A Tax-Smart Strategy: Hire Your Spouse

If you are married and run your business as a sole proprietorship (or as a single-member LLC treated as a sole proprietorship for federal tax purposes), it can be a tax-smart move to hire your spouse as an employee. Then, provide most or all of his or her compensation in the form of payments from a medical expense reimbursement plan set up for your business. These plans are often referred to as “Section 105 Plans.” By using a Section 105 plan compensation strategy, you can claim business write-offs — on Schedule C of your Form 1040 — for the reimbursements paid…

Don’t De-Worse-ify When You Diversify

For an investor, managing money is a lot like managing manure for a farmer. Both live by the credo, “spread it around and it will grow.” But as both successful investors and farmers know, you’ve got to know how and where to spread money and manure, or they end up yielding stinky results — or even getting flushed away. While we can’t help with a manure problem, we do have definite thoughts about spreading money around — in a way that doesn’t cause your portfolio to take a turn for the worse when you try ma king it more diverse….