When Should CPAs Claim Social Security? Part 2
In Part One, we established the foundational framework for Social Security claiming decisions: understanding how your claiming age affects benefits, analyzing break-even scenarios, evaluating personal health and longevity expectations, considering work status implications, and assessing immediate financial needs. These core factors create the analytical foundation every CPA needs before diving into more sophisticated optimization strategies. […]
When Should CPAs Claim Social Security? Part 1
One of the most pivotal questions you’ll face when planning your retirement will likely be: When should I start claiming my Social Security benefits? It’s a more complex decision than it might appear. Modern retirement planning has evolved: Americans are living longer, nest eggs often need to stretch further, and interest rates and markets fluctuate. […]
The Mega Backdoor Roth for CPA Practice Owners
Imagine it’s the late 1970s: on November 6, 1978, Congress quietly adds Section 401(k) to the tax code, unwittingly sparking a retirement savings revolution. A few years later, employees suddenly found they could contribute up to 25% of their salary (capped at $30,000) into these new plans – an unheard-of opportunity at the time. Fast […]
Protecting Intellectual Property in Family CPA Practices
Imagine it’s 1837 in Massachusetts. A chocolatier sells his family’s secret recipe to a buyer, only to later share that recipe with others, sparking one of America’s first legal battles over intellectual property. The case, Vickery v. Welch, proved that a business’s closely held know-how can have real value, even without a patent. Fast forward […]
Managing Executive Compensation Packages for CPA Practices
Imagine planning for retirement in ancient Rome: Augustus Caesar offered veteran soldiers a hefty lump sum (about 13 times their annual pay) upon retirement – a strategy to reward loyalty and prevent mischief. Fast forward to the mid-20th century, and American companies were handing out gold watches at retirement – a nice gesture, but hardly […]
Captive Insurance for CPA Practices
Imagine it’s the 1950s in Ohio: A steel company owns several coal mines that feed its furnaces, and those mines are dubbed “captive mines” because they serve only the company. To protect those mines, the company’s advisor Frederic Reiss helped set up an insurance company owned by the steel company itself – effectively ensuring the […]
From CPA Practice to Retirement: How Business Restructuring Impacts Your Retirement Plan
Running a CPA firm is a numbers game—but the most important ledger might be your own retirement balance sheet. One eye-opening fact is that a huge portion of many business owners’ wealth is tied up in their companies. One study found that 80% of the average business owner’s net worth is locked into their business. […]
Strategic Use of Leverage in CPA Portfolios
Imagine moving a massive ship singlehandedly. Sounds far-fetched, but ancient accounts say the Greek mathematician Archimedes did just that using a clever system of levers and pulleys eurovps.com. He famously boasted, “Give me a place to stand and a lever long enough, and I shall move the world.” That story illustrates the core idea of […]
Blended Families and CPA Practices: Navigating Estate Planning
Imagine spending thirty years building a thriving CPA practice, carefully nurturing client relationships, and gradually expanding your service offerings. Your child has worked in the practice for nearly a decade, effectively managing key accounts and earning the trust of long-term clients. Now, as you consider your second marriage, you face a critical challenge: how do […]
How to Monetize Illiquid Assets as a CPA Practice Owner
As a CPA practice owner, you’ve devoted years to building your business. But have you considered how that business will fund your retirement? To exit on your terms with a comfortable retirement, you need a plan to turn your illiquid business into reliable retirement income. Your practice is likely one of your largest assets, yet […]
