Let the kids be kids!

“The path to our destination is not always a straight one. We go down the wrong road, we get lost, we turn back. Maybe it doesn’t matter which road we embark on. Maybe what matters is that we embark.”
- Barbara Hall

It’s getting close to “back to school” time for most of my clients, is already here for others(!); and families everywhere are breathing collective sighs of relief (though, that isn’t at all to say that kids are a burden! Just…tiring for some, right?). The summer is wrapping up, and everybody’s schedule is about to fill up with all of those teacher meetings, etc.

Summer’s end means the end of a time of innocence of sorts for school kids. And, as we work with our family clients, we’re keenly aware that the economy’s impact on families can trickle into the hearts of our children, unless you’re quite careful about it.

So, as I’m watching this school season kick into gear, I had some thoughts for families which I thought might be useful–especially for those families who are walking through tough times.

Let me know your thoughts!

Ralf Heyer’s
“Real World” Personal Strategy
Protecting Children From Financial Hardship
When a close friend or family member loses their home, or their job (or both), it can be frightening on several levels. You begin to wonder if the same could happen to you. And, as you’re probably aware, this fear of economic uncertainty causes anxiety in many children, too.

While it is impossible to shield kids from all that goes on around them, I happen to believe money worries are one of those things we shouldn’t share with kids. There are a number of ways to do that — some very specific, and some more subtle.

Don’t Argue About Money in Front of Kids
This one seems the most obvious. When it comes to transferring anxiety over money to your children, there is no faster way than to fight over it with your partner. Asking couples not to argue over money at all is a little unrealistic, so when differences arise, at least try to do it in private and out of earshot of your kids.

Spenders and savers are bound to clash, but when they fight in front of kids they give kids something to worry about beyond Mom and Dad fighting. Will we run out of money? Is Dad losing his job? Will we have to move? Will we have money for food? Even if parents are unsure about the answers themselves, they owe it to their kids to exude confidence when it comes to money. If things really do get bad, emphasize that no matter what, you’ll all be together and that home is where you make it — wherever that may be.

Avoid These Phrases: “We Can’t Afford That” or “We’re Poor”
When kids ask to buy things, and money is tight, try to rationalize with them instead of simply saying, “we can’t afford it.” Tell kids that instead of spending money on toys this week, you need to focus on buying some basic things like food and gasoline for the car. Ask them to come along to the grocery store to help pick out a few favorites. If you simply say you can’t afford something, kids will begin to wonder what else you can’t afford, and that’s a psychological slippery slope for young minds.

In fact, I’d go so far as to say this: Don’t allow anyone in your house to use the word “poor” when describing your economic situation — even when times are pretty lean in the household. Families might be broke– but that doesn’t mean they’re poor! It’s more than semantics. The word “poor” seems to connote inferiority, or having some unfortunate circumstance. We don’t have to accept that paradigm. Sometimes, families simply spend more money than they earned and have to live on far less to turn things around. They may have been foolish, but they don’t have to be poor!

Now, let’s shift away from things not to do around kids, and focus on some positive things to teach kids to help them with their own financial futures.

Teaching Kids About Money
When I was growing up, money was taboo. Parents would no more talk about money with their children than their love life. While this is still true to an extent, I think most of us have recognized that kids need to be more aware about the potential financial pitfalls out there than we were.

Start giving kids an allowance to budget their savings, spending and giving. Help them open a savings account and begin to teach the mechanics of a bank account — completing deposit slips, balancing a checkbook and explaining how compound interest works. As kids get older, introduce them to increasingly more complicated topics like investing, borrowing money, insurance, etc. By the time they are teenagers they should have a good grasp on Personal Finance 101 topics to better prepare them for life.

Encourage Saving Over Spending
As adults, we know it is prudent to put back a sizable emergency fund of several months (I actually recommend a full year) of basic, household expenses. Because kids are not responsible for everyday expenses, it can be hard to get this message across to them. Instead of focusing on saving money for emergencies, teach kids to save money for opportunities.

Foster Entrepreneurialism in Your Kids
My parents and grandparents were probably a lot like yours — they worked 40-50 hours a week, punched a clock and recharged over the weekends. After doing this for several decades they were given a cheap retirement gift, maybe a small pension, and a retirement send-off.

Well, times have changed.

The recession has underscored the importance of developing an entrepreneurial streak at a young age. Chances are very slim that your child will graduate college, pick one job and stay there for 40 years. More likely, there will be many jobs with many employers, and many periods of being “between jobs” in their lifetime. Wouldn’t it be great if they developed a “side hustle” to get them through those periods of unemployment, or to supplement their full-time income all along?

Perhaps you enjoy building things and have turned your one-time hobby into a side hustle building decks and fences on the weekends. Get your kids involved in the process as they grow older, and perhaps you can pass along a valuable trade. Even if they become accountants or fire fighters, having the knowledge and experience of a trade to fall back on could be incredibly valuable to them over a lifetime.

The point is not to stifle your kids’ ideas by forcing them into some ideal career path you have selected for them. Allow them to cultivate their own ideas. Over the next few decades, personal branding, and the branding of individual ideas will likely be hotter than any particular industry. Think about it — iPhone apps may be the next lemonade stand!

In a way, social media, and new media, have greatly expanded the opportunities for kids to create new products, explore new ideas and push new content into the mainstream. There’s never been a better time to have an entrepreneurial mindset, and fostering that in your children at an early age is invaluable.

I’m personally dedicated to the success of your family–and to your finances, Ralf! Can other tax professionals say that?

Warmly,

Ralf Heyer

PS–If you are receiving this and are NOT a subscriber to our weekly “Real World” Personal Strategy Email series, you may go HERE to subscribe: http://ralfheyer.mylocaltaxpro.com

We buckled under

the LAST big mistake…(6 of 6)

Phew! If you’ve made it this far, well, I congratulate you. This last email is a bit longer than the rest, as I want to make you a little offer at the end of it.

But before I get to that, here’s the last big mistake…

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Big Mistake #6: Paying Too Little OR Too Much When Filing A Regular Middle Income Tax Return!
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Does that seem funny to you? Well, let me explain.

Let’s start with the one that probably surprised you: “paying too little” for filing a middle income person’s tax return. Think about it…who are the ones that are charging too little?

In our industry, we call these folks the “fly-by-night” tax preparers. Sure, they might know a few things about taxes, and they are often very nice people…but do you really want them as the ones representing you before the IRS?

Tax professionals who “low ball” on price often work out of their home or they have so few resources, that they can be working off of the prior year’s tax code! Even worse, many of these one-person shops have NOBODY checking their work to make sure they got all of the deductions you could get.

Do you want all of the money you’re due?

The second problem may be a bit more obvious: paying too much when filing a tax return?

It’s weird, but there are people in the world that brag about paying the highest price possible. And there are plenty of folks out there willing to charge it. I’m talking about $1,200, $1,500, or even $2,000 to prepare a decently simple tax return…that’s it! Do you have that kind of money just laying around?

These folks … after they write the check to the accountant for $1500 bucks or whatever, they may feel pretty good, but I bet their gut tells them something is wrong.

It’s called overpaying when you don’t have to! Getting a quality preparer with multiple guarantees backing up their work, ongoing support and year round access to a leader or manager in charge is all you need. Do you need to pay $1,500.00 or $1,800.00 dollars for that?

Actually, on most middle income returns, you can pay in the $180 to $300 range and be just fine. Some high-priced tax professionals will charge you $1,000 or $1,500 for the same forms and schedules. Or you can find a “Fast Eddie” to help you file your taxes and probably only pay $100 or less. My advice is to find a tax professional who charges by the form so he/she is not pulling fees out of thin air.

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CONCLUSION
How You, Don’t Have To Fall Prey To These Mistakes …
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I hope this email series has opened your eyes to important lessons about filing your taxes. Some of them, may be ones you already knew in your gut…you just never had them verbalized before.

Choosing the RIGHT tax professional is an investment of time and money … and I will add, a WISE INVESTMENT indeed. I say “wise” because the consequences of a misfiled tax return, an incorrect tax return or a late/penalized tax return are awful in the short and long term.

But I’ll tell you a bigger problem.

I mentioned this before…Unclaimed refund money taxpayers never receive because they had no idea they were entitled to a certain deduction or they never filled out a particular form that automatically got them more money or ……… (the list is endless!)

Statistically speaking, you could be out as much as $1,300.00 in back refund money because you choose to file by yourself or with someone that doesn’t pay attention. (Ouch!)

I wouldn’t take that chance. I’d choose a quality tax professional this year and ask to let them review your previous 3 years of tax returns at the same time. You might have some “buried treasure” lying around in your files and never know it. Wouldn’t that be a scream! (Caribbean Vacation, here we come ….)

Take Action Now,… Before The Deadline!

The clock IS ticking. Most taxpayers procrastinate. I hope you are not one of them… If you’ve made it through this email series, we’d like to give you a special incentive to have your taxes done right. Email me back, or call our office and ask about the “Email Series Client Gift” when you make an appointment, and you’re gonna watch your worries melt away! All these mistakes that regular folks make…well, they won’t happen to you!

Best Wishes and Happy Filing!

Ralf Heyer
Heyer & Associates EA, PA

PHONE: (786) 693-9358

PS–And don’t worry…we will remain in touch! I know you may have gotten “addicted” to these emails (it’s happened before). But I’ll send you other information from time-to-time, in the future…

second-to-last mistake (5 of 6)…

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Big Mistake #5: “Falling Back” on a National Brand Name, Just Because That’s The Only Option You’ve Heard Of!
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I’m not going to name names here. But, just about everyone has heard of these brand name tax firms right down the block in most cities and small towns. They spend millions of dollars every tax season on “getting their name out” ad campaigns just so you will think of them when it comes time to file your taxes.

The problem is, a “brand name” never prepared anyone’s taxes – people do! So you can have all the famous names, fancy Super Bowl ads and catchy slogans, but when push comes to shove, it is a real person helping you. And too many times, that “real person” is a low-paid, stressed-out, poorly-trained employee.

Outstanding personal service just because some smiling face says it on the TV… not a chance! Better listen to what OTHER taxpayers like you are saying. Have they already experienced that particular tax firm’s services in the past and can testify to this effect? If so, that has more credibility than some high paid ad agency putting together some commercial on Madison Avenue.

(Hearing it from the “horse’s mouth” so-to-speak is even better. If you can listen to what other real people are saying about their tax filing experiences, and you like what they are saying — then by all means, go to that particular tax business and give’em a shot at filing your taxes this year.)

So for the record, don’t be “blind” to the fact that fancy ad jingles translate into the high quality tax services. They don’t.

And here’s the bigger news: these national “brand name” firms are falling into desperate times! You might already be hearing about changes to Refund Anticipation Loan products (which may or may not apply to you) and to all of the competition from us “independents” crowding out their fat profits!

It’s true…all kinds of changes are happening! And which would YOU rather work with: some big company that treats you like a number to save their bottom line…or a Personal, Professional, Highly-Trained independent tax firm that will be responsive to YOUR needs (so you won’t be client #587,231 out of 1,837,678!). You decide!

Last big mistake, coming to you tomorrow!

Ralf Heyer
Heyer & Associates EA, PA

PHONE: (786) 693-9358

the next big mistake (4 of 6)…

Am I making myself clear yet?

I’ve seen these mistakes over and over again…and I’m aware of how urgent our economic situation is today. So, on to the next big mistake…

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Big Mistake #4: Picking A Tax Professional That Can’t Stop Using “Tax Lingo”…Who Doesn’t Relate To YOU!
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Most people don’t realize this, but many tax professionals live in a whole different world. It’s a world with its own language, and it can be mind-numbing for the normal tax professional. “Schedule C”, “Offer In Compromise”, “Comparable Contributions”…blah, blah, blah. And when you sit down to talk with these guys, that’s all that comes out of their mouth!

Many CPA’s have a ton of experience in complicated accounting practices, doing very complex audit work and usually doing a really great job helping some large business or very high net worth rich guy with his investments and taxes. But, for most tax returns that are filed each year … nah.

Look, does this sound like your tax return? I thought so. You are not alone. The majority of regular middle income folks don’t want to wade into the swamp of all the stuff that CPA’s and tax professionals deal with. They just want it done right, get the most money back from Uncle Sam, and they want it done fast.

Am I saying all these guys don’t know what they’re doing? Absolutely not. There are some Certified Public Accountants who take the time to keep up with the latest tax laws and are still able to speak the language of the client. But, in most cases you are better off finding a tax preparer who is good at doing what you need done. And in this case, if the tax preparer preparers a lot of middle income tax returns already, that’s even better.

Think of it this way: Would you use a sledge hammer to hang a picture frame? (I didn’t think so.)

Remember: Go with a tax professional with TAX preparing experience, not auditing or accounting or something else that doesn’t relate to you!

To your success,

Ralf Heyer
Heyer & Associates EA, PA

PHONE: (786) 693-9358

Mistake #3 (of 6) for you…

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Big Mistake #3 Working Without a Written Guarantee!
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I’ve touched on this before, but it’s worth saying more about it.

Do you have an accountant that guarantees their work…in WRITING? Sure, some guys might say: “We’ll make it right if we screw up”, but then the stuff hits the fan and they fight you every step of the way.

I’ve heard too many horror stories about taxpayers getting a letter from the IRS, then they take it to their accountant, and then the letter sits on a desk gathering dust. Or stories about the CPA who makes some calls on your behalf, but you get charged an arm and a leg in the process. Or sadly, a taxpayer doesn’t get any help from the person who prepared their taxes for them so they go it alone and call the IRS themselves and figure out what to do and not to do during this normally ugly IRS correspondence … THIS can be a nightmare!

Don’t let that happen to you! You need to have a written understanding with your tax professional that you won’t be left in the lurch! Oh, and also-does this guarantee actually do something you want it to?

I’ve seen some accountants guarantee they will file your taxes for you by April 15th or they will file an extension for you. Well, whoopdy do! That sure makes you feel good in the morning, doesn’t it? Other weak guarantees I’ve seen in the tax industry are, “We guarantee we will begin preparing your tax return the same day we meet with you.”

That means nothing to me. I don’t care when you start preparing my taxes. I want to know how long it is going to take you to finish it and do so without leaving out silly errors you know you should have caught.

So remember: the guarantees should be in areas you care about, like:

Tax Return Accuracy … Speed of Service … Most Money Legally Yours … Ongoing IRS Protection For Years After Filing …

These are the things YOU care about! Make sure the tax professional you choose stands behind these critical areas of tax filing so you get the most out of your tax filing experience!

Best to you!

Ralf Heyer
Heyer & Associates EA, PA

PHONE: (786) 693-9358

To sign up for our newsletter visit: http://ralfheyer.mylocaltaxpro.com/ or visit our website at www.HeyerInc.com

Here’s mistake # 2

Yesterday, I sent you the first big mistake made by regular taxpayers during tax season: “Going it alone” with the “free” online options.”

Well, here’s mistake #2…

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MISTAKE #2: Not Choosing An Expert In The Type Of Tax Service YOU Want!
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Unfortunately, with the way that most tax professionals and CPA’s present themselves to the world, it seems like we’re all the same. We all seem to offer the same services, for pretty similar fees. If I weren’t working every day in this industry, I’m pretty sure I would think that all accountants and CPA’s were the same. NOTHING could be further from the truth!

You see, each tax professional does have certain qualifications. Some might be experts at this sort of tax law, or in working with farmers or with getting money back through IRS representation, or a whole variety of different things…but are they really providing what you, the consumer, wants?

What do you want from a tax preparer?

When I sit down and talk with regular consumers, here’s what I discover:

You want to be able to work with a caring professional…NOT one of those “cattle call” shops, where you’re squeezed in with a bunch of other people, and seen by harried, poorly-trained employees that just took a basic tax course.

You want an accurately filed tax return. You want the whole thing broken down in terms that you understand, and in a way that you don’t need a translator to communicate. You want there to be processes in place to ensure that the most money is kept out of the grasping hands of Uncle Sam, and in your wallet (legally).

You want a “heads up” about future ways you can legally add deductions and make sure that you can get even more money back in the future. You want assurances everything your tax preparer is doing for you is valid and correct, so a guarantee(s) is essential to the process.

And of course, you want do it fast. Look, I know this is a big deal for consumers…you don’t want your accountant pushing back at you all the time, saying “give me more time”, when you know it’s not because they’re working hard on your behalf, but that they’re so poorly organized that they’re not getting ANYBODY’S work done on time!

Oh, and if you ARE getting a refund, you want a tax firm who can get you the most money back the fastest … with the most electronic filing options available.

Here’s the bottom line: You want professionalism…accuracy … you want clarity … you want to be aware of beneficial tax options … you want peace of mind … you want an efficient use of your time …. you want your refund money back in your hands fast …. And at the end of the day, you want to KNOW you got the most money back from Uncle Sam AND you know the IRS will stay off your back so you can sleep like a baby at night!

If the accountant or tax professional you are talking to can’t do these things, you need to call one that can.

I’ve got an idea who that might be… do you?

To sign up for our newsletter visit: http://ralfheyer.mylocaltaxpro.com/ or visit our website at www.HeyerInc.com

1st mistake regular taxpayers make…

Did you know that the federal government (happily) holds on to hundreds of millions of dollars in unclaimed refunds every year? As a tax professional, it truly breaks my heart, knowing that just a few thousand, or even a few hundred bucks for us “regular guys” out of that vast pool of overcharging could make a world of difference…and they are just sitting there, unclaimed!

Yet, in an age when our tax code is getting more and more complex, regular consumers are getting bamboozled out of the money they’re due. There’s six very important reasons that this happens, and this Special Consumer Email Series is YOUR antidote to the madness!

MISTAKE #1- “Going It Alone” With The “Free” Online Options

Did you know that us accountants like to joke to one another about how good these online software programs (TaxCut(r), TurboTax(r), etc.) are for our business? Firstly, they are NOT as “easy to use” as claimed, and Secondly…they cost you an arm and a leg!

You might think…nah, they’re pretty cheap. And on the surface, you might be right (though on Monday, November 12, 2007 a $1Billion class action lawsuit was filed in the federal court in Philadelphia alleging gross misstatement of fees and deceptive standards of the federal “FreeFile” program…so even on the surface, it wasn’t always cheap!). But I’m not even talking about the money for the service itself.

Using those programs can end up leaving hundreds, or even thousands of YOUR dollars in the coffers of Uncle Sam…even if you follow all of their instructions to a tee. I see it ALL THE TIME-frustrated clients bringing in prior year’s tax return, astonished at all the “hidden money” my staff and I are able to find for them!

Even worse…

Choosing The WRONG Method To File Your Taxes Could Put You In Some Serious Hot Water With The IRS!

Even if I didn’t owe a ton of back taxes, I still don’t want MY RECORD to show some IRS agent that there has been some discrepancy in the past so RED FLAGS start to fly and more bureaucratic people begin looking through all my past tax filings and current income holdings and, basically taking my social security number and poking around in my private life! (If you think they won’t do this, the wool might have already been pulled over your eyes …)

They can do a lot of things you won’t want them to do. However, if you keep a clean slate (no IRS correspondence with you related to filing your taxes correctly), the opportunities for them to mess with your personal stuff will be limited.

Here’s another reason why this is so important … now more than ever! New government regulations and changes to the IRS refund system are creating a BIG MESS in the tax industry…and the “Big Brand Names” (you know who I’m talking about) do NOT want you to know about it! In fact, they’re doing all they can this year to hold on to their business, and it is NOT good for you!

So, I hope you are with me: YOU AGREE …. CHOOSING THE RIGHT TAX PROFESSIONAL IS A VERY IMPORTANT DECISION!

Tomorrow, I’ll send you Mistake #2… Ralf HeyerHeyer & Associates EA, PA

To sign up for our newsletter visit:  http://ralfheyer.mylocaltaxpro.com/ or visit our website at www.HeyerInc.com