Author: Donohoo Accounting Services

The Best Time To Buy Household Appliances

Major household appliances are expensive, but knowing the right time to buy them can help save you and your family money. You might think Black Friday is the best time to buy nearly everything, and there are great deals available, but to get the best deals of the year, September is the right time.

During September, many stores are looking to clear out existing inventory to prep for the holiday shoppers, and manufacturers often release new models in late fall. This combination leads to the best prices of the year for most washers, dryers, dishwashers, ovens/ranges and refrigerators.

Energy Star Rebates

There is also plenty of rebate money remaining for Energy Star certified appliances. Before you buy, visit the site and type in your zip code to find rebates and special offers near you. Products that earn the Energy Star label meet strict energy-efficiency specifications set by the U.S. Environmental Agency, which helps save energy while protecting the environment. These products also increase your home’s resale value, so it’s a win all around.

Price Matching

Once you’ve done your research about product models and determined your additional rebate savings, take it one step further with price matching. Every retailer has different rules, but one we like best is Best Buy. Here’s why. Best Buy matches prices with H.H. Gregg, Walmart, Lowe’s and even Amazon.com among others. Once you make sure the product is identical in brand, color and model number, present the deal in-store or online and they will match the price. After your purchase, keep an eye on the item. If Best Buy lowers the in-store or online price during the return and exchange period, they will match that lower price again, upon request.

Sell Your Old Item

Not only are the prices for your new item lower, but you will also be able to sell your old appliances easy and faster on sites like NextDoor. Many people like selling on NextDoor versus a site like Craigslist because you can sell to only people in your neighborhood, and you can check their post history to get to know someone a bit before inviting them into your home to pick up their purchase. If you’re not looking to resell your appliances, consider a donation. The Salvation Army will come to your home to pick up a donation and give you a receipt for tax purposes.

The professionals at Donohoo Accounting Service are here to help you manage your finances. We have been helping people like you to wisely manage their finances for more than 20 years. For a free consultation, call us today at 513-528-3982. Check us out on Facebook, Twitter or LinkedIn for our latest updates!

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7 Expenses To Include In Your Retirement Budget

The thought of retirement may seem like a long way off. On the other hand, if you’re close to retirement age, you may be wondering if you’ll have enough savings to live comfortably. The good news is that your living expenses in retirement are estimated to be 55 to to 80 percent of what they are before retiring. However, managing your money wisely in retirement will still require a budget. You can begin to outline what your retirement budget will look like by considering these seven important costs of living.

Housing

Even among retirees who down-size from single-family homes to condominiums, housing expenses will require about 25 percent of your retirement budget. Besides mortgage or rent payments, consider that you will also have property taxes, homeowners’ insurance, association (HOA) fees and private mortgage insurance (PMI) if required.

Healthcare and Insurance

The saying goes that for the first half of our lives, we spend our health to make money; and the second half of our lives we spend our money to get our health back. Consider that about 15 percent of your retirement funds will go toward health insurance premiums and healthcare costs because even those who live healthy lifestyles find they need healthcare and health insurance in retirement.

Travel

Although you may not plan to travel the world, you are likely to travel in retirement, even if just for an occasional change of scenery. Bus tours, airfare, hotel accommodations and meals out may account for about 5 percent (or $5,000 of every $100,000) of your retirement living budget.

Entertainment

Spending on entertainment will account for another 5 percent of your retirement budget. This may seem like a low dollar amount (about $200 per month) but remember that seniors often are eligible for discounts or free entertainment perks that they didn’t get before retirement. So, $200 a month per person should go a long way for entertainment.

Emergencies and Repairs

We don’t like to plan for them, but emergencies and repairs tend to occur at least a few times a year. Appliance replacement, automobile repairs or a leaky roof may suddenly become a priority that requires cash. Have it on-hand in retirement by budgeting at least 5 percent for emergencies and repairs.

Legacy

In order to leave behind sufficient resources to your spouse, children, grandchildren or to a charity, you will need to budget for about 15 percent of your retirement income. Using the 15 percent figure, for every $100,000 you plan to leave as a legacy, you need to have about $675,000 in retirement savings.

Taxes

While some states may be more tax-friendly for retirees than other states, paying taxes in retirement is inevitable. You may be required to pay taxes on retirement income such as Social Security benefits, IRA and 401k withdrawals, interest income, annuities and pension income. Some states also collect annual taxes on cars and boats. If federal, state and local taxes aren’t withheld from your retirement income sources, making quarterly tax payments may be necessary.

Could you use some assistance mapping out your retirement savings plan? An excellent resource is an experienced accountant like those at Donohoo Accounting Services. Schedule your retirement savings consultation with Donohoo by calling 513-528-3982 or email us today. And don’t forget to check us out on Facebook, Twitter or LinkedIn for our latest updates!

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Are You on Track with Your Retirement Savings?

The days go by slowly, but the years go by fast … that’s how it is with saving for retirement. While it may seem like it doesn’t matter if you begin saving “tomorrow,” one day you may be surprised to discover that years have passed. Will you have saved what you need to live comfortably in retirement? No matter which season of your life you’re currently in, you can do it! Call them targets, milestones or goals, but aiming at various levels of savings by certain points in your life is the best way to stay on track with your retirement savings.

Early Bird

The earlier you can begin saving, the better off you’ll be in the long run. Whether you begin saving for retirement in your early ’20s or a little later, the first goal to reach lies about age 30. By that time, you should have saved an amount equal to your first year’s salary. You can achieve this milestone by systematically saving 10 percent of your salary in your employer’s 401(k) or other retirement savings plan. Additionally, during this time, begin eliminating any student debt or other long-term debt you may have.

Level Up

To remain on track, when you are between the ages of 35 and 40 you should have retirement savings that total the equivalent of two times your beginning salary. It’s also an excellent idea at this point to consider ramping up your retirement savings contributions from 10 percent to 12-15 percent. Although the increase in saving doesn’t seem like much at the outset, those “little bits” will add up by the time you reach the next level of savings. If you find yourself behind and in need of catching up, consider saving additional retirement funds. Look for ways to either increase your income, reduce your expenses – or both – and save the difference.

Critical Mass

As you enter your ’50s, retirement may seem closer than ever. But don’t let that slow you down in continuing to save. The time between ages 50 and 60 are a critical time for retirement savings. By your early ’50s, amassing somewhere between four to eight times your annual salary is a great place to be (depending on your income level, lifestyle choices, budget goals and the amount of time you have left to save). Furthermore, this is also a great time to stretch your retirement savings dollars by making catch-up contributions and working as long as possible. Retiring a year or two later than you’d like can make a significant difference in your retirement income. For example, each year worked beyond age 60 means eight percent more in Social Security benefits.

Using this timeline, you can begin paving the way to retirement with more savings than you may have thought possible. Wise counsel from experienced professionals can help you map out your retirement savings plan. An excellent resource is an experienced accountant like those at Donohoo Accounting Services. Schedule your retirement savings consultation with Donohoo by calling 513-528-3982 or email us today. And don’t forget to check us out on Facebook, Twitter or LinkedIn for our latest updates!

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5 Effective Ways CEOs Practice Self-Care

Running a business and ensuring its success takes hard work and dedication, which can mean long nights at the office and grueling work schedules in order to make sure everything is running smoothly. But part of taking care of your business means taking care of yourself as well and maintaining your physical and mental health can play an important role in the success of your business, which is why self-care is so important. From advice on how to better manage stress to making time for yourself, here are five effective ways CEOs practice self-care.

Unplug from Electronic Devices

Staying connected with your business means long periods of time in front of a computer screen or mobile device constantly sending emails and texts to make sure nothing disrupts your business. But constantly checking your inbox can be stressful and draining, leaving you burned out and unproductive. Giving yourself time away from electronic devices allows you to unwind, refocus and concentrate on what needs to be done.

Learn to Say No

This simple two letter word can help you better manage your time and workload. Saying yes to every request can leave you burdened with a heavy, unmanageable workload. Realizing that it’s ok to say no every now and then reduces stress and lets you focus on the task at hand.

Maintain a Healthy Lifestyle

Taking care of your physical and emotional well-being can be just as important in running your business as the work you put into managing day to day operations. Bad or unhealthy habits may be hard to break, but a poor diet and lack of sleep can eventually take a toll on your health and have a negative effect on your work. Getting the right amount of sleep, exercising and eating well help keep your mind sharp and maintain your energy so you can be productive.

Set Time Aside for Yourself

Stepping away from work and taking time to unwind is a great way to reduce stress, allowing you to recharge and refocus. Whether it’s enjoying a hobby, taking time to meditate, or enjoying a good book. However you choose to enjoy time for yourself, relaxing is an important part of practicing self-care.

Don’t Be Afraid to Ask for Help

You may feel the need to do everything yourself, but taking on too much responsibility can burn you out and have a negative impact on your productivity. But successful companies are often a team effort so don’t be afraid to ask for advice from trusted colleagues or for help seeing projects through.

Take Care of Your Business With Help From Donohoo Accounting Services

While practicing self-care is vital to your business’s success, so is taking care of your finances. Donohoo Accounting Services has been helping local CEOs wisely manage their personal and professional finances for more than 20 years. For a free consultation, call us today at 513-528-3982.

Check us out on Facebook, Twitter or LinkedIn for our latest updates!

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