College Prep?

 

It’s that time of year again, where students are going back to school (this time, for “real”) and another group of young people is beginning their senior year of high school. 

Now, maybe you’ve got a new senior or that’s still years away, but the truth is, college doesn’t HAVE to be the next step. 

In fact, college today might be an incredibly ineffective step on your kid’s path.   

…But how do you help them figure out if college is the correct choice or simply the easiest one? 

Well, your role, as a parent, starts long before theirs does.  How are you going to pay for that education?  Even if you aren’t able (or willing) to pay for school, there are a lot of savings plans out there that can still be used for paying for higher education. 

·       A 529 College Savings Plan

·       An Education Savings Account

·       A whole life insurance policy

·       Any variety of money market accounts

·       An LLC set up in your child’s name

·       …and many more

Make no mistake, paying for college feels like it has to be hard – and it is if a family can’t provide any type of support in the eighteen or so years before a kid goes to school – but there are ways to handle it with some forethought.

That’s not what this email is about, though. 

It’s about asking the simple question: “Does a college education make sense for a young person interested in a given field of endeavor?”

Of course, to a young person, who thinks of college as an excuse to party with little or no accountability for four or five years, college is a “must have” with a low interest rate.  They usually fail to think about the fact that the bill for that “education” is likely going to be six figures. 

In reality, unless a young person is committed to the white collar world or the medical field, they might be better off with a two-year degree earned from a community college.  In fact, I’ve said it more than a few times over the years, if you want to virtually guarantee your child will be a six-figure earner, help them to get involved in the skilled trades – plumbing, nursing, welding, construction, and many others.  Statistically, they’ll have far more control over their lives, far higher income, and those skills are ALWAYS going to be in demand. 

They might not get too far with a sociology degree, but they can find a job anywhere if they’re a nurse.  

Here’s the even better part – when they don’t have to spend all that “college savings” money on a college degree, you may have the option of helping them get started on their own with a nice nest egg you’ve set aside over the years. 

A college education is a great thing, but being able to help your child create a better scenario for themselves later in life is far more important.  Take the time to not only discuss higher education and careers with your kids, but also, don’t hesitate to schedule time to talk to me or the team about how to set up these types of accounts and funds. 

I can’t wait to hear 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.

What To Do With Your House

 

It’s hard to believe the difference a year can make.  This time last year, the world was practically locked down, and now?  Economies are opening, people are getting back to work and production of nearly everything is running as quickly as companies are staffed to produce things. 

The exact same thing is happening in the housing market. 

Incredibly low inventories, record-high supply costs, and a large labor shortage have all created an optimal environment for homeowners looking to sell their homes. 

Of course, the money they could make as a result of selling their home would likely be offset by the cost of building or buying a new home, but for a select group of homeowners, selling now could be extremely lucrative. 

Are you one of those homeowners? 

There are some things to think of if you might be considering selling in the next two months…

First of all, where are you going to live?  For those who have already bought or built their retirement home, today’s market almost couldn’t be more perfect.  In theory, they’ve already purchased property, or an existing home in a softer market, so selling now is a great chance to maximize their profitability. 

It’s worth noting for anyone selling and potentially planning on living in an apartment or condominium that, due to COVID, evictions were virtually halted, so the available supply is still extremely short and rents have continued to climb in many parts of the country. 

Just how much have construction costs climbed?  Lumber is up nearly 30% from this February!  Appliances – even the least expensive models – are also in short supply, so big retailers are not discounting them for summer sales, or offering financing packages like they usually do.  Even though many Americans have more cash on hand than they traditionally do, they’ve also proven to be more cautious in the last few months as the pandemic has slowed and the economy has reopened. 

So should you sell or hold? 

Well, the short answer is this:  if you will have to have the equity from your current home to buy or build next home, it might be wise to wait it out.  The increased value of your current home is going to be negated in the purchase of a new home, so you won’t “lose” money, but nobody likes to break even.  For first time homebuyers, my advice would have to be to wait until the supply catches up – we’re going to see a small “bubble” in prices that will reset in the next year and, frankly, if you can wait to buy then, lower costs and a better supply are going to make a big difference in both the purchase price and the monthly payments. 

On the other hand, if you’re moving from a “hot” market – California, Atlanta, Arizona, and so on – to a more rural market or a flyover state, then your options for rentals are not only limited, but the money you can make now from selling in these markets will more than offset the slight increase in more rural markets around the country. 

Whatever you do, though, it will be the “right” thing – the key is to spend the time understanding ALL the costs associated with buying or selling now and if that opens you up to other taxation problems or how buying now can yield you additional credits and deductions. 

I can’t answer that in a blog, but I can absolutely answer that in a personal conversation, so if you’re tired of guessing, let’s schedule a call to discuss the best strategy for your home purchase or sale in this market. 

 

 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.

 

 

 

Rethinking The Customer

A lot of folks probably looked at the title of this post and cringed - “Rethinking the Customer?  They’re not the problem!”

I get it, it seems like the wrong thing to do … but it’s not. 

The entire process your business follows, after all, is about the customer, right?  They already exist and they understand, at least intuitively, that your business has set out to solve a specific problem they need solved. 

Your own Dream, Vision, Purpose, and Mission all work together to create your business – and they serve your customers. 

But does your actual business model serve your customers in the best way possible? 

I think a lot of us can agree, if we’re completely honest, that most of us opened our doors before our customer systems were properly built.  Of course, once you’ve gotten that first customer, you’re caught up in serving them, and slapping together systems and processes to hopefully take care of your clients. 

…But what would happen if you could rethink who your client was?  Or how you attracted them?  Or how you handled fulfillment? 

Take a few minutes and think about how your business finds, attracts, and fulfills its roles for your customers.  Seriously! 

How it looks to the customer.

How it acts to the customer.

How it functions best to the customer.

But just as the Coronavirus Pandemic changed how we viewed the world, what insights does this give you, in light of your Ideal Client? 

Have they changed? 

Have their expectations changed? 

Has their trust in the type of business model NewCo is using changed?

Al of these are questions and speak to the very core of entrepreneurship:  Your dream, vision, purpose, and mission doesn’t change, but the way your business fulfills those to your customers does.   

In fact, let’s go back to the Coronavirus Pandemic…

Suddenly, all over the world, business models that had been built on the status quo had no choice but to shut down. 

Deliveries weren’t being made unless things were “essential.”

People in every country were forced to evaluate how their daily lives and routines were putting them at risk. 

Let’s call it what it was – people were terrified. 

Maybe your business was based solely on face-to-face interaction – you KNOW how it suffered in that kind of a climate!  Or delivering a physical product built overseas and dependent upon the existing shipping infrastructure? 

Did your business – at least as you did it in 2019 – survive? 

Are there things you can do – even today – to ensure that your business can survive anything?  Yes there are, because the goal of any entrepreneur is not just to survive, but to thrive!

As I’ve shared this idea with business owners over the last few months, I’ve heard this a lot of times, too…”The COVID 19 pandemic was a once-in-a-lifetime event!  We’re fine now!”

Really?

Think about 9/11. 

Think about the real estate meltdown in 2007-2008.

The Dot.Com bust in the late 1990s. 

The recession that began in 1987.

“Life-changing” events happen all the time, whether regionally, nationally, or globally, and your job, as an entrepreneur, is about creating such an incredible business model that it does survive those “once in a lifetime” events that, obviously, happen every ten or so years…

So, let’s talk about how you rethink your customer.  Instead of looking inwards, though, and picking apart your specific model and ideal client, look outward.  Look at three companies in similar industries to yours and research how they acted – and reacted – in the COVID-19 pandemic. 

I’ll be happy to give out bonus points if you can do the same for the recession of 2007-2008, but since technology has changed a great deal since then, it may be difficult to draw effective conclusions.  Remember, too, in some cases, the so-called Great Recession actually created some of the most powerful companies today in a host of different industries. 

Uber.  Groupon.  Netflix.  Smashburger. 

The truth is, you can build and design your company to survive anything when it is built properly. 

 

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 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.