I received an ARC from Jason Navallo, author of American Dream: Interviews with Industry-Leading Professionals. As I suspect with most personal financial bloggers, I get an above average number of requests to review books in advance. Most get put to the side for a later reading, if I get to them at all. American Dream caught my eye because Navello asked politely if I would review the book and he provided a small amount of background in the initial email.
What intrigued me from the beginning is the interview format with six very successful professionals from a variety of unrelated fields. I am a sucker for success stories so I made time to read the book. It blew my mind! American Dream is not a long book which is a good thing because I could not put it down. Navallo used a simple format with each professional. He started by asking each professional interviewed to providing some background on their early life and how they came to lead in the industry they are in. Depending on the path the interview took, he would explore unique characteristics to each professional’s path to success. He ended each interview by asking about their belief in the Power of Attraction, favorite quotes, favorite books, best lesson in life, the key to success, and if they believed the American Dream was dead. The answers surprised me.Read More
When I was a young boy growing up on the family farm we had three sections to the farm: the homestead, Newhouse place, and “up by the other place”. Yeah, we really called it “up by the other place”. We were sophisticated hillbillies, I tell ya.
Up by the other place there was a well with an old style pump you worked by hand. Toward the end of our farming days the pump was fitted with an electric motor, but that doesn’t help with our story.
The old well pump up by the other place was a job I hated. Feeding the animals was okay, but getting the tank filled with water was a chore. And a lesson. That old well taught me more about life and success than any seminar or college class I ever attended. The lesson was so simple. It amazes me to this day more people do not understand the lesson of the pump.Read More
The tax advantages of organizing as an S corporation or an LLC electing to be treated as an S corporation are significant. Self-employment taxes disappear with the corporate structure and with an S corporation there is no income tax either as all profit flows to the owners. As with all good things, there are pitfalls. The S corporation is no different.
Most small businesses in my office use the S corporation structure. There are a few rules that need to be followed, like the owners paying themselves a reasonable wage. The wage issue is easy to handle; I require S corporation clients to do their payroll in my office. Problem solved.Read More
Sean is a CPA who sent me an email asking a list of questions about how I started my business, how I operate successfully, handle problems, and balance work and personal life. It is a common request from members of the accounting industry. They want to know how I pulled this stunt off. In the past I touched on the subject; today I will dig deep using Sean’s email to drive the narrative.
Even though this story is about my experiences in my business, most of what I do works for other business models with slight modifications. The hardest part for a professional earning good money is to jump into the unknown of private practice and the certain decrease in income as a business is started; the money comes later. There is also fear of the unknown. I will share how I managed these issues. This will sound different from what you hear from other people or the media. The only reason I can give for the dichotomy is 1 in 10 businesses survive the first five years. Since I am one of the survivors, my story will differ from the majority, 9 out of 10 crowd.Read More
As early retirement and quasi-retirement are easier than ever in our expanding “sharing economy”, the IRS is clarifying the rules on how much you need to share with your least favorite Uncle. For many people “sharing economy” jobs are their real jobs, for others, a way to fill time during retirement or as an adjunct to early retirement.
The goal here is to drive taxes to zero. The “sharing economy” has several opportunities to earn thousands of dollars per year and legally not report it on your tax return. In cases where you are required to report the income we can use tax strategies to significantly reduce or eliminate income or self-employment taxes.Read More
Tensions were high on September 26, 1983 between the United States and the Soviet Union. By May of 1981 the Soviet Union was convinced the United States was preparing for a first strike nuclear attack due to the rhetoric of President Reagan. Further fanning the fire was the Soviet military downing of a South Korean commercial airliner. Except for the Cuban Missile Crisis, the world was never closer to nuclear annihilation; the only difference is that during the Cuban Missile Crisis people knew how close they were to disaster; in 1983 the world knew tensions were high, but seemed blissfully unconcerned.
Stanislav Petrov agreed to fill in as commander for his friend on September 26, 1983 at Serpukhov-15 of the Russian Aerospace Defense Forces. His job was to watch for a surprise nuclear attack from the United States and her NATO allies. The United States had promised to install 108 Pershing II nuclear missiles along the Soviet border (they did in late November 1983) which could strike Soviet targets within ten minutes of launch and of which the Soviet Union had no defenses against.Read More
Americans who read the news even poorly know large corporations use tax inversions to avoid massive amounts of taxes due the U.S. government legally. What most Americans don’t know is they can use the same strategies on a smaller scale to never pay state income tax again. My guess is fewer than ten accounting firms in the U.S. utilize these strategies to protect their clients from state taxes. Today I will show you how to use the tax inversion without the help of an accountant.
A tax inversion happens when a major corporation buys a smaller company in a low or lower tax country or municipality. The acquiring company then moves its headquarters to the acquired company’s country. We will not get into the minutia of corporate tax law as it is not the focus of this post. We will use techniques of large corporations where they are applicable to small businesses, landlords, and retired taxpayers living or working entirely within the U.S.Read More
There comes a time when your responsible spending and investing habits grow your net worth to a level you will never spend in a lifetime. As the years pass you discover charitable causes you want to help. Giving is something that brings meaning to our lives. By making a difference, our hard work and intelligent planning creates the real reason we choose the life we lived.
The hard part of charitable giving is the number of worthy causes to choose from. Another issue is maximizing the value of the gift. There are three issues connected to charitable giving: choosing the charitable organization, determining the level of gifting, and using the tax code to maximize the value of your gift.Read More