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Make a Difference Today…

The last few months have been a rough time for the state of humanity. I will not get into any political views or issues regarding events that have taken place. However, it does shine a light on how valuable your life is.

A main pillar of Hammernik & Associates is helping the community. Our charity of choice over the years has been the Muscular Dystrophy. We collect donations throughout the year by selling shamrocks and we also donate $1 for every tax return that we prepare. MDA has created a campaign that makes it so easy for you to help find a cure. All you have to do is upload a picture of yourself and $5 will be donated to the MDA. Here is the picture that I uploaded.

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Want to upload your own picture and donate $5? Click Here

This is an easy way to make a difference, it will only take a couple minuted of your day.

Take advantage of this simple way to make a difference in someone’s life. You have the ability to help send some kids to summer camp and put a smile on their faces. That is a great feeling!

Thanks in advance,

Nick Hammernik, EA

Don’t Tell Bobby Bonilla Pensions Are Dead

Today, July 1st, is unofficially named “Bobby Bonilla Day”.

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Today is the day that Bobby Bonilla gets his annual check for $1,193,248.20 from the New York Mets baseball team, just as he will every single year through 2035.

To catch everyone up:

The deal was signed by the Florida Marlins in 1996, but Bonilla was traded to the LA Dodgers in the 1998 blockbuster that involved Gary Sheffield and Mike Piazza. Bonilla was later flipped to the Mets. He then only played 60 games in 1999, hitting a dismal .160 batting average, so the Mets decided to release him before the 2000 season instead of paying him $5.9 million that year.

In buying out Bonilla before 2000, the Mets triggered a deferral that paid Bonilla the above figure annually from 2010-2035.

Call it one of the more fun pensions you’ll ever see.

Pensions are a close to extinct financial animal, but if you can find an employer that offers one, you should jump on the opportunity.

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What is a ‘Pension Plan’

A pension plan is a type of retirement plan, usually tax exempt, wherein an employer makes contributions toward a pool of funds set aside for an employee’s future benefit. The pool of funds is then invested on the employee’s behalf, allowing the employee to receive benefits upon retirement.

Why are Pensions dead?

Retirement has taken a back seat to corporate profitability for more than 40 years as the United States has embraced the reduction of pensions, and now the U.S. economy is paying the price with lowered productivity.

Without pensions, older workers are being forced to work longer hours and stay in the workforce longer, and that means they’re squeezing out some of the most productive workers of all, known as core workers (ages 25-54).

Employers have now opted for retirement plans such as 401K’s, 403(b)’s and Simple IRA. In these plans, employers still contribute to their employee’s retirement, it is just not as much as they would contribute to a pension.

Salary Deferral

“Bobby Bonilla Day” is a joke that is discussed every July 1st on sports talk shows and all over the Internet. It is looked at as a joke because the Mets are still paying a guy on their payroll over $1 million a year…and he hasn’t played a game in 16 years.

My question is, why don’t more athletes defer salary. There are a few other notable players such as Ken Griffey, Jr that are also being paid after their playing days. Griffey is actually even receiving 4% interest on his money…what a great retirement plan.

A Sports Illustrated story ran last year and stated this:

“Reports from a host of sources (athletes, players’ associations, agents and financial advisers) indicate that: By the time they have been retired for two years, 78 percent of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.”

In an industry that sees former athletes trying to scrape together autograph signings and speaking engagements just to make a living after retirement, I ask this: Why not make salary deferral a priority for agents during negotiating contracts?

A glorified pension in an age where pensions are dead.

Figure out a way that you can support the lifestyle you want to live after you are done receiving a paycheck. This may no longer be through a pensions, but there are other ways to secure financial independence during retirement.

If you do not have a retirement game plan in place, or you think it can be improved, contact our office at 414-545-1890. Our Wealth Management division will review your current financial game plan and come up with a strategy to make your future retirement a success.

Have a safe and happy 4th of July weekend!

 

Nicholas Hammernik, EA

Nick is Talking Tax To Milwaukee. Combing the boring topic of tax with the latest news in pop culture and sports.

Nick is Talking Tax To Milwaukee. Combing the boring topic of tax with the latest news in pop culture and sports.

 

What To Do When You Receive An IRS Phone Call

One of the most common phone calls that we get at our office is clients calling to say that the IRS called them and told them that they need to pay them immediately. These are IRS scam phone calls that have been going on for almost two years. Want to know what to do if you receive one of these call or an email from the IRS?

Watch Nick Hammernik and Lori Beck tell you what to do:

What To Do If The IRS Calls You

If you have any questions or concerns about identity theft our financial scams, please call our office at 414-545-1890

 

How To Avoid IRS Interest

The IRS has decided they want more of your money! As of the second quarter of 2016, they have raised their interest rate from 3% to 4%.

Do you want to know how to avoid paying the IRS that interest? We help Milwaukee and Waukesha with tax issues.

Watch This Video

Blog Special: Schedule a tax planning session with your Hammernik & Associates adviser by 6/17/16 for only $59. Our normal tax planning rate is $175/hr, so don’t miss out!

If you need a Tax Cleanse with some IRS debt, schedule a complimentary consultation to see how we can help you out.

We will be trying to do video blogs every other week. Please let us know if there is a certain topic you would like to see discussed!

 

Until next time,

 

Nicholas Hammernik, EA

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