With news headlines announcing multi-million dollar jury awards in lawsuits, it’s easy to understand why asset protection strategies might be needed.

Individuals may be interested in asset protection planning to protect against:

• unknown future creditors,
• current creditors,
• potential ex-spouses, and
• the IRS and other taxing authorities. Read More

As we have reminded you periodically, taxpayers are required to file form TD F 90-22.1 (FBAR) annually if the U.S. person or entity has a financial interest in or signature authority over any foreign financial account, including a foreign bank or brokerage account, if the aggregate value of all such accounts exceeds $10,000 at any time during the calendar year. This filing is due by June 30 of the year following the reporting year. Read More

Chief financial officers are increasingly pessimistic about economic conditions, according to a recent Duke University/CFO Magazine Global Business Outlook Survey. For the first time in the survey’s 13-year history, bears outnumbered bulls nine to one. In fact, many CFOs don’t expect the recession to end until 2010 or later. Read More

Although borrowers often pledge inventory as loan collateral, the amount shown on their balance sheets isn’t always accurate. In fact, inventory can be a source of mistakes because its accounting is complex and the volume of transactions that flow through the inventory ledger is high. If management is lax about inventory, problems can easily spiral out of control. Read More

The corporate finance world is in a state of flux: Banks continue to retrench after a disastrous 2008, tightening credit standards and following borrowers more closely. Borrowers also are rethinking their capital structures and lending decisions. For now, conservatism is the name of the game.

Examining the supply side

Last year many financial institutions were hurt because they’d made poor lending decisions. The credit market was overheated, but now the pendulum has shifted and banks are re-evaluating risk and finding ways to prevent future losses. New policies include: Read More

If one of your borrowers suddenly lost a key person, how would it affect their productivity, profits and ability to service debt? For many small businesses, the death or long-term disability of an owner or key employee spells disaster. Some businesses eventually recover after finding and training a replacement, but others are so reliant on key people that they’re forced to close shop. Read More

Fresh Ideas for Consideration

Most finance gurus refer to a general rule of thumb in determining whether or not to prepay some or your entire mortgage… compare the interest rate on your mortgage with the expected rate of return on your investable assets. If your mortgage rate exceeds the rate you can earn on your investable assets consider paying down your mortgage and vice versa. While this analysis still holds true, most investors feel more uncertain about their expected rate of return following unprecedented turbulence in the capital and credit markets. Read More

Afraid to open your monthly IRA statements? Has stock market volatility of the last six months altered your retirement plans? We are all familiar with the typical IRA investing in stocks, bonds, and mutual funds, but with recent stock market lows, some investors may be thinking about putting their IRA funds in less conventional investments. Potential alternative investments may include commercial or residential real estate, interests in closely held businesses, Read More

As businesses continue to face economic uncertainty, rising costs and tighter credit standards, many are revisiting their capital spending budgets and prioritizing purchases to weather the storm. Before approving a new loan or a credit-line increase, consider whether borrowers have considered these cost-saving alternatives. Read More

Many market analysts expect the ongoing economic downturn to persist throughout 2009. In fact, Manufacturers Alliance/MAPI Quarterly Economic Forecast predicts a 1.3% decline in gross domestic product (GDP) in 2009. Pessimistic outlooks also prevail in the automotive and housing sectors for this year.

Without relief in sight, weak borrowers may succumb to default. Protect your portfolio by proactively identifying unfit borrowers and coaching them to get on the road to financial health. Read More