Taxes | Deflation & a Personal Reflection on Wealth

Desktop Deflation: With all of the post-pandemic talk about inflation, there are some areas where we actually see deflation. Client Service Representative, Jody Voce, found this infographic (see below). “I found this little piece interesting and couldn’t believe that in 1983 it cost employers over three times more money to give employees the tools they need to do their job efficiently than in 2023. WOW!” shares Jody. “The only thing that costs more today is the POST-IT NOTES, and everyone knows what a big fan of POST-IT NOTES I am. Business owners everywhere should celebrate.”

13 Hours of Taxes: The IRS estimates that the average time all Americans spend on taxes is 13 hours, costing $250. The average burden for those with business income is 25 hours, costing $530. While commercial tax software has made it simpler to file for yourself, it might make sense to employ a CPA. With the complexities of changing tax laws, the value of hiring a CPA lies in peace of mind. A paid preparer is responsible for the substantive accuracy of your return, but if you choose the DIY route, you’re ultimately accountable for every item reported, according to the IRS.

If you are interested in a recommendation for a helpful and trusted CPA, please reach out. We work with several we would be happy to recommend.

Business Briefing

• Bitcoin Dives: The prices of Bitcoin and other cryptocurrencies fell sharply Thursday after Silvergate Capital, one of the crypto sector’s top banks, announced it would shut down. Bitcoin fell 7 percent. The decline might have been more significant, but cryptocurrency investors had time to price in the news ahead of time after Silvergate warned last week that it couldn’t continue operating its Silvergate Exchange Network platform. Silvergate said it will return all deposits after being forced to sell billions of dollars worth of assets at a loss to cover a rush of withdrawals. Its stock plunged 42 percent. (CNBC, The Wall Street Journal)
• Job Openings: The number of job openings in the U.S. fell to 10.8 million in January, down 410,000 from December but still exceeding the number of eligible workers by far, according to data released Wednesday by the Labor Department. There are now 1.9 job openings for every person available to fill them, according to the Job Openings and Labor Turnover Survey. (CNN, CNBC)

Food for Thought: We came across an appealing perspective on finances and future thinking that we wanted to share with you and get your thoughts. Retiree Jay W. Gerrie wrote about it this way:

The wealth of a person seems to be measured today

by the amount of real money that they’ve tucked away.

 It seems to me wrong that the value is there,

If we count all our blessings, each day that we share.

I figure my wealth by the friends that I have,

My wife, sons and daughters, and children they have.

Their love and affection no money can buy;

You can’t place a value, it’s worthless to try.

Our love just grows stronger; it’s sweeter each day.

 And I will enjoy it ’til I pass away.

So this is the wealth I proudly still hold

And would not give it up

For a chest full of gold!

We mentioned last week how to prepare for future generations. Principal Josh Manifold gave some helpful guidelines. How will you share your story with the next generation to help them understand your values? Do you agree with Jay that the value lies in relationships? We, of course, advocate for financial stability that enables you to pass along to others as you see fit. All of this is food for thought for your Monday and the week ahead.