Tag

clean living

Early Retirement, Lifestyle, Small Business

The Clock is Ticking

When my accounting practice went from a part-time seasonal pastime to a full-time firm I needed to bring in talented employees. Bev, a close friend of the family, had many years of experience working for other tax firms so I asked her to work for me. She accepted the offer.

Decades started to pile up. The joke around the office was Bev worked for my firm longer than I had. It wasn’t far from the truth. Bev was always a talented and faithful employee. She did good work and I could trust her.

But time counts, and keeps counting. Bev had something few people ever possess: talent and personality. Clients loved Bev and for good reason. She knew her stuff and made people around her feel comfortable. In my darkest hours she was there to hold the firm together. When my youngest daughter was born with birth defects she kept the office open while my mental wounds healed.

I have fond memories of those days. I also remember how it ended. Bev comes from a farming background; solid German stock. What I mean to say is she isn’t a petite girl. Wisconsin winters can be brutal. Arctic blasts made it difficult for her to breathe outside. I was worried about her. It was the excuse used to force her to retire.

But that was a lie. The truth is something was changing in Bev. It started slow and steadily advanced. She wasn’t as good at taxes as she once had been. Once she was great at taxes, now she was merely good and rapidly approaching mediocre. It is a terrible thing to say about someone with such an honorable and distinguished career.

I noticed the changes in Bev when she reached her mid-60s. It was small at first. Little things were missed. Sometimes the tax return was correct, but little things around the tax return were forgotten. A note was not updated; a basis statement not completed. And clients still loved Bev.

Each year got progressively worse until the work was unacceptable. I had to review all her work at a much higher level. Bev had to go. It was not an easy choice. She accepted her retirement and took to it like a pig takes to shit, but she was hurt at the time. She still brings her personal tax work in for us to prepare.

Is that Footsteps I Here?
Continue reading

Related posts
Starting a Successful Seasonal Tax Preparation Business
February 22, 2017
Leaving a Legacy Without Destroying Your Children
February 20, 2017
Medical Tourism: Save 90% on Healthcare and Get a Free Vacation
February 15, 2017
Lifestyle

The Subtle Art of Not Giving a F*ck

Three books I read since the beginning of the year stand out as books readers of The Wealthy Accountant should find interesting and useful. Two books I recommend for purchase, the other can be borrowed from the library; I’ll indicate my recommendation as I introduce each book. The dividing line between borrowing from the library and purchase is the desire to mark the book with a highlighter as you read. Highlighted books are easy to use as future reference. All books I recommend in this blog are books I highlight and own.

A strong theme on The Wealthy Accountant is frugality. So why do I recommend the purchase of so many book? First, I have a weakness when it comes to books. I buy a third to half of all books I read. The percentage changes with time. Many times I start reading a library book and instantly know I want to mark the important passages for future research and use. Your need for research material may not be as high as mine if you don’t own a business or publish a blog.

Second, if a book is important I will find a way to own it. Knowledge is power; knowledge is freedom. My mind is my most precious asset. I feed my mind every day and reference back to previously read books often. A well-read person is almost always wealthier in financial terms, but is always wealthier in quality of life. I have never met a successful person who is not well-read.

Cutting costs is easy. Unnecessary spending is tossed out the window. But books are as vital as food. Some books, especially novels, are a one-time read so the library is a perfect way to consume these books without any financial outlay. Some nonfiction books fall in the same category. Then there are books which touch us deeply. A few works of fiction rise to this level. Flowers for Algernon comes to mind. Many nonfiction books are significant enough to own. If you are like me, you will find yourself returning to these treasures often.

On to our list of must read books to finish off the winter.




Continue reading

Related posts
Leaving a Legacy Without Destroying Your Children
February 20, 2017
The Clock is Ticking
February 17, 2017
Medical Tourism: Save 90% on Healthcare and Get a Free Vacation
February 15, 2017
Lifestyle

Watch the News Right or Turn it Off




News over the years has deteriorated into biased reporting, slanted by political opinion. Finding quality news to form your own opinion is nearly impossible to find. Yet, without good information you can’t make informed decisions in your investing, business or personal life.

As bad as it is, there are ways to still get quality news reports. It requires effort to sift through the garbage to find facts you can use to improve your business and personal life. The BBC, The Economist, and National Public Radio still provide solid reporting with a minimal of political bias. Fox News is not news, except for those rare occasions when they report an event they have not had time to work a political angle on yet. CNN is somewhat better, but still contains plenty of bias.

Before you blame to broadcasters and the internet news feeds, remember, we are the ones feeding the beast. By consuming meaningless opinion pieces we encourage more of the same production. Our own personal biases will determine if we love Fox News or hate it. I don’t care for Fox News for a completely different reason I will share shortly.

Polarization and populism has taken over. People only want to hear what they want to hear. News no longer informs with facts; it reinforces already existing personal biases. It caters to base emotions like anger and hate. And let’s not pick on Fox News alone. I don’t watch TV so unless I am visiting family or in an airport, I don’t get much TV news indoctrination. I prefer internet news feeds. CNBC provides business news, The Economist provides a wide variety of news from around the world, and gasp, I also tend to sift through the dung pile of Yahoo’s news feed.Continue reading

Related posts
Leaving a Legacy Without Destroying Your Children
February 20, 2017
The Clock is Ticking
February 17, 2017
The Subtle Art of Not Giving a F*ck
February 13, 2017
Early Retirement, Estate Planning, Lifestyle

Avoiding the Gold Diggers

Community Property States

At a recent Camp Mustache where I gave a presentation I also offered one-hour personalized consultations. Most of the advice I give is identical among all people I consult with. Most themes come up again and again. About 20% of what I advise is unique to the individual.

This particular group was comprised of high net worth people. These people save a massive percentage of their annual income and are in a position to retire early; mid-30s is average. Incomes were all over the map. Some had high income; some had modest income. All invested heavily in index funds and/or real estate.

An attractive young woman was next in line for a consultation. She had amassed a reasonable amount of liquid funds and was planning her retirement strategy. I knew she wasn’t married by looking at her tax return. I asked if she had a special someone in her life. She said no. I then made the offhand comment, “If you ever decide to get married you will have a prenup.”

Prenuptial agreements are common so I felt the comment was just a reminder. She seemed surprised so I reiterated she will need a prenup if she gets married, especially since she has a sizable nest egg. She wasn’t so certain it was a good idea. I reminded her gold diggers don’t always have tits. It took a bit of convincing to get her to come around to my way of thinking. I told her if I ever found out she got married without a prenup I would be very unhappy with her. My final selling point was, “When you have money some people will lie to get you to marry them. Then when they screw around and leave, you will pay them half your net worth to screw another woman. It is a bitter pill you want to avoid.”Continue reading

Related posts
Leaving a Legacy Without Destroying Your Children
February 20, 2017
The Clock is Ticking
February 17, 2017
Medical Tourism: Save 90% on Healthcare and Get a Free Vacation
February 15, 2017
Early Retirement, Lifestyle

Recap of Camp Mustache SE

Working as a team to climb any wall in our way.

Each edition of Camp Mustache gets better than the one before. Camp Mustache SE in Gainesville, Florida (January 13 –January 16, 2017) is the fourth in a series of camps, this being the first outside the Seattle area. I have had the honor of attending and speaking at all but the first Camp Mustache.

Stephen Baughier organized the event with guidance, advice and a helping hand from Emma Pattee. Emma’s experience organizing Camp Mustache in Seattle allowed Stephen to move up the learning curve faster. The added experience and hard work made Camp Mustache SE awesome on every level. For the record, I have already accepted the offer to attend Camp Mustache IV in Seattle over Memorial Day weekend in the states this May. There is no doubt the gathering will be an incredible place to learn and meet like-minded people in the FIRE community.

Several notable names were in attendance. Pete, the guest of honor, was, of course, there. J.D. Roth (Money Boss), Joshua Sheats (Radical Personal Finance), Brad Barrett (Travel Miles 101), Gwen (Fiery Millennials), Jonathon Mendonsa (Chosefi), Zeona McIntyre (ZeonaMcIntyre.com), Brooks Nelson (Gainesville Cohousing) and more were available for questions. (Hope I did not miss anyone.) Continue reading

Related posts
The Clock is Ticking
February 17, 2017
The Subtle Art of Not Giving a F*ck
February 13, 2017
Living Between Mr Money Mustache and Tim Ferriss
February 10, 2017
Lifestyle

The Worldview of the Financially Independent

IMG_20170112_134557What started as a grand idea has morphed into a changed worldview. For decades I focused on the local community in my practice. I would speak for various organizations around the area, rarely traveling more than 50 miles. And I was happy with that.

My speaking engagements and traveling expanded during the 1990s when I entered the securities field. As memory serves, every presentation I have given outside the State of Wisconsin was for something related to securities. Until two year ago.

Two years ago I had this brainstorm to expand an area of my practice that had been an itch I had to scratch. It went horribly wrong and changed my life in ways I never expected. It was a simple idea. Swoop in on a personal finance conference, dazzle them with my usual charm, and sell an idea. It didn’t go according to plan.

My idea was accepted in a modified form. The problem arrived when I was offered an opportunity to expand my worldview like never before. Remember, I am an old farm boy from the backwoods of Wisconsin. This shit doesn’t happen around here. I was totally unprepared.

The result was this blog and a shout out by Mr. Money Mustache. I had to write this blog; I had no choice. The idea was on the back burner for years. Now I had to push forward with the project. People wanted to hear what I had to say.

And then there was the growing demand for my services and requests to speak to more groups. As I started to attend these events and communicating with many people in the FIRE (financial independence, retire early) community, I started to build friendships. I missed these people when they were not around.


Continue reading

Related posts
Starting a Successful Seasonal Tax Preparation Business
February 22, 2017
Leaving a Legacy Without Destroying Your Children
February 20, 2017
The Clock is Ticking
February 17, 2017
Lifestyle, Small Business, Taxes and Investing

The Tax Loophole You Never Thought Of

al_capone_in_floridaWhen someone in the local area makes the news for embezzlement it is not a matter of if they will show up at my office, it is when they show up. The same scenario plays out every time. Someone gets caught with her fingers in the cookie jar (usually for gambling) and charges are filed. The district attorney prosecutes the case. (Embezzlement cases make the news and the district attorney is a politician who can’t help getting on her knees to earn some votes.)

Most embezzlement cases end with a conviction, or more often, a plea agreement. The accused is eager to make a deal that keeps her out of prison. The DA and judge soil themselves with the familiar sentencing template. The defense attorney has no choice but to recommend her client goes along with the deal to stay out of jail.

I see the same agreements again and again. The prosecutor demands a brutal repayment plan to the victim, the judge rubber stamps the deals and the accused jumps up screaming, “I’ll take it!”

Then the IRS letter arrives three weeks later and the house of cards is ready to fall. Ill gotten gains, you see, are still required to be reported as income and the IRS watches these financial crimes cases very closely. When the defendant loses or takes a knee the IRS swoops in for their share of the pickings. All that unreported income is now taxed with penalty and interest added. And no money to pay for it.


Continue reading

Related posts
Starting a Successful Seasonal Tax Preparation Business
February 22, 2017
The Clock is Ticking
February 17, 2017
The Subtle Art of Not Giving a F*ck
February 13, 2017
Lifestyle, Small Business

The Gift of Karma and the Art of Pay It Forward

endlessknot03dI settled back with a good book on a quiet New Year’s Eve back in the early days of my accounting practice. Mrs. Accountant goes to bed early and was already tucked in. We rarely party or go out on New Year’s Eve. To us it is just another day.

My tax office back then was the remodeled basement so I was always close to work. Since the accounting part of my business was many years into the future, there wasn’t much to do around the holidays except enjoy some great reading. A few preparations for the upcoming tax season were as far as they could go.

Cable did not enter our house back then and network television did not interest me. The World Wide Web was just coming into existence and wasn’t a household phrase yet. Internet service was America Online accessed by dial-up. There were fewer distractions to drag a guy away from a good book in those days.

I was reading one of Will Durant’s Story of Civilization books that New Year’s Eve as memory serves. (I consider Will Durant one of the best writers to have ever live. His 11 volume Story of Civilization series is some of the best writing on human history ever.) My cup of tea was on the table next to my recliner where I was reading.

I lived in town for a few years back then to establish my practice. The living room had a bay window looking out toward the street. It was my custom to keep the curtains open so I could see if anything was happening outside.

A blood-curdling scream pulled my eyes from my book. Out the bay window I saw a woman falling from the passenger side of a car! She fell hard. The car sped off.


Continue reading

Related posts
The Clock is Ticking
February 17, 2017
Medical Tourism: Save 90% on Healthcare and Get a Free Vacation
February 15, 2017
The Subtle Art of Not Giving a F*ck
February 13, 2017