July 16, 2019
Captive vs Independent Insurance Agent Save You Money

Captive vs Independent Insurance Agent – Does One Save You Money?

Insurance is a necessity of life, but it can feel burdensome to business owners. Not only do they have to pay high premiums for good coverage, they have to carry multiple personal and business policies. If you’re like most business owners I know, you feel “insurance poor.” However, if you understand the distinction between a captive vs independent insurance agent, you can actually reduce the cost of your insurance.
July 11, 2019

What Type of Mortgage Should a Business Owner Have on a House?

Since becoming a CERTIFIED FINANCIAL PLANNER™ in 2006, I’ve worked with hundreds, possibly thousands, of business owners. Eventually, their questions start to sound familiar, especially when they start asking me about their home mortgages. I’ve heard, “Justin, how much should I put down on my house?”. Others ask, “Hey Justin, should I finance 100% of my mortgage or not?”. Similarly, other clients ask, “Justin, should I move the equity from my current house to my next house?”, or “Is it better for me to take out a 15-year mortgage or a 30-year mortgage?”. Whether my clients are asking me about ARM loans, balloon notes, down payments, mortgage terms or the like, they’re all asking me the same basic question. What type of mortgage should a business owner have on a house?
July 9, 2019

How Much Should a Business Owner Pay for a House?

Whenever I work with business owners, they often ask me, “Justin, how big of a house should I buy?” In other words, they’re asking me how much money they should pay for a house. To answer their question, I quote famed American author and business theorist Dr. Thomas Stanley. In his book Stop Acting Rich, Stanley says, “Nothing has a greater impact on your wealth and your consumption than your choice of house and neighborhood.” He goes on to say, “If you live in a high-priced home in an exclusive community, you will spend more than you should and your ability to save and build wealth will be compromised…” Ultimately, the answer to “How much should a business owner pay for a house?” boils down to the question, “What do you want to accomplish in life?”
July 2, 2019

What’s the Cheapest Way to Buy a New Car?

Last year, I needed to purchase a new-to-me vehicle. However, I don’t believe in going into debt, and I firmly believe in buying used cars. In fact, I’ve bought used cars my entire life, and I’ve never had a car payment. When I started doing my research, though, I found that I would pay (at this time in the economic cycle) essentially the same price (over the life of the vehicle) for a used car as I would a new car. Ultimately, I decided to buy a new Ford F150 truck. Thus, I began my quest to find the cheapest way to buy a new car.
June 27, 2019

Leasing vs Buying a Car – A Comprehensive List of the Pros & Cons

If you drive your personal vehicle for business purposes, you can claim tax deductions. I addressed that in my last article when I talked about whether you should claim the standard mileage rate or actual expenses on your taxes. Yet, leasing vs buying a car may make a difference to you as a business owner, too. Does it make more sense for you to “rent” a car or own it? Let’s weigh the pros and cons.
June 25, 2019

Standard Mileage vs. Actual Expenses: Which Should You Choose?

If you drive a personal vehicle for business use, you can choose to take the standard mileage rate deduction or you can deduct your actual vehicle expenses. Yet, which one is better? As with most things related to taxes, it’s going to depend. Therefore, let’s do an analysis. Which should a business owner choose? Standard mileage vs. actual expenses.