Posts Tagged ‘contingency’
What you’re really worth…
The biggest asset to your small business is YOU.
Yep, you may have fancy machines or a hundred thousand dollars in inventory but if you won the lottery tomorrow or got hit by a bus, your small business would suffer in a serious way.
Don’t put on the blinders and pretend I’m wrong or that it won’t happen. Plan for it and then assume the best.
That means a lot of things – it means you should have thought about (at least) the following:
> Health/Life/Disability Insurance – I don’t care how young, invincible or low maintenance you are. You should insure everything of value associated with your business. (Refer to first line of post again)
> Personal Tax Protection – means you have good records or a good accountant and some form of limited liability company. Are you a sole properietor? Uncle Sam can EAT you for BREAKFAST. Read up on getting your LLC.
> A contingency plan – if you couldn’t sit in your -chair- tomorrow. Who would? Would they know what the pressing 
issues are? Where to make bank deposits? Have all the necessary passwords? Test your your plan - go on vacation to an unreachable place for a week. Wait, what? You haven’t had a real vacation since you started your business. Time to get planning…..
> Good Personal Finances and Credit – Charles Schwab sent out this great little year end checklist - gives you smart ways to make sure you’re on track. Don’t miss out on tax advantages this year—check off as many items as you can before December 31, 2009.
1. Manage your investments for potential tax savings
It’s smart to think ahead—especially if your investments have fallen behind. If you decide to sell losing assets before year-end, you can use those capital losses to offset taxable capital gains. For more tax-smart ideas, visit our tax management center.
2. Review your portfolio
Major market swings can cause your investment allocations to shift. By rebalancing, you can restore your target allocation, manage investment risk, and keep your portfolio in good health. Call Schwab at 800-790-3810 to schedule a no-cost investment consultation.
3. Maximize your retirement plan contributions
If you haven’t reached this year’s contribution limit for your retirement plan, kick the funding up a notch for the rest of the year and plan to maintain that contribution in 2010. The sooner you maximize your contributions, the more time your investments have to benefit from potential long-term growth.
4. Make the most of your philanthropy
Planning to make a contribution to a charitable organization? Donate before December 31 so you can write it off on this year’s taxes. For a tax-smart approach to giving, a donor-advised fund like Schwab Charitable™ can give you immediate tax benefits, tax-free potential growth, and a possible way to avoid capital gains taxes.1
5. Get smart with college savings plans
You can take advantage of potential tax benefits if you open or contribute to your kids’ or grandkids’ college savings plan, such as a 529 plan, before the year ends. Open a Schwab 529 account here.
6. Spend your flexible spending account
If you’ve covered the basics but still have some remaining funds, check your plan’s list of eligible expenses for last-minute ideas. Make sure you use the money that’s left in your account by the end of the year, or you’ll lose it. It’s also enrollment time for 2010 FSAs, so consider whether you’ve spent all your funds in the past and make any necessary adjustments.
Tick tock – the new fiscal year is almost upon us! Best wishes for the holiday season.
