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(502) 426-0000 ∙ www.Roberts.cpa December 2024 Paper Speaks What Screens Miss
REVIVING THE ART OF LETTER WRITING
I’m unsure how this happened, but we’re already in December! I’m not alone in marveling at how quickly time flies. I suspect that technology is a big reason we’re all moving along so rapidly. With the internet dominating much of our news-gathering capabilities and social interactions, most of our lives are spent clicking buttons on screens. Instead of driving somewhere to meet with someone and shake their hand, we send them Google invites for video conferences. Instead of calling a friend to check in and have an entire conversation with them, we “like” their comments on social media. Naturally, we can do more in less time. While these conveniences offer many advantages, I believe we’re losing sight of something essential: the personal touch. When was the last time you mailed someone a handwritten note? I ask because Dec. 7 is National Letter Writing Day. Learning about this occasion made me reflect on the lost art of expressing your thoughts on paper — and how much receiving letters has meant to me over the years. After my father passed away in March 2007, handwritten notes and cards from people from church filled my mailbox. The same thing happened when my wife, Jennifer, lost her father this year. It was touching that so many people
took the time to write and mail words of love and condolences personally. Emails can get lost in the shuffle or forgotten, but the letters my wife and I read at our times of loss have never left our hearts. As we approach a new year, I suppose I need to take my own advice, click “send” less readily, and visit the post office more regularly. On the business side, direct mail has always been more effective than email marketing, as many people still value things that don’t come through a computer or cellphone. I love that you’re reading these words right now while holding our newsletter. That’s the kind of personalized connection we strive for with all our clients at Roberts CPA Group. Speaking of our firm, I’m pleased to report that things were pretty boring for us this year. That’s not to suggest that our workload and clients were dull, but boring is good at work! We made it through the year without major crises and succeeded by moving right along and doing our best. Of course, we wouldn’t have had such a smooth time in 2024 without our clients’ trust and support. We appreciate you more than words — handwritten or otherwise — can ever say. In contrast, 2024 was very exciting closer to home. My son, Harrison, and daughter, Alexis, continued to enjoy happy and fulfilling lives. Alexis got married in April, instantly expanding our family. Looking ahead, we’re planning a special family trip in 2025 to celebrate Harrison’s graduation from dental school. I have many blessings to be thankful for this year, and I wish you and your family much joy in counting yours. Time waits for no one, and we can all do a better job of making our moments count. As busy as life gets, I hope this holiday season gives you plenty of
time to create new memories with the ones you love — and to write more letters to the people you won’t get to see! If we keep one New Year’s resolution, let it be to grab a pen more often than a keypad. —Kevin Roberts
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A SIMPLE GUIDE FOR PEACE OF MIND How to Ensure Your Will Reflects Your Current Wishes
Whether getting divorced or welcoming a new child, you may need to change or revoke your will to reflect any life changes. Why? Because significant changes can affect how your assets are handled. Common reasons for adjusting a will include marriage, divorce, new family members, financial changes, buying or selling property, or appointing a new guardian for a minor. So, how do you change a will? In the past, people added
Sometimes, you may need to revoke your will but are not ready to make a new one, but simply destroying the current will might not be enough. If other copies of the will exist, a probate court might still consider those copies valid.
Revoking a will is essentially canceling it. Once a will is properly revoked, it no longer exists legally. If you’re considering revoking your will, it’s essential to do so through legal means to ensure your intentions are clear. Only the person who created the will, known as the testator, can revoke it. Once the testator dies, the will becomes legally binding and cannot be changed or revoked. Whether you need to account for new family dynamics, financial shifts, or relocations, ensuring your will accurately reflects your wishes is crucial to avoid future confusion and legal complications. If you are unsure how to proceed or have concerns, consulting with an experienced estate planning attorney can provide peace of mind and help safeguard your legacy.
a codicil, an amendment to the original document. However, codicils can create confusion and legal disputes. They require signatures and witnesses, just like a will, which can make them more of a hassle than they’re worth. A simpler approach is to create a new will entirely. This new document should clearly state that it revokes all previous versions, including any codicils, ensuring your latest wishes are honored without question. Creating a new will is generally no more complex or costly than adding a codicil and provides a clearer legal foundation.
The Gangster, the Starlet, and the Baseball Great
3 SHOCKING CELEBRITY TAX FAILS
gone awry, but here are three other tales of famous people whose fiscal fails landed them in hot water. A Bootlegger’s Rock-Bottom Moment Anyone who’s seen the classic film “The Untouchables” knows about the notorious Prohibition-era criminal Al Capone. Running the Chicago underworld with an iron fist (which, according to the movie, sometimes held a baseball bat to maintain his crew’s loyalty), Capone displayed a ruthlessness that struck fear in the hearts of his adversaries. Surprisingly, it was cooking the books — not killing people — that eventually landed him in prison. In 1931, he received a 13-year sentence for tax evasion. A Mean Girl’s Monetary Mess As one of America’s most beloved child stars, Lindsay Lohan filled movie theaters and won hearts through her roles in such films as “Mean Girls,” “The Parent Trap,” and “Herbie: Fully Loaded.” However, as an
adult actor, her personal struggles have attracted more attention than her big- screen adventures. In 2012, she was hit with a tax lien on her 2010 income after it was revealed that she had also failed to file for 2019. Her total tax debt totaled nearly $250,000 — a hefty bill when considering that she was paid only $100 a day to star in the 2013 film “The Canyons.” A Rose Goes Rotten Baseball legend Pete Rose, who recently passed away at 83, leaves a complicated and controversial legacy. In addition to receiving a lifetime ban from the game for betting, his history of tax evasion left him in debt to the IRS for more than $300,000. Serving a five-month prison term in 1990 did little to change his government-cheating ways, as he was hit with a lien 14 years later to address nearly $1 million in back taxes from 1997 to 2002. Rose may have been a great athlete in his day, but he certainly wasn’t a skilled accountant.
No one is immune to tax laws. History is full of high-powered people who faced massive debts — and sometimes served time behind bars — after ignoring their obligations to Uncle Sam. Willie Nelson (a $32 million tax bill in 1990) and Wesley Snipes (a 28-month prison term for five years’ worth of unpaid money to the IRS) are perhaps the most infamous examples of celebrity finances
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Inspired by GoodHousekeeping.com
Korean Steak Slaw
INGREDIENTS
• 2 tbsp gochujang or sriracha hot sauce • 2 tbsp soy sauce • 3 tbsp sesame oil, divided • 2 sirloin steaks, about 1 lb total • 1 daikon radish
• 1 large carrot • 1/2 red cabbage • 5 green onions, divided • 2 tbsp rice vinegar • 2 tsp sesame seeds, toasted
WINNING THE SAVINGS GAME Smart Money Moves for 2025 “Don’t save what’s left after spending, but spend what is left after saving.” — Warren Buffett As we approach the new year, now is the best time to consider ways to curb your spending and better prepare yourself for the financial ebbs and flows of 2025. Here are a few quick tips to help you plan in the right direction. Avoid convenience with a catch. The biggest difference between cash and credit is that one carries interest, and one doesn’t. Although paying with credit could provide airline miles, cashback, and other perks, it can quickly put you in debt if you put too many purchases on a high-interest card. If you can’t pay off your cards in full each month, review your statements carefully to determine where to reduce your spending moving forward. There’s no point in using credit to pay for a single $6 coffee daily if doing so costs you an additional $438 annually on a card with a 20% interest rate. Letting recreational spending hinder your ability to pay long-term could lead to financial instability and — even worse — the temptation to get cash fast through an online “payday” loan. Avoid this option at all costs, as some loans come with 600% or higher interest rates! You never want to extinguish one financial fire by starting another. Don’t let subscriptions sabotage your savings. Streaming movies on platforms like Amazon or Netflix can be a fun way to spend an evening, but those small monthly fees can add up quickly. Review all your online entertainment accounts to see which ones should go in 2025. You may be surprised to discover a few you don’t use often — or at all — are chipping away at your monthly savings. Assess your liquid assets. When an asset is “liquid,” it can be quickly converted into cash. Common examples include stocks, bonds, mutual funds, and (in some cases) trust accounts. Go through your liquid assets and determine which you could use toward building an emergency fund — something everyone reading this article should have. At a minimum, your emergency fund should be large enough to support you for 3–6 months in case of a health crisis or a sudden loss of income.
DIRECTIONS
1. In a large bowl, mix gochujang, soy sauce, and 2 tbsp sesame oil. Set aside 1 tbsp of mixture to use for dressing. Place steaks in bowl with the remaining marinade and coat. 2. Julienne radish and carrot into strips. Shred red cabbage and slice 3 green onions. Mix the reserved marinade with the remaining sesame oil and rice vinegar, then toss with vegetables in a large bowl to coat. 3. Heat a frying pan until very hot. Fry steaks for 2 minutes on each side for medium rare, brushing with the marinade as they cook. Set aside to rest for 5 minutes, then slice into thin strips. Slice the remaining green onions and add to the slaw. 4. Serve sliced steak over the slaw and sprinkle with toasted sesame seeds.
SUDOKU
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INSIDE THIS ISSUE 1 Time to Get Personal 2 The Best Way to Update Your Will Without Confusion Big Names, Bad Decisions 3 Fresh Finances for Next Year Korean Steak Slaw 4 Spot the Latest Marketing Ploys to Avoid Overspending
Avoid Overspending Through Savvy Shopping
already in debt and strapped for cash. The Consumer Financial Protection Board says this puts consumers at greater risk of piling up more debt than they can afford. Also, returning items purchased this way may not always result in a refund. Don’t apply for every credit card offered. Agreeing to apply for a store credit card seems like a no-brainer when you are offered 20% off for doing so at checkout. What’s not to like about that? It dings your credit score, for one thing. Applying for a credit card results in a hard pull on your credit report. Signing up for loyalty programs can also be self-defeating because they can maneuver you into excess spending to get more points and perks. Also, loyalty programs can discourage comparison shopping, which could otherwise save you money over time.
Don’t focus on monthly payments alone. When making an installment purchase, car salespeople, real estate agents, and other marketers of big-ticket items will often ask you how big a monthly payment you can afford, then stretch the payments out over the maximum period of time to entice you into a larger purchase. But consider the whole cost and how much the interest adds to that total. It may shock you. Also, notice price-anchoring ploys. Retailers often claim a $76 shirt is on sale for $38 — when they never intended to sell it for anything but $38. Abstain from retail therapy! Shopping for fun is a major factor driving consumer debt to a record high. Make a list before you shop, and avoid browsing or shopping with friends. Turning shopping into recreation can easily lead to impulse purchases and spending more than you intended!
Marketers are magicians at luring shoppers to buy more than they intend. Whether you are shopping online or in a store, vendors use a variety of tactics to heighten the allure of their products, helping drive total U.S. household debt to a record $17.3 trillion. To help combat this, here are four financial tips to keep your budget intact and your debt under control. Be wary of ‘buy now, pay later’ offers. These short-term, interest-free loans with fixed payments don’t require a credit check and are quick and easy to obtain. Not surprisingly, they tend to be most popular among consumers
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