EVERYONE SHOULD PURSUE PEAK PERFORMANCE

I believe the title of this post to be a myth.  

In my business (financial services) I'm deluged with books, websites, videos, training programs, motivational quotes and memes, superstar mentor offers, mastermind groups, activity tracking spreadsheets, apps to kick my ass out of bed, and on and on.  The drive for maximum this and killer that and dominant this has spread out over all walks of life.  If you're not becoming steadily more awesome every day then you're an abject failure.

Now I did consider for a moment that perhaps my revulsion toward these pushes to achieve my ultimate wonderfulness was simply in defense of, and a rationalization for, my contented mediocrity*.  But I realized that the most successful peak performance schemes occur in areas that are easily measured.

If I'm an asset manager, the dollar amount of assets I manage reveals my superiority.  If I sell insurance products, my gross sales are my badge.  If I'm an investment banker the size of the deals is my yardstick.  If I'm an athlete there are a plethora of statistics and measurements.  But how do you measure simply becoming a better person, a better partner, a better citizen?  I'm very interested in that pursuit but have yet to find relevant metrics.  Is it:

• Popularity?  We have an excess of evidence that popularity usually is irrelevant and, in fact, almost a counter-indicator of one's quality as a human being.  
• Wealth?  Ditto.  
• Power?  Yet another counter-indicator.  

 How do we measure what is genuinely important?  Is it even measurable?  If so, how?  If not, how can we at least detect it to aspire to it and assess our progress?

I welcome your suggestions.

Your Constructive Comments are Welcome! 

*No, I don't really believe I'm mediocre.

MYTH : Trump's Social Security Tax Holiday Will Help Employers and Their Employees

Well, this is a solid myth, that's for sure.  Smart and ethical CPAs are recommending that their clients not just walk, but sprint away from the Memorandum Deferring Payroll Tax Obligation.  Let me preface this by declaring that I'm not an attorney and that all of this is my opinion.  But I can read and think. 

First, a little background.

The current IRS Commissioner is Trump appointee Charles Rettig, who, during his confirmation hearing, "told lawmakers he would ensure that the agency is 'impartial and non-biased from top to bottom' and follows the law."  

This seems unlikely, given that Rettig's Beverly Hills law firm specialized in defending wealthy clients against taxing authorities.  Since taking over the IRS, Rettig has slashed 4000 employees, including 19% of enforcement and compliance staff.  Like every single other Trump appointee, Rettig was selected for his ability and enthusiasm to vandalize the very agency to which he was appointed.

So Trump's Memorandum Deferring Payroll Tax Obligations allows any employee with bi-weekly pay of less than $4000 to defer paying of their 6.2% share of Social Security tax.  This appeals to two kinds of Trump supporters:  the wealthier ones who hate Social Security and, including this group, the less well-off supporters who hate taxes and government in general, despite all the benefits they enjoy as a result.

The key word here is "deferring".  What could make this tax easier to pay in the future?  Some tax people are rightly claiming that only Congress has the ability to waive such taxes.  But they've already granted that right to the President in the event of a national emergency, which Trump declared in April due to the [fake, according to him] pandemic.  

In fact, it will simply put employers at risk of fees and penalties.  On top of that, I've seen nothing in the regulations that prevents employers from going after former employees for reimbursement. According to our Senator & Senate Finance Committee ranking member Ron Wyden, "Donald Trump's scam is obvious — juice paychecks before the election and sock workers with a massive tax bill early next year when he’ll be out of office or never have to face voters again. While many businesses are unlikely to go along with Donald Trump’s fake tax cut, billions could be drained from the Social Security trust fund. This scheme is designed to give Donald Trump a talking point — it won’t benefit workers in any way.”*

Whether you're an employee or an employer, don't be seduced by this nonsensical campaign trick.

 

*Thanks to Think Advisor for their excellent article on this and choice quotes.

Your Constructive Comments are Welcome!

Holistic Financial Planning is Pleasant !

The title of this post is a possibility, that holistic financial planning can be fun!  But in my experience that is almost, without exception, a myth.  Because holistic planning involves frank discussions of the following not-so-fun topics:

1. Death- I ask my clients to complete a Life Expectancy calculator.  Approximate longevity is essential for Social Security timing as well as for accumulation spend-down of retirement funds.  Plus, using the calculator saves them the embarrassing questions about their health, habits and genes.
2. Disability- Unless you luck out and leave this world in a sudden manner, old age & sickness are pretty well guaranteed.  Long term care risk is high, as are the costs.  Losing one's job or occupation due to disability is a risk.  And the underwriting gaunlet and high premiums reflect the degree of risk.
3. Divorce- titleing of property, income disparity and beneficiary designations need to be structured so as not to be devastating to the lower earning spouse in case divorce occurs.
4. Politics- Usually considered off-limits, if something political is going on that may affect a client's plans, I bring it back on the table.  A great example is our current mentally and morally unfit President.  What will happen if he succeeds in repealing the Affordable Care Act, in the absence of a viable alternative solution (as opposed to alternative facts)?  What if he meddles in Social Security, as he most likely will?  What if his retaliations against our trade partners is reciprocated and you lose your job?  We need to anticipate and minimize the risk of these near certainties.
5. Religious Beliefs- Also a forbidden topic between most professionals and their clients, religious beliefs may have to be considered.  Some folks believe they don't need to plan, or change their plans, because God wouldn't think of allowing them to go broke.  Ahem.  Just look at all the bad things that are allowed to happen to good people.  Why would you be immune?  I tell of the early Christian Coastal Native Americans saying, "Trust in God but row away from the rocks."
6. Rotten Children-  A plan I have never, ever, in 36 years seen succeed is attempting to buy the love of your rotten children.  Forget about how they got that way and whose fault it is.  You owe it to each other to dig in your heels and protect your retirement assets.  Model for them good self care.  Their unemployability, bad marriages, serial relationships, illegitimate children, drug addictions, perpetual student-hood and disrespect for you and your future are not your problems.  You gave them life and a head start.  Your job is done.

This may be one of the harshest posts in a long time.  But I deal in reality.  Because I want the best possible outcomes for my clients.  Nothing is off the table.

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