Archive for the ‘ Uncategorized ’ Category

Why Is Business Owner Insurance a Good Idea? Presented by Advanced Financial Concepts

Business owners face a host of potential pitfalls, from property loss and damage to personal liability associated with accidents. While separate, individual policies can cover each of these potential incidents, an umbrella insurance plan for business owners covers a combination of these occurrences, providing a more efficient, cost-effective way for a business owner to protect his or her investment.

Another advantage of a business owner insurance policy is its flexibility. An owner can discuss the business’ unique needs and circumstances with an agent and craft a plan that contains only the coverage necessary. However, it’s often advisable for a business owner to contact an insurance underwriter for an evaluation of the business to be certain that the owner doesn’t unintentionally neglect necessary coverage. If properly planned, a business owner policy is a wise financial strategy.

About Advanced Financial Concepts: Owned and operated in Houston by Justin F. Shaw, Advanced Financial Concepts offers financial advice and service to individuals, families, and business owners.


Advanced Financial Concepts: Tax-deferred Retirement Planning

Guided by Justin F. Shaw, Houston-based Advanced Financial Concepts (AFC) provides clients with wealth management solutions that emphasize steady retirement incomes and minimal expenses. Taxes are a key concern for many in planning for retirement, particularly those with employer-sponsored retirement funds such as IRAs.

The majority of IRA plans function on a tax-deferred basis, with taxes postponed until after retirement. When distributions are taken on retirement accounts (typically after age 59½) they are thus viewed by the IRS as taxable income. In cases where funds are withdrawn early, a 10 percent IRS penalty is applicable, making it sensible to leave retirement funds intact until retirement. Some employees choose to make nondeductible contributions into IRA accounts and these are calculated on a “cost basis.” The end result is that this portion of IRA funds is not considered taxable when later withdrawn.

Justin F. Shaw and the Advanced Financial Concepts team stress that, after age 70½, traditional IRAs and Roth 403(b) and 401(k) plans are subject to required annual minimum distributions.

Withdrawing Money Early from Tax-Deferred Investments: An Interview with Advanced Financial Concepts (Part 2 of 2)

In the first part of our interview with Justin F. Shaw of Houston-based Advanced Financial Concepts, we discussed the retirement accounts to which the IRS applies tax penalties and the existence of circumstances in which those penalties do not apply. In the second half of the interview, our source went a little further into what those circumstances are:

Q: So it is possible to take an early distribution from an IRA without paying a penalty?

A: Only in certain situations. For instance, if an IRA owner dies, his or her beneficiaries can take distributions without penalties. Part of the purchase of a first home and some medical expenses can also be paid for from IRAs without penalties.

Q: And how about from employer-sponsored retirement plans?

A: Many of the same conditions apply, but investors in employer-sponsored plans can also sometimes take penalty-free distributions if they no longer work for the employer, received excess contributions, or made excess elective deferrals.

That wraps up our interview. As always, talk to a qualified financial professional before making any investment decisions.