Financial surprises are like those times when your phone rings at the movie theater. (You thought for sure you turned if off.) It freaks you out and you spill your peanut M&Ms all over the place. You can hear them rolling down the floor. People are turning around and you slink down in your seat as you try to deal with your phone.
Those kind of red-faced, sheepish financial surprises happen when . . .
- Your CPA calls and tells you that you owe $25,000 in taxes because you made no estimated tax payments.
- You forget to fund your IRA and it’s past the deadline.
- You think you can deduct your property taxes and non-reimbursable business expenses but you can’t because you are subject to AMT.
- The stock market goes down 10% in one week and you were going to use this money like it was cash in your bank account.
- Gold goes to $2000 an ounce (who knows, it could happen)
- You buy a mutual fund that goes down in price and it pays a capital gain distribution to you and you have to pay taxes on this!
- Your top 3 competitors leverage the web in ways you never saw coming.
- Capital gains tax rates are at 35%.
- The premiums you pay for health insurance go up by 20% again!
- Medicare runs out next Monday. Oy Vey.
- You grew your revenues by 25% but your profits are up only 5%.
- The IRS audits you and tells you that the person you hired and classified as an independent contractor was really an employee, and now you owe payroll taxes and penalties.
Dealing with money doesn’t have to come with all of these financial surprises. Get in front of them. Surround yourself with bright, knowledgeable financial people. If they are good, they will be proactive with you and help you avoid financial surprises. And when they call, make sure your ringer is on!