Posted on Thu, Mar 04, 2010 @ 03:40 PM
Does rushing taxes ever make sense? Maybe...
Under a special provision from President Obama's 2009 financial relief package, anyone who owns a traditional IRA can choose to convert it to a Roth IRA in 2010.
Why would you consider this?
Any money in a Roth, unlike a traditional IRA, is withdrawn without paying taxes whether it is you who withdraws the money or your heirs...
You are also not required to make mandatory withdrawals as you are with a traditional IRA...
BUT, there is a price tag.
Since Roth's are funded with after-tax money, when you convert your traditional IRA, you will need to pay income tax on the whole amount.
So why 2010?
There are two relief provisions in the law:
- There is no income limit on converting. Generally, there are income restrictions on opening, funding or converting into a Roth.
- You can spread out the income tax from converting over two tax years (2011 and 2012). This is only allowed for a 2010 conversion.
So does it make sense for you to convert?
Generally speaking, the younger you are the greater the advantage...
However, there are many cases when older people could benefit greatly (and their beneficiaries) from converting now.
There are enough moving parts in this calculation that it is worth consulting your retirement planner to look at all the possibilities. If you're considering contacting a professional to help plan your retirement but don't know who to call, let us know and we're more than happy to make a recommendation for you.
All of us here at Hill & Hamilton wish you a profitable year.
Posted on Fri, Feb 26, 2010 @ 12:33 PM
The US Post Office isn't the only business that has to operate regardless of the weather outside...
So are you ready to keep your business going when employees miss work due to the winter weather?
You can be if you adopt what many small businesses already have...an "Inclement Weather Policy" for employees!
Similar to a sick day policy or even vacation leave, the inclement weather policy serves as a guide for pay, coverage of work duties and rules when an employee cannot make it to work because of weather.
So how do you begin to put this policy together?
Well, the first task is to define the weather. You must separate normal weather from extreme conditions such as snow emergencies or tornadoes, which would close the office entirely and probably fit into some emergency plans you already have...
The next step is to come up with a procedure for employees to follow if they are delayed or kept from the office due to snow, sleet or fire. Generally, this will revolve around details concerning contact information such as:
- Who they contact
- How they contact them (phone, email, texting, etc..)
- Timing of the contact
Next, you will need to have provisions for what the employee will communicate:
- Nature of the inclement weather
- Expected delays
- Phone number for employee
In-house, you will need to have a procedure to follow: who is the contact person, who will schedule employees to cover, and what policies will be adopted regarding how compensation will be handled for someone out due to inclement weather?
Many small businesses use a time bank similar to sick days. For example, employees are allotted a day per year for weather delays and these can be donated to other employees in a bank in case of major emergencies.
Do you have an Inclement Weather Policy for your business? If not, today is a great time to make it happen!
All of us here at Hill & Hamilton wish you warm and sunny days throughout 2010.
Photo by woodleywonderworks
Posted on Fri, Feb 19, 2010 @ 08:25 AM
Hiring can be a pain. There's no other way to put it. But we all have to do it at some point.
To help make it a little easier for you to seal the deal, here are a few tips for the next time you find yourself in the middle of the hiring process:
Know the needs of the position - Before you post an ad in the newspaper or begin making calls to local headhunters, sit down and write out exactly what you are looking for in someone to fill the position. This includes personality traits, skills, previous job experience and education experience.
Don't skimp on the number of candidates - Although the interview process is exhausting and overwhelming, you will only be sure you have the person best suited for the job by interviewing and eliminating a substantial number of applicants. If not enough people apply for the position, expand your resources for getting the word out regarding the open position.
Take your time during the interview process - Often first impressions aren't the correct impressions, so be sure you have interviewed your prospective employees at least twice. Bring other employees in on the interview if you want to gain a fresh perspective.
Don't be afraid to check references - Let the candidate know that you will definitely be checking references. This step helps you verify that your candidates have the experience and education that qualifies them for the job, as well that they have been a good employee in the past.
Because the job interview process is time consuming, it is essential that you know you have the right person in the job to help avoid having to repeat the process along with having to terminate an employee because they don't meet the qualifications for the position.
Obviously, hiring the best candidate for the position has a positive impact on your business but it also reduces the chances of an employment practices related claim, such as wrongful termination, from arising.
Photo by Andyrob
Posted on Thu, Feb 11, 2010 @ 02:46 PM
Back in 2009, the State of Ohio began mandating any type of off-road vehicle to be registered with the Ohio Bureau of Motor Vehicles (BMV) before operating these vehicles on an Ohio roadway. These off-road type vehicles are now required to display a license plate and validation sticker like other vehicles. Examples of these off-road vehicles include:
- Golf Carts
- ATV's
- Snowmobiles
- Off-highway motorcycles
This change also can have an impact on how these types of vehicles are covered from an insurance standpoint. Prior to this law, liability coverage to protect you while operating these off-road vehicles could be covered under a standard homeowners policy. Now, in many situations, coverage under your homeowners policy is no longer adequate. Instead, you may need to consider alternative coverage options such as listing the off-road vehicle on an auto policy or a separate ATV policy.
There are provisions under this new law which exempts certain types of vehicles from registration:
- When the off-road vehicle is operated exclusively on the land you own, but this exception only applies to snowmobiles and off-highway motorcycles.
- When the off-road vehicle is used exclusively on a farm.
Of course, violation of this new law results in a fine of between $50 and $100 but this could pale in comparison to the damages you might suffer if you're not properly insured. The legal language can be reviewed in its entirety by visiting this page.
Bottom line is, if you own any type of off-road vehicle, please call us to discuss whether your current insurance needs to be amended to properly protect you while you're enjoying your ATV, snowmobile and other off-road vehicles.
Photo by jmwests
Posted on Fri, Feb 05, 2010 @ 01:06 PM
People everywhere are making an effort to "go green" or find ways in which to conserve the earth's precious resources. Going green does more than just conserve resources; it can also be healthy for your pocket book and at H&H we're always seeking ways we can use green technology to save money. With that in mind, we thought we would share some simple tips for helping you "go green" this spring.
Switching your light bulbs to fluorescent Energy Star light bulbs can save $30 or more in electricity bills for the life of each light bulb. Making the transition also helps in the prevention of more greenhouse gases. These energy efficient bulbs are slightly more expensive up front, but can save a bundle in the long run.
Recycling may seem second nature by now, but you'd be amazed at how many people don't recycle! Almost all waste management companies provide recycle bins for free or a nominal fee. Most will take household plastics, newspapers and cardboard containers and boxes, as well as aluminum and glass products. Recycling is probably the easiest and most convenient way of doing your part for the environment.
Each year it is estimated that nearly 500 billion plastic bags are used worldwide! By switching to a reusable shopping bag you are saving money and reducing the impact on the environment. Reusable bags are inexpensive and come in a variety of shapes and sizes.
Although it may seem like a lot of time and effort to transfer all of your bills to paperless online billing, many banks and financial institutions have programs which allow you to pay bills right from your checking account. You'll save on the cost of postage and save paper! And once the system is set up you'll save time too.
These are just a few of the many ways you can "go green". For more tips on going green, check out the Environmental Protection Agency's website.
Photo by Bludgeoner86
Posted on Fri, Jan 29, 2010 @ 12:59 PM
As the temperatures continue to drop, it is time to consider changing your tires. If you don't have snow tires, you may want to consider them this year. As the temperature falls the traction on all season tires begins to reduce. All season tires work best most of the year in Ohio, but once the temperature starts falling as it has been the past few weeks, all weather tires begin to loose grip even on dry cold roads. Your best protection for the winter is to invest in a set of snow tires for your vehicle. Snow tires will improve the distance needed for breaking in cold, winter road conditions.
If you're considering purchasing snow tires but don't know where to go, give us a call. We can give you a few ideas on snow tires as well as where to take your vehicle to have them installed.
We want you to be safe this winter and we hope this tip helps keep you and your family from experiencing an accident.
Photo by wheany
Posted on Sat, Jan 23, 2010 @ 08:00 AM
We get asked quite often for tips on how to reduce the costs of life insurance so we decided to put this together... hopefully it helps:
Make a Lifestyle Change - Nothing will decrease your policy bill like a lifestyle change! Rates are lower for people who don't take as many risks... so if you want to reduce rates, try cutting back on the sky diving and smoking.
Only Buy What You Need - Consider taking a little time to determine whether your policy currently meets your needs. Although you don't want to buy too little insurance, buying more than you need can be unnecessarily expensive.
Clean Up Your Credit - People with poor credit often get denied life insurance or are put into special programs with high premiums. Clean up your credit and go back to your agent to ask for a review of your credit to lower your rates.
Consider a Rider Policy - Instead of paying large premiums by changing around your policy to include lots of extensions, consider adding on a rider policy to meet a few additional needs. This may be more cost effective than going through the process of changing your entire policy and trying to rework it to fit all of your needs perfectly.
If you have questions regarding other ways to save money on your life insurance policy, feel free to contact us at any time.
Photo by divemasterking2000
Posted on Fri, Jan 15, 2010 @ 03:13 PM
Employment Practices Liability Insurance (EPLI) has been garnering serious attention in the past few years, and for good reason...
According to the Society for Human Resource Management, three out of five companies are sued by former employees every year. Other research indicates:
That the number of employment discrimination cases filed in Federal Court has doubled since 1992
Of all cases tried, 56% result in verdicts for the employee
The average plaintiff's verdict in employment law cases exceeds $250,000
That information alone is enough to scare many business owners into making some serious changes in how they do business. It's definitely time to investigate what changes business owners should consider making. If you were sued by an employee, what would happen? Even if you have Employment Practices Liability Insurance (EPLI), you'd still be out your deductible and, more importantly, you'd be distracted from your business to fight a lawsuit.
Here are some of the most common mistakes that lead to employee lawsuits. Are you making them?
Hiring the wrong person. Hiring is hard work and very time-consuming. The tendency is to short-cut a thorough evaluation process to get it over with. But hiring wrong means firing soon; and that means an exposure to a lawsuit.
Poor (or absent) training of supervisors and managers. Managers can have poor communication skills or be ignorant of laws governing employee treatment. If a manager discriminates against an employee, the company will be held liable.
Not asking if there's a problem. Often workplace victims and witnesses are afraid to speak up. So they use the legal system, instead of confronting management. By asking employees if there are any problems, you can solve them before they result in lawsuits.
Ignoring first signs. It's better to risk the embarrassment of asking premature questions than to suffer a lawsuit when it's too late. If you suspect or sense a problem, investigate - keep it private to those involved, but be open about your reasons.
Failing to get help. Get legal and/or human resources advice when you have a situation you're not sure about. Better to be safe than sorry.
Lawsuits can be drawn out, expensive, and distracting. If you don't have EPLI it's time to consider why you might need it. We hope you never have to face an employment practices lawsuit; however, taking the correct measures now could save you a bundle in the future. Give us a call so we can help you protect your business.
Photo by KeithBurtis
Posted on Fri, Jan 08, 2010 @ 12:24 PM
As you can probably imagine, we get calls pretty frequently asking for "end of life" financial advice. Recently, it had us thinking, "How prepared are people for the inevitable?"
We know this might not be the most comfortable topic, but it's important. How will those you leave behind handle costly funeral expenses? Funeral or burial insurance, technically known as pre-need insurance, is becoming more and more popular. Most life insurance companies and agents sell this insurance as a type of life insurance.
There are actually two different types of funeral insurance plans. The first is a single-premium policy, in which you pay for the entire benefit upfront and have full coverage from this point on. There is also a graded death benefit, in which the amount of coverage increases over time. This means it may start at 20 percent the first year and increase to 100 percent by the fifth year.
All policies will detail exactly what they cover, but for the most part, these policies will cover some combination or most of the following:
- A burial plot and care by the grave site
- Urn and Cremation
- Funeral flower arrangements
- Casket
- Grave marker
- Embalming
- Hearse and transportation
We hope this information helps. If you know of someone else it might help, please feel free to pass it on.
Photo by sridgway
Posted on Wed, Dec 30, 2009 @ 12:51 PM
Too often, people are surprised to learn their jewelry, especially their expensive jewelry, is not properly insured.
Many homeowners assume that their jewelry is adequately covered under their homeowner's insurance but you may be surprised to learn the facts...
While homeowner's policies do cover jewelry, this insurance is usually subject to a much lower limit than the overall contents coverage. This reduced limit is called a "sublimit". A typical sublimit is $1,500 for loss by theft of jewelry, watches and precious and semiprecious stones.
If your jewelry is worth more than the sublimit in your homeowner's policy, you should consider purchasing specific insurance to cover it.
The following is a good process to follow:
- Schedule an appointment with your agent to review your jewelry coverage. Bring as much information about your jewelry portfolio as possible, including any appraisals.
- If your high-valued jewelry has not been appraised within the last 3 years, consider obtaining an appraisal from a reputable jeweler. Insurance companies often require more expensive jewelry to be appraised by a graduate of the Gemological Institute of America (GIA). The Institute's G.G., G.J. or A.J.P. designations at the end of an individual's name indicate that the jeweler has achieved a high level of professionalism with an education backed by a respected nonprofit organization.
- Make sure the appraisal has a description of the diamond's four C's:
1. Carat - The "carat" refers to the weight of the diamond.
2. Cut - The quality of the "cut" of the diamond results from the way light enters the stone and is reflected back. "Cut" is also used to refer to the diamond's shape, such as round or pear-shaped.
3. Clarity - The "clarity" refers to the prevalence of minor spots, lines, bubbles, or other natural imperfections within the diamond.
4. Color - The "color" denotes the tint a diamond may possess.
- Remember that the better the appraisal, the fewer problems you will encounter with the insurer if you ever have to make a claim.
- Purchase jewelry insurance (insurance lingo calls this inland marine coverage) that can be added via an endorsement onto your homeowner's policy. This endorsement (also available as a separate policy) provides much broader coverage than the limited protection found on the un-endorsed homeowners' policy.
- Consider keeping any valuable jewelry you rarely wear in a safety deposit box at your bank.
- Review your jewelry protection with your independent insurance agent at least every 2 years or whenever you sell or purchase high-value jewelry.
So, if you received jewelry this Christmas and want to protect it from theft and damage, let us know. And, if you just realized the coverage in your homeowners policy is not enough to cover your jewelry, give us a call and we can help you make sure you get the coverage you want.
Photo by stephend9