Master These Mid-Year Money MovesYoga’s a Go-ga in the Workplace!

Surviving the Sandwich Generation

House Flipping—How to Prevent a Financial Flop

Hiring Employees 101

Questions to Ask Your Parents Now

May–June 2016

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an you believe that the middle of the year is almost here? It seems like only yesterday we were getting ready for the holidays, gathering up documents for tax preparation—and heading off for spring break. Now the mid-point of 2016 is just around the corner, which means it’s time to refocus on the things you want to achieve before we’re singing “Auld Lang Syne” again.There are some important steps you can take when it comes to your money at mid-year, and we’re sharing those with you in this issue. We are also sharing

some financial tips for those who find themselves part of the “sand-wich generation”—looking after parents and their own children at the same time. With all of the weighty issues of the day facing us and the demands of everyday life to balance, finding effective ways to manage stress and live more mindfully is some-thing many people are trying to do. That’s why we’ve included a great article on how some busi-nesses are incorporating yoga into their work structure to give employees a rejuvenating break. You may wish to consider

implementing this practice at your place of work, too. You’ll also find helpful information to prepare you for hiring your first employee. If you’re looking to make house flipping work for you, financially speaking, check out the article on page 6.For questions about mid-year planning or your financial situation in general, please contact us. We’re here to help!

Sincerely,

Your Trusted Accounting Advisors

Making the Most of Mid-Year…

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May–June 2016

Features4 • Master These Mid-Year Money Moves | We’re almost halfway through the year—time to take action to meet your 2016 financial goals.

6 • House Flipping—How to Prevent a Financial Flop | House flipping…it seems so easy. You buy a house, fix it up and sell it again for a tidy profit. At least that’s the way it’s supposed to work, but if you’re not careful, you can lose money quickly and create a path to real financial trouble. Here’s what you need to know to successfully house flip without experiencing a financial flop.

8 • Surviving the Sandwich Generation | One in eight Americans are caring for both children and parents or grandparents, which can put a strain on saving for retirement. Five strategies can help you overcome the challenges of the sandwich generation.

10 • Hiring Employees 101 | Hiring your first employee is a rite of passage for a business owner, and it’s important to start off on the right foot as an employer by making sure you follow all of these appropriate regulations.

Departments2 • From the Firm | Making the Most of Mid-Year…The mid-point of 2016 is just around the corner, which means it’s time to refocus on the things you want to achieve…before we’re singing “Auld Lang Syne” again.

12 • Life & Living | Yoga’s a Go-ga in the Workplace! Staying happy and healthy at work is only a few poses away.

14 • Mind Flex | Questions to Ask Your Parents Now…May and June are traditionally the months that we give a nod to our parents with Mother’s Day and Father’s Day. However, there’s no reason to wait until those occasions to ask your parents these key questions.

In The Loop is published by rwc360 LLC, 1516 S. Walnut St., Bloomington, IN 47401 (www.rwc360.com) and distributed as a courtesy by professional services firms nationwide. This publication is intended to provide general information only and is not to be construed as providing financial, legal, or other professional advice or services. The information and points of view presented may not be appropriate for your specific financial position or circumstances. Contact a financial or legal professional before making any decisions or plans regarding your financial management.

We’re almost halfway through the year—time to take action to meet your 2016 financial goals.

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ow—it seems like just a few weeks ago that you were making your list of New Year’s resolutions…and now it’s time to prepare for bathing suit season. It’s also time to take a look at your mid-year finances and make any necessary changes to meet your goals. Here are some tips to help:

Review your budget and adjust as necessary.Take a look at the budget you created at the beginning of the year (if you didn’t make one, do it now) and see where you are financially.

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Master These Mid-Year Money Moves

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Are you bringing in the same amount of money as you were at the beginning of the year? More? Less? Have any of your expenses increased or decreased since that time? Are there expenses you can eliminate? Are there expenses that no longer exist? If so, adjust your budget accordingly so that it stays up-to-date and an accurate reflec-tion of your financial situation.

Make sure your savings plan is on track.If your savings plan isn’t on course, figure out why and change direction. Make a realistic goal for the second half of the year. Saving something is better than nothing, and it will help you start off on the right foot next year by building up a financial cushion. In addition to a regular savings account, don’t forget the importance of saving for retirement. Socking funds away in a qualifying retirement account may get you a tax deduction as well.

Reevaluate your expenses and make cuts.This goes hand-in-hand with reviewing your budget. Essen-tially, you want to look at every-thing you’re spending and make

changes where you can. Think about the little things as well as large expenses, because items such as smartphone apps, subscrip-tions, and takeout can really add up. Also, take a look at monthly charges, like gym and other mem-berships, and decide if they’re really worth it. If you’re not using these memberships regularly, cancel them.

Renegotiate financial contracts where possible.Almost everyone has some kind of financial contract (i.e. your phone or Internet services, cable, etc.) and now is the time to renegotiate them to a lower charge, if possible. It’s easy to forget that you can renegotiate contracts mid-year to

secure a better monthly rate or receive free upgrades. However, at this time of year, service providers often experience a seasonal lull in sales, and many run specials to attract new customers and retain existing accounts. All you have to do is call and ask if there are any new promotions that could help you lower your bill.

Order your free annual credit report.Everyone is entitled to one free credit report per year from each of the three major credit bureaus — Equifax, TransUnion, and Experian. You should take advantage of these free reports to stay on top of your credit rating and to review and follow up on any errors that you may find before they impact your credit score.

None of the tips we’ve shared are difficult, they just take a little time and a dedication to becoming more financially empowered. So before you schedule your mid- summer break and the kids get out of school for the summer, take the time to master these mid-year money moves. Come December, you’ll be glad that you did. Source: Wisebread.com

It’s easy to forget that you can

renegotiate contracts mid-year to secure a better monthly

rate or receive free upgrades.

House flipping…it seems so easy. You buy a house, fix it up, and then sell it for a tidy profit. At least that’s the way it’s supposed to work. But if you’re not careful, you can lose money quickly and create a path to real financial trouble. Here’s what you need to know to successfully house flip without experiencing a financial flop.

House Flipping How to Prevent a Financial Flop

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enerally speaking, house flippers face four key challenges:

Finding a good house at a low enough price to make the deal work.

Finding reliable contractors to do quality work at a reasonable price.

Finding money to finance the deal.

Selling the home at a price that will cover expenses and provide enough profit to compensate for the time invested.

If location, location, location is the mantra for all real estate, “do the math, do the math, do the math” should be the mantra for would-be house flippers. For example, if you calculate a potential flip this way: Buy a house for $100,000, spend $20,000 on improvements, sell it for $150,000, and earn $30,000 profit, you clearly haven’t done all the math that’s needed.You need to consider the cost of borrowed money and the cost of selling the house. In addition, you should be prepared for unexpected expenses such as unplanned repair work required to sell the house. Not to mention, you’ll have to pay for the cost of insurance, utilities, and property taxes while you own the house.

It is important to look beyond the surface-level figures to get a complete and accurate picture of a house- flipping opportunity. Only then can you determine whether it’s a sound financial move for you. Experienced flippers recommend buying properties for which the after repair value (ARV) is no more than 70 percent of the estimated sales price. Estimating the sales price accurately is in itself a challenge, requiring significant research into how much similar properties netted.

BiggerPockets.com has online calculators, as well as bulletin boards and articles providing advice. Zillow, Trulia, Redfin, Realtor.com, and local public records are all good places to start tracking home sale prices.Even experienced flippers some-times make mistakes by not consid-ering the kinds of houses people are buying in the surrounding neighborhood. For example, it’s not a smart strategy to buy a house and invest significant money to make it the most grandiose on the

block if most buyers are looking at the neighborhood as an afford-able place to buy rather than an “upgrade” location. In addition, if you notice that three-bedroom, two-bathroom homes are popular, then that’s what you want to buy and sell. Another important note: Flipping houses is not a good hobby (or even a good source of income) unless you have the money to support it. While it is possible to borrow money to buy and fix up homes, doing so isn’t easy or cheap. Many conventional lenders won’t lend on homes in poor condition or to investors who can’t show reliable income and assets.Aside from time, money, and market demand, the other major challenge faced by many flippers is finding good and affordable contractors. Too many would-be flippers try to get by with marginal contractors who do marginal work, which often creates more expense. If you’re thinking about getting into the house-flipping market, make sure you do your homework thoroughly. It’s also a good idea to talk to experienced house flippers to get their hard-won insights into what works and what doesn’t. It’s also worth making connections with a good realtor and our firm so that we can help you understand the financial and tax implications of real estate transactions. Source: U.S. News & Money

Flipping houses is not a good hobby

(or even a good source of income) unless you

have the money to support it.

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Members of the sandwich generation—the growing number of adults who simultaneously care for children and aging parents—face significant financial and emotional burdens. These pressures are one reason why 37 percent of Generation X (those between the ages 35 and 49) do not feel financially secure according to the 2015 Northwestern Mutual Planning & Progress Study.

t is estimated that 1 in 8 Americans between the ages of 40 and 60 are caring for both children and parents or even grandparents at once. Adding to the strain, this caregiving often coincides with high career demands and the need to save for retirement. While the sandwich situation is no doubt challenging, the following five strategies can help:

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Surviving the Sandwich Generation

Pick your priorities. The truth is, unless you are very wealthy, you’ll have to pick your financial priorities…one of which should always be saving for retire-ment. To meet this goal, it’s likely that you’ll need to scale back in other areas, such as spending on luxuries like vacations and cars.

Stick to a revised budget. Taking on financial responsibility for parents makes honing your own budget imperative. Set limits on spending, shop sales, and stay within your means so that you can keep up with your financial commitments.

Have an annual financial checkup.An annual monetary checkup can help determine where you stand and what adjustments need to be made. Having a mid-year or year-end checkup with our firm will help ensure that your household is on track to meet goals—both now and in the future.

Plan for eldercare. While parents often anticipate the costs that come with children, they are less likely to budget for the expense of caring for their parents…which can be significant. Costs can include paid caregiv-ers, a nursing facility, and other

medical expenses. Budgeting in advance, as well as checking for available benefits through the federal government, particularly Social Security or veterans’ ben-efits, can help ease some of the pressure.

Save time and sanity with technology.Being a caregiver for a parent may mean that other family members ask for health or financial updates, which adds more stress to an already over-taxed schedule. Think about utilizing technology to reduce the amount of time spent on these communications. Sending a group e-mail or text with photos or health updates can work. For more detailed informa-tion you can use Google Drive or even a private blog that everyone in your family has access to and can update.

Don’t Miss These Tax Deadlines Keep these dates handy to avoid paying penalties:

Business Tax Deadlines

• March 15, 2016 Filing Deadline

• September 15, 2016 Extension Deadline

Estimated Quarterly Tax Payment Deadlines

1st Quarter: April 18, 2016

2nd Quarter: June 15, 2016

3rd Quarter: September 15, 2016

4th Quarter 2016: January 15, 2017

Individual Tax Deadlines

April 18, 2016 Filing Deadline

October 17, 2016 Extension Deadline

IRA Contribution Deadline:

April 18, 2016

Please visit www.tax.gov/calendar

for additional information

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Having a mid-year or year-end checkup

with our firm will help ensure that

your household is on track to meet

goals—both now and in the future.

Hiring Employees 101Do it right! Onboarding your first employee

iring your first employee is a rite of passage for a business owner, and it’s important to start off on the right foot as an employer by making sure you follow all of the appropriate regulations—from tax forms and government regis-trations to insurance requirements and more. Being an employer carries a number of new obligations, so we’ve rounded them up for you in the following handy checklist. Be sure to contact our firm if you have any questions or need assistance.

Obtain an employer identification number.When you hire employees, you must get an employer identifica-

tion number (EIN) to use on tax returns and other documents you submit to the IRS. To get an EIN, you must file IRS Form SS-4. You can download the form from the IRS website at www.irs.gov.

Register with your state’s labor department.Once you bring on employees, you will have to pay state unemployment compensation taxes. These payments go to your state’s unemployment compensation fund, which provides short-term relief to workers who lose their jobs. Go to http://work forcesecurity.doleta.gov/map.asp for a list of state unemployment insurance tax agencies.

Get workers’ compensation insurance.You should have workers’ comp coverage to protect workers who might suffer on-the-job injuries. Workers’ comp insurance is required in the vast majority of states, although some make an exception for very small employers.

Set up a payroll system to withhold taxes.You’ll need to withhold a portion of each employee’s income and deposit it with the IRS, as well as make Social Security and Medicare tax payments. For more information, get IRS Publication 15, Circular E, Employer’s Tax Guide from the IRS website at www.irs.gov. (You may also have to withhold taxes for your state. For more information, check with your state’s tax agency; you can find links to each state’s agency at the website of the Federation of Tax Administrators at www.taxadmin.org/fta/link.)

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Have each employee fill out IRS Form W-4, Withholding Allowance Certificate.On the W-4 form, employees tell you how many allowances they are claiming for tax purposes, so that you can withhold the correct amount of tax from their paychecks. You can find this form at www.irs.gov. You should ask employees to fill out a new W-4 form each year if they want to change their allowances.

Complete Form I-9, Employ-ment Eligibility Verification for each new employee.U.S. Citizenship and Immigration Services (USCIS, formerly known as the INS) requires employers to use this form to verify that every employee they hire is eligible to work in the United States. (You don’t have to file this form with the USCIS, but you must keep it in your files for three years and make it available for inspection by officials of Immigration and

Customs Enforcement, known as ICE.) You can obtain the form online at www.uscis.gov. Note that completed forms should be kept in a separate I-9 folder for all employees—not in each employee’s personnel file.

Report each new employee to your state’s new hire reporting agency. The new hire reporting program requires employers to report information on all new employees for the purpose of locating parents who owe child support. Each state has a different new hire reporting agency. To find the name and address of your state’s new hire reporting agency, see the State New Hire Reporting page at the Administration for Children & Families website (www.acf.hhs.gov).

Post required notices.Several government agencies require employers to post notices providing information on worker rights for their employees. For information on required federal posters, go to the Department of Labor website at www.dol.gov/elaws/posters.htm. The DOL’s “Poster Advisor” will help you determine which posters you must display in your workplace. In addi-tion, you must comply with your state department of labor’s poster requirements. A list of state

departments of labor is included on the federal Department of Labor’s website.

File IRS Form 940 each year.You must file IRS Form 940 to report your federal unemployment tax for any year in which you paid wages of $1,500 or more in any quarter or for any year in which an employee worked for you in any 20 or more different weeks of the year. You can find the form at www.irs.gov.

Set up personnel files.For each employee you hire, create a file in which to keep job-related documents, such as job applications, employment offers, IRS Form W-4, performance evaluations, and sign-up forms for employee benefits. Medical records should be kept in a separate, confidential file, in a locked cabinet. And you should store I-9 Forms, which document an employee’s immigra-tion status, in a separate file as well.

Set up employee benefits.If your business has established employee benefit programs such as health insurance or a 401(k) plan, you’ll need a sign-up pro-cedure so employees can enroll, name their dependents, and select options. Source: Nolo.com

Several government agencies require

employers to post notices providing information on worker rights for their employees.

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Life & Living

Yoga’s a Go-ga in the Workplace!Staying happy and healthy at work is only a few poses away…

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ith heightened work-life demands, reducing stress in the workplace is a common challenge, and that’s why enlight-ened employers continue to look for ways to improve the health and well-being of their staff. Emerging science shows that healthier humans with a greater sense of well-being are more engaged in their duties and more productive. Consider also that the new-gener-ation professional wants to work for a company that contributes to a balanced life as much as it con-tributes to their bank account. In an effort to reduce employee stress, a more mindful corporate culture is evolving. More business-es are adopting onsite mind-body programs like yoga because it’s proven to help improve mental clarity, boost job satisfaction, and reduce the number of sick days. In fact, yoga is fast becoming a com-mon on-grounds amenity, and here are the top reasons why…

Offers much-appreciated convenienceMany people find it difficult to strike a healthy balance between rising workplace demands and much needed family and personal time. To lighten the load, often the first thing to go is physical activity. The problem here is that less activ-

ity can actually make it even more difficult to keep up with demands because a body that is sedentary fatigues faster. Having yoga in the workplace offers a convenient way for employees to put physical activity back on the list with little effort.

Boosts well-being and reduces stress One of the greatest benefits of yoga is its ability to help reduce stress—and relaxed employees are often far more productive and vital to a thriving workplace. Yoga requires one to be mindful of what is happening now…not about meetings scheduled later in the afternoon. When employees can focus on simple breathing techniques and poses for a set

length of time, it offers the mind a respite from the

pressures of reports and deadlines.

Reduces health issuesStress is a leading cause of chronic health problems, including colds, viruses, headaches, overeating, sleeplessness, and smoking. And the more health problems employ-ees endure, the higher healthcare costs will be. By providing yoga classes, along with other wellness benefits, employees can help to reduce their risk of acute and chronic medical conditions, which ultimately affect a company’s bot-tom line.

Fosters bondingThe days of employee and em-ployer bonding over a round of golf are coming to an end. As the benefits of yoga enjoy more media exposure, that bonding experience is moving to the yoga classroom. Providing yoga to employees allows them to meet and interact with peers in a casual way that can lead to deeper work relationships. Having a common interest, such as yoga, can spark a friendship, in-crease respect, and help to develop a non-competitive and relaxing work culture. Find out more about the benefits of yoga by visiting: webmd.com/fitness-exercise/ yoga-directory

Life & Living

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Mind Flex

May and June are traditionally the months that we give a nod to our parents with Mother’s Day and Father’s Day celebrations. However, there’s no reason to wait until those occasions to ask your parents some key questions.

Questions to Ask Your Parents Now

Mind Flex

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We’re not talking about the very important and practical financial or end-of-life conversations here. Instead, think about the things that you really want to know and, when the time is right, take a long walk or settle in at the kitchen table to talk to your parents and ask your most pressing questions.

This list can help you think through questions you might ask.

What’s the one thing you would have done differently as a parent?

Why did you choose to be with my mother/father?

In what ways do you think I’m like you? And not like you?

What do you think is my greatest strength? And my weakest point?

Is there anything you have always wanted to tell me but never have?

Do you think it’s easier or harder to be a parent now than when you were raising our family?

Is there anything you regret not having asked your parents?

Is there anything that you wish had been different between us or that you would still like to change?

What’s the best thing I can do for

you right now?

Where do you find TRUST?

When it comes to your financial strategies and well-being, your most trusted advisor is found where skill meets integrity. From your monthly business financial management, to your tax strategies and planning, our firm has the knowledge and commitment to keep your best interests at the crossroads of our relationship. And for the other important aspects of your business and personal life, we can introduce you to a referral network of trusted experts who can help.Turn to us as your most trusted advisor.