Early Retirement Plus Working?

In this economy I need to make a decision in the next few days whether or not to apply early for Social Security benefits in the USA.  I do not reach full retirement age for 2.5 years, so I would have a smaller benefit amount each month.  The benefits would be recalculated when I reach retirement age and, if I keep working on jobs that pay into social security (as opposed to teaching jobs in IL and to other jobs that do not pay social security) I could end up with a bigger benefit than if I just wait until later.  The difference between what I would earn at full retirement age and what I would earn now is about $300 per month--significant for a long-term view.

At the same time, while I am actively working three businesses and pursuing clients and customers, having a steady flow of income while I build more business--or take-on some contract or other part-time work--would do wonders for my "security" and sense of well being.

It takes a month for the process to start, so, if I plan to do something soon, I will need to act in the next day or so.  I will then have to make estimated tax payments for social security income, so I'll be back to Quicken before I know it.

Taxing and Trying--eFiles and Oops!!

I missed the post to this blog for yesterday--this one will do for February 28, 2010.  I was working on my USA taxes--both federal and state taxes using TurboTax software.  (I've been using TurboTax for about 17 years and use both their Business edition and their Home and Business editions.  With these services I can file returns for a corporation (form 1120), and individual returns (1040) with Schedule C (business) and (for Mom) investments. 

It takes quite a while to gather the information together.  It would be quicker if I kept up-to-date using two other Intuit products--Quicken and Quick Books.  All of the Intuit products are great.  I just don't keep up with yearly upgrades--except in the case of TurboTax.

I also feel much better about these returns (already triple-checked by TurboTax) when I sign-up for Audit Defense (also through TurboTax).

As of now, all of the required returns have been eFiled at the federal and state levels and I have secured Audit Defense for all three returns--Moms, mine, and the corporation.

Now I am thinking about what I need to do for next year.


This year, with the economic downturn, I had some questions and used the "Live Community" (free responses to tax questions) and the "Ask a Tax Expert" services offered by TurboTax.

When I first filed my corporate taxes, I used the wrong form and the IRS rejected my return.  I used the 1120S when I have an 1120 corporation.  TurboTax for Business has both packages and I just created a new 1120 return and filed it today.

I had three additional businesses this year to be reported on my individual tax return (1040).  TurboTax Home and Business helped me with all of that and I received some excellent advice from "Ask a Tax Expert."  TurboTax also guided me through working through the sale of stock on Mom's account and finding the "cash basis" for the stock to determine capital gains.

Income Taxes--New Economy--American Middle Class?

The "American Middle Class" usually pay their taxes.  Their donations are not high compared to income and much of the tax base used by the Federal government comes from funds paid by members of the American Middle Class.

Who has been laid off in the new economy?  President Barack Obama has spoken about generating new jobs, though those jobs seem focused at what is called the "lower middle class" (skilled craftsmen and craftswomen).  If income has fallen, there will not be as much income to pay taxes on and the income expected will not be showing up.

Turbo Tax Makes Filing Taxes in the USA Less Taxing

This is tax season in the USA--nearing the time to file Income Tax returns at the Federal and State levels.  I've been using Intuit's TurboTax for years and have found it to be an invaluable aid--assuring accuracy, offering Audit Defense, and asking me relevant tax questions, then providing expert help as needed.

I file taxes for Meta Corp (of NV) as well as personal income tax returns for myself and my mother.  I purchase the Business and Home and Business versions of TurboTax and it covers all of my needs, including the state taxes for filing personal income tax in Illinois.

In 2009 I started a new business, DrM-Resources.  In preparing my tax returns I had to look at the two businesses I am running and to identify the relevant business codes for each--making sure that both were not sharing the same code.  Joelmonty.net, my consulting business, uses business code 541600 (Management and Technical Consulting Services).  DrM-Resources, largely an Internet publishing and Educational Support Services business, uses business code 611000 (Education Services--Education Support Services). 

Both services are interrelated, though the codes distinguish particulars.  The good news is that Turbo Tax helps me keep everything straight--along with the other components of my taxes.  My mother, at age 95, has tax issues related to retirement income and medical expenses.  TurboTax comes through for us there as well.

President Barack Obama--First Year in Office--January 20, 2010

President Barack Obama completed his first year in office today, January 20, 2010.  In an exclusive interview on ABC News Nightline, he speaks openly and frankly with George Stephanopoulos.  President Obama reflected that he is concerned that it is difficult to have people continue to operate on shared vision and values.  He was elected on a platform of change and has found it incredibly challenging to change the "status quo" in Washington, D.C. politics.

Too many people are enamoured of politics and their parties rather than on the real issues of the middle class of the USA.  President Obama noted that he chose to put health care to the forefront of his agenda because of the horror stories about health care he had heard from people around the country during his campaign.

Regarding support for Haiti, President Obama said that the USA needs to be able to support people (especially neighbors) in need rather than just showing force in war.

I believe that President Obama is doing his best to deliver on what he proposed to do when he was elected.  Jobs and health care are closely tied together.  The present health care bill represents a compromise and, according to President Obama, about 90% of the Senate bill matches that of the House.  While some people are opposed to the bill it is clear that we need to change health care in the USA.

Right now health care plans are affordable only while someone is working.  Even COBRA payments (which run for 18 months when someone leaves work involuntarily) are too high to afford unless supported by the Federal Government.

Jobs are a major challenge.  Many highly qualified people have been laid off and cannot find work that values their education and experience or that pays them enough to take care of their families.  The government is helping to extend unemployment benefits and those benefits do not really pay all the bills.  People need to work and are actively looking for work--and are still not finding it.

I believe that President Obama faces the dilemma that the public is impatient and finds it hard to maintain focus on shared vision and values.  Because people are not getting their needs met in a timely way, they are upset with the government--even though the causes for their upset predate President Obama's administration by many years.  The vote in Massachusetts shows that the public still wants change.  That someone would run just to oppose what President Obama is trying to accomplish seems to fly in the face of reason--though that is the way much of the problem is created.  People appeal to emotion and vested interest groups--for example, the Oil industry, the Health Insurance industry--know how to use media to stir up emotional response.

I believe President Obama is doing a good job and needs more help to "get it right" for the American people.  The organizations he started during his campaign seem more like lobbying groups appealing for money than for real problem-solving resources.  They just become another voice making what President Obama referred to as "noise" (think of it as static that you hear between stations when tuning a radio).

We need the kinds of changes President Obama is proposing and I strongly believe in his idea of having the USA show its concern and ability by supporting neighbors (and others) in need rather than trying to impose what we want on other nations.  We need to defend ourselves, of course, and the way the terrorists are currently operating makes that especially challenging.

I wasn't particularly pleased by George Stephanopoulos' attitude expressed during the interview or by the way he seemed to cut the President off to make his points.  Hopefully the President was allowed to communicate what he wanted to during the interview and I thank ABC News for its efforts on behalf of the public.

I also want to thank President Obama and his family for their dedication and commitment throughout this first year of his Presidency and to wish them well for the years ahead.  I believe history will show President Obama to have been an exceptional leader working in exceptional times.

A Vital Spark--Missing in the USA? in the World?

In the late 1800's when most Americans were farmers, there was a vital spark of energy in the food that was grown.  This vital spark was probably in most of the food grown around the world and no one knew that it was there.  In the beginning of the 2100s, much of our food--even organically grown food--is missing that vital spark.  Our bodies need supplements to get the bio-materials we need to be healthy.   There is lots of discussion over exactly what and how much and how to get it and that we need more to be healthy is not really in contention.

In the emerging USA economy, the "American Dream" of owning a home, raising a family, giving more to our children that their parents had, getting a college/university education for whoever wanted it is changing.  Part of how it is changing seems to be the elimination of the middle class--the people who worked toward the American Dream from World War II (1940s) to the present.  Many of the jobs are changing.  With the pressure to be a nation of consumers, debts are increasing while income is shrinking.  Recently we learned that there will not be a cost of living increase in Social Security for 2010.  "We have not had inflation."  Bills keep going up and more and more people are being laid off and forced to accept jobs with lower salaries.  Getting out of debt is getting more and more difficult and savings set aside in "401K" plans and in stocks and bonds keep dissolving (worse than disappearing).  Yes, the concept of "dollar cost averaging" may still exist--if you can wait 50 years or more for the stock to recover its lost value.

Real Estate investing seems to be riding on the wave of change.  Someone mentioned to me today that "everyone still needs a place to live, no matter what the economy."  That's certainly true.  It's also true that marriages continue to take place, babies continue to be born, people need to change houses for a variety of reasons.  Commercial Real Estate is the next area for concern in terms of people not being able to pay for the properties they have bought.  The end idea is still that Real Estate, in some form, is here to stay.  Of course, that is part of the issue, the form may be changing rapidly--especially in the next few years.

Even so, it's hard to see any "job security" these days.  Those out of work looking for a job are not assured how long the new job will last--or the company or organization providing the job.  When we have expenses, all of us need a positive cash flow to do more than cover our expenses.  We would also like to have a good way to save for our future and emergency needs.  Health care is important and we need to be able to afford the premiums.

Education is a vital part of learning how to do something--to learn from others who are successful can certainly eliminate much of the trial and error we would otherwise face in working something new.  There is high value in the right education.  Some education is expensive without providing lasting value.  At other times we have to look to find the lasting value that may not be obvious at first.

I don't regret my education, though what I know needs to be added to in order for me to continue to be successful in our emerging economy.  I have my own strengths--consulting with others and with businesses, providing training designed specifically to help someone learn to do something in a new way.  I have not yet been involved much in Real Estate or in Real Estate investing. 

I'm exploring what opportunities I see to learn more about how I can be successful in this arena.  I've been a protege of Robert Allen for several years, though lately, because of my commitment to classroom teaching, I haven't been able to take advantage of everything he offers.  I was also involved with Primerica for several years and, again, due to my family commitments and my commitment to teaching, I was not able to take full advantage of the opportunities that presented themselves through Primerica.

I am open to learn and believe that I have the "vital spark" I need to be very successful in the USA (and the world) today.  I also know that learning is a team sport and I am looking for great team members to help me learn what I need to learn and to help make a positive difference for the world we live in--and for our families and ourselves.

I keep working, exploring and learning.  Anyone want to join me?

Management Consulting Considerations--Europe and USA

What are the main differences in the American and European ways of running business?

To review some of the cultural differences that impact businesses, look at these two websites:
http://www.geert-hofstede.com/hofstede_united_states.shtml

http://www.geert-hofstede.com/hofstede_netherlands.shtml  

These websites provide profiles of the cultures of the United States and of The Netherlands—as an example of Europe. The differences between these two cultures are reflected in the ways of doing business in each culture.

Aside from the cultural differences identified by Hofstede, there are basic differences recognized by the formulation of the European Union. American businesses in the USA share a common language, operate under the same federal laws and regulations—though they are also influenced by state laws and regulations. Their employees largely come from the United States or face one set of immigration and “right to work” laws from the USA. Global firms operating in the USA have the basic regulations of the USA, coupled with the requirements they must meet to operate in each of the different multinational locations they are organized in. In Europe, women and men may be regarded more as equals than is prevalent in the USA. In Europe, multiple languages, cultures, and currencies impact businesses and business consulting.

There are different sizes of business which are looking for consulting and some of their decisions on which consulting firms to engage are based on their comfort zones. In the USA, many of the largest consulting firms with 60,000 plus consultants targeted Information Technology (IT) and added strategy and human resources consulting on top of the IT business. To some extent that is also true in Europe. One major area of difference is that many European firms are more aware of the interconnected nature of change in a business and are more supportive of organized planning efforts to support that change than are some American based organizations.

What advantages could a mid-sized European-owned management consulting firm have in the American market?

What needs to be determined is your target market and fees. Firms such as Accenture and PriceWaterhouseCoopers used to have large teams of junior consultants working and reporting to senior managers or partners. Fees for those large teams were in the millions and that limited the target market to only major players in the industry. If you can target a more middle range and provide both physical presence and virtual support—a blended consulting team approach—with investment requirements (costs) that these companies can manage, that will be a significant advantage in the American market. Another goal will be to make the American market support further global expansion by how you target the market.