Issue Three

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It's Your Money!
Issue  3 - January 9, 2013
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Your Worst Nightmare and Most Dangerous Threat to Your Business

Though the unexpected death of one your business partners would be dreadful, the real nightmare begins when you have to determine how the business will survive after the loss.  Another question that might have to be answered is how to compensate his surviving heirs for his ownership in the business.  Unless you want one or more his heirs to be involved in your business operations, decision making, etc, it would be best to make a contingency plan for the death of one of your partners now. 

Not only should you plan for an unexpected death, you should plan for the disability, termination, or retirement of a partner or co-owner. The recommended way of creating a contingency plan is to fund a Buy/Sell Agreement in a Cross Purchase Agreement using life insurance policies.  This process is not complicated, and the advantages are as follows:

·         The surviving owners can use cash from the life insurance policy instead of the business to buy out the surviving heirs.

·         The life insurance policies can provide living benefits to the business owners via the cash value that will accumulate during the life of the insurance contract.

·         After consulting an accountant, the business owners may choose to pay their life insurance premiums via the business.

Though the process of setting up a Buy/Sell Agreement involves consulting with an attorney, it is well worth the effort to insure the survival of your business.  Call me to schedule a consultation to get started on your contingency plan.  It's your money . . . until you give it away.


Business Shout Out!

If the secret to American wealth lies within the freedom to own assets with deeds, titles, and articles of incorporation, this may be a good time to start looking for a property to purchase.  Here's a list of my preferred realtors.  Tell them RHFG sent you:


Natalie McCulley, 817-480-7060

Kevin Young, 972-977-2044

Lazar Hearns, 469-471-8663

Lynell Jones, 214-563-1193

Elaine Cook, 972-672-5641

Sarah Zafarano, 469-569-3019


·       Looking for a featured speaker for your group, association, organization, small business, etc? I regularly present "the 10 Principles of Money Mastery" to organizations just like yours. Call or email to make me your featured speaker!

Did you know?
60-70% of each one of your life insurance premium payments should/could go to your cash value accumulation?  Don't know how much of your current premium payment is going to cash value?  Call me.  I'll check it for FREE.

What's coming?

In future issues, businesses that have entered into a Joint Venture with RHFG will be members of the Business Advisory Council and will be featured in every issue of “It’s Your Money!”  Stay tuned.

And You Thought You Were the Only One Looking Forward to Your IRA/401(k)

If you thought you were the only one looking forward to the benefits of your qualified retirement plan (IRA/401(k)), think again.  As it turns out, Uncle Sam is also rubbing his hands as you work tirelessly to build your nest egg.  Your IRA, 401(k), TSA, 403(b), 457, pension plan, and/or profit-sharing plan is creating an intended and predictable tax result that Uncle Sam is anxiously anticipating when you decide to take your distributions.  And as your retirement plan grows tax deferred so does the amount of taxes you will eventually owe.  By investing in a qualified retirement plan, you have unknowingly decided to be taxed on the harvest of your investment instead of the seed of your investment.  Think about that for a couple of seconds.  Does that seem like a good investment decision?

Also, you and I have been led to believe that when we retire, we will be in a lower tax bracket.  At least three events may prove this to be unlikely.  First, if you pay your mortgage off by the time you retire, you will own your home, but you will no longer be able to claim the mortgage interest tax deduction.  Second, if you’re an empty nester, you will no longer be able to claim your children as dependents on your tax return.  Third and possibly the most troubling event is that with the deficit at $16 trillion and rising, no one knows what the income tax rates will be when you reach retirement age.  Do you think the income tax rates will decrease, remain constant, or increase to meet the steadily increasing deficit?

Not to add insult to injury, but do you realize if you die before you exhaust your IRA/401(k) funds, your beneficiaries will be taxed on the transfer of funds?  What if you could accumulate your retirement savings tax free and then use your retirement savings tax free and if you died before exhausting those funds, you could transfer the remaining funds to your beneficiaries tax free?  You can.  Call me to set an appointment to find out how.  It’s your money . . . until you give it away.

Did I mention . . .

If you own commercial property, and you're upside down on the mortgage, a member of my Business Advisory Council can help you refinance and

have equity in your property again.


If you own a residential property that appraises for over $420,000, and you're upside down on your mortgage, you too could refinance and have equity in your property again.  Call or email me to find out how. 

Ray Hodges Ray Hodges

214-810-5881 (w)
214-675-2952 (m)
214-785-6173 (f)
1204 Ashford Dr, Desoto, TX 75115, United States
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It's your money . . . until you give it away.