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Taxes When You Live In One State & Work In Another

Q: I just took a new job, but heard that it may make my tax situation a little complicated. I live in Illinois but I work full time in Indiana. Is there anything you can tell me about this?

A: Living in one state and working in another can make things complicated from an income tax standpoint. However, there are many mechanisms written into the state tax codes that ensure you don’t pay tax to more than one state on the same income. For example, reciprocal agreements between states exempt some people from filing a return. Thus, if you are a resident of Iowa, Kentucky, Michigan or Wisconsin and only have wage income from Illinois, you are not required to file a return. But what about Indiana?

Indiana and Illinois don’t have a reciprocal agreement, however, they do offer a credit for taxes paid to another state. The steps to filing are as follows:

File Your Federal Return. An individual’s Illinois return begins by using the Adjusted Gross Income (AGI) from their Federal (IRS) return. Thus, once you have your Federal return done you’ll be ready to begin your state returns.

File Your Indiana Return. As your income is earned in Indiana and you more than likely had Indiana Income Taxes withheld from your checks, it’s best to start with this return next. You will file a NONRESIDENT return for Indiana (Form IT-40PNR) and owe Indiana tax on the money you earned in that state. If you have Indiana tax withheld, that will go against your Indiana tax liability and produce a refund or an amount due, depending on how much you had withheld.

File Your Illinois Return. Since you live in Illinois you will file a full-year RESIDENT return and compute tax on your entire income (Form IL-1040). You will then complete the “Credit for Tax Paid to Another State” where you subtract what you paid to Indiana from your tentative Illinois tax liability. In theory, you should wind up not owing Illinois if you paid enough taxes to Indiana.

Now what if you live in Indiana and work in Illinois? You simply reverse the process as Indiana also offers a credit for taxes paid to another state.

By Administrator|2012-08-07T22:04:18-06:00August 7, 2012|Categories: Tax Talk|Tags: taxes when you live and work in different states, taxes when you live in two states|Comments Off

Probate & Estate Planning

The term “probate” generally refers to the court procedure for validating a will and passing ownership of property from a decedent to others. Said another way, probate is the process by which the decedents property is collected, debts and taxes are paid and the remainder is distributed to the heirs. The process is overseen by the appropriate court in each state.

While things often go smooth with the process, factors that can complicate it are the existence of minor beneficiaries, disputes among heirs, insolvency and other circumstances that necessitate formal probate. In many states, it can take a year or longer to probate an estate, even if there are no legal challenges. With that being said, it is both the cost and time of probate that make probate avoidance an important estate planning goal of many people.

There are many ways to avoid probate, either totally or in part. Listed below are some of the common mechanisms to transfer property without the necessity of a will, and therefore probate.

Gifts

Gifts made prior to the donor’s death are not subject to probate. These gifts are referred to as inter vivos (Latin for “during life”) gifts. The reason such gifts are not subject to probate is obvious: once given, the subject matter of the gift is no longer part of the decedent’s estate. In order to make a valid gift before death, all of the following elements must be present:

The intent on the part of the donor to make a present transfer
Delivery of the gift, either actual or constructive
Acceptance of the gift by the recipient

Joint Tenancies

Joint tenancy ownership is a terminable interest that terminates at death. When one joint tenant dies, the other joint tenant(s) succeed to the property without probate. But making someone else a joint tenant of property an individual owns alone, just to avoid probate, is often a bad idea. The new owner could sell his or her half-interest, or the new owner’s creditors could go after it.

Pay On Death Accounts

Pay on death accounts allow an owner to have the proceeds disbursed to a beneficiary at death. Using these accounts are the simplest way to keep assets held in bank and brokerage accounts from becoming part of an individual’s probate estate. Not all states have a POD law. However, individuals may still be able to make use of the accounts by doing business with a broker or a bank based in a state that has one on the books.

Life Insurance

The proceeds of life insurance are paid directly to the beneficiary or beneficiaries and are not subject to probate. Gifting life insurance is a popular way of transferring wealth without significant tax implication. The gift tax is assessed on the value of the policy at the time of transfer (not on its cash value at the time of the insured’s death). To be an effective gift for tax purposes, the policy must be given away at least three years before the donor’s death.

Trusts

Trusts are a flexible mechanism for transferring property either before or after an individual’s death and avoiding probate. A trust may be created during the life of the donor or at the death of the donor. A trust can be either revocable (on which case the trustor is free to change their mind and retrieve the property within the trust) or irrevocable. Virtually anything can be the subject of a trust. The only significant limitation is that a trust cannot be used for an illegal purpose or to support an illegal activity.

By Administrator|2012-07-31T22:48:51-06:00July 31, 2012|Categories: Accounting Talk|Tags: estate planning, probate planning, what is probate|Comments Off

200+ Miles & 4 States on A Bicycle

Every since I first hopped on a bike, I knew that it would be a long love affair. There is just something about the feeling you get when you know that the machine you are riding is 100% powered by your efforts. That feeling of the wind in your face when you go down a hill. That feeling that is as close as you’re ever going to get to flight without jumping out of a plane.

Many of you know that I race for xXx Racing – AthletiCo when I am not being daddy or handling client finances. This team was founded back in 1999 when a group of messengers decided that it would be cool to try their hands at some sanctioned racing. One of the founding fathers was a guy by the name of Eric Sprattling. Eric was known for being a pretty good distance rider and one of the things he would do as part of his training would be to ride to the three surrounding states in our area.

Well, Eric passed away in 1999 after he suffered a brain aneurysm near the conclusion of a race. In 2010, our coach began an annual 3 states ride in Eric’s memory. 2011 was the first time I participated and while it was hard (145 miles and 8 hours), it was one of the most rewarding experiences I’ve had on the bike. A few weeks back I got this hair-brained idea of what it would be like to ride the 4 states in our area. That’s right – what would it be like to ride Illinois, Indiana, Michigan and Wisconsin all in one day? Well, read on to find out!

The day was scheduled to be relatively calm from a wind standpoint and the temps were projected to get up to about 87 degrees. From a rider standpoint, this is about as good as it gets during the summer, especially considering that we’ve been well into the upper 90’s for the past few weeks. The route out to Michigan has some pretty high speed sections (45+ MPH speed limit) so I decided that it would be the portion I would ride first. Given that I was starting at 5AM, I hoped that this would help me avoid some of the heavy traffic that would surely start as people began to get started on their days.

4AM comes after about 6 hours of sleep and I begin with a big breakfast and a final load up of all the gear I would have. I’d have my usual tools to fix anything major that would go wrong on the bike, but I would also carry a few extras along with an extra water bottle. I’m out the door at 5:15AM and it’s a quick 7 miles before I hit my second state of Indiana. The sun is just starting to come up as you can see in this picture.

After my quick photo op I get rolling again and press on through the oil facilities of Whiting IN and in about an hours time I hit Gary. Things are going okay and I am eating and drinking regularly to keep the engine room stoked. I’m cruising along at an average of 19 MPH which is just what I am hoping for. Once I leave Gary I hit US 12 which would take me through the Indiana Dunes, some more industrial areas and then through the Dunes Park. The tree cover was excellent (which helped as the sun continued to ascend) and the only real hiccup came when I was supposed to take a route known as the Calumet trail. Well, turns out this bike path is made of gravel and is more suited for mountain bikes than my skinny tired steed. Needless to say, I just rerouted to US 12 and about 3 hours after I started I hit my third state, Michigan.

The route to Michiana MI takes you up a road called Lake Shore Drive. The road itself is pretty picturesque with hillside villas on one side and beachfront property and the shoreline on the other. On my cruise up this road at 8AM, people were out running, biking and just enjoying the outdoors. All of them had smiles and waves for me as I plodded along the rolling shoreline. Kind of reminds you of those seaside drives of the coast doesn’t it?

The ride back to Illinois was pretty uneventful with the exception of how I felt at mile 70. Typically I can do 100 miles without too much “discomfort” but for some reason I was starting to feel a little bothered on the bike. The plan was for me to stop back at the house (mile 100) for a quick pasta lunch and refuel before I pushed north for the 4^th state. Thus, I just told myself to just make it home and I’d be okay. The key to completing a ride of this length, at least for me, was to break it into small segments in which I could get a victory. After a while, your body is going to just hurt no matter what, but it’s your mind that will make you stop and quit.

After a 30 minute rest and some lunch I pushed north up the bike path on the lakefront and headed into the burbs to play in our teams usual training grounds. Well, this is where the ride “started” to get hard for me. No matter how much I ate and drank, my power levels slowly started to come down as time progressed. I would take a break every hour or so, which recharged me to an extent, but it was getting really hard to convince myself that I was going to make it back home. Well, after 160 miles and 9 hours of riding, I finally got to my 4^th state!

Well, this served as one of my milestones and gave me a little encouragement that I might be able to pull off the secondary goal – 200+ miles if I rode all the way home. I stopped at a Subway close to the WI boarder (really wanted to eat cheese curds at Culvers, but figured it would make me sick) and had me some dinner and a quick 20 minute rest. With the exception of breakfast and lunch, most of what I ate that day was “junk food” whose purpose was simply to give me the most calories for what I could carry on the bike. Thus, it felt really good to eat some real food before heading home.

The ride home was slow, painful and involved me really considering hopping the first train back to the city that I could find. I probably stopped at least 4 times over the 59 mile route, but after the last one (which was just 7 miles from my house) and a text from a teammate who was checking in on me (thanks Diddy), I found the wherewithal to power home and get ‘er done.

So what was the final tally of this insane ride? Let’s see:

4 states covered
15+ townships/cities visited
214 miles ridden in 12 hours 18 minutes
7,179 calories burned
8 liters of fluid (Gatorade included), 3 honey buns, 1 powerbar, 1 pack of cakesters, 1 lbs of orzo pasta, 1 subway veggie sandwich, and 2 fruit pies all consumed post breakfast
One mega suntan
Zero flats!

All in all, I was very happy to pull this ride off. It wasn’t easy by any measure, but then again, that was part of the reason I did it. A part of me gets a great deal of satisfaction of pushing myself into new realms. What some may consider insane is what I consider proving that you can do whatever you want in this world, so long as you put your mind to it. Would I do this ride again? Yes (I can’t say that I felt this way immediately upon finishing) but it will probably be quite some time from now.

If you’ve ever seen my helmet after a ride, you’ll affirm that the straps are usually covered in salt. This last pic doesn’t do my jersey justice, but let’s just say that salt was fully embedded into every fabric of it’s being.

And lastly to Eric – Kyle says that you would have thought I was crazy for doing such a ride. But then again, he said you would have been right there along side me pushing me on. Well, I hope I made you proud sir and thanks for the inspiration!

By Administrator|2024-09-17T19:09:24-06:00July 29, 2012|Categories: Who's The Boss?|Tags: 200 mile bike ride, 200+ Miles & 4 States on A Bicycle, 4 states ride, bicycle racing, black cyclist, cycling four states, cycling to illinois indiana michigan and wisconsin, Eric Sprattling 3 States Memorial Ride, Eric Sprattling xXx Racing, four states at once, Jared Rogers 4 states ride, Jared Rogers xXx Racing, xXx Racing|Comments Off

Health & Finances

Q: I have a small child and over the past few years my employer has really increased the amount their employees pay towards their health care cost. It’s getting to the point that it’s making my finances tight. Is there anything I can do to save on health care cost or should I just look for an employer with better health care benefits?

A: Medical cost can certainly put a pinch on your finances. However, there are several actions that you can take to try to keep things in line. The following are a few ideas to help you survive these rocky times:

Participate in a Flexible Spending Account. A flexible spending account (FSA) is a tax-advantaged savings account set up through one’s employer. It allows an employee to deduct an amount per family from their paycheck pre-tax and then spend it on qualified medical expenses. By deducting the money pre-tax, it is not subject to payroll tax, thus decreasing the amount of tax one has to pay on their income. This could reduce your income tax bill come tax time and result in a greater refund. The drawback to FSA’s is that the money must be spent within the plan year. Any money left unspent at the end of the year is forfeited; this is known as the “use it or lose it” provision.

Prior to the enactment of the Patient Protection and Affordable Care Act, the Internal Revenue Service permitted employers to enact any maximum annual election for their employees. The Act amended Section 125 such that FSAs may not allow employees to choose an annual election in excess of a limit determined by the IRS. The annual limit will be $2,500 for the first plan year beginning after December 31, 2012.

Review your coverage options. HMO or PPO? Premier level or standard level of coverage? Higher deductible or lower one? All of these questions should be reviewed annually to ensure that your health care coverage properly aligns with your current health status and budget. If you know you’re health is failing in a particular year you may want to contribute to a FSA, go with a PPO and pay the lower deductible for the next year if you foresee your problem continuing. In relatively good health and only plan on seeing the doctor for your annual physical? Increase the deductible, only fund the FSA with the cost of that visit and watch your health care cost fall that year. While these are condensed versions of what can be done, the benefits specialist of your HR department can help you review your options and make an accurate decision.

Get those routine check ups. When we’re younger, we often “hope” that whatever is wrong with us will just magically fix itself. Bad idea when it comes to your health as time may be of the essence when it comes to certain ailments. Ignoring a problem will not typically make it better; in fact it will almost always have the opposite effect. For example, Mr. Rogers often recants how he didn’t recall seeing a dentist any of the four years while he was away in college. Result? Two root canals, several treatments for periodontal disease, several “new” cavities and broken fillings and about $4,000 in dental cost that mostly had to be paid out of pocket because he exceeded the annual plan coverage amount. Thus, make it a point to go to the doctor/dentist at least annually and get your check up, as preventative maintenance is much less costly then fixing a major problem.

Live a healthy lifestyle. Healthy eating decisions, routine exercise and living a balanced life can help to significantly reduce health cost, stress and your overall living expenses. For example, “brown bagging it” for lunch can reduce your monthly budget and put you in control of healthier eating options. Mc Chicken sandwich or homemade tuna sandwich with a teaspoon of salad dressing and some relish? Cost wise they are about the same but the tuna sandwich is lower in sodium, fat and calories. Walking the last few blocks to the job versus taking the bus can reduce your weight and increase the efficiency of your cardio vascular system, which can in turn reduce stress and high blood pressure.

All of the above, when combine with the previous three options, can lead to decreased health care cost, less frequent doctors visits and a better state of health in general. But if your employer keeps raising cost at an unbearable rate, you might have to take these tactics to a new employer with better benefits and coverage.

By Administrator|2012-07-24T20:42:44-06:00July 24, 2012|Categories: Accounting Talk|Tags: health and finances|Comments Off

Budgeting Basics for Small Business

When it comes to business financials, most entrepreneurs would rather focus on building their business than looking at pages of numbers. The truth be told, it’s not essentially for a small business to have a budget. Hey, how many people do you know who don’t balance their bank accounts?

However, the reality is that every small business owner can benefit from preparing an annual budget. Firstly, there may come a day when you need to apply for a bank loan, buy a new piece of machinery or expand your locations. It’s good to have a budget in place now than to have to pull one together when one of these events occurs. Secondly, a budget isn’t about predicting your future but instead crafting it. When you put your goals to paper a funny thing often happens; you achieve them!

What Is A Budget?

Simply put, a budget is a financial road map for your organizations performance. While the process can be quite complicated large organizations, smaller companies tend to focus on two basic budgets: operations and cash. While the budgets focus on two slightly different things, they will both typically cover a one year time frame.

Operating Budget

How much revenue will you generate next year? How much will you spend on marketing? Will you make a profit during the Summer months? These are questions that are usually answered once the operating budget is complete. The goal of this budget is to provide the blueprint for how the business is going to operate in the coming year. As a result, it typically relies on information from functional areas such as sales, marketing, distribution and customer service. At the end of the process one should have an income statement that shows how much profit the business expects to make at the end of the year.

Cash Budget

Unlike the operating budget, the cash budget is a little more of a financial exercise as its purpose is strictly financial. What we mean by that is that it’s designed to ensure that the business has enough cash to fund its activities throughout the year. Emerging and growing companies often find themselves strapped for cash even though sales are increasing and they are profitable. The goal of the cash budget is to ensure that you don’t run out of cash, especially at an inopportune time (like when you need to load up inventories for the next quarter).

How To Budget

Budgeting doesn’t have to require a trip to your accountant or the use of fancy software. With a little time, commitment and thought any small business owner can prepare a useful budget. As the operating budget is probably the most used and easily understood of the two budgets, here are 6 tips on how to go about preparing it:

1) Review prior period data.

If you’ve been in business for a while, take a look back at your past performance. If possible, review your results for the past two or three years. Unless you are starting a new business or developing a new product, this will be the best indication of what’s going to happen in the next year.

2) Develop reasonable assumptions.

After reviewing the data, develop some assumptions about the future. What will sales growth be? Is the market for your products or services expanding? How effective will your marketing program be? What will your competitors do? Most business owners have strong sense of intuition about these things so listen to it and then incorporate it into your plan.

3) Determine expected revenues.

Use your historical data and assumptions to make sales projections. Some companies establish a target that is realistic and attainable while others prefer a “stretch” budget that will be difficult, but not impossible, to achieve. Expected revenues should include not only the number of products you expect to sell, but also at what price you will sell. If you plan to increase the price, do you expect customers to continue to buy at the higher price, or will sales decrease by some degree?

4) Calculate the expected cost of goods sold.

When calculating the cost of goods sold, be sure to include all direct and indirect costs: material, labor, packaging, storage, etc.

5) Calculate expected operating expenses.

This includes fixed costs such as rent, salaries, utilities, office supplies, etc. Your bank and credit card statements will have most of these items in it, which should make your job easier. Just don’t forget to include things like price escalations and increases (e.g. rent, property taxes, etc) otherwise you’ll make your profit look better than it really will be.

6) Calculate expected operating income.

Subtract your expenses from your revenue and presto, there’s your operating budget!

Once your budget is complete, take some time to look it over and see if everything appears reasonable. If it doesn’t look right, go back and make adjustments where necessary. Periodically throughout the year you should revisit your numbers to see if you are on track to hit them. In bigger companies they revise their number periodically via a forecast. This isn’t necessary for the small business owner, but if you feel that things need adjusting to hit your target, feel free to take the appropriate corrective action. Remember, your budget is just a guideline for your financial operations, not a set of concrete numbers that have to be adhered to.

By Administrator|2012-07-09T14:35:39-06:00July 9, 2012|Categories: Business Talk|Tags: business budgeting, small business budget, small business budgeting|Comments Off

Women, Money & The Pay Gap

Q: My husband and I often argue over whether or not men or women are worse than one another when it comes to saving and investing. What’s your take on this?

A: Men and women both have it bad when it comes to spending money. Women will go on a shopping extravaganza and come back with bags of stuff. Men will just blow a few thousand dollars on that new motorcycle, Jet Ski, boat; you name it and not think twice. Yet, when it comes to investing, women often face significant inequalities when it comes to finances: they usually earn less, have shorter careers, and live longer than men.

According to the 2012 study The Simple Truth About The Gender Pay Gap, released by the American Association of University Women, the average female graduate just one year out of college working full time will earn only 80% as much as their male counterparts. According to the same study, 10 years after graduation 23% of the women who had children were out of the work force, while 17% worked part-time. Those same stats for men with children were only 1% and 2%, respectively.

According to the U.S. Department of Health and Human Services, women in the U.S. have a life expectancy of 80 years from birth, compared with fewer than 75 for men. That means women must save for an average of at least five years longer than men. But it also means five more years of investing – time that can be used to close the gap.

Reversing the Trend

While all the inequalities of the working world can’t be erased over night, there are some things that can be done. The first is to wake up and realize that you have to do something. Barbara Stanny, author of several books on finance for women, including Prince Charming Isn’t Coming: How Women Get Smart About Money and Secrets of Six-Figure Women offers the following advice:

“Our attitudes to money are inherited from our parents,” she says. “My father honestly believed he did not want me to worry about money. But I think he knew on some level that it was time for me to grow up.” Stanny believes strongly that taking financial responsibility is a rite of passage into adulthood. “Women, even young women, still have this dependency or believe that someone will take care of them. It’s insidious.”

Don’t be so conservative. Studies show women are more conservative investors than men, when in reality they need to be more aggressive. Taking an overly conservative approach increases the chances that inflation will erode your retirement savings. Take the extra time that longevity has given you, and don’t be afraid to invest in growth-oriented stocks. The longer you have to invest, the easier it is to ride the market’s ups and downs.

Since 1925, according to Wachovia, the chances of losing money invested for any one year has been 28%. But hold an investment for five years, and the chance you will lose money falls to 10%. More than 10 years, and it’s 3%. Over 20 years: 0%.

Get yourself a financial adviser. You don’t have to navigate your financial course alone. A good adviser will do more than just tell you how to invest; he or she will sit down with you and discuss your life’s goals and come up with a clear, sound strategy for achieving them. And, just as importantly, they can help take the fear out of finances.

A little bit can add up. You don’t have to have a lot of money to invest. Some mutual funds have minimum investments of as little as $50 a month. Setting aside even a small amount for your retirement on a regular basis will pay off in the future.

Stuff your 401(k). If your employer offers a retirement plan, participate as much as you can. If your company matches, try to at least invest as much as the matching limit to get the most “free money” from your boss.

Think of yourself first. Almost any parent’s instinct is to think of their children’s well-being ahead of their own. While this is laudable, it doesn’t apply to saving for retirement; you should do this before you save for your kids’ education. There are all kinds of ways to borrow money to pay for school, but no one will lend you money for your retirement.

By Administrator|2012-06-30T08:07:54-06:00June 30, 2012|Categories: Accounting Talk|Tags: money pay gap, the pay gap, women pay gap|Comments Off

Canceled Debt – Is it Taxable?

Q: My house went into foreclosure a while ago and the bank notified me that the transaction closed. I then received a Form 1099-C, but am not sure what this means. Will I have to pay taxes on the amount that was forgiven?

A: Very good question and the short answer is that it depends. Generally speaking, when a debt that you are liable for is canceled, forgiven, or discharged, you will receive a Form 1099-C (Cancellation of Debt) and must include the canceled amount in gross income. If, however, the creditor is continuing to try to collect the debt, or you meet an exclusion or exception, then you do not have cancellation of debt income.

Cancellation of debt, whether it be partially or totally, that is secured by property may occur because of a foreclosure, a repossession, a voluntary return of the property to the lender, abandonment of the property, or a principal residence loan modification. You must report any taxable amount of a cancelled debt for which you are personally liable, as ordinary income from the cancellation of debt. This is done via your Form 1040 and must be reported whether or not you receive a Form 1099-C. But what about those exclusions and exceptions mentioned above?

Canceled Debt that meets the requirements for any of the following exceptions or exclusions are not considered taxable:

Exceptions

Amounts specifically excluded from income by law such as gifts or bequests
Cancellation of certain qualified student loans
Canceled debt that if paid by a cash basis taxpayer is otherwise deductible
A qualified purchase price reduction given by a seller

Exclusions

Cancellation of qualified principal residence indebtedness
Debt canceled in a Title 11 bankruptcy case
Debt canceled during insolvency
Cancellation of qualified farm indebtedness
Cancellation of qualified real property business indebtedness

The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. This exclusion for “qualified principal residence indebtedness,” provides canceled debt tax relief for debt forgiven during calendar years 2007 through 2012. It allows taxpayers to exclude up to $2,000,000 ($1,000,000 if married filing separately) of “qualified principal residence indebtedness” which is:

Any mortgage taken out to buy, build or substantially improve your main home
Is secured by your main home
Any debt secured by your main home that you took out to buy, build or substantially improve your main home (but only up to the amount of the old mortgage principal just before refinancing).

Generally, if you exclude canceled debt from income under one of the exclusions listed above, you must also reduce your tax attributes in the asset by the amount excluded. You must file Form 982 (Reduction of Tax Attributes Due to Discharge of Indebtedness) to report the exclusion and the corresponding reduction of certain tax attributes.

Point of Caution

If your debt is secured by property AND that property is taken by the lender in full or partial satisfaction of your debt, you will be treated as having sold that property. This may result in a reportable gain or loss. The gain or loss on such a “deemed sale” of your property is a separate issue from whether any canceled debt also associated with that same property is includable in gross income. Make sure to discuss this potential transaction with your tax professional or see IRS Publication 544 (Sales and Other Dispositions of Assets), for detailed information on reporting the gain or loss.

By Administrator|2012-06-28T13:57:47-06:00June 28, 2012|Categories: Tax Talk|Tags: canceled debt, canceled debt income, is canceled debt income taxable|Comments Off

What It Means To Be A Father

It’s been a while since I’ve penned a note about myself, but with today being Father’s Day, I figured today would be a good time. On my walk back to my car from a client call this morning, I had some time to think about what it means to be a father. I’m very fortunate to have this job in addition to the other roles I play in life. It’s one of the most rewarding, challenging, nerve wracking yet joyful jobs that I’ve ever had. This got me to thinking about its importance.

My sister and I were fortunate enough to have both our parents in our lives. My dad was a hard working guy who always made sure we had a roof over our head and my mom made sure we always had clothes on our back. Together they kept us in line, encouraged us, shuttled us to and from games and held us accountable for everything we did. During my high school years, it was this last point that made the world as I knew it pretty difficult.

My parents were old school. You know, the kind that made you come home when the street lights came on. The kind that wouldn’t let you go outside unless you showed them that your homework was done. The kind that didn’t give you an allowance, but taught you the importance of earning it. To say they were strict would probably be an accurate observation! But to say that they didn’t care would be an injustice.

During high school, all I wanted to do was escape to college. I remember applying to the University of Miami just for the sole purpose of getting as far away from Chicago as I possibly could. Too bad (and thankfully) it was way too expensive for me to attend despite being accepted. But in all honesty, I really didn’t want to be close to home because I wanted to be “free” of all the rules and regulations that I felt had stifled me.

Well, many years later and having started a family of my own, I now “truly” understand what my parents (specifically my father) were doing. They were doing their job! The role of a parent in the wild is to protect their young until they can fend for themselves. Their job isn’t to be liked all the time. Their job isn’t to tell you what you want to hear. Their job is to teach you what they know so that you don’t get yourself into trouble. And if you do find yourself in a spot of bother? Hopefully they’ve given you some tools so you can try and get yourself out of that jam.

I’d like to think that in the years following my return from college, my father and I have grown closer. I don’t necessarily see him as the guy who told me what to do, but more so as they guy who tried to advise me. I don’t see him as the man who tried to rule my life, but as the man who tried to guide me in the right direction. And now he gets another job – that of Papa or the guy whom my little one loves to hang out with when we go and visit their home in Michigan.

So today, I’d like to say “thank you” to the man who was always there in my life. The guy who always told me he loved me and that he thought I was the greatest guy in the world. To the man who taught me through his actions that life is hard, but you never quit no matter how high the chips are stacked against you. To the guy who taught me that all a man has is his word and his reputation. To the guy who always supported me, stood by my side and gave me a role model to try to emulate.

I’ve always tried to do what my dad said because in the end, I really looked up to him. For every time he said “you make me proud to have a son like you” I wish I could have responded “but I’m more proud to have a father like you.” Now as I try to raise my own child up into a responsible member of society, I can only hope that I do half as good a job as he did. Happy Father’s Day Dad!

By Administrator|2024-09-17T16:55:13-06:00June 17, 2012|Categories: Who's The Boss?|Tags: being a good father, good black men, what it means to be a father|Comments Off

Small Business Marketing 101

While we are a financial services firm, we often times run across business topics that we feel are noteworthy. So while we are not marketing experts, we’ve seen many companies make similar mistakes when it comes to their marketing. Now we’re not talking about logo design, twitter handles or even ill timed marketing campaigns. We’re talking about the fundamentals – the basics that often get overlooked or simply reprioritized to the bottom of the list. Well, this post will look at a few things that every new or would-be business owner should contemplate before they take that leap.

Nothing happens without sales. If this is the first rule of business then the second is this – if you want to go out of business, stop marketing. For those who’ve worked in Corporate America, it may now resonate with you why the Sales and Marketing functions typically have the biggest budgets. We know that it’s not the aim of a new business owner to shutter its doors, but unintentionally this is the result of the marketing approach new owners take. You see, marketing is an essential and integral part of business success. Unfortunately, most owners don’t adequately fund or plan their marketing and as a result, it is done as an afterthought. Therefore, set your enterprise up for success and make marketing a priority.

Quality, Honesty and Integrity. These three items are the cornerstones of all marketing. Firstly, you must sell a quality product or service that will inspire customers to not only purchase it again, but spread the word to their friends. Concurrently, the business must ensure that its marketing is built on honesty and integrity. Companies built to last have a strong ethical foundation and honest marketing practices. Thus, if you market in this manner and sell a quality product, you’ve laid the ground work to capture the Holy Grail – an impeccable reputation!

Marketing is a philosophy. Unfortunately, too many individuals view marketing as slick campaigns, buzzwords, advertising and the like. The reality is marketing is a philosophy and the above items are only components to execute that philosophy. Marketing is everything a company is and does. A company’s ethics, culture, work environment, hiring practices, attention to quality and customer service all affect and are affected by marketing. Some companies spend tons of money on and attention to logos and advertising, ignoring the damage done by unethical behavior. The point? It’s important to realize just how integrated marketing really is or you’ll find yourself wasting marketing dollars while other things derail your efforts.

Build it and they will come. The simple step of moving out of your home will not solely result in increased sales. The only thing you’ve done is made it easier for those selling their products and services to find you! In order to generate “street traffic” you have to initiate some form of marketing so customers know why they should stop and visit YOU vs. your competition. “But my signage tells what I offer so I’ll be fine.” Really? Try this exercise the next time you’re out. Pick an obscure product (bike tubes, hammer, flyer printing, bug spray) and then visit an area you think will have a store that will offer it. Don’t look up the store on the internet, we want you to drive/bike/walk around looking at signage and see how easy it is to find. The point is this; even with a highly visible location it’s EXTREMELY hard for potential customers to “see” you. The only way to ensure that the do, is to market to them.

Relationships matter. Most people don’t think of this when they do their marketing. However, the reality is this; marketing intersects in many different ways with relationships. People do business with those that they know, like and trust. Do you go back to the store with the clerk with the nasty demeanor? Or how about that restaurant with the hostess who was indifferent when you arrived? Your ability to strengthen human relationships through marketing will determine the success of your business. However, befriending every person within 10 miles of your business is not the answer. What you have to do is figure a way to infuse paying attention to your customers and what matters to them with the marketing tactics your organization employs. If you can do that, you’ll create a following of customers who’ll want to do business with you time and time again. And that my friend is what we all want!

By Administrator|2012-06-09T20:33:04-06:00June 9, 2012|Categories: Business Talk|Tags: small business marketing, small business marketing ideas|Comments Off

How To Save On Gasoline

Q: Gasoline prices seem like they have a mind of their own these days. Other than giving up my car, is there anything that I can realistically do to try to save on gas?

A: The rise in gasoline prices is really putting a hurting on the economy and the average American’s pocket book. Years ago General Motors converted their factories that made large rear well drive cars into places that would make nothing but trucks because the SUV market was the next “big” thing. Ask GM how many Denali’s they are selling now and they would probably tell you that they can’t give them away!

So what can you do to ease the pain at the pump? Here are some tactics that can help you fill up less often and hopefully reduce the overall amount you pay for gasoline.

1. Ask yourself every time you plan to use your car, truck, SUV, or van, “Is this trip really necessary?” Every mile you drive your vehicle will cost you at least an average of 36 cents. If the trip is not necessary, think twice before using your vehicle.

2. Drive at a conservative speed on the highway. According to the U.S. Department of Energy, most automobiles get about 20 percent more miles per gallon on the highway at 55 miles per hour than they do at 70 miles per hour.

3. Decrease the number of short trips you make. Short trips drastically reduce gas mileage. If an automobile gets 20 miles per gallon in general, it may get only 4 miles per gallon on a short trip of 5 miles or less. The U. S. Department of Energy says that trips of 5 miles or less make up 15 percent of all miles driven each year, but these trips burn 30 percent of the gasoline.

4. Cut down or combine the number of shopping trips you make. Try to plan your shopping so that you can run all of your errands in fewer trips. Driving to run errands many times a week can become very expensive. So if possible, try to run necessary errands on your way to and from work or get them out of the way during your lunch break by walking to nearby stores, the library, and other places.

5. Don’t drive all the way across town to save five cents on an item. As pointed out above, ” it costs an average of at least 36 cents a mile to own and operate an automobile.” If you drive 10 miles, it will cost you $3.60 or more.

6. Turn off your engine if you stop for more than one minute (this does not apply if you are in traffic). Restarting the automobile will use less gasoline than idling for more than one minute. Also, don’t wait until you unbuckle your seat belt, turn off the lights, turn off the air-conditioner, and gather items from the seat to take with you, etc. before you turn off the engine when you finally arrive at your destination. When you turn off the ignition, your gasoline costs stop.

7. Run your automobile air-conditioner only when really necessary. Alternatively, use the economy vent. Running the air-conditioner results in more fuel consumption and fewer miles per gallon of gasoline.

8. If your automobile is equipped with a cruise control, use it when possible. It helps you get better gas mileage. Most automobile manufacturers recommend, however, that the cruise control not be used in heavy traffic or on wet roads for safety reasons.

9. Keep your vehicle in good working order. Have your automobile tuned-up as recommended in your owner’s manual or as needed. A poorly tuned engine could consume three to nine percent more gasoline than a well-tuned one. The tune-up will pay for itself in gasoline savings and performance. Likewise, check your tire pressure regularly and keep your wheels in good alignment. Tire pressure that is too low will increase rolling resistance and reduce gas mileage. You can lose about two percent in fuel economy for every pound of air pressure under the recommended pounds per square inch.

10. Shop around for the best price on gasoline. There could be as much as 20 cents or more per gallon difference in price at different places that sell gasoline. Also, when you do find the best deal, don’t overfill your gas tank. The gasoline draining down the side of your automobile is expensive and may also damage the finish on your car.

11. Consider purchasing a shopping card offered by such places as Wal-Mart that gives you a three cents-per-gallon discount at their pump if you use the shopping card when paying for the gasoline.

12. Vacation near home this year. Most of us fail to see and enjoy the attractions in our own city or state. Instead, we tend to drive long distances for a vacation. People hundreds or thousands of miles away from us drive to see our attractions, and we drive to see their attractions even though we haven’t seen our own nor have they seen their own. Discover some exciting things close to home this year and save hundreds of dollars in transportation costs, including gasoline.

13. Consider taking public transportation or biking to work. This city has an incredible infrastructure in place that not all cities enjoy. You can get from one side of the city to the other in about two hours via the CTA, RTA or Metra. If you bike around this city during the summer, not only will you save on gasoline, but you can also shed a few extra pounds! All in all, think outside of the box for gas savings because it will probably get a lot worse before it ever gets better.

By Administrator|2012-05-30T23:34:34-06:00May 30, 2012|Categories: Accounting Talk|Tags: save gas money, save on gasoline|Comments Off

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