Articles

The issue of too much money in one investment

Some households find themselves with a large investment in one single stock. That can happen when a great investment takes off (think: Apple or Amazon). But concentrated equity positions can also occur through employee compensation arrangements or inheritance. This can be both good fortune and significant risk. Past performance of a stock is no guarantee of future results, and if that one stock were to tumble, it could have serious repercussions for your financial wellbeing. If

Your 401(k) limits may be much higher than you think

If you participate in an employer-sponsored 401(k) plan, you can contribute up to $19,500 to your retirement in 2021. But did you know some plans allow you to contribute up to $38,500 more? If you’re looking for increased savings options, find out if your existing plan allows additional after-tax 401(k) contributions. In 2021, after-tax 401(k)s have a total plan maximum of $58,000, including traditional contributions, employer contributions and after-tax contributions. As is true for traditional 401(k)s, these limits are higher ($64,500) if you’re age 50

What sort of licensing do you need in Massachusetts before renting out a residential property? What basic regulations do rental properties need to follow?

Who? Me? A Landlord? Real estate can be the key to financial independence and success. While TV might have popularized the “flipper” model of real estate transaction, in which infusions of cash and elbow grease transform run-down properties into glossy sources of resale profit, the old-fashioned practice of landlording is still an attainable, affordable, and profitable. To be a landlord (or landlady, though the law uses the generic term landlord to refer to property owners), you

Protecting trade secrets when your team works from home

Any proprietary information that belongs to your business might be a “trade secret” or protected confidential information. Trade secrets are a type of “intellectual property” owned by your business and they are protected by law. You can require people who work for you to keep trade secrets confidential. Under federal law, a trade secret is defined as information from which your business gains “independent economic value” and which is not generally known to others. Also, you,

Tips for executing agreements electronically

Electronic execution of agreements is quickly becoming more commonplace in most businesses. But how can you obtain authorized e-signatures and be sure it is a sound agreement? Contract formation is generally governed by state law rules, and the requirements are similar for a virtually executed contract: The agreement must state that the customer consents to enter into the agreement electronically. There has to be a way to identify the individual electronically signing the agreement. The process

Let’s Zoom: The legal challenges of the videoconferencing explosion

Videoconferencing isn’t exactly new, and many people have been using Skype or FaceTime for face-to-face conversations for quite some time. But it’s no secret that the pandemic opened many more businesses to regular videoconferencing through a host of readily available tools, including Zoom. What many business owners might not be thinking about are the possible legal risks associated with the widespread use of these platforms. Generally, the tools companies are using were intended for more casual

Using Depreciation to Control a Loan Forgiveness Tax Surprise

Bonus depreciation and Section 179 expense can be a valuable tool to help you manage your business’ profit margin this year. Here are some thoughts to consider. The problem Many businesses struggling during the pandemic took out Small Business Association Payroll Protection Program loans (SBA PPP loans). The SBA’s willingness to forgive these loans is now creating a potential tax obligation. This is because the expenses used to offset this loan can no longer be deducted

Ideas For Better Savings Rates

Before the housing bubble burst in 2008, you could find high yield savings accounts that were paying rates over 5.0 percent. Today? These same banks are paying less than .10 percent. So where are you supposed to put your money? Is there anywhere else you can put your hard-earned cash and generate a modest return? Here are several suggestions. Social Lending. Consider a social lending site like LendingClub, a peer-to-peer loan network that allows you to

A Happy Banker Makes for a Happy Business

With the onset of COVID-19, small business banks are more nervous about potential loan losses than ever. Here are several tips for your business to maintain a great working relationship with your lender. These same tips can also be used if you want to plant seeds with your banker for potential future loans. Produce timely financial statements. Your lender may require you to produce financial statements over the duration of your loans to ensure that you

Common IRS Surprises

No one likes surprises from the IRS, but they do occasionally happen. Here are some examples of unpleasant tax situations you could find yourself in and what to do about them. An expected refund turns into a tax payment. Nothing may be more deflating than expecting to get a nice tax refund and instead being met with the reality that you actually owe the IRS more money. What you can do: Run an estimated tax return

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