1. On getting stuff done:

My daughter is currently trying to rework her major at Berkeley and get a double major.

And she's a little frustrated because her academic advisor is not getting back to her, and she has a time sensitive decision.

So, she asked for some advice: Lexi and Me!
2. The specifcs aren't as important as the attitude I've learned to approach things with, which is what I'll lay out here:

She was waiting for ONE advisor to get back to her.

With a 30 second search, I found 3 OTHER advisors that she could reach out to,
3. Including 2 of the first advisor's bosses.

I not only found their emails, but their direct lines as well, AND for one of them, I even found a Zoom link for open office hours starting in 10 minutes, which I told her to get on.

Her question:

Which one should I do?
4. Answer:

ALL of them until you get what you need.

THAT is the lesson.

She was getting frustrated waiting for one person to get back to her, and my advice was to hit up EVERYBODY by email AND calls until someone gets back to her with the answer you want.
5. Occasionally, I will upset someone who feels overlooked, and I apologize for that, if I need to.

BUT, FAR more often I end up with a problem solved the way I want much, much more quickly that it would have been if I was waiting on one person.
6. Dan Kennedy once said: 'If your business is having trouble, make a list of 10 potention things you could do to solve it.

And then do ALL 10 AT THE SAME TIME until the problem is completely solved, never to bother you again.
7. It was good advice then when he gave it,

and it's good advice now.

Remember, the key phrase is to work on everything at once until the problem is solved,

NOT one thing at a time....wait....and then another thing.....wait somemore, etc, until you're old.

Nope.
8. ALL of it at once.

Patience IS a virtue with some things.

With business, it usually isn't.

/end

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More from @roncaruthers

24 Feb
1. Biggest Tax Myth EVER:

Thinking you'll be in a lower tax bracket when you retire.

This will likely NOT be the case because of the #1 retirement killer:

Inflation.

You will consistently need to receive more money each year JUST to maintain your standard of living
2. At 3% inflation, you will NEED to double your income every 24 years just to keep up.

And, here is something that will blow your mind:

In 1913, the first year income taxes started, the threshold of the lowest bracket was 1% of income up to $20,000
3. Today, in 2020, it is 10% on your first $19,750 of taxable income.

So, the tax is higher and the threshold is LOWER than it was over 100 years ago.

So tax thresholds have NOT kept up with inflation.

Oh, and if you make good money?
Read 6 tweets
23 Feb
1. Joe Biden's Tax Plan:

They're going up.

#shortestthreadever

Kidding.

Well, they ARE going up, so that part isn't wrong, but here are the specifics, as best we can tell....for now*

*subject to change if Uncle Joe changes his mind, so this is hypothetical for now
1b. But, if you want to know what is likely to happen, read on........
2. The maximum tax rate is going up on income over $400,000 a year – from 37% presently to 39.6%. 

Also, you currently don't pay the highest rate until you make $622,000....so the tax is not only going up, but you're getting there sooner.
Read 19 tweets
19 Feb
1. How reverse mortgages work: A Primer.

Reverse mortgages are possibly THE most misunderstood financial instrument out there.

In this thread, I'm going to cover the basics of how they work AND how to use them.

You should pay attention even if you're younger.
2. So, first off: It is a mortgage.

That's it.

JUST. A. Mortgage.

However, unlike a forward or traditional mortgage, this one works, well, in reverse.

So first, let's go over the rules, and then we'll discuss how and when you might want to use this vehicle.
3. To qualify, you can only have one at a time, and it can only be on your main residence, where you reside at least 6 months of the year.

If you're married, at least one spouse has to be 62, except in Texas, where both spouses have to be 62.
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1. Year End Tax Tips:

Yes, there is still time to save money on taxes for 2020....even today.

Here is a list of some of your top options:

A) You can pay your kids up to age 18 up to $12,400 and if they have no other income, they owe NO federal taxes, but YOU get the deduction
2. Next up, you can prepay your expenses up to 1 year, using the IRS Safe Harbor:

This allows cash-basis taxpayers to prepay and deduct qualifying expenses up to 12 months in advance without challenge, adjustment, or change by the IRS.
3. Qualifying expenses include, among others:

-lease payments on business vehicles

-rent payments on offices and machinery

-and business and malpractice insurance premiums
Read 15 tweets
23 Dec 20
1. Should you contribute to an IRA or a SEP IRA to 'save taxes'?

It's the end of the year, and you can contribute to one of these pretty much right up until you file your taxes.

And, for many of you, this is the ONLY tax advice your accountant will give you.
2. But, like my mom used to say 'just because you CAN do something, Ronnie, doesn't mean you SHOULD.'

(I usually did anyways....and whenever I got called Ronnie, my legal name, I knew I was in trouble).

Anyway, you guys know I like math so let's get to the math!
3. So, let's say you're a single guy or gal making 60k a year.

And you're taking the standard deduction, which is $12,400

Your 'take home' pay will be about $46,835.

That means you're paying $13,165 in taxes (including state and FICA taxes,)

Or, roughly 22% of your income. Image
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16 Dec 20
1. How to know when it's time to quit your day job and go full time on your side hustle.

My thoughts.

I got asked this yesterday, and here is the formula I've used with clients that seems to work.
2. First, I recommend that you make AT LEAST 2x your day job income before even THINKING about quitting.

Yes, you can do it on less, but remember: right now, you're getting a steady check while you make side money, so it takes a lot of pressure off of you.

That will change.
3. Also, you are probably going to have to pay more in taxes, and cover your health insurance, so you'll NEED to make more money to take care of those things.

That's why I recommend 2 times your day job income.

Also, unless you work for a start up, you check has been steady.
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