Dare to be Daring

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“I believe that the most important single thing, beyond discipline and creativity, is daring to dare.” ~ Maya Angelou

Risk-taking is the act of exposing yourself to potential failure, danger, harm, or loss.

While that might not always sound like a great idea and may push you beyond your personal comfort zone, the adage, “No risk, no reward” rings true regardless of how you feel about potential failures. You have to put yourself out there and move beyond your comfort zone in order to get what you want and to succeed.

History is repeat with those individuals who took the biggest risks and fought against the greatest odds and they were the ones that have been remembered. “You can’t outwit fate by standing on the sidelines placing little sidebets about the outcome of life. Either you wade in and risk everything you have to play the game or you don’t play at all. And if you don’t play you can’t win,” states Judith McNaught.

“It’s not because things are difficult that we dare not venture. It’s because we dare not venture that they are difficult.” Seneca

Thus, dream boldly and reach for the stars. You, and most people, are more capable and able to live their dreams and achieve the big audacious goals if only they’re willing to believe, focus, work hard, be patient and persist. “It seems to me that people have vast potential. Most people can do extraordinary things if they have the confidence or take the risks. Yet most people don’t. They sit in front of the telly and treat life as if it goes on forever,” writes Philip Adams

References:

  1. https://www.inhersight.com/blog/career-development/taking-risks-quotes
  2. https://www.maverickmindsets.com/blog-posts/quotes-on-risk-taking/

“Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did. So throw off the bowlines, sail away from the safe harbor, and catch the trade winds in your sails. Explore. Dream. Discover.” ~ Mark Twain

Lessons on Business and Life

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10 best lessons regarding business and life.

1. Hard work and working smart will always outweigh talent. Nothing beats hard work and working smart. Hard work and working smart outweigh talent and intelligence and are necessary if you want to succeed. This not only means working hard and working smart when things are going well, but working harder and smarter when things are not.

2. Believe in yourself; have faith in your abilities. Be confident enough to acknowledge your talents and accept your faults. No person is perfect or a complete failure, and everyone has faults and talents, no matter how successful or unsuccessful they may be. Don’t waste your time trying to cover up your faults or deny your talents. Instead, accept them, face reality and do your best to work around these faults and to utilize your talents. There is no greater sign of confidence than self-acceptance.

3. Learn and grow from the past. So many people focus on the future, and while having a plan in place is important, it is equally important to never forget to learn lessons and grow from the past. Don’t be afraid to look back. Your past performance actually can reflect future performance. You must make mistakes to learn, grow, build character and to make yourself a better. Make sure to look back on these mistakes and learn and grow from them.

4. Education in yourself is the best investment you can make. Successful individuals know that there is no better investment than an education. That is one reason they read voraciously. Invest heavily and regularly in your education, but only on things that truly interest you and that can enhance your life. And, education must be a lifelong process.

5. Never make a decision based solely on financial gain. Making money can be a huge motivator in all of our lives, but you should never travel down a road just because there is a promise of financial reward. You need to have a real passion and purpose for what you are doing and the choices you are making for your decision to be worth it.

6. Life is about relationships. Give respect to others and love to your friends and family. No matter where you go in the world, you will find that all people share one similar trait: they all want to be loved and respected. Respect every person you meet, no matter who they are or their socioeconomic status. As for your friends and family, love them unconditionally, and never forget to display your love for them no matter how busy you are.

7. Don’t automatically dismiss any opportunity that presents itself. When presented with opportunities, you should never judge or dismiss any opportunity without thought. You may be presented with a business or personal opportunity that is completely foreign to you. Don’t say no to hastily just because it is outside of your wheelhouse or comfort zone — you never know what this new opportunity could mean in the future.

8. Health is Wealth. Nothing is more important than your physical, mental and emotional health and well-being. Never sacrifice your health for anything, not even success and money. Nothing is as important as your health and nothing ever will be.

9. Don’t be afraid to start small. So many people are afraid to get started because they think they need a lot of capital and resources to succeed in this world. Don’t be afraid to start small. Everyone has to start somewhere, and you don’t need a lot of capital or resources to do it.

10. Take risks, but calculate that risk first. It is wise to take calculated risks. In fact, it’s essential to take risks. However, these need to be calculated risks. Taking risks without weighing your cost/benefit options is just foolish and reckless, but calculated risks tend to lead to the biggest rewards.

“If you don’t go after what you want, you’ll never have it. If you don’t ask, the answer is always no. If you don’t step forward, you’re always in the same place.” ~ Nora Roberts

No matter where your journey might take you in life or where your professional goals might take you, there are certain life lessons that you can always apply to your own journey or to your own “road less taken”.

References:

  1. https://www.entrepreneur.com/leadership/the-10-best-life-and-business-lessons-ive-learned-so-far/245385
  2. https://www.inhersight.com/blog/career-development/taking-risks-quotes

“A Plan Rarely Survives First Contact With Reality”.

Mindset Matters: Aging

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Thinking Positively About Aging Extends Life. Positive self-perceptions about aging can prolong life expectancy.

Thinking positively about aging and getting older extends one’s life by seven-and-one half years. This is more than the longevity gained from low blood pressure or low cholesterol or by maintaining a healthy weight, abstaining from smoking and exercising regularly, a study by Yale University researchers have found.

“We found that those individuals who reported more positive self perceptions of aging demonstrated significantly longer survival than those who reported more negative self perceptions of aging,” said Becca Levy, assistant professor in the Yale University Department of Epidemiology and Public Health.

Researchers found that those respondents with more positive views on aging live longer, even after taking into account factors such as age, gender, socioeconomic status, functional health, self-reported health and loneliness.

“We found that the median survival of those in the more positive self perceptions of aging group was 7.6 years longer than those in the more negative aging self stereotype group,” the authors said.

The effects of positive attitudes about aging had a greater impact on longevity than low blood pressure and cholesterol, each of which is associated with a longer life span of about four years.

Positive attitudes about aging also had a greater impact on longevity than lower body mass index, not smoking and regular exercise – each of which extends life by one to three years.

“Our study carries two messages,” the authors said. “The discouraging one is that negative self perceptions can diminish life expectancy; the encouraging one is that positive self-perceptions can prolong life expectancy.”

References:

  1. https://news.yale.edu/2002/07/29/thinking-positively-about-aging-extends-life-more-exercise-and-not-smoking

Taxing Unrealized Gains: A Politically Dum Ideal

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“Honestly, I [Mark Cuban] don’t think Elizabeth Warren knows that’s all what she’s talking about when she deals with this. I think she just likes to demonize people that are wealthy, and that’s fine, it’s a great political move for her, but I just don’t think that they really understand the implications of taxing unrealized gains.” ~ Mark Cuban

U.S. Senator Ron Wyden, D-Oregon., has proposed a so-called mark-to-market version of the capital gains tax. Put more simply, investors would pay capital gains taxes each and every year in which their assets go up in value, instead of only when they are sold.

Additionally, President Joe Biden wants to introduce a new tax that targets the wealthiest families in the country. It’s called the Billionaire Minimum Income Tax—except that it doesn’t only tax billionaires, it isn’t a minimum tax, and it’s not really a tax on “income” either. But it is a tax . . . so at least they got that part right!

A wealth tax would apply to assets traded in liquid markets, like stocks and bonds, and to illiquid assets like real estate, private companies and complex investments.

This tax on unrealized gains would be not only difficult to implement but also could devastate markets, especially liquid markets, where stocks, bonds and commodities trade.

The annual tax would also apply to illiquid investments like the value of a private company, real estate and other complex investments.

This means that every year, these assets need to be revalued to determine if their worth went up or down (you can write off the estimated loss if the value of the company, or real estate, if realized), but this means annual appraisals for essentially every investment you own.

Unrealized Capital Gains

Capital gains—which are profits (or potential profits) from an investment that goes up in value after you buy it—can either be realized or unrealized.

Unrealized capital gains show you how much your investment has increased in value before you sell it. Once you sell an investment for a profit, you now have realized capital gains.

The difference is that unrealized gains are only on paper—they’re not really real —while realized gains represent real money that’s in your pocket.

Whenever a stock or investment you own is worth more than what you bought it for, you can sell it for a profit—and those profits are called capital gains.

If you decide to hold on to the stock and not sell it, then what you have are unrealized capital gains. After all, you can’t just walk up to your grocery store cashier and pay for milk and eggs with your stock—no matter how much it’s worth on paper.

Problems With an Unrealized Capital Gains Tax

There are three significant reasons why any proposal to make this a reality probably won’t make it too far.  

1. A new unrealized capital gains tax would be a headache to enforce.

For a tax like this to work, thousands of taxpayers would need to evaluate the value of all of their assets every single year. That raises the question: How in the world would the IRS—which is already understaffed and overburdened as it is—be able to audit all those filings?3

2. The proposed tax probably doesn’t have enough support in Congress.

“wealth tax” proposals have hit a brick wall on Capital Hill every time it has been proposed. It doesn’t look like this one is any different.

It’s important to remember, Congress treats the release of the budget from the White House more like a list of suggestions than something that’s written in stone.

3. A tax on unrealized capital gains might be unconstitutional.

It may be ok legal to tax unrealized capital gains. The Constitution makes it extremely tough for the government to impose direct taxes. In fact, Congress had to pass a constitutional amendment just to put a federal income tax in place.6

Basically, any tax that is passed must be spread evenly among every person in every state. And a tax on unrealized capital gains could be considered a direct tax because it’s a tax on the personal property of a select group of people.

References:

  1. https://www.foxnews.com/media/mark-cuban-screw-you-elizabeth-warren-declares-her-everything-wrong-politics
  2. https://www.cnbc.com/2019/04/03/top-democrats-proposed-capital-gains-tax-would-be-devastating-for-markets.html
  3. https://www.ramseysolutions.com/taxes/unrealized-capital-gains-tax

Beware: Growing Auto Thefts of Kias, Hyundais

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Brazen TikTok-led social media car theft challenge is targeting certain Kia and Hyundai models

The surge of Kia and Hyundai vehicle thefts across the U.S. have been fueled by TikTok-led social-media challenges targeting certain models of the cars because they are so easy to steal. The stolen vehicles typically are used for joy riding or to commit other crimes.

The issue affects some models of Kia built between 2011 and 2021 and certain models of Hyundai between 2016 and 2021.

Police departments from Atlanta to Seattle have warned about increases in thefts of Kia and Hyundai vehicles. The thefts are affecting Hyundai and Kia models because crooks only need to break in and use a USB cable to drive the vehicle away. Making the situation worse, there are videos on social media demonstrating how to pull off this crime.

The affected vehicles allegedly don’t have engine immobilizers, according to Automotive News. This makes it possible to plug the cord into a certain spot and start the powerplant without needing the key or fob.

A group of lowlifes going by the name “Kia Boys” on TikTok social media is reportedly posting videos of stealing the affected Hyundai and Kia models. They then show themselves joyriding in these vehicles.

In Chicago, 601 Kias and Hyundais were reported stolen in August, compared with 58 in August 2021, according to data released by the Cook County Sheriff’s Office.

In St. Louis, 3,970 motor vehicles have been reported stolen this year through Aug. 29, up from 3,784 for all of last year, according to the St. Louis Metropolitan Police Department. Of the cars stolen this year, 48% were Kias or Hyundais.

The companies are facing numerous lawsuits seeking class-action status by owners in several states, alleging that the cars are defective. Hyundai Motor Co., based in Seoul, owns about a third of Kia Corp.

Hyundai and Kia say they are aware that social-media campaigns are targeting certain years and models of their cars. They say more recent versions of the models are equipped with a device called an immobilizer matched to a key with a chip that makes them harder to steal.

To learn more about how you can protect your vehicle against theft, you are encouraged to reach out to your vehicle’s manufacturer or local police departments.

Manufacturers request that you have your vehicle identification number (VIN) readily available, which can be found on your vehicle’s registration.

Hyundai customers who have questions can contact the Hyundai Consumer Assistance Center at 800-633-5151.

Kia customers with questions regarding their Kia vehicle should contact the Consumer Assistance center directly at 1-800-333-4542 (Kia).

References:

  1. Joe Barrett, “Police, Car Owners Wrestle With Growing Thefts of Kias, Hyundais”, The Wall Street Journal, Sept. 8, 2022. https://www.wsj.com/articles/police-car-owners-wrestle-with-growing-thefts-of-kias-hyundais-11662638401
  2. https://www.motor1.com/news/602283/some-hyundai-kia-models-can-be-stolen-with-just-a-usb-cable/

Inflation Reduction Act and IRS Enforcement

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Inside the Inflation Reduction Act is $80 billion in new funding for the IRS over the next 10 years. More than half of that new funding is slated for increased enforcement, including 87,000 new agents.

The president and IRS Commissioner say they won’t go after anyone making less than $400,000 a year with the increased enforcement. But, in reality, they won’t go after any wage earners making less than $400,000 on a W-2.

Yet, small business owners don’t appear to be included in this limitation. Thus, many law-abiding small business owners and high-net-worth individuals will find themselves the target of increased scrutiny, enforcement and costly audits.

If Congress were accurate, this bill would be called the Small Business Disruption Act, writes Tom Wheelwright, CPA, CEO of  WealthAbility, and the bestselling author of  Tax-Free Wealth: How to Build Massive Wealth By Permanently Reducing Your Taxes.

Bottomline, high net worth individuals, growth-minded entrepreneurs, small business owners and strategic investors need a plan for the IRS pending increased enforcement.

Here are three ways, according to Wheelwright, to protect yourself from the upcoming onslaught of audits.

1. Get a CPA Who Isn’t Afraid of the IRS

The question isn’t will you get audited by the IRS; it’s when. The IRS has been getting more aggressive in how it approaches certain types of taxpayers for years. Rather than make an effort to root out actual tax cheats, the IRS has been challenging legitimate tax incentives.

You’ll need a CPA who isn’t afraid to stand up to them. As the client, you should never speak with the IRS. That’s what your CPA is for. If your tax advisor seems uncomfortable with this idea, that’s a clear sign that it’s time to make a change.

2. Make Sure Your CPA Is Preparing Your Tax Return in Ways That Minimize Your Chance of an Audit

While you may not be able to avoid an audit forever, there’s no reason to position yourself at the front of the pack. There are choices that your tax preparer makes in creating your return that will either raise or lower potential flags to the IRS. All of these choices are legal options, but the terminology and methodology make a difference.

Ask your CPA for specific examples of how they are reducing your risk of an IRS audit. You want someone who can give you a clear plan and who demonstrates a level of confidence that reassures you they can deliver.

This shouldn’t mean missing out on tax deductions to which you are entitled. Missing out on tax incentives and deductions is like making a voluntary donation to Washington, D.C. No solid tax strategy makes this tradeoff.

3. Invest in Education and Advice

The government offers many compelling tax incentives to encourage investment. One of the keys to tapping into these incentives is ensuring you have the information and guidance you need to maximize your results. Take the time to learn how these programs work and, when needed, bring in an expert.

It’s not enough to have the right technology and equipment at the right price. You need to make sure you’re also structuring and documenting your purchase to maximize the available tax incentives.

With the IRS bearing down on small business owners, now is the time to surround yourself with high-powered tax professionals who will protect your interests.

References:

  1. Tom Wheelwright, What The Inflation Reduction Act Could Mean For You, Worth, August 22, 2022. https://www.worth.com/inflation-reduction-act-irs-80-billion-funding-increase-audits/

I Am What I Choose To Become

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“I am not what happened to me, I am what I choose to become.” – Carl Jung

A happy life is a life with purpose and meaning. If you had in your possession every penny on earth, and all the material possessions you desire, it would still give you no guarantees of happiness, and certainly no meaning.

Money or possessions will not give your life purpose and  meaning – but meaning does

With purpose and meaning in your life you can face the inevitable challenges of life without fear… With purpose and meaning in your life you can let go of the past, because there is always a brighter to work toward, to believe in… tomorrow.

Purpose and meaning give you reason to get up in the morning… enthusiasm to go about your day, purpose and meaning for living.  Kindle a light in the darkness of your being. Discover who you are, develop a life of meaning and purpose, and accept every inevitable challenge that comes your way.

Whatever happens in your life is not reality, but rather your interpretation of reality.

On one of your best days, a challenge appears, and you deal with it, with presence, with confidence, with competence… Then, the challenge disappears, perhaps even turns into a blessing… a new understanding.

On one of your worst days, the same challenge appears, you react angrily, unconsciously, the challenge turns into a bigger issue, a larger problem and consequently affects your life and others in a much bigger, not so pleasant way.

It was the same challenge and it depends how you look at it.

“The least of things with a meaning is worth more in life than the greatest of things without it.” – Carl Jung

 

  1. https://www.fearlessmotivation.com/2021/02/03/carl-jung-i-am-what-i-choose-to-become-must-watch-motivational-video

Exercises for People Over 50

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Physical activity is key to staying healthy as you age.

Regular physical activity is one of the most important things people can do to improve their health. Moving more and sitting less have tremendous benefits for everyone, regardless of age, sex, race, ethnicity, or current fitness level.

The Physical Activity Guidelines for Americans recommends at least 150 to 300 minutes of moderate aerobic activity of exercise—like brisk walking or cycling —each week.

Adults also need resistance training, muscle-strengthening activity—like lifting weights or doing push-ups—at least 2 days each week.

Walking: You can walk virtually anywhere, anytime, and at any age. No matter where you are fitness-wise, you can almost always take a few steps. You can do it alone or with a friend, inside, outside, with music, to a video, in a park, or in your yard. The health benefits of walking are limitless.

Core: Your core muscles, or abdominals, are the muscles around your stomach. Strong abdominals play an important role in good posture, respiratory function, and low back health.

Yoga: If you prefer something more meditative, or you’d like to increase your flexibility, balance, and focus with yoga or tai chi.

Strengthening:  Done with fitness equipment, household items, or your body weight. It’s recommended that you perform strengthening exercises at least twice per week and that you target the large muscle groups each time. Always be careful when doing strengthening exercises and monitor your technique to prevent injury. You can also try wall push-ups, bodyweight squats, or hamstring curls with just your bodyweight to build strength.

Sports: Pick your favorite one to do alone or with your partner. Tennis, golf, cycling, running … you name it. Anything that uses your full body and gets your heart pumping will be beneficial.

References:

  1. https://www.myhealth.va.gov/ss20161101-five-exercises-for-people-over-50
  2. https://health.gov/sites/default/files/2019-09/Physical_Activity_Guidelines_2nd_edition.pdf

Labor Day

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Labor Day is an annual celebration of the social and economic achievements of American workers, which is observed the first Monday in September.

Labor Day weekend symbolizes the unofficial end of summer for many Americans. It is celebrated with parties, street parades and athletic events.

The holiday is rooted in the late nineteenth century, when labor activists pushed for a federal holiday to recognize the many contributions American workers have made to country’s strength, prosperity, and well-being.

The first Labor Day holiday was celebrated on Tuesday, September 5, 1882, in New York City. On June 28, 1894, President Grover Cleveland signed a law making the first Monday in September of each year a national holiday.

References:

  1. https://www.dol.gov/general/laborday/history
  2. https://www.history.com/topics/holidays/labor-day-1

Simple Truths about Inflation

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Five simple truths embody most of what we know about inflation, according to Milton Friedman, Ph.D, American economist and a Nobel Prize in Economic recipient:

  1. Inflation is a monetary phenomenon arising from a more rapid increase in the quantity of money than in output (though, of course, the reasons for the increase in money may be various).
  2. In today’s world government determines – or can determine – the quantity of money.
  3. There is only one cure for inflation: a slower rate of increase in the quantity of money.
  4. It takes time – measured in years, not months – for inflation to develop; it takes time for inflation to be cured.
  5. Unpleasant side effects of the cure are unavoidable. 

 

The money supply

The money supply is the stock of money in the economy. It is determined by the roles and uses to which certain physical and financial assets are put.

Money performs a number of roles in our economy. Money functions

  1. as a medium of exchange;
  2. as a unit of account;
  3. as a store of value; and
  4. as a means of making payments inter-temporarily, i.e., over time. Its most obvious role, the one everyone is familiar with, is as a medium of exchange

The Money Aggregates (M1, M2 and M3) are money supply measures are that are meant to reflect differing roles of money;

Money Stock M1 — M1 is made up of notes and coin and several other financial instruments that the general public may not consider to be money. However, the Federal Reserve includes them because they are used as a medium of exchange and thus, on that account, perform a monetary function. Consequently, M1 is composed of currency in the hands of the public, checking accounts at commercial banks, deposit accounts against which checks can be written, and traveler’s checks issued by institutions that are not banks.

Money Stock M2 — M2 is a broader measure of the money supply than M1. It counts as money not only those financial instruments that generally act as a medium of exchange but also act as a store of value, another important function of money. Therefore, M2 includes M1 plus three other types of financial assets. These are (i) savings deposits, including money market deposit accounts; (ii) fixed deposits less than $100,000; and (iii) and retail money market mutual funds.

Money Stock M3 — M3 consisted of time deposits $100,000 and over, repurchase agreements (RPs) larger than $100,000 and longer than one day (called term RPs), and institutional money market mutual fund accounts.

Sometimes, M0 is used to denote central bank money, which consists of coin and currency in circulation, cash in bank vaults, and balances held in reserve accounts at the central bank by commercial banks and other depository institutions. In the U.S., M0 is called the “monetary base (MB).”

MI measures money used as medium of exchange, while M2 measures money used as store of value.

References:

  1. https://corporatefinanceinstitute.com/resources/knowledge/economics/milton-friedman/
  2. https://businessterms.org/money-supply/