Mike De Stefano, Principal
Here’s some useful, straight talk the MAD DOG way…
You always hear people telling you to put away monies into your 401(k), SIMPLE IRA or 403(b) plan at work, right? Here’s a strategy to try, if you can. Let’s assume a $43,000 salary, a 2% annual pay increase, and a 40-year accumulation period. If you defer 4% each pay for those 40 years, you could withdraw $2,097/month at retirement. Instead, increase your contribution each year by a 1% deferral until you get from 4% to 12% each pay. At retirement, you could withdraw $5,234/month!!! The multipliers get crazy.
Here are some interesting statistics regarding “What Does a Leader Look Like?” in business. It is remarkable, in this supposed age of diversity, how many businesses still conform to these stereotypes:
- 30% of Fortune 500 companies’ CEOs are 74 inches or taller (less than 4% of Americans are that tall).
- Voice quality was more important than content when people were asked to evaluate executive speeches.
- Male CEOs with the deepest voices earn $187,000 MORE each year, on average.
- Companies with CEOs who had finished marathons were worth about 5 percent more, on average, than those with CEOs that had not.
Huh? Really?? Don’t worry. All is not lost. Those who haven’t been gifted with height, athleticism and lower voice registers can give themselves a leg up by adopting power poses. One very important thing everyone should do before heading into a job interview, giving a big speech, or attempting an athletic feat is to do 2 minutes of power posing.
What is power posing? It is adopting the stances associated with confidence, power and achievement – chest lifted, head held high, arms either up or propped on the hips. These poses can change body chemistry. High-power poses increase levels of testosterone and decrease levels of cortisol – helping people feel more confident. Low-power poses cause people to feel more stress. If you’re after an executive-level position competing with equally qualified candidates, power poses can give you an edge. Studies have proven this…
Going back to my cage….bark at you soon.
Mike
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Let's Be Frank: How will the new tax law affect you and your business?
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Frank J. Pedicini, CPA
Do you do any entertaining of business clients and contacts?
Do you provide meals to staff at the office?
The new tax law may affect how you do business in these areas. Previous law had an exception to the 50% deductible meal, and that was if a business provided meals to employees at the office or place of business for their benefit, it was 100% deductible. That exception is no longer as of now: all meals are subject to the 50% exclusion. Another significant law change in this area relates to entertainment. This could be things such as tickets to a ballgame or the theatre or greens fees at the golf course. Entertainment expenses are no longer deductible starting in 2018. Consider the amount of money you spend generating or sustaining business via entertainment. What was 100% tax deductible is now 0% tax deductible.
From a bookkeeping perspective, consider tracking travel, meals and entertainment separately. How we account for certain expenditures in 2018 (business promotion vs. education vs. entertainment) and how we segregate those costs might help to mitigate the tax effect of the change in the law.
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The Tax Cuts and Jobs Act Update
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The Tax Cuts and Jobs Act passed by Congress and signed by President Trump in late December includes many changes in business taxes. Of the changes highlighted in
Crain’s Cleveland Business, Vol 39, No. 2, January 9-14, 2018, DMS Management Solutions identifies these two as most pertinent for our clients:
The corporate income tax rate drops. The rate for traditional, so-called C Corporations, falls to a flat 21% from the current range of 15% to 35% and the corporate alternative minimum tax (AMT) is repealed.
More use of cash accounting. Until passage of the new law, businesses with annual revenue of more than $5 million needed to use accrual accounting. Now businesses with fewer than $25 million in annual sales can use the simpler, cash method of accounting.
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Welcome, Rac
hel Faciana!
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Rachel joins the DMS team as staff accountant/consultant.
She is an alumnus of the University of Cincinnati with a double major in International Affairs and Sociology, where she graduated Cum Laude. Upon graduation, Rachel began working for her family’s company, SDF Construction, as the Director of Business Operations. At SDF, Rachel oversaw all business operations including finance, human resources, marketing, and more. In Summer 2017, Rachel began pursuing her Masters of Business Administration in Accounting at Cleveland State University, where she has been a Presidents List recipient. Rachel has extensive skills in Quickbooks and Excel and has proficiency in other accounting software.
Rachel is an active participant in Engage! Cleveland, a young professional organization, as well as an active alumni member of Alpha Kappa Psi business fraternity. For fun, Rachel loves to hang with her dog Kirby, collect vinyl records, and enhance her culinary skills. Rachel currently resides in North Royalton, Ohio.
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