OPEN finance expert Mike Periu on how millionaires invest in stocks. According to Tiger 21, an investment club whose members have a minimum of $10 million to invest, millionaires like to keep their stock buying simple. While many think that these multimillionaires invest in exotic offshore hedge funds, the reality is their portfolios are far more boring—so much so that you can replicate it. According to Tiger 21's annual member survey, the typical portfolio consists of 23 percent real … [Read more...]
Use an Employee Stock Ownership Plan (esop)
Use an ESOP to Blunt the Fiscal Cliff Tax Increases OPEN's finance expert Mike Periu on Employee Stock Ownership Plan (esop) to Blunt the Fiscal Cliff Tax Increases. Starting in January, capital gains taxes on investments held more than a year will increase to 20 percent from 15 percent. An additional 3.8 percent tax on unearned income also goes into effect at the start of the year. Business owners who want to take equity out of their companies or that have been unable to sell their businesses … [Read more...]
Are Variable Annuities Right for Small-Business Owners?
If you haven't been pitched this investment before, chances are you will be soon. Besides growing your own company, what is the best investment a small-business owner can make? This is a simple question that lacks a simple answer. For owners who have most or all of their net worth tied up in their business, it’s important to take some of that value and invest it in something that carries a different risk profile. If you are in a stable, low-return business, then using some of that excess … [Read more...]
How a Small-Business Owner Should Interview a Financial Adviser
Many small-business owners are hesitant to engage a personal financial advisor. But here's why--and how--you should Interview a Financial Adviser. Many small-business owners have achieved success by taking a “hands-on” approach to running their companies. Having full control over your business’ operations gives peace of mind because after all, no one is going to care about your business like you do. But that attitude can actually lead to serious problems when it comes to managing your personal … [Read more...]
Should You Fund Your Startup With Convertible Debt?
Should your business offer its investors debt or equity in exchange for capital? The answer may be both. There are many ways for a nascent small business to acquire the money it needs to start operations and expand. By now, many owners realize that the traditional bank loan is the most difficult and least advantageous source of capital for many small businesses. They instead turn to venture capital firms or angel investors. When you finally find the right funding partner and shake hands on the … [Read more...]
Why Small Business Owners Fall Prey to Investment Scams
In your search for retirement security, don't fall prey to Investment Scams. Plan ahead and set reasonable expectations for growth. Convicted Ponzi-schemer R. Allen Stanford was sentenced to 110 years in prison recently for perpetrating a financial fraud with estimated losses of $7 billion. The Stanford Financial Group offered “investors” the opportunity to invest large sums of money at a very high interest rate with a 100 percent principal protection guarantee. Not bad, eh? Unfortunately for … [Read more...]
Why Business Loans Are Getting Cheaper
The Federal Reserve releases its first quarter 2012 bank survey which helps gauge today's lending environment. Every quarter, the Federal Reserve conducts an extensive survey of lending officers at domestic banks and at the domestic branches of foreign banks operating in the U.S. The results of this survey provide key insight into what decision makers in the lending process are thinking and doing. The survey from the first quarter of 2012 has been released and the news is mixed. Lenders are … [Read more...]
Las más ridículas ideas de negocio… ¡que ganaron millones!
A veces, los emprendedores se desaniman porque no encuentran la forma de ganar dinero. Muchos piensan que tienen que ser un experto en un campo, un científico o un ejecutivo con experiencia para tener una empresa éxitos. ¡Esto no tiene fundamento! Cualquiera puede ganar dinero con un producto — aunque te parezca ridículo — si existe un mercado para él. ¿Quieres pruebas? Aquí están las más ridículas ideas de negocio. Snuggie Muchas personas se burlan de este producto. Imagínate que alguien … [Read more...]
Will the Discrimination Police Knock on Your Door?
An overview of the U.S. Equal Employment Opportunity Commission and how it can impact your business. Hiring decisions are never easy for small-business owners. You have to take into account a number of competing interests: the needs of the job, the “fit” of the candidate with your company’s culture, how much you can pay versus how much they want and of course federal, state and local laws. It’s no wonder that many small businesspeople don’t look forward to the process. As your business--and … [Read more...]
Can My Company Be the Next Instagram?
In the wake of the Facebook IPO, many institutional investors considering putting money into Facebook have expressed concerns about Zuckerberg’s management potential and strategic thinking. Among the concerns is the logic behind the $1 billion purchase of photo-sharing app Instagram. See as Instagram was not a household name before the sale, many small businesspeople are logically asking not only how Instagram did it, but also whether their companies can do it, too. Behind the Instagram … [Read more...]