My name is Mark Goodfield. Welcome to The Blunt Bean Counter ™, a blog that shares my thoughts on income taxes, finance and the psychology of money. I am a Chartered Professional Accountant. This blog is meant for everyone, but in particular for high net worth individuals and owners of private corporations. My posts are blunt, opinionated and even have a twist of humour/sarcasm. You've been warned. Please note the blog posts are time sensitive and subject to changes in legislation or law.
Showing posts with label Boomer and Echo. Show all posts
Showing posts with label Boomer and Echo. Show all posts

Monday, January 28, 2013

Hot Diggity Dog

Reggie and Whitney
Pic by Trudy Rudolph
Did you ever wish after a hard day’s work that you were a dog? What a life. Wake up and go to the bathroom, get fed, play and/or walk, get a snack when your guilty master goes to work, try to have sex with the next door neighbour’s dog, take a nap (a long one if you were successful with the dog next door), go for another walk, greet your master(s) at the door, lick them and get a cookie, get fed, watch some TV, go for yet another walk and then back to sleep. All this must be done while being massaged, patted and kissed by family members. Then if you are real lucky you get a $12,000,000 inheritance or an $8,000,000 mansion and $3 million trust fund.

Since this is a financial blog, the thin thread of finance in my post today will be the cost of owning a dog (Actually, after last week's brain numbing three part series on small business owners remuneration, I needed a less taxing topic). I have two dogs, Reggie and Whitney, both schnauzers (see picture). Reggie the male and larger dog is a half-brother to Whitney (see the first paragraph about trying to have sex with the dog next door. In this case, Reggie and Whitney’s mother was successful, or at least the neighbour's dog was successful).

I have had several dogs during my lifetime and I have typically passed on dog insurance. Boomer of Boomer and Echo (Robb Echo) wrote an excellent article on how much we spend on our pets. In the article Boomer noted that the average dog owner spends $1,800 a year. I got the feeling Boomer found this to be on the high end. So being the anal accountant I am, I went back to look at my Quicken data for the last three years and found my annual cost per dog was closer to $2,800 a year. Ouch. Last week in Carrick on Money, Rob Carrick posted this article on the lifetime costs of owning a dog, which I consider on the low end.

The major reason my costs are higher than the “supposed average” is that when my kids went off to University a couple years ago, we decided to hire a dog walker a couple days a week. Our dog walker is also our dog's trainer. She is publicity shy, so I will not mention her name, but she is a great trainer and walker and loves the dogs. That being said, two things became glaringly evident: dog walking is a nice gig if you can get 4-6 dogs for each walk, and we could easily reduce our costs if we cut out our dog walker.

The other Costs


Food – $65 for each bag of food (special food required due to Whitney having crystals in her urine), so around $800-$900 a year in total.
Grooming – $110 ($55 each dog) for grooming, so around $500 a year.
Vet costs – vaccinations, heart worm medication, check-ups, (each dog has required an operation and had some skin infection); so from $1,000 to $2,000 a year.
Kennel costs – when on vacation if a family member cannot take the dog (we are lucky, often our breeder takes in our dogs at a reasonable cost), the costs of boarding can be as high as $400-700 per week for both dogs.  
Dog singing lessons- just joking, but check out Reggie and Whitney singing. Whitney actually sings on demand. She is often the star attraction at family gatherings and some relatives start singing on purpose to get her crooning.

I am sure many readers are thinking I am nuts for spending that much on our dogs, but if you are a dog lover, you understand this. If not, you never will.

Rant


The great “dog’s life” I discuss in the first paragraph, is unfortunately dependent upon the dog being purchased or adopted by a great family. Many a dog has been mistreated, abused or worse by miscreants who had no right owning a dog. If I ran the court system, any kind of criminal infraction against dogs, or any animal for that matter, would be treated the same ways humans are and would be interchangeable in court sentencing (although we don't exactly levy heavy sentences for many human infractions). Anyways, I am off on a tangent, but now I feel better.

The blogs posted on The Blunt Bean Counter provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

Tuesday, June 12, 2012

The Blunt Bean Counter noted in The Globe and Mail

Thanks to Preet Banerjee for referencing me today in his Globe and Mail column. His column today is titled "Share your family fortune now to reap the rewards". Preet is a well-known financial expert, who writes a column for the Globe and Mail, is the money expert on the W Network and is the blogger behind the blog WhereDoesAllMyMoneyGo.com. I am not sure if he still has another real job :)

I would also like to give Preet props for participating in my Bloggers for Charity initiative, in which he raised $5,000 for charity. He is obviously an altruistic financial guy; yes, I know that term is usually an oxymoron.

This is the fifth time that I know of, that one of my blogs has been at least in part an inspiration for a newspaper column. Preet's column today quoted from my blog "A Family Vacation- A Memory worth not Dying for". Personally, it is self-satisfying when my blogs provide an inspirational thought or idea for others, given the time and effort required to create many of the blog posts.

I am particularly pleased that only one of the inspired newspaper columns has been an income tax based article. I look at my income tax blogs as loss leaders. I write income tax blogs since they show a professional competence (or incompetence) and they fill an information void since I think there is only one other mainstream blogger (Canadian Tax Resource) doing such that I am aware of. 

However, what I really enjoy writing are my blog posts on how money and finances impact families, relationships and the psyches of individuals. After 25 years of practice as a CA, I have seen most of what is to be seen in that regard, so I write from a perspective of experience.

Since I have severe restrictions on site advertising as a Chartered Accountant, I am not blogging for financial gain (although I do get the occasional client from my blog), but mostly because I enjoy doing so and as such, I appreciate it when columnists such as Preet, Roma Luciw, Rob Carrick and other financial bloggers, most notably Boomer & Echo, Canadian Capitalist, Big Cajunman, Michael James, Jim YihMy Own Advisor and Money Sense Online appreciate my blog posts whether as an inspiration for a column or as a recommended read. Thanks!

The blogs posted on The Blunt Bean Counter provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

Monday, March 19, 2012

Do you need a Professional Accountant to prepare your Personal Income Tax Return?


A while back, Robb Engen, who is a rising star in the financial blogging and writing world (the Echo half of Boomer and Echo and writer for the Toronto Star’s Moneyville) asked me when should someone engage an accountant?

Some of the considerations I forwarded to Robb are discussed in a recent Moneyville blog he wrote titled Why I'm using a tax accountant this year.

Today, I would like to expand on this topic and discuss when you should engage an accountant to prepare your personal income tax return. I would suggest that you always should engage an accountant if you have a corporation.

In general, unless you have self-employment income, commission income, rental income, or significant investment income, an accountant will be somewhat limited in the planning they can do for you.

I say this because, if you do not have these sources of income, an accountants experience, discretion and know-how are pretty much muted and you may as well purchase an income tax software program and file your income tax return yourself. That is not to say you may not want to engage an accountant on a one-off basis where required, it just means you are most likely paying for services you do not require if your personal return is simple.

Just so I don’t have a hundred accountants in an uproar, saying that I am steering away business from the profession (although some accountants are not keen to take on personal tax only clients anyways), I also suggested to Robb that you can look at an accountant as insurance. Like life insurance, or disability insurance, you don’t like paying it, but when you need it, you are glad you have it; although, at least we provide a yearly tax return with our yearly charge. 

I told Robb that there may be years when an accountant may not provide much in the way of income tax planning, but there will be a year somewhere along the line, when your accountant may provide advice that covers their fees for the next ten years and part of the reason for the tax savings may be your accountant’s familiarity with your personal situation.

I further suggested to Robb that another reason many people like having a relationship with an accountant, is because when they have a question or have a significant issue such as a new job offer, inheritance or they have lost their job, they can call someone they know who will accept their call and who understands their personal situation. 

The aforementioned situations are typically very stressful, and are often subject to severe time constraints in which a significant financial decision must be made. Without having an established accountant relationship, you may not be able to find someone who can assist you on a timely basis and/or is willing to drop current client work to assist someone with whom they have no prior relationship. That may sound harsh, but it is the reality for many established professionals, be they accountants or lawyers.

Finally, where you have a relationship with an accountant, they may provide unsolicited value-added advice in respect of such financial matters as wills, estate planning or how to deal financially with your children. For example, I recently had a corporate client come in to drop off their personal income tax information. They made some comment about one of their children that led me to ask if they had updated their will recently (which they had not). I then asked if they had upgraded their life insurance to account for the income tax they would incur if they passed away because of the increase in the value of an investment they had (they had not). I then asked them how that investment would be split with an arms-length partner if either of them died (we had discussed the issue before but they still had not officially addressed this in a legal agreement). All these issues are important and will hopefully be addressed in the near future by my client.

Now, ignoring the fact you are probably thinking I have a fixation with death, these are the kind of “add-ons” many accountants provide in the course of working with a client.  

In my opinion, if you have the types of income I note at the outset, I would suggest engaging an accountant is worth the cost. However, if you do not have these types of income, you have to weigh whether the less tangible benefits I note above are worth the cost of the accountants tax preparation fee.

The blogs posted on The Blunt Bean Counter provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

Monday, November 21, 2011

Bloggers for Charity

Bensimon Byrne one of my firm’s clients and a very successful advertising agency, deserves recognition for raising almost $100,000 for the United Way over the last four years. Every November they have a variety of events to fund raise on behalf of the United Way. One of the events includes an auction where friends, clients and suppliers of the firm donate services or goods that are then auctioned off.

Our firm having no goods to offer donates services; last year bidders could win a free tax planning and wealth meeting with yours truly, one of the most prized auction items :). This year, I considered auctioning off a free Guest Blogger spot on my blog, which got me thinking, why not have other bloggers do the same thing Canada wide, to raise money for charity?

I have thus enlisted the help of five of the best known financial bloggers in Canada; Boomer & Echo, Canadian Capitalist, Michael James On Money, Canadian Finance Blog and the Retire Happy Blog. Each of them have agreed to participate in Bloggers for Charity (see downloadable badge below) and tomorrow will nominate five other bloggers to join the Blogger for a Day effort. All bloggers, should feel free to join the effort (this initiative is not limited to financial bloggers) whether nominated or not and encourage their blogger contacts to join the Bloggers for Charity initiative.

For my readers, I know many of you have latent writing aspirations, so please feel free to bid and let the writer in you free. Please send your bid to my email at bluntbeancounter@gmail.com.

Here are the so-called rules:

1. Each blogger will auction off the opportunity to write a guest post on their blog.

2. All bids will be made in confidence to the blogger’s email account. The blogger at their discretion can email back bidders the current top bid or note the amount of the leading bid on their blog to encourage bidding.

3. The auction will close on December 16, 2011. The blogger will notify the winning bidder by email.

4. The winning bidder will be required to send the blogger a copy of a donation receipt, dated between December 17th and December 31st (personal information can be blacked-out) to confirm the donation has been made. (This donation will be tax deductible to the winning bidder as long as the donation is made to a registered charity).

5. For unanimity amongst bloggers, it is suggested that January 17, 2012 be the date all the Blogger for a Day posts are posted.

6. The winner can write a post on any topic (subject to censorship by the particular blogger), although in the spirit of the contest, it would be great if the winning bidder wrote about a charity or charitable experience, but that is not a requirement. The only rule is that the guest post cannot be a marketing piece. However, at the bottom of their post, the guest blogger can provide their name, name of their company and a brief description of their company and its products. Alternatively, the guest blogger can remain anonymous.

7. All bloggers who participate are asked to email my assistant Lynda at Lynda@cunninghamca.com to note their participation and then to email Lynda with their winning bid so I can tally the donations received. All individual donation totals will be kept confidential.

8. Bloggers participating in the Bloggers for Charity initiative can download a badge (see below) to denote their participation.

9. All participating bloggers will be noted below as they join the initiative.

LIST OF BLOGGERS


Boomer & Echo                           Canadian Capitalist

Michael James On Money            Canadian Finance Blog

Retire Happy Blog                        Financial Highway

Canadian Financial DIY                Where Does All My Money Go

Young and Thrifty                         Canadian Personal Finance Blog

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The blogs posted on The Blunt Bean Counter provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

Wednesday, September 21, 2011

Happy Anniversary to Me

I posted my first blog “Let’s See Where This Goes” on September 20, 2010. One year later I am still blogging away, with some people other than my family reading.

In looking back at my first year, my first break was when Seeking Alpha asked if they could publish Resverlogix: A Cautionary Tale, a blog I posted in late November 2010. Seeking Alpha published this blog in January 2011.

I was also fortunate to be recommended by such noted bloggers as Larry Macdonald, Ram Balakrishnan the Canadian Capitalist, Jim Yih of the Retire Happy blog, Michael James and Mike Holman of Money-Smarts. In addition, Jim was kind enough to provide some initial guidance and Tom Drake of the Canadian Finance Blog and Money Index provided some savvy technical advice. None of these bloggers needed to consider my blog or help me in any way, but they did and I appreciate it.

In addition, the Globe and Mail has also contributed immensely to the growth of my blog. Rob Carrick has mentioned me numerous times in The Reader and Dianne Nice and Roma Luciw have been kind enough to feature me in their columns. I would like to thank all of them for being receptive and willing to listen to some of my ideas.

Finally, I am flattered to have been asked to write guest blogs for Jim, Ram and Boomer and Echo.

Since several of my blog topics are income tax related, the blogs can sometimes be somewhat complex. I have attempted to simplify these topics and explain in non-technical terms where possible, and I hope I have made some of these more complex topics understandable to my readers.

I also strive to write original pieces where possible. Although very few topics are original to financial bloggers, I always write my blogs first, and then check to see what was written previously. In this way I at least sprinkle my blogs with some originality. I have received a few emails complementing me on the original nature of many of my blogs, which reinforces my desire to continue using my current technique. In addition, the Confessions of a Tax Accountant blogs that I posted during income tax season received some kudos for the originality of the concept.

I marvel at some of the aforementioned bloggers who blog three, four and five times a week. I don’t know where they find the time, let alone the constant flow of ideas to write so many blogs. I have settled on generally posting two blogs a week. I do however, have some concern that the income tax blogs have a finite topic list. I also wonder how long I can continue to come up with something useful to say on money, the psychology of money, families and estates and business, all of which I find more enjoyable to write about than income tax.

So as my first year of blogging comes to an end, I would like to once again thank all the people I have noted above, my marketing manager Lisa, who reviews all my blogs and most importantly, my regular readers.

The blogs posted on The Blunt Bean Counter provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.

Monday, August 29, 2011

The Dividend Gross-up and Tax Credit Mechanism

Most people are convinced they are reading a foreign language when they try to comprehend and understand the meaning of the taxable dividend and dividend tax credit terminology on their T5’s and T3's. Today, I try and make some sense of these terms in a guest blog “The Dividend Gross-up and Tax Credit Mechanism” for Boomer and Echo. Thanks to Boomer and Echo for publishing this blog.

Boomer and Echo, who started their blog only a month or so before mine have achieved rapid success and critical acceptance in one short year. I guess two bloggers are better than one :).

I have not had the pleasure of talking or corresponding with Boomer, but I have had several email exchanges with Echo (Robb). As an accountant who has met hundreds of young entrepreneurs, I have developed a sixth sense as to which ones will probably be successful and based on Robb’s thought process and comments, I can see why Boomer and Echo has become successfull so quickly. Please check out my guest blog and Boomer and Echo’s blog if you have not already done so.

The blogs posted on The Blunt Bean Counter provide information of a general nature. These posts should not be considered specific advice; as each reader's personal financial situation is unique and fact specific. Please contact a professional advisor prior to implementing or acting upon any of the information contained in one of the blogs.