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Attributes of a Wealthy Individual or The Smartest Guy in the Room Isn’t the Richest

Twin brothers walk into the Wealthy Accountant’s office. One brother is as smart as a whip with an IQ of 147 and a wiz with numbers. The other twin, while looking identical to his brother, is a bit short in the mental category. The less bright brother is hard working, but knows he can’t outthink his twin brother.

Which twin do you think has the greatest financial advantage? Which one is likely to become a millionaire?

Would you believe me if I told you the super-smart twin is orders of magnitude less likely to amass a financial fortune? Yet time and time again I see it in my office: smart people underperforming and average people hitting it out of the park.

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Countdown Clocks

Countdown clocks abound. The most infamous is the doomsday clock counting down to Armageddon. With 26 days to the tax due date here in the States tax professionals are counting down to a less tragic event.

Early retirement was something I dreamed of from high school on. I was attracted to the seasonal nature of the tax profession. The ease at which tax offices can be sold also held my interest. The original goal was to build the business, save like crazy, invest said monies and take an early bow. I decided I should at least enjoy my profession if I’m going to give it my all. The unintended consequence was that I couldn’t unplug as planned.

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Dealing with Resentment

It happens to everyone eventually. Long hours at the office or illness or other stress leads to fatigue. Then you get behind the wheel. Distracted by your own issues, another driver cuts in front of you and you react in the nick of time. Your heart races as you speak in a foreign language consisting entirely of four-letter words.

The other driver waves a quick apology and keeps going. Angered by the mishap, you tell your co-workers about the idiot on the highway. The rest of your day is ruined. At home you tell the wife, kids and cat (if she’ll listen to your ranting and raving) about your early morning near catastrophe.

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The Bittersweet Joy of Raising Children

My youngest daughter turned 18 on Wednesday and while Mrs. Accountant and I are not yet officially empty nesters the handwriting is on the wall. High school needs to be finished and an adjustment into adulthood is in order before she leaves. The timing is the only thing undecided.

My oldest daughter (I have two girls) stuck around home milking mom and dad for all it was worth. At first the prodding was gentle. As the years passed the cattle prod was more insistent. It’s wasn’t about her behavior either.

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It Never Pays to be a Bear

Bulls make money. Bears make money. Pigs get slaughtered! —Old Wall Street Adage

Back in the early days of my career the investment industry and the tax/accounting industry tried to merge. To be fair it was the investment industry’s idea. Tax offices were the perfect partner to sell securities (usually mutual funds with a respectable dose of insurance thrown in for good luck). Virtually every small accounting firm took the plunge.

Accounting offices are prime for solicitation. Tax professionals have a powerful relationship with their clients. Accountants also know a lot about their clients due to the data collected to file an accurate tax return.

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I Hate My Job!

The accounting industry has been consolidating for decades. When I started my practice in the 1980s the local newspaper had several pages of business card sized ads hawking the wares of local tax offices and CPA firms. Today you would be hard pressed to find an ad (outside the massive DIY tax software) by any tax or accounting firm even in the depths of tax season.

There are several reasons why the corner mom and pop tax office is dying. The tax code has steadily increased in complexity. If I didn’t have a background of knowledge to build on I might not consider the tax field if I were starting today.

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Church of FI

Back in the old days the FI (financial independence) community was a different place. Advice was simple and straight forward. King Solomon reminded us to avoid lending or borrowing. Nearly half the parables of Jesus have to do with money and wealth.

The simple message sold well. So well in fact it became ingrained in religious dogma. The goal was honest. Work hard, save and you will enjoy your old age.

The old school in the Church of FI made the most of a basic message. The advice and values were handed down generation to generation. It lasted for one simple reason; it worked!

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If You Don’t Like What You See in the Mirror . . .

Back in 1982 Wisconsin a young man could legally belly up to the bar on his 18th birthday. That didn’t stop me from getting a jump start on adulthood.

In my later years of high school there were several rural bars where the owners could care less how old I was. The police rarely showed up (they never showed up when I was there, but I heard stories) and the penalties were light if caught selling to minors.

So I unwound after a long week of farm labor and sloughing off at school with a cold one in Brothertown. I drove the distance to tip a brew with my buddy, Ken.

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