Questions? Please ask!

If you have any questions that can be answered with a quick reply please ask.  This website is intended to be personal as opposed to my more formal business sites.  Therefore, I encourage you to write any questions in a reply as others may have the same question.

Gap Analysis: The Bridge Between You and Your Goal

Think of a goal you have.  For example, perhaps your goal is to save money for a purchase, find a career, rather than a job, or start a business.  Regardless of what your goal is, I will now share with you a method that, when used, will simplify the process of achieving your goal. 

            In business, a strategic plan is drafted when attempting to achieve a goal.  A gap analysis is one portion of a strategic plan that can be used in your personal or professional life.  Think of a gap analysis as a bridge that will take you to your goal.  Once it has been created, all you have to do is cross the bridge. 

You do not need to be a writer to create a gap analysis as it is for your use.  Therefore, no one will see it unless you want them to.  One of the major values of a gap analysis is that by creating it, you will be forced to think about and examine the steps that need to be taken to achieve your goal.  This ensures that the actions that need to be taken are cemented in your mind and are examined carefully before taking them. 

Creating a gap analysis, or bridge, may seem more complicated than it is worth.  However, it is not difficult at all and, if you do not now, you will soon see the value. 

The first step is to write down exactly what your goal is.  Be as specific as you can, but remember that you can always return to this section and add to it or change it later. 

The next step is to write a snap shot in time of where you are now as it relates to your goal.  For example, if your goal was to buy a house and you are currently renting an apartment and do not have the money or credit to buy a home, you would write this.  Once again, be as specific as possible. 

         What you have now is two points or snapshots in time.  I also like to refer to these points as the anchors for the bridge you will now create.  The bridge is the most important part of the gap analysis and will be very valuable to you now, and in the future, as you pursue your goal. 

To write this section, you need to examine what you have already written and think of what could be done to bridge the gap between the two points.  In effort to find methods to bridge this gap, you may want to conduct research on the web, in books, or by speaking to someone who you consider an unbiased expert on the subject. 

For example, using the previous example of wanting to buy a home, you would find ways that over time would boost your credit score and allow you to save the money needed.  To do this, you may research methods to increase your credit score such as secured credit cards that report to credit agencies.  You also may find ways to lesson your expenses by creating a budget.

Once you have written a gap analysis, you will have created a plan to follow.  Furthermore, you have been forced to examine what needs to be done in order to reach your goal. 

Debt Management

In addition to currently operating an advisory and consulting business, I formerly worked for the IRS, operated several of my own businesses, and was a project manager and broker for venture capitalists. Armed with the knowledge gained from these experiences and more, it is to no surprise that I am constantly shocked and appalled by the misleading advertisements I hear from debt management companies. I am disgusted that these companies use and hide behind Non-For-Profit status and an A rating from the Better Business Bureau while knowing that the majority of people do not know what a Non-For-Profit Corporation really is and how easy it is to obtain an A rating from the Better Business Bureau.

A Non-For-Profit designation simply means the money a company or organization earns in excess of cost, including salaries, is reinvested in the company and not paid to stock holders. There is no cap to the amount the company can reinvest in the organization including the salary and bonuses paid to employees.

Debt management companies not only mislead people by advertising as a Non-For-Profit organization but also try to persuade people of their greatness by flaunting their high Better Business Bureau rating. The reason this is misleading is because many do not know exactly what the Better Business Bureau is and how easy it is to obtain an A rating.

Many people think that the Better Business Bureau is a government agency because it has received so many grants from the Government and many times is listed in the yellow pages under government agencies. The Better Business Bureau is only a private Non-For-Profit organization made up of over one hundred individually owned and operated bureaus in the U.S and Canada. As a Non-For-Profit, like all others, the Better Business Bureau can apply for grants from the government and accept donations from businesses.

In several states, law suits against the Better Business Bureau have been filed on grounds of assigning high ratings to businesses that pay for membership and make donations while assigning low ratings to those who don’t. Not only have private law firms sued the Better Business Bureau but state attorney generals and other officials have questioned the accuracy of the Better Business Bureau’s rating system. My assertions can be verified by simply using a search engine and typing in the words Better Business Bureau and sued.

With no way of knowing for sure if a debt management company is legitimate and will be able to help you, the only option is to handle your debt situation on your own. There is absolutely nothing that a debt company can do for you that you cannot do yourself. You may think that you know little about what needs to be done, and that may be true, but with a little time and research you will save money and not take the chance of getting in debt even further.

Finding Employment

More now than ever, many find themselves searching for employment. The competition is stiff due to massive layoffs, companies hiring as few people as possible due to economic uncertainty, and, in general, more job seekers than there are currently jobs. Therefore, it is more crucial than ever to make sure your resume looks good and you apply for jobs in the right way. The right way is simply the way that gets results. Below are a few priceless tips that are often overlooked.

Resume & Cover Letter

First, make sure your resume is simple, neat, and gets to the point. Starting a résumé with an objective section is useless. If you are applying for a job, your objective is clear. Therefore, stating it in a clever way is just wasting time. The average recruiter only spends a few seconds looking at a resume before moving to the next. Therefore, you only have a few seconds to capture their attention.

Make sure your resume is well written and formatted properly. If you do not feel confident in your writing abilities, ask others to review your resume or pay a writing service to make sure your resume is error free. Keep the design simple. A resume should be no longer than two pages. Start your resume with your most recent experience. If you have an education beyond high school, the education section comes next followed by any professional certifications that you have.

Under each job you have had and degree you have completed, list two to three bullets stating what you accomplished. Anymore than three bullets is distracting and not needed. Whenever possible do not simply list what your job duties were but what you accomplished. For example, a bulleted item under experience might read, “increased sales revenue by 10%.”

Always include a cover letter when submitting a resume. Many recruiters have personally informed me that they will not even look at a resume that is not accompanied by a cover letter. The cover letter simply needs to highlight what is on the attached resume and how your experience relates to the position you are applying for. Remember, recruiters and hiring managers want to know what you can do for them. A cover letter is your opportunity to gain the recruiters attention so that they will read your resume and give it the attention it deserves.

Application Process

Once you have a well written resume and cover letter, the job search begins. Keep in mind when submitting to jobs online that the chances of your resume actually being looked at are slim. The chances of your resume being seen are slim because of the amount of resumes received that go into a database. With this in mind, there are a few things you can do to better the chances that a recruiter will see your resume.

To start, target job posting that are recent. Most job boards will allow you to search for postings within the past few days only. This is highly recommended as recruiters will look at the first group of resumes received and only look further if they don’t find what they need.

If you know the hiring manager’s name or recruiter’s name, as it may be listed or you may find it by searching the company for information, find their email address and send them a direct email with your resume and cover letter attached. In the body of the email state that you applied through the requested application process but want to make sure they receive your resume. This shows effort, determination, and ensures your resume reaches the right person directly.

It is also important to note that when it comes time to fill out a job application, whether its online or in person, make sure that you fill the entire application out and do not leave blank or empty spaces. Many hiring managers will immediately move to the next application if they see empty or blank spaces. From a hiring managers perspective, even leaving an address or phone number out says that you do not see the position important enough to take the time to find the information. After diligently searching for the requested information, if you can still not find a phone number or address do not leave an empty spot. Rather than leave an empty spot, put in what you can such as the words not available, no longer listed, or if a spot on the application does not apply to you, N/A.

The Interview

Once you have been selected for an interview, it is time to get prepared. During this step, preparation and common sense go a long way. For example, make sure you are well groomed and you dress professionally. Even if the position is one that does not require formal businesses attire, dress professionally and beyond what is required. It is a sign of respect. Furthermore, remember that you should always dress for a higher level position. This simply means that you should dress as if you are interviewing for a position beyond the one you are.

Make sure you bring a copy of your resume even though you already sent one. Do not forget to bring a pen and the information needed to fill out a paper application. Most companies will require you to fill out a paper application even if you filled out an electronic one. Most importantly, be familiar with what is on your resume so that you are prepared to speak about it and answer questions. With the proper preparation, the interview will be less stressful and you will leave knowing everything went well.

Failure

In life, whether for a business or personal project, it is necessary to plan for failure.  Failure is not a bad thing if managed properly.  Failure is a part of life and without it there can be no success.  Many businesses utilize an exit strategy.  An exit strategy is simply a predetermined plan in case things go wrong to mitigate the loss and, in a sense, save face.  Remember, if you learn from a failed attempt or project, you in fact didn’t fail, you simply learned a lesson that will help you to succeed in the future. 

Contingency Plan: A Tool to Reduce Your Stress

Do you ever feel stressed or nervous about future events? Do you find your mind drifting to things that could go wrong; in other words, asking yourself “what if” questions? Perhaps these “what if” questions have to do with your job, your finances, or a specific project you are trying to manage or plan. No matter what the event is, the bottom line is that it is causing you stress because you know there are many things that could go wrong and ruin what you have planned. I will now share with you a technique that if used before anything goes wrong, will reduce, or mitigate, the stress you have and the damage any unforeseen event could cause.

In business, contingency planning is used to plan for events that may or may not happen in effort to be prepared. A simplified version of contingency planning can be used by individuals to reduce stress. For example, if you are in debt and need to call a creditor to make a payment arrangement, or try to settle the debt, imagine all possible scenarios, or things they may say, and plan for these moments so you are not caught off guard.

Contingency planning can be used for anything such as a job interview or meeting. To do this, you would simply imagine every possible thing the other person may say and think of a way to respond.

Part of the value of creating contingency plans is that your mind is forced to think beyond what is known. It is impossible to imagine and plan for every possible occurrence. However, by imagining and planning for the ones you can, you are training your mind to think about the unknown and plan accordingly. If something happens that you did not imagine or plan for, you will be able to better handle the situation because your mind is prepared for the unknown and you are ready to make adjustments to your original plan. Furthermore, by making contingency plans, you may reshape your original plan as you now have examined it in more detail.

Now that you can see the major value of contingency planning, being reduced stress and being better prepared for events that may occur, I will tell you exactly how to do it. We all make these types of plans in our minds, however, it is crucial to write these plans down on paper so that they may be examined and improved upon.

Start by writing down the current situation and your action plan. Now, it is time to imagine every possible scenario that could occur that would damage or require you to make changes to your original plan. Next, for each possible scenario that may occur, create a response or action plan.

It may help to create a table or structure your contingency plan as follows.

Event 1: Action Plan:

Event 2: Action Plan:

It is highly important to create solid, detailed, contingency plans. This may require research, speaking with others, and, in general, deep thought and time. However, after creating a contingency plan, you will find that you have less stress, feel more confident, and are prepared for anything.

IRS Debt Resolution

Owing the IRS is by far the worse possible financial disaster imaginable.  The IRS has the ability to seize your assets, garnish your hard earned wages, and in general, ruin your life.  In addition to the unmatched power of the IRS, understanding the options you have to resolve a debt owed to the IRS can be a daunting and confusing task. 

 Due to the fact that many people are unaware of their options, many businesses are springing up to take advantage of people in desperate times.  If you watch television or listen to the radio for even a short time, you will hear advertisements from self proclaimed experts offering to magically reduce your tax liability and stop the IRS from “harassing” you.  Most of these companies even claim to be able to reach a settlement with the IRS which will reduce the amount you owe to pennies on the dollar.  This sounds wonderful but unfortunately it could not be further from the truth. 

Almost every tax debt relief company claims that many of their staff members are former IRS agents with inside knowledge that will help to reduce your tax liability.  The fact is that any former IRS agent or employee, such as myself, knows that the IRS approves very few offer-in-compromise (OIC) applications.  An offer-in-compromise is the name used by the IRS for form 656. 

An offer-in-compromise is a form that is filed by an individual, or on behalf of an individual, to make an offer to the IRS for less than the full amount due.  The central idea behind form 656 is to show the IRS that the individual does not, and will not, have the ability to pay.  This is the mechanism IRS debt resolution companies’ use.  However, these offers are not usually accepted.  The IRS even states this on their official web site.  According to the IRS, “The IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (the RCP).” 

           On the official IRS website, the IRS explains the method used to measure a taxpayer’s ability to pay.  The RCP includes the taxpayer’s assets and income.  This means all property such as land, homes, automobiles etc.  The RCP also includes the IRS’ estimation of the taxpayer’s future income.  The only amount excluded from the grand total is the amount of income the IRS deems necessary for basic living. 

          Making an offer-in-compromise using form 656 is what IRS debt settlement companies do for taxpayers who owe the IRS.  The companies that do this typically charge around three thousand dollars or more.  Conveniently, many people report that the company they used charged the exact amount they had or could afford to pay.  However, when individuals first agreed to use the company’s service, the amount was much less but went up as the client got more involved in the process and believed they were in to far to stop.  An example of this can be found in the recent closure and prosecution of the well known company Tax Master’s. Over many years, Tax Master’s collected millions of dollars from customers but did not provide the settlements or service promised.

What the tax resolution companies do not tell people, as while it does take time and effort, every individual can file for an offer-in-compromise or set up an installment agreement on their own and save thousands of dollars in the process.  Most people feel that they do not have the knowledge to handle their IRS debt problem.  However, in my experience, I find that the majority of people are able to handle their problem and save thousands of dollars doing the work themselves.  At most, the average person needs someone to offer advice on how to properly take action. 

Most people do not qualify for an offer-in-compromise and simply need to set up an installment agreement.  This can be done by calling the IRS and requesting an installment agreement.  When setting up an installment agreement you must know that without question you have the ability to pay the amount you agree to every month.  If you are not able to and miss a month, you will be heavily fined and could face collection actions such as wage garnishments. 

When making a payment arrangement with the IRS, it is always better to agree to the lowest possible amount the IRS will accept and then pay more when the funds are available.  The lowest amount the IRS will accept is based on how long is left until the amount owed reaches the statue of limitations date which is also known as the CSED date.  This date is ten years from the time the original amount was due. 

The IRS generally uses the 1/60th rule to calculate how much an acceptable amount to pay each month will be.  This means an IRS agent will take the total amount owed by the taxpayer requesting an installment agreement, divide it by 60, and then verify if that amount will satisfy the CSED date.  Typically, the agent will then ask if the taxpayer is able to pay a higher amount but will go lower until the number they calculated is reached.   

Whenever possible, it is best to diligently look for any other way to pay your IRS bill such as taking a loan, using credit cards, or even taking a second home mortgage.  The IRS even suggests these methods as they openly admit that the interest on any other type of loan is less than the interest and penalties that will be assessed to your account until the full amount is paid. 

Penalties and interest will still accrue each month even while you make payments.  Unlike many other types of loans, the IRS compounds the interest and penalties daily.  The interest amount varies and changes, but it is typically around 10% plus penalties.  Also, if you miss a payment on a private loan you simply get charged a late fee.  However, if you miss an IRS payment you not only get assessed a penalty fee but also may face collection actions. 

If you owe less than 50,000, you can apply for an installment agreement through the IRS’ website, by phone (recommended), or by filing form 9465-FS.  If you owe more than 50,000, you need to call and will also need to complete form 433-F. 

The best option is to call and simply be honest with the IRS.  As someone who has taken these calls in the past, I can assure you that anyone you speak with at the IRS is simply just doing their job and are just like you.  Do not be intimidated but make sure you take care of the matter right away as it will only compound. 

Having personally helped clients set up these agreements, I know first hand that the process of setting up an agreement is much easier and the amount due each month is greatly reduced, thus manageable, when armed with this information.  The bottom line is that anyone can do this on their own and, therefore, do not need to hire and pay someone thousands of dollars to do it for them. 

Warning: Many Debt Resolution Companies are claiming that it is now easier to obtain an OIC.  While the laws have changed that make obtaining an OIC appear easier it is not.  If you believe you meet the requirements for an OIC, seek council from a Licensed CPA or Tax Attorney.