Contrarian Thinknig Can Put Us on the Right Track

Contrarian Thinking Can Put Us On The

Right Track

It makes business more interesting when there are a few contrarians around. A Jeff Bezos, a Steve Jobs, or an Elon Musk, those who challenge commonly accepted assumptions. They stir our placid mental waters to get the creative juices flowing.

As it turns out, the start of a new decade is a good time for a little contrarian thought - for looking at things differently. In fact, it may be helpful since we’re entering a period that will present us with far-reaching changes and daunting challenges. In other words, a time when we can benefit from getting tougher with ourselves.

Here are four contrarian thoughts about taken-for-granted ideas that may be tried but, as it turns out, not necessarily true:

1. Keep your head down and go with the flow Never raise your hand. Don’t do anything to call attention to yourself. Keep a low profile. Go along to get along. Whatever else may be said about the need for new ideas, these remain the mantras for success. Those who dare to wander off the path do so at their own peril.

All of it may have worked when the goal was having managers lead organizations. Their mission was to make sure things ran like well-oiled machines. It’s no surprise that surveys indicate that a high percentage of employees (one puts it as high as 83%) are bored, want new challenges, and are actively looking for new jobs.

Today, the term manager is fading and being replaced by a leader, someone who is charged with the responsibility of assuring an enterprise meets challenges by helping people succeed.

2. Everything’s going down the drain In spite of an abundance of bad news and unspeakable horrors, nothing seems to stop us from hitching our wagons to a star, as the saying goes. Even though we’re faced with mountainous problems, nothing seems to curtail optimism, that tomorrow will be a better day.

To be sure, there are good reasons why the idea of progress holds sway over us. Indicators over the last two centuries paint a bright picture of the future—improved health, longer lives, technological advancements, a better educated citizenry, income growth, and dozens more.

All this is wonderful, except it’s not always the way it plays out in our individual lives: loved ones die, promises are broken, jobs are lost, and dreams don’t come true even when we work hard. As someone has said, “Bad things happen to good people.” They do, so It’s easy to be bitter, angry, and just plain negative.

Not long ago, I spoke with a man receiving palliative care after surgery for stage 4 pancreatic cancer, which was discovered weeks after his long-anticipated retirement. To keep busy following surgery, he took a part-time job. After a few minutes on the phone, he told me he needed to get ready for work, and added, “I love it!” That’s when I came to understand the awesomeness of resilience and optimism.

By John Graham

3. Don‘t sweat the small stuff This is good advice since our lives seem to be plagued with endless amounts of irritating, time-consuming, and inexcusable stuff that drives us crazy. This is why it’s helpful to take a “water off a duck’s back” approach as a way to keep our sanity.

But (and here it comes), not about everything. In a client memo, an attorney used “onerous” (it means burdensome) instead of “onus” (it means responsibility or duty), Small stuff? Just a mistake. Perhaps, but when you’re preparing a legal document that impacts someone’s life, it can be a big deal.

This is why a “Don’t worry about it” attitude simply won’t cut it in a business environment, one that requires (and rewards) accuracy, clarity, and focus. Vocabulary may not save the world, but it may save your next sale, deal, or even your job.

4. I’m a good judge of people Most of us take pride in being good at figuring out others. If asked, we would probably say, “I sure like to think I’m a good judge of character.” But, if you’re like me, it’s easy to forget about the times you were wrong about someone when it came to telling the truth. Then, we wonder why we missed it. But it still doesn’t stop us from thinking we’re a pretty good judge of people.

Yet, I struggled with why it’s so hard to know when someone is lying. I found the answer when reading Malcolm Gladwell’s book, Talking to Strangers. He discussed the “Theory of Truth Default,” a concept developed by communications researcher Timothy R. Levine, Ph.D. We’ve all criticized others for failing to spot a liar, even though there were plenty of reasons or “red flags” to alert us to a problem. But, as Gladwell says, we should be asking something else “The right question is: were there enough red flags to push you over the threshold of belief? If there weren’t, then by defaulting to truth, you were only being human.”

Here’s an example. A Board of Realtors hired a marketing consultant to help with announcing the hiring of a new president, who was to arrive shortly from another state. Even though at the last minute, several executive board members expressed concerns about the individual’s qualifications at a meeting.

Sensing the situation, the consultant asked if he could be of help. They agreed. Within 36 hours, he turned up sufficient negative information to push the executive committee over the edge of belief. The employment offer was withdrawn, avoiding a potentially disruptive situation.

Dr. Levine holds that defaulting to truth is human, which can be the easy way out. So, when we have doubts, it’s not time to remain silent but to dig deeper.

While some contrarian thinking can be damaging, it can also be helpful in clarifying thinking and making better decisions.

John Graham of GrahamComm is a marketing and sales strategy consultant and business writer. He is the creator of “Magnet Marketing,” and publishes a free monthly eBulletin, “No Nonsense Marketing & Sales Ideas.” Contact him at jgraham@grahamcomm.com or johnrgraham.com.

The start of a new decade is a good time for a little contrarian thought - for looking at things differently... a time when we can benefit from getting tougher with ourselves.

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April 22-23 DoubleTree Hotel ■ Oak Brook, IL 8 hours continuing education (pending approval)

Designed to meet the needs of everyone in our industry

young agents, veteran agents, CSR’s

Registration Fee: $130

(Includes all education sessions, breaks, meal functions, time with exhibitors, and social function with drink tickets.)

Discounts for multiple registrations from same agency. See website for details. Registration fee increases to $140 on April 1.

A block of rooms has been secured at the DoubleTree Hotel for $114/night. Room block expires March 31.

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Thank You to Our Current Sponsors:

Programming & Speakers

John F. Nichols John F. Nichols, MSM, CLU is a nationally recognized disability benefits consultant, the creator of disability products and administration systems and an expert witness in disability proceedings. He is a frequent speaker at an array of local, state and national meetings, including NAIFA’s National meeting and MDRT’s Main Platform.

In 1993, John had a near-death experience from a water skiing accident that left him paralyzed from the neck down to his toes. Through six years of rehabilitation, he reached a level of recovery that less than 1 percent of all spinal cord injury patients attain.

Stacey Brown-Randall • Referrals... Without Asking • • Productivity Demystified •

Matt O’Neill • Dare to be Different • • Six Secrets to Peak Producer Performance •

Applied Underwriters Berkshire Hathaway GUARD Insurance Capital Premium Financing Continental Western Group Donald Gaddis Co., Inc. Hemphill Financial Services Markel Specialty Mercury Insurance National Catholic Society of Foresters Current List of Exhibitors:

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INSIGHT MARCH 2020 TAX LAWS & TAX DEDUCTIO NS for Independent Insurance Agents

Building Diversity and Inclusion: A Modern Guide By Leanne Bernhardt Printed on PropertyCasualty360.com

2020 EDGE Conference Legislative Conferences Sales by the Obvious, and Not-So-Obvious, Numbers Plus

By Mark Kuchar, CPA

A year has passed since the chaos of the 2018 tax filing season. While most everyone benefited from the new tax law, it wasn’t without pain. I have been preparing taxes since 1985 and it was the most sweeping change I have seen since the Tax Reform Act of 1986.

So, after the biggest tax law changes in nearly 35 years were enacted for the 2018 filing season, your 2019 tax return will see relatively few changes. Among them are:

1. No individual mandate penalty. Prior to 2019, people were required to have health insurance under the Affordable Care Act. If they didn’t get coverage or did not qualify for an exemption, they were required to pay a penalty when they filed their taxes. Starting in 2019, there is no penalty for not carrying health insurance.

2. No alimony deduction. In prior years, for a divorce agreement that included alimony payments, those payments were deductible on your Federal tax return. For the 2019 tax year, those payments are no longer deductible. In addition, the recipient of alimony will not have to claim these payments as income. This is for divorce decrees entered into in 2019 or later.

3. Higher standard deduction. The standard deduction amounts were increased for inflation. The amounts for 2019 are:

Married filing jointly $24,400 up $400 from last year Married filing separately $12,200 up $200 Head of Household $18,350 up $350 Single $12,200 up $200

4. New tax filing form for seniors. Form 1040SR is available for anyone over ager 65. It is a return like the form 1040. The difference is larger, easier to read fonts, better printability and a built-in standard deduction chart. The goal is to make it easier for seniors to file returns. Anything that can be put on a regular 1040 can be used on a 1040SR.

In addition to the above changes, the tax brackets widened by about 2%. For example, in 2018 a single person had to make $9,325 to be in the 10% bracket. For 2019, the amount is $9,525.

The above is not intended to be tax advice. Please consult your own tax advisor to see if any of the tax changes are applicable to your individual circumstance.

In December 2019, Congress passed the SECURE act and the President signed it to law. Most provisions became effective January 1, 2020 but some don’t take effect until 2021. The SECURE Act isn’t tax legislation but is focused on Retirement Plan changes. The changes are important to note as they affect both workers and employers.

1. Increased 401k eligibility for part-time employees. If you have part-time workers who worked over 500 hours a year for the past three years, they must be permitted to participate in the company’s 401k plan. Effectively, they must be allowed to make contributions from salary deferrals. You are not required to make an employer match, however. This is in effect for plan years starting after 2020.

2. Penalty free withdrawals for birth of a child or adoption. Participants can take up to a $5,000 withdrawal from a plan without paying the 10% early withdrawal penalty. Regular income tax provisions will still apply. This can be done from a 401K, 403b, 457b plan or an IRA. It doesn’t apply to a defined benefit plan.

3. Required minimum distribution now starts at 72.

Currently, an individual must start taking distributions from their retirement plan or IRA at age 70 ½. Now, the required distributions don’t need to start until age 72.

4. No maximum age for a traditional IRA contribution. Under the old law, a person could not contribute to a traditional IRA after age 70 ½. Now, a person can make IRA contributions without regard to age.

5. Annuity options in retirement plan. The new law allows annuities to be offered as an investment option inside retirement plans.

6. Inherited IRA’s and defined contribution plans must be distributed within 10 years. Currently, someone who inherits an IRA or defined contribution plan could spread the distribution over the life expectancy of the oldest beneficiary. Now it must be completely distributed within 10 years. This does not apply to spouses or minor children.

The SECURE ACT made sweeping changes to the retirement plan landscape. The changes listed above are only summaries of key provisions. Please do not take any actions based on these summaries. We recommend you talk with your tax advisor or investment advisor to see if and how any provision would apply to your individual circumstance.

March Kuchar, CPA, is the Chief Financial Officer for the IIA of IL. He can be reached at mkuchar@iiaofil.org.

March 16 Partnerships S-Corporations

April 15 Individuals Corporations

Quarterly estimated tax deadlines are due April 15, June 15, Sept. 15 and Jan. 15.

To view the 2020 IRS Tax Calendar, go to www.irs.gov/pub/irs-pdf/p509.pdf.

Small Business Tax Resources

Here are some additional resources for learning about taxes:

U.S. Small Business Administration

- Maintains a guide on navigating the tax code and staying up to date on your tax responsibilities as a business owner. - www.sba.gov/business-guide/manage-your-business/ pay-taxes

- Provides helpful guide on choosing the right business

structure if you are just starting your business this year. - www.sba.gov/business-guide/launch-your-business/ choose-business-structure

Internal Revenue Service

- Includes information about how the Affordable Care Act (ACA) affects small business owners’ taxes. Note: Further changes to the ACA may be on the horizon. - www.irs.gov/affordable-care-act/employers

- Has additional details on the Small Business Health

Care Tax Credit, which provides a tax credit to small businesses that offer health care coverage to its employees. You can learn if you are eligible, and how to calculate and claim your credit. - www.irs.gov/newsroom/small-business-health-care-tax-- credit-questions-and-answers

- Provides resources for taxpayers who file Form 1040, Schedules C, E, F or Form 2106 as well as small business with assets under $10 million. - www.irs.gov/businesses/small-businesses-self-employed

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