The View From My Back Window

A few years ago, I made a blog entry about the neighbors across my back yard, whom I often observe from my deck during the summer.  At that time, I noted some issues they each had with family members who just didn't want to move out.

Now that I'm working from home, I have a chance to observe these neighbors more frequently -- not by choice, but by virtue of simply looking out my window a few times a day.  My update on them is, so much has changed, yet so much remains the same.

My elderly widowed neighbor to the east is rarely seen outside anymore, but there's more activity there than ever.  Her disabled son is no longer around, and neither is her prodigal granddaughter and boyfriend, but they've been replaced by others.  Now her recently separated or divorced adult grandson lives there, and from time-to-time, he's joined by his kids and girlfriend.  You'd think this living arrangement would have the grandson taking care of their house and yard, but this would only be true if you defined 'taking care of'' as letting the property look like an unkempt trailer park.

My neighbors to the northeast haven't changed the number of occupants (unless you count the dog dying), but therein lies the problem.  Their adult, mostly unemployed, high-school dropout daughter still lives there.  In the past year, in addition to the usual shouting matches, there have been multiple visits by police, fire, and rescue units.  Her dad has admitted these are attributable to the daughter's addictive lifestyle, but he and his wife won't kick her out, because, well, they're bad at parenting.  Their house and yard were TP'd this week, which I thought was only a high school thing, but at least it's better than hearing gunshots.

Like I said, much has changed, yet much remains the same, and none of it is good for my property value.

A Taxing Occupation

It’s tax time, meaning more work for me both personally and professionally.  This year more than ever, I find myself talking to – and about -- tax preparers.

Tax preparers are a little bit like financial advisors, in that some are better than others, and credentials matter.   If you need help doing taxes, you probably get what you pay for.

Alternatively, though, most tax preparers are alike in one major way.  That is, they are concerned with minimizing their clients’ taxes in the current year.  Seems like a good idea for everyone, right?

The thing is, not everyone should be worried about minimizing taxes now; they ought to be worried about minimizing taxes later.  While always subject to change, it’s a fact that the current tax law expires in 2026.  Without changes, this means tax rates will go back to the higher 2017 brackets.

In this environment, tools like a Roth IRA can be of great use, where you pay taxes now in return for not paying taxes later.  Unfortunately, when tax preparers do suggest an IRA, it’s almost always a traditional IRA, since they want the immediate tax deduction.

Part of this is that some tax preparers are compensated in part by the amount of refund they generate.  Gosh, imagine that, doing something that’s better for them than for the client.

This is why many people would be better served by a credentialed, fiduciary, financial / tax planner instead of the run-of the-mill tax preparer.