It’s true that the benefits of a parent cannot be measured or quantified in any meaningful way. It’s hard to put a price on the emotional commitment and special experience of raising a child as a parent, some of which may not even be realized by the parents themselves until afterwards. But it is undeniable that the experience of parenthood is a rewarding and special time in someone’s life.
What is the financial prize for winning the Super Bowl?
When you win the Super Bowl, you get a big ring and your team takes home a giant trophy. But for most guys out on the field, there’s a bigger prize waiting elsewhere. There are financial incentives associated with winning the big game. Some of them are direct, while others come later, in ways that most people will never see. The financial incentives are even different for coaches, players, and the owners who already have billions of dollars anyway. So how do the finances of the Super Bowl shake out?
A Direct Bonus
When Seahawks coach Pete Carroll threw away the Super Bowl, he cost his players and coaches a significant amount of money. Each player from the winning team receives $97,000 as a bonus. The losers are not left empty-handed, of course. They make off with a cool $49,000 each. Still Carroll’s mistake cost his players $48,000, as they had to settle for the consolation prize.
Endorsements Galore
Where things really get interesting is when one considers the marketing gains that players make when they become Super Bowl champions. The calculations are necessarily very indirect when talking about things like sponsorship value, but there is definitely some benefit to winning the big game. In the wake of winning the Super Bowl in 2014, Seahawks cornerback Richard Sherman signed endorsement deals with Campbell’s, Nike, and Microsoft. Running back Marshawn Lynch used his Super Bowl win to propel him to a deal with Skittles.
It’s difficult to know just how value the Super Bowl win was to these players and their financial futures, but it’s clear that winning the big game elevates players in the marketing sense.
Ownership Rewards
Super Bowl wins work out well for owners, too. The New England Patriots have won four big games over the last 15 years. In doing so, Tom Brady and company have turned the franchise into one worth over $2 billion. In addition, the Patriots “brand value” alone is worth $350 million. Some of these gains would have happened without wins in the big game, but it’s clear that taking home trophies helped the franchise grow in value.
What’s in it for coaches?
Winning a Super Bowl is the brass ring for coaches, and they are often defined by their ability or inability to take home a ring. When Pete Carroll led the Seahawks to last year’s Super Bowl victory, he was signed to a five-year extension that made him the NFL’s highest paid head coach at around seven million bucks per year. While he might be the goat in this year’s Super Bowl for his horrific goal line call, he’s living proof that if you can win the Super Bowl at least once, you can cash in on financial rewards in a big way.
There’s something to be had for nearly everyone when a Super Bowl win is in the offing. This year, the Patriots will get to enjoy those rewards. Next year, it’s bound to be some other team, some other coach, and some other owner.
Future Dreams
While jogging with my wife a few days ago, we had a conversation that we haven’t had in years. We discussed our dreams.
It’s an important conversation for couples to have. What are your hopes? What are your dreams? Where do you want to be in 10 years? In 20? In 50? Planning for the future gives you a map for the present.
My wife and I hadn’t had this conversation in years. A few days ago, we did. Our life-goals are simple and achievable.
I want to leave the corporate world and support my family with writing and the training classes I do. I want a chunk of land outside of any major metropolitan area, but close enough for the entertainment and shopping. I want enough land to expand my classes on my own property, relying on no one.
My wife wants enough land to have some horses. It was unspoken, but I think she wants my goals to take off so they can support her goals, too.
We want a comfortable retirement and we want to help the kids with college.
We’re a bit behind the game for college funding. That’s ok, though. There is nothing wrong with a kid working his way through college and learning those life lessons.
We are also behind on the retirement. But, if I can support us doing the things I love, I don’t need $X million. Retirement isn’t a cessation of activity, it is taking the time to do the things you love on your own schedule. If writing a book while sitting on my private range is enough to fund our life, that’s the perfect retirement.
Fighting Fair
This was a guest post on another site early last year.
Everyone, at times, has disagreements. How boring would life be if everyone agreed all of the time? How you handle those disagreements may mean disaster.
This is particularly true when you are arguing with your spouse. You spend most non-working moments with this one person, this wonderful, loving, infuriating person. Your emotions will naturally run high while discussing the things you care most about with the person you care most about. Arguments are not only natural, but inevitable.
How do you have an argument with someone you love without lasting resentment?
You have to argue fairly. There are a few principles to remember during an argument.
- When your partner is talking, your job is to listen with all of your energy. You are not interrupting. Your are not planning your rebuttal while waiting for your turn to talk. Your are listening, nothing else. If you don’t listen, you can’t understand. If you don’t understand, you can’t find a resolution.
- Remember that your partner cares. If she didn’t care, she wouldn’t feel so strongly about the argument. This isn’t a war, just an argument. She still wants to spend the rest of her life with you. Keeping this in mind will change the entire tone of the argument into a positive interaction. You will still disagree, but you will be looking for a solution together, instead of finding a “win” at any cost.
- Search for the best intent. Remember #2? There is an incredibly good chance that, if there are two ways to interpret something your partner has said–a good way and a bad way–your partner probably meant the good way. Even if you are wrong, it is far better to err on the side of resolution than the side of antagonism.
- When your partner has finished speaking, it’s still not your turn to argue. Your job now is to repeat your understanding of the issue, without worrying about problem-solving. Before you can refute the argument–or even establish your disagreement–you have to know that you understand her position and she has to know that you do. Without understanding, there can be no path to resolution that doesn’t cause resentment. If you have too much resentment, you won’t have a marriage.
After all of this, it will finally be your turn to make your point. Hopefully, your partner will be following the same rules so you can solve your problems together, without learning to hate each other.
Arguments in your marriage aren’t–or shouldn’t be–intended to draw blood. Fights happen. If your goal is to win at any cost, you will both lose, possibly everything.
All About Tax-Sheltered Annuity Plans
This is a guest post.
If you’ve previously heard of tax-sheltered annuity plans but are unsure of what they are, let this guide help you. Here’s what you need to know about tax-sheltered annuity plans.
What is it?
First things first, what are tax-sheltered annuity plans? A tax-sheltered annuity plan, or a 403(b) plan, is a retirement plan for some employees of various institutions to participate. This plan allows employees to contribute a portion of their salary to the plan. The employer may also contribute to the employee’s plan.
Who is Eligible?
Eligible Code Section 501(c)(3) employees tax-exempt organizations may participate, an employee of a public school, a state college, or a university, and eligible employees of churches. Employees of public school systems organized by Indian tribal governments, Ministers employed by Code Section (501)(c)(3) organizations, and self-employed ministers may also participate. Ministers must be employed by organizations that are not Code Section 501(c)(3) tax-exempt organizations, and they must function as ministers in their day-to-day professional responsibilities with their employers.
What are the Benefits of a 403(b) plan?
In a 403(b) plan, contributions are tax deductible. Taxes are paid on distributions in retirement, which is when a lot of people are in a lower tax bracket. As mentioned earlier, employers can match 403(b) contributions on a pretax basis. Loans can be taken against a 403(b) plan, which will help in certain situations, like buying your first home.
What types of contributions can be made?
In a 403(b) plan, you can have several types of contributions:
- Elective Deferrals – These are contributions made by the employee under a salary reduction agreement. This allows an employer to withhold a certain amount of money from an employee’s salary to deposit it in their 403(b) account.
- Nonelective Employer Contributions – These are any contributions to the 403(b) plan that were not made under a salary reduction agreement, which include matching contributions, discretionary contributions, and certain mandatory contributions that were made by the employer. The employee will pay income tax on all of these contributions, but only when they’re withdrawn.
- After-Tax Contributions – These are contributions made by an employee, which are reported as compensation in the year they were contributed and are included in the employee’s gross income for income tax purposes.
- Designated Roth contributions – These are elective deferrals that the employees elects to include in their gross income. The plan must keep separate accounting records for all contributions and for all gains and losses in the designated Roth account.
Can Employees Exclude Employees From Contributing?
Absolutely. The 403(b) plan must allow allow employees to make elective deferrals under the plan, but under the universal availability rule, if the employer permits one employee to defer salary by contributing it to a 403(b) plan, they must extend the offer to all of their employees. The only exceptions are employees who would contribute less than $200 annually, those employees who work less than 20 hours a week, employees who participate in a 401(k) or 457(b) plan, or students performing services that are described in Code Section 3121(b)(10).
So When Can Employees Get the Dollars?
Employees may withdraw from the 403(b) plan when the reach the age of 59 and a half, have a severance from employment, have a financial hardship, or become disabled. Money can also be taken out if an employee passes away. The employee will have to pay taxes on the amount of the distribution that was not from designated Roth or after-tax contributions, and they may have to pay an additional ten percent early distribution tax.
Are There Rules for In-Service Transfers or Exchanges?
Yes. Contract exchanges with a non-payroll slot vendor are permitted only if the plan permits it, the accumulated benefit after the exchange is, at the very least, the same as before the exchange, if the employer and the non-payroll slot vendor agree to share information regarding the plan’s terms, if any pre-exchange benefit restrictions are maintained after the exchange, and if the vendor complies with the terms outlined in the plan.
How Much Can be Contributed Annually? Does the Employee Have to be Current?
As of 2013, the maximum combined amount that an employer and an employee can contribute to a 403(b) plan is $51,000. That number may go up, depending on the annual cost-of-living.
If the plan allows, an employer can contribute up to the annual limits for an employee’s account for up to five years after the date of severance. No portion of the contributions can come from money that was due to be paid to the former employee, and these contributions must cease if the employee passes away.
There’s much more to learn about a 403(b) plan, but these are the basics. Does your company have a 403(b) plan?
My First Storage Auction
I’ve mentioned before that my wife is unemployed. Please note, this is unemployment, not “stay at home mom”. The differences are simple:
- She’s looking for a job
- The kids are still in daycare
While she’s looking for work, we’ve decided that it’s a good time to explore some other options for income. Recently, we decided to look into storage auctions.
For the uninitiated, a storage auction is held when someone with a rented storage locker quits paying their bill. Eventually, auctioneers come in and sell the unit–with minimal inspection–to the highest bidder. If you’ve watched Storage Wars or any of the dozen spin-offs or rip-offs, you’ve seen a storage auction.
Yesterday, a local auctioneer ran a circuit of 7 auctions for the different locations of one company. At 10AM, my wife set off for the first one with $1000 of seed money, a flashlight, and a couple of padlocks.
She didn’t get anything at that auction and she skipped the next two because they weren’t in very good neighborhoods. Poor neighborhoods come with safety issues and low-value stuff.
The 4th auction was just 2 miles from our house, so she picked me up. We got there about noon and were told they weren’t expecting the auctioneer until 1. They couldn’t tell us exactly because the auctions take as long as they take. If a lot of people show up, the inspection can take a long time, since everybody has to stand in line to get a minute or two to peer in at the unit up for sale. The auction actually started about 1:30.
There were 3 units up for sale. The listing said 4, but one of the renters ran in at the last minute to pay her bill.
None of the units were anything special. One had two dozen boxes of Grainger catalogs and $50 worth of tools. Another was full of broken box springs, but may have had a dresser in the back. The last had a tub full of (frozen) paint bottles and a box full of kids’ books.
After that, I went back home to work, while she left for her third and final auction of the day. Again, she didn’t get a locker, but she did convince someone to sell her a fancy mirror out of one of the lockers. She paid $60, and after a bit of touch-up, it should sell for $2-300.
We didn’t buy anything, but it was interesting to see the process. Dealing with an auctioneer rattling off numbers isn’t nearly as intimidating as it seems.
The whole setup is pretty simple.
My wife registered at the first auction, so we didn’t have to worry about that at the later auctions. That consisted of reading the rules, writing down her name, and signing the paper.
At each unit that was up for grabs, the door was opened and all of the potential buyers lined up to take a minute to see what they could. We weren’t allowed in the unit, and we couldn’t open any boxes.
Once everyone had a chance to peak, the auction started.
When each unit was sold, the winning bidder stuck a lock on it, and everybody moved to the next unit to repeat the process. The three units were done in 15-20 minutes.
If you’re going to a storage auction, you need to bring cash, a flashlight, and a padlock. Without those three things, you can’t inspect a unit or pay for it if you win.
Finding auctions isn’t intuitive, in any way. The best sites I’ve found are AuctionZip.com and StorageTreasures.com.
My wife also got contact information for the largest storage facility chain in the area and we got on that list so we’ll get the full schedule of their storage auctions each month. Next week, they have auctions in some of the richest suburbs in the area.
My wife is planning on running that circuit at least one day next week.
It’s not “easy” money, but it should be a good way to bring in a little more money. If we can make enough to keep her from having to get a traditional job, that’s gravy.
Have you ever tried out a storage auction? How did it go?