Home/Credit/SBA Personal Guarantee Asset Protection SBA Loan and Small Business Finance Series SBA Personal Guarantee Asset Protection: What Small Business Owners Must Know Before Signing and After Default Every SBA 7(a) loan requires the full personal guarantee of any owner with 20 percent or more equity. When the SBA says full personal guarantee, it means…
Home/Credit/Pledged Asset Line Payoff Strategy Credit and Leverage Strategy Series Pledged Asset Line Payoff Strategy: The After-Tax Arbitrage Framework for High-Income Borrowers A pledged asset line at 5.5 percent against a portfolio returning 9.2 percent creates 3.7 percent of gross carry. After applying the 37 percent federal rate to portfolio income, IRC Section 163(d)’s limitation…
Home/Credit/Medical Practice Loan Payoff Strategy Medical Practice Finance Series Medical Practice Loan Early Payoff Strategy: The After-Tax Framework for Physicians Balancing Debt Service and Practice Growth A physician who acquired a primary care practice for $1.4 million using an SBA 7(a) loan at 7.5 percent carries roughly $14,500 per month in debt service. Paying that…
Home/Credit/Debt Paydown vs Investing ROIC Credit Strategy Series Debt Paydown vs Investing ROIC Arbitrage: The After-Tax Decision Framework Every High-Income Earner Needs Paying off a 7.2 percent personal loan generates a guaranteed 7.2 percent after-tax return, because personal loan interest is not deductible. Investing the same capital in a diversified equity portfolio generates approximately 6.3…
Home › Insurance › Life Insurance Estate Tax Liquidity Estate Planning and Insurance Strategy Life Insurance Estate Tax Liquidity: The ILIT Framework for High-Net-Worth Estate Planning A taxable estate without a liquidity plan forces heirs to sell real estate, business interests, or farm assets at distressed prices within nine months of death. The Irrevocable Life…
Home/Insurance/Key Person Insurance Business Insurance Series Key Person Insurance for Small Business: How Much Coverage to Buy, Which Policy to Use, and Why Most Businesses Get It Wrong A software company with $8 million in annual revenue generates virtually all of its technical product roadmap from a single CTO. If that CTO dies or becomes…
Home/Insurance/Human Life Value Executive Life Insurance Executive Life Insurance Planning Series Human Life Value Calculator for Executives: The Income-Based Framework for Quantifying Life Insurance Need Most executives carry two to five times base salary in life insurance, a number derived from employer group benefit structures rather than from any principled economic analysis. A CFO earning…
Home/ Insurance/ Corporate Buy-Sell Agreement Life Insurance Business Owner Insurance Strategy Series Corporate Buy-Sell Agreement Life Insurance: The Complete Ownership Transfer Framework for Business Partners A buy-sell agreement without funding is a legal promise with no ability to perform. When a business partner dies, the surviving owners are contractually obligated to purchase the estate’s interest,…
Home/Insurance/ILIT Estate Tax Liquidity Estate Planning Series ILIT Estate Tax Liquidity Life Insurance: The Irrevocable Trust Framework for Keeping Wealth Outside the Taxable Estate When a business owner dies with $18 million of estate value and $13.99 million of federal exemption, the $4 million overage generates $1.6 million of federal estate tax due in nine…
Home/ Insurance/ Section 7702 Life Insurance Cash Value Arbitrage Advanced Life Insurance Strategy Series Section 7702 Life Insurance Cash Value Arbitrage: The Tax-Free Accumulation Strategy for High-Income Earners When a high-income earner has maximized 401(k), IRA, and HSA contributions and still has after-tax income to invest, the conventional choice is a taxable brokerage account carrying…
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