People serious about early retirement turn to rental real estate to turbo-charge the process. Saving and investing can get you to retirement fast. With real estate you can go from zero to retired in a few years. It does require careful planning to make it work.
There are three steps in successful income property ownership: buying right, management and taxes. Over the years I have seen many people lose money, even go broke, due to rental properties. I have also seen ordinary people make more money than doctors or lawyers with real estate.Read More
The first week of tax season is in the books as I write this. Most tax seasons bring the same problems with a few notable new ways to mess up a tax return. New employees frequently bring bad habits from previous jobs we work hard to break. A new CPA in my office has reminded…Read More
Out in the boondocks where I live the garbage is picked up every two weeks; recycling once per month. Until a few months ago this arrangement worked well. Garbage was placed in a large barrel the garbage truck could automatically empty into the truck hopper. Recycling was placed in blue plastic bags with paper and cardboard placed in either a box or tied in a bundle. A few months ago the system was changed for recycling. Bags were replaced with a blue barrel the same size as the garbage barrel. I understand why the change took place. Under the new system the recycling company could run the route with only one employee. The truck has a lift (like the garbage truck) to grab the barrel and empty the contents.Read More
There is a lot of confusion among small business owners when deciding on their entity classification and the tax savings involved. It is the first discussion I have with most business clients. It takes time to get pertinent information out so I decided it would be a good idea to write down.
There are five business entity choices, but it really is only three since two are default choices: sole proprietorship, partnership, limited liability company (and its close cousin, the limited liability partnership), regular corporation (also called a C corporation) and the S corporation. You default to a sole proprietorship if you are a one-person business or a partnership when two or more owners are involved.Read More
Extraordinary claims require extraordinary proof or at minimum a darn good explanation. The Internet Retirement Police have attacked my peers over the years so my effort in this post is to provide a short definition of what “retirement” means.
For many people retirement is a beer in one hand, remote in the other. To a Wealthy Accountant (WA) this is not retirement, this is death. If your idea of retirement contains only a beer and remote you are dead, your body only forgot to stop breathing.
I am sure you have heard an older retired person say, “I am busier now that I am retired than when I was working.” I hear the same thing in my office. The retired people telling me this are alive, smiling and bouncy. These are happy people. The others, the ones that check out when the pension kicks in, age a decade in only a year or two. They have no reason to live. Retirement is akin to a nursing home or prison. At least in prison they let you out an hour a day. Some people barricade themselves in their home and quarantine themselves to a small area with a TV for days, weeks, even months at a time. And we wonder why their mental faculties decline.Read More
Will Durant, the great 20th Century American philosopher and historian wrote in the Preface of his Story of Civilization: The Age of Napoleon:
“By the middle of the twentieth century,” says the Encyclopaedia Britannica (XVI, 10a), “the literature on Napoleon already numbered more than 100,000 volumes.” Why add to the heap? We offer no better reason than to say the Reaper repeatedly overlooked us, and left us to passive living and passive reading…
And so it is with your favorite accountant. According to a “personal finance blog” Google search there are around 96,100,000 results. Surely a few of the entries are not personal finance blogs, but many are. So why add to the heap? Will Durant was 90 years old when he wrote those words; I am 51 as I contemplate them.Read More