Is It Time To Buy?

One of the most rewarding things I see, as a tax professional, is when clients and friends come to me for advice about “tax things.” 

I’m happy to share my knowledge, and open up my Rolodex for referrals about many, many things – how to structure your start up, determining a plan for retirement, understanding the assets you own and the assets you are planning to invest in, and of course, home ownership.

Now, obviously, I look at all of these from a tax standpoint.  Granite countertops or an “S-corp” doesn’t mean anything more to me than their actual definition, but this week, I wanted to share a few things I’ve seen regarding the new home market in America right now. 

It’s HOT!  Inventory levels are low, prices are climbing, and the real reason for it is simple – there’s simply too much demand.  People are ready to buy and they aren’t willing to wait.  Seriously, have you see the price of lumber lately? 

That’s really the challenge right this minute – builders and remodelers can’t get the supplies they need, and what they can lay their hands on?  It’s at a premium.  The result is going to be high short-term prices and – at least potentially, a drop in home value when supply production gets back to normal. 

So what should you do?  Honestly?  If you’ve been thinking about selling your home – and you have a plan for where you’re going to live – then now might be a great time to do it.  If you’re in the market for a home, especially a new one, be prepared to overpay, or to at least pay a premium. 

Now, the real world we all live in dictates this:  you have to have a place to live, regardless of where that actually is.  If you have to move, well, you have to move.  For those who are renting and contemplating a home purchase, I’d have to simply say this:  Don’t overthink it - Buy it!

Why? 

There are just too many upsides to owning your own home.  Not only do you get the ability to write down the mortgage interest (read that, “nearly everything you pay for the first few years…”), you’ll also be creating equity. 

That down payment?  Right there, you’ve got equity in your home.  Sure, prices might fall in the short term, but if you just bought your home, why are your thinking about selling it?  It’s kind of a false alarm from that point of view. 

The bigger point in all this is that if you decided to wait and rent one more year, you’re simply losing money, not some false value based on comparable home prices in the neighborhood you purchased in.  If you’re spending $1,200/month on rent, that’s nearly $15,000 you’ll spend and never see again this year.  Why not put that money into the purchase of a home? 

I recognize that buying a home can be nerve-wracking, but the truth of the matter is that no one ever got wealthy paying rent.  Even if you’re worried about the caliber of home you can buy, or the buying “budget” you might have, my team and I can help lift the veil on that, and really, all aspects of home ownership. 

NOTHING is more satisfying than the feeling of owning your own home, and if you’re thinking about it now, even as crazy as the markets are, I encourage you to reach out and let’s look at the real costs of buying and what your budget really is – not what some silly app on your phone says it should be. 

I look forward to hearing from you!

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.

Is The President’s Tax Plan Going To Impact You?

You might or might not have noticed that President Biden began discussing a long-term tax plan in April, and there are a lot of unknowns in it.  The challenge, of course, is that even though much of his proposed plan targets high-income or high-net worth individuals, the threshold that keeps showing up - $400,000 – is concerning. 

In short, the plan places far higher tax burdens on the wealthy, in terms of capital gains taxes and the Medicare surtax (created from the Affordable Care Act). 

Long term, this could place capital gains taxes at over 40%.

What’s that mean? 

Well, nobody really knows. 

On the other hand, the problem is this:  it’s obvious that capital gains and the “wealthy” are being viewed as targets for taxation, and, depending on your retirement strategy, that could cause you to encounter far higher taxes when you retire as a result. 

For example, if you have a 401(k) and plan on supplementing that with short and long-term investments in retirement.  Suddenly, you’ll not only have to pay taxes on your 401(k) withdrawals, but you could potentially pay nearly twice the capital gains taxes on your investments.  (Currently, short-term capital gains – less than a year – are taxed as income.)

The real challenge right now is the short-term reactions on the markets every time this conversation arises:  The day this story started, the NASDAQ, Dow Jones, and even crypto markets all took a dramatic downturn. 

Ultimately, they all recovered, but it showed that many traders’ reactions whenever this conversation begins is to sell off immediately – never mind it would potentially be years before such a tax was actively imposed. 

My point in all this is simple:  when it comes to retirement savings, don’t make ANY assumptions.  You have to stay vigilant on how politicians are planning on spending your money and what the tax landscape could look like when you actually retire.  At the same time, you also need to actively explore all your options – both new and established. 

Does that mean crypto?  A Roth IRA?  A so-called “Golden” IRA?  Precious metals? 

It might mean all of them, but if you’ve already got a plan for retirement, then you need to be reviewing that plan and its suitability at least once every quarter.  More importantly, you need to be focused on what it affecting that plan every day. 

What you focus on expands, and if your plan is to retire rich, then knowing the dirty little secrets of taxation BEFORE they affect you is critical. 

Now, none of this is written to scare you, it’s really just to inform you.  If you are worried about what options you now have – or might have – then give me and the team a call to discuss where you money is and how it might be able to work a little harder. 

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.

Removing the Obstacles in Your Business

No matter how “busy” you are in your company, I’ll bet a lot of the time you spend is solving problems.  Challenges really are a part of any business, and while you can systemize many things, you can’t always create a process for everything.  When a problem arises in a grey area, how will you handle it? 

The answer is deceptively complex, but it really does come back to the overall structure you choose for your business.  Remember, too, “structure” is not always organization charts and rules. 

It’s also rewards, values, and even unconscious assumptions that can influence behavior.  Let me give you an example…

You might adopt a formal policy for your teams that states that customer satisfaction is the primary goal.  On the other hand, you only pay a commission to your sales team for closed sales. 

Will it be any surprise that your sales team figures this messaging out BUT directs their activities and energies towards the reward and not necessarily the stated objective? 

In this case, the real result desired is implied in the result that you reward, not the result you’re claiming.  Obviously, then, it’s important to be able to fully understand how your company really works… 

Of course, this not only defines your management hierarchy, but also how your business might be able to overcome obstacles faster. 

For example, in the last twenty years, we’ve seen how manufacturing has shifted from a very bureaucratic, top-heavy management and decision-making structure to a much more “team-managed” style in many cases. 

While some people have heralded this as the “democratization of the workplace,” the reality is, that’s just an “unintended result.”  By letting manufacturing teams manage themselves, companies can remain competitive in fast-moving industries requiring quick order fulfillment. 

Now, obviously this example may not make sense for your business, but here’s the point:  the structure you build into your business has to be built around what makes sense for YOU, not just the way your industry has always worked. 

Beyond that actual management and operating system, there is another key component that is not necessarily designed, but created, and that’s the culture.  These standards, rules, and accepted practices all act on and shape the culture of any company.  What, exactly, do I mean by culture?  Essentially, the behavior and actions that a company takes in its day-to-day-operations.   

Some of this “culture” is quite explicitly stated – we see it in Vision statements and policies.  A great deal of it, though, becomes part of the story and myth of the business.  This unseen culture can run alongside of the stated goals and will either support it or undermine it. 

A classic example of this parallel culture in demonstrated when companies who proclaim the importance of their employees and constantly share their human resource beliefs turn right around and lay off scores of workers with no notice. 

Their real truth is revealed in their actions, not their words, and this makes a very vivid lesson for their remaining employees. 

Companies such as this miss a very real opportunity – they could recognize this “unstated” culture they have created and bring it into alignment with their stated values and objectives … and not fear “losing face” with their people and their customers.  A truly high-performance company would use this scenario to find a better way to integrate their vision and their actions. 

In the end, your beliefs about what is true for your business shape the flow of energy and activity within it.  The challenge you face is to understand and recognize these unconscious assumptions you are making and ensure they aren’t laying a foundation for failure. 

Remember, because these are unstated, they are often self-fulfilling. 

If you think people cannot manage themselves, you likely won’t take the time to build a system that allows your people to effectively manage themselves. 

If you think your Ideal Customer will only purchase your products or services in one way, you’ll be unlikely to develop and test any other methods. 

That might seem obvious, but until I said it, you either believed it and didn’t question it or you didn’t believe it and didn’t question it. 

Either way, you’re missing a key part of the whole entrepreneurial process – you must learn to question EVERYTHING!

That’s really the point I’m trying to make – to coax you to open your eyes to things you personally – and subconsciously - believe to be true and then, to address them in your business structure or culture that you’re building. 

Make this a great week!

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.

Why Wait?

 It’s time to take some kind of action.

You’ve been cooped up from COVID, you’ve had to deal with downsizing, layoffs, “essential workers” (or the lack thereof), and, quite frankly, like a LOT of us, I’ll bet you’re sick of it. 

So no matter how this last year affected you, what are you waiting on? 

You’ll only get a certain number of trips around the sun, so why keep going in a job or career you don’t like?  Why keep working for a company that doesn’t value your contributions?  For that matter, why keep living in a state or a town you don’t really like? 

I don’t have that answer, and even if I’m an expert in the realm of taxes, I’m no philosopher, but over the last few months – “tax season,” if you will – I’ve noticed, again and again, this feeling of discontent from many people. 

Entrepreneurs, managers, skilled and essential workers, and even young people. 

Now, it wasn’t what I’d call “anger,” it was more of a sort of discontent. 

After I’d noticed it, I couldn’t really shake it and the more I tried not to look for it, the more I couldn’t help but see it in the men and women I encountered. 

Here’s the thing:  simply being uncomfortable isn’t enough for most people to change, but I’m asking you – right now – if you’re not happy, take action starting today to become happy. 

Who else can do this for you? 

Nobody.

Not the government.

Not your boss.

Not your company.

Not your family, or your spouse, or your buddies.

Just the person you see in the mirror every morning.

How are you going to do that? 

That’s the real question, isn’t it?   For a lot of my clients, of course, it’s about money.  While my team and I can usually help anyone keep more money in their pocket, if you don’t like how you’re earning that money, or where you’re earning that money, then money isn’t nearly as fun as it could be. 

I want to make money fun again. 

How can we do that, together?  Well, maybe it’s giving you a better strategy for saving it, or lowering the amount of taxes you pay, or even helping to guide you in determining what is the best way to organize your retirement accounts. 

My team and I might not even have all the answers, but I guarantee we know the right people to give you those answers. 

Right now, though?  I want you to really think about what you’re tired of, and start thinking about how you can get those roadblocks out of your way.  We’ve all been through too much in the last year to be satisfied with unhappiness. 

If you’re ready to make changes in your financial wellbeing, then give me and the team a call.  Why wait?

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.