insurance I covered the basic outline of what the Insurance Industry is about. In this Blog I want to talk about what an Insurance Company does to determine premium and what they do with the premiums we pay. An insurance company accepts the risks associated with the contract policy a customer requests. Based on the information a customer provides, and the underwriting conditions a premium is established for the cost of the contract policy. When the insurance policy is issued a declaration will be sent to the customer. In the declaration the … Continue reading →

Roth IRA: Overview

In 1997 the Taxpayer Relief Act was passed and The Roth Individual Retirement Account (Roth IRA) was created and named in honor of the late Senator William V. Roth, Jr. Roth IRAs are Individual Retirement Accounts opened and managed through a stockbroker, mutual fund, or other provider of investment accounts. A Roth IRA offers an opportunity to invest earnings and avoid taxation. The disadvantage is that taxpayers cannot take a deduction for contributions to the Roth IRA. Some of the Key Points with a Roth IRA include: A tax structure unlike other IRAs: contributions are post-tax, but growth is tax-free; … Continue reading →

Pension Protection Act (PPA) of 2006

President George W. Bush signed into law The Pension Protection Act (PPA) on August. 17, 2006. The PPA has some real implications addressing plan sponsors, financial professionals, and investment participants. The intent of this bill is to strengthen workers’ retirement investments by: Changing defined benefit plan funding rules, Establishing a legitimate cash balance plans, Promoting the automatic enrollment in 401(k) plans, Establishing the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) as a permanent improvement, and Allowing the creation of a combination defined benefit and 401(k) plan, known as the DB (k). The bill extends the law and allows the … Continue reading →

Investment: Your Home

Is your home your greatest investment? For some people it is while for others it is more accurately summed up as their most costly investment. In some cases, people purchase more home than they can realistically afford, and they spend decades working hard just to pay the interest. Some people don’t even live long enough to pay off their homes, especially if the spend beyond their means in other areas as well. A home should be a shelter and a sanctuary, but it can also be a good investment. Purchasing a home that is in good condition at below the … Continue reading →