When to Hire An Accountant

Tax season is approaching, the W2’s are starting to arrive and 1099’s should be sent. Now is a good time to decide whether you should do your own taxes with software such as Turbo Tax or hire an Accountant.

TurboTax and others like it are great programs for people with relatively simple taxes.

I’ve used an Accountant for many years. I consider my Accountant an integral part of my team. If I have questions, or issues related to my personal taxes, rental home or business, they are a phone call away for expert advice. Could I research these issues myself? Yes. The question is, what is the value my time. Will I get the over all value out of the research, given that an Accountant has already done it and understands the nuances? And my Accountant can explain my tax quandaries to me in a fraction of the time. Having an accountant helps me sleep at night as well, because I am confident that I am being advised to do all that can be done to save money on taxes, and that I am less likely to get audited by the IRS.

But, not everybody is “me” … This is my decision criteria for determining if you would benefit from an accountant:

If you don’t enjoy something and you can hire someone to do it better than you can and it doesn’t cost too much, then doing so is a no-brainer.

Here are eleven things to consider when deciding whether to hire an accountant to do your taxes:

1. Do you (and your partner) work for a company, and get W2’s?

2. Do you own a house?

3. Do you have a brokerage account that is heavily used?

4. Do you own a business?

5. Do you own alternative investments?

6. Have you recently had any interesting life events (a new baby, sold/bought a house, moved to a new state, inherited money)?

7. Are you near retirement age?

8. Is your income near a major IRS income limit? (If you are married, did you earn close to $77,000, $165,000 or $315,000?)

9. Do you own rental property?

10. Have had trouble with the IRS in the past?

11. Do you HATE doing your taxes?

If you answer “yes” to 2 or more of the above questions, you would benefit from a solid relationship with a local and friendly Accountant. Do you really want to spend your March weekends holed up in front of your computer, researching the never-ending set of changes to tax law?

Once you have determined that you would benefit from a Accountant, know that one will cost you more than Turbo Tax or another DIY tax software. But the benefits of outsourcing to an expert can out outweigh the costs. When was the last time you changed the brakes on your own car?

If you decide to look for Accounts, I am happy to provide some recommendations if you live in the Atlanta Area. Just email josh@chamberlainfa.com.

Josh's Car Buying Process

Choose a car that holds its value and has low maintenance and insurance costs.

My family is in the market for a new SUV. Our 2008 R300 Mercedes Benz has done an admirable job for our family: It is AWD, has a third row, is super comfy and is an absolute beast on the highway. However, it has reached my standard goal for a car of 160k miles and 10 years old. Combined with the fact that expensive things are starting to need to be repaired… its time we move on.

Next to purchasing a home, buying a car is one of the biggest personal financial decisions you will make. Given that, I am incredibly calculated when it comes to car buying and want to share the process I go through:

Josh’s Financially Sound Car Buying Process

1. Trade In or Sell Your Existing Car

I will list it on Autotrader or Craigslist, and let it continue to live on with a new family. I can’t let myself be ripped off by a dealership. And it is too old to sell to Carmax.

2. Set A Budget

You need to have a firm budget with a clear understanding of how much you can comfortably afford. A car is not worth the financial strain of sleepless nights over high payments. Decide how much you can spend on a car and how you’re going to pay for it. We determined our budget for this car purchase is $40,000.

3. Define Your Car Requirements

Here are our requirements:

• AWD for family safety

• Either Japanese or American badge, for value, ease of repair, supply

• Not a European badge, because TCO is generally higher, with a higher starting cost. ( We already have one European car in the family.)

• A car that is 1-3 years old, so that I do not pay the new car premium

• A car that has 20-30k miles, enough miles to have not been ridden too hard, but new car kinks have been worked out

• A model not in its first year of design and function has been iterated and cost efficiencies have been achieved

• A 3rd row for carpools. Our sanity hinges on carpools.

• Looks good and has a positive image. While we are not totally trying to keep up with the Jones’, we do like nice things.

4. Car Prospects

Once we decided our requirements, I put together my initial list of cars: Ford Explorer, Lincoln Navigator, GMC Yukon/Chevy Tahoe, Toyota Land Cruiser/Lexus, Toyota Highlander, Honda Pilot, Acura MDX, Nissan Armada, Infinti QX60 and Subaru Ascent. Then, as Jenn and I drove around, I would point out cars, and gauge her reaction:

• The full size SUVs were too big for Jenn. That killed the Navigator, Yukon/Tahoe, and Armada.

• The Explorer got nixed for emotional reasons, that are too deep seated for me to understand (husbands, I advise sometimes, just don’t ask questions).

• The Land Cruiser is a family favorite, but too expensive.

This left us with a more manageable set of prospects: Highlander, Pilot, MDX and Ascent. Each of these, has a different set of positives:

In a dealership, be ready for the finance manager to pitch you additional products and services.

• Highlander: looks good, comfy, AWD, hybrid for good mileage, indie shop in the hood.

• Pilot: good size, good quality … it’s a Honda!!

• MDX: looks great, good quality, potentially expensive … it’s a high end Honda!!

• Ascent: we have had Subaru’s in the past and love them for ruggedness, quality, value and local shop access — but it is in it’s first year.

5. Buy Or Lease

For our family, given that we buy and hold, we don’t have to debate the lease/buy equation. Leasing just doesn’t make sense.

6. Research

So with all of these variables, in play, here is the remaining process:

1. We need to test drive the cars.

2. Josh to explore used car prices via autotrader/ebay SOLD prices

3. Talk to local indie shops to determine any “gotchas”

4. Check short term loan options, because we will likely need to borrow $10-15k

We normally take our time on the car buying process, so this will likely play out over the course of the next few months. But taking into account all of the variables allows us to hone in on the best option for our family. And it keeps us from making an emotional purchase at the local dealership when they start throwing incentives at us.

7. Close The Deal

Get a pre-purchase-inspection (ppi) at your local/friendly indie car shop, on any car sold by an individual. If they have the service records, comb through them. If they don’t have the records, that is a red flag!! Check the carfax to make sure it hasnt been wrecked or in a flood. Before taking ownership of the car, you should add it to your insurance policy. Then, you only need to pay for the car, if buying a used car, usually with cash or a cashier’s check. Make sure you get a title and have the seller sign it correctly. When in doubt, check the state’s registry website for more information. Most states allow about 10 days to register the car in your name.

Do you need help determining your car budget, the right type of car for your family, options for buying or selling a car, lease or buy equations, total cost of ownership? Let’s sit down and chat about it.

"Tidying Up" Your Financial House

Jenn and I spent last night watching Netflix’s phenomenal, “Tidying Up with Marie Kondo”. We were fascinated, and a bit inspired by it. She takes the mundane task of creating a tidy home, and turns it into an experience where a couple grows closer together, by creating peace where there once was chaos. The process has a profound experience on the couples she works with.

Marie, has a philosophical frame work, Konmari, that she has translated into a specific set of milestones:

1. Clothes

2. Books

3. Papers

4. Komono (Misc items)

5. Sentimental items

After watching a couple of episodes, Jenn and I spent a few minutes, sorting through my vast “treasure trove” of books. Anything that did not “spark joy” in us, was sold or donated this morning to our local used book seller. Not only was it liberating to get rid of some junk, but Jenn and I worked together through the process, and connected with some old books that sparked a conversation … and we got 25 bucks!! for the old books. Overall it was a fun experience.

Much like Bruce Willis and the young boy in “The Sixth Sense”, that said “I see dead people,” I see finances everywhere. I could not help but see the parallels in what Marie and I do with families. I start with a philosophy: we should be living our best lives in the short/mid/long term, and then work through a set of milestones:

1. Create an emergency fund, get your down side covered with insurance

2. Maximize your earning and get your budget under control

3. Funnel money into accounts that fund your long term goals

4. Funnel money into trips/things/charity that suit your short term goals

5. Take care of your friends and family, with wills, 529s and care for your parents

Getting your personal finances in order seems like an overwhelming and impossible chore to many people — just like tidying your home — but when you dig in, you’ll find that it’s not as hard as it seems. You just need a financial planner to coach you along the way to “tidy up” your finances. As a result, you and your spouse will grow closer by removing the financial concerns and fears prohibiting you from reaching peace and sparking joy.

Are you ready to work with your partner on a profound experience? How can we spend some time getting your finances organized?

The Key To Keeping Your New Year's Resolution

After 1 month

45% of resolvers have given up.

Roughly 40% of Americans made a New Year’s Resolution on January 1st. And for good reason. We thrive as a society, because we constantly work to improve ourselves. The most common resolutions are around:

1. Weight loss/working out

2. Finance: Better money management and debt reduction

3. Stopping Bad habits: drinking/smoking

after 6 months

65% of resolvers have given up.

Here’s a common Resolution many of us can relate to

You are busy with work and family, booked from dawn to dusk. When you get home from work, its late, and you are tired, so you go out or order take out for dinner. It becomes a habit. As result, both your budget and weight become a concern. So you make a New Years resolution to make dinner 3 days a week. Its a good goal!

What’s Missing from this goal

What’s missing from this goal, is “how” are you going to go about it. If you want to add something to your busy schedule you have to remove something else. It’s why many people don’t stick to their resolution. They resolve to do something, without resolving NOT to do something else.

There’s a reason in this scenario that you started ordering out. You were too tired to cook. So you have to free up time so you get home earlier 3 days a week and aren’t too tired to cook dinner or plan a way to prepare dinner before you walk in the door tired and hungry.

My Recommended Resolution: Budgeting

If you are open to a resolution, I highly recommend budgeting: create and stick to a budget. If you and your family want financial security, following a budget is the answer. I assure you, it is going to take some time. Whether you use an app on your phone and check in each morning over coffee, or if you do a weekly audit on Sunday mornings before church, using a sophisticated tool … you will need to add the time to your schedule. There is no way to “carve out” extra time, you must decide to STOP doing something else, so that you can spend time budgeting. So, ask yourself, if you are resolving to make and stick to a budget … what are you giving up, so that you can spend time on something more valuable?

Want to be in the successful 35% that keep their resolution?

Are you busy and need someone to help you with your finances? Contact me whether you need a realistic budget, a financial plan, help getting out of debt or a financial advisor that you can trust to manage your investment portfolio and keep you informed and in control, I can help you.

Do You Give Wisely?

A primary goal of our family is giving back to our community and non-profit organizations that help the less fortunate, sick and the environment.

When considering the average household income in America is $52,000, my family is incredibly rich in wealth and health. A primary goal of mine is giving back to my community and to non-profit organizations that help the less fortunate, sick and the environment.

Give Wisely!

When giving, I use Givewell to ensure that my giving goes as far as possible. Givewell is a nonprofit dedicated to finding outstanding giving opportunities through in-depth analysis. They use a data driven approach based on 4 criteria: evidence of cost effectiveness, cost effectiveness, transparency, room for more funding. They publish all of the data.

When considering the average household income in America is $52,000, my family is incredibly rich in wealth and health.

If none of Givewell’s suggestions resonate with you, there are a number of places like Givewell that can help you determine the right place to put your money. A short list of charities that I’ve vetted and give to are Heifer International, the American Cancer Society and Altamaha Riverkeepers.

How much should you give?

It’s a personal decision. I work with clients who tithe 10% of their income and others who don’t give much money but are generous volunteering their time and talents. I encourage you to think about giving as a means to help other people and less about a tax deduction. However, if you care about medical care, and rural GA, this is a nice program that is also good for your tax bill.

An interesting bonus to giving??

And an added bonus to giving, you’ll feel smarter if you give, and people may think you are smarter!! So go ahead, give, let everybody know how smart you are!

I have been having really productive goal setting sessions with clients. Now is the time to lay out a plan for next year. Schedule a planning session with me in January!! Can you afford to wait another year to start pursuing your goals?

Josh's Splurge Worthy Holiday Gift Guide

Whether it’s investments, real estate or my clothing, I’m all about value. So when it comes to gifts, I give quality gifts that people can use and enjoy daily. I also love supporting fellow small businesses who focus on quality and make a difference in a community. Assuming that you are following a holiday budget (as per my end of year financial checklist), here’s some holiday gift ideas for those on your Christmas list, that will have as great an impact on a company as they will have on the recipient.

Holiday Getaways

Our family tradition is to go on a Christmas trip, rather than buy a bunch of stuff. Experiences, in my book, are the best gifts. In Georgia we are within a 6 hour drive of a great B&B in Savannah, a house on the beach near Charleston, the Grove Park Inn in Asheville, an amazing old train station in Nashville, Little St. Simons on St. Simons Island and the best beaches in Florida.

Christmas Gifts for Women

These are all gifts I’ve gotten my wife over the last year or two. They’ve proven to be her favorites and great quality.

Greats $143

Timeless Shinola Watch $650

Brooklinen Luxe Sheets $100

Marine Layer Comfy T’s $39

Le Labo $80

2018 Holiday spending

“On average, shoppers expect to spend $1,007.24.
-The Balance

Holiday Gifts for Guys

These are a few of my favorite things.

Big Green Egg

Filson Weekend Duffle $395

Amour Lux Slippers $50

Tommy John Underwear $32

Goorin Brothers Flatcap $60

Purchases at U.S. web retailers rose 23 percent over last year's holiday period

-Bloomberg

Holiday Home Gifts

For my fellow foodies and more

A case of wine from Garagiste.com $125

Fairbault Mills Wool Throw Blanket $160+

Smithy Ironware Cast Iron Skillet $160

Instapot for fast rice and deliciousness $100

Bloodrot Blades Chef Knife - a work of art

This is my wish for you: peace of mind, prosperity through the year, happiness that multiplies, health for you and yours, fun around every corner, energy to chase your dreams, joy to fill your holidays!
- D.M. Dellinger

So, go forth and spend some of your hard earned money … wisely. Let it be on something that they will love and will last for years! And this year, give yourself the priceless gift of security and peace of mind: schedule a meeting with a financial planner. I can create your financial plan and keep you accountable so you reach your goals.

Tata and Josh's Surprising Connection

Tata Built a winning team

In Atlanta, the big sports phenomenon is the Atlanta United soccer team, an expansion team in the MLS. The team is headlined by an internationally renowned head coach “Tata” Martino, who built the team from the ground up, using young, and generally untested players. Led by the dynamic duo: striker Josef Martinez and midfielder Miguel Almiron. The team beat NY Red Bulls (NYRBs) last week to proceed into the championship match this Saturday against the Portland Timbers.

Tata Always has a strategic plan

A friend of mine described the playoff game as “pretty ugly”. Given that the United had won the first of 2 legs 3 - 0, the onus was on the NYRBs to come out and score more than 3 goals. With that in mind, Tata, created a game plan around strong defense, with counter striking possibilities to Martinez and Almiron. This meant, in all likelihood that the NYRBs would possess the ball, have more passes and attempt more shots. While the United would abide the onslaught and use meager chances to create tremendous upside, sending individuals on runs to the goal, essentially unassisted. During much of the game, it did look, “ugly”. However, the plan unfolded exactly as Tata foresaw. This “ugly” plan yielded the opportunity for Atlanta United to proceed to the next round of the playoffs.

For each game— and the season— Tata had a strategic plan, created around his players strengths, working towards “goals”. It allowed individual players the freedom of play and expression, but directs them towards the “win”. Rather than the players descending into ball hogging, fruitless passes and being frustrated by playing hard but not bringing home a win.

Here is an interesting article on entropy, and reminds me that a system left unfettered, will descend into chaos.

How’s your financial plan and track record?

Like Tata, I enjoy working with professionals and families that are at the beginning stages of their financial game but have potential and the commitment to follow a smart plan. Do you want a strategic plan tailored to meet your short and long term goals? Do you want a coach that will keep you accountable so you reach those goals? If so, I want to help you plan and grow your wealth so you can live better.

Contact me if you are interested in learning more.

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