Monthly Archives

April 2016

Lifestyle

Living Without Money, the Spending Fast and Buy Nothing Day

51bWz-LER7L._SX322_BO1,204,203,200_The Western word is being destroyed by a select group of people determined to live within their means. From artist Ted Dave and his Buy Nothing Day movement to Daniel Suelo who decided to live without money to Jeff Yeager and his spending fast to Mr. Money Mustache and his grand scheme to keep spending low, even when income rises, we face the greatest economic crisis of our generation. Or are we?

All too often we act as if the economy were an actual living being. It is not. The economy is only a construct of the human imagination. Can you image any animal living in crisis because their local economy collapsed? Even humans, thousands of years ago, did not worry about this crazy thing we call the economy. Somewhere between there and here we convinced the vast majority of people they are duty bound to feed this imaginary beast.

Spending lubricates the beast. It does not matter if the spending is on stupid stuff. Buy a Hummer and save the economy, they say. That was the mantra a decade ago. Remember the government’s response the 9/11 attacks? We were encouraged to keep spending to show the terrorists we would not be affected by their actions. But the terrorists did win! They got us, as a group, to engage in insane spending habits sure to destroy the one thing we worship above all others: the economy.

Continue reading

Related posts
$10 Million Isn’t What it Used to Be
June 19, 2017
Manufactured Spending Without the Factory
June 14, 2017
Maximizing Retirement Investments with Multiple Plans
June 9, 2017
Taxes and Investing

Valuation: Warren Buffett Style Investing

Book only.

Book only.

In the course of my work I am frequently asked to place a value on a business a client wants to sell or acquire. There are several ways to determine value in such situations. Today we are going to focus on the value of listed companies (stocks). Warren Buffett has stated most people should drop their money into an index fund and let it ride. If you are like me you follow Warren’s advice, but invest a portion of your money in individual stocks anyway.

There are numerous books on Warren Buffett and his style of investing. These books glance over the process Warren uses, focusing on tidbits of advice Warren has given over the years. Reading Graham and Dodd’s Security Analysis exposes how difficult it can be to value a company. Since Graham and Dodd, our understanding of value creation has grown and Warren Buffett uses the new analysis tools in his investing style.

Continue reading

Related posts
Investment Commercial Real Estate Profits and Pitfalls
June 21, 2017
$10 Million Isn’t What it Used to Be
June 19, 2017
Get There Before You Arrive
June 12, 2017
Early Retirement, Lifestyle

Work is a Four-Letter Word; Fun is Much Better

fishingAnother tax season is in the books as I write this. After thirty years in the business I am always surprised by how much my business grows and the industry changes. This year I received a major push from Mr. Money Mustache. His blog introduced a larger world to the crazy and wacky accountant from Wisconsin resulting in over 12,000 requests for help. Sure, I know the industry is understaffed and the level of super tax professionals is low and declining. But this was insane!

Another crazy tax season required your favorite wealthy accountant to work more hours than he cares to admit. It also requires a serious question: Why? Isn’t “work” a four-letter word to be avoided at all cost? It all depends. Do you like to golf? Golfing is work for me; for you, golf might be loads of fun. Tiger Woods plays golf for a living. Fishing also falls in this category. Fishing can be a lot of fun or work.

Continue reading

Related posts
Manufactured Spending Without the Factory
June 14, 2017
Maximizing Retirement Investments with Multiple Plans
June 9, 2017
New Tax Law Changes Dangerous to Your Wealth
June 7, 2017
Taxes and Investing

File Your Taxes With a Missing or Incorrect W-2 or K-1

W-2As the tax deadline approaches we will discuss two problems preventing you from filing your taxes: missing or inaccurate tax documents. Some small employers forget to send W-2s preventing you from filing your taxes; other businesses may send incorrect forms. K-1s are even worse. With a K-1 you may not even know what the numbers should be and they always come late in the tax season.

There is a process in finalizing your tax return when information reported to you (and hence the IRS) is wrong. The IRS knows some tax reporting documents have errors. Unfortunately, the IRS computer only believes what it sees. Once information is reported to the IRS you need to make sure you tell the IRS computer what it wants to hear or you will end up in IRS hell getting letter after letter while the IRS employee working your case is never available. The best course of action is to avoid the IRS letter or audit in the first place. There is a process to fix wrong information at the IRS.
Continue reading

Related posts
Maximizing Retirement Investments with Multiple Plans
June 9, 2017
New Tax Law Changes Dangerous to Your Wealth
June 7, 2017
Outsourcing Payroll
May 24, 2017
Related posts
New Tax Law Changes Dangerous to Your Wealth
June 7, 2017
The Sweet Spot of Non-Cash Deductions
May 19, 2017
The Ultimate Credit Card Rewards Hack
May 5, 2017
Frugal Living, Lifestyle

Know When Not To Do It Yourself

I did not have the equipment of expertise to handle a mound system on my own so I called in the troops.

I did not have the equipment or expertise to handle a mound system on my own so I called in the troops.

The DIY movement is alive and well. Taking the bull by the horns and getting a job done can save massive amounts of money. Early retirees get to their exalted status because they kept costs low. Frugal people are drawn to DIY projects like flies to honey. With so many people undertaking projects on their own it is time to ask an obvious question: Should you be doing that project on your own.

I have seen some really bad DIY jobs over the years. Buying a large number of rental properties over the years revealed some doozies. Still, I handle a large percentage of jobs around the office, home and farm on my own. There are times I do need to take a knee and bring in somebody with experience.

Continue reading

Related posts
Buy A Car at an Awesome Price (From the Dealer)!
June 17, 2017
Manufactured Spending Without the Factory
June 14, 2017
Get There Before You Arrive
June 12, 2017
Early Retirement, Frugal Living, Lifestyle, Small Business

12 High Income Part-time Seasonal Jobs

20160407_071533Early retirement comes faster when you have a plan. A frugal lifestyle is the first step; the second step is a high paying part-time seasonal job allowing you a retirement lifestyle with a modest amount of work to cover living expenses. Regardless your net worth, you can semi-retire at any time with the game plan outlined here. Below I highlight twelve high paying jobs you can use to start your retirement today. I have clients in each job earning $30,000 or more per year working part-time. Since $30,000 is more than enough to live a phenomenal lifestyle, the jobs below are a great way to live the good life starting now.

The great news is that you can earn even more than $30,000 per year with the jobs below. No matter where you are on your road to financial independence you can step off the treadmill of traditional work and start spending more time with family and friends. Modern technology has made it not only possible, but easy, to live off a small number of work hours. The basics are covered by a few hundred hours of work per year. Everything else is extra wants. The same technology handles so many of our daily tasks freeing more time for personal development.

Continue reading

Related posts
Buy A Car at an Awesome Price (From the Dealer)!
June 17, 2017
Get There Before You Arrive
June 12, 2017
Maximizing Retirement Investments with Multiple Plans
June 9, 2017
Early Retirement, Frugal Living, Lifestyle

The Best Kept Secret of Early Retirees, the Wealthy, and Happy People

IMAG0292The day is April 2nd, a Thursday. A small bar attached to a bowling alley next to the college has Happy Hour until 7 p.m. A young man who would someday be known as the Wealthy Accountant attended Macro-Economics at the college across the way. Class was held on Tuesday and Thursday from 5 p.m. to 7 p.m. A group of students, led by the junior wealthy accountant, ambushed the professor, convincing him to cut breaks short and end class at 6:50 so the group could race to the bar called The Image before Happy Hour ended. It was important to the students to make Happy Hour. The Image had free tacos if you bought a drink and a full meal for the price of one soda was one heck of a deal.

Our junior wealthy accountant had his own home at this time and spent his days reading library books. Years before he was engaged to be married and found his fiancé in bed with another man. He withdrew from life knowing how important it was to find the right woman to share his life with. He wanted someone in his life, but had given up hope there was “the right” woman out there for him. So he kept reading all day, attended a few college classes and enjoying life as it was.

Continue reading

Related posts
Buy A Car at an Awesome Price (From the Dealer)!
June 17, 2017
Manufactured Spending Without the Factory
June 14, 2017
Maximizing Retirement Investments with Multiple Plans
June 9, 2017