Term life insurance is better than whole life insurance.  Any argument made in the case for whole life is easily rebutted in favor of term life.  This is precisely what we will examine here.  Term life is better than whole life, but the incentive structure for insurance agents is to sell whole life whenever possible. ...

People get excited when they find out they can hold real estate in their Solo 401k.  You can combine the benefits of tax-advantaged accounts along with real estate, but you must understand the whole story before you commit.  Real estate in your Solo 401k comes with additional risks and pitfalls.  Take some time to understand...

If you want to open a Solo 401k you must be certain that you are not violating the controlled group rule. A Solo 401k is a retirement plan for self-employed individuals or small business owners with no full-time employees other than themselves or their spouses. However, not everyone who is self-employed or owns a small...

You probably hear about S-Corp tax savings all the time, as a solopreneur.  Has anyone ever broken it down for you?  Look no further.  Here is how S-Corp owners pay less tax than sole proprietors. It most comes down to self-employment taxes, although there are some opportunities for tax savings with Solo 401k plans.  In...

You have probably heard that having an S-Corp or an LLC taxed as an S-Corp is superior to a sole proprietorship.  Usually, the supporting example is related to self-employment tax and limited liability.  There is also one other element that is rarely discussed: retirement plan efficiency. An S-Corp Solo 401k is much more efficient than...

The advantages of hourly financial planning are becoming apparent to more people.  As more financial advisors slowly adopt this fee structure it is important to examine those advantages and how they serve clients better.  Let’s take a look at how hourly planning financial works, three important advantages, and the best candidates for hourly planning. What...

Some people get this wacky idea to pay down their mortgage faster than their original schedule of payments.  This is a bad plan in many cases!  Why? Let’s assume some variables first: Original mortgage balance – $500,000 Remaining mortgage balance – $478,804 Interest rate – 3% Monthly payment – $2,108.02 Payments made – 24 Payments...

The Solo 401k loan is a very important benefit of a solopreneur’s retirement plan.  IRAs (even SEP IRAs) do not permit loans!  It’s important to follow the rules if you ever need to use this benefit.  In this post, we will explore the specific benefits, pitfalls, and rules of the Solo 401k loan.  By the...

How your financial advisor is paid is one of the most important things to know about them.  It’s important to know not just to know the cost, but to understand how they are incentivized to give to advice.  In this article you will first learn the three ways nearly all advisors can be paid.  Then...

When you choose to work with a financial advisor you make a HUGE decision about the direction of your life.  You must be careful and thoughtful when you make this decision.  There are endless lists of questions you could ask, but this would take a considerable amount of time.  Fortunately, you can quickly weed out...