28January
2016
Alternative Investments – Going Mainstream

Recent years have witnessed the mainstreaming of alternative investments for certain accredited investors.¹ McKinsey & Company, a global consulting firm, found that individuals in the U.S. have put more than $625 billion into alternative investments. By year end 2015, McKinsey expects alternative investments will represent 13 percent of sales of all U.S. mutual funds. Mutual funds are sold by prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before investing. A prospectus containing this and other information about the investment company can be obtained from your financial professional. Read it carefully before you invest or send money. The…

28January
2016
Equity Recap: An Optional Capital Infusion

Private equity funds offer a way to get a capital infusion for your company for a period of time while maintaining a role in its operation and avoiding a sale or a merger. It’s called equity recapitalization and it typically involves selling a minority or majority stake in your company to a private equity fund. With an equity recap, you retain part-ownership and remain involved in the daily operations of the company for an average of five years. Following that period of restructuring and growth, the equity fund typically sells its ownership stake. Then, a second deal is arranged with the…

28January
2016
A Brief History of Estate Taxes

Federal estate taxes have been a source of funding for the federal government almost since the U.S. was founded. For Richer or Poorer Regardless of your net worth, it’s critical to understand your choices when developing an estate strategy. In 1797, Congress instituted a system of federal stamps that were required on all wills offered for probate when property (land, homes) was transferred from one generation to the next. The revenue from these stamps was used to build the navy for an undeclared war with France, which had begun in 1794. When the crisis ended in 1802, the tax was…

14January
2016
Establishing and Maintaining Effective Internal Controls

Your company needs an effective internal control environment to prevent losses from mismanagement, theft, fraud, corruption, and embezzlement. Establishing a good atmosphere starts at the top by making sure the leaders of your organization demonstrate integrity through their actions, follow ethical business practices, manage proactively, and pay attention to details. Here are some questions to ask in four key areas when evaluating your company’s current internal control environment: 1. Basic Internal Control Yes No N/A Are the duties of your company’s management and rank-and-file employees segregated to prevent financial fraud and cover ups? For example, does the person who handles…

14January
2016
Advantages and Disadvantages of Roth IRAs

Saving for retirement is critical to financial security. Fortunately, the government provides some tax incentives, if you qualify.  Even though Roth IRAs have been around for more than a decade, many people are not aware of exactly how they work. They also may not know that there are no longer income restrictions in place to convert a traditional IRA into a Roth. If you qualify, you can make a contribution to a Roth IRA of $5,500 in 2016 or $6,500 if you are age 50 or older (unchanged from 2015). Here are the basic advantages and disadvantages of the accounts, as…

14January
2016
Avoid These Common Estate Planning Mistakes

To ensure your estate is distributed to your intended heirs at a minimum estate tax cost, you need to avoid these common estate planning mistakes: Mistake: Believing you don’t need estate planning because your estate won’t be subject to estate taxes. Even if your estate is less than the exclusion of $5.45 million in 2016 there are other reasons to plan your estate (up from $5.43 million in 2015). You probably still need a will to provide for your estate’s distribution and to name a guardian for minor children. You may also want to consider a durable power of attorney…

04January
2016
Hertz Herson New Partner Announcement

We are honored to announce the appointment of John Cuccinello, Vince Oliva and Eli Perl as new Partners to the firm effective January 1, 2016. With a combined 55 years of experience in public accounting, John having joined us two years ago after 13 years with Andersen and PwC, Vince having over 7 years with us during his 30 years of experience and Eli having grown with the Hertz Herson family for 10 years, they bring a wide range of skills, both technically and managerially to our team. John provides extensive technical support and guidance to our audit clients and HH team…

01January
2016
Happy New Year from Hertz Herson LLP

Wishing you a joyous New Year from our family to yours! Cheers, Hertz Herson LLP