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The Propeller – Tax and Tech Tips Inside – Open up today! – 11/5/2023

How I know so many random things…

As many of you know, I’ve had a goal of reading/listening to one book/audiobook a week this year. Today I start my 43rd book for the year. by subscribing to The Propeller, you get a review of each book I have read.

I won’t claim this is very easy. There are several tips/tricks that I have used to make sure I am getting the most out of these books while spending at most 1 week on each book. Some books have taken the whole week, and some I am through in a few days.

The average author invests 6+ months into writing a book. So, finish 52 books in 12 months = 26+ years of knowledge. (Maybe this is “funny” math, but the point is, reading helps you gain knowledge)

Your personal, spiritual, family, and business life will grow as you do. So, grow!

Pro Tip 1: Turn your car into a classroom – whatever musical artist you’d be listening to instead isn’t paying your bills.

Bill Gates reads around 50 books a year.

Elon Musk read two books a day (according to his brother). Whenever anyone asks Elon how he learned to build rockets, Elon says, ‘I read books.”

Warren Buffett spends five to six hours a day reading.

Mark Cuban reads for three hours every day.

If people who have so much to do in a day find the time to read, I’m sure you can too.

Pro Tip 2: Listen to Audiobooks at 1.2 or faster speed. It doesn’t distort the voice until you get to about 1.8 or higher and you get through it a little faster!

You don’t lose anything by picking up the habit of consuming books – whether by reading them or listening to them.

Tech: Microsoft Copilot

As an aviation aficionado, I’m thrilled by Microsoft’s choice to dub their AI technology integration “Copilot.” Microsoft boasts a fleet of over 40 AI Copilots, seamlessly integrated into a variety of our widely-used products.

Microsoft’s Copilot fuses the capabilities of advanced AI large language models with your unique data and verbiage, right within your workflow. This synergy transforms your input into one of the most formidable tools for productivity available today.

These Copilots co-pilot with you in familiar Microsoft 365 Apps, including Word, Excel, PowerPoint, Outlook, Teams, among others. They provide intelligent support in real-time, empowering users to bolster their creativity, productivity, and skill set.

A colleague at Microsoft has compiled a series of excellent videos showcasing these features and how to use them in products that many of you use on a daily basis.  Follow these links to watch the videos:

How to use Copilot in Excel

How to use Copilot in Word

How to use Draft with Copilot

How to use Copilot in PowerPoint

How to use Copilot in Outlook

You can also check out the Microsoft official Copilot website: Microsoft Copilot – Microsoft Adoption

Finance: End of Year Tax Planning Tips

As 2023 draws to a close, it’s an opportune time for individuals and business owners to review their financial picture and make any last-minute adjustments to their tax strategies. Effective year-end tax planning can help to minimize your tax liability and set the stage for a financially productive new year. Here are some essential tips for year-end tax planning in 2023.

  1. Understand the Current Tax Laws: Stay updated with the latest tax regulations. The IRS occasionally makes adjustments for inflation or policy changes, and being aware of these can help you make informed decisions. For instance, if tax brackets have been adjusted, you might want to consider whether deferring income into the next year could place you in a lower bracket.

  2. Maximize Retirement Contributions: If you haven’t already maxed out your contributions to retirement accounts such as a 401(k) or an IRA, consider doing so before the year ends. These contributions can reduce your taxable income and grow tax-deferred. For 2023, the 401(k) contribution limit is $22,500, with an additional catch-up contribution of $7,500 if you’re age 50 or over. (Higher limits for after-tax contributions and Mega Backdoor Roth Contributions)

  3. Harvest Tax Losses: Review your investment portfolio for any losing investments. Realizing losses can offset gains you’ve made during the year, which can help reduce your taxable income. Remember the ‘wash-sale’ rule, which prohibits you from claiming a loss on a security if you purchase a substantially identical security within 30 days before or after the sale.

  4. Optimize Deductions: Itemizing deductions can be more beneficial than taking the standard deduction if your allowable expenses are significant. Keep track of expenses like medical costs, state and local taxes, mortgage interest, and charitable donations. Bunching deductions into one year can sometimes push you over the standard deduction threshold and decrease your taxable income.

  5. Leverage Flexible Spending Accounts (FSAs): If you have a Flexible Spending Account, make sure to spend the remaining balance before the year’s end since these funds typically don’t roll over. Check with your employer if they offer a grace period or if you can carry over a limited amount to the next year.

  6. Gifting Strategies: Consider making gifts to take advantage of the annual gift tax exclusion, which is $17,000 per recipient in 2023. This allows you to reduce your taxable estate without incurring gift tax or using your lifetime gift and estate tax exemption.

  7. Review Your W-4: The end of the year is a good time to check if you’re withholding the correct amount of taxes from your paycheck. If you anticipate a large refund, you may be withholding too much. Conversely, if you owe a significant amount, you might want to withhold more to avoid underpayment penalties.

  8. Make Charitable Contributions: Charitable giving can provide a deduction for those who itemize. If you donate to a qualified charity, keep all receipts and be aware that non-cash donations, such as stocks or property, can also provide tax benefits.

  9. Consider a Roth Conversion: If your income is lower this year, it might be an opportune time to convert a traditional IRA to a Roth IRA. You’ll pay taxes on the converted amount at your current lower tax rate and enjoy tax-free growth thereafter.

  10. Plan for the Alternative Minimum Tax (AMT): If you’re subject to the AMT, some traditional tax planning strategies may not be beneficial. It’s important to run the numbers to avoid any unpleasant surprises.

  11. Assess Your Health Insurance Coverage: The end of the year is also a time to review your health insurance to ensure it still meets your needs. If you’re purchasing insurance through the Health Insurance Marketplace and you’re eligible for a premium tax credit, any changes in income can affect your credit amount.

  12. Consult with a Professional: Each individual’s tax situation is unique, and laws continually change. Consult with a tax professional to help tailor a year-end tax strategy that’s most effective and beneficial for you.

By taking the time to address these tax planning considerations, you can position yourself for a more secure financial footing as you enter 2024. Remember, proactive planning is the key to minimizing your tax liability and ensuring that you’re in the best possible position when it’s time to file your tax return.

Tech: Smart Power Strips

Are you looking to gain more control over your home electronics, save on energy bills, and add a layer of convenience to your life? This week’s tech tip introduces you to the smart power strip, an often overlooked but incredibly useful gadget in the world of home electronics.

What is a Smart Power Strip?

A smart power strip is a plug-and-play device that looks similar to your traditional power strip but is infused with smart technology. It allows you to control your devices remotely through a smartphone app or voice control via smart assistants like Alexa or Google Home. Some models even feature energy monitoring, surge protection, and the ability to schedule when outlets are turned on or off.

I have been using smart sockets and smart power strips for years to control lights, TVs, appliances, etc.  Here is why
 you should consider one:

  1. Energy Efficiency: Smart power strips can detect when a device is in standby mode and cut off power to save energy. This not only reduces your carbon footprint but can also lead to noticeable savings on your electricity bills.

  2. Convenience: Ever left home wondering if you left something on? With a smart power strip, you can turn off appliances remotely. Plus, with scheduling, you can have devices like coffee makers or lights turn on exactly when you need them.

  3. Safety: The surge protection feature on many smart power strips protects your devices from voltage spikes. Additionally, being able to turn off outlets remotely can reduce the risk of fire from devices left on for too long.

How to Get Started

  1. Choose the Right Smart Power Strip:

    • Consider the number of outlets, USB ports, energy monitoring features, compatibility with smart home ecosystems, and the level of surge protection when selecting a strip.  Here is a link to several smart power strips I recommend:  https://amzn.to/49l3jJU
  2. Install a Companion App:

    • Most smart power strips have an associated app. Download it on your smartphone and follow the setup instructions to connect your power strip to your home Wi-Fi network.
  3. Integrate with Your Smart Home:

    • If you have a smart home assistant (Google Home, Amazon Alexa), integrate your smart power strip for voice control. Set up custom commands to control your devices.
  4. Set Schedules and Automations:

    • Use the app to create schedules for each outlet. Automate your morning routine, your workout time, or your dinner prep—your electronics can now follow your daily rhythm.
  5. Monitor and Adjust:

    • Keep an eye on the energy usage data if available. You might find opportunities to save more energy by adjusting how and when you use your connected devices.

This Week’s Actionable Tip

Walk through your home and make a list of devices that could benefit from being on a smart power strip—think entertainment systems, office equipment, and kitchen gadgets. Start with one smart power strip in an area where you can make the most impact, and expand as you become more comfortable with the setup and usage.

Smart power strips are an excellent way to add efficiency, convenience, and a touch of intelligence to your home electronics management. By incorporating one into your home, you’re not just investing in a gadget; you’re investing in a smarter, safer home.

Quote of the Week

“Show respect to all people, but grovel to none.”
— Tecumseh


You never know what someone else is going through, so show everyone respect by default.

BUT you should never bow to anyone, literally or figuratively speaking. Deliberately making yourself look weak doesn’t win you any favour, it turns people off.

People respect confidence. You don’t need to act cocky or embellish, but you do need to act like someone who knows their worth.

What I’m Reading/Listening To This Week
What I read Last week:

This was a fantastic book.  Reading this book was like downloading a massive update to your mental database—a whopping 600-plus pages of high-definition content that required a week-long marathon of processing power.  But oh, was it worth the bandwidth! Its narrative was so compelling, that it turned every ‘I’ll just read a few pages’ into a late-night binge session, making the task of putting down this literary marvel astonishingly challenging

This biography is about the most fascinating and controversial innovator of our era. The book is an intimate story of Elon Musk, a rule-breaking visionary who helped to lead the world into the era of electric vehicles, private space exploration, and artificial intelligence. 

The book details Musk’s early years including his migration to the United States, and his involvement in multiple high-profile ventures, including Zip2, PayPal, SpaceX, Tesla, and Neuralink. Isaacson presents an in-depth view, painting a portrait of a man driven by a relentless quest to solve some of humanity’s most pressing challenges.

The book delves into Musk’s relationship with his father, an engineer, rogue, and charismatic fantasist. His father’s impact on his psyche would linger. Elon developed into a tough yet vulnerable man-child, prone to abrupt Jekyll-and-Hyde mood swings, with an exceedingly high tolerance for risk, a craving for drama, an epic sense of mission, and a maniacal intensity that was callous and sometimes destructive.

Other major items covered in the book are discussions about the demons that drive Musk and what it takes to drive innovation and progress. Isaacson spent two years shadowing Musk, attending his meetings, walking his factories with him, and spent hours interviewing him, his family, friends, coworkers, and adversaries. The result is the revealing inside story, filled with amazing tales of triumphs and turmoil. The book provides a rare insight into Musk’s thoughts, motivations, and experiences, as well as the ups and downs of his career.

One thing that I really enjoyed in the book was the mention of the CyberTruck and the design process and thinking behind it.  I have a CyberTruck on reserve (If it ever makes it to market!).  It has such a unique design, but this book helps one understand the choices made and why it is what we see today in the prototypes.

I highly recommend this book, and if this book were a SpaceX rocket, reading it would be like strapping yourself to the Falcon Heavy of knowledge in Elon Musk’s brain, and let’s face it, it’s the closest any of us are getting to Mars!

Read or Listen by picking up your copy here: https://amzn.to/47prs0r

What I am Listening to this week:
 

If you live in Columbus, I can almost guarantee you have eaten at a Cameron Mitchell restaurant.  I am looking forward to reading his story this week.

Listen or read along by picking up your copy here:  https://amzn.to/3MvSkUh

 

The first snowflakes of the season have landed, are you ready for winter?  Until next week…



This is re-published from the weekly email sent by Leonard Mack entitled The Propeller. To subscribe, visit https://www.LeonardMack.com/subscribe and read it every Sunday evening.

This intellectual nourishment is intended for informational purposes only. One should not construe anything herein as being legal, tax, investment, financial, or other advice.

My rule is this – I have no advice to give, only experience to share. I have no interest in being a guru or telling people what they should do. Rather, I share my own experience because there is no right or wrong. Your mileage may vary.