Demographics and Economics
Demographics and Economics go together like a Horse and Carriage. Years ago when I'd ride somewhere with my dad, he'd just shake his head when we saw a school with those little "portable classrooms". Having been a school administrator, he'd comment that unless a school had a really large new housing project happen, most schools just needed to count the number of babies born in a given year and make a best guess as to the number of kindergartners that would be attending schools 5 years in the future. Demographics - they have always been readily available.
To benefit economically in any business climate, you need to have enough customers buying at the price to meet your expenses and desire for profit. Demographics are available, and they are part of the equation.
•If you are a financial planner that is targeting prospects that are 50+ years old (boomers), there are lots of them and lots of other financial planners chasing them, too! Economically, you may decide to look into a particular niche of that market (boomer teachers, boomer plumbers, boomer dog groomers, etc) or a niche that serves that market (landscapers, vacation planners, health clubs). Think "where does your target hang out" or what "services do they use"?
•If you are a neighborhood child care center, remember that many neighborhoods will have the same families throughout the children's school age years. Your demographics will change and targeting only your local neighborhood will lead to diminishing returns. But you know this - and it is tracked by the United States Census Bureau.
•If the economics of your prospect is likely to change, demographics may also be playing a part in that. As people go through different stages of their lives, they spend differently. Keeping customers for life means staying relevant to them at their different stages.
Adding demographic reviews and economic projections related to your customers may help make your future more economically rewarding to you!
Copyright 2011 Linda Fayerweather MBA EA
http://www.changinglanes.biz/
419-897-0528
linda@changinglanes.biz
Consider working with a coach or a MasterMind Team to make 2011 the year of your dreams!
Financial Tips and 2011 Tax Season
Often when people start gathering all their information for taxes, they start to think about "how can 2011 be better" Here is a short review you can implement to make things better this year.
Review Your Savings Plan: Establish or review your savings plan to begin accumulating assets for your life goals. Professional guidance will be helpful in reviewing investment alternatives.
Review Your Retirement Plan: Establish or review your retirement plan. Explore the availability of deferred compensation programs through your employer, such as 401(k) and 403(b) plans. Begin contributing as soon as you are eligible.
Review January's Budget vs. Actual: Compare January income and expenditures with your budget. Make adjustments as appropriate to your February expenditures. Make sure you have invested your planned savings amount for January.
Collect Your Tax Information: Verify that you have received all necessary Forms W-2 and 1099 and a statement showing the year-end balance of IRA and Keogh plans. Contact the appropriate company for any that have not been received. For those that have been received, make certain that the amounts agree with your records.
Although taxes for personal returns are not due until April 18, it is best to get an early start since additional follow-up may be necessary. Decide this year to make tax season less about recording history and more about writing a new financial plan.
Copyright 2011 Tim Pinkelman, CPA
Accounting Center & Tax Services, Inc.
"Our Value is Measured by Your Success"
419.882.9255
734.847.0400
http://www.accounting-centers.com/
Showing posts with label tax planning. Show all posts
Showing posts with label tax planning. Show all posts
Monday, February 14, 2011
Monday, October 04, 2010
Capture and Taxes
Capture That Thought
What is your capture tool? Is it your PDA, your notebook, your laptop or maybe a little of each? The purpose of a capture tool is to catch and retain all that comes in each day. This takes those thoughts out of your mind and puts them all in the same place to retrieve later. This capture tool should be designed to help you be more productive by staying with the "do-nows" and not being dragged into the "not-doing-now" or "never-doing-now" world of work.
Step 1 - Capture: Deciding on how you want to capture information may require redesigning some of the things you are doing. Oh, yes, what works for me may not work for you. The key to a good capture tool according the Brian Stuhlmuller from "Mission Control" is having it with you at all times. So unless you sit in an office all day, the three most popular for those that roam around are a PDA, a microcassette recorder or a 3 "X 5" spiral notebook.
Step 2 - Save for retrieval: Now, when you return to your office, you need to decide what will you do with this information. A PDA should nicely sync with your personal information manager system (like Outlook). If it doesn't, find out how to make it. This is important if anyone other than you needs to see your calendar. With any handwritten notes you will either file them or scan and digitally file. Think of the final resting place for information as a process that you always will follow.
If all this sounds like too much work, think about the last time you lost that piece of paper . . . how much time did you spend tearing your office apart trying to find it?? A capture tool and process will mean Ben Franklin was right when he said "A place for everything, everything in its place". He was Lean before it was cool!
Copyright 2010 Linda Lucas Fayerweather MBA EA
http://www.changinglanes.biz/
419-897-0528
linda@changinglanes.biz
Business Plans Make Profit!
Investments and Taxes
If you buy mutual funds in your taxable portfolio (meaning outside your IRAs or retirement plan), here's a timely warning for avoiding an ugly year-end tax trap.
Mutual funds -- especially stock funds -- generally pay two types of dividends at the end of the year:
• "Income" dividends consist of income earned by the fund's portfolio - bond interest, stock dividends, etc. These are generally taxed as ordinary income whether you take them in cash or reinvest them in new shares. (However, income from "qualified corporate dividends" is taxed at special lower rates and capped at 15%; Treasury income is free from state income tax; and municipal bond income is free from federal and most state tax.)
• "Capital gain" dividends are profits from sales of fund assets. These are generally taxed as long-term capital gains, regardless of how long you own the shares. They're taxed when distributed whether you take them in cash or reinvest them.
Paying tax on income you earn is bad enough. But paying tax on income you don't really get is worse!
How can that happen?
In today's market, you may be thinking of taking cash off the sideline and putting it back in the market. If you do that before the fund you buy pays its dividends, you'll get stuck paying the tax on that dividend -- even though you haven't really "earned" the income or capital gain that you're paying tax on!
If you're looking to invest now, find out whether the fund you like is anticipating substantial dividends. A little homework here can save a lot of tax down the road.
You might also consider index funds or exchange-traded funds, which passively track indices like the S&P 500. These funds avoid the frequent sales that rack up taxable gains. That's because they generally sell only when they need to redeem shares, or when the underlying index itself changes.
What's the bottom line? If you're looking to shuffle your portfolio, pay attention to taxes. You don't control whether markets go up or down. But you do enjoy a surprising amount of control over the taxes you pay. Take advantage of that control whenever you can to turbocharge your investment performance.
Remember, it's what you keep that counts!
Tim Pinkelman, CPA
Accounting Center & Tax Services, Inc.
419-882-9255 or 734-847-0400
http://www.accounting-centers.com/
What is your capture tool? Is it your PDA, your notebook, your laptop or maybe a little of each? The purpose of a capture tool is to catch and retain all that comes in each day. This takes those thoughts out of your mind and puts them all in the same place to retrieve later. This capture tool should be designed to help you be more productive by staying with the "do-nows" and not being dragged into the "not-doing-now" or "never-doing-now" world of work.
Step 1 - Capture: Deciding on how you want to capture information may require redesigning some of the things you are doing. Oh, yes, what works for me may not work for you. The key to a good capture tool according the Brian Stuhlmuller from "Mission Control" is having it with you at all times. So unless you sit in an office all day, the three most popular for those that roam around are a PDA, a microcassette recorder or a 3 "X 5" spiral notebook.
Step 2 - Save for retrieval: Now, when you return to your office, you need to decide what will you do with this information. A PDA should nicely sync with your personal information manager system (like Outlook). If it doesn't, find out how to make it. This is important if anyone other than you needs to see your calendar. With any handwritten notes you will either file them or scan and digitally file. Think of the final resting place for information as a process that you always will follow.
If all this sounds like too much work, think about the last time you lost that piece of paper . . . how much time did you spend tearing your office apart trying to find it?? A capture tool and process will mean Ben Franklin was right when he said "A place for everything, everything in its place". He was Lean before it was cool!
Copyright 2010 Linda Lucas Fayerweather MBA EA
http://www.changinglanes.biz/
419-897-0528
linda@changinglanes.biz
Business Plans Make Profit!
Investments and Taxes
If you buy mutual funds in your taxable portfolio (meaning outside your IRAs or retirement plan), here's a timely warning for avoiding an ugly year-end tax trap.
Mutual funds -- especially stock funds -- generally pay two types of dividends at the end of the year:
• "Income" dividends consist of income earned by the fund's portfolio - bond interest, stock dividends, etc. These are generally taxed as ordinary income whether you take them in cash or reinvest them in new shares. (However, income from "qualified corporate dividends" is taxed at special lower rates and capped at 15%; Treasury income is free from state income tax; and municipal bond income is free from federal and most state tax.)
• "Capital gain" dividends are profits from sales of fund assets. These are generally taxed as long-term capital gains, regardless of how long you own the shares. They're taxed when distributed whether you take them in cash or reinvest them.
Paying tax on income you earn is bad enough. But paying tax on income you don't really get is worse!
How can that happen?
In today's market, you may be thinking of taking cash off the sideline and putting it back in the market. If you do that before the fund you buy pays its dividends, you'll get stuck paying the tax on that dividend -- even though you haven't really "earned" the income or capital gain that you're paying tax on!
If you're looking to invest now, find out whether the fund you like is anticipating substantial dividends. A little homework here can save a lot of tax down the road.
You might also consider index funds or exchange-traded funds, which passively track indices like the S&P 500. These funds avoid the frequent sales that rack up taxable gains. That's because they generally sell only when they need to redeem shares, or when the underlying index itself changes.
What's the bottom line? If you're looking to shuffle your portfolio, pay attention to taxes. You don't control whether markets go up or down. But you do enjoy a surprising amount of control over the taxes you pay. Take advantage of that control whenever you can to turbocharge your investment performance.
Remember, it's what you keep that counts!
Tim Pinkelman, CPA
Accounting Center & Tax Services, Inc.
419-882-9255 or 734-847-0400
http://www.accounting-centers.com/
Monday, December 28, 2009
Wanting - Partying - Santa
====================================
What You Want Part 2
====================================
Last week we did a quick exercise to get to the root of what we really want, this week, take a short period of time to think about your business quagmires - those sticky, icky places where things went wrong. Who was always around? What brought out the best whine? Who approached it as a challenge with solutions? Make a list and burn it.
Now, make a plan for what you want to do, focus on the positive behaviors and activities that are producing results, people that do well and the successes they bring, and which customers do you really, really want to hug when you hear their voice. When animal trainers want to produce a new behavior, they focus on WHAT they want, not what they DON'T want. Learning from your business quagmires for the solutions may be the perfect start to the New Year in a new way.
Copyright 2009 Linda Fayerweather
What's working in your Business?
Changing Lanes LLC
http://www.changinglanes.biz/
====================================
Party Plans
====================================
The holiday party is a great time to meet people but . . . you should have a plan!
Everybody goes to parties, and the holiday season is full of them. It’s also a business slowdown season for many of us who are not in retail. The holiday parties are NOT just a place for free food and drinks.
Holiday parties and other social mixers bring new opportunities to network, even more than the rest of the year. The holidays are times when we are more likely to see people in a social setting, and this setting definitely lends itself to building relationships.
Most people think of networking only in traditional networking venues, such as the chamber, strong-contact referral groups like BNI, and other business-oriented gatherings. But that’s not using the power of networking to its fullest.
It can be the best time to introduce yourself or have a friendly conversation with one of your superiors. Making an impact on someone important can be a real career booster; it could open the door for new job opportunities, promotions and/or new business.
In order to make the most of “holiday party networking,” here are a few things to keep in mind:
• Be prepared! If you’re going to hobnob, try to know whom you are talking to, what their job and role in the company are and what they’ve done this year for the organization. Use this info as a way to start a conversation. If you know some of the people who will be in attendance, do a Google search on them. Do some homework.
• Ask questions. Some suggestions: How did you start the business? How did you take the business international? How did you start franchising? What were some of the challenges with . . . ? Have you read any good books lately? (My favorite is: How can I help you?)
• Have a “teaser” topic ready. Approaching the end of the year, every business wants to increase profits and performance in the New Year. Have an idea ready that describes how you can improve your sector in the coming year. (Word to the wise: Don’t give away the goose; set up a meeting to discuss the details.)
• Use this introduction as a segue for a future meeting. As mentioned above, you don’t want to “end” the conversation at the party. The end game here is to open the door for follow-up. You want to be able to connect with the person after the party, one-to-one.
• Don’t have more than a couple drinks. It’s a party, but it’s not YOUR party. You don’t want to be stinking of liquor when you approach the people you want to connect with. Impressions count. Make the right one.
• Be confident of your value. Introducing yourself to an executive can be an intimidating experience, so give yourself an informed pep talk. Before the event, make a list of the things you’ve done over the past year and understand how what you do may integrate into discussions. Once you’ve got this down, there’s no reason you shouldn’t feel good about yourself. Consider how what you’ve done can integrate with the executive’s interests.
• Honor the event. Make sure when networking at a holiday party–or any non-traditional networking event–that networking is supplementary to the reason people are there, so don’t treat it like a chamber mixer. Be sincere.
Don’t act as if you’re in the boardroom giving a presentation; keep it natural and leave them intrigued. The real emphasis must be on “finesse” at a company holiday party. Yes, it is a great networking opportunity–but if you overtly “sell,” you may turn people off! After all, it is a holiday.
You can network anywhere, including events where it might not at first occur to you to try it–and, paradoxically, it’s at these non-traditional networking settings where you’ll often get the most bang for your buck.
Copyright 2009 Ivan Misner, PhD, Founder BNI International
Paula Frazier
Referral Marketing Expert & Master Trainer
Referral Institute
540-793-0622
http://referralinstitute-va.com/
"Helping people create Referrals For Life®"
================================
Santa Came to Town
================================
When you think of Santa, you probably focus on what he gave. But have you ever thought about what he pays? You can be sure the IRS does!
Santa is most famous for his holiday gift-giving. His North Pole organization is set up as a not-for-profit corporation under Internal Revenue Code Section 501(c)(3). But Santa also operates a second, highly profitable business focused on licensing and endorsements. So how can Santa shelter some of those presents? Fortunately, Santa can take advantage of many of the same deductions as any other business owner. Those include:
• Mileage. Santa can choose to deduct "actual expenses" (maintenance, upkeep and depreciation on the sleigh, reindeer chow, etc.) or the standard allowance (currently 55 cents per mile). In Santa's case, his trip around the globe to deliver toys to all the good little girls and boys makes the allowance his best bet. (His sleigh also qualifies as "energy efficient" - it's 100% "green," running entirely on reindeer power, and even Rudolph's nose is low-wattage.)
• Uniforms and work clothes Santa provides for himself and his elves are deductible so long as they're not "suitable for ordinary street wear." This time of year it seems like everyone enjoys a red coat and hat. Still, we feel confident Santa's classic look is distinctive enough to pass the test.
• Home office. Home offices are deductible so long as they're used "regularly and exclusively" for work and constitute the "principal place of business." Santa's North Pole workshop certainly qualifies, which means he can write off depreciation, utilities, cleaning and maintenance, and holiday decorations. Code Section 132(j)(4) even lets him write off "on-premises employee athletic facilities" for holding reindeer games.
• Retirement. Santa seems to love his job now. But how will he feel about his long night's work as he ages? He'll probably want to stuff some cheer in his own stocking. The problem is those naughty nondiscrimination rules that force him to contribute on behalf of his elves. We recommend a "safe harbor" 401(k) to maximize his own contributions without worrying that the plan may become "top-heavy."
• Family employment. It's not clear if Mrs. Claus holds a formal position in Santa's organization. However, putting her "on the books" would let Santa boost the couple's qualified plan contributions and perhaps establish a Section 105 medical expense reimbursement plan to write off his medical bills as a business expense.
And remember - if you have any last-minute holiday finance questions, don't hesitate to call us!
Tim Pinkelman, CPA
Accounting Center & Tax Services, Inc.
419-882-9255 or 734-847-0400
http://www.accounting-centers.com/
What You Want Part 2
====================================
Last week we did a quick exercise to get to the root of what we really want, this week, take a short period of time to think about your business quagmires - those sticky, icky places where things went wrong. Who was always around? What brought out the best whine? Who approached it as a challenge with solutions? Make a list and burn it.
Now, make a plan for what you want to do, focus on the positive behaviors and activities that are producing results, people that do well and the successes they bring, and which customers do you really, really want to hug when you hear their voice. When animal trainers want to produce a new behavior, they focus on WHAT they want, not what they DON'T want. Learning from your business quagmires for the solutions may be the perfect start to the New Year in a new way.
Copyright 2009 Linda Fayerweather
What's working in your Business?
Changing Lanes LLC
http://www.changinglanes.biz/
====================================
Party Plans
====================================
The holiday party is a great time to meet people but . . . you should have a plan!
Everybody goes to parties, and the holiday season is full of them. It’s also a business slowdown season for many of us who are not in retail. The holiday parties are NOT just a place for free food and drinks.
Holiday parties and other social mixers bring new opportunities to network, even more than the rest of the year. The holidays are times when we are more likely to see people in a social setting, and this setting definitely lends itself to building relationships.
Most people think of networking only in traditional networking venues, such as the chamber, strong-contact referral groups like BNI, and other business-oriented gatherings. But that’s not using the power of networking to its fullest.
It can be the best time to introduce yourself or have a friendly conversation with one of your superiors. Making an impact on someone important can be a real career booster; it could open the door for new job opportunities, promotions and/or new business.
In order to make the most of “holiday party networking,” here are a few things to keep in mind:
• Be prepared! If you’re going to hobnob, try to know whom you are talking to, what their job and role in the company are and what they’ve done this year for the organization. Use this info as a way to start a conversation. If you know some of the people who will be in attendance, do a Google search on them. Do some homework.
• Ask questions. Some suggestions: How did you start the business? How did you take the business international? How did you start franchising? What were some of the challenges with . . . ? Have you read any good books lately? (My favorite is: How can I help you?)
• Have a “teaser” topic ready. Approaching the end of the year, every business wants to increase profits and performance in the New Year. Have an idea ready that describes how you can improve your sector in the coming year. (Word to the wise: Don’t give away the goose; set up a meeting to discuss the details.)
• Use this introduction as a segue for a future meeting. As mentioned above, you don’t want to “end” the conversation at the party. The end game here is to open the door for follow-up. You want to be able to connect with the person after the party, one-to-one.
• Don’t have more than a couple drinks. It’s a party, but it’s not YOUR party. You don’t want to be stinking of liquor when you approach the people you want to connect with. Impressions count. Make the right one.
• Be confident of your value. Introducing yourself to an executive can be an intimidating experience, so give yourself an informed pep talk. Before the event, make a list of the things you’ve done over the past year and understand how what you do may integrate into discussions. Once you’ve got this down, there’s no reason you shouldn’t feel good about yourself. Consider how what you’ve done can integrate with the executive’s interests.
• Honor the event. Make sure when networking at a holiday party–or any non-traditional networking event–that networking is supplementary to the reason people are there, so don’t treat it like a chamber mixer. Be sincere.
Don’t act as if you’re in the boardroom giving a presentation; keep it natural and leave them intrigued. The real emphasis must be on “finesse” at a company holiday party. Yes, it is a great networking opportunity–but if you overtly “sell,” you may turn people off! After all, it is a holiday.
You can network anywhere, including events where it might not at first occur to you to try it–and, paradoxically, it’s at these non-traditional networking settings where you’ll often get the most bang for your buck.
Copyright 2009 Ivan Misner, PhD, Founder BNI International
Paula Frazier
Referral Marketing Expert & Master Trainer
Referral Institute
540-793-0622
http://referralinstitute-va.com/
"Helping people create Referrals For Life®"
================================
Santa Came to Town
================================
When you think of Santa, you probably focus on what he gave. But have you ever thought about what he pays? You can be sure the IRS does!
Santa is most famous for his holiday gift-giving. His North Pole organization is set up as a not-for-profit corporation under Internal Revenue Code Section 501(c)(3). But Santa also operates a second, highly profitable business focused on licensing and endorsements. So how can Santa shelter some of those presents? Fortunately, Santa can take advantage of many of the same deductions as any other business owner. Those include:
• Mileage. Santa can choose to deduct "actual expenses" (maintenance, upkeep and depreciation on the sleigh, reindeer chow, etc.) or the standard allowance (currently 55 cents per mile). In Santa's case, his trip around the globe to deliver toys to all the good little girls and boys makes the allowance his best bet. (His sleigh also qualifies as "energy efficient" - it's 100% "green," running entirely on reindeer power, and even Rudolph's nose is low-wattage.)
• Uniforms and work clothes Santa provides for himself and his elves are deductible so long as they're not "suitable for ordinary street wear." This time of year it seems like everyone enjoys a red coat and hat. Still, we feel confident Santa's classic look is distinctive enough to pass the test.
• Home office. Home offices are deductible so long as they're used "regularly and exclusively" for work and constitute the "principal place of business." Santa's North Pole workshop certainly qualifies, which means he can write off depreciation, utilities, cleaning and maintenance, and holiday decorations. Code Section 132(j)(4) even lets him write off "on-premises employee athletic facilities" for holding reindeer games.
• Retirement. Santa seems to love his job now. But how will he feel about his long night's work as he ages? He'll probably want to stuff some cheer in his own stocking. The problem is those naughty nondiscrimination rules that force him to contribute on behalf of his elves. We recommend a "safe harbor" 401(k) to maximize his own contributions without worrying that the plan may become "top-heavy."
• Family employment. It's not clear if Mrs. Claus holds a formal position in Santa's organization. However, putting her "on the books" would let Santa boost the couple's qualified plan contributions and perhaps establish a Section 105 medical expense reimbursement plan to write off his medical bills as a business expense.
And remember - if you have any last-minute holiday finance questions, don't hesitate to call us!
Tim Pinkelman, CPA
Accounting Center & Tax Services, Inc.
419-882-9255 or 734-847-0400
http://www.accounting-centers.com/
Subscribe to:
Posts (Atom)