Keeping Good Records is Good Business 

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Maintaining good records is important to help meet your tax and legal obligations. The right record keeping system not only helps satisfy these obligations, but it may save you money and time. Here’s what to consider for your record-keeping system. 

What Records Do You Need to Keep? 

The first step is identifying the records you need to maintain. The obvious examples include leases, contracts, payroll and personnel records and a range of accounting and finance information, such as invoices, receipts, checks, payables, and inventory. Please consult a professional with tax expertise regarding your individual situation.

How Do You Want to Keep Them? 

Record maintenance can take three basic forms: 

Paper-based

It’s old school, but maintaining records in file folders stored in a metal cabinet may be sufficient, though at the risk of files being damaged or destroyed with no back-up. 

Computer-based

Maintaining records on computers save space and make records management easier. Consider backing up files and keeping them off-site. 

Cloud computing

Records are stored and managed on the internet, offering possible savings on software, reducing the risk of lost data and providing access from any location. 

What Software Should You Use? 

The right software can make life more productive; the wrong software may cost you time and money. 

When shopping for software, consider: 

The size of your organization. 

Do you want an easy-to-use package, or are you able to hire a dedicated employee to take advantage of a more sophisticated alternative? 

What sort of training and support is provided? 

Without the right measure of either, your software may not be productivity tool you envisioned. 

Is specialized software available? 

The needs of different professions can vary greatly. Specialized software may have capabilities not available with more generic software. 

What are its mobile capabilities? 

If you operate your business from the road, you may want your software to have robust mobile features.

 

This article originally written by our partners, West Bend Mutual Insurance Company. 
The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite. 
 

Should You Have More Than One Life Insurance Policy? 

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Did you know that September is Life Insurance Awareness Month? And though life insurance is important to discuss at any time of the year, some features of your life insurance policy go beyond standard conversations. 

For example, did you know that you can have multiple life insurance policies at once? One policy is often considered enough, but that may not always be the case. Below, we outline situations that may call for multiple life insurance policies. 

Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges, and there may also be income tax implications. 

You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments. 

When Would You Need More Than One Life Insurance Policy? 

Life insurance is designed to provide supplemental income to beneficiaries in the unfortunate event of a plan holder’s passing. However, a single policy may not be enough to cover all of the expenses of a family. 

Purchasing a second life insurance policy is an option for those who would like additional coverage. Greater protection for loved ones is the largest benefit of this approach, although paying for multiple policies can be expensive. Here are some situations that may call for the purchase of a second life insurance policy. 

Lifestyle Changes 

The birth of a child, changes in employment, or a new relationship are all examples of life changes we may think of when considering greater coverage. But another factor to consider is personal lifestyle changes, especially those that involve your health. If you’ve made healthy changes, then a new policy may cost less than before. 

As situations change, so do the monetary needs of those around you. Consider this when examining your life insurance needs. (1) 

Age 

According to the U.S. Federal Reserve, average family income decreases as the head of household reaches retirement age. However, the cost of life insurance tends to move in the opposite direction, increasing as one grows older. (2,3) 

For this reason, it may be best to establish a plan at a younger age. Consider your current expenses to determine whether this will be necessary. 

Asset Accrual 

Some financial goals will require long-term payment plans. Assets like cars and homes can take a while to pay off, increasing your monthly expenses by a specific amount for a given period. 

Depending on your situation, a second life insurance policy can help account for these added expenses, providing additional income for a period to help offset the added cost until assets are paid off. 

Often, these policies are set to different terms, and this strategy is typically referred to as laddering term life insurance. (2) 

Tracking Policies 

Multiple plans may provide more coverage, but be sure to keep track of each policy and its costs. Premiums alone are expensive, yet tens of millions of dollars in life insurance payouts go unclaimed every year. Be sure you have the right information to track any new and existing policies. (4) 

Whether you need more than one insurance policy will depend on your unique financial and personal situation. Be sure to reach out to an insurance professional to determine what coverage is right for you. 

  

We hope you and your families thoroughly enjoy September! Are you ready to update your insurance policies? Click here to get a quote today.

 

 

Sources 

  1. LegalandGenera.com, 2022 
  2. TheBalance.com, September 29, 2021 
  3. Statista.com, 2022 
  4. PolicyGenius.com, December 1, 2021 
This article originally written by our partners, West Bend Mutual Insurance Company. 
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.