The recent hurricanes have dealt low blows all across the southern U.S. along with many of the beautiful Caribbean islands. Just last week millions of Floridians, Georgians, and Carolinians evacuated ahead of the massive storm Hurricane Irma. Just prior to her brutality, Houstonians and others along the coast of Texas broke down as Hurricane Harvey crippled the nation’s 4th largest city. Now, even today, we watch and wait to behold the devastation Hurricane Maria leaves in her wake, as she tramples the U.S. Virgin island of St. Croix. Natural disasters are horrendous. They not only bring about physical devastation but a hurricane of emotions with them as well. Knowing what to do after the storm is just as important as prepping for it too. Now that the storm passed, what should you do once you return home? Well, if you come back to your house and find everything in disarray, there […]
Much has been said about the ever contentious battle over the debt ceiling. Yet, you might be asking what the big deal is? To understand the importance of the debt ceiling, you need to understand what it is, to begin with. The debt ceiling limits the amount of money the country can borrow. Created in 1917 during World War I to keep the President in check fiscally, it has obviously since continued on an upward path. The reason it is so key to our economy is the U.S. runs the risk of defaulting on their debts to foreign entities if it is not raised. In the past few days, President Trump struck a deal with Democrats extending the looming deadline for another three months. So, for now, all is quiet on the home front. However, the topic will become a hotly contested debate again in December. The catastrophic consequences of Congress […]
As a financial planner in Knoxville, Tennessee, I knew the first Monday in September didn’t bring just Labor Day, it also meant Boomsday. For 28 years in our quaint little city nestled at the foot of the Smoky Mountains, fireworks burst in the air along the banks of the Tennessee River. While the rest of the country eagerly awaited a three-day weekend, Knoxvillans and those in surrounding towns anticipated the massive fireworks display that many considered the unofficial kickoff to fall. Now that the smoke has cleared and Boomsday has since met its demise, Labor Day in our East Tennessee home still conjures up excitement and emotions of gratitude. The annual holiday pays tribute to the contributions employees across the nation make to strengthening our country each and every day. The History of Labor Day For more than 120 years, hard working Americans have celebrated the holiday thanks to the […]
If you’re a business owner, you’ve likely heard the term EBITDA tossed around before. EBITDA is an acronym which stands for Earnings Before Interest Taxes Depreciation and Amortization. Recently, a client approached me wanting to know what their EBITDA was and how should it be used for valuation purposes? So let’s break that down a little more. Recasting Financial Statements So, when we talk about EBITDA, it’s important to realize that your profit and loss (P&L) statement may or may not be out of whack. In order to find the accurate valuation of your business, you need a normalized EBITDA. That’s where recasting financial statements come in. It is figuring out the true benefit a business owner receives from the business. It is used in calculating the value your business and is often referred to as recasting or normalizing the financial statements. In the past, I have seen business owners […]
Somone recently asked me, “What is volatility?” I explained it is simply the rapid rise or fall in price. The last little bit, the stock market has been steady and boring, nothing special or crazy. It hasn’t really been in the news lately and because of that, I’d say we as investors are a bit lackadaisical at this point. This isn’t going to happen forever though. While we have smooth sailing right now, that won’t always be the case. Volatility in the markets will come because that’s part of investing. A recent fishing trip reminded me these five lessons when it comes to dealing with a volatile market place. Go fishing!—While we are seeing smooth seas right now, rough choppy waters are ahead but don’t be afraid to invest because of that. If you do you may miss out on some of the best returns you’ll ever see. We don’t know […]
When it comes to philanthropic giving business owners are often at the top of the list. Giving allows them to experience personal satisfaction as well as shelter some of their proceeds from Uncle Sam. Not only do they give on a regular basis, but many of my clients want to give a portion of their proceeds to their favorite charity upon the sale of their business. These donors/business owners are firm believers that they need to give some of the proceeds to a charity. Those charities run the gamut. Some are based on religious beliefs, while others are merely philanthropic desires.