It seems like every end-of-summer brings a similar refrain, just with different details. These past few weeks, we have been “blessed” with:

Iran and nuclear weapons.

Greece, the deteriorating European Union, and signs of serious shakiness in Chinese markets. (Indeed, as I write this on Monday, the Chinese markets have dived 9 percent, and the dollar is taking a tumble too.)

Continued social upheaval at home, and on the border. Prominent public figures caught out in deception and terrible behavior.

Presidential campaign silliness, and the political chaos to which we’re all about to be subjected for the next 15+ months.

And in the middle of it all, we’re all facing our own private fears, struggles and frustrations.

So … may I (once again) remind you of a few things?

Bridges’ Key Reminder #1: What you choose to “ingest” over these next weeks 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 media intake this week, as most of those outlets are (quite literally) merchants of fear.

Bridges’ Key Reminder #2: The financial markets are driven by emotions — and by complicated algorithms that react on a hair-trigger to economic disruptions. Truly, the only thing certain about the stock market is that it’s volatile. So those of you with many assets resting there, don’t make moves out of panic. Sit down to discuss a tax-advantaged strategy … not a knee-jerk fear response.

Bridges’ Key Reminder #3: The only thing you can truly control is yourself. You can’t control the market, you can’t control our foreign affairs (unless, of course, Mr. Kerry or Obama are somehow reading this — perhaps you guys can!), 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:

Let’s take a look at how things are set up (tax wise) for you and your family for the rest of 2015. With school coming back, it is the perfect time to carve out some time to take a clear-eyed look at things, and plan for the best tax savings as absolutely possible, and other financial moves.

Call my office this week: (770) 984-8008 (or email me by clicking the button at the top of this page) and request one of our limited 2015 Tax Planning Saver Sessions. During this session, we will analyze your current situation and identify clear action steps for the last quarter of 2015 — designed to save your bottom line hundreds (or even thousands).

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

Until then…

Dennis Bridges
(770) 984-8008
E. Dennis Bridges, CPA

There was some eye­-opening news recently about student debt.

From the WSJ article:
http://on.wsj.com/1fEi4eG …

… As of July, 6.9 million Americans with student loans hadn’t sent a payment to the government in at least 360 days, quarterly data from the Education Department showed this past week. That was up 6%, or 400,000 borrowers, from a year earlier. [my emphasis]

That translates into about 17% of all borrowers with federal loans being severely delinquent, a share that would be even higher if borrowers currently in school who aren’t yet required to repay were excluded…

This will continue to be a spiraling problem, and there are few very good solutions on the horizon — at least as far as the system itself is concerned.

Families, on the other hand, can be wiser about how they approach finances that surround college. Because it’s not just tuition we’re talking about — often the kicker can be all of the ancillary expenses for the life of a college student.

So, if you care at all about the future financial health of your college student child or friend … do them a favor and share this with them.

Bridges On Real World College Expenses
“From what we get, we can make a living; what we give, however, makes a life.” – Arthur Ashe

It’s natural to be nervous about starting school. Many students quite understandably worry they’re biting off more than they could chew.

But the main problem that many in this generation are finding is that much of the worry about the college experience itself — classes, social life, housing, etc. — are dwarfed after the fact, by big money mistakes that haunt college students for years.

If only many students were asked to consider their college expenses in light of these principles more heavily…

Who is actually paying for college?
Many have their undergraduate education paid for by parents, scholarships, and/or loans in their name (or their parents’). If your parents are paying for your education, be careful not to fail any courses! If you fail a class required for your degree, you will have to take that class again, paying for it twice. It’s not worth it, particularly since it’s usually difficult to outright fail a class.

Paying for college yourself supposedly gives you ownership of your academic decisions while in school, but if you’re in a situation where you don’t have to worry about affording your own tuition, then consider yourself lucky.

There are oceans of articles now about ensuring you aren’t taking out monster loans for a degree with no real value.
Just google “anthropology major” and “student debt” and you’ll see what I mean. Carefully consider that college is much more than simply training wheels for the “real world”. The decisions you make about your course of study do, in fact, have ramifications for the first few years out of school and can set a course.

The good news, of course, is that when you ask many adults whether their career has been determined by their degree, they will tell you “no”; you aren’t absolutely limited by your choices. However, it DOES play strongly into your initial post-college years, and these years DO have a big impact on your eventual career path.

But remember that nothing in life is final. Just don’t go into $200K of debt for something which you may later regret, if you can help it.

Open a Roth IRA.
These retirement accounts were brought into existence about 20 years ago in 1997. And if students before that point had had a way that they could put money away for retirement in a tax-advantaged account while they were in such a low tax bracket, they might have taken advantage of the opportunity.

Then again, they might not have. It’s hard to imagine retirement before you’ve officially begun a career, but it’s harder to argue with long-term investing in the stock market — even in these times of economic uncertainty. Many have interests aside from investing, so they don’t particularly think about having a secure financial future. I’m not going to go on and on about the power of compound interest here, but suffice to say — it’s incredible when you get it started in college.

Avoid credit cards.
The credit card companies are (still) vultures on college campuses. And having a credit card without a job is asking for trouble.

One particularly sneaky aspect of college-geared credit cards is the introductory offer. Even with the recently-passed CARD Act, the fine print on these deals are heavily weighted AGAINST the college student, and (of course) in favor of the banks.

Further, here are some other quick pieces of advice for the soon-to-be financially-savvy student:

* Use credit cards sparingly
* Pay all credit card balances in full
* Get the best deal on a checking account
* Start saving
* Keep track of your spending
* Set a limit on entertainment
* Shop at second-hand stores
* Keep an eye out for free money
* Get a part-time job with tips
* Walk or ride a bike — don’t drive
* Avoid the tax on stupidity
* Look for student discounts
* Don’t eat out all the time

Had I known what I know now about compounding interest and the tendency for the stock market to increase over time — not just theoretically but from experience — I’d be in an even better financial position right now. And so would you, I’d imagine.

After all, let’s remember this: it’s not about having more money, it’s about having more options for doing the things to which we are called, and which we enjoy doing.

And that kind of thinking is best served while young.

Warmly (and until next week),

Dennis Bridges
(770) 984-8008
E. Dennis Bridges, CPA

We’re almost done with August (!), and the school season is already starting in many areas where we serve our clients. This summer has absolutely FLOWN by — and those of us who pay attention to politics are all probably eagerly looking forward to being done with the Presidential election cycle (which is still more than a year out!).

But in the shorter term, we’ll start seeing Congressional action on a whole slew of financial and tax-related items come fall.

Because as usual, there will be a variety of tax credits going bye-bye on January 1, 2016. And provisions that affect regular families are always a big part of this conversation. On top of this, with the economy still sputtering, continued chaos at home, in Greece, China and the Middle East … well, it can be a little hairy out there.

Which is why it’s so important for you to maintain your peace in the midst of it all.

Look — it’s no mystery, probably, why I choose to write so often about maintaining the proper perspective. We see clients in here regularly, and you probably wouldn’t believe how often we have the same kinds of conversations. Finances touch a deep place of security (and fear) for so many, NO MATTER how much is in the bank accounts.

From the very well-off, to those deep in debt … everyone can pick and choose their poison these days, when it comes to fear.

I often play the role of counselor, in addition to helping folks navigate their way through tax and financial decisions. Because families and individuals can make rash decisions in times of perceived crisis — and they often have unforeseen wealth complications that stem from those decisions down the road.

Which is why it’s critical that we take a look at how things are set up (tax wise) for you and your family for the rest of 2015. With school coming back, it is the perfect time to take a clear-eyed look at things, and plan for the best way to save as much as absolutely possible.

Call my office this week: (770) 984-8008 (or email me by clicking the button at the top of this page) and request one of our limited 2015 Tax Planning Saver Sessions. During this session, we will analyze your current situation and identify clear action steps for the last quarter of 2015 — designed to save your bottom line hundreds (or even thousands).

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

Until then…

Dennis Bridges
(770) 984-8008
E. Dennis Bridges, CPA

There is a bit of a flood of recent tax-related news that I’d normally dispense with in the opening remarks of my Note here … but it’s weighty enough (and possibly could affect you), that I wanted to take a little more time for explanation of each.

But maybe the bigger news is this: NFL football is back on the air. (This past Sunday night, the first pre-season game was aired.)

Well, perhaps that is a mere shrug of the shoulders for many, but regardless of how we feel about it, what it DOES signify is that summer is headed towards a close. Soon, Saturdays and Sundays will be full of tailgates and (in most cities where I have clients) autumn colors. Many children are already back in school across the country, and Labor Day is hurtling towards us.

Around here, we’re investing ourselves in continuing education so that we can take advantage of every available (and ethical) tax move on behalf of our clients, and gearing up for what already promises to be a very full final quarter with our client family.

Thanks again for your trust, and for allowing us to stay connected as we have. It means a great deal.

Now … to the tax stuff: We’ve got scams, deadlines and audits. Yum.

Dennis Bridges’ Three Tax Updates To Know Right Now
“It is not a daily increase, but a daily decrease. Hack away at the inessentials.” – Bruce Lee

I’ll start with the one that could potentially impact all of my clients:

1) Tax Scammers Getting Smarter (And Scammier)
Because we’ve all gotten smarter about phishing emails and such, it is becoming much more common for the scammers to try two “new” (but very old) approaches: phone and mail.

Talk about the IRS phone impersonation scam started exactly two years ago, but now the Treasury Department is calling it “the largest, most pervasive impersonation scam in history” (at least as far as the Treasury Dept. is concerned).

Recent reports (see: http://bit.ly/1DHIVSs) are also saying that taxpayers are receiving MAIL that looks like it came from the IRS. This has been a topic of conversation among tax professionals at the IRS Tax Professional Forums all summer.

So: some rules of thumb about getting contacted by the IRS…

* Real correspondence (by phone or mail) will NEVER demand that you send payment by a specific format. Pre-paid debit cards seems to be the flavor of the month for scammers, so make sure you know that.

* ALWAYS check with a tax professional if you are contacted by the IRS about any kind of “overdue” tax. We will help you to navigate through whether or not it is of legitimate concern. And the better news: if it is, we can help you get it sorted right.

2) Deadline Changes
Switching gears now, from scams to legitimate tax law changes for you to be aware of: For some reason, Congress just loves to cram things into highway spending bills.

That’s exactly what happened with these two updates. H.R. 3236, popularly known as “The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015” (yes, that’s how these things are named) brought some tax-law-related changes.

Regular tax returns are still due on April 15th — and a six month extension period is still available. But …

* Partnership tax returns are due March 15, NOT April 15 as in the past. If your partnership isn’t on a calendar year, the return is due on the 15th day of the third month following the close of your tax year.

* C corporation tax returns are due April 15, NOT March 15. For non-calendar years, it is due on the 15th day of the fourth month following the close of the tax year.

* S corporation tax returns remain unchanged–they are still due March 15, or the third month following the close of the taxable year.

3) IRS Now May Have Six Years To Audit (Instead Of Three)
Taxes are complex enough as they are without having to worry about whether or not you did them correctly. (Which, of course, is just one reason why it pays to use a pro.)

The general rule of thumb is that the IRS usually has three years to audit you.

But crammed into that same highway bill referenced above was a move by Congress intended to clarify some language that the Supreme Court had used to justify a shorter limitation time. Now, essentially, if you withhold reporting of 25% or more of your income, the IRS has six years to figure it out.

They often do.

These three tax updates (and, of course, many more) are just more bricks in the wall for why it’s important to use a professional that you know, like, and trust.

Can you think of who that might be? 😉

Warmly (and until next week),

Dennis Bridges
(770) 984-8008
E. Dennis Bridges, CPA

I hope you are doing well.

I have some thoughts for you today that may be a little bit of a mental (or emotional) stretch.

You see, when I write about financial principles in these Notes that I post, I do so recognizing that my clients come from a wide variety of different attitudes, circumstances and means.

It makes for a tricky proposition, because I want to both meet people where they are, but also call them to a higher place when it comes to how they think about finances. Many of my clients (probably you among them) are already in that place where they “get” much of what I write about as it relates to debt, avoiding taxes, and other basic financial strategies.

But sometimes there are “non-financial” decisions we’ve made or attitudes we’ve fostered that creep into how well we are able to do with our careers, our finances, or even our families.

I think we could all benefit from thinking a little larger and playing a bigger game. This might be a bit controversial, but I do hope that it challenges you where it should … I know it does so for me.

Dennis Bridges on Why the DIY Ethic Can Hold Us Back
“The answers you seek never come when the mind is busy, they come when the mind is still, when silence speaks loudest.” – Leon Brown

I’m not as handy as I’d like to be around the house.

In fact, I only recently learned how to plug in a hammer. (Ba-dum-bum, ching.)

But I’ve embraced my limited ways, and have learned to see why this “deficiency” enables me to think bigger, and grow wealth for my family.

Look, admit that most things out there, you simply cannot do (with apologies to the very “handy” among us): You probably aren’t going to redo the roof on your house. You likely don’t have a clue how to knock down a wall to open up the downstairs. If the toilet stops working and the plunger and Drano don’t work, you’re calling the plumber. Likewise, you pay someone to work on your car because you either don’t know how to or you’d rather have a professional do it.

But one of the common messages which even the wealthiest among us find themselves adhering to is the DIY ethic: “Do it yourself to save money.” Don’t hire a maid, don’t go out to eat, don’t pay someone to do your yard. Do it yourself and save money.

Phooey to that.

I say: “Outsource everything you can and focus on building your wealth!”

Oh, and it’s not only good for you, it’s good for the world economy. It’s called “comparative advantage” and it’s why you aren’t a landscaper. Or a plumber.

Some people have the time or the motivation to do things other people would outsource. I know plenty of men that just *like* to change their car’s oil. But I also know people too busy (and productive) to mow their own grass. So you have to decide what aspects of your life are worth outsourcing.

For fathers & mothers, there’s plenty that you perhaps *shouldn’t* outsource: raising your children, engaging with charities, loving your spouse (!). But there’s likely to be plenty of tasks which sap your energy, drain your productivity (in the home AND in your work pursuits), and can be successfully handled by an hourly earner.

Personally, I hope to make it possible that I’m so productive I have to outsource just about everything that I’d rather not do. Said differently, I want to move to the place where all I do is work on great projects, help my awesome clients, love my family well — and pay people to do just about everything else for me.

And sometimes, it’s important to make some shifts in this direction before we’re as “ready” as we’d like.

Because we then free up the space to do MORE (not less), and we can play a little bit of a bigger game.

What do you think you can move off of your plate today?

Again, I welcome your thoughts…

Warmly (and until next week),

Dennis Bridges
(770) 984-8008
E. Dennis Bridges, CPA