Archive for the Retirement planning Category

Whitney Houston’s Estate is not BROKE!

Many reliable sources on the internet have label Whitney Houston’s estate as BROKE and in a financial bind.  Sources say that Whitney Houston was already on the brink of a financial calamity even facing bankruptcy.  Music Industry Insider Wayne Russo gives a full break down of Whitney’s liability to Sony Music Group, and why it may be a long time before her Estate would reap any of her music royalty wealth. (Read article here) But music royalty wealth is only one piece of a very big pie that heirs of Whitney Houston can profit from to continue her legacy.

Postmortem Riches

Celebrity wealth in death is not a new topic, and until Michael Jackson’s death in 2009, Elvis Presley reign as the highest paid dead celebrity.   Keep in mind that the bulk of wealth that is deriving from Elvis Presley is not music royalties.  Presley’s postmortem earnings come from Graceland admissions, licensing and merchandising and a Cirque du Soleil.  Licensing and Merchandising is a billion dollar industry and the advisors to these dead powerhouses know it; that’s why Elvis Presley Enterprises, Inc. (not to be confused with his estate) gross proceeds for 2011 were in the billions.

Whitney Houston’s Legacy & Deja Vu

Although the Estate of Whitney Houston maybe in debt to the Sony Music Group, for music royalties. Nothing is stopping the heirs in creating a new company that will continue to keep Whitney Houston’s legacy alive and bring in some of those postmortem riches. Let us not forget that when Michael Jackson died, once again reliable sources on the internet said is estate was in debt to AEG for $30-35 million, fast forward  2 1/2 years later, Forbes listed him as one of the highest paid dead celebrities in 2011.

© 2012, Lorillia Brown-Phillips.  All Rights reserved.

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Retirement Plan Options for Business Owners

Retirement planning is an important part of wealth accumulation, many business owners are aware of the Traditional 401(K), but are unable to meet the requirements of administering the retirement plan. Here is a list of six of the most widely used retirement plan options for business owners to consider.

 1. SEP-IRA. A retirement plan where the business owner makes contributions on behalf of the employee and his/or herself. The tax advantage of having a SEP-IRA is the contributions made for both the business owner and employee are tax deductible on the business owner’s personal tax return. The contribution limit for the business owner is either $49,000 or 25% of compensation.

 2. SIMPLE IRA. A small business with 100 or fewer employees can offer a retirement plan to the business. The employer (business owner) can get a tax deduction on his or her personal return. Employers share the cost of the contributions with employees. The match is 3% of annual compensation.

3. SOLO (K). Also referred to as a Single (K), Unit (K) or Personal (K), this retirement plan is best suited for business owners with no employees. If the business owner has family members who are employee’s contributions can be made by them as well.

4. Profit Sharing Plan. This plan allows the employer each year to determine how much to contribute to the plan, which is based on the company’s profit. The employer contributions are tax deductible, and the employee contributions are immediately vested.

5. Safe Harbor 401(K). Similar to a Traditional 401(k), employer (business owner) is required to make contributions on behalf the employees. The match is 100% of the first 3%.

 6. Employee Stock Ownership plan (ESOP). A deferred contribution plan that is invested primarily in employer’s company stock.

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