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.

The costs of maintenance

I am a proponent of preventative maintenance and usually follow recommended guidelines; flossing my teeth daily, scheduling an annual physical, following the manufacturers’ recommended car maintenance, but I'm having a hard time believing the $304.65 I just spent for my car’s 30,000 mile maintenance service was really necessary. All of the money books recommend following manufactures' guidelines, plus the service technician at the dealership made a point of telling me not to miss the 30,000 mile service. He did say it could be a little pricy running somewhere in the range of $100-$200. Maybe if his estimate would have been a little closer to the actual cost of $362.46 (without coupons); I wouldn’t feel quite as ripped off. Sure they inspected everything tires, brakes, fluids, fan belt, you name it, but was it all really necessary. The results were great; everything passed inspection and no further work was needed.

With car maintenance I always feel at the mercy of the dealership or repair shop. I remember taking my previous vehicles to those quick oil change places. There were occasions they were so convincing I felt my car would not make it to the next block unless I spent hundreds of dollars for additional services. It was because of these high pressure sales tactics that I stopped going to those places.

One thing I know for sure:
With my next car (which hopefully will not be for several years), I will forego most of the 30,000 mile maintenance.

New Salesperson Lacks Professionalism

Last fall, our company, which is in a male dominated industry, hired our first female salesperson. She was a recent Marquette graduate with a marketing/communications degree. Our current staff of twenty male salesmen had a lot to say about this, “She will never make it.” “Our customers won't take her seriously.” "She's not going to stay; she just took this job to puff up her resume, after getting a year or two of experience she will leave.” "The company will never recoup their investment in her.” In our industry, it takes approximately two years for a new salesman to build their client base and support themselves on commission alone. To help with the transition the company typically pays them a salary in addition to commissions for the first two years.

This particular salesperson has now been with the company a little over 6 months. So far, she has not sold anything to speak of, but this is not unusual considering her territory and the current state of the economy. She has brought new marketing methods to her position; baking brownies for potential customers and even dropping off a pan or two of her homemade lasagna. For the most part, she’s been moving along status quo and the sales staff if not accepting her have stopped being adverse to her presence. They too, have enjoyed a brownie or two.

This past week all of our salespeople converged at one of our locations for our annual spring sales meetings. They attend three days of presentations given by upper management and vendors discussing everything from current marketing trends to the latest products and services. The salespeople spend evenings with their managers at local restaurants and bars where there is always plenty of food and drink. The first night, our female salesperson got a little tipsy and was too hung-over to attend the second day’s presentations. Now, there is an unwritten rule amongst our salesmen, if you drink on the company dime, you show up the next day even if you have the dry heaves. Her absence at first was overlooked probably because she is young and female. But then, low and behold, after spending the day ill in her room, she recovers just in time for dinner and another night of partying.

Drinking problems aside, this salesperson is no longer in college where she may have been able to get away with this behavior. Unprofessional actions such as this may be just the proof that our salesmen’s initial impressions were correct.

Where is the real money made?

I am a regular listener of the Clark Howard radio show. One of his common caller issues is the listener who has recently attended a hotel ballroom seminar pitching strategies to attain great wealth and is concerned that they are about to be "ripped off". These strategies come in different forms; buying manufacturers receivables, purchasing foreclosed real estate, buying over priced investments, and home based-businesses to name a few. The common denominator amongst all of them is the request for further outlays of cash; payments of hundreds and sometimes even thousands of dollars are necessary to receive additional courses, books, tapes, mailing lists and other materials to make this money making endeavor successful. Clark’s response is always the same; if this was such a great money making idea, the presenters would be off making millions, not hawking their techniques in hotel ballrooms.

I couldn’t help but be reminded of Clark’s response as I read Warren Buffett’s biography, “The Making of an American Capitalist,” by Roger Lowenstien. One thing that stood out from the beginning of Buffett's investment career was his aversion to giving stock tips. In the beginning years of Berkshire Hathaway he would not keep his investors informed as to where their money was invested and only provided return updates on an annual basis. Much of the investment purchasing he made for Berkshire Hathaway was accomplished by quiet accumulation.

Think about these questions the next time someone pitches a get rich quick scheme to you. Where is the money really being made? Is it by using the actual techniques being pitched or is it in the pitch itself? Warren Buffett became the richest man on the planet by investing in stock, not pitching subscriptions for stock tip guides in hotel ballrooms for a monthly fee of $19.95.

"Enough With the Bottled Water"

I find my co-worker's bottled water in our work refrigerator and freezer; partially filled bottles are abandoned in the copy room and lunch room. Many of the members at my gym arrive toting their bottled water. I'm sure many prefer the taste, enjoy the convenience and feel it’s safer, but I never understood why anyone would buy bottled water if they had perfectly good tap water. I assume most are somewhat aware purchasing bottled water is not good for their budget or the environment. To further deter them, I recommend they read "The Blue Death", by Dr. Robert Morris where he points out the following:

Bottled water is immensely popular with Americans ~
Americans toss nearly 50 million empty water bottles into trash cans every day. More than 7 billion gallons of bottled water are consumed every year.

The bottles have a huge impact on the environment ~
The production of the bottles themselves requires more than two billion pounds of plastic per year, which translates into millions of barrels of oil consumed and a steady release of toxic waste into the environment. The manufacturer of a single bottle requires more water than the bottle will ultimately hold. The transport of these bottles over hundreds or even thousands of miles by ship, train & truck further adds to the disportionate ecological impact of bottled water.

Bottled water is not necessarily safer ~
Despite the fact that it costs almost a thousand times more than tap water, there is no guarantee that bottled water is safer. Bottled water is less closely regulated than tap water and is not required to meet stricter standards for purity. In fact, a major portion of bottled water in the US is nothing more than tap water in an expensive bottle.

To be sure, many brands of bottled water are superior to tap water and can offer a valuable alternative, particularly when traveling or after a local disaster threatens the water supply.

He closes with ~
But environmentally, economically, and in many cases even with respect to disease prevention, they fall short as a replacement for piped water.

Need I say more?

"Open Every Door"

Networking is a continuous process:
I've been an active member of a professional organization for the last ten years. I maintain this membership for many reasons, but my primary goal is networking. What many new members do not understand is that relationships are developed over time. I have seen new recruits join our organization, attend a meeting or two, distribute their business cards to every member present, then quit when that great job offer does not materialize in a month or two.

I received a call this week from a recruiter whose membership I have mentored in this organization for at least three years. She was recruiting for a great position that paid an excellent salary with a company known as one of the best places to work in the Milwaukee area.

Why Me:
She thought of me, after the employer specifically requested someone with a pleasant personality. I was flattered, this was the second time a recruiter from this organization had thought of me for a position because of my personality. I attribute this to working closely with them on committees within the organization. It is not always easy for me to talk up my attributes, but it is easy for them to see my real personality and work ethic after working closely with me.

My Response:
Unfortunately I had to turn her down. This company is located 45 miles from my home; I am not fond of long commutes or in a position to relocate. I did refer her to two other accountants who would also make great candidates for the position. I asked that she keep me in mind for future positions. I followed up by thanking her again for thinking of me, and forwarding her my resume.

What else I learned from her:
While discussing her business, she mentioned one unsettling experience. A candidate she placed with a company nine months ago had recently called requesting she find her another position. Feeling this was unethical she refused.

This reminded me of the recruiter who placed me with my current firm nine years ago. Since then, I have pretty much entrusted her with my job search. We meet a couple times each year to talk about my current company and discuss my career goals. She is instructed to call me if she sees a position that may be of interest to me. In thinking back, her firm (not her) has called me only once in nine years with an open position. I can't help but think my recruiter’s loyalty is really with my employer who has provided her with a paycheck. It is a good thing I have not been overly serious about changing jobs, but by entrusting her almost exclusively with my job search I may have missed out on some great opportunities.

“Not knowing when the dawn will come, I open every door” Emily Dickinson