Don't let questionable work habits tarnish your reputation

I have encountered several workers who have recently begun reporting to new managers. Many of them are experts in their field and have been employed with their current companies for ten years or more. Unfortunately, these long-term employees are experiencing difficulties adapting to their new manager’s rules. They have been written up, reprimanded and even fired. Most of these instances relate to sloppy work habits and questionable behaviors that were overlooked by former managers but are unacceptable under the new regime. Here is a sampling of behaviors found to be unacceptable:

1. Continuing to submit expenses for reimbursement several months after the expense was incurred even after a new policy was put in place requiring all reimbursable expenses to be submitted within one month of occurrence.

2. Continuing to arrive a minute or two late every single day after being warned tardiness was no longer going to be tolerated.

3. Selling outside of the employee’s territory or product line. Don’t assume your new manager will continue your former manager's practice of not enforcing territory lines. Your new manager may have been brought in set up structure and accountability in the department.

4. Signing customer's name to legal documents. In order to save time and gas money, the salesman, with the customer’s permission, signed the customers signature to a document missed in the closing process. The salesman’s new manager viewed this as forgery.

5. Using company computers to send joke emails despite the company’s new policy forbidding it. Many employees forget computers are company property. Even without a company policy, think twice before forwarding a joke email; what you consider to be a funny a co-worker, customer or boss may find to be offensive, a waste of company time and resources. If you must forward joke emails do so to family and friends only from your home computer.

6. Refusing to attend required training because employee was too busy and felt his years of experience exempted him from further training. The new manager concluded this employee wasn’t a team player.

Your new manager will not care about your seniority and past sales records if you do not comply with his/her new policies and procedures. With the economy in the doldrums and new jobs increasingly hard to come by do your career a favor and clean up sloppy, questionable work habits before your new manager arrives.

Billy McLaughlin Is Truely Inspirational

Last night we attended an amazing performance called the "Acoustic Archery FTG" featuring Andy McKee and Billy McLaughlin at the Northern Lights Theater. We arrived late for the performance which provided us with an added bonus; the opportunity to meet Billy McLaughlin in person. He was standing in front of the theater's entrance with his ear to the door listening to Dean Magraw . He said, “This is the first time I’ve heard this guy. It seems almost sac religious to enter while he’s playing” My husband looked at him and said, “Your Billy McLaughlin.” It was, and DH began telling him how we had discovered him on public TV about ten years ago when his performance of "Fingerdance" was featured as a filler. We were so enamored with his innovative guitar playing we went out and bought not one but two of his CD's. He talked about his new DVD and an upcoming documentary to be aired on PBS. He was extremely personable and sincerely thanked us for coming.

During his performance he kept referring to how happy he was to be performing his music. Why was he so happy?

In 1997, he had suffered a hand injury resulting from a fall. He began having difficulties playing solo guitar. His performances received poor reviews; he was even accused of playing while under the influence. Finally in 2001, he was diagnosed with focal dystonia (a neuromuscular disorder with symptoms similar to Parkinson’s disease) which had afflicted his hand. His doctors advised him to look for a different career; his career as a virtuoso guitarist was over. Billy refused to give up. In 2006, he began a comeback. He had relearned to play the guitar one note at a time left-handed. His documentary describes this retraining as learning how to speak every word in reverse - phonetically. His story is phenomenal. Watch it here.

“Many people fail because they quit too soon.”
Quote taped to Billy's dashboard

Overpromise Worse than No Promise!

Late Thursday afternoon, Mr. B.S., the regional manager for my company’s business insurance called to offer me two tickets to Milwaukee's Harley-Davidson fest. The package included a two-day pass to the festivities plus concert tickets to the Foo Fighters and Bruce Springsteen's performances. I immediately said I'd take them and began contemplating who the lucky recipients would be. Mr. B.S. was to overnight them so they'd arrive at my office first thing Friday morning.

As I walked into the office Friday, I saw was my co-worker JB's harley parked right outside the main entrance. I immediately decided he would get first dibs at the tickets. You should have seen his eyes light up when I asked him if he was interested in the Springsteen tickets. He and his wife had wanted to go, but the $60 entrance fee plus a $40 concert ticket was too steep for their budget. He would need to know soon, however, so he could secure a babysitter. I told him the tickets were his and I'd let him know the minute the package arrived. I would find a recipient for the Foo Fighter tickets once I had them in my possession.

11:00 came around and I still did not have the tickets. I asked J.B. what time our Federal Express courier usually arrives. He said, “They should have been here by now.” This was not a good sign; my past experience with Mr. B.S. has been spotty. He repeatedly has over-promised and under-delivered. I called Mr. B.S. to request he place a tracer on the package. Of course he didn't answer. Of course he didn't call me back. Of course 5:00 came around and I did not have the tickets.

I know this could have been the fault of the express mail carrier, but past experience leads me to believe my express mail package is lying on the back seat of Mr. B.S.’s car. Plus in the eyes of J.B, I now appear unreliable. As I see it, once again this manager disappoints. This could have been a great opportunity for him to redeem himself, but instead I am now more annoyed than ever.

Life lesson:
People don't like being disappointed, so it's better to under-promise and over-deliver than the alternative.

Be Cognizant of Cover Letter's Purpose

In response to an advertisement for a territory salesman my company received a resume and cover letter submitted by one of our competitor's employees. The first paragraph of his cover letter was written as follows:

I am currently employed as a store manager at XYZ Company. They have three stores with their main office located in Milwaukee. I am employed at their Madison location. XYZ Company is managed in such a way that I am continuously working in a reactive mode.

The last sentence automatically disqualified this candidate from further consideration. Our owners perceived two things from this sentence.
1. Our competitors have the same problems we do.
2. This candidate most likely has a bad attitude, especially towards the management of XYZ Company.

The purpose of a cover letter is to explain why an employer should want to hire you. The above candidate had been promoted from salesman to store manager at his present company. He would have faired much better if he had written what a great salesman he had been, how he misses sales and would love to have the opportunity to sell for our company. He currently commutes from Milwaukee to Madison each day. By stating he would prefer a position with a shorter commute, although not a reason we should hire him, would have at least not eliminated him.

For an example of a great cover letter read Ask a Manager’s post "What Does a Good Cover Letter Look Like".

Was opening the "Kabul Beauty School" A truly unselfish act?

The book Kabul Beauty School: An American Woman Goes Behind the Veil by Deborah Rodriguez is an engaging and insightful look into the lives of Afghan women. Debbie a hair stylist from Holland, Michigan travels to Afghanistan to assist with relief efforts after the Taliban was removed in 2001. Upon discovering she had no real skills to assist with the effort, she began cutting hair to keep busy. After talking to Afghan women, some of them former salon owners whose salons had been outlawed by the Taliban during the occupation, she discovers beauty salons are the only business a woman can control in Afghanistan without a man. Enthralled by the country and the people she met she returns to help open and run the Kabul Beauty School.

In the book, which is written as a memoir she writes about the lives of the women she meets. Afghanistan is a country where woman have no rights and can be killed for dishonoring their families. Marriages are arranged and it is commonplace for an Afghan man to take a second or even a third wife. Unfortunately, many Afghans still agree with the Taliban that beauty salons and any thing that make women stand out are an abomination; many believe beauty salons are fronts for prostitution. Debbie who likes to refer to herself as “Crazy Debbie” has just enough craziness to confront the obstacles the Afghans throw her way. She also picks up an afghan husband, “Sam” who in the book is portrayed as an ally in her mission.

After completing the book, I wanted to know more: Was Debbie still in Afghanistan? How were the women she wrote about fairing? Had their lives improved? Was the Beauty School still in operation? Was Debbie still running it? Was she still with Sam?

Unfortunately, it didn’t take long to discover things had not faired well. According to NPR and other on-line news sources when Debbie returned to Kabul after a book tour she discovered her husband, Haji Sher Mohammed (known in the book as Sam), had been sexually harassing the salon girls and was plotting to steal her money. She was forced to abandon the salon and flee Kabul after diplomats warned her she would be kidnapped if she stayed. The country was simply too dangerous for her now. More tragically, she may have endangered the lives of the women she wrote about. The book has caused outrage in Afghanistan, where websites have revealed the salon girls’ true identities. They have been denounced as prostitutes who have soiled the reputation of Afghan women. An American diplomatic source said Rodriguez was well meaning but “naive”. “It’s a bizarre feature of contemporary life that people can fly into Kabul, marry a warlord, set up a beauty parlor, get a movie deal and fly off to another life.

Perhaps the fictional character Joey in an episode from the sitcom “Friends” was correct when he set out to convince Phoebe there are no truly unselfish acts. Many sources claim Rodriguez wrote the book and actually opened the beauty school for selfish reasons. I can’t help but wonder why Rodriguez didn’t write her book as a fictional novel about Afghanistan women rather than a memoir.

The book is scheduled to be made into a movie starring Sandra Bullock as Rodriguez. Rodriguez apparently plans at some point in the future to give the women "a small part" of the book royalties, and 5% of the money from the movie being made. I hope so, but the money seems like such a small token after so much drama.

Enough said.

Accountants are required to work 45+ hours per week.

In a recent conversation with recruiter A, I asked whether she thought I was underpaid in my current position. Instead of inquiring further about my job's responsibilities or duties she asked, "How many hours do you work in any given week?” Typically, I work 40 hours a week. When the need arises I do work whatever hours are needed to get the job done. This has included working both Saturday and Sunday during year-end close and 10 hour days at month-end. Upon hearing my response she said, "Since you typically work only 40 hours a week you are probably not underpaid. The majority of accounting positions I fill require a work week of at least 45 to 50 hours."

Not pleased with recruiter A's response, I asked recruiter B if the companies she recruits for require accountants to work more than 40 hours per week. Instead of answering my question, she went into a tirade about two recent job placements that fell through after the candidates refused to work more than 40 hours a week despite having been advised of the hour requirement prior to hire. She wondered why these individuals even majored in accounting; everyone knows accountants are required to work long hours.

Conclusion: In my 20+ years of working as an accountant I have worked several jobs including the early years of my current position) where I have been required to work 45-50 hours a week. I have since come to the conclusion I cannot work 45+ hours a week every week, year after year and still be effective in my job. I think the only people who can do this are either very driven, very passionate about their work or both. If more money requires a greater hour requirement at this point in my life I think I will stay where I am.

Control what you can

Tuesday night we went to bed early looking forward to a good night's sleep only to be awakened around 11:00 to the sound of sirens; a car was on fire in our backyard. A 17 year old boy had taken his Grandmother's car for a joy ride without her consent. Driving recklessly he hit a tree on our lot line causing the car to spin out of control and come to a stop in our yard. According to witnesses, he was very lucky; the car went up in flames only seconds after he escaped. Also, based on the car’s damage it is a miracle he was not seriously injured.

Unfortunately, the life lesson in this situation appears to have been lost on the boy. His comment to the first officer arriving on the scene was, "That was so cool!" According to this officer, neither the boy nor his Grandmother has insurance; his father is in prison, at 17 he already has a record and is most likely headed for a life of crime himself.

In the incident’s aftermath, we are left with a mess in our backyard and will most likely lose our tree. We could easily be angry about this situation; the last thing we want to do on a humid Saturday afternoon is pick up charred auto parts and small pieces of glass.

I am reminded of the advice a friend received from her father when her parked car was damaged by a hit and run driver, “Incidents like this are going to happen in life. You are wasting your time getting upset. I know it is a hassle and the extra expense is unfair, but concentrate on controlling what you can, your attitude. Then get the car fixed and move on.”

Items I have gotten upset about in the past, but cannot control:
1. Other people. Their perceptions, problems, thoughts and actions.
2. The weather.
3. The economy.
4. Hassles such as travel delays, poor service or traffic.

Items I can control:
1. My thoughts and actions.
2. How I spend my free time.
3. Who I spend my free time with.
4. How I spend my money.
5. What I eat.
6. My appearance.

Hara Hachi Bu

I have a coworker who makes it a known fact that she dislikes exercise and strenuous activity of any kind. When the ladies in her department go for their daily walk she always refuses to join in, preferring to remain inside eating her lunch and reading her book. She doesn't seem to be overly conscious of eating healthy; her lunch usually consists of macaroni and cheese, noodles in a Styrofoam cup or leftovers from the previous night’s dinner, yet she maintains her weight. I have always wondered how she does this; if I miss even one week of exercise my weight shoots up a pound or two.

At a recent retirement party, I sat next to this coworker and must say I am now onto her secret. After eating only half her plate of food, she pushed the uneaten portion aside claiming she was full. She did eat one small appetizer and a half a piece of cake, but only because others forced it upon her. In comparison, I ate five or six appetizers, my entire plate of food and a whole piece of cake.

So there you have it, she is as disciplined with her food as she is with her work. Now that I think about it, I have never witnessed her eating a single treat others have brought into the office and I would know since I am usually the one eating the majority of these treats.

In Okinawa they have a term for this, Hara Hachi Bu, "eat until you're 80 percent full." In addition to maintaining their weight, Okinawans have the lowest rates of heart disease, cancer and stroke - and one of the highest life expectancies - of any population in the world. Stop eating when you feel only slightly full; within 15 minutes you should be satisfied.

I can’t say in the weeks since this party that I have changed my eating habits, but I have become more conscious of portion size and have made small attempts to quit eating before I am full. It’s a start.

Enough said.

Just wondering why?

1. The smudge proof mascara I buy is never really smudge proof.

2. My health club has to charge extra for Pilates and yoga classes. Isn't my monthly membership fee enough to cover the cost of these classes?

3. Every time I buy new eyeglasses, the only frames I like in the entire store just came in and are not on sale.

4. These same eyeglass frames looked much better when I was trying them on than when they contain my actual prescription.

5. Pottery Barn’s earthenware dinnerware is stamped microwave & dishwasher safe when in actuality it cracks if placed in the microwave.

6. Our local retail establishments refuse to keep extended hours and even choose to close early on a whim. I really do try to patronize our local Mom & Pop shops, but it is extremely frustrating to rush across town after work only to find they closed 15 minutes early. And they wonder why they can’t compete with the large discount retail chains.

Saving Money on Prescriptions

In most discussions concerning the rising costs of our company’s medical insurance, our agent gives the aging population of our workforce and their ever increasing quantity of prescription maintenance medications as one of the contributing factors. To help our employees manage these costs his assistant gave a presentation on “Ways to reduce the cost of prescription drugs”.

Suggestions given:
Ask the pharmacist how much the prescription would cost without your insurance card. I was utterly shocked to hear if a prescription costs $6.99 and you handed them your drug card, the pharmacist may charge you the $10.00 co-pay instead of the actual lower $6.99 cost. Employees at her firm discovered this was happening when their company switched to an HSA insurance plan and employees began paying the full cost of prescriptions out of their own pocket. (Later many of our employees did check the cost of their prescription drugs only to find the actual cost to be well above their co-pay).

Ask for free samples at your doctors’ office. Drug reps hand out samples to doctors weekly. Most clinics save them for the needy, so you may have to ask for your free samples.

Go Generic. When a drug loses its patent, other companies can sell the drug at deeply discounted rates. If there is no generic, ask your doctor if there is another form or an older form that is less expensive. Pharmaceutical companies continually refine drugs to keep customers on the brand name drugs longer.

Split the pill. Pharmaceutical companies often charge the same amount per pill regardless of its strength. (Example- Lipitor 20mg and 40mg cost exactly the same.) Buying ½ the number of pills and splitting them saves money. Note: not all medications can be split, ask your doctor.

Pharmacies are business – yes, you can negotiate pricing with your pharmacy. Shop around for competitive pricing. (Don’t forget Wal-Mart has $4 prescriptions on certain meds).

Mail Order – If you need your medications on an ongoing basis, check out your mail order drug program, save on co-pay and have them delivered to your front door.

I recently attempted to read the book, “Our Daily Meds: How the Pharmaceutical Companies Transformed Themselves into Slick Marketing Machines and Hooked the Nation on Prescription Drugs” by Melody Peterson. Unfortunately as much as I wanted to read this book, I wasn’t able to read more than 50 pages because it was just too darned depressing. What I did read helped me formulate a cost saving suggestion of my own:

Do not watch, read or listen to any advertisements for prescription drugs; not only are the pharmaceutical companies buying off our doctors but are using advertisements to convince us we have medical conditions we don’t have and to persuade us to ask our doctor to prescribe the latest most expensive wonder drug when a much cheaper generic version would work just as well.

Enough Said.

The Dreaded Medical Insurance Renewal

My company has just completed our medical insurance renewal. Once again, our current carrier has increased our medical insurance premiums for the upcoming plan year. The 12% increase was not astronomical, but accompanied with the current soft sales forecast, an increase in our business insurance that was astronomical (40%), and increases in fixed costs; utilities, shipping etc. our owners felt they had no choice, but to pass the increase in medical insurance cost on to their employees.

They did look at alternatives:
- Switching carriers. Another insurance carrier submitted a quote with a similar plan design for a total cost decrease of 3%. Unfortunately, this new carrier did not offer adequate preferred provider organization (or “PPO”) coverage for all our locations. Also, this same group of employee’s medical expenditures would be subject to usual and customary charges. In the long run, our owners decided this carrier was essentially buying our business for one year. Most likely next year, they too would increase our premiums and we would be in the same situation we are in now.

-Our agent did use this more attractive quote as leverage against our current carrier in an attempt to persuade them to lower their original quote down from the 12% increase, but they refused to budge.

- Offering a dual plan choice; our current plan plus an HSA Health Savings Account. Surprisingly, the premiums for the HSA plan were not that attractive. That, in addition to the additional work involved in rolling out such a plan, they decided against it.

The Final Decision:
After much discussion, our owners decided to stay with our current carrier, tweaking the plan design so that the plan would be more affordable. The deductible was increased along with the maximum total out-of-pocket cost. And of course the % of premium the employee pays out of their own pocket was increased. To soften the increase a flexible spending account, was added to the total benefit package.

How the employees responded:
The employees accepted the announcement of higher medical costs with few complaints. I asked one of our more outspoken employees why he was so complacent this time around. He responded by saying, “This increase comes as no surprise. I read the newspapers. There are articles almost daily about the rising costs of medical insurance. Our company is not alone. I talk with my friends who work at other companies. They are experiencing increased costs and a reduction of benefits as well. I don’t like, it but there is nothing I can do about it."

Enough Said.

Tina Fey on "The Way Women are Perceived as Leaders"

In the article, “Tina on Top” found in the May 2008 issue of Marie Claire magazine, Amy Poehler asks Tina Fey to tell readers a little bit about a play she wrote while in Chicago in the early ‘90’s about Catherine the Great.

Yes. yes. I used to take playwriting classes, and I wrote a one-act play – I can’t remember the name of it, but it was really about the way women are perceived as leaders. In the play, Catherine the Great would say things like, "You know, John F. Kennedy had extramarital affairs and no one says anything. But I bang one horse and now I'm a horse-banger for all eternity? That's it? That's what I am? I think Hillary Clinton's got to relate to that.

Enough said.

Advice for the Accounting Grad

You may not make 65K your first year out of school, but the future job outlook for accountants is good. According to the Bureau of Labor Statistics (BLS) beginning in 2008, 22 million workers who are 45 or older will start leaving the workforce, primarily due to retirement. One of the job categories expected to see higher than average departures in that age group are financial managers as well as bookkeepers and accounting and auditing clerks. I have already begun experiencing this at my organization. As members of my staff retire or move on to better opportunities, I have found it increasingly difficult to fill their positions. Recent accounting grads do not even consider accounting clerk positions. I firmly believe they are holding out for better opportunities and are finding them.

How to be more marketable:
Don't overlook summer intern or seasonal tax preparer positions in hopes of a permanent job. If you perform well you will most likely be hired permanently in the fall or when a permanent position becomes available. If at all possible get experience in public accounting. More employers now require public accounting experience. Join business fraternities and professional organizations, and become an active participant. Recently during a CPE workshop sponsored by my accounting organization, a member practically hired a student attendee as a summer intern on the spot.

Get your Certified Public Accountant CPA or Certified Management Accountant CMA certification:
At this same meeting, an accounting student asked whether or not she should take the CPA exam; her boss had advised her against it saying she didn’t need it to be an accountant. Hello, maybe not to work for him, but a lot can happen over the course of a career. The CPA designation comes with a lot of honor and recognition. He is correct it is not a requirement in order to work as an accountant but it does make a difference. It has certainly opened a few doors for me. Also, don’t rule out the CMA exam. When I was in school, it was all about the CPA exam, now my boss wants to know why I never got a CMA.

Which Offer Should I Take?
One of my college professors advised that if you had the luxury of receiving two like job offers to take the one in which you liked the people the best. You will be spending at least forty hours a week with your new co-workers; if you don't like them, your working life has the potential to be miserable.

In closing, a respected CPA I worked with early in my career found the best accounting professionals to be highly motivated and committed to continuous learning. Remember, now that your classroom time has ended you are responsible for keeping your skills and knowledge current and for managing your own career, not your employer.

Do you type?

This morning, the President of my company popped his head into my office and asked, “Do you type?” When I responded affirmatively, he handed me a confidential form that needed typing. Taking the form, I walked to the empty cubicle that housed our old typewriter, sat down, aligned the form, and began to type. As I was typing, I became overcome with a sensation of deja vu.

When I was in high school I took several secretarial classes; Typing I, Typing II and Shorthand I. I'm not sure why I took these classes, I don't recall anyone telling me that I had to take them, asking me if I wanted to take them or even if I liked them. They were the elective classes girls in my high school enrolled in. I abhorred typing. I don’t recall my typing speed ever reaching much higher than 50 wpm. It was not unusual for me to turn in my assignment with a hole or two in the paper from attempting to correct my mistakes with a typing eraser. I found the entire typing class experience to be unenjoyable and stressful. Shorthand was worse. I dropped that class after one semester. It is hard to believe I was on a career track to do this every day for the rest of my life.

Then came career day; our guidance counselor stood in front of the classroom jotting on the chalkboard the future plans of myself and my classmates. We came up with four items. Here they are listed in order:
1. Get married
2. Get a job
3. Get a vocational degree (secretary or beautician for the girls, welder for the boys)
4. Get a college degree (engineer for the boys, teacher for the girls)

Luckily for me; shortly afterwards, I had a conversation with a kind neighbor concerning my lack of enthusiasm for a future career in typing. She talked me into attending a four year college and getting a B.S. degree. This same neighbor would eventually become the guidance counselor at my old high school.

After I graduated from college, with my new B.S. degree in hand, I went off to the employment agencies to find a job. At each agency, the first question the interviewer would ask me was, “Do you type?” which was followed by a typing test. Amazingly, I passed one of those tests, just squeaking by with 42 wpm. That led to a series of temp jobs, most of which involved typing letters and forms. Eventually, I would type an invoice or two, allowing me to add a new skill; Accounts Receivable, to my resume. Thus my accounting career had begun and the rest is history.

The following quote by James Burke of Fortune Magazine is appropriate: The typewriter also freed women from the drudgery of the kitchen to become involved in the drudgery of office work. And more important, it conferred on women the social power denied them by men and provided the dynamic to push for political emancipation.

The Alchemist by Paulo Coelho

I picked up this book after reading the following in the Jan/Feb 2008 issue of Pink Magazine:

When asked what book IKEA North American President Pernille Spiers-Lopez would recommend to the 750 woman attending the latest Pink conference, she suggested not a business title but The Alchemist. It is an allegorical novel about a shepherd who leaves the world he knows for the great unknown in search of a promised treasure - and his own personal legend.Giving readers a New Year’s wish, Pink's editor Cynthia Good offers – that 2008 serves up a new opportunity to take chances, to transcend barriers and mistakes, and, as Coelho writes, to “remember that wherever your heart is, there you will find your treasure.”

Always looking for inspiration to keep me on the path towards living my best life, I couldn't ignore a recommendation like this; I had to read this book. Unfortunately, although I enjoyed the fable, the book did not live up to my expectations. For me the tale was too simplistic to be inspiring, I did not find it to be amazing or life changing. I read this book earlier in the year, but I as did Florinda, I found it to be a difficult book to review. I would rate it 2.5/5.

What I did find inspiring, however, was Coelho’s biography written inside the back cover. Paul was born in Brazil in 1947 the son of an engineer and a home worker. He dreamed of an artistic career which was frowned upon by his middle-class household. In the austere surroundings of a strict Jesuit school, Paulo discovered his true vocation to be a writer. Paulo’s parents however had different plans for him. When their attempts to suppress his devotion to literature failed, they took it as a sign of mental illness. When Paulo was 17, his father had him committed to a mental institution twice, where he endured electroconvulsive “therapy.” His parents brought him back there once more after he became involved with a theater group and started to work as a journalist.

Now that is inspiring! Talk about having to face adversity; imagine being committed to a mental institution for following your dreams. And I thought I had it rough when at 17 my father refused to support my decision to go to college.

Do you review your Social Security Statement?

What is a Social Security Statement?
The Social Security Statement is a tool designed to help you plan for your financial future. It provides an estimate of the social security benefits you will receive under current law at age 62, your full retirement age, and at age 70. It also lists estimated benefits if you were to become disabled, family survivorship benefits and whether or not you are Medicare eligible. The Statement briefly explains what it takes to become eligible for benefits. Basically, you must work for ten years to earn retirement benefits, and you must work at least five of the last ten years to claim disability benefits. The statement is updated each year to reflect your latest report of earnings. When you get your statement, you should verify that your earnings record is correct for previous years.

When will I receive my Social Security Statement?
By law, social security statements are mailed out annually. You should automatically receive a statement if you have a Social Security Number, are age 25 or older, have any job earnings on record and are not already receiving benefits (including Medicare). You should receive your statement a couple of months before your birthday.

Why is it important to review your statement?
This is important because your earnings record is what the government bases your benefits on (for retirement, disability, Medicare, etc.) Verifying your earnings record is also important because if the numbers are off (especially if they are off dramatically) it could be an indicator of identity theft or fraud.

What if you didn’t receive a statement?
You can request a statement at any time; information on how to do so can be found on the SSA website.

What if you find an error?
If you discover an error in any of the earnings Social Security has listed other that last year, call Social Security's helpline at 800-772-1213, Monday through Friday, from 7 a.m. to 7 p.m. Have your W-2's or tax return for the incorrect years available.

Why am I writing about this?
Because the earnings record on my latest SSA statement was incorrect as were the earnings record of every employee at my company who had received their statement this year. My earnings statement had zero earnings recorded for 2006 while my earnings for 2007 were listed correctly. 2006 was the year my company transferred our payroll processing to an outside provider, ADP. This switch, for year-end tax filing purposes, was a hellish nightmare (ADP issued our company's W-2's eleven times before they got them right). Our accounting department is still working through the tax implications of this fiasco.

Upon noticing this error, I called the SSA hotline on my own behalf and discovered not only my 2006 wages, but the 2006 wages for every employee in our company was being held in suspense. I then asked my boss if his statement had been correct; his birthday was earlier this year. He didn't know as he had shoved his unopened statement into a file. This led me to believe our employees are not reviewing their SSA statements. It turned out my boss's 2006 wages were also listed as zero, while his 2007 wages were correct. Come on people you need to review these statements. This is your money.

On a positive note, it looks like this will be an easy fix. I sent a copy of my W-2 for 2006 to our local SSA office. On the company's behalf, per SSA instructions, I had the entire correct 2006 wage file resent to SSA.

Managing the Second Half of Your Life

Have you thought about what you are going to do with the second half of your life? One of my co-workers retires in 27 days. When asked what she plans to do with the rest of her life, she didn’t have a clue, other than relax and have fun.

This conversation comes shortly after I had the opportunity to talk to two of our former employees. Both retired at age 62, both are comfortable financially.

Employee A worked as our company’s sales manager for 30 years. Upon retiring, he sold his home and moved to Northern Wisconsin where he and his wife run a seasonal souvenir shop. When asked how he was enjoying retirement, he emphatically stated, “I hate it." He misses the camaraderie of the office; his customers and the thrill of getting the deal. He manages to keep busy, but feels his life has no meaning. He inquired about our business; upon hearing we had just snagged an incredible deal, he was visibly upset. He had not even heard of our current #1 customer.

Employee B worked in our industry 30 years, 15 of them as Operations Manager for our company. He too sold his home and purchased a small fixer upper in Michigan (a lower tax state than Wisconsin). When asked how he is enjoying retirement, he enthusiastically replied “I love it.” He is busy working on his home; is active in his community (he was here as well). He and his wife own a motor home and are planning on traveling south this summer. He also volunteers at our state tech schools where he recruits high school students into the trades. This was an activity he performed while working with our company; enjoying it so much he agreed to continue after retirement. He is also planning on attending a company camping trip Memorial Day weekend.

Many of us long for the day when we can do whatever we want whenever we want. We put a lot of time and effort into calculating how much money we will need when we retire, but don’t put equal preparation into planning what we will actually do; other than travel, visit the grand kids, and maybe do a little volunteer work. Is that enough?

In the Harvard Business Review article, Managing Oneself, Peter R. Drucker discusses the importance of knowing yourself and offers valuable advice for managing the second half of your life: "The one prerequisite for managing the second half of your life: You must begin long before you enter it." Another, noteworthy point; "If one does not begin to volunteer before one is 40 or so, one will not volunteer once past 60."

In the above scenarios, employee B adequately planned for the second half of his life and is happy in his retirement. He continues to perform the aspect of his job he enjoyed the most on a volunteer basis. He is in contact with former co-workers, even attending work social events. Employee A has virtually cut himself off from all contact with former co-workers. He started a new business he does not enjoy. He did not adequately plan for his retirement never realizing how much he would miss sales. If planned appropriately, he could easily have taught sales techniques on a part time basis to entry level salespersons in our industry.

Do yourself a favor begin managing the second half of your life long before you enter it?

Things that make me "Crabby"

1. Co-workers who habitually arrive late to meetings.

2. The personal banker who neglected to tell me I will be charged a .50 cent fee every time I use my new debit card until after I had signed all the paper work. This fee would be charged on debit purchases only not credit purchases. Just curious, isn't a debit charge the whole purpose of a debit card?

3. The gal in my aerobics class who wears so much cheap perfume I feel nauseated by the end of class.

4. The new schedule of aerobic classes; all my favorites are either cancelled, too early for me to attend or so late I won't get home until after 8:00 p.m.

5. My inability to read the signs at the Amtrak station which say, "Meters do not give change," until after I have submitted my money.

Communicate, Communicate, Communicate

Communication is the key to successfully implementing change in your company’s policies and procedures. This was the message I took home from a recent seminar, "Implementing Lean in Administration/Office areas." In order to be successful, change must be communicated properly. It is a basic tenant of human nature to process under communicated change in the following manner:

1. Change is Discovered
2. Confusion & Rumors Ensue (Employees speculate; lean accounting sounds like layoffs. They begin wasting time developing lists of who they think should be laid off).
3. Fear Spreads
4. Resistance Generated
5. Resentment Develops
6. Interest Begins
7. Enthusiasm
8. Excitement

According to the presenter, if change is communicated properly, employees will go straight from step one when the change is communicated to step six where interest develops, skipping steps 2 through 5.

I was reminded of the importance of communication when our Human Resource Manager began a project to create job descriptions for all our employees this week. To kick off this project, she emailed a select group of employees requesting that they create a job description for their position. She gave them a two day deadline, and provided a sample format. She did not give them a reason as to why she was undertaking this project. Immediately, they were confused and fearful. Who could blame them, the media has bombarded us with talk of recession and our company’s sales have been lower than normal. With lighter work loads they assumed they were assigned this task because their job was in jeopardy. Every one of them resisted this project. Ms. HR Manager came to me complaining about our employees attitudes. I relayed my seminar's communication recommendation from above and suggested that she hadn’t explained her project clearly. She mulled my suggestion over for a couple seconds, decided that wasn’t the case stating our employees just couldn’t deal with change.

I disagree, ultimately she had to sit down with each employee, explain the purpose of her project; having a job description is a good business practice plus creating them was one of the tasks she was hired to do. She then had to convince them that by creating a job description they would not be putting their job in jeopardy and in many cases they would find the process beneficial. Only then did they enthusiastically complete the task.

Creative College Financing Triggers AMT

With the increasing cost of college tuition, more families are being forced to get creative with their finances in order to pay their children’s college tuition. In doing so, they may be in for a big surprise at tax time. Two years ago, a couple I know, struggling to educate their three daughters, sold a piece of property to help pay tuition costs. They knew at tax time they would owe a capital gain tax, but were shocked when the additional income also triggered an AMT tax. This past year, this same couple began drawing from a pension, in addition to earning their full time salaries, to help subsidize tuition costs. At tax time, they again found themselves subject to the AMT tax. As more middle class Americans are being hit with the Alternative Minimum Tax, I think there needs to be a better understanding of what this tax is and the impact certain financial decisions have on AMT tax liability.

What is AMT?
The Alternative Minimum Tax or AMT was designed in 1969. Its original purpose was to keep wealthy tax payers from using loopholes (many of which have since been closed) to avoid paying their fair share of income tax. Under AMT, once certain levels of income and deductions are reached; taxpayers are required to add back specific deductions, and pay an additional tax. This is to ensure all taxpayers pay at least a minimum tax.

What are some of the deductions that are required to be added back (disallowed)?
-State and local taxes.
-Medical costs are still allowed, but the AMT requires they exceed at least 10 percent of your adjusted gross income, rather than the 7.5 percent threshold of the regular tax system.
-Miscellaneous itemized deductions, although limited under the regular tax system, are disallowed under the AMT. This prevents the taxpayer from deducting large unreimbursed business expenses.
-Home ownership is not quite so desirable under AMT, while you are still allowed to deduct mortgage interest on both your main and second home, home equity loan interest is restricted. It can only be deducted if the money is used solely to pay for home improvements.
- Your home’s property taxes
- Personal exemptions. The more exemptions you claim the more likely it is you will have AMT liability.
- The Standard Deduction.

Why are more people subject to this tax?
Unlike regular income tax, the AMT tax was not indexed for inflation; AMT brackets have remained relatively constant at 26% and 28% while yearly wage increases have moved taxpayer income uncomfortably close or even into the AMT income bracket realm. To put this into context, AMT was originally created to target 155 filers with income of $200,000 who avoided paying any federal taxes, compare this with the nearly 4 million taxpayers subject to AMT in 2007, 80% of which had incomes between $100,000 and $200,000.

At what income levels are taxpayers affected?
Once you add back the AMT disallowances and run the numbers, AMT may be owed if your taxable income in 2007 was more than:
· $66,250 and you are married filing a joint return.
· $44,350 and you are filing as single or head of household.
· $33,125 and you are a married taxpayer filing a separate return

If the above income levels are met, how are you to determine whether you’re subject to the AMT?
IRS Form 1040 instructions includes a worksheet that may help you determine whether you're subject to the AMT, an electronic version of this worksheet is also available on the IRS website found here, but you may need to complete IRS Form 6251 to know for sure. Personally, I found Form 6251 to be confusing and relied on the IRS website results.

What are the more common AMT “triggers”?
Common AMT "triggers" include claiming a high number of personal exemptions, miscellaneous itemized deductions, and state and local tax deductions. In the example I sited above, the couple's increase in income along with their five personal exemptions and high state and property tax deductions (Wisconsin is a high-tax state) triggered AMT.

Bottom Line: As parents strategize to pay their children’s college tuition, it may me wise for them to meet with a good tax accountant or financial planner before making financial decisions that may seriously impact not only their income tax payments but their long term financial goals.