Posts by Keith Taxguy

The History of Polarized Politics in the U.S. and Money

How much is polarized politics affecting your financial situation and wealth. Don’t let the politics of others destroy your dreams. Learn how you can take control and excel.

How much is polarized politics affecting your financial situation and wealth. Don’t let the politics of others destroy your dreams. Learn how you can take control and excel.

The polarized political environment in America is not unusual. What makes the current situation so incredible is the comparison to what came before.

After World War II the United States experienced a prolonged period of relative political calm. While disagreement was rife, there was a sense of compatibility between the opposing political parties. A few Republicans were more liberal than some Democrats and a few Democrats were more conservative than a few Republicans. It was a world where liberal Republicans and conservative Democrats existed.

That started to change in the 1970s and blew full force as the 1980s arrived. The reasons are varied, but not the topic of today’s discussion. We are interested in the history of polarized politics and how it affected wealth. The goal is to learn from the past so we can better position ourselves for success in the toxic environment we find ourselves.

Politics is always a dangerous topic to cover. And it might not have an immediate connection with money or wealth. But experience (with heavy doses of research) reveals politics indeed has plenty to do with wealth and wealth creation or destruction. Polarized politics has visited America before and in much worse circumstances.

We will address politics first, then personal finances.




History of Polarized Politics

 

Founding Fathers

There is no exact count as to how many Founding Fathers the U.S. had. Some say there were 7, others 10. The Constitutional Convention had 55 delegates.

Regardless the number of Founding Fathers, there are several points worth noting about their behavior. First, they were all men of the landed class. In other words, the Founding Fathers were men with at least a modest amount of wealth in real estate. This isn’t the most politically correct situation by today’s standards. But we can (or at least should) agree this group of men did a pretty good job at nation-building.

Many Founding Fathers owned slaves. Benjamin Franklin had to dance around the subject when he was the American agent in London for the colonies. The British found it ironic Americans wanted freedom while holding tight to slavery.

Storing crops was more difficult in those days so it was common to store the excess corn crop as whisky. Consumption of alcohol was high in the 18th century. Bad water also encourage more alcohol consumption. It is no exaggeration to say the men who brought America to life were inebriated much of the time. While not drunkards by the standard of the time, some might be surprised how much work these men accomplished with the blood alcohol level they regularly had.

Benjamin Franklin

We only have time to discuss one Founding Father at length; we will touch on several others for reference. Since Ben Franklin is a leading Founding Father he will make a prime example for our discussion.

Much of the polarization of modern politics revolves around the identity politics of the left and the conservative ideas of the alt-right. There isn’t a single Founding Father who wouldn’t be nauseous over the current national dialog. Or would there?

Conservative Franklin: To the chagrin of the left, most Founding Fathers were decidedly conservative. Before President Reagan, Benjamin Franklin had his own version of trickle-down economics. Franklin believed the more money the rich had the more it percolated down to the poor. Franklin stated the”rich do not work for one another…” The rich, according to Franklin, spent their money on the poor buying the goods and services they produced. (Benjamin Franklin: An American Life  by: Walter Isaacson; Simon & Schuster; 2003; pages 267-8.)

Welfare and Social Security: Franklin also warned against the welfare state. He wrote welfare had unintended consequences and promoted laziness. Modern ears may find this palatable, but Franklin went further. “I fear the giving mankind a dependence on anything for support in age or sickness, besides industry and frugality during his youth and health, tends to flatter our natural indolence, to encourage idleness and prodigality, and thereby to promote and increase poverty, the very evil it was intended to cure.” (Italics mine.)

What Franklin was saying is you either work or deserve to starve, even in old age or during illness. Social Security is something Franklin would probably not approve of. If you lacked the necessary frugality and industriousness during the vigor of youth, you serve as a living example to those who consider such sloth.

Minimum Wage: Franklin also disagreed with the minimum wage. By artificially raising wages Franklin felt it would overprice goods destined for foreign markets.

All these positions place Franklin decidedly to the right of center. But was he really cold-hearted? Did Franklin believe people should be allowed to suffer?

While conservative readers might be licking their lips by now, the liberal folks will have something to cheer shortly.

Liberal Franklin: Benjamin Franklin had a balanced political stance. In some ways he could be called a liberal Republican by today’s measures. Franklin had no problem with taxes as long as they were coupled with representation. His lack of debate against the Stamp Act of 1765 is indicative of his political position. Only when there was a serious backlash back home did Franklin give us our first political spin campaign to right his reputation.

Policies should encourage hard work, according to Franklin. He felt hard-working people lucky enough to achieve wealth (became rich) had an obligation to serve the community. These duties should improve the lot of the community, providing for a prosperous middle class. Those in genuine need (people suffering illness before they had time to work for their keep, children and widows, et cetera) were the responsibility of the wealthy. Today we might consider many welfare programs as serving this need in a much larger population than existed in 18th century America.

There are also a few things we might find appalling in Franklin’s behavior even in the Age of President Trump.

The Un-family Man: Franklin left his wife and children to serve as colonial agent in London for the Thirteen American Colonies. Even when opportunity arose, he chose to stay in London or travel to Scotland and Paris, even as his wife’s health failed. Ask John Edwards how that helped his political career. Even the King found this behavior strange when he inquired as to why Franklin remained in England in 1774 when Franklin had no more duties there.

Womanizer: We can forgive Franklin for many of his political positions due to the age he lived in. His position on slavery softened over the years, but as Isaacson reports, Franklin used the qualifier “in time” in letters he wrote. He knew slavery wasn’t a workable prospect, buy also kicked the can down the road.

Modern eyes are ears will be most disturbed by Franklin’s behavior towards women. The list of affairs and potential affairs is long. Need I remind you Franklin was married with children during many of these flirtations.

History records Benjamin Franklin enjoyed the company of women more than men when it came to social gatherings. The flirtations weren’t always innocent and the women not always unattached. There is a crude sketch by Charles Willson Peale of a scene he walked in on of Franklin kissing Polly Stevenson, the daughter of Margaret Stevenson (Franklin’s landlady). It is possible Franklin befriended Polly’s mother for the purpose of spending time with Polly. Mary “Polly” Stevenson was 18 years old at the time Peale accidentally walked in on the kissing scene. But there is also a story of Franklin in a flirtatious conversation with Polly when she was 11 years old discussing her desire to be with an older man Franklin’s age.

Final Notes on Franklin: I spent a fair bit of time on Benjamin Franklin for a few reasons. Franklin is a Founding Father and certainly one of the most important and influential of the Founding Fathers.

He was a man with all the failings and shortcomings of men. His humor was crude at times, as we see when he recommended to the Royal Academy of Brussels that they should study the causes and cures for farts. It is unlikely Franklin was faithful to his wife and was distant to his family often. He even missed his only daughters wedding.

Franklin had strong political beliefs that would have toppled normal men. He didn’t suffer such a fate because he never held a high office. He was more a grandfather and guiding hand in the creation process of the United States. His role was certainly instrumental, but he managed to avoid the polarization politics brings once high office is held. Even Washington faced real criticism for the first time as president.

Another benefit of reviewing Benjamin Franklin is he shows us the world and human nature when the United States was just a dream and there were only American colonies as part of the British Crown.

If we fault Franklin for his short-comings that many current political leaders share, then we espouse the notion that Franklin should not have been allowed to do his work of nation-building. Such opinions at minimum presuppose the right of the United States to exist or at least ever to come into existence.

It is a truism of the ages: The worst of human nature can lead us to greatness.

Maybe we should be more open to human failings if we aspire towards a better tomorrow.




Thomas Jefferson

We will cover the next actors with less detail as they all share similar traits we find so disqualifying.

Thomas Jefferson is also a Founding Father of the United States. He wasn’t the biggest fan of slavery and history assumes he treated with slaves with dignity and respect. (How else could we remember a man as great as Jefferson and his contribution to our morals, values and standards.)

Jefferson also served as the third president of the U.S. That said, Jefferson did own slaves regardless his dialog on the subject. Over 100 years after the abolition of slavery in this country we still feel the scar it has left. The black community more than any other.

To make matter worse, Jefferson had a child with at least one of his slaves. In a modern era where people in authority are criminally liable for sexual activity with someone under their authority, this seems like a serious offense. Yet it happened and we seem unmoved by the act. Maybe time does heal every wound. Or not!

For all Thomas Jefferson gave this nation, he was still a man with failings. Failings we would consider criminal in the current environment. If modern rules were applied Jefferson would never have been president and his work may never have been created. How a man with such concerning behavior gave us rules to live by is hard to understand. But once again, the greatest of us tend to have the greatest failings, too.

President Andrew Jackson

President Andrew Jackson did more to define and solidify federalism than any other president. But could a man of such accomplishment be endowed with faults?

Polarized politics were at their worst in Jackson’s day. Jackson won the popular vote three times and the presidency twice. He also gave Native Americans the Trail of Tears.

Instead of focusing on Jackson’s flaws, I want to refocus on our topic: political polarization.

People today think the things said and done are the worst ever. Wrong! People had no problem Jackson killed a man in a duel, he was also hated enough to be the first president to have an assignation attempt on his life.

He married his wife before she was legally divorced from her husband. As you can imagine, adversaries made hay of this knowledge. They hounded Jackson and his family to the point of murder.

The political campaign of 1828 was brutal. The fight contained numerous ad hominem attacks. This isn’t so different from modern times. The difference was how the attacks also dragged Jackson’s wife, Rachel, into the fight.

Rachel Jackson started to suffer from what we would call today anxiety and depression. The stress became so acute it lead to a heart attack that killed her. Jackson never forgave his enemies for murdering Rachel. We have no way of knowing if the stress caused her death, but Jackson didn’t care. He blamed his enemies and hated them to then end for what they had done.

If you think politics are polarized today, you might want to read up on President Jackson. Few political leaders in the U.S. experienced such an assault in attaining office.




President Abraham Lincoln

Most Americans hold President Lincoln in high regard. They hold views of Lincoln as a moral and honest man. He freed the slaves so he must be good, right? He also preserved a nation rent in two by political division. Never before or since has our nation been so politically divided. There is nothing in the current dialog we can compare to the division our nation faced and underwent in those days of the early 1860s.

These are not the worst of times. Our nation weathered far more serious problems than a misogynist Trump. Need I remind you the great Abraham Lincoln consorted with prostitutes while married. Yeah, great leaders are riddled with flaws. Perhaps the flaws are what make them great.

Yes, I digress. It is political division that most concerns us. Except, all the discourse on said divisions seem to revolve around moralistic behavior.

FDR

Before we finish with the Supreme Court and discussing the personal finance implications, we turn to FDR, the hero of the left.

FDR also had serious flaws when it came to women. He also had an affair. (It starts to sound like a nervous tick after a while.)

The Great Depression was the issue of the age when Roosevelt took office. You would think after the economic crisis the Republicans presided over, the Democrats would have unchallenged rule. You should think again.

Before World War II became an issue, FDR had a New Deal. There was only one problem. Republicans packed the Supreme Court for years and the Court kept knocking down his programs.

Roosevelt had an idea. If the Justices wouldn’t retire so he could nominate his own choices friendly to his programs, he would expand the Supreme Court so he would have vacancies to fill.

This struck Republicans a very wrong. And what do you know, even Democrats felt it was a power grab by FDR. FDR’s own party denied him the ability to expand the number of justices on the Supreme Court for political reasons. Talk about political polarization! Yes, it happens even within parties. Even worse than we see today.

Supreme Court

There is always the temptation to think this is the worst time EVER! Rarely are such thoughts true.

Brett Kavanaugh’s nomination to the Supreme Court by President Trump signals the worst ever injustice in the history of the U.S. But is it?

There is already talk of impeaching Justice Kavanaugh. Some have warned this would set a bad precedent and has never happened before. And that is a lie!

Here is a quick rundown of notable Supreme Court dramas.

Removed from Office: Supreme Court justice John Rutledge was removed from the court by the Senate in 1795. Yes, 1795! Rutledge’s wife died in 1792 and he didn’t take it well. His mind deteriorated to the point where there was no other choice.

The same year Justice John Blair suffered from such severe headaches he was unable to continue. Rather than have the Senate remove him, he resigned.

Assassination: Justice Stephen Johnson Field was nearly assassinated in 1889 by a California State Supreme Court justice in a confusing story of divorce, alimony and a lost case.

Antisemitism: The Supreme Court had a justice so hated not a single member of the court attended his funeral. Justice James Clark McReynolds was a very vocal anti-Semite. In 1916 the Jewish justice, Louis Brandeis, joined the Court. McReynolds left the room every time Brandeis started to speak.

Racism: Justice Hugo Black  belonged to the Ku Klux Klan prior to taking the bench.

There are stories of bribes and other nefarious behavior by Supreme Court justices. Justice Kavanaugh may still resign or face impeachment by the Senate at some point in the future. Regardless, we sometimes wrongly assume the Supreme Court, the final arbiter of law, rule and justice in our nation, is free from political polarization. Unfortunately, the Supreme Court is just as liable to the shortcomings of human nature as any group.

 

With the groundwork on political polarization in place, we now turn to the impact polarization has on personal finances, wealth and money.




Personal Finance in the World of Political Polarization

 

The lesson above clearly outlines a history of political polarization in the United States from before its inception until today. The luxury of self-pity falls on deaf ears when history is called into action. Things have been marching higher for a long time, as Steven Pinker notes in his landmark works: Enlightenment Now: The Case for Reason, Science, Humanism, and Progress and The Better Angels of Our Nature: Why Violence has Declined

Stop burning money! Learn the secrets the wealthy have used from the beginning of time to build their financial fortune.

Stop burning money! Learn the secrets the wealthy have used from the beginning of time to build their financial fortune.

The Long March of Growing Wealth: Humans have lived on the Earth for a few hundred thousand years. We lived short lives back then and progress was slow. Life was dangerous. Basic shelter might have been a cave, tree or outcropping.

Then man (it might have been a women for all we know) discovered how to create and control fire. Cooking soon followed which improved life immensely. Cooked food was easier to digest and it killed pathogens. Life was still hard, but lives were made a bit easier with the discovery of fire.

Shelter improved slowly over the eons. Fire made the home warmer in cold climates. Still, disease and subsistence meant most lives were brutal and short.

The pace of human progress was painfully slow for the first several hundred thousand years. Rape, murder, war, disease and starvation were constant threats. Men died from injury and women in childbirth. When God informed Adam and Eve of their curse as they were kicked out of the Garden of Eden, he meant it. But curses have a shelf life.

Civilization: Somewhere back there, over 10,000 years ago, humans became civilized; congregating in cities, that is. This was another improvement. War was a constant threat, but now a larger group was needed to harm the community.

Health issues were the age old problem.

Fast Forward: The pace of improvement in the human condition keeps accelerating. First rudimentary shelters, then fire, now cities. A few lucky souls avoided disease and injury, living to an old age, even by modern standards.

Cities grew and slowly man discovered ways to alleviate medical afflictions. Many remedies were more harmful than helpful. Such is the nature of progress.

Money was invented and the ancient Greeks debated what money really was and how it worked. (Sapiens: A Brief History of Humankind) Over half of Jesus’ parables dealt with money or wealth. Life was improving at the fastest pace ever in history and it was slowly picking up steam.

China flourished in isolation from the West; Europe enjoyed the Pax Romana. It would be nearly the thirteen hundred years before mankind experienced the Pax Americana.

From the scientific advancements of Greek and Roman culture, mankind dropped into a Dark Ages. The path of progress is steady and up, but there are plenty of detours along the way. The line is not straight, but it leans ever more so upward every day.

1870: Something happened around 1870. The Dark Ages had long passed, the Renaissance morphed into an Age of Reason and science and discovery flourished. And most important, enough humans finally existed to hit a critical mass, causing an explosion of economic growth the world has never seen before.

 

Gross World Product

 

As the graph above illustrates, economic growth was painfully slow until 1800 where we see a slight tilt north. In 1850 the Gross World Product turns decidedly higher and goes parabolic in the 20th Century.

The pace of wealth creation accelerated like never before. Things got better. A lot better! Really fast.

Pockets of suffering still exists. The 20th Century experienced two world wars, Stalin’s Russia and Mao’s famine. Many people suffered and died. But many more lived better and longer, too.

Inequality: The buzzword of the day is inequality. The rich seem to get richer while the poor get poorer. But is this really true?

Inequality still exists and surely always will as long as more than one human is alive. There has been an uptick in income and wealth inequality recently. Compared to historical norms we live is really good times.

The wealthiest people alive in 1930 rarely, if ever, had indoor plumbing. Today, with rare exception, we all enjoy indoor plumbing.

Medicine is even more widespread. Polio is a rare disease; small pox eradicated. While indoor plumbing eludes many in third-world (I hate that term) countries, modern medicine is brought in on a regular basis. Fewer women are dying in childbirth. Men have fewer dangerous jobs shortening their lives. Children live beyond infancy at a very high rate. These numbers have never been so generous ever in history. Things are as good as they’ve ever been, and believe it or not, it’s still getting better and better every day.

Walter Scheidel in his book, The Great Leveler: Violence and the History of Inequality from the Stone Age to the Twenty -First Century outlines how inequality is on the decline and has been for a long time. Periodic catastrophes level the playing field immensely, but there seems to be a natural level of inequality. The good news is that everyone can have a significantly high standard of living even on the lower ends of the income distribution scale.

Optimism is the Best Financial Choice: If you have to make the call, always bet things will get better. For thousands of years things have been doing just that and at a rapid clip for over 100 years.

Warren Buffett has a reputation as a master stock investor. People spend a lot of time dicing his decisions looking for the secret sauce. I can save you the time. Buffett is the most optimistic guy you’ll ever meet. Even his good friend Bill Gates acknowledges surprise by how upbeat Warren always is.

Buffett came out in support of Hilary Clinton in her bid for the presidency. When Donald Trump won many called it the end of America and probably the world. A bit dramatic, I think. Buffett made it clear America has the “secret sauce” when it comes to economic growth and that America will do just fine even with Trump as president. I personally think the human race has a bottle of that patented sauce.

Yes, some people have it bad. Cancer might not feel like a time to be optimistic. But this isn’t about the individual level. We are talking humanity here. As a whole things are chugging higher all the time with only periodic setbacks.

The stock market reflects these facts. In the U.S. the stock market has powered higher decade after decade. Even the Great Depression is a minor speed bump when the charts are viewed over large time periods. It looked scary up close and personal. Then, a few decades later it looks like a minor dimple on the chart.

The 1987 stock market crash is the same story. The Dow dropped 22.6% in one day. The decline requires you squint your eyes to make it out now.

To the Future and Beyond: Life is good and getting better! Calls for the “end of the world” have been with us from the beginning of time. It’s a story that sells, but never delivers.

The future is bright. Today isn’t so bad either!

America and the world will have challenges ahead. That doesn’t mean optimism is wrong or dead! It is only an acknowledgement of reality. Every challenge will be confronted and re-challenged as we boldly go where no species has gone before.

Don't miss out on the progress happening all around you. Don't let polarized politics harm you financially. Use the "secret sauce" the wealth have used forever to build wealth.

Don’t miss out on the progress happening all around you. Don’t let polarized politics harm you financially. Use the “secret sauce” the wealth have used forever to build wealth.

Back to Politics: I know, I know. We never had a president like Trump. True.

We never had a Founding Father like Franklin either. How could such a womanizer, a masher, be allowed to engage in nation-building after the things he did.

And a president who fathered a child with his slave! How will the nation survive?

And don’t forget the evil of the Trail of Tears, a duel and murder and the death of a president’s wife.

A Civil War didn’t slow us down. A great president with massive flaws sewed the nation back together.

FDR tried to manipulate the Supreme Court to no avail. Talking of the Supreme Court, these are the people who gave us Dred Scott! These flawed men (most of them were men) did something wonderful as a whole. As bad as they were, their flaws made us stronger, more vibrant.

Politics is NOT more polarized than ever before. The First Lady is miffed, but not dead or even scuffed.

Things are not going to hell in a hand basket. The economy may falter from tariffs, but before long we’ll scale even higher heights. It’s almost unbelievable and then it happens again!

Never lose faith. Optimism is always the best choice. Things are good and getting better. We live longer and better lives. Economic and personal wealth is at sky high levels and rocketing higher! And any decline in the markets is a correction soon to be followed by greater heights!




It’s not a Dream; Success is Real: I’ve been around long enough to personally hear many of the doomsayers. They fall by the wayside every time. Yes, much of the Western world in more polarized than it has been for many decades. Let me remind you of the above chart. From 1850 to 1900 the U.S. exploded higher economically. During this time we experienced the Civil War and what many in the south thought was the end of the world, the freeing of the slaves.

Not only didn’t the world end when we took the moral high ground, we excelled. But we had to experience the debauchery and evil of slavery to propel us from the ignorance. We certainly don’t want to go back. It will require vigilance to retain our hard fought gains.

This is not the End: In recent times we were told the U.S. was caput because  a womanizer like Clinton was president. Did anyone take the time to research Franklin and Jefferson? Caput! I think not!

Then Bush was a sign of the End Days. Nope! President George W. Bush proved to have human failings, but we did fine.

President Obama was the worst. I had clients who came into my office saying their life’s mission was to prevent Obama from getting a second term. What a waste of time! The economy grew, the stock market was up and America and the world did great after a serious economic debacle.

And now we have the hated President Trump. Many tears have been shed. The Supreme Court is forever tainted (unless you read few history books where you’ll discover it was always tainted). I’m not a fan of Trump. I disagree with many of his policies. But not all! An honest person will find issues where agreement exists. Who doesn’t like lower taxes? We can debate who gets how much and the fairness of taxes, but com’on! I also agree with more infrastructure spending. I’m against tariffs which are nothing more than a tax on consumers. Call it a quasi value added tax, if you will.

The Beginning: In the darkest hours of World War II, Winston Churchill gave encouragement to the British people as Nazi bombs decimated London. His immortal words are as vital today as they were then as we worry ourselves sick over geopolitical events. His words are a reminder things always get better and setbacks are only temporary.

Now this is not the end.

It is not even the beginning of the end.

But it is, perhaps, the end of the beginning.

 

 

More Wealth Building Resources

Credit Cards can be a powerful money management tool when used correctly. Use this link to find a listing of the best credit card offers. You can expand your search to maximize cash and travel rewards.

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!

 



The Best Conference on Money

This post will cover several issues. It will serve as a:

  1. FinCon18 review,
  2. as an example of how to best manage conference and seminar attendance for maximum results and
  3. as an update on the future of this blog.

These three issues are interconnected as will be clear shortly.

 

Professionals from all walks are either required to attend conferences or strongly recommended to do so. As a tax professional for over 30 years I’m familiar with the different types of conferences and how they can provide value well beyond the fee paid to attend. As we explore using conferences to further your wealth and career, I will use personal examples to build an actionable plan you can use to maximize results, creating the most value for your time and financial investment.

FinCon is a large personal finance conference that floats around the U.S. each year. We will use the FinCon conference to illiterate best practices with my experience as an example. FinCon18 in Orlando is the best conference of any kind I ever attended. That is a tall order considering I crashed and burned at FinCon17 in Dallas the prior year.

Small conferences are straight forward. A small number of people gather with a common goal. These small gatherings are generally seminars. Our discussion today involves the larger gatherings with several tracks. Seminars are easy to define. If your goal is learning about the new tax laws you find a seminar on said topic and attend. Seminars are usually a day or two with one topic in one room. You will not miss a breakout session because there are no other tracks.

Large conferences are overwhelming. FinCon had 8 breakout session tracks running simultaneously at times this year. FinCon Central was a hive of activity concurrently with vendors hawking interesting products and ideas. (Some of the best lessons are learned in the mosh pit where people mingle without a formal framework . Vendors bring new ideas to the table. The combination is a powerful mixture.) Unscheduled meetups and parties are common. It’s easy to feel overwhelmed when 2,000 people of like mind gather. So much opportunity abounds! Where to begin?




Lessons from FinCon

 

Pain is a more powerful motivator so we’ll start with my struggles from both FinCons I attended.

Large conferences are hard to understand before attending first. FinCon has multiple cultures under one roof. Virtually every interest in the financial community is covered. Finding people with similar interests is easy. Finding sessions tailored to your goals is equally easy. So why did I fail the first year and sail the second?

Upon review I believe the disaster that befell me at FinCon a year ago was set in stone before I ever left the house. I was well aware of the educational benefits FinCon offered, but choose instead to focus on meeting as many people as possible without regard to sessions.

FinCon is the best financial conference I ever attended. The social and educational opportunities are endless. Build your business, increase blog traffic and more. #wealthyaccountant #FinCon #FinCon18 #money #media #education #seminars #blogtraffic

FinCon is the best financial conference I ever attended. The social and educational opportunities are endless.

You probably share a trait I have. I want to help as many people as possible so maximizing the number of people I associate with during the conference seems like a valid strategy at first glance.

A second trait we may share involves goals. I made the critical error I could learn what I needed to know elsewhere and therefore disregarded educational benefits from sessions. Traffic to this blog is what I wanted and felt the more people I bumped shoulders with would increase my chances of hitting the right combination that would spike blog traffic.

There is nothing wrong with traffic goals. Traffic is the lifeblood of blogs, YouTube videos and podcasts. If nobody shows up all your hard work is in vain. Unfortunately, bumping shoulders with every warm body isn’t the brightest idea I ever had. It eventually comes off as pretentious. Running a  million miles an hour also alienates many people that would normally be happy to help you achieve your traffic goals.

The inevitable happened, of course. My energy drained, I was less engaged, made less than quality first impressions and then met an individual edgy enough to want to hurt me and did. This is where I totally went off the rails. At first I pointed the blame out there. After I calmed down and seriously considered what happened, I realized I needed a good long look in the mirror.

FinCon ( and the accompanying Plutus Awards) are the best the industry ever produced. And my ignorance destroyed my first chance at massive gains. My goals were unmet.

It hurts to confess my errors. But it must be said! FinCon is too large an opportunity for anyone who attends. Wasting the first year over such foolish decisions is something I want you to avoid.

Now we can explore how I turned this boat around.




Round Two

 

I might have crazy ideas, but I’m a fast learner. Some people lick their wounds and never return. You and I are not those people. We own up to our mistakes and try again. We learn from past experience — wins and losses — and grow from there.

Last year I never made it to a single FinCon session except for the First Timers’ Orientation. I didn’t listen well.

I made a point to talk to every person I could. Attended every party, too. Didn’t drink much, but talked the leg off every human without a nautical mile. The hours were long and grueling. A repeat wasn’t something that excited me.

Want to be rich? A millionaire? Then you need to attend the FinCon conference. Learn how you can be a millionaire. #wealthyaccountant #millionaire #rich #wealth # money #conference #seminar

The right conference or seminar can change your life. This conference makes millionaires.

Once again, the FinCon experience was set in stone prior to leaving the house. This time I made a point to attend at least a reasonable number of sessions. I wanted to finish FinCon with actionable material. (More on this in a bit.)

Touching base with old friends and business acquaintances was secondary, but still part of the scheduled program. Attending sessions I found most important was a priority.

Education is a powerful motivator for me. I like working with people, but people are exhausting! Too many people pulling at me simultaneously and I start to fray around the edges. But education is something I can immerse myself in every waking hour. By spending at least a portion of each day learning at FinCon I reduced stress and burnout. My defenses were up and there was not a repeat of the prior year.

You would think a focus on attending workshops and sessions would limit my socialization. It didn’t! I had more in-depth conversations with readers than last year as we waited for a class to begin. People I never met before came to me to shake my hand. How awesome is that? The solitary life of a writer suddenly became real when faced with people I helped with my work. It is humbling to say the least.

Avoiding the parties is a personal choice. Parties can be loud which isn’t good if you want to keep your voice. For an old guy, ah, an accountant, an earlier bedtime worked wonders. You might be different. I recommend listening to your body. Don’t push to the point where it hurts the next day’s performance. You never know when you’ll need to make a solid first impression.

Without attending parties you would think I interacted with fewer people. Au contraire! Parties are great to let off steam and mingle with friends new and old. But parties are a poor way to gather necessary information (unless you’re waiting for people to get drunk and spill the beans). I’m not telling you to avoid parties. I’m saying my focus on learning allowed for ample interpersonal interactions with people I needed to communicate with.

All I’m saying is balance is the best way to get the most value from a conference. Experience told me I should focus on learning and mingle with attendees as opportunity presented itself. Every tax seminar/conference I ever attended was about learning, but plenty of valuable interaction and communication also happened.

Now we turn to the most important part of this lesson and how it will affect you and this blog.




How to Build a Million+ Page View a Month Blog

 

Many lessons learned at FinCon were things I already knew but hadn’t yet reached the deepest part of my gray matter. A good many things were also new to me.

From inception I shot myself in the foot with this blog. All I wanted to do was write, to tell my story. I missed all the reasons, you, kind reader, bother to show up around here and spend your precious time reading my work.

First, it’s all about user experience. All too often I did things I thought would generate traffic and then throw an attitude when it didn’t work. After all these years it finally sunk in. If I focus on improving the user experience they will come. Thankfully I avoided the dreaded pop-ups and similar annoying devices. Still, I modified the blog with the intention of increasing traffic. This was my first and greatest mistake.

A close cousin to the above error in my thinking is I put too much emphasis on “me” instead of the reason people show up around here: “you.”

Create massive traffic for your blog with these 5 steps. A simple to follow program that will super-charge your traffic. How to increase blog traffic. Awesome traffic tips. #wealthyaccountant #blogtraffic #traffic #tips # pageviews #awesometips

Build a million page view per month blog with these 5 ways.

The best writing in this field focuses on actionable material “you” can use in your life to solve problems. Yes, my stories are illustrative and add to the content and its value. However, I frequently never traveled beyond the confines of the personal story. I forgot real people are actually reading this!!! Typing in the solitude of deep evening it is easy to forget I’m not writing a journal to myself, but actually providing material people are seeking to improve their lives and solve problems.

I guess I could add a “Duh!” here, but that would be counter-productive.

The third lesson I was already aware of. Shortly after this blog took its first breath I showed my true prolific colors. The third lesson finally sunk in: Stop publishing so much!

Not only is a rapid publishing schedule grueling on the writer; it’s murder on the reader! Too much material too fast wears readers out.

Publishing too often also reduces the quality of my work. If this is all about the user experience and “you” then publishing just to say I can bang out a certain number of posts a week is, to be blunt, stupid.

Publishing when I have something important to say is a smarter move that keeps you, kind readers, in mind. The extra time allows for more and deeper research.

I was also reminded longer posts are important because it allows for inclusion of actionable material readers can apply immediately, lessons four and five on our list.

Not every post needs to be 5,000 or more words. But some issues demand it! Posts here have always tended to the long side. But many times I intentionally left off actionable material because I felt the post was getting long. This is a tactical error if my goal is to improve the user experience, make you the centerpiece of the post and increase traffic (a little something for your favorite accountant after serving your needs).




The New Wealthy Accountant Blog

 

With the above information in hand, here are some of the changes you can expect to see around here starting now or in the near future.

  1.  The publishing schedule will decline and will not be on a set schedule. I estimate 2-4 posts per month for this to be done right. This is a major reduction! Jim Collins warned me two years ago my traffic would be fine if I reduced my publication schedule. I was too stubborn to accept good advice. One good post per week with actionable material is miles ahead of publishing like crazy just to say I published. Some weeks will have two posts; some weeks none. But my promise to you is better material. (I took off publishing last week for the first time ever and traffic was fine.)
  2. Posts will get longer when it adds valuable information. By spending more time thinking about the topic at hand I’ll be able to include more usable information. Deeper research will make for a better user experience. Material will contain actionable elements. Previous posts centered around 1,500 words. There will be times I work well past 5,000 words to get all the information out. You can pick and choose what you need.
  3. Experimenting is still in. The internet is constantly evolving. Experimenting is vital to the health of a blog. Experimenting gives me the opportunity to help you better.
  4. Some old posts will be deleted. Looking over old posts there are a few that need to go. The Stalking the Accountant series was a thinly veiled attempt to sell books. They were good books, don’t get me wrong. But my intentions were not honorable. In the near future those posts will disappear forever.
  5. Some old posts will be re-purposed. Certain posts were fun to write, but didn’t add much value and get virtually no traffic. An example of a really old post that doesn’t resonate is Caveman TV. It was a fun story on how I raised my kids in the backwoods of Nowhere, Wisconsin with limited doses of commercial media. However, if I edited the post with actionable material and with a new title it would be a far better piece. I could re-title the post: Free Alternatives to Commercial Television. If the changes are minor the post will stay where it is in the Binge list. If a major re-write happens I will bump the post to the front of the list as a new post. (Note: Bumped posts generally are not reported to subscribers with an email. A periodic check of the Binge list is a good consideration.)

I know many readers enjoy hearing my stories of life in the backwoods and in the accounting office. All those things will still be here. A healthy dose of “me” is still part of this blog. The improvement I demand of my work is something more than entertainment value for “you”.

Here are a few examples of what is in store:

  1. Filled-in Form 3115 for cost segregation studies along with verbiage for a grouping election. It sounds like a mouthful. but a lot of tax professionals have been begging me to provide material on handling a cost segregation study on a tax return. Since I recommend cost segregation studies and there is no current filled-in Form 3115 online covering these issues, I plan a step-by-step guide I periodically update with filed-in tax forms as examples. Tax professionals and DIYers will have a tool to prepare an accurate return when a powerful cost segregation tax reducer is involved.
  2. A tradelines series. I can’t tell you the number of people who came up to me at FinCon to thank me for introducing them to selling tradelines. People are paying their entire mortgage selling tradelines and spending less than an hour a month in the process. There are so many more powerful ways you can use tradelines to your advantage. I will not neglect my duty any longer. I will take a good idea and turbo charge it just for you.
  3. Goodies in the queue. Here are a few goodies I have planned as soon as I adequately fleshed out the material: Cheap Auto Repair; The History of Money; The History of Retirement; The History of Polarized Politics in the U.S. I might even touch on the Suze Orman Afford Anything podcast controversy.
  4. Videos. Embedded YouTube videos are coming! The Suze Orman thing might be a video only since it is more an opinion piece than anything. Slowly I will start building a video library made available on YouTube and inserted in posts where appropriate.

Now that I’m not chained to a brutal publishing schedule I can focus on adding more value. Videos that compliment the text take time I will now have. Longer, better and actionable posts are the new norm.

And if I have one of those fainting spells I’ll bring back one of those fun posts where we just let it all hang out on the farm.

I look forward to our adventures together.

 

 

 

More Wealth Building Resources

Credit Cards can be a powerful money management tool when used correctly. Use this link to find a listing of the best credit card offers. You can expand your search to maximize cash and travel rewards.

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!



The One Place World Travelers Forget to Visit

Travel to exotic destinations. Even seasoned travelers miss some of the best places to visit. Here is a travel tip to a destination that will change your life forever. #wealthyaccountant #travel #traveltips #destination #exoticI have a confession; I’m a hypocrite. My greatest platform has been a complete lie. Please don’t blame me. It got out of control and before I knew it the lie was so big I had no way out with the exception of telling the truth.

From the beginning I railed against traveling while I’ve visited most of the U.S. states, Canada several times, Jamaica and Costa Rica. And here I am pounding out a post while traveling and sitting at the kitchen table of my first Airbnb stay. For a guy who whines so much about traveling I certainly do a lot of it.

Traveling has certainly been a love/hate relationship for me. The anxiety is almost overwhelming (sometimes it is and I collapse). This post will publish Thursday and I’m writing Tuesday night and the clock claims the night is closing in on 10:30. For several weeks leading up to FinCon the anxiety increased. Sleep turned fitful, my thought disorganized. I dreaded the flight. Most of all I dreaded all the people. Farm boys from the backwoods of Nowhere, Wisconsin never truly adjust when pushed into civilization. The savage is always there.

It is in this fog of insanity I realized I travel too damn much, but also realized I travel to places even the most seasoned travelers rarely go.




Give Me Space

Wanderlust is something I understand. I fear the crowds, the bright lights. The newness will heighten my senses activating the fight or flight reflex. Yet this is still a lie!

There is a form of traveling I lust for ceaselessly. When I see people driving toward early retirement so they can travel the world I roll my eyes. Who in their right mind would want to do that? There is nothing more painful I can think of. And still, I can’t stop the deceit.

See places few visit. Your travels are incomplete until you travel through time to this exotic and wondrous destination. #wealthyaccountant #travel #ventures #travelplanning #travelideas I better clarify. Many Most people have a strong desire to travel, to see new places, meet new people, enjoy new experiences. There is something in the DNA of humans to want to crawl to the horizon and beyond. From the very beginning when our ancestors wandered out of Africa to our post-modern times where eyes are turned glistening to the moon, Mars and the stars beyond, there has been a powerful urge in humans to explore. The chance to grow and learn is an irresistible pull.

But people have traveling all wrong so they miss the one place more important to visit than any other.

The mistake is all about space. The desire to travel is never satiated because you travel spatially. The mode of transportation is plane, train, boat, car and even bike and hoof. Whatever it takes to get from here to the other side of the hill.

I bet you make the same mistake. You travel from here to there and no more. A trip to Europe or some other continent holds the promise of exciting new cultures to sip from. And it works. Most people are awesome and love communicating with people from far away. They share as you share; learn as you learn.

There are serious limits to spatial travel. You can only see places where the transportation can take you. Mars is off the docket. . . for now. Anther serious limit to spatial travel is time. You need more than an afternoon to tour Africa. We can discuss cost, but you already understand that part.

New Dimensions

This is where we entered our story. My lie isn’t exactly about spatial travel. While I’ve imbibed often enough, I believe my personal constitution absolves me from serious travel crime. Yes, I have gallivanted around a section of the globe relatively close to the home farm, but gallivant I have.

I still abhor travel in the traditional sense. The anxiety is so powerful and overwhelming I’m surprised I can function at all in those situations. You can’t imagine what I see in my mind as I struggle through yet another bout of time away from familiar surroundings. (The lights are not as pretty as I pretend.)

But this is where truth ends. In a bad year I leave the yard three times. In a good year I cross the road a mere once. And then there are the times where I’m in heaven as Pinky (my cat) notices I stay snuggled close for over a year uninterrupted. But just because my tail is planted firmly in the couch doesn’t mean I’m not traveling. In fact, it’s a journey too few ever take. Seasoned world travelers wander the planet for decades and never see the places or people I’ve seen.

You see, I travel in time.

I know, I know. Your favorite accountant has gone and flipped his lid. (I am writing this while traveling. Remember the Airbnb kitchen table.)

Extraordinary claims require extraordinary proof and I’m prepared to provide it. (If I didn’t it would be a really stupid post. (You in the back: sit down. If I wanted your opinion I would have asked.))

The best way for me to prove I time travel is to explain the people and places I visit.

There are so many stories; where to begin. I time travel so much, see so many wondrous place, enjoy intelligent conversation with so many great minds I sometimes forget how incredibly lucky I am to experience such travel.  I may as well spill it all.




Time Travels

It may be hard to believe, but I was there when they spiked Christ to the cross. I knelt with His mother before the cross and comforted her. I was there when Socrates drank the hemlock and when Plato left the city and the school he founded “lest Athens sin against philosophy twice.”

When Voltaire exposed the government, religion, science and philosophy with the biting satire of Candide and when Rousseau fomented revolution I was there. Just another trip down Memory Lane. I warned Voltaire his humor would not be appreciated for centuries when comedians were allowed to live (usually) after exposing the  hypocrisy of said institutions.

When the Dark Ages descended over Europe and the Black Death spread fear I was there. I felt their pain, felt their fear. When the light of Renaissance flickered after the long night I experienced the enlightenment first hand. I was there when the Renaissance flourished into an Age of Reason and a Reformation in Christianity.

I saw all these things and more. And you can travel to these places, too! All you need is a book.

Space and Time

Plenty can be said for spatial travel. There is a thrill of newness in the act even if a crazy accountant in the room suffers emotional distress while engaged in the process. There are serious and great benefits from travel. Spatial travel brings people together as the world shrinks into a single community.

Need travel ideas? How about a low-cost vacation to an exotic location few know how to book. Be different! Travel further than anyone else. #wealthyaccountant #travel #vacation #travelideas #vacationideas #destinations #cheaptravel #lowcosttravelBooks are awesome, of course. Some of the flavor is lost in the mists of time unfortunately. Plato and I had plenty to talk about, but the people around him are relatively unknown or completely forgotten. It was also a one-sided conversation. How I would love to have asked questions. All but the major players are relegated into oblivion. There story is untold, lost in the sands of history.

The filter of time determines which stories we are exposed to. Aristotle was almost lost to us in the Dark Ages. When the Library of Alexandria burned much knowledge and understanding was irrevocably destroyed. Many stories died that day forever. If ever there was a genocide, it was that day. Many great minds gasped their last breath that day. If I could have been there. But, alas, time travel doesn’t allow changes to the time stream.

Time travel is important! It is the great men and women of the past who gave us our chance at greatness today. We build on the shoulders of giants.

To truly experience a culture and place while spatially traveling you need to understand the foundation that brought that place and culture to the current condition. The only way to do that is with time travel, with a book.




Coda

When I express my issues with travel I’m asked if I hate the travel (airport, car, et cetera) or actually being there. Yes.

Not funny, I know. The traveling part of travel is the worst, of course. The exhausting nature of travel is also a part and so is being away from home.

The people are always incredible. I still prefer a book because I can absorb at my pace and see so much more of the world faster when I can avoid the wasted time of airports. I was born out of my time in some ways. Regardless, I still feel the pull of the horizon. I’m human! What did you expect?

It is getting late as I finish this post. The Airbnb hosts were traveling (surprise!) so they had Rand and Joy step in to run control on the accountant clan visiting. We had some deep and interesting conversations. (Airbnb beats a hotel by a gazzillion miles. I’m sold. Future travel will be Airbnb whenever possible.)

Some travel destinations are like traveling through time. The less beaten path is one with more wonders and awe. No crowds. Plenty of fun and adventure. All low-cost. Plan today before everyone else discovers these gems. #wealthyaccountant #travelplans #travel #exotic #vacation #cheap #rare #undiscoveredI was interrupted as I completed the first paragraph of this post by Rand and Joy. I explained what I planned to write (it turned out slightly different than I expected; a common occurrence in writing)  when Joy lit up. Her eyes flashed wide as she realized why all the stuff I said sounded so familiar. A friend of hers has been sending her links to this blog when she found good stuff. (My guess is she didn’t need a lot of time with that kind of filter.)

Joy has been reading this blog for about two years. Rand checked it out earlier today. (Stalker!) He only mentioned one post: my obituary. I understand. No, really!

What I find amazing is that the population in the U.S. tips north of 300 million and a couple hundred thousand people visit this blog every year at least once and somehow I ended up in an Airbnb with a reader. How cool is that?

I am amazed and also humbled. You, kind readers, are lost in the glare when I write. I know you’re there, but I can’t see you or feed off your reactions as a stage actor would.

Then it all turns real when a reader appears in an unexpected place. I expect a few people to know of my work at FinCon. But out on the street I have no illusions of my celebrity. I’m a bit player on a historical stage. In short, I was Plato’s water boy, forgotten in time.

After 1,500 words I’ve realized how wrong my original supposition has been. As much as I enjoy traveling in time with armloads of books, it is meaningless unless I also travel spatially. Both are intricately connected. One does not exist without the other.

A mere 1,500 words and I discovered I MUST travel in time AND space.

Anxiety will always be a problem. Damn anxiety. They have pills for that now.

 

More Wealth Building Resources

Credit Cards can be a powerful money management tool when used correctly. Use this link to find a listing of the best credit card offers. You can expand your search to maximize cash and travel rewards.

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!



Paying Off the Mortgage vs Investing the Difference

You don't own your home until the mortgage is paid off; the bank does. Mortgage payoff tips you can use to become debt-free. Dave Ramsey #wealthyaccountant #daveramsey #mortgagetips #debtfree #mortgagefree #mortgagepayofftipsOne of the most difficult decisions you can make as you struggle toward financial independence is deciding between paying off the mortgage quickly or investing the excess funds instead. The water is more muddy when we see a roaring stock market for as far back as the eye can see coupled with low interest rates. The answer seems simple and obvious: pay off the mortgage as slowly as possible and invest the difference in broad market-based index funds.

You might also think people well past the mile-marker of financial independence would have an even easier choice. Once the risk of a market decline passes due to your excessive net worth, it is tempting to automatically choose the course with the greatest opportunity for maximum gain.

Your favorite accountant has struggles with the same decision: pay it off  or invest. It all came to a head recently when the topic came up on Facebook. I gave my opinion and the fur flew. Before long my inbox was stuffed with requests for a fully fleshed out explanation of my position.




My Struggle

For someone working his entire life in finance this shouldn’t be a problem, you’d think. But it isn’t that simple.

Any first year accounting student knows leverage (debt) can spike returns. Less understood—for reasons I can’t understand—is the effect leverage has when the investment goes down or even treads water. Leverage does enhance profits nicely in a climbing market. When the market goes sideways the interest expense of leverage starts to hurt. In a down market is turns brutal with losses magnified and interest accruing to rub salt in the wound.

When it come to real estate a false sense of security sets in. Unlike securities, real estate doesn’t face a margin call if prices decline. The bank will not borrow you more in such cases, but you don’t have to come up with more money over the regular payment. As long as things eventually turn around you are fine. At least that is the theory.

Should you pay off your mortgage early or invest the difference? Here are mortgage payoff tips to help you decide between investing and paying the mortgage off faster. #wealthyaccountant #mortgage #mortgagetips #mortgagepayofftips #creditscore #DaveRamseyArmed with this information I begin my journey. I bought the farm (No, really! A beautiful 10 acre farm with hiking trails and a pond. What did you think? I died?) in the mid 1990s for $120,000. Five or so years later the mortgage was down to ~$40,000.

My old farmhouse needed serious work. We jacked up the house to secure the foundation, remodeled the original home and made serious additions. The Accountant household went from 950 square feet of living space to over 3,000. (No, I’m not proud of my extravagance.)

The remodeling and additions cost more than $200,000, all put on the credit card, aka, the new mortgage. The Accountant household had a serious debt now.

The good news is that I had no other debt and a net worth approaching eight figures. Our home appraised at $400,000 and change. Borrowing was relatively cheap and there was no real risk to such indebtedness in my situation. I did make payments well beyond the minimum to pay the house off sooner. (Some habits are hard to kill.)

By the time the world ended in 2008 – 09 I had the mortgage down to ~ $100,000, maybe a bit lower. The stock market tanked and I had plenty of room to borrow more against my home.

With my credit the bank was willing to give me pretty much anything I wanted. They needed to lend to low risk people and businesses and I was the lowest of risks. Since I have a farm I qualify for special loans only available to farmers. As luck would have it, I snagged a 2.125% loan fixed for 30 years!

Not being one for half measures I borrowed nearly $300,000, reducing my home equity to the lowest level in my life. I dropped the cash in the market.

It wasn’t a long wait. The market stopped declining and then started rising in fits and starts. For almost 10 years now my gambit has worked well. I made extra payments once again, but not as much as in past times.

Five years ago the mortgage was ~ $300,000. The market turned the borrowed funds into a bigger number. I refused selling the investments. But I increased my payments to reduce the large number on my loan statement. (It bothered me!)

Income from my practice now started going into loan reduction over more market investments. Yes, the market kept climbing, but I wanted that mortgage much lower. I found it disturbing to have the highest debt level in my life when I enjoyed the highest net worth of the same life. Even my business lived debt-free. This house thing, while a good move according to first-year accounting students, occupied my thoughts better used on other projects.

I also turned up the frugal. I learned to cut costs like a crazy man! Coupled with a nice business income I was able to shave $50,000 or more from the mortgage each year. My goal was to reduce the interest expense. Yes, the rate was low, but $300,000 at 2% is still $6,000!

Last year the mortgage collapsed to under $200,000. The race was on. Without resorting to asset sales I refocused my efforts to reduce the mortgage. By the end of last year the mortgage stood a hair into the six figures.




The Final Assault

There are several dry-erase boards around my office. Many are filled with cryptic messages on my personal and business finances. I use a type of shorthand known only to me. Sometimes employees ask what all the gibberish means. I tell them if it’s pertinent to their job.

Here is why you must start paying extra on your mortgage today. Investing the extra mortgage payments instead does not work. Pay off your mortgage in 5 years or less. #wealthyaccountant #savingmoney #personalfinance #moneyA dry-erase board outside my office door has a series of numbers. The cryptic numbers were my madness to retire the farm mortgage. The original goal was to pay $56,800 on the mortgage this year, including interest. (Don’t ask why $56,800; it’s along story.)

As I entered summer it looked as if I could meet my goal. By late summer I met the goal for the entire year. Something snapped in my head when the mortgage hit $58,000 and change. I wanted it gone and now!

In the last two months I drove the mortgage from $58,000 to under $16,000. After I return home from FinCon in Orlando I will move money from a side business to retire the mortgage.

For the first time in my adult life I will be debt free before Halloween. That sounds so insane to me. I can scream “I’m debt-free!” to Dave Ramsey for the first time since the early 1980s while my net worth is well into the eight figures. I kept the mortgage to pad my net worth when the advantages would do absolutely nothing for my lifestyle.

And once again I was forced to reconsider my choice as the course of financially savvy individuals raked me over the coals on Facebook.




Why I Took the Course I Did

When I gave my opinion in a finance group on why I felt paying off the mortgage was better than investing the difference I was mobbed. In a matter of moments there was nothing left but a grease spot  on the pavement.

My argument was simple. Paying off all debt not only reduces risk of default, but frees all the time spent thinking about managing the debt. That was my come to Jesus moment. I discovered I was spending more time thinking about my $300,000 mortgage than the millions I had in investments!

The mortgage was always planned. Payments were on automatic, but extra payments had to be considered. I also kept thinking about how long I wanted to keep this darn thing. Am I willing to keep a mortgage until I’m 70 just to kite the difference I could make in the market? The answer, once I seriously thought about it, was NO!!! And the more I thought about it the more I realized I was wasting quality time on a debt I don’t even need.

The only argument against my solution was that the market does a heck of a lot better than the 2 1/8% I pay on the mortgage. Once I thought about that I realized it was a stupid argument. Yes, it worked well for me since the market has been climbing with barely a hiccup for a decade. What they were really saying is that the ends justify the means. I disagree.

Investing versus extra mortgage payments? It isn't an easy choice. Learn the best choice for you. #wealthyaccountant #mortgage #money #mortgagetips #payments #investments #invest #timeI won because the market was up a lot. How would I look if the market pulled a 1968 to 1982 when the market went nowhere for 14 years? Not nearly as smart, I would gather.

After careful consideration I came to the conclusion (took me long enough considering my age) that paying off the mortgage as fast as possible, regardless of tax deductions or the interest rate, is the only correct course. Here is why: The mortgage is guaranteed while the market is not. The market may climb or it could sink or stagnate. It’s happened for long periods of time. We sometimes forget our history. The mortgage is always there until paid, plus all the interest. No reprieve.

The other expense a mortgage has is time. Even with payments on automatic you still need to manage funds to make the payment. You either earn money or transfer from an investment into the account funds will be drawn from. Don’t forget or there will be penalties!

Time, more than interest or money, were the deciding factor. You might think debt doesn’t take time and allows you to spike your investment returns. Well, it does take time and thought and planning. That time comes from personal time. And debt is a harsh mistress when investments turn south.

I was a Dave Ramsey Endorsed Local Provider (ELP) for years. I have no problem putting every expense I can on the credit card. I pay it in full each month with auto-pay. I also make room for modest mortgage debt. I’ve changed my tune.

I think debt-free is the only way to go. Even if you have massive wealth outside the debt with zero risk to your FI (financial independence) status, it is still better to retire the mortgage on the primary residence, second home and rental properties. (Income properties do very well without mortgages, even in terrible economic times. Hard to lose when there are no monthly payments.)

There is one last thing I noticed as I approach the final payment on my home. Mrs. Accountant and I are giddy as school girls. (I don’t look good in a dress so no ugly comments.) Breaking the million dollar net worth marker didn’t get so much as a “Yippie!” out of Mrs. A. Every time I go to Farm Credit and drop another 10 grand or so she walks on air.

So do I. I must confess I feel a heavy weight lifted off my shoulders. I can’t believe paying off a debt that didn’t even register in the household budget affected my subconscious so much. But it did! It is impossible to understand how much debt affects you until you remove it. How much weight bares down on you until it is removed.

I always thought it was about how much I was worth. No more. I think you are a helluva lot richer without debt than with a massive net worth. I feel better about myself financially now than ever before. I always knew I owed somebody. Now that is gone and I can yell:

“I’M DEBT FREE!!!”

I hope you will join me. You can’t believe the colors on this side of the fence.

 

 

More Wealth Building Resources

Credit Cards can be a powerful money management tool when used correctly. Use this link to find a listing of the best credit card offers. You can expand your search to maximize cash and travel rewards.

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!



Where to Invest Your Money When the Stock Market is Overpriced

How do you tell if the stock market is too high? When do you sell? Or buy for that matter? Read this article to learn the right time to sell a stock. #wealthyaccountant #stocks #stockmarket #investing #investingtips #bonds #moneymarket Investing for beginners. Investing for wealth in your 20s or 30s. In or near retirement.The stock market is in nose bleed territory and doesn’t seem to want to stop climbing. Economic risks are everywhere. Debt levels are high, interest rates are climbing, a trade war is breaking out and the market valuations are at near record high levels.  In times like these investors get scared. The bull market is long in the tooth and “due” for a serious correction. But then again, using a gambling term might not be the best choice when investing your money.

It is rare when a client doesn’t ask me where to invest their excess funds. Virtually every client wants to pull money from the market but doesn’t know where to put the proceeds. Lump-sum payments and accumulated cash in money market accounts cause concern when the stock market would have been a much better choice.

At these level we might ask, How much higher can this go? How much longer before disaster strikes? And then the market indexes keep marching higher.

Retirement makes it even worse. If your nest egg is enough for a comfortable retirement, but lacks excess, the market climb causes concerns. Nobody ever lost money taking a profit, goes the old Wall Street adage. But is it a smart idea to sell when the market is high considering it is almost always considered high? And if selling is the right choice, where do you put the money? We will explore those important questions today, before catastrophe strikes.




Are You High

There is an advantage to age. Once you’ve lived through a few market cycles you begin to realize the best choice is to stay calm. Newscasts will tell you the sky is falling. It isn’t.

In the 1970s and 80s Joseph E. Granville was the guy to listen to on stock investing. When Granville spoke the market moved. He had a system for timing the stock market and a knack for promotion. (He had books to sell.) The Pinterest placard in this post of his 1976 book is from my personal library. (I’ve been reading investing books for a very long time.)

Robert R. Prechter Jr. is another guru from a past age (my age). Prechter published The Elliott Wave Theorist in the 1980s.

When is the best time to sell the stock market? Selling an investment is just as important as how you buy the investment. And where do you put the money once you sell? #wealthyaccountant #investing #indexfunds #retirement #selling #money #cash

The only way to time the stock market. Don’t.

Both Granville and Prechter were market timers; something we know is a bad idea when it comes to investing in the market. Warren Buffett doesn’t write books; he writes annual reports for his company. People write books about Warren Buffett. This opposed to market timers who write books on their system and sell it to the masses. See the difference. One makes money and people write about them. The others make their money selling you books on how they think you should invest. Think about that for a moment.

I bring up Granville and Prechter for a reason. These and others called for a serious market declines in the 80s. I remember watching the Nightly Business Report where a guest expressed with great confidence the Dow Jones Industrial Average would soon test the 1932 lows from the Great Depression because the Elliot Wave theory predicted it. People actually paid for that kind of advice!

When the Dow was under 1,000 it was overpriced. It was overpriced in 1932 then is bounced off the low 40s. (The DJIA closed at 41.22 on July 8, 1932; its all-time low.) You see, when the Dow was that low people had real reasons to believe the world was ending, at least economically. Even with the Industrials at 40 and change the market was high because these companies were losing money. Things were bad, really bad. And getting worse.

Then the Dow reached 10,000 and it was really high, overpriced and ready for a decline. Well, before the world actually ended the Dow notched 20,000. Of course it was painfully obvious the market had to decline. Just look at the political climate. How can it possible go higher?

Unfortunately we will have to wait for the permanent decline in the market. Yesterday (September 19, 2018) the Dow closed at 26,405.76. And you guessed it. Clients still want to know if they should sell their index funds and move to cash.

I provided plenty of links above to helpful sites on the issues I discussed. I didn’t link to Amazon for any of Granville’s or Prechter’s work. Granville actually published another book in 2010. I didn’t know that until I researched this article. It sounds like more market timing advice to me. And that is why I didn’t link to their work. I think it is terrible advice.




Perspective

Let’s bring the current stock market into perspective. At the last cycle market high the DJIA was around 13,930 at the end of October, 2007. If you had the worst of all luck and invested a massive windfall (the lottery sent you a gazillion dollar check) at the exact peak you would be up just shy of 90%! (89.55% for home-gamers.) Index funds make it easy to match the market. An all-market or S&P 500 index fund would have yielded slightly different results, but still good gains all the same.

When is the best time to buy a stock or index fund? Should you buy or sell at these levels? Inside are clear answers to investing your money in your 20s, 30s or any age. Beginners and experienced investors face the same question on when to sell and what to do with the proceeds. #wealthyaccountant #beginners #investing #tips #ideas #help #money #cash

Should you buy the stock market at these levels?

The lesson is learned. Even if today is the absolute worst day to invest, a decade down the road you still have pretty good odds it will still be a good call.

I’m not calling for the market to climb high, by the way. I might be crazy, but I ain’t dumb. I have no clue where the market is headed. Looks high to me and always does. So I bite my lip and keep invested, laughing all the way to the, ah, index fund.

The long game is always higher. Jim Collins has written extensively on the stock market and why it always goes up. Notice I didn’t say the market never goes down! The market does decline from time to time, but always climbs higher after the temporary pullbacks. The only time this will not happen is if civilization fails. If that is the case you have bigger problems than a stock market decline.

Liquid Funds

The information above doesn’t mean everyone should be fully invested! Those in or near retirement may need a few years of liquid cash in money market or bank accounts regardless the level of the stock market. Businesses also need working capital that is liquid. Money that has a five-year or longer horizon probably deserves to be in equities.

I intentionally left bonds off the list. Bond yields are low. Serious losses occur with long-dated bonds as interest rates climb. If rates stay low you still only get a meager return. I see no reason to consider bonds, except for pension funds, banks and insurance companies.




Alternatives to Index Funds

The S&P 500 and DJIA are up over 300% from the lows a decade ago. It is understandable some people have the jitters. Panic selling is the worst of all choices. If a market decline causes you to lose sleep it might be time to take a few chips off the table.

If you receive a bonus or other windfall it still makes sense to drop the lump-sum into a broad-based index fund and live with the results. The evidence is clear this is the correct choice. You might be unlucky and pick the worst day of the decade. Odds are you will not. But if you do you still have an excellent chance to enjoy nice returns in a relatively short period of time.

If your temperament doesn’t handle the market well at these levels there are options. First, pay off debt. You can’t lose retiring liabilities. The car and credit cards must be paid in full. The mortgage is always a tough call. (Stay tuned for an upcoming post on paying off a low interest rate mortgage versus keeping the mortgage and investing the funds for a higher return.) I feel paying off the mortgage makes sense for most people. “Safe” investments don’t pay as much which makes them less safe than perceived.

Once all debt is eliminated you still need to invest liquid funds. There are few good choices at this time. Capital One 360 and Discover Savings offer competitive interest rates, but they are still low comparatively. Vanguard’s money market fund is another alternative worth considering.

The Best Investment

I know how hard it is, kind readers, but a broad-based index fund is the best choice for money with an investment horizon of 5 years or longer. The market is high. It’s always high. The best time to invest has always been now.

Granville and Prechter convinced a generation they could time the market. Nobody does it consistently. The surest path to financial success is to tie yourself to the economic engine of virtually the entire economy. As the economy grows, so do you.

The best and only advice is to stay fully invested all the time without leverage (using borrowed money to buy the investment). The exception is working capital for businesses and liquid funds for household expenses of a few years, a bit more if retired or nearing retirement.

Close your eyes if it helps. Bear markets tend to end quickly.

 

 

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!

 



My Tax Plan If I Were President

Taxes laws are a mess. I have solutions to simplify taxes and lower rates. Using humor, I share tax tips for deductions for individuals and small businesses. I also address the politics behind such required changes. #wealthyaccountant #taxhumor #taxdeductions #taxtips #smallbusiness #funny #politics #presidentIf you’re reading this the day it’s published it means this is the due date for extensions for partnerships and corporations. If you work in a tax office and things are quiet you might want to consider another job. (This is an inside joke directed at a former employee who struck out on her own. If you need bookkeeping in Vegas I know a qualified person to handle that. Seriously.)

I thought today would be the perfect day for me to announce my candidacy for president with a few tax policies I’ll sign into law via executive order if elected. Some of you might be darn excited about this unwelcome event as you think I’m a Democrat. Other might be excited because they think I’m a Republican. The truth is I’m neither. I prefer to waffle between both side of the aisle or as the police call it: walking in a drunken stupor.

As much fun as I’m going to have writing this, I am also dead serious. What follows are tax policies I would like to see instituted. Some things will sound very liberal and some things will sound downright conservative. Basically, I should tick off just about everyone in the room with something.

Welcome to politics.




Ground Rules

Before we start I want to point out some things I plan as president are not completely tax related. For example, I will deal with the minimum wage, but connect it to tax policy. The same with welfare of every kind. Along the way I’ll fix the health care issues of the United States by default and solve trade issues and immigration policy in a way everyone will love until I’m elected. Then a third will love me and two-thirds will hate me until we approach the next election. Then the population polarizes and it ends up a dead heat until I’m assassinated re-elected.

Tax policy controls everything. Al Capone gets away with murder until they called in the Treasury Department. (It worked!) Welfare once required a trip to Social Services. Now it’s handled at the tax preparer’s office. Corporate welfare is even worse.

Trade disputes sometimes result in tariffs, an excellent way to tax your own people while convincing them it punishes the other country. (Don’t underestimate the ignorance of voters.) Once again important issues of national importance end up in a tax bill.

So, let’s get down to business. I’m confident I’ll win your vote.

Simple and Basic

With the exception of my own profession, everyone should love the basic framework of my tax plan. Republicans lowered tax rates to the lowest level since taxes were collected in this country. And I think they’re still too high!

For individuals and families: I propose to raise the standard deduction to $100,000 for joint returns; $75,000 for head of household returns; and $50,000 for single taxpayers. That means a married couple filing jointly can enjoy their first $100,000 of income tax free! (I know! It makes me giddy too.) Exemptions were eliminated with H.R. 1 and I don’t want to rock the boat so all you guys get is a huge standard deduction. In fact, itemizing is gone! If a hundred grand tax-free isn’t enough to stay solvent there isn’t a thing any politician can do to help you.

7 ways your taxes should be lowered. Tax humor might be funny, but also illustrates how taxes must be lowered. Find tax tips and deduction for individuals, the self-employed and small businesses. #wealthyaccountant #politics #president #taxplan #taxhumor #deductions #smallbusinessAs for tax brackets, people like the idea of a flat tax. I propose two brackets so my peers at least have an outside chance of staying in business: 20% and 50%. After the standard deduction, the next $400,000 is taxed at a flat 20%. All income above this level is nailed at a 50% rate with nary a deduction available to reduce the tax.

I hear the howls of protest, my tax obsessed readers. You think President Accountant will bankrupt the nation with such a plan. Au contraire. To pay for this simple tax plan all the welfare tax credits are nixed. The Earned Income Credit: gone. The Child Tax Credit: gone. Savers Credit: nope. Education credits: huh? No, no, and no. No more handouts on the tax return. Let’s turn the tax office back into a tax office and not an unpaid extension of the welfare department of the government.

Also, all income is taxed at the same rate. No more special rate for qualified dividends or long-term capital gains.

Poor people need not complain. The Earned Income Credit was designed to compensate low income workers with a kickback of their FICA taxes. In my tax plan every worker gets the first $20,000 FICA tax free. If you work you get an instant EIC on your paycheck.

HOWEVER. . .

Social Security taxes now are like the Medicare portion of FICA: paid all the way to the sky. And FICA applies to ALL income: dividends, interest, capital gains (long- and short-term) and more. A sports star gets a $20 million bonus. Good for everybody! A CEO of a public company enjoys a windfall of stock options? Good for everybody. The Social Security and Medicare financial problems are solved.

If you think about it (I have) the reduction in tax credits more than offsets the massive standard deduction increase. We may have to institute another round of tax cuts or risk paying off the national debt.

I see fear in the eyes of business owners. Don’t worry. I thought about you guys, too.




Business Taxes

This crazy new tax deduction for qualified business income is insane. All it does is increase complexity in the tax code, lining the pockets of tax professionals and attorneys practicing in tax law. In my plan the QBI is gone.

WAIT!

Don’t shoot! I propose a better solution. Businesses will enjoy their own standard deduction of $1 million. That’s right, my Republican friends, every small business owners will enjoy their first million tax-free on top of their generous standard deduction.

Big business is sweating right now, worried I’ll fill the Treasury at their expense. No way! As a gift for funding my political campaign you get the same $1 million standard deduction, plus a flat tax rate of 15%. You heard that right. The Republican plan of 21% is still waaaaay too high to compete internationally. We will start at 15% and reduce the rate 1% per year until it hits 12%.

Oh, don’t be sad, my liberal friends. To pay for this tax cut we will cut corporate welfare the way we did for individuals. If you think welfare to people is costing taxpayers, you haven’t added up how many handouts are lining the pockets of super-rich corporate executives. Those handouts will be eliminated completely.

To prevent small businesses and the big guys from gaming the system, all businesses controlled by a group only get one $1 million dollar business standard deduction only. In other words, you only get one million dollar deduction per investor. (And you guys thought I didn’t give this adequate thought.)

Tax System

The U.S. is one of only a few remaining nations taxing on a worldwide system. My plan brings us in line with the world by switching to a territorial tax system, where only profits from inside the U.S. are taxed. The tax rate for profits outside the U.S. is 0%, giving a major competitive advantage to American companies operating abroad, something they have to dance around now to compete with other nations. That alone could resolve half the trade deficit.

Americans working abroad would not be taxed unless they earned the money in the U.S. The Foreign Income Exclusion would be obsolete with President Accountant.

To prevent games, corporations could not shift profits outside the country. Strong measures will be in place to avoid such a practice with a 10,000% penalty for offenders. (You’re getting an awesome deal. Don’t get greedy!)

Foreign companies that want to sell in the U.S. would also pay U.S. taxes for their profits earned in the U.S. (Where ya gonna get a fairer deal than that?)




Trade Wars

This is just plain stupid. Tariffs are a tax on your own people! I would open the door to trade with all tariffs eliminated. If other countries don’t follow suit, fine. They can tax their own people more. All the better for our economy.

Looking for a fair tax plan? Then I know the perfect guy to vote for! Taxes are a mess is desperate need of organization. #wealthyaccountant #taxplan #tax #taxes #taxhumor #funny #deductions #creditsThe U.S. and its businesses whine endlessly about free markets. Well, trade wars and tariffs are the exact opposite. Compete or go broke. Under President Accountant we will allow markets to decide the winners and losers.

The one issue we have a right to complain about is the theft of intellectual property. (I’m pointing at you, China.) Our current president has a point on trade issues with China and a few other countries. Policies that strip intellectual property from U.S businesses will be dealt with harshly. If it is determined (China is the worst offender here) that theft has taken place, the government of the country where the offending company resides must compensate for losses and prevent such theft. If the government of said country can’t regulate their own people that country is barred from selling any goods or services in the U.S. until they govern responsibly. No more stealing our stuff and using it to sell against our own hard-working business owners.

The details are more than I can publish right now, but trust me. It’ll be great! The best trade plan this country has ever seen.

Health Care

It is repugnant that the wealthiest nation on the planet can’t provide basic medical care for all its people when other nations do just that. Therefore, I will sign an executive order my first day in office expanding Medicare to cover all U.S. citizens from Day 1 to Day End. No more Medical Premium mandate needed. If you want more than basic coverage; buy additional coverage. There is no additional deduction and businesses are not allowed to provide more health coverage to employees. Businesses are out of the health care business from now on (unless they are a medical business).

To pay for this basic benefit the Medicare portion of FICA will be increased 2%; half paid by the employee and half by the employer. All income, including dividends, capital gains and interest, will pay the additional FICA tax. And remember the FICA exemption above. Nobody gets hurt.

I hear my conservative friends complaining already. “We need to keep government out of our conversations with out doctor,” you say. I agree. Let’s keep your employer out of it, too. I for one am sick to death of telling my employees what kind of medical care they can get. Unless I’m a doctor or hospital, I’m out of the health care business and devoting all my time to my business, which is what I’m good at and the reason I started my business.




Minimum Wage

Is that grumbling I hear at the back of the room? No worries, my liberal friends. Under President Accountant the minimum wage will be abolished! You heard me right. Now holster your weapons.

The reason I’ll eliminate the minimum wage is because if we have a minimum wage to increase the number of jobs, then it stands to reason we must have a maximum wage to create more jobs. Don’t hear that argument too often, do you?

Eliminating the minimum wage will not put you at risk. Your favorite president will guarantee you see $15 per hour minimum on your paycheck each and every week. Rather than force companies to pay a minimum wage, there is a special tax for every hour any employee earn less than $15 an hour. That special tax is 20 times the amount your employee paid under $15 per hour.

I bet there will be no companies paying less the $15 an hour right quick.

Yes, businesses will be encouraged to automate with higher wages. But when has increased productivity been bad for a society? You get more for less. And with the new standard deduction and Medicare-for-all programs you will have a secure safety net.

There will be slightly fewer jobs, but they will pay better. Do I have your vote yet?

Under Cover

There is a lot to love by both sides of the aisle with my plans. Unless you are a tax professional you probably like my proposals.

It is unlikely I’ll actually be elected. Rumor has it a stark-raving mad crowd of accountants are approaching the Accountant farm as I write. With such a simple tax code with no loopholes, tax professionals are out of business. But then again, what did we produce? We manipulated a system created by man with no logical connection to reality. Very unproductive.

HUH!?

Was that gunfire?

 

More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!



Free Tickets to Any NFL Game for You!

Learn the secret to scoring free tickets to any game at any time. Enjoy football, soccer, hockey, baseball or basketball from the inside. You and your friends will have the best time ever! #wealthyaccountant #hockey #football #free #tickets #basketball #baseball I preempt our regular programming. I had an awesome post planned for today, but then my oldest daughter returned from college and told me something that made my mouth sweat. (You can enjoy the planned awesome post Thursday.)

Regular readers may remember I swore off commercial television decades ago, including my beloved football (not to be confused with soccer, my non-North American friends). Still, football is a massive part of the backwoods lifestyle of Phuket, Wisconsin. (Can you blame us? It’s all we have! Either that or admiring our frozen tundra.)

Now I know what you’re thinking. You like football and if you enjoy the sport you should be able to enjoy the sport. I agree. But readers around here are frugal and it takes a king’s ransom to get into the game! If you’re lucky enough to be in the 1% it’s still affordable, but if you’re in the 1% somebody else paid for those tickets or you don’t attend such extravagant events. Paying for NFL game tickets is for the 99% and chumps.

You can blame this post on procrastination. All weekend I kept promising myself I’d write Monday’s post early and get a jump-start on posts for when I was at FinCon in a few weeks. Instead, I focused my attention on YouTube videos of the Red Green Show. I think you’d agree it was a good trade-off.




Before We Get Our Free Tickets

I’m writing this late Sunday night (because I never wait until the last minute to write what needs to be published Monday). The Packers are playing the Bears in the late game. Yes, I’m missing all the action once again. But my daughter’s words echoed in my mind: free Packers tickets.

If you gave me free tickets to an NFL game I’d sell them. I have never—and never will—watch an NFL game at a stadium. If God hates me I might end up forced to watch a commercial laden television broadcast at the family Thanksgiving gathering.

Score free tickets to any sporting event you want. Planning is simple and fun. You might even get paid to attend a football, soccer, basketball or baseball game. #wealthyaccountant #free #football #baseball #soccer #basketball #tickets One reason I’ll never watch a game at Lambeau Field is because I heard they play the commercials in the stadium to all the chumps who coughed up serious change to attend. Is there any way to avoid this garbage? You can correct me in the comments, but it;s what I’ve heard.

Deep down I secretly hope the Packers get clobbered early in the season. It is soooooo annoying listening to the nonstop football discussion as if it makes any difference. I hear it at the office, from family, clients, at the gym while lifting weights and worst of all, in the friggen steam room at the gym when I just want to do is unwind. (FYI: I can’t name the coach or a single player on the team.)

Yes, I defend your right to watch any sport you want; I just don’t want to hear about it.

And my dream came true! Due to the nugget of knowledge imbued by my daughter I was interested enough to check Yahoo Sports to see how the Packers are doing tonight and they are getting gutted 20 to nothing. Hahahahahah!

Ah, the gym will be so quiet tomorrow as the proletariat licks their wounds as I workout. (Okay, smartass! I procrastinated more than you thought. I saw the 20-0 score on Yahoo and went back to enjoying Red Green. Then I vomited a little in my mouth when I went back and saw the final score. Looks like a mass shooting is a high probability at a gym near a certain accountant’s establishment. God, how I dream of the time each year when the Packers are out of the playoffs.)

By now you’re probably wondering if I have the goods. I do. The reason I tell you all this stuff is because the information I need to impart takes all of 15 words to explain and I have column inches to fill. This is powerful information and needed dissemination. So, on to the meat of our presentation.




How to Snag Free Tickets to Any NFL Game

Once again, I don’t have insider information on any of this so you just have to trust me.

Football tickets are expensive. I’m guessing they run a hundred bucks or so per person, plus parking, program (do they charge for those things or even still have them?) and food. They probably charge to use the restroom.

Attend any sporting event free with this little known secret. Planning is important. You and your friends can enjoy any football game for free. You might even get paid to see the Super Bowl. #wealthyaccountant #superbowl #sports #sportingevent #planning #americanfootballThis is serious ka-ching. The kids have to stay home at these prices or dad would be set back a thousand smackeroos or more!

No more procrastinating. What I discovered is more than free tickets to any NFL game; you actually get paid to go to the game!

It works like this. Game day is a messy experience. Stadiums need to keep on top of the garbage intoxicated fans keeps throwing everywhere other than the waste basket so they pay people to come to the game and tidy up.

Each team is different, I’m sure. But all teams have the same problem and need to keep things tidy on game day. And this is where my daughter came in.

The secret she told me was PTK (Heather is a smarty pants and is the VP of the Wisconsin PTK) sends people to Packer games all season to raise money for the organization. For the Packers at least, you need at least 10 people to attend during the game. I was told the group was paid ~$800 for 5 hours of time during the game and they actually get to see some of the game (always a downside).

For frugal people like you this is a monster idea! Not only can you save hundreds on an expensive habit, you actually have a very part-time side gig! Aren’t you excited?

There is a potential catch. I’m unsure if only non-profit organizations are allowed to do this. But that is a small speed bump people for folks as intelligent as the people around here. Heck, you can gather your buddies from the tavern league to get the requisite 10 people. (Hey, if you consider NFL tickets an acceptable expense you also probably spend crazy amounts of money on watered down hooch at the local tavern.)

Game Plan

Every team in every major sport probably has a similar program. If you really do love the sport, this is a good way to support your team while enjoying the game from the inside. Rather than crack open your wallet for an expensive outing, consider participating. You can attend the game for free and get paid!

Yes, you don’t get to enjoy those very comfortable seats. Instead, you can walk around as you enjoy the game. When you see trash blowing around you pick it up and put it where it belongs. As a responsible citizen you do that anyway. Right?

Regardless your sport of choice, check into this nugget of information. Check what the rules are for your favorite team. You can earn a few dollars while enjoying a great time out with friends. If it requires a non-profit, join one. Then volunteer. The organization probably keeps the money, but so what? You help a good cause while getting free entertainment. Think of all the fun.




Disclaimer

I know I was facetious in this post. It was about the only way to write it. Just because I walked away from spectator sports decades ago is no reason you can’t enjoy the game. I made my choice; you should make yours without regard to a crazy accountant’s personal decisions. The idea is short, sweet and to the point. But sporting events are expensive and this information can make game day more fun than ever, raise money for a cause (or you) and allow you free attendance.

My choices are different than yours. You can maintain a frugal lifestyle while enjoying the good things in life. I bet helping out on game day would make the game even more pleasurable. It is different than passively sitting in a chair and watching the game. You can be part of the team effort.

Honestly, I enjoy the excitement the guys at the gym express when the Packers are doing well. I don’t watch, but still cheer on the home team. I only know the name of one player. (Rogers is still the quarterback, right?)

Spending money is okay, no matter what you’ve heard. Overspending is a different story. Professional sports can set you back serious coin. Especially while you are reducing debt and building toward financial independence, you should focus on reducing spending. Now you can keep spending low as you build your wealth and enjoy the things you like in life.

And I saw the Packers eked out a close one. Must have been a nail biter. The guys at the gym will be excited. I’ll be excited for them, too. Go Packers! Even if I never see a game this year.



More Wealth Building Resources

Personal Capital is an incredible tool to manage all your investments in one place. You can watch your net worth grow as you reach toward financial independence and beyond. Did I mention Personal Capital is free?

Side Hustle Selling tradelines yields a high return compared to time invested, as much as $1,000 per hour. The tradeline company I use is Tradeline Supply Company. Let Darren know you are from The Wealthy Accountant. Call 888-844-8910, email Darren@TradelineSupply.com or read my review.

Medi-Share is a low cost way to manage health care costs. As health insurance premiums continue to sky rocket, there is an alternative preserving the wealth of families all over America. Here is my review of Medi-Share and additional resources to bring health care under control in your household.

PeerSteet is an alternative way to invest in the real estate market without the hassle of management. Investing in mortgages has never been easier. 7-12% historical APRs. Here is my review of PeerStreet.

QuickBooks is a daily part of life in my office. Managing a business requires accurate books without wasting time. QuickBooks is an excellent tool for managing your business, rental properties, side hustle and personal finances.

A cost segregation study can save $100,000 for income property owners. Here is my review of how cost segregations studies work and how to get one yourself.

Amazon is a good way to control costs by comparison shopping. The cost of a product includes travel to the store. When you start a shopping trip to Amazon here it also supports this blog. Thank you very much!