The stimulus package and your business

Posted on March 5, 2009 by FCA Admin

What does President Obama’s Stimulus package mean to your business?  The stimulus package also known as the American Recovery and Investment Act of 2009 has numerous provisions to assist your business. The Act provides $720 million to support programs by the Small Business Administration and over $300 million to support entrepreneurship efforts in low income areas.  The bill gives businesses three more years to take advantage of the credit that they can take for using equipment that produces electricity through wind energy.  

Other aspects of the bill include a special allowance for bonus depreciation.  Companies can expense up to $250,000 from new capital equipment purchases.  Another important aspect is the delayed recognition of canceled debt.  Companies can buy back their own debt at a discount through 2010.  Lastly, there is an important provision for small business loss write offs.  Businesses with less than $15 billion in earnings are allowed to extend the net operating loss carry back to 5 years instead of the current two year limit. 

The bill also supports numerous projects involving road construction projects, broadband technology, and green technology and energy improvements.

These are important new provisions.  My hope is that all businesses can find something to take advantage of.  The economy is in a recession but my hope is that every business can benefit from these important new provisions.  What are some of your thoughts related to the new stimulus package?

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First Time Home Buyer Credit

Posted on January 26, 2009 by FCA Admin

Are you a first time home buyer?  Have you taken advantage of the First Time Home Buyer Credit? If not you still have time.  First time homebuyers are now eligible to receive a tax credit of up to $7,500 or 10% of the home’s purchase price.  This is part of the Housing and Economic Recovery Act of 2008. The credit is available to purchasers who purchase their first home between April 9th, 2008 and July 1st, 2009.  Married couples with incomes up to $150,000 and single taxpayers with incomes up to $75,000 are also eligible for the full credit.  All others are eligible for a partial credit.  This credit is essentially an interest free loan that must be repaid over 15 years.  To take advantage of the credit, taxpayers must complete Form 5405.  For more information, visit the IRS website or speak to your accountant.  The IRS website is located at www.irs.gov.

This credit is very timely considering the current housing crisis; I hope that eligible taxpayers are able to take advantage of it.  Although the credit is timely, I’ve heard many concerns or inquiries regarding its effectiveness.  Many people are concerned that the length of eligibility is too short.  Others are concerned that people can’t even afford to purchase a home.  What are some of your thoughts?

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Credit Card Relief in 2010

Posted on January 4, 2009 by FCA Admin

Imagine opening up your credit card statement only to see that your rate has increased substantially.  Well, this is the harsh reality that many Americans have been facing over the past couple of years.  But wait no more.  Recently the Federal Reserve Bank passed a law to limit when credit card companies can raise rates. 

With this new law, credit card companies can only raise rates for existing card holders when customers are over 30 days late, when there’s a promotional rate with an expiration date or when the interest rate is tied to an index.  The downside is that credit card companies can still raise rates on new charges.  However, they must provide you with 45 days notice.

Another  important provision is that borrowers with different rates on different portions of their credit card balances may be able to pay off the portion with the higher rates first.  Additionally credit card companies must send statements 21 days before the due date.

I think this change will benefit many consumers.  I applaud the Federal Reserve for taking such a bold step.  This past year has been a very challenging year for consumers.  The change will help many people get back on track with their finances and hopefully stay out of debt in the future.

Although these changes will not take place until 2010, I urge consumers to begin assessing their current credit card debt and come up with a repayment plan.  Bankrate.com is a great source for information on credit cards.   Your accountant is also a great resource for information on managing your debt.

 

 

 

 

 

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Looking for a great Christmas gift?

Posted on December 20, 2008 by FCA Admin

At this time of the year, many people are struggling with how much to spend on Christmas gifts or even if they should go Christmas shopping.  I recently spoke to a friend who mentioned that she wasn’t going Christmas shopping.  It’s kind of hard for me to imagine not having Christmas gifts under the tree.  Growing up we always had a tree and plenty of gifts.  However I do understand several people’s dilemmas.  Well, here are two suggestions that will help you to save money and still ensure that you have a great Christmas. 

My first suggestion is to draw names out of a hat.  Each person will pick one name and will be responsible for purchasing a gift for one person.   This will ensure that everyone has the opportunity to receive a gift.  Everyone will save money in the long run and no one will feel left out.

My second suggestion is to give a financial gift.  For as little as $25, you can open a brokerage account with Sharebuilder.    Sharebuilder is a great tool because it encompasses an educational component.  You will get your loved one involved in investing and will also educate him/her in the process. Sharebuilder has three account options, basic, standard, or advantage.  Each of these accounts do not require an account minimum and comes with great research tools. Another great feature with Sharebuilder is the automatic investing.  If you’re concerned about remembering to invest, you can easily set up an automatic investing option.  Of course my favorite feature has to be the education section.  The section is easy to comprehend even if you are a first time investor.  The education section has been expanded to include advice on topics such as investing, retirement, taxes and investment advice.  I use my Sharebuilder account tools on a regular basis and I have set up the automatic investment option for my account.    The website address for Sharebuilder is www.sharebuilder.com.

 

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What does the economic crisis mean to you?

Posted on December 8, 2008 by FCA Admin

Many people are wondering what strategies to employ during the current economic crisis.  My short answer to this is to save, save, and save some more.   Financial experts suggest having 6 months worth of living expenses saved up. For many, this is a very difficult challenge. To me, saving becomes easier when you reflect on your priorities and your family’s priorities.  For example, do you really need to go out to dinner every night?    Or can you cook more frequently during the week and put the extra money in a savings account?

 You’re probably thinking that saving comes naturally to me because of my profession.  However, I too struggle from time to time with saving.  After all, I am human too.  To help myself overcome this hurdle, I simply ask myself one simple question.  Is this purchase a want or a need?  And the rest is history. 

But how can you employ some simple savings strategies?  My first suggestion is to ask yourself the same question that I ask myself.  Is this a want or a need?  If your purchase is a want, then that means that you do not need to make the purchase.  Other savings strategies can be to have a fixed amount of money direct deposited into your savings account each month.  Another option is to have a budget.  A budget not only allows you to save, but I believe it also encourages discipline.  Yet another savings strategy is to shop with coupons.  These days shopping with coupons have never been easier.  You can print coupons directly from your computer.  One of my favorite sites is couponmom.com.  If you’re still not convinced about the many benefits of saving and of how easy it can be, sing up for a savings mailing group.  These groups offer simple yet effective methods to help make your dollar go further.  One of my favorites is dollarstretcher.com.

If you have a great savings idea and would like to share it.  Please feel free to log into our website and share your savings tips.

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Welcome to First Capital Advisors!

Posted on December 2, 2008 by FCA Admin

We’d like to welcome you to our new website at www.fcallc.biz.  Within the website, you’ll find a lot of valuable resources relating to your personal as well as business finances. Additionally, be sure to check out the weekly blogs relating to current financial topics.  We also encourage you to email us your feedback on the topics that you see  on the blogs or the website.  Lastly, be sure to check out the financial pick of the month for insights on the best financial products for you and your business.

We look forward to working with you and receiving  your feedback.

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