Category: Uncategorized

ONE BIG BEAUTIFUL BILL AND How To Use Some Of The Strategies That Have Come Out Of The Bill.  

by YOUR BUSINESS WORTH, posted in Uncategorized

Thomas J. Perrone, CLU, CIC

Ed Pratesi, the Managing Director of Valuation & Transition Strategies, LLC. I help business owners and their advisors achieve a stress-free process to learn the value of their business, how to increase its value, and the development & execution of a transition strategy or strategies. 

Enhanced expense deduction capability – be careful how you execute – too much of a good thing can leave you cash poor and a tax liability 

QSBS – liberalizing the rules allows C 
corporation business owners to potentially shield 100% of their capital gains on sale. 

– This present gifting scenarios to sort of spread the wealth – couple the prospect of valuation discounts and you have a winner 

With the gift tax exemption rises to $15M 

under the Bill – family wealth planning with SLAT’s and other vehicles are enhanced with valuation discounts. Eepratesi@gmail.com  

JOHN SALEMI. John Salemi: OFFICE MANAGING PARTNER, UHY FARMINGTON CT; has thirty years of professional experience, with a specialization in tax issues and management consulting. John can draw upon his practical financial background in addressing the many managerial problems confronting business owners in today’s complex economic and regulatory environment.Jsalemi@uhy-us.com  

R&D Credits /Depreciation changes /Interest deductions – Section 163(j) 

TOM PERRONE Founder and President of New England Consulting Group of Guilford, Inc.  Estate and Business planning, and Executive Compensation. tperrone@necgginc.com  

•Grantor Trust 

•Non-Grantor Trust (SALT) 

•Decanting OF Trusts for IDIT – SWIPE PROPERTY 

•Cash Flow and Executive Benefits 

listen to the podcast…

https://podcasts.apple.com/us/podcast/building-and-protecting-your-business-worth/id1539791693?i=1000736782334

QUESTIONS TO tperrone@necgginc.com

An Insurance LLC

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, Company Wealth, Estate Planning, evaluations, Executive Benefits, Funding your Buy and Sell, Inside Sale, Passive Ownership, Strategies of growing business, Uncategorized

By Thomas J. Perrone, CLU, CIC

An Insurance LLC is a limited liability company (LLC) created to own and manage one or more life insurance policies to help meet the obligations under a buy-sell agreement. The Insurance LLC is a new business entity formed under local law, separate and apart from the business or businesses that are subject to the primary buy-sell obligations.  Since the Connelly ruling, Advisors are looking for ways to provide a funding arrangement for buy and sell agreements and the Insurance LLC is another way of providing for the buy and sell arrangements.  

GET YOUR FREE eBook, “Unlocking Your Business DNA”. My published book discussing 50+ years of strategies used to Protect, Create Wealth, Grow business, and Transition the business. Great strategies for advisor and business owner- yours free.

https://www.allclients.com/Form3.aspx?Key=4F3D16E276A4EC0C73BFDC182AA06C23

For Business Owners_ Where You Are?  

by YOUR BUSINESS WORTH, posted in Uncategorized

By : Thomas J. Perrone, CLU, CIC

Have you ever thought about how effective you are in your Business and Estate Planning? 

When I ask business owners how comfortable did, they feel about the current level of estate and business planning up to this point, most of them replied favorably.   However, when I asked them, a few questions related to planning, they didn’t feel so comfortable in the current planning they have done.  

Why does this happen?  It’s like if I asked you how your health is, and you would say, “great”, only because you are not aware of any issues.  However, if I asked you the same question, but only after I did a CT scan, you might not be as confident in your answer since you don’t know how the CT scan worked out.  

The Viewpoint helps business owners have more clarity in their planning and simplicity in the path to that planning.  This video is revealing and helpful in finding the right path of planning.  

LEARN MY BUSINESS STRATEGIES, used for over 50 years in my published book, “Unlocking Your Business DNA”. THIS book will give you great ideas of how to work with business owners, their team. It will change the way you work and help you increase your production in the business market. This book is FREE- DOWNLOAD NOW.

https://www.allclients.com/Form3.aspx?Key=4F3D16E276A4EC0C73BFDC182AA06C23

FOR a Kindle or paperback order on Amazon. All profits go to veteran groups.

The CEEP GOLDEN HANDCUFF 401K ENHANCER! 

by YOUR BUSINESS WORTH, posted in Uncategorized

BY: Thomas J. Perrone, CLU, CIC

Here is a benefit that is a win-win for the key person and the employer.   

What it does! 

  • Provides a great Pre-Retirement Benefit for the Key Person – assuring a completion of the 401k/403b plan  FOR FAMILY SECURITY
  • Protects the Employer from losing the cost to provide the benefit if the key person leaves prior to their agreement 
  • Provides the Key Person a great benefit should they fulfill their agreement with the Employer  
  • Completes the purpose of the Key Man Golden Handcuff benefits 

Enjoy a free copy of my published book, “Unlocking Your Business DNA”, 50+ YEARS of great strategies to help business owners grow and protect their business.  

Download Your FREE e-Book  

The Disadvantages of Starting Your Investment for Retirement Later

by YOUR BUSINESS WORTH, posted in Uncategorized

By Thomas J. Perrone, CLU, CIC

Understanding the Implications of Delay

A person in a suit and tie sitting in a chair AI-generated content may be incorrect.

Introduction

Investing for retirement is a crucial aspect of financial planning.  However, many individuals delay this important decision, often due to various life circumstances, lack of knowledge, or financial constraints. While it might seem manageable at first, starting your investment for retirement later can have several significant disadvantages. This document aims to elucidate these drawbacks and highlight the importance of early retirement planning.

Reduced Compounding Benefits

One of the most substantial disadvantages of delaying retirement investments is the loss of compounding benefits. Compounding is the process where the earnings on your investments generate their own earnings over time. The earlier you start investing, the more time you allow your money to grow exponentially. For instance, if you start investing $5,000 annually at the age of 25 with an average return of 7%, by the age of 65, you could have approximately $1.2 million. However, if you start the same investment at 35, you would only have around $540,000 by the same age. The ten-year delay results in a significant reduction in your retirement fund due to the missed compounding opportunities.

Higher Contribution Requirements

To compensate for lost time, individuals starting their retirement investments later must contribute significantly more money to achieve the same retirement goal as those who started earlier. This increased financial burden can strain your current budget and limit your ability to enjoy financial flexibility. For example, a person starting at 25 may need to invest $200 per month to reach a $1 million target by retirement, while someone starting at 45 might need to invest over $1,000 per month to reach the same goal. The higher contribution requirements can be daunting and challenging to maintain.

Increased Market Risk Exposure

Investors who begin saving for retirement later in life often need to take on higher-risk investments to catch up on their retirement savings. Higher-risk investments, such as stocks or certain mutual funds, can offer greater returns but also come with increased volatility. If the market experiences a downturn, those nearing retirement age may not have sufficient time to recover their losses. This heightened market risk exposure can jeopardize your retirement security and force you to adjust your retirement plans.

Shorter Investment Horizon

The investment horizon refers to the length of time an individual has to invest before needing to access their funds. Starting your retirement investments later reduces your investment horizon, limiting your ability to maximize returns. A shorter investment horizon often necessitates a more conservative investment strategy, which may not yield as high returns as a longer-term strategy. Consequently, your retirement fund may fall short of your expectations and needs, requiring additional measures such as working longer or adjusting your lifestyle.

Increased Reliance on External Support

Delaying retirement investments can lead to increased reliance on external support systems, such as social security benefits, pensions, or family assistance. These support systems may not always be reliable or sufficient to cover your retirement expenses. Additionally, relying on family for financial support can create a burden and strain relationships. By starting your investments earlier, you ensure greater financial independence and reduce the need for external aid during retirement.

Psychological and Emotional Stress

The realization of insufficient retirement savings can lead to significant psychological and emotional stress. As retirement approaches, the pressure to save more and the fear of financial insecurity can take a toll on your mental health. This stress can affect your overall well-being and quality of life, both before and during retirement. Early investment planning allows you to build a more secure and confident financial future, reducing the anxiety associated with retirement planning.

Missed Opportunities for Tax Advantages

A screenshot of a graph AI-generated content may be incorrect.

Many retirement investment accounts, such as 401(k)s and IRAs, offer tax advantages that can enhance your savings. By starting your investments later, you miss out on years of potential tax-deferred or tax-free growth. Additionally, contributions to these accounts may reduce your taxable income, providing immediate financial benefits. Early investment in tax-advantaged accounts can significantly boost your retirement savings and provide long-term tax benefits.

Conclusion

The decision to delay retirement investments can have far-reaching consequences that affect your financial security, lifestyle, and overall well-being. Reduced compounding benefits, higher contribution requirements, increased market risk exposure, and a shorter investment horizon are just a few of the disadvantages of starting your retirement investments later. To ensure a comfortable and secure retirement, it is essential to begin planning and investing as early as possible. By doing so, you can take full advantage of compounding, minimize financial strain, and build a robust retirement fund that supports your desired lifestyle.

In summary, the earlier you start investing for retirement, the better positioned you will be to enjoy a financially stable and fulfilling retirement. Take proactive steps today to secure your future and avoid the pitfalls of delayed retirement planning.

LEARN ABOUT THE JFK Era-Tax Free Benefits for business owners- Free Report download!

Click Link – Read online or download the report! https://www.allclients.com/Form2.aspx?Key=A09F56E25777A6F33CDD0B02AB1FE0CC

Overcoming Workplace Burnout with the 3.3 Rule

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Executive Benefits, Key People_Or Group, Team, Uncategorized, Value drivers, Working On Your Business

Thomas J. Perrone, CLU, CIC

Feeling stress or burnout in your career?  Feel like you have no life because you feel you must be working in your career? Feel you are missing time with your family. Starting to hate what you do?  

Tom and John discuss this fabulous and innovative book and how it can change the lives of many.   

Why do we work 40,50,60 hours of work a week?  Why do we feel guilty when we aren’t working. Why do we feel burnout often?   

These are some of the many questions John Briggs’ book covers in “The 3.3 Rule”.   

This book will give you the path you need to start enjoying more time away from work while starting to enjoy your work again.  It gives you permission to change the rules for yourself, your family and your employer.  

Throughout the book John proves that the idea of working till you drop does not make any sense for the modern worker. 

  CLICK TO LISTEN

**John Briggs, CPA 

38 W 13775 S suite 310 

Draper, UT 84020 

Phone: (801) 999-8295 

Email: adminteam@incitetax.com 

Located in Draper, UT 

The 39 Questions and the Paul Hood Method

by YOUR BUSINESS WORTH, posted in Uncategorized

By: Thomas J. Perrone, CLU, CIC

The 39 Questions and the Paul Hood Method 

One of the best resources to learn about buy and sell agreements, estate planning, working with clients, is to read Paul Hood’s books and articles.   

Much of my research and learning comes from reading Paul’s material.  

He is the author of at least Eight books and co-author of others. 

For example, Paul contributes to the legendary The Estate Planning Tool Book from Leimberg, which is an annual addition.

Paul teams up with other professionals and develops great research and learning tools for estate planning specialists.   He is the go to person in these planning areas. Visit his website and see for yourself.

Home

Listen to Tom discussing case study and Paul’s services 

Not only does Paul have terrific books, but he is also the author of hundreds of great articles. Check out his website and enjoy the great articles.   

Paul’s contribution to the planning community is special and many of us appreciate it.   

Get your Free Business Kit Report – immediate download.  

https://bit.ly/3PNBKyz

necgginc@icloud.com

203 530 6615

New England Consulting Group of Guilford, Inc.

THREE WAYS TO GROW YOUR BUSINESS WEALTH! 

by YOUR BUSINESS WORTH, posted in Business Growth and Transition, Buy and Sell Agreements, Company Wealth, Estate Planning, evaluations, Executive Benefits, Funding your Buy and Sell, Income from your business, Inside Sale, Key People_Or Group, Passive Ownership, retirement, Selling Your Business, Strategies of growing business, Tax Efficient, Tax Free Income, Uncategorized

Thomas J. Perrone, CLU, CIC – NEW ENGLAND CONSULTING GROUP OF GUILFORD, INC

Growing value in your business can create tremendous wealth, however, only 15-30% of the small businesses will sell, which creates the “if factor”, the unknown.  

The percentage of sales is lower for the smaller owned business, more like 15%.  

Building your business to its highest potential value is possible by having guidelines of what must be done as you grow the business.  

To hedge the “what if’s” of selling it, you can use the cash flow of the business to create other assets such as executive compensation and qualified benefits and plans.   

Many owners neglect to consider these options and end up with too much wealth in their business, causing liquidity and tax problems when they leave, die or become disabled. This presents the problem of “how do you get your wealth out of your business on a tax advantaged method” when you want to leave the business and you need it?  

Building Your Business to Sell in The Future! 

Here is a list of strategies that will help in growing a robust business and greatest potential value.  

  • Develop value drivers  
  • Create a culture- employees come to you because of it 
  • Develop a middle management 
  • Systematize your business 
  • Customer diversification  
  • Avoid being dependent on a few customers for your sales  
  • Marketing plan- and always update it and analyze it 
  • Focus on growth of revenue, lowing of costs 
  • Protect yourself from litig 
  • Make sure you protect yourself such as  
  • Fund your Buy & sell agreements, bank loans, audit your liability insurance, protective documents, etc. 
  • Have a strategy to sell or transition your business, such as growing the middle management, and key people to step in and run the company, or even buy it. This is a long-term process, but you must put things in order and work on strategies to get the greatest potential value from the business.  

When Considering Using Your Business Cash Flow to Develop Executive Compensation and Other Benefits,  

Such as:  

  • Executive Compensation plans, where the company contributes to the plan, and you as owner pay as little as 2% in taxes on the contribution.  
  • Salary Continuation and deferred compensation arrangements for you.  
  • Deposit into your company’s retirement plan (like 401k, profit sharing, 403b, etc.). However, if you are a “high earning business owner”, do not load up on 401k contributions and other contributory plans as the tax consequences are severe.  
  • Make sure your buy and sell agreements are funded and updated. Make sure they cover at least the seven major triggers (death, disability, voluntary and non-voluntary termination, divorce, bankruptcy, retirement).  
  • Have critical illness plans set up such as medical reimbursement plans, disability, and health coverage.  
  • Tie your major Key group to your company as they are the value of the company and contribute to the cash flow of your company, allowing you to implement these strategies.  
  • Create vested benefit schedules to keep them with you  
  • Have a company evaluation /appraisal periodically.  
  • Focus your attention on growing sales, as all things point to sales revenue. 

Executive Compensation Is a Fantastic Way to Extract the Value of Your Company on a Tax-favored Basis, And Not Tie It Up in Your Company, Having It Available to You When Needed. 

There are but a few thoughts concerning building wealth through your business while building your business.  

If you would like to receive my report on the “JFK ERA BENEFITS THAT CREATED SUBSTANTIAL WEALTH FOR BUSINESS OWNER”, CLICK THE link and it will download. This benefit was around in the 50’s, but only for the bigger companies, now it is available to the smallest of businesses, and may be one of the greatest business owner benefits available.  CLICK JFK 

State Drawn Will in Common Law States

by YOUR BUSINESS WORTH, posted in Uncategorized

Thomas J. Perrone, CLU

New England Consulting Group of Guilford, Inc.

Last Will of Paul Procrastinator

First: I direct the Probate Judge to appoint anyone of his

choosing to administer all property in my name and

distribute it under the terms of this will.

Second: I direct that all of my assets be converted to cash,

all of my debts paid, including taxes, probate fees,

administrative fees, and attorney’s fee.

Third: I direct that one-half (if I am survived by one child) or one-third (if I am survived by two

or more children) of my separate property, be paid to my spouse.

Fourth: I direct that the balance of my estate be distributed outright, and in cash, in equal

shares to my children.  If any child be a minor, I direct that his share be held by a guardian for

his benefit.  The guardian may be anyone of the court’s choosing.

Fifth:When each of my minor children attains age 18, I direct that his share be then paid to

him outright, regardless of his financial or emotional maturity.

Sixth: In the event that my spouse does not survive me, I direct that his/her share be added to

the children’s shares created under Articles Fourth and Fifth

Seventh:If none of my children survive me but my spouse does, I direct that the remainder

under Article Third be distributed outright in the following manner:

●One-half of my separate property to my spouse.

●The balance to my parents, if living, otherwise to my brothers and sisters or their heirs.

Eighth:If I am not survived by my spouse, children or parents, I direct the Probate Court to

seek out my closest blood relatives and divide my estate among them in a way which gives an

equal share to my closest relatives or their descendants.

Ninth:If no relatives are located, I direct that all of my property go to the State.

Learn about the GWT planning system to help you organize you estate and business.              Click Here TO VIEW THE VIDEO.

Why You Need a Business Valuation!

by YOUR BUSINESS WORTH, posted in Uncategorized

By: Thomas J. Perrone, CLU, CIC

A business appraisal is a process of determining the economic value of a business, giving owners an objective estimate of the value of their company ³. It is typically done when an owner is looking to sell all or a part of their business, or merge with another company. Other reasons include if you need debt or equity to expand your business if you need a more thorough tax analysis or if you plan to add shareholders ³. 

If you are a business owner, you may need a business appraisal for various reasons such as:

  1. Selling your business: A business appraisal can help you determine the fair market value of your business and help you set a realistic asking price ³.
  2. Mergers and acquisitions: A business appraisal can help you determine the value of the business you are acquiring or merging with ⁴.
  3. Estate planning: A business appraisal can help you determine the value of your business for estate planning purposes ⁴.
  4. Tax purposes* A business appraisal can help you determine the value of your business for tax purposes ⁴.
  5. Litigation: A business appraisal can help you determine the value of your business in case of a legal dispute ⁴.

If you are looking for a professional appraiser to assess your business’s fair market value, you can consider contacting P C Appraisal Services located in Branford, CT ². They specialize in residential and commercial real estate property appraisals and have a 5-star rating on their website ².

Source: Conversation with Bing, 1/2/2024

(1) How to Do a Business Valuation – U.S. Chamber of Commerce. https://www.uschamber.com/co/run/finance/business-valuation-how-to-guide.

(2) What is a Business Appraisal and When a Small Business … – BizBuySell. https://www.bizbuysell.com/learning-center/article/what-is-business-appraisal/.

(3) P C Appraisal Services. https://www.pcappraisal.org/home.

(4) . https://bing.com/search?q=business+appraisal.

(5) What is a Business Appraisal – Website Closers. https://www.websiteclosers.com/resources/what-is-a-business-appraisal.

(6) Business Appraisals: What Are They? – The Balance. https://www.thebalancemoney.com/what-is-an-appraiser-how-does-an-appraisal-work-398126.

For  a Free Business Valuation Guide, CLICK THE LINK.  Your report will download immediately! 

THOMAS J. PERRONE, CLU, CIC

tperrone@necgginc.com