Three Key Reminders To Keep Your Head On Straight

Last week I wrote about all the chaos that our culture seems to be experiencing, and how things feel like they are fraying around the edges.

Well, not only do we seem to be more divided than ever (with a heaping slice of online bitterness thrown in), but each of us carries our own private fears and struggles having to do with our personal circumstances -- be they financial, business-related, family, or otherwise.

So, it seems right that I would take this time, as I have occasionally done in the past, to remind you of a few things:

Behm's Key Reminder #1: What you choose to "ingest" will greatly impact your state-of-mind. Garbage in, garbage out, as they say. And, of course, the opposite is true -- when you surround yourself with excellence and clear-eyed determination, you find that your heart and mind carry much greater strength.

Temper your political media intake, as most outlets are (quite literally) merchants of fear.

From a financial standpoint, the stock market seems to be an emotional "port in the storm" right now, but this leads me to...

Behm's Key Reminder #2: The only thing certain about the stock market is that it's volatile. So, for those of you with many assets resting there, don't make moves out of panic or greed. Sit down to discuss a tax-advantaged strategy ... not a knee-jerk emotional response.

Behm's Key Reminder #3: The only thing you can truly control is yourself. You can't control the market, you can't control our domestic politics, and there's a real sense in which you can't even, really, control your salary and income.

So, with those key reminders in mind, here's what I suggest:

You CAN control your tax strategy ... and we can help.

I generally write two emails per week. This one is for business professionals. The other is more for personal and family. Today, I’m going to include a few paragraphs from that email, because it applies so beautifully to real estate investing:

Pretend you were considering taking money out of a pension (401k) to finance a down payment on a house. This kind of strategy happens all the time. However, to complete the transaction without consulting a knowledgeable professional beforehand might result in a four- (or five-) figure mistake.

In this specific situation, I would ask you a few simple, necessary questions. And then, depending on the answer, would likely advise you to roll the money ($10,000) into a Traditional IRA. That way, you could withdraw the money at a savings of $1,000. This is because money used for a first home, up to $10,000, is penalty-free when taken from an IRA but not a 401K.

That's called strategy. When you benefit from that kind of strategy, it's called planning. It's not only related to housing, 401K or IRA allotment -- I want to help you experience all-around financial success moving forward.

I'm grateful for our chance to serve you and your business -- and we are dedicated to its success. Which means that we are here to be PROACTIVE on your behalf.

Can other accountants say that?

BE THE ROAR not the echo®

Warmly,

Janet Behm