This is the question most people struggle with when first purchasing insurance. Which is better? The answer as always will be it depends. They both offer benefits and downsides. Each client is different and we can sit down and analyze need vs budget.
When you look at the growth in value of a single-family home over a 20-year period, the average REAL rate of return tends to be about 1%. I’m sure many of you may be thinking why is this such a low return? Well, let’s use a real-world example that I covered with a client a couple of months ago.
You might be right about me being crazy, but the above stated strategy is entirely possible. Mark Zuckerburg used a very similar strategy which eliminated billions he would have owed in capital gains tax.
If I told you there is a way that to reduce the amount of FICA and payroll taxes your business pays, increase employee benefits, and doing so would have no effect on any employees’ net pay; you might say I’m crazy. Well, my sanity may still be questionable, but the above stated is true.
So, what does this mean in English? It means; if you’re a business owner that’s married (filing jointly) and you can keep your taxable income from your business under $315,000, $157,000 for all other tax payers, you will only be taxed on 80% of that income.
Despite the states of New York, New Jersey and California containing one of the financial capitals of the world (New York City), and the first and second largest cities for venture capital, they are consistently rated by several sources to be the least business friendly states.
