Category: Tips

There’s an avalanche of useful information out there about starting a business. On the other hand, it’s much more difficult to find a trustworthy source on how to sell a business. If you are ready to move on to a new chapter in life and wonder, “How do I sell my business?” this guide is for you.  This helpful resource will take you step-by-step through the entire process. You’ll learn what you need to do and the best, stress-free ways to sell your business.  Why Sell a Business Before you even begin to sell your business, it’s important to be clear on why you are doing it. This is a question potential buyers might ask you, and it’s good to be prepared.  These are the most common reasons that people sell their business.  Retirement  Retirement is the biggest reason most people sell their business. They are ready to work less and travel more, or they don’t want to be a business owner this late into life.  If a person can sell their business for a price that allows them to have a comfortable retirement - no matter the age - it’s definitely tempting.  Professional Change  Another reason people sell their business is that they want to switch industries. Maybe they built up their business but are interested in a different opportunity. It makes sense to sell the first business and focus on the next thing.  Business Flipping If someone gets the chance to sell their business at a profit, then this is an offer that is tough to turn down. Business flipping is a lot like house flipping. The entrepreneur builds up sales and the business and then sells it, earning a hefty profit for their efforts.  Makes Financial Sense  There are a plethora of risks associated with owning a small business. Anytime a business owner has the chance to get liquidity by selling the business (or a part of the business) it is a good idea.  Maybe the owner wants to sell because they are unable to absorb the financial risks. This happens either in the beginning stages or later on when the damages can get pricier.  If a person grows uncomfortable with the amount of risk it takes to own a small business, it might be time to sell it.  Illness or Death  Finally, physical health plays an important role in someone’s ability to run a business correctly. When one’s health begins to decline, it’s common to consider selling the business.  This also includes the times when a partner in the business dies or is unable to do their share. It’s more important to focus on family and health than trying to operate a small business. How to Sell a Business No matter the reason for selling it, there are specific things you must do when you are ready to let it go.  The most important thing is to speak with an experienced financial consultant who will work with you to prepare for a successful transaction.  1. Make It Look Financially Attractive  The first thing you need to do is increase sales and profitability. To attract serious buyers, the business must look like a solid investment that will pay off.  One of the best ways to make your business look desirable is to increase sales and decrease debts. If you can prove that the business is steadily increasing in sales and revenue, buyers will be more inclined to sign on the dotted line.  2. Start Preparing Early  While you are trying to increase sales and make the business look financially attractive, you should also clean up the books and spend time organizing all the paperwork.  When you begin to sell your business, potential buyers will have a lot of questions about the financials. Do the prep work ahead of time so that you are ready to answer all of their questions.  There are things you can do a year ahead of time, like improving your business structure and customer base, that will help it sell at a higher profit.  3. Get a Professional Valuation  To understand how much your business is worth, you must have it evaluated. Most small businesses will sell for about three to six times your normal cash flow. Knowing where your business sits on this spectrum is tough, so you will need to hire a third party.  A business valuator or agency will look closely at sales, debt, inventory, and revenue and create a precise figure identifying what your business is worth.  This is a lot like a home appraisal. After a homeowner has a current appraisal, they have a better idea of what it might sell for - and the same is true for your business.  4. Prepare an Exit Strategy  Next, create a process that you can enact as soon as you hand business ownership over to the new buyer.  In your exit strategy, include what happens to the current staff, how to manage pain points that might occur during the transition, and what your role will be after the sale is final. 5. Safeguard Secrets From Suspicious Buyers There are some private financials that are shared with potential buyers. This information could damage your business if it ended up in the wrong hands - like a competitor.  The best way to protect your business information is to ask buyers to sign a Non-Disclosure Agreement (NDA). Not only does this prevent the potential buyer from sharing the information with anyone else, but they also cannot use the information to undermine you as the seller.  6. Decide Whether to Use a Broker If you go through a broker, you won’t make as large of a profit. It might be tempting to keep all the profit for yourself and just do it all, but there are a lot of reasons that a broker will help you.  For example, if you are selling the business to a close friend or family member, the broker is an unbiased third party that will handle the issues that commonly arise among family members.  A broker can also free you from the burden of pouring over paperwork and following up with lenders and the buyer. Since they work on commission, the broker will help you get the highest price that you can.  7. Organize Paperwork  There is going to be a slew of paperwork involved in selling your business. It’s a smart decision to find a lawyer you can trust who can help you draft and review all contracts.  Make sure you hire a lawyer that has experience with contract law. There are a lot of loopholes that can work against you if you don’t catch them early.  Also, you’ll be dealing with more than contracts. Make sure you have tax returns from the past few years and review them with your accountant.  Other important documents you’ll need to find and organize include current lease agreements, customer information, operating manual, employee manual, and a list of equipment that you own.  How Much Selling a Business Costs  There are a lot of different things that influence the cost of selling a business. A broker will take a commission of about 10-12 percent.  On top of that, you will probably incur attorney fees, the cost of improving the business so that it is more valuable, and marketing fees.  Rely on Professionals to Help You Sell Your Business When you are ready to sell your business, rely on financial consultants who can tell you whether this is a good time to sell it and what you can do to maximize your profits.  A business consultant will walk you through every step and help you have the best experience so you can live your best life.

Buying a timeshare might seem like a personal investment or a way to own vacation property so you never have to search for rentals again. Is it smart? Is buying a timeshare as good of an idea as the ads and salespeople make it sound?  Before you spend thousands of dollars on a timeshare, it is vital that you speak to a financial advisor. They will look at your income, investments, and the deal itself, and be able to suggest whether it is the best choice.  Until you speak to an advisor, this guide will attempt to answer as many general questions about buying a timeshare as possible. The short story is, there might be a way to buy one, but it isn’t always a good idea.  What is a timeshare? With timeshares, multiple people share in the ownership rights of a vacation property. A timeshare is typically a condominium unit located within a rental property, but it could also be a rental house.  When someone purchases a timeshare, they usually buy the right to use it for a specific date each year - usually for one or two-week periods.  Types of Timeshares There are a few different types of timeshares - from the type of ownership to where they allow people to stay and when they can stay. Before you buy, you must understand which type you are purchasing.  Fixed Timeshare Weeks The most popular type of timeshare gives the buyer a specific date each year when they are allowed to use the property.  Some people love the comfort and tradition of taking their vacation at the same time and place every year. Others don’t like how difficult it is to change the fixed week to a different time if they can’t make it.  Floating Timeshare Weeks Some timeshares offer the option of purchasing floating weeks. This means the buyer has the ability to choose a week (or weeks) within a certain season or period of time. Then, the timeshare owner can reserve a week each year within that period.  This is always subject to availability, so you might not be able to book your ideal vacation week. Some people like the flexibility, others don’t enjoy the stress of the possibility of not having their first choice of dates.  Fractional Timeshares Fractional timeshares are not as popular, but they are certainly available. This type of arrangement gives the buyer use of the property for longer lengths of time. They can last from as little as a few weeks to as long as a few months.  Timeshares That Pay With Points  Some timeshares sell points that people can then use in a variety of timeshare locations at different times of the year.  Several factors will affect the value of a buyer’s points, such as the size of the property, time of year, and where the resort is located.  The point system opens up a lot more choices for people, which is desirable if they don’t want to return to the same place every year. It can be risky, however, since so many outside factors affect the value of the points.  Shared Deed Ownership Shared deed ownership isn’t sold as often. In this model, each buyer owns a percentage share of the physical property. That means a condominium could have a maximum of 52 different deeds and each person would own 1/52 ownership interest.  With shared deed ownership, the deed can be resold to another party or willed to someone’s estate.  Since this option gives people a right to sell their deeds, it also comes with a higher price tag.  Shared Leased Ownership Interest The shared leased ownership is the most common type of timeshare people buy. Through this model, the developer owns the deed to the property and the timeshare buyer holds what is called a “leased interest” in it.  Leased interest works a lot like renting. The lease agreement gives the buyer the right to the property during the agreed-upon time and usually has an expiration date.  This is typically priced lower than deed ownership because the buyer cannot sell it or transfer it to someone else.  Included Expenses  In addition to the upfront cost of buying the timeshare, there are often annual expenses that buyers are responsible for.  Many timeshare owners also pay an annual maintenance fee. This covers the cost of property upkeep. This may be a really high cost that people regret.  Benefits One of the biggest benefits of owning a timeshare is knowing that you have a location reserved for vacation every year. There is security and relief knowing you don’t have to spend hours searching for hotels or vacation rentals.  The deed ownership is alluring because it can be sold, gifted, or transferred. Some people like the idea of passing their timeshare down to their kids or other family members. That is essentially where the benefits end. There are more drawbacks to timeshares than there are benefits.  Drawbacks  It’s very important to understand the drawbacks of buying a timeshare before you sign on the dotted line.  Even if you buy a deeded timeshare, the resale market is so crowded that you might find it difficult to recover your buying price. Many timeshare resellers find they are selling at a loss.  Another downside is that they require either full purchase price upfront or they will offer to finance it. This means that some people take out loans or go into debt for something that won’t make them any money. One of the biggest downsides to timeshares is that the salespeople are relentless and many people buy timeshares for more than they can afford. The fine print sneaks in fees and other things that drive up the price tag - all things that the buyers are unaware of when they buy it.  Even the points system isn’t always reliable. They are subject to inflation and can lose value over time. What costs 100 points this year might cost 150 points next year.  Should I buy a timeshare?  Whether you buy a timeshare or not is a personal decision. It can be beneficial to some people under some circumstances and a money sink for others.  Timeshare salespeople are extremely persuasive. Before you agree to talk to one, please speak with a financial advisor. Then, you will know how much you can afford, the terms you need to ask for, and whether you should even consider it.  If you look at buying a timeshare like renting a vacation unit each year, and your finances allow the extra spending, it might not be a bad idea. However, if you think this is an investment, you should reconsider. Timeshares are not worthwhile investments.  There is one option to consider. If you are able to buy a secondhand timeshare at a heavily discounted rate, then it might not put you more into debt. You’ll get the enjoyment of the timeshare without the hefty price tag.  Contact a Financial Advisor  Timeshares can be alluring but also confusing and costly. Before you make this important purchase, reach out to a financial advisor in Green Bay, WI.  Advisors Management Group can look at the pros and cons with you and help you decide whether you should buy a timeshare or make a different purchase for your future vacation plans.

As a small business owner, you want to protect your assets and create separation between your private and public or business finances. An LLC is a very popular way to provide legal security and protection for business owners, but it is so much more than that.  One of the most important parts of setting up a small business is to establish an LLC. But what exactly is an LLC, and is it better than other business structures, like a corporation?  This guide will answer the question, “What is an LLC for dummies?” We will break down exactly what it is and help you understand whether it is a good choice for your business.    What is an LLC? An LLC is a limited liability company. It legally organizes a business, protecting personal property from financial or litigation risk. It is a way of structuring a business as a legal entity.    What an LLC Does The most common thing an LLC does is separate the businesses’ assets from the business owner’s personal assets. It’s all in the name; it limits the liability to just the assets owned by the company, not the business owner’s personal assets.  Let’s explain this with an example.  If an LLC owns two real estate properties but defaults on its loans, the creditor can only go after any assets owned by the LLC. They cannot demand personal property from the business owner. They are separated legally, so the LLC must settle all debts, litigations, and other liabilities with assets it owns.  There are going to be caveats and other situations, but that is a simple example.  This is the most common benefit and why most people set one up. It’s essential to make sure that personal property is separated from the dealings of the business.  Let’s look at the most significant benefits of an LLC so you can see more clearly what it can do for your business.    Pros and Cons of an LLC  The easiest way to see what an LLC does is to look at the pros and cons. As advantageous as it is, an LLC isn’t the best idea for every single business.    Benefits of an LLC  Including asset protection, there are five main benefits of creating an LLC. It’s a way to organize and manage your business, and it offers tax flexibility, too.    Asset Protection An LLC protects members from personal liability due to anything the LLC does. This includes anything other members do on behalf of the business.  This means that creditors, clients, or customers cannot pursue personal assets such as financial accounts or real estate as a way to pay for business debts or dealings.  That is why it is called a limited liability company - it restricts how much members are liable for.    Name Reservation Another lesser-known benefit of an LLC is that it reserves your LLC’s name in your state. When you register your LLC at the state level, it prevents other businesses in your industry from using it.  This is a way of legally proving that your business actively uses the name without going through the time and expense of copyrighting it.    Less Red Tape An LLC also involves less bureaucracy than other types of business structures. Setting one up is relatively quick and straightforward.  Since it has fewer compliance requirements than others (like corporations or partnerships), it is one of the quickest ways to set up a business.    Tax Flexibility  An LLC provides more options when it comes to taxes, too. You can either choose to pay taxes as a corporation or a sole proprietorship.  Many LLC members enjoy the freedom to choose how to handle taxes. Often, members decide to allow business profits to go directly into their bank accounts. Then, they pay a tax on the profits on their personal federal income tax returns.  When they do it this way, filing taxes is easier than taxing your business at the corporate level.    Simple Management Lots of people appreciate how easy it is to manage an LLC. Since all of the members have an equal say, it relieves the owner from sole decision-making.  LLCs also make it easy for small businesses to hire professional managers to run the business for them.    Drawbacks of an LLC  Depending on how you look at it, some people view these benefits as negatives.    Members are Self-Employed The IRS taxes LLCs as partnerships by default, so members are self-employed and pay their own Social Security and Medicaid taxes.  Some business owners don’t want to pay self-employment tax; they prefer to pay taxes through a corporation.    Startup Costs It costs money to form an LLC, and there are ongoing fees related to it. This is why some people decide to just stick with a sole proprietorship.  Even though they don’t cost very much to create, even the most negligible fees might persuade a small business to refrain from establishing an LLC.    Difficult to Transfer Ownership The other drawback of an LLC is that all members must vote on and agree to any ownership changes that the business owner wants to make.  Instead of just selling stock or shares, members must agree before adding new members or changing ownership.  This is only a negative experience if there are multiple members in the LLC or it is formed as a partnership and the partners don’t get along.    Who needs an LLC? Now that you know what an LLC is, is it right for you? The best way to decide this is to discuss your business and financial situation with a CERTIFIED FINANCIAL PLANNER.  You might need an LLC if:  You run a business as a sole proprietor Your business has any debts Your business is at risk for litigation  You run your company with a partner or a group of people  Of course, this list isn’t exhaustive. It’s best to speak with an experienced professional who can look at how your business is organized and help you decide which way to set it up further.   Should you start an LLC? Contact us. Knowing what an LLC is for dummies doesn’t take your specific needs into account. Now that you know the basics, it’s time to figure out if it makes sense for your small business.  If you want to discuss the benefits further, contact a financial advisor in Green Bay, WI, a financial advisor in Eau Claire, WI, or a financial advisor in La Cross, WI. They will look at how your business is structured and whether an LLC is the best course of action for you.  

The holidays are upon us, and the pressure is on. There is so much to do to prepare for the holiday season and the holiday bustle can leave you wondering if this is really the most wonderful time of the year. This year, the average American household plans to spend over $1000 this holiday season on gifts, decorations, travel to family and holiday meals. This, on top of normal monthly spending can make November and December some of the most expensive months of the year. Without a plan of attack, December’s holiday magic can easily turn into January’s credit card nightmare. Plan Ahead When it comes to gifts, know who you plan to buy gifts for and how much you intend to spend on them. Stick to the budget. It is easy to get trapped into spending too much especially if you overspend on someone, you may be tempted to buy more for another to make the gift even. If you determine what you are spending, you can determine what you think you’d like to buy to before you enter the store. Use a holiday savings account to save a little bit each month to avoid feeling overwhelmed when the time to shop comes. Keep the store ads with you. Many stores will price match, and this could save you a stop or help you secure an item that you are having difficulty getting at another store. Don’t underestimate how planning your shopping trip ahead can save you both time and money. Plan your route and keep your list handy. By avoiding driving all over town, and potentially backtracking, you can save money on gas and save time. Eating a healthy meal before you head out will put you in a good frame of mind and help you curve the temptation of spending unnecessary money on meals out or stopping for snacks while out and about. Avoid shopping at times that attract crowds like mid-day Saturday and Sunday. By shopping at off times, you can move through your list quickly and with less frustration. Although this one won’t help your pocketbook, time is money and piece of mind is priceless. Shop Online Using a credit card is the most secure way to shop online. It is easier to dispute a fraudulent transaction on a credit card than with a debit card. Remember not to charge anything you cannot pay off when the statement comes. Check multiple websites to make sure that you are getting the best deal. Aim to get free shipping and check for coupon codes. Avoid paying more for something than you should. Items like gaming consoles and other highly desired items are often sold brand new by private parties for a healthy upcharge to parents who are willing to pay anything just to get something that they can’t find in the stores. These items can often be purchased at a fair price after the holidays when the demand drops. Avoid Holiday Scammers and Fraudsters Be mindful of your purse, wallet and credit cards. Watch for skimming devices and be discreet about how you enter you pin number. Track packages and know when they are being delivered. Arrange to have them shipped to your place of employment or to have a neighbor pick them up off your porch. Be wary of vendors selling goods online who ask for gift cards as payment. This is a common internet scam, and it is likely that you will not receive the goods you purchased. Review your credit card statements often. Report and dispute any suspicious transactions right away. By being prepared and organized, you can save time and money so that you can focus on what really matters this holiday season. May your shopping be stress free and may your holiday season be merry and bright!   Rebecca Agamaite, MBA Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife.   Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

The time to get ready is well before the time comes. Here's how to approach some important talks and what you need to cover. Whether the time is now or somewhere down the road, there are steps you can take to make your life — and their lives, too — a little easier. It’s Time for a Chat The first step is talking to your parents. How will you know when it's the right time to do this? Look for indicators like failure to take medication, new health concerns, diminished social interaction, general confusion or even fluctuations in weight. What can make things more difficult is when the parents are unwilling or unable to talk about their future. This can happen for a number of reasons, including fear of becoming dependent, resentment toward you for interfering, reluctance to burden you with their problems, or because they are already incapacitated. Without their cooperation, you may need to do as much planning as you can without them. However, if their safety or health is in danger, you may still need to step in as a caregiver. If you're nervous about talking to your parents, make a list of topics that you need to discuss. This will help ease tension, and you will be less likely to forget anything. If there is some reluctance on the part of your parents, it may be wise to cover your list over several visits so that it doesn’t sound so much like an interrogation. Get Personal Once you've opened the lines of communication, a good next step is to get as much information as you can to prepare a personal data record. This document lists information that you might need in case your parents become incapacitated or die. Here is some information that should be included: Bank and investment accounts Estate documents like wills and trusts Funeral and burial plans Medical information Insurance information Names and phone numbers of professional advisers Real estate documents Be sure to write down the location of documents and any relevant account numbers. It's also a good idea to make copies of all the documents you've gathered and keep them in a safe place. Explore Living Arrangements Eventually you’ll need to have discussions on more sensitive subjects like your parents’ wishes on medical care decisions and future living arrangements. Where your parents eventually live will depend on how healthy they are. As they grow older, their health may deteriorate so much that they can no longer live on their own. At that point, you may need to find them in-home health care, health care within a retirement community or nursing home, or you may insist that they come to live with you. If money is an issue, moving in with you may be the best or only option. Keep in mind this decision will impact your entire family, so talk about it as a family first. Make It a Family Affair The physical and financial responsibility of taking care of elderly parents may fall on several adult children, and usually not all are equally able to bear the burden. The result can be resentment, even hostility, and the breakdown of family cooperation. The key to keeping harmony is communication when caring for your aging parents. Family meetings on a regular basis are key to keeping tensions down and everyone informed. Families can talk over who can pay for care when it's needed, and who can do physical work for a parent. Even if a family member lives at a distance, there are things they can do. Consolidating accounts in one bank, setting up online access to paying bills and overseeing financial management are areas that can be handled from anywhere in the U.S. Ask for Help The key is to not try to care for your parents alone. Besides getting the family involved, there are also many local and national caregiver support groups and community services available to help you cope with caring for aging parents. If you don't know where to find help, contact your state department of elder care services, or call: 1-800-677-1116 to reach the Elder Care Locator, an information and referral service sponsored by the federal government that could direct you to resources available in your area. Source: Kiplinger.com

When illness or injuries occur, paying for out-of-pocket medical expenses can be overwhelming for many people. By planning ahead and saving a little bit every month you can feel prepared to deal with unexpected medical costs. If you are a participant in a high deductible HSA eligible health insurance plan, a Health Savings Account can be an important part of your overall financial picture. Which insurance plans are eligible? For 2021, an HSA eligible plan must have a deductible of at least $1,400 for and individual and $2,800 for a family plan. HSA eligible plans require the insured to pay for most expenses out of pocket until the deductible is met.  It is important to understand that not every insurance plan is HSA eligible even if the deductible is high. How do HSA’s work? An HSA account allows you to put pre-tax dollars into a savings account, then use those dollars to pay medical expenses without ever paying any tax on the dollars used for the payment. The maximum annual deferral amount depends upon the type of health insurance coverage you have.  Also, the annual contribution limit usually increases slightly each year so you may want to adjust accordingly. HSA eligible health insurance plans may cost less which may allow you to choose to invest what you are not spending on premiums. How much can I save? For individuals with single health insurance coverage the annual contribution limit is $3,600.  For individuals with family health insurance coverage the annual contribution limit is $7,200.  If you are over the age of 55, you can contribute up to an additional $1,000 per year to increase, your maximum annual contribution to $4,600 or $8,200 depending upon the type of health insurance coverage you have. Contributions can be deductible on your tax return if they are paid out of pocket instead through salary deferral from your employers’ payroll. Additional Benefits Some additional advantages an HSA account provides include: At the age of 65 you can treat your HSA like an IRA and take distributions for purposes other than medical expenses without penalty, although you will pay income tax on the distribution. You can invest the assets in the account no matter what your income is. There are no income limits to be eligible to contribute unlike an IRA.  Once your income goes above a certain level you can no longer make tax deductible contributions to an IRA. For higher income earners an HSA is one of the few ways to save money tax deferred. You can do a once in a lifetime tax free rollover from an IRA to an HSA up to the annual contribution limit. However, you must remain in a high deductible health insurance plan for at least 12 months following the rollover. You are not allowed make rollover contributions to an HSA from a 401(k), 457, or other retirement plan. You can first roll money over to an IRA and then do a rollover from the IRA to the HSA There are options available for those who want to grow their HSA in the equities market. This can be attractive for those who don’t typically spend down their HSA on an annual basis or those who have accumulated a larger balance. Can I use my HSA to pay health insurance premiums? You can only use your HSA to pay health insurance premiums if you are collecting Federal or State unemployment benefits, or you have COBRA continuation health insurance coverage through a former employer. Nathan Deets CFP Investment Advisor Representative & Tax Preparer Nathan joined the firm in 2006. As an Investment Advisor Representative, he is part of the team that designs our clients’ investment portfolios, prepares individual tax returns, and helps our Advisor Team with financial planning for our clients. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

If you’re like many people, the holidays cause more financial stress than any other time of year. Figuring out how to afford gifts, décor and food for the big feast is often overwhelming. You might never be able to remove all of your holiday money worries, but you can alleviate some of them. Even though your shopping list might continue to grow while your wallet shrinks, you can enjoy this season without breaking the bank. Here are five ways to survive holiday financial stress. Set a budget Review your earnings and expenses, and then decide how much you’re willing to spend on holiday gifts, food and other items. Consider making a list and assigning each item a specific dollar amount. This will help you overcome the temptation to overspend. » MORE: How to Create an Early Holiday Shopping Budget Plan your shopping Whether you’re headed to the grocery store or braving the crowds at the mall, know what you intend to buy and who it’s for. Sticking to your list will also help keep you from buying unnecessary items and prevent overspending. It’s easy to make impulse purchases with all the eye candy in stores this time of the year, but you won’t fall prey to these consumer tricks when you know what you need.   Don’t buy it if you can’t afford it A 2016 report from investment management firm T. Rowe Price showed that 25% of parents have dipped into their emergency savings or 401(k) retirement plan or taken out a payday loan in order to cover holiday expenses. If you can’t afford to buy your children something on their wish lists without taking out a loan or borrowing from another account, the best option is to not buy it — it’s OK to say no. Your children will survive. Shortchanging your savings or going into debt is ultimately more detrimental to your family than skipping a few presents. Get creative with gift giving You can give thoughtful gifts while spending a fraction of the cost. If you’re crafty, handmade presents are extremely thoughtful. And if you’re lacking in artistic abilities, you can always give the gift of your time. Cooking someone a meal, giving new parents a night out while you babysit, or offering to clean someone’s house are gifts that recipients will love and will cost you nothing. Remember what the season is all about It’s easy to be swept up in the consumerism of the season, but remember that it isn’t about money and materialism. Focusing on its religious purpose or enjoying time with your loved ones will keep you from stressing over less important things. With a little planning and creativity, it’s possible to get through the holidays and avoid debt or wiping out your savings account. And you’ll feel even less stress when you reach January in good financial shape. Source: Nerdwallet

The Thanksgiving dinner table offers a great opportunity for parents to tutor their children towards future success. As you pass the mashed potatoes, consider passing along family stories—your stories—of planning, saving and frugal spending. Make the stories lively and real. Give your kids a reason to believe your stories could someday be their own stories. Here’s a sampling of subject-course pairs you might find useful in your never-ending quest to boost your child’s success aptitude: Appetizer Things start off light, usually a raw vegetable tray or a bowl of fruit topped with a dollop of raspberry sherbet. It’s really just a tease for what’s to come. This is the course when the youngest of children are most engaged. Capture that enthusiasm with tales from your youthful exploits of lemonade stands, paper routes or the equivalent. Don’t emphasize the work (but don’t ignore it, either). Instead, glorify the fruits of that labor. The money you earned as a kid might seem like small change now, but it was a wad of cash back then. What joys did you convert it into? Do your kids have similar wants? How might they acquire those goods without writing a check on the Bank of Mommy or Daddy? Soup There’s nothing like a light broth to warm your insides without filling you up before the main course. The younger kids might begin to sway here, but the serious always appreciate this delicious portion. Liquidity is a common need at almost all stages of life. Do you remember a time when you thought you’d get by on credit only to find the check-out counter said “cash only”? What did you do? What lesson did you take away from that? How did that experience better prepare you for the next time? When was the next time and how important was it for you to have ready cash at that point? Remember, you’re telling a personal story involving money, but it should evoke more feeling and less finance. Your kids will retain it better when they are entertained by your vivid emotion than lectured with your dour experience. No matter how solid the plan, there’s always room for contingency. That’s what the extra cash is for. Plan on it, even if you’ve never used it. Salad Unlike the previous courses, the salad has a more tactile impression. It’s so real you can hear it crunch in your mouth. And the sweet vinegar base of its dressing tingles in your mouth. It’s a savory sensation. Everybody likes salad—or at least they say they do. Here’s your chance to regale them with the grandness of green. And by “green,” make it obvious you mean money. This is the story of the grand slam, your biggest success, the time you took a chance and reaped a much larger reward. Yes, risk is OK. It’s more than OK. It’s a requirement. The Pilgrims took a risk. Weave the Thanksgiving celebration into your own story of the risk you took to get the green. Go ahead, add some croutons to the dish if you like. And don’t worry if some of your retellings include a turkey or two. After all, sometimes the best way to learn is to make mistakes first. The bonus for your kids is they don’t have to make the same mistakes you did. They can make their own mistakes and then accomplish more than you did! Entrée We’ve now arrived to the meat and potatoes of the meal. These represent the heavy-duty nutrients, the headliners on this cavalcade of culinary stars. Sure, you’ve got a few green beans and a cranberry concoction on the side, as well as some rolls and butter to further fill your belly. But the actual attractions are the turkey, stuffing and sweet (and/or mashed) potatoes. Everything before this was just practice. Now comes the real thing. The road to success contains many enjoyable and satisfying side dishes. The road, however, remains the main dish. It is the spine of your success. It may contain multiple careers in different industries, but it always has one common thread: you. If you’ve primed them properly, your children will yearn to hear those events which have framed your success. They’ll now be ready to absorb your adventures in the jungles of long hours, hard work and corporate competition. They want to listen to your winning strategies because they’ll wonder if they’re made of the same stuff. Over the years, as they grow more confident, they’ll pay rapt attention to those same stories again in hopes of determining how to employ similar strategies in their own lives. Don’t hesitate to allow them to extract the nitty gritty details from you. Be proud of what you’ve done. Be more proud of what your kids will do. Dessert At this point, everyone sits sated, too filled to move. Yet, the sweet temptation of pumpkin (or apple, or cherry, or chocolate banana or even lemon meringue) pie calls you. And you cannot deny it. You casually nibble at small, bite-sized pieces in a relaxed, elongated way. This being the final course, there’s no rush, there’s no deadline. There’s only calm, easy, comfort surrounded by those you love most. Isn’t that what retirement is all about? Doesn’t this part of the meal offer the perfect metaphor for a life well lived, the epitome of success? Let your children know of your retirement plans, how they came to be and how you’ve prepared for them over your entire working life. Excite them by showing your own excitement for retirement. Describe how it represents a new beginning, one that you’ve long looked forward to. You’re either on the cusp or well within demonstrable financial success. You are the role model for your children. No one else is. No one else can be. No one else should be. Embrace this duty and share your success with your children. Heck, if you’ve succeeded in getting them pumped up to achieve their own financial success, the time is ripe to bring up the idea of having them start on the road to a comfortable retirement by showing them how to establish a Child IRA. Finally, as they sip from their glass and you drink from your cup remind them of this crucial fact: drinks are a separate charge. That’s when that contingency cash in your pocket comes in most handy.   Source: Forbes

Americans have slashed spending on restaurants, travel and live entertainment. But we’re spending more on subscription services—especially video-streaming subscriptions. A recent survey on digital media trends by Deloitte, the tax and business consulting firm, found that not only have more consumers signed up for video-streaming services since the COVID shutdowns began, but the average streamer pays for more services than ever. “In the early days of the coronavirus, there was a significant shift in viewership in all kinds of TV,” says Bruce Leichtman, of Leichtman Research Group, which surveys TV-consumer behavior. With 80% of Americans owning internet-capable TVs, the vast majority have both a pay TV service (meaning cable or satellite TV, or live TV streaming over the internet) and a streaming video-on-demand service (such as Netflix or Hulu), according to Leichtman. Since the pandemic hit the U.S., nearly 10% of consumers have both added and canceled at least one paid video-streaming service, according to the Deloitte survey, suggesting that more churn is in store as consumers seek more value. And as more media providers join the fray—including Disney+, Apple TV+ and HBO Max—competition is growing and putting pressure on providers to expand content and reduce prices. How to save on streaming With so many streaming choices, it’s tempting to load up on subscriptions—but the cost can quickly add up. If you already have a few streaming services, consider canceling the ones that you use the least. You can always re-subscribe when a service releases new content or adds a feature that makes it more worthwhile. And with the pandemic pressing pause on many sports, you may not need to subscribe to a live TV service if you originally signed up primarily to watch games. A digital antenna may be all you need for access to local channels. Sharing subscriptions is another way to save. Some services make this easier than others—the Netflix premium plan (which allows four simultaneous log-ons) and Hulu (with the $9.99-per-month unlimited screens add-on) are particularly family-and-friends friendly. If you want access to a single show, you may be better off paying per view than subscribing to a service. For example, an HBO Max subscription costs $14.99 per month, but one episode of Game of Thrones on Amazon’s Prime Video costs $3.99—or $24.99 for the entire season. Bundling services is another way to trim costs, and the savings are even greater if you are willing to put up with some ads. The ad-free Hulu, Disney+ and ESPN+ bundle goes for $18.99 per month, but you can also do the same bundle with the ad-supported Hulu version for a monthly charge of $12.99. Take advantage of free viewing, such as Peacock TV’s standard plan, as well as free trials. Netflix offers a 30-day trial, and most other services let you sign up free for a week. You can find longer free trials with certain services if you download them from a particular device or if you also subscribe to another related service. With AT&T TV Now, for instance, you can get a free trial of HBO Max for 30 days, rather than the standard seven days. And you can get a free year-long subscription to Apple TV+ with the purchase of an iPhone,  iPad, iPod touch, Apple TV or Mac. Sprint includes Netflix subscriptions with some of its cell phone plans. Video on demand Streaming services have expanded, especially with the introduction of newcomers HBO Max and Disney+. But with all of the available choices, it’s tougher to figure out what gives you the most bang for your buck. Look at the options and piece together what works best for you based on the content you value most, your budget and what you can get for free, suggests Dan Rayburn, a streaming-media expert. While there are many options, the following streaming services are the major players. Amazon Video This is a good choice to sample a wide variety of TV shows and movies, as well as a host of popular original content a la carte. Recent hits include the Emmy-award-winning series The Marvelous Mrs. Maisel and an adaptation of Philip K. Dick’s The Man in the High Castle.   Amazon Prime members ($12.99 per month or $119 per year) get access to Amazon’s streaming video library, or you can choose a stand-alone Amazon Video subscription ($8.99 per month). Apple TV+ Apple releases new original content every month. Popular titles include dramas inspired by true events, such as The Morning Show and The Banker. For kids and families, Apple TV+ offers such titles as Snoopy in Space, Helpsters (from the makers of Sesame Street) and the Apple original Ghostwriters. Apple TV+ also has a wide array of documentary films and original series. If you buy an Apple device, Apple TV+ is included free for one year. A monthly subscription is $4.99 per month after a free seven-day trial. You can also share your subscription with up to five family members. Disney+ The arrival earlier this year of Disney+ from the media Goliath caused existential angst among the other streaming services. That’s because a subscription gets you access to the full library of Disney and Pixar classics, Marvel epics, and the Star Wars sagas. The live-action film version of the musical Hamilton arrived on July 3, and Beyoncé’s digital album, Black Is King, was released on Disney+ on July 31. You can also watch Artemis Fowl, a sci-fi fantasy based on the popular series of young adult books, originally intended for release in theaters this year. This fall, Disney is set to release The Right Stuff, a series about the early days of the NASA space program based on Tom Wolfe’s bestseller. The standard Disney+ plan costs $6.99 a month. It is no longer offering a free trial. HBO Max Unlike HBO Now and HBO Go, HBO Max is a stand-alone streaming platform on which you can stream all HBO titles, plus other popular series and blockbuster movies. HBO Max also plans to unveil new, exclusive originals for everyone in the family. The service has an expansive library of TV favorites, such as Friends and Adventure Time, combined with the full HBO library of exclusive originals like Game of Thrones and Westworld, plus classic movies like Casablanca and Hayao Miyazaki’s Spirited Away. HBO Max costs $14.99 per month. You can sign up for a seven-day free trial. Hulu Hulu also streams popular TV shows, films and a wide range of exclusive content, including critically acclaimed TV series and films. For example, The Handmaid’s Tale and the 2020 Academy Award winner for Best Picture, Parasite, are Hulu exclusives. Upcoming original releases include The Dropout, starring Saturday Night Live’s Kate McKinnon, based on the ABC News investigative podcast, as well as the book-to-screen adaptation of Nine Perfect Strangers, starring Nicole Kidman and Melissa McCarthy. Hulu offers two options for video-on-demand subscriptions. The base price is $5.99 a month for streaming with advertising, but for $11.99 a month you can get the same service without ads. Hulu subscribers can stream from no more than two screens simultaneously, but you can add unlimited screens to either Hulu plan for $9.99 per month. Netflix The 23-year-old subscription service offers a wide variety of award-winning TV shows, movies, anime and documentaries, all commercial-free. Net­flix dominated the Emmy awards this year, surpassing HBO for the record for most nominations ever—among them Ozark, The Crown, Stranger Things and Unorthodox. The service also recently added some notable Oscar winners to its streaming library, including Eternal Sunshine of the Spotless Mind and Jurassic Park. Netflix offers three plans, all of which grant access to the full library and can be canceled at any time. The premium plan goes for $15.99 a month and offers Ultra HD streaming quality and the ability to watch content on four devices at a time. The standard plan, for $12.99 a month, offers high-definition streaming, and you can watch on two devices at a time. The basic plan, at $8.99 a month, will get you standard-definition streaming limited to one device at a time. If you have not previously subscribed or it has been a while since you have, you can sign up for a 30-day free trial. Live TV streaming services Internet live TV streaming services, a subcategory of pay TV, offer an alternative to consumers who want to forgo expensive cable or satellite TV but still want access to live content, such as sports, news and local channels. Sometimes referred to as “skinny TV,” live TV streaming services generally offer fewer channels than traditional pay TV but at lower prices and without locking you into a contract. Subscribers to traditional pay TV pay upward of $100 a month, on average, according to a survey by Leichtman Research Group. Internet live TV streaming services typically cost from $30 to $65 a month (with no installation fees). AT&T TV Now AT&T offers two versions of its streaming service, Plus and Max. Both let you stream live prime-time favorites, breaking news, nonstop sports and thousands of on-demand titles. At $55 per month, Plus offers more than 45 channels, while Max, at $80 per month, offers more than 60 channels and considerably more sports coverage. Both services provide ESPN and NBCSN, but Max more than triples the number of sports channels and includes HBO Max. Nickelodeon, Nick Jr., Cartoon Network and the three Disney channels are available on both versions. Fubo TV For $54.99 a month, you get 110 channels of live news, sports and entertainment, as well as 30 hours of DVR space and streaming on two screens at once. The family package ($59.99 per month) adds 500 hours of DVR space and an extra screen. The Ultra package ($84.99 per month) builds on the family plan with Sports Plus—24 additional sports channels, including international offerings beIN Sports and TUDN—as well as extra news and entertainment channels. Fubo also recently added ABC, Disney, ESPN and National Geographic to each plan. Hulu+ Live TV You get live sports, news and programming on more than 60 channels, including ABC, CBS, CNN, ESPN, Fox and MSNBC, plus local news channels in many cities. You can stream live games (when available) from major college and pro leagues, including the NCAA, NBA, NHL, NFL and English Premier League (football). For kids and family, Hulu+ Live TV also offers a Kids profile, which consolidates kids’ channels such as Disney and Cartoon Network in one place. And Hulu+ Live TV offers full access to the Hulu streaming library (the ad-supported version). The monthly charge is $54.99, after a one-week free trial. You can watch on two screens at a time or pay an additional $9.99 per month for the unlimited-screens add-on. You can add on DVR storage of up to 200 hours with full fast-forward capability for $9.99 a month (otherwise you’re limited to 50 hours with no skipping past ads). Peacock TV NBC’s new service gathers content from the network’s various channels in one place. The standard account (free, with no credit card required) has live news from NBC News, CNBC, MSNBC and E! News. You also get a handful of live TV features and a library of movies and TV shows for on-demand streaming, including kids’ shows and movies. Peacock Premium costs $4.99 per month after a seven-day free trial and offers full access to Peacock’s original content; the ad-free Premium option costs $9.99 per month. Both Premium versions also have live sports, including English Premier League football games. Sling Sling has two options, each for $30 a month. Sling Blue offers 45 channels that are more focused on news and entertainment, including Fox News, MSNBC, CNN and Bravo. Sling Orange, with 30 channels, has more sports coverage and family-friendly fare, including ESPN, HGTV, CNN, A&E and the Food Network. Free trials last only three days, but Sling is also promising a one-year price guarantee at sign-up. For kids and family, Sling Blue offers Nick Jr., Sling Orange has Disney, and both have Cartoon Network. YouTube TV With more than 85 channels and unlimited cloud DVR storage, YouTube TV is the Cadillac (or Tesla) of live TV streaming, at the upscale price of $64.99 a month. You can have up to six accounts per household and watch on up to three screens simultaneously. Content-wise, YouTube TV gets you wide access across a broad range of categories. For sports, it offers the NBA and MLB networks, the Tennis Channel, the Golf Channel, ESPN, and NBC Sports. You can also tune in to PBS, BET, Comedy Central and Nickelodeon, in addition to local channels and ABC, CBS, Fox and NBC. For kids and family, YouTube TV offers three Disney channels—Disney, Disney XD and Disney Junior—as well as Cartoon Network and PBS Kids. Source: Kiplinger

Home values rose across the country in 2019, which means many homeowners' property taxes are now going up, too. The taxes can hit particularly hard in states with the highest effective property tax rates -- New Jersey, Illinois, Texas, Vermont and Connecticut -- now that federal deductions for state and local taxes are capped at $10,000. If you’ve lost your job or suffered other financial setbacks because of the coronavirus pandemic, check with your county or other jurisdiction for property-tax relief. A number of states and counties have extended deadlines for property tax payments or offered other forms of relief. For example, several counties in Washington have delayed the first of two annual property tax payments from April 30 to June 1. West Virginia extended the deadline for payments for the second half of 2019 from April 1 to May 1. Iowa has suspended interest and penalties on late property tax payments. If you’re unable to pay on time and your state or county hasn’t extended the deadline, contact your property tax office. You may qualify for a program that will waive fees or interest on late payments. If your property tax bill has increased significantly, you may have grounds for an appeal, particularly if the increase seems out of line with overall appreciation in your area. Most jurisdictions give you 90 days after you receive a new assessment to appeal, although some close the appeals window after 30 days, says Pete Sepp, president of the National Taxpayers Union. Some lawyers handle property tax appeals on a contingency basis, but most homeowners can appeal on their own, Sepp says. Plenty of property owners challenge their assessments each year, and between 20% and 40% of them win lower assessments and lower property tax bills. The following steps will show you the way to success.   Step 1: Know the Rules Schedules vary, but local governments commonly send assessment notices to homeowners in the first few months of the year. As soon as you get yours—or even before—check the deadline for challenging the value. You may have just a few weeks. And be sure you know how your locality assesses property. Some set the tax assessment at a percentage of market value—80%, for example—so don't be smug if you get a $90,000 assessment on a home you think is worth at least $100,000.   Step 2: Catch a Break When you get your property tax bill, check it for your tax rate, assessment figures and payment schedule, and make sure that you're getting the tax breaks you deserve. Some states allow anyone who owns and lives in a primary home to shield a portion of its value from taxation. You may be eligible for credits based on your income or status as a senior citizen, veteran or disabled person. In Florida, for example, all homeowners are eligible for a homestead exemption of up to $50,000; those 65 and over who meet certain income limits can claim an additional $50,000. Illinois Gov. J.B. Pritzker recently signed legislation that will make it easier for seniors in Cook County—which includes Chicago and is the state's most populous jurisdiction—to apply for a property tax break of up to $8,000 a year. Rebates and other property tax breaks aren't automatic: you usually have to apply for them and show proof of eligibility. Contact your state's department of taxation or visit its Web site to see what breaks are available to you.   Step 3: Set the Record Straight Check your property's record card, which you'll find at your assessor's office or possibly on its Web site. This is the official description of your house, and if you see an outright error—indicating four bedrooms and three-and-a-half bathrooms for your two-bedroom bungalow, for example—the assessor may fix the problem on the spot, reduce the assessed value and your tax bill. That'll save you the trouble of a formal appeal.   Step 4: Size Up the Neighbors We'd never tell you to keep up with the Joneses, but comparing your property to similar ones in your neighborhood will determine whether you have a solid case. Pull up property cards of several homes of similar age and square footage and with the same number of bedrooms and bathrooms to see how their assessments line up with yours.   Step 5: Build Your Case If you find that your assessed value is considerably higher than several similar homes, you may have grounds for appeal. But even if the assessment falls into the middle of the pack, it's not necessarily fair. Maybe your house has a leaky basement or lousy grading that doesn't allow you to have a garden. The assessment should be based on the market value of your home; if your place has issues that would turn off buyers, now's the time to own up to them   Step 6: Fight City Hall The process varies by locality, but you'll likely send your appeal and your evidence—data on comparable properties, blueprints, photographs, repair estimates—to the assessor for review. You should get a verdict within a couple of months. If you're dissatisfied, take your case to the appeals board and put your persuasive skills to work. Don't whine, and save your opinions on politics and tax rates for elected representatives who vote on those matters.   Step 7: Enlist Troops If you don't have time, or the stomach, to do battle yourself, get a hired gun to do the legwork for you. A professional appraiser can provide the strongest evidence of your property's worth. If your community allows outside appraisals—and if you're willing spend at least $250 -- find an appraiser with national certification, such as through the Appraisal Institute or the American Society of Appraisers. Don't fall for solicitations from law firms or other services saying they'll assist you in return for a high percentage of the savings on your bill—it's not worth the cost.   Step 8: Reap the Rewards If you need added incentive to bring a skeptical eye to your real estate appraisal, remember this: A successful appeal is truly the gift that keeps on giving, year after year. Raise a toast to your success.   Source: Kiplinger