Rimberg Online Bookkeeping

Great news on the retirement front! According to Fidelity Investments, managers of retirement savings plans for over 11.2 million workers, this quarter brought an increase in the amount of money people put into their 401(k) accounts for the first time in a year!

Workers raising the amount they placed into funds actually outnumbered those reducing contributions. This is a huge step in our economic recovery, and emphasizes the importance of maintaining equities. The average account balance rose 13.5 percent, which Fidelity attributes to both the rally on Wall Street and higher worker and employer contributions. It just goes to show that maintaining a long-term outlook will reward you in the end!

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I recently came across this article by Annie Fisher from Fortune Online and wanted to share it with you. It raises the importance of staying positive, as it can be the best defense against career stagnation, especially during these hard economic times.

According to Shawn Anchor, head of Aspirant, a consulting firm that advises Fortune 500 clients on how to keep morale and productivity up in these difficult times, a simple and positive attitude is key in remaining resilient, energetic, and influential in order to thrive and succeed through any situation. Anchor has spent many years researching “positive psychology” and he lists key mantras we can all learn a little from in order to remain happy. Below are some of his suggestions:

It is important to keep a gratitude list of things you are grateful for and always look for the good.

Even while working, everyone deserves to have a little fun so go on and forward that YouTube video! Bursts of humor actually induce clarity and creativity.

Decorate your office with things that lead to positive thoughts.

If you find yourself worrying about something, take a few minutes to write down how you’re feeling. Putting thoughts on paper usually decreases the magnitude of the situation.

Keep your friends and family close – relationships are the greatest predictor of success during stressful times, and are also one of the biggest contributors to happiness.

What do you think? What are some of the methods you use to stay positive at work?

We’d love to add you to our list, where we send out bookkeeping and tax saving ideas as well as good business building practices. Just click here to sign up today.

The market may go lower and this may be a great time to rent with interest rates starting to climb, but according to this information, it may be time for you to buy a home!

In my previous blog post on May 27, 2009, I told you why this year could be a great one to buy a home thanks to The American Recovery and Reinvestment Act of 2009 and an increase in home buyer credit. But, a new report from IHS Global Insight says that the average U.S. home is now undervalued by 12.2 percent, which makes it even a more opportune times for buying!

Cities once considered “bubble markets” now contain houses priced well below normal — undervalued between 30 and 40 percent.

The most undervalued area in the country is Vero Beach, Florida, undervalued by 42.5 percent! Other cities with home prices below expected include Las Vegas, NV, Cape Coral, FL, Houston, TX, and Vallejo, CA. As for NYC, the median home price is still just about right (same goes for LA and Chicago).

So if you’re looking for affordability and availability, this may be the time for you! For a list of the 10 most undervalued cities or more information on House Prices in America, check out IHS Global Insight.

We’d love to add you to our list, where we send out bookkeeping and tax saving ideas as well as good business building practices. Just click here to sign up today.

What networking group/s will you join?

Well, now there’s good news for your small business!

On June 8, the U.S. Small Business Administration announced new lender guidelines for the America’s Recovery Capital (ARC) loan program. In essence, the ARC really aims to increase the cash flow of your small business.

Since June 15, SBA’s America’s Recovery Capital Loan Program can provide loans up to $35,000 in short-term relief — no fees, no interests, and 100 percent guaranteed by the government. Loans are backed by small, community banks and do not have to be paid for during the first year. You have five years to repay, and loans will be provided up until September 30, 2010.

As stated in its mission, ARC loans are for “viable small businesses suffering immediate financial hardship.” So check out the ARC loan program and maybe you’ll get that cash flow back too!

For more information on the ARC loan program, check out the SBA website.

Hopefully when it’s your turn to collect social security, the funds will be available. Here’s a few links which will help you to figure out what is your best strategy to collect the maximum that you are legally entitled to. If you have any questions, call me.

Social Security: Why Wait?

It may be tempting to collect Social Security as soon as you’re eligible, but experts say you should resist. Yes there’s the claim “why not collect what is rightfully yours,” but if not only for the risk that you will live a long life, there are also monetary benefits.

You can claim Social Security anytime between ages 62 to 70; however, the longer you wait, the larger your check! You get the most when you wait at least until your full retirement age, which is different depending on what year you were born.

The bottom line is that if you can hold out, you should— strategize for a long life. Of course, the question of waiting varies for each person and each situation, but check out the Social Security retirement estimator to get a precise idea on how to maximize your benefits.

Have you been thinking about YOUR Social Security? Got Questions: robert@rimbergonlinebookkeeping.com

Robert

Did you know that a self-employed business owner filling out a Schedule C with your tax return, you have a much greater chance of being audited than a W2 employee? According to Entrepreneur, the IRS suspects that as a sole-proprietor, you will attempt to either hide income or write off personal expenses as business deductions. When it comes time to select tax returns or audit, they check more self-employed than those who are wage earners!

Seem unfair? Well thanks to  Entrepreneur online, you can protect yourself from the discrimination! Check out 5 Ways to Audit-Proof Your Tax Return, and good luck!

Have you got any audit stories you’d like to share?

Robert

Do we live in a great country or what? The government is now in the automotive business. They want you to trade in that old gas guzzler and buy a brand new hybrid. What they need to do is come up with a comprehensive plan that is going to make this country energy self sufficient in 10 years. Instead, they keep putting band aids on the problem. If our leaders would stop treating us like mushrooms and start treating us as partners, problems would be solved, instead of held over for future generations to deal with. Some inheritance, we are leaving for our children. God Bless America!

Cash for Clunkers

Have you been feeling guilty about that old SUV you bought and the damage it may cause with its awful fuel economy? Or maybe you’re just sick of spending so much money on gas every fifth day? Well this summer might be the perfect time to buy a new, more fuel-efficient car!

Last week, President Obama signed a law passing the “Cash for Clunkers” program essentially giving government subsidies when you “trade up” your old, environmentally inefficient car for a new, environmentally-friendly one.

While the premise sounds great, the parameters are a little stricter. Your old car must be drivable and made within the last 25 years, with an average fuel economy of 18 mpg or less. In exchange for turning it in, you get money toward the purchase of a new car.

If the mileage improvement on your new car is 4 mpg or better, you get $3500 toward the purchase; if it is 10 mpg or better, you get $4500 toward the purchase. The money is slashed off the purchase price at the car dealership and reimbursed by the government.

Of course there are clear benefits as this program will stimulate the auto industry and remove old, inefficient cars from the road, but there is much opposition to the program as well. It takes away from car donations, the pollution caused by manufacturing all the new cars may as well outweigh the benefits of removing old cars, and the program only has $1 billion in financing which officials estimate is only enough for about 250,000 consumers. It might be better than nothing though – any stimulation of the auto industry should be enough to outweigh the negatives. What do you think?

For more information on the “Cash for Clunkers” program, check out the official website at http://www.cars.gov. To find out your vehicle’s fuel economy rating, you can go to http://www.fueleconomy.gov.