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Thursday, October 25, 2012

New Discount Program for Anthem Members



 
Starting November 1, 2012, all members will receive $20 off the price of their contacts or glasses when they spend a minimum of $100. Plus, free shipping. Best of all, members don't need to have vision coverage to take advantage of this discount.

Friday, October 19, 2012

Business Owners and Retirement Planning


As a business owner, you have invested a great deal of time and effort into building your company over the years. You know the amount of planning needed to maintain daily operations and grow your business. Now, you may be ready for retirement. But, the planning does not end. What you do next, and how you navigate potential tax issues and regulatory pitfalls, can make a big difference in the long-term success of your retirement.

Here are some of the more "taxing" concerns you may face associated with retirement:

Early retirement and early withdrawals. If you take withdrawals from your qualified retirement plan before age 59½, you may be subject to a 10% Federal income tax penalty. There are certain instances in which early withdrawals may be taken without penalty, such as death, disability, or substantially equal periodic payments. Otherwise, at 10%, the penalty tax can be significant, so it is important to plan accordingly.

Waiting too long. You must begin taking required minimum distributions (RMDs) from your traditional Individual Retirement Account (IRA) by April 1st of the year after the year in which you reach age 70½. If you fail to do so or do not withdraw enough, you will be subject to a 50% penalty tax, which will be incurred on the difference between your RMD and the actual withdrawal amount. Your RMD amount is based on the previous December 31st balance, divided by your life expectancy (or the joint life expectancy of you and your spouse, if applicable). man on phone

Working while receiving Social Security. If you receive Social Security and also continue to work, a portion of your benefits may be taxable. For more information, refer to Internal Revenue Service (IRS) Publication 915, Social Security and Equivalent Railroad Retirement Benefits, or consult with your tax professional.

You may be subject to the "give-back" if you are under full retirement age (based on the year of your birth), receive Social Security benefits, and earn income. The law requires a give-back of $1 for every $2 earned in excess of $14,640 in 2012 for those individuals between the ages of 62 and full retirement age who are receiving a reduced Social Security benefit.

For the year in which an individual attains full retirement age, the give-back is $1 for every $3 in excess of $38,880 for 2012. Starting in the month in which the individual attains full retirement age, the give-back is eliminated. If you are under full retirement age and thinking about taking Social Security benefits while still working, it is important to understand the potential tax consequences of doing so.

Where you live in retirement matters. Each state has its own rules on income, estate, sales, and property taxation. Your tax and legal advisors can help you assess the potential tax advantages and disadvantages of your retirement destination.

Planning Continues through Retirement

Your personal retirement plan probably involved building a nest egg with regular savings over decades. Now that you are preparing for retirement, continue with your planning. Your keen business sense will serve you well as you near retirement and enjoy your "golden years." Be sure to consult with your professional advisors for specific guidance.


Building the Value of Your Business


Caught up in the day-to-day operations of your business, you may not be thinking about how much your company could be worth when the time comes for a transition. But the choices you make now, both large and small, can add to or detract from the future value of the company.

There are many ways for a company to grow, including entering new markets, developing new products, acquiring complementary businesses, hiring more employees, and increasing sales and marketing expenditures. You can grow the business rapidly by tapping into outside financing or more slowly by using the company's own revenue. With so many strategies to consider, you may want to develop a long-term plan to guide the growth of your business.

Your decision regarding the ultimate disposition of the company may influence many aspects of your current business strategies, including your form of business ownership. You may want to consider a C corporation structure for a business that may go public or an S corporation structure if a private sale is planned. Be sure to consult with your tax and legal advisors about the implications of each form of business ownership.

Transferable Assets


To begin, work on building and maintaining your company's transferable assets. These may include tangibles like property and equipment, as well as intangibles, including a customer base, brand recognition, and business processes. Depending on the type of business you operate, your intangible assets, such as copyrights or trademarks, proprietary lists of customers or prospects, and long-term contracts, may have substantial value at the time of transition. An attractive location can also add on value beyond an owner's equity.

Companies also derive intangible benefits from a strong management team with the knowledge and connections required to maintain the business after the owner retires. In many cases, having a skilled and loyal workforce may also be considered a transferable asset in a sale.

Financial Performance


When growing your business, strive to establish a self-sustaining enterprise with steady revenue growth. The financial performance of a company is often measured by its free cash flow, or the cash that it generates before interest, taxes, depreciation, and amortization, less capital expenditures. In assessing the value of the company, a buyer may, for example, project a com-pany's earnings over the next five years based on the current cash flow. This projection will take into account any outstanding debt, as well as whether revenue growth and margins demonstrate a history of consistent growth.group at table

Businesses are often more efficient when they focus on their core competencies, rather than diversifying too broadly. So, if your company has product lines or offers services not closely aligned with the firm's core business, consider whether these areas are profitable or represent a drag on the company's resources. Selling off non-core assets may provide funds to help pay off debt.

You may also want to restructure agreements or contracts that may be objectionable to a potential buyer, such as a long-term lease, licensing contracts, employment contracts, and loan agreements. Long-term leases may be an asset provided the terms are favorable, the location is suitable, and the size is right. If, however, the company is likely to outgrow its facilities before the lease is up, or if potential buyers want to move the firm's operations, a short-term lease may be more appropriate. Or, you may seek to formalize certain verbal agreements to ensure the company's relationships with key customers or suppliers continue after the transition.

For a detailed analysis of your company's value, contact a professional business appraiser who is familiar with your industry. Even if you have no immediate plans to leave the company, an estimate can help you identify ways to maximize the value of the business in preparation for a future exit strategy.

Read other articles in: Business Edge Newsletter:

Wednesday, October 03, 2012

More than 15 million Americans are severely obese, data show


About 6.6%, or 15.5 million, U.S. adults were severely obese in 2010, compared with 3.9% in 2000, according to RAND Corp. data published in the International Journal of Obesity. Data showed the rate of severe obesity -- which is a BMI of 40 or higher or roughly being 100 pounds or more over a healthy weight -- was 50% higher in women than in men and twice as high for blacks as for Hispanics and whites. USA TODAY (10/1)

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