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Entrepreneur
an hour ago
- Business
- Entrepreneur
How Smart Entrepreneurs Turn Mid-Year Tax Reviews Into Long-Term Financial Wins
Take these four steps to set yourself up for financial success at the end of the year and beyond. Opinions expressed by Entrepreneur contributors are their own. We're halfway through the year. The plans you set in motion back in January are hopefully moving along — and let's be honest, the sunshine is calling. For most entrepreneurs, tax planning won't resurface until the year-end scramble or next spring's filing season. But if you're serious about improving your financial picture, now is the time for a mid-year tax strategy check-in. It doesn't have to eat up your summer. Carve out a day or a few afternoons to look at these four areas, then schedule a meeting with your tax advisor. You might be surprised how far a little mid-year focus can take your business — and your finances. Related: 5 Tips for Finding the Tax Advisor Who Will Save You Millions 1. Know your numbers You can't improve what you don't understand. Start by reviewing your core financial metrics — revenue, expenses, cash flow and customer acquisition costs. Compare these to your business plan. Are you on track? Are there red flags or overlooked opportunities? Also, come prepared to your advisor meeting with a clear estimate of your taxable income and projected tax liability. The last thing you want is a nasty surprise in April. 2. Maximize your deductions Running a business comes with plenty of expenses — and many of them are deductible. That means they reduce your taxable income and, ultimately, your tax bill. It's the government's way of incentivizing reinvestment into your business. Common deductible expenses include: A reasonable salary for yourself Travel related to business Equipment, software, and other depreciable assets Home office expenses Continuing education To prepare, make a list of your 2025 business expenses so far, plus projected spending through year-end. Then ask: Is there a clear business purpose? Is this a typical expense in your industry? Is it necessary (i.e., does it drive profit or growth)? Do you have proper documentation? Bring any questionable items to your advisor for clarification. There could be savings you're missing. 3. Explore available tax credits While deductions reduce your taxable income, tax credits reduce your tax bill dollar-for-dollar — and in some cases, can even increase your refund. Ask your advisor if you're eligible for any of these common credits: Providing child care for employees Offering paid family and medical leave Using individual-choice HRAs Creating jobs in economically distressed areas Investing in research and development Tax credits are often underutilized, and a knowledgeable advisor will help you take full advantage of them. Related: Why Mid-Year Tax Reviews Are a Must for First-Time Entrepreneurs 4. Think beyond this year Yes, this review should help lower your 2025 tax bill. But the bigger win is long-term planning. Use this mid-year moment to zoom out: Are you building a system for long-term, tax-efficient wealth? Are you investing in ways that align with your growth strategy and the broader economy? The tax code is full of incentives designed to reward entrepreneurs. That's not a loophole — it's a signal: the government wants you to grow, because you create jobs and fuel the economy. So don't settle for a CPA who just files your paperwork. Find an entrepreneurial advisor who can help you build a lasting, proactive strategy — someone who acts as a true financial partner, not just a form-filler. A mid-year review could be the most lucrative move you make all year Taking a few hours to revisit your numbers, check for missed opportunities, and talk strategy could save you thousands — and set your business up for a stronger finish to the year. More than that, it helps you lead with clarity, confidence, and control over your financial future.
Yahoo
a day ago
- Business
- Yahoo
7 College Majors That Cannot Afford a Comfortable Retirement
On average, going to college greatly improves your chances of financial success in terms of income, unemployment likelihood and reported financial well-being, as an analysis from the Association of Public & Land Grant Universities showed. However, your college major can make a difference when it comes to long-term financial security. I'm a Self-Made Millionaire: Check Out: In fact, 60% of the majors studied in a report by professors Frank Smith and Ajay K. Aggarwal would not lead to earning enough to build up a large enough nest egg to afford a comfortable retirement, even with no student loan debt. Once you factor in taking on more debt to go to college, the odds drop, especially for women and minorities. According to their findings, only certain STEM (Science, Technology, Engineering and Mathematics) and business-related majors are likely to earn enough over their lifetimes to afford a comfortable retirement. Even then, certain majors are not likely to lead to that outcome, particularly when factoring in debt. To get to a 50/50 chance of avoiding outliving your nest egg, you need a starting income of $48,500, according to the study. That's not to say that it's impossible to make up the gap later on, but below are seven majors and their typical starting pay, according to the research, which would not clear this bar: Major Starting pay Theatre $34,830 Hospitality management $38,250 Psych/sociology $38,610 Athletic training $39,860 English/writing $40,050 Political science $42,210 Food science $44,370 These are just a few of the many majors the report found would not earn enough. Even some STEM majors, like biology and chemistry, do not have high enough starting pay to lead to a comfortable retirement typically, they find. However, variations like chemical engineering do earn enough usually, with a starting pay of $65,520. While sometimes you need a particular major to get into a certain field, there are plenty of ways to adapt. Plus, just because some majors like biology might not lead to a comfortable retirement on average, that can certainly be used as a jumping-off point to get into medical school and then potentially secure a comfortable retirement as a doctor later on. Pay attention to what majors specific jobs or graduate schools may look for, but don't feel like you're always locked in. 'I still think that college grads can do okay with most majors, assuming they have an interest in taking a job outside their specific major field,' said Teresa Saputo-Crerend, co-founder of LaunchBreak, a networking platform for high-level women athletes. If you're willing to be flexible, leverage your contacts — including professors — and do the networking needed to land an internship, even if it's remote or during the school year, you can improve your chances of reaching your goals, she added. Plus, remember that getting your foot in the door is difficult, but it's important to keep doing the work. 'Getting a job these days is hard and can take up to a year. Patience, confidence and resilience are a necessity, as is finding some work to bridge the gap, preferably within the field one is looking for a job. For example, work at a retail clothing store if you are looking for a job in fashion; you never know who might be your customer,' said Saputo-Crerend. Learn More: If you've already graduated and are in a career that you don't think will lead to a secure retirement, or if you're deep into your studies, it's not necessarily too late to change direction. Pivoting is an option, said Saputo-Crerend. 'They can learn many, many different skills online,' she added. 'There are so many webinars and courses offered for free online. They can volunteer. They can try to do some job-shadowing. Pivoting requires patience as well.' Think about what skills you may have picked up along the way that can be used for this pivot too. College athletes, for example, typically develop 'time management, discipline, teamwork, etc. All of these soft skills can impress someone in any industry,' said Saputo-Crerend. 'It's the same for someone majoring in a field that won't be lucrative,' she noted. 'There is coursework in any major that teaches you skills. Psychology classes may require some coding, data analytics or behavioral research. This can all be applied to other industries.' More From GOBankingRates The New Retirement Problem Boomers Are Facing This article originally appeared on 7 College Majors That Cannot Afford a Comfortable Retirement
Forbes
5 days ago
- Business
- Forbes
How To Choose A Savings Account
How To Choose A Savings Account Your wealth-building plan starts with a cushion of highly liquid cash. Some call it precautionary balance, others may use the term 'peace-of-mind money,' but most people simply call it savings. Whether your goal is to absorb a job loss, seize investment opportunities, or avoid debt, your savings account (or accounts, because you should have more than one) serves as your baseline for financial success. This article tackles savings accounts and explores key considerations for choosing. Overview Of Savings Accounts A savings account is a secure, interest-bearing deposit product offered by banks, credit unions, and other financial institutions. They are designed to preserve your capital, provide daily liquidity (within specific transaction limits), and earn a variable return through interest. Unlike checking accounts, savings vehicles do not usually offer unlimited debit-card swipes, yet they are more accessible than time-locked certificates of deposit. Savings accounts vary in form and function, depending on the institution and consumer needs. For example, traditional savings accounts offered by brick-and-mortar banks tend to have low annual percentage yields (APY), but come with easy access to in-person tellers and ATM networks. Online savings accounts typically offer higher yield or interest rates in exchange for mobile-only access. Alternatively, money market deposit accounts combine features of savings and checking accounts. They offer relatively competitive interest rates, but may impose higher minimum balance requirements and stricter fee schedules. Other institutions may also have niche products, tailored for age-specific needs or certain demographics, with special features such as financial literacy components, parental controls, progress-tracking, or charity tie-ins. Key Considerations For Choosing A Savings Account While all savings accounts store and grow your money, they vary based on interest rates, fees, minimum balance, and other factors. When choosing a savings account, consider the following: Before anything else, clarify your intentions. What are you saving for? Don't just say you want to save money. For what? Are you saving for a down payment on a house, a vacation, a child's education, an emergency fund? Is this intended for additional retirement savings? As already mentioned, it's best to have more than one savings account, so each account may be earmarked for a different purpose. This way, you can be more intentional about your savings. You should also ensure that your goals are time-bound. When do you want or need to reach your financial goals? For example, building an emergency fund should be part of your short-term goals, to be achieved within a year or two. Prioritize having at least six months' worth of living expenses saved in an easily accessible account. More than high interests and growth, the goal here is to have enough money stored in case you lose your job, need your car repaired, or someone in the family gets hospitalized. This helps you avoid going into debt in case of emergency. If your goal for this account falls in the medium-term (three to five years) or longer, then you can focus on having higher interest rates and not worry too much about liquidity. You may also consider laddering with high-yield savings with no-penalty certificates of deposit for incremental yield without forfeiting accessibility. Clarifying your goals helps you with the other considerations below. Often expressed as APY, interest rate is a central factor in evaluating the long-term value of a savings account. Though they do not generate as much returns as equities or bonds, the compounding effect of interest in savings accounts especially when paired with a disciplined savings habit can still grow your money over time. Traditional banks offer rates at between 0.01% to 0.10%, while online platforms typically provide APYs of up to 5%. Differences in APYs warrant rate shopping before opening an account with an institution. You must also consider what kind of APY is offered because some institutions have so-called 'teasers', where the introductory rate is lowered substantially after a few months. Others have tiered structures that only apply the advertised rate to a limited portion of your balance, say the first $10,000. As such, the effective yield can be lower than the initial figure implies. Don't forget that interest rates are affected by macroeconomic factors, mainly the Fed rate and inflation. You should monitor interest rate trends and be proactive in transferring your funds to a different institution should there be downward movements in their respective APYs. Fees can quietly erode your returns, despite an institution's advertised APY. Watch out for excess withdrawal, dormancy, maintenance, and other fees. For example, some banks waive maintenance fees if you meet a certain balance threshold, while others charge them regardless. It's important to verify with the institution whether they have threshold requirements and decide if you can meet them consistently. Similarly, some institutions impose dormancy fees if your account is unused for a specific period, typically between 12 to 24 months. Ensure that there is regular activity in your account, be it withdrawals or deposits. Other fees include charges for paper statements, returned deposits, stop payments, wire transfers, or out-of-network withdrawals. These may seem minor, but they can accumulate over time, particularly if you are unaware of your bank's default settings. Always read the fine print and ask about all fees that the financial institution may impose. This refers to your ability to deposit or withdraw funds and the availability of digital or physical interfaces. Yes, the main reason for opening a savings account is to store your money, but you would still need to have access to your funds, especially if it's an emergency. The ideal savings account limits unnecessary withdrawals to encourage discipline saving, while allowing immediate access in case of need. Review how an institution processes automated clearing house (ACH) transfers between external accounts. If they offer same-day or next-day processing, better. Note that some banks may take up to three business days for ACH transfers, which is a big consideration depending on your intended use for the account. You should also inquire about their ATM network and mobile app. Anticipate how much you will need cash transactions or online transfers and incorporate this into your decision-making process. This protects your deposits in case of bank or credit union failure. It's provided by the Federal Deposit Insurance Corporation (FDIC) for banks and the National Credit Union Administration (NCUA) for credit unions. Both the FDIC and NCUA cover up to $250,000 per depositor, per ownership category, per institution. This means that an individual account, a joint account, a trust account, and an IRA held at the same bank can be separately insured up to $250,000. While most bank and credit unions in the United States are insured by these institutions, never assume coverage without verification. Legitimate financial institutions clearly state insured status on their websites or within branches. You may also use FDIC's BankFind Suite or NCUA's Credit Union Locator to confirm. If you have more than $250,000 in total funds, you can protect your money by either opening accounts in different insured institutions or having multiple ownership categories within the same institution. Final Thoughts Savings is the foundation of wealth building. It leads to better habits, allows opportunities for investments, and helps you achieve financial security. Choosing the right savings account and institution requires careful consideration of your financial goals, interest rates, fees, accessibility, and insurance coverage.
Forbes
22-06-2025
- Business
- Forbes
Making Money Matter More: The Power Of A 'Massively Transformative Purpose'
Net worth is easy to measure. But what makes it worthwhile? What justifies the effort, investment, or sacrifice required to pursue financial success? And how is that—financial success—even defined in the first place? And then, once you've reached whatever definition of financial success you've determined, what gives your wealth meaning? (A question worth considering) Redefining Financial Success We've long been taught to measure financial success with numbers: net worth, portfolio returns, retirement dates, income generated, gifts granted, taxes paid and avoided, inheritance left behind. Yet one could check every box—and still feel unfulfilled. In fact, many people go to great lengths to achieve supposed financial success—but at the expense of their time, influence, health, and relationships. This all-too-common phenomenon begs the question: What's it really worth? This nagging question is one that has plagued my firm since its inception, nearly 30 years ago. And it's why we coined our own term—Net Worthwhile®—designed to remind us and our clients that our pursuit is not solely numerical…that a mountain of wealth can be worthless without purpose while bringing meaning to money can empower families, both personally and financially. Behavioral Science Meets Financial Planning Here, we're taking concepts rooted in behavioral science, like Self-Determination Theory (SDT)—which suggests that identifying with a purpose enhances intrinsic motivation, boosting persistence, engagement, and performance when tasks align with personal values—and extrapolating it to wealth management. Others have done the same in other fields. For example, building on Jim Collins' BHAG concept (Big Hairy Audacious Goal), Peter Diamandis and Salim Ismail introduced us to the concept of the Massively Transformative Purpose (MTP) in their ode to entrepreneurs in their book, Exponential Organizations. What's A Massively Transformative Purpose? Hyperbolic by design, a Massively Transformative Purpose for a business is a clear, aspirational statement that articulates an organization's deeply held purpose to create meaningful, large-scale impact. 'It establishes a long-term goal for the company so sweeping and profound that it is always within reach yet always unreachable,' Ismail suggests. 'It inspires employees and customers. And it galvanizes employee morale and retention.' For example, at my company, we review our version of an MTP with the entire firm every quarter: 'We are going to impact the lives of 10,000 families by 2030 because financially healthy families and individuals change the world.' This infuses our collective efforts with a purpose well beyond profit, while providing a standard against which all of our individual initiatives and decisions can be gauged. What's Your Net Worthwhile®? The concept of Net Worthwhile®, therefore, can be used to help those families we impact with a similar plumbline for their financial planning. Net Worthwhile® helps bring money to life (and life to money) in three key ways: At its simplest, your Net Worthwhile® is the completion of this sentence: For the relationally oriented, Net Worthwhile® serves as a family financial mission statement. For the practically minded, it becomes a clear set of marching orders from client to advisor. For the analytical, it provides the standard by which goals and next actions in the plan are evaluated. And for the experimental, it may serve as a catalyst to expand what's typically considered possible in financial planning. For some, Net Worthwhile® serves as a phrase or sentence. For others, a paragraph or bullet points or even pictures. Its effectiveness is judged not by its articulation but by its power to activate and motivate. So, what's yours? What's the Massively Transformative Purpose that gets you up in the morning, that inspires you to push through when you face resistance, that gives you clarity in the midst of confusion, that brings meaning to money? What's your Net Worthwhile®?
BBC News
19-06-2025
- Business
- BBC News
Shropshire council bucks trend with budget position
While many councils have struggled to balance their budgets in the past year, Telford and Wrekin Council has said "strong management of budgets" and "innovative commercial work" have kept it on track.A report that went before councillors this week outlined how it managed to stay within its budget, despite "very challenging times in local government".The authority said it expects to bring in £43m through its property investment portfolio over the next four years and another £7m through its housing the councillor responsible for finance, Zona Hannington, said the council was under "no illusions" that it would face pressure from rising social care spending and other costs. The leader of the Labour authority, Lee Carter, said he was "very proud that Telford & Wrekin Council continues to buck the trend".He added that the council's commercial success had been supported by savings of £181.7m over the last 15 years and that he had a target of a further £13.1m of savings in the current financial year. Follow BBC Shropshire on BBC Sounds, Facebook, X and Instagram.
