Monthly Archives

April 2017

Early Retirement, Lifestyle

The Trauma of Retirement

Over the years I have retired many times. So have you.

The demographic of this blog leans heavily toward early retirement. This has always bothered me. I always feel like I have to be an apologist for all the folks enjoying their work. Life would be less bright for me and my brethren if we were forced to do what we enjoy most, less. Why is this? What is the hang-up with this retirement thing?

 Zig Ziglar, God rest his soul, pointed out to me 30 years ago what retirement really means. I only met Zig once and it was enough. We talked and shook hands. In that short meeting I confessed to Zig I was going to cash it in and sit around reading all day. Now Zig is a good guy. He didn’t say nasty things to me, but for the smallest fraction of a second his face had a tell. I knew Zig was going to tell me something profound.

He told me to go home and verify what he was about to say. He said, “Look up the definition of retirement in the dictionary. It means used up, worthless, ready for replacement.” Worthless! I am not used up or worthless!

I did go home and check the dictionary and Zig was right. This whole retirement thing was a BS story. Years later, when it was cool to retire early, I came across the FIRE (financial independence, retire early) crowd. I love the concept of simple living and frugality. It was frugality that led me to the community, not the early retirement thing. Now CNBC and the Yahoo newsfeed have a story of somebody who retired at 12 while working through middle school on a regular basis. I’m still not buying it.




Continue reading

Early Retirement, Frugal Living, Lifestyle, Small Business

The Dangers of a Side Gig

Tax season is officially over and not a moment too soon. As much as I love the work, when months go by without a day off it begins to wear on me. The worst part is the sitting. Too many hours planted in a chair coupled with sleep deprivation and health is not getting the attention it needs.

Loving something as much as I love tax work is also a challenge for people around me. Mrs. Accountant is an angel, allowing me the opportunity every year to disappear for months to help complete strangers and semi-strangers with their tax, accounting and financial problems. My daughters have learned from an early age dad is a very intense man when it comes to his work.

Work has never been a four letter word for me. (Considering my profession you would think I could count to four better.) Growing up on a farm meant everything was work, but not work. Running to the creek to fish was something you did. Planting in spring was fun, not really work. Harvesting was an addiction; sleep was hard to achieve until the crops were off the field. I know of no greater pleasure than watching a barn filled with bales of hay, placed there by my own hands. There is no greater thrill than to see the milk cooler fill each day to the rim. A full bulk tank meant money, and therefore, life. It was a good life and I had no idea what the real world was like outside my vision horizon.




Continue reading

Related posts
Secret Messages
April 17, 2017
Crime and Punishment
April 14, 2017
It Pays to Have a Hobby
April 12, 2017
Lifestyle

Secret Messages

Sometimes accounting can be a downright boring subject. It is the job of your favorite accountant to spice it up a bit with stories and jokes so the message resonates and therefore gets through. No matter how brilliant my idea to increase wealth or lower taxes, it is worth nothing if I can’t keep you reading to the end.

Many people find blogs like this by accident. The people hunting for blogs like this already are open to the concepts. Not so the wayward traveler finding her way here from search engines. I write for the choir, but always consider the wayward, too.

I use stories to convey the message. Money is fun to read about and have. To keep readers engaged I impose secret formulas to keep them coming back. It’s almost like a sickness the reader can’t quite put her finger on. How come I am so draw to this blog about (egads!) accounting, saving money, investing and retirement? the wayward soul asks.

Let me be clear. The message is simple: Save half your gross income and invest in a broad based index fund. All done. Now you have another 23 hours and 58 minutes to fill today. Money stuff is done.

Easy as it is, I still need to make a living writing this blog. I enjoy the writing process and telling stories. Changing people’s lives for the better is a bonus.




Continue reading

Related posts
The Dangers of a Side Gig
April 19, 2017
Crime and Punishment
April 14, 2017
It Pays to Have a Hobby
April 12, 2017
Early Retirement, Lifestyle

Crime and Punishment

Tax season is racing toward the finish line. There are 5 days left, including today. I’ll work every day, even Easter Sunday to get as many returns out before the due date.

The stack of tax returns on my desk is taller than I hoped by this time. Incomplete files are put to the side until all documents are in. All too often clients piecemeal information. This forces me to put these accounts at the bottom of the stack so I can focus on files with all their documents. Every time I open a file I review all the prior work done to ensure nothing is missed. Dribbling in data wastes a lot of time.

The good news is that every return with complete data in the office by April 1st will be done by the due date. In fact, most returns in the office by April 10th will be done on time. There will be the rare exception due to required research.

The days are long and I am beyond exhausted. There is a place past the “second wind” where motivation is based on sheer willpower. That is where I am now. I live for this last week like an addict anticipating her fix. Each year as the New Year approaches the taste coats my mouth. I lick my lips in anticipation. The game is on.

The number of tax returns prepared some days sometimes boggles the mind. There have been a few days where the number claws close to 20. Complex returns slow the pace down to a crawl with some days only moving one, two or three returns from the stack. I hate those days. I want to serve as many clients as possible.

Preparing so many returns takes a team effort. Many returns have the bulk of the data already entered for me. I review most returns before they leave my office. You would not believe the shine a man with 30 plus years experience can put on a tax return.

I am too tired and exhausted to write a high quality blog post today. The well is empty. Monday another post is due and I am not sure what will be left to write. My mind is too focused on real tax returns to waste any speck of energy on a random idea in a blog post. Tuesday the race is over. I will take a day to relax and work around the farm. I’ll get a better post out later on Wednesday as I will have time to think and reflect.




After tax season I have a podcast to prepare for. Around May 1st I meet Jim Collins as he visits the fine State of Wisconsin.  In late May I am in Seattle speaking at Camp Mustache 4. I might have two sessions I speak at: one on anti-Mustachiamism (I didn’t know so many people would be interested in that) and a second as a comedy skit. We’ll see how my preparations go before the final commitment is made. Standup comedy is a lot more work than you can imagine.

Rather than keep rambling, I encourage you to read a few posts appropriate for this time of year for those of you going through withdrawal symptoms. (Gawd, that Wealthy Accountant guy can sure spin a fine tale.) (Note: I am not conceited. Just tired as hell and getting a bit punchy.)

Knowing When Not to do it Yourself is a good start. Here is a post on filing an extension to pay and/or file your taxes. A word of warning: When tax season reached its conclusion last year and I wrote, egads, about tax stuff, I received a very nasty letter telling me how much I suck and that used to be such a great writer but now suck completely. I think the guy left a comment too. Go check it out.

For five days sleep will come in fits. The taste coats my dry mouth. The release when it is over is like nothing else you can experience.

Don’t cry for me, however. I am doing exactly what I love doing. This is what I want; this is what makes me feel alive. The numbers. The game. Some people desire retirement so they can travel, fish or golf. Except for that year I spent as a janitor, ah, custodian, I have never worked a day in my life. It isn’t work when you have this much fun.

Tired is a good feeling. Then the anticipation builds slowly all year until the holidays arrive. Then the sickness sets in hard again. The addict is ready for his next fix.



Related posts
The Dangers of a Side Gig
April 19, 2017
Secret Messages
April 17, 2017
It Pays to Have a Hobby
April 12, 2017
Lifestyle, Small Business, Taxes and Investing

It Pays to Have a Hobby

The demographic reading this blog does the things necessary to retire early. The same demographic believes in a side hustle to retire even earlier or to fill time once work becomes an elective. These facts make hobby rules an important consideration. The tax law has a massive loophole few use.

Accountants in the room will understand what I say next. A client walks in the door and his hobby finally turned a few dollars of revenue. No worries, the client says, I can lose money in my business for three years before I have to shut it down and start over. The client actually thinks there is a rule saying you must make a profit 2 out of every five years. By this yardstick, Tesla, a publically traded company, would have to shut down. (Tesla has a decade of loses as I write this.)

The rule people think applies to small businesses actually is a hobby rule meant to serve the IRS, not you. If the rule wasn’t there, people like me would have a field day. Self-employment tax would be a thing you only read about.

People want to be a business when they lose money and a hobby (if they knew the rules) when they have a profit. Race car drivers want to write-off $48,721 of expenses because they won $2,100 of prize money racing. Sorry, it doesn’t work that way.

But there is a strategy here you can use to seriously reduce your tax burden.




Continue reading

Related posts
The Dangers of a Side Gig
April 19, 2017
Secret Messages
April 17, 2017
Crime and Punishment
April 14, 2017
Frugal Living, Lifestyle

The One Guaranteed High-Return Investment You Don’t Own

Every investment, even guaranteed ones, require priming the pump. Before you get paid by your employer you work; before you get paid a dividend or receive capital gains you must invest in the index fund first; before you get paid rent you need to buy the property and prepare it for tenants; before guaranteed government bonds pays you a penny in interest you must first buy the bond. You only get something out if you first put something in. This is true in every part of your life.

I grew up on a farm and after a few years living in town I moved back to the countryside where I feel happiest. Town still has a magical pull. Living in town means everything I need is close by. I can bike everywhere. The need for a car when living in town is minimal. If I lived in town I wouldn’t own a car. For long trips I would rent a vehicle. Uber, my bike and legs would handle 99% of my transportation needs.

Living on a small farm has advantages. The cost of living further from town is offset by the amount of free food, or nearly free food, I get. Raising my own meat (beef, chicken, fish and pork) means I know what is in it. Abundant garden produce means healthy living while the crops are in season. Asparagus in spring, radishes and other fast growing vegetables follow, and apples, apricots, cherries, peaches (yes, peaches in Wisconsin!) and grapes round out the abundant autumn harvest. There is so much good food and it is all free or nearly so. Too bad it doesn’t last all year round.

Continue reading

Related posts
The Dangers of a Side Gig
April 19, 2017
Crime and Punishment
April 14, 2017
It Pays to Have a Hobby
April 12, 2017
Early Retirement, Frugal Living, Lifestyle

Spending versus Cash Flow Meets the Debt Bomb

“It’s not working.”

A long time client started reading this blog and subscribed wholeheartedly into the idea of saving half her income. She discovered the blog early so she had nearly a year of effort under her belt. Student loans were the worst part of her debt, but credit cards and a mortgage also weighed heavily on her financial plan.

Saving half your income is the floor, not the ceiling. In this case, my client and her husband earn nearly $100,000 a year. They wanted to cut their spending to my levels using my yardsticks for spending. They are down to the mid 40s, a very good sign. The lament, however, has me concerned.

The only way this works is to be consistent. Years of hard work can be destroyed by a short-term spending binge. A new expensive car, a cottage up north, a trip to the casino and a new set of furniture can all be spent in a single month. The penalty will take years to fix.





Continue reading

Related posts
Frugality the Right Way
April 5, 2017
Why Trade Wars Never Work
March 17, 2017
Thriving on Minimum Wage
March 15, 2017
Frugal Living, Lifestyle

Frugality the Right Way

My last blog post was a disaster. In an attempt to gain some breathing room I accepted my first guest post without proper vetting. An astute reader quickly realized the guest was promoting a debt consolidation service. I should have known better.

My reasoning was sound; execution needed work. Tax season is getting long in the tooth and I am exhausted from the long hours. Hoping to divert some time from writing to tax work, I allowed the enemy behind the lines. My promise to you, kind readers, is to up my game. I like the idea of guest posts, but I think it would be best if I invited bloggers I know and trust to do the writing.

That said, I have no intentions of reducing my writing output. You come here to listen to my stories and glean my words for valuable advice you can take back home.

Success is a poor educator. When things are going good—and life has been very good to me—I/we start to believe we are smarter than we really are. It takes a solid kick to the crotch to focus attention. As bad as the last post was, a lesson was to be learned you are not aware of: my traffic was rather good! For a terrible guest post I had a high level of traffic. I take that to mean people were attracted to the title: frugality. I decided I should write the guest post intended for you.Continue reading

Related posts
The Dangers of a Side Gig
April 19, 2017
Crime and Punishment
April 14, 2017
It Pays to Have a Hobby
April 12, 2017