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College Graduates Seeking Jobs

Jobs in gold text.

Graduating in 2020 has been unconventional to say the least. From ending the semester with online coursework to virtual graduation ceremonies, graduates now face a very different economy as they set out to start their careers. Honing job-hunting skills is critical in this environment. Consider these tips to get started:

EXPAND THE SEARCH

Regardless of your major, take a creative approach to your job search and consider companies off the beaten path or those that have grown in recent months, rather than those that are still trying to recover (like travel and hospitality, for instance). Pharmaceuticals, telecommunications, grocery, and online retail are hiring at all levels, including marketing and administration positions. Many job search platforms have created hiring hubs that focus specifically on remote opportunities and in-demand positions. Also consider temporary or contract work to gain experience.

NETWORK ONLINE

Networking is often more effective than simply searching posted jobs. Send private messages via email or LinkedIn to people working at companies you’d like to join. Ask for a coffee date to learn more about their work. Always ask for referrals to others who may be hiring. Stay current by joining professional groups on social media platforms like LinkedIn and maximize the impression you make with your personal profiles.

OPTIMIZE SOCIAL MEDIA

Many hiring managers check applicants’ social media accounts. You can shine by actively using your social media accounts. Always keep your profiles clean. Post relevant content to platforms like Twitter and provide thoughtful commentary on issues in your desired field. Posts serve as a part of your resume and can open the door to new connections and opportunities.

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August 2020 Client Profile

Lori is retired and concerned about the fallout from the pandemic affecting her finances. What steps should she take to help protect her investments?

Start by evaluating your income needs and sources. If you rely heavily on investments for income, but your portfolio took a hit, you may have to reduce your spending and withdrawal rate for a while to prevent having too little in your later years.

On the flip side, if you have been taking required minimum distributions (RMDs), but do not need the income, you can skip it this year, because the CARES Act suspended the RMD requirement for 2020. That would leave you with more money invested and save the taxes you’d have to pay on the distribution amount.

Next, meet with your financial professional to review how recent market volatility has impacted your portfolio. Rebalance the asset allocation if necessary, to align with your risk tolerance, and short- and long-term needs and goals.

Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.

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Cash Flow Solutions

Computer with Cash Flow tools on screen.

A recent study by U.S. Bank showed that 82% of small business and startup failures were due to cash flow issues. Many times, advance planning can help alleviate these problems. Two impactful solutions include:

INVOICE TRACKING

Automated invoicing tools often make sense for the smallest of companies, because they can help track outstanding invoices effectively. This inexpensive platform can save you a lot of time and help expedite payments with automatic reminders and instant delivery. Record keeping is also easier to manage with everything stored in one online location. You can pull data to compare revenue and expenses or look at client payment trends. When tax season arrives, you’ll be well prepared with information for your tax professional.

FORECASTING

Hire someone to keep accurate books and generate meticulous financial statements and reports, then read them regularly. Monitoring everything from expenses, income, inventory, overhead costs, sales, profit margins, debt reduction and more is critical. With the big picture in focus you will be able to better forecast sales in order to capitalize on them, plan inventory efficiently and target resources.

Finally, build a cash reserve with money saved through increased efficiencies. Having three or more months operating expenses available will help prevent you from running up debt when cash flow is limited.

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Document Management

Begin organizing financial paperwork by understanding how long you need to keep the following records, courtesy of the IRS, but you can also use it as a guide to reduce other financial records:

  • Three years for most records if you have reported all your income.
  • Four years for employment tax records.
  • Six years if you under-report at least 25% of your income.
  • Seven years if you filed a claim for worthless securities or bad debt.
  • Indefinitely for years when you didn’t file a tax return or filed a fraudulent one.

Now, put all of your insurance, investment and legal documents in a safe place and tell loved ones where they can find them.

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End Recovery Chaos

Man at computer with hand on chin.

You may have heard the phrase: “Don’t do something—sit there.” That may be sage advice for small business owners who have been hustling to keep their businesses afloat this year. Taking a day to step back and reevaluate your situation and create an action plan that helps move your business forward in an orderly way could pay off in several ways. Be sure to consider these three areas:

COMMUNICATION

Consistently connect with employees in a way that makes them feel included, valued and safe. Transparency is important for both parties. Keep employees informed of any changes in company plans and ask for feedback on how things are working from their perspective. Not only will your employees feel heard, you may also get some invaluable insights.

FINANCES

More than ever, it’s crucial to track every financial detail. Look at sales trends more frequently to evaluate performance. You may find that you need to shift your focus and offer modified products or services. Even if your business model hasn’t changed, you may have different expenses than usual, like personal protective equipment.

Utilizing the expertise of an accountant is helpful as you reevaluate your business financials. Also ask to explore additional tax deductions to make sure you’re taking advantage of every available opportunity.

PROCESSES

Work with employees to streamline or automate some of your processes. Not only will this free up time, but small business management tools can help you scale growth. Time management trackers can also help you learn the true value of certain projects or customers so you know where your time is best spent and which services produce the most revenue.

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August 2020 ClientLine Newsletter

End Recovery Chaos – take a day to step back and reevaluate your situation and create and action plan that helps move your business forward in an orderly way.

Document Management – begin organizing financial paperwork by understanding how long you need to keep records.

Cash Flow Solutions – a recent study by U.S. Bank showed that 82% of small business and startup failures were due to cash flow issues.

August 2020 Client Profile – concerned about the fallout from the pandemic? steps to take to help protect investments.

College Graduates Seeking Jobs – honing job-hunting skills is critical in this environment.

Identity Protection – with identity theft commonplace, it’s important to understand available options to help safeguard your online information.

Questions and Answers

Short Bits

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Short Bits

PARENTS DOING TOO MUCH?

According to a new Pew Research Center study Americans believe that young adults should be financially independent by age 22, but that is not the reality. The study found that only 24% of young adults were financially independent by age 22 or younger, compared with 32% in 1980. Also 45% of adults ages 18-29 reportedly received financial help from their parents in the past 12 months.

SMALL BUSINESSES AND PPP

The National Federation of Independent Businesses reported that 70% of small business owners tried to apply for the Paycheck Protection Program as of mid-April. More than 72% of those who submitted applications did so successfully. The majority of this group (84%) already had some type of account with the bank.

CORONAVIRUS PHISHING ATTACKS

Global governmental entities, including the FBI and WHO, are issuing warnings about increasingly common email scams. Some may promise a vaccine or solicit donations for COVID-19 victims. Others are trying to take advantage of the new work-from-home movement by impersonating your company’s human resources department and requesting log-in credentials. It’s more important than ever to remain vigilant in monitoring your inbox and verifying all identities before clicking links or sending a response.

INDUSTRIES THAT PROFITED DURING COVID-19

While the coronavirus pandemic has been devastating to businesses around the globe, some sectors have flourished. Meal delivery kit service Blue Apron, for example, struggled after going public a few years ago, but has since seen a surge and is actively hiring. Other unconventional items that have jumped in popularity include bidets and high fashion face masks that were originally designed for those with immunosuppressant issues.

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Question and Answer

Question:

I have a couple side gigs and my only bookkeeping record is my checking account and charge cards. Where do I start to make tax preparation easier?

Answer:

With the higher standard deduction, it may or may not make sense to track expenses for the purpose of tax deductions. You can track expenses and save receipts using various software packages or smartphone apps. Your tax advisor can help you make these decisions. Remember to pay estimated taxes quarterly. It is recommended that you keep business and personal accounts separate.

Question:

How can I improve my credit score?

Answer:

Poor credit can raise your borrowing costs or eliminate your ability to borrow altogether, and it can even disqualify you from employment opportunities. To improve your score, start by understanding your problem. Do you make late payments or carry too much debt compared to your overall credit limit? Make it your mission to pay every bill on time. A recent history of on-time payments will help improve your score. If you carry too much debt, stop spending and start paying it off. Creditors want to see responsible customers. Don’t add to your debt. Applying frequently for new cards or loans can also hurt your score.

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Must-Have Documents

Three legal documents — a will, powers of attorney and an advance directive — are essential elements in an overall strategy to protect the ones you love, providing a measure of certainty when you can’t. An estate planning attorney can help you create and update these legal documents.

WILL

A will is the one document most people need, even when they don’t have great wealth. A will can direct how your assets are distributed and provide crucial instructions for taking care of minor and special-needs children. It can provide basic information such as the names of potential guardians and directions for distributing assets to care for those left behind.

POWERS OF ATTORNEY

Financial powers of attorney name a person who will handle your financial affairs if you can’t. Two common types of these assignments are limited and durable powers of attorney. Singular events, such as an absence when signing a legal document is required, might activate limited powers. Durable powers of attorney typically go into effect when people are incapacitated and can’t make financial decisions for themselves.

ADVANCE DIRECTIVE

When you can’t make healthcare decisions for yourself, an advance directive can provide general guidance. For instance, you may not want resuscitation or ventilator assistance if you are nearing end of life or have suffered significant brain damage. Alternatively, you can assign healthcare, or medical, powers of attorney to individuals who would make these decisions for you.

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Time To Regroup

Many of us may have avoided looking at our investment portfolios after the major economic disruption brought on by the closure of non-essential businesses. However, as you recover from shell shock, its important to review your financial situation.

INVESTMENTS

Financial market volatility can throw off asset allocation, so your portfolio likely needs some finetuning. Make sure you’ve allocated the right type of investments with the timing of each goal including short-term, mid-term and long-term. Also consider your tolerance for risk and diversify among asset classes.

TAXES

As Tax Day for 2019 comes and goes, talk to your tax advisor about any potential changes you should consider for the coming year. It’s not too late to alter your strategy in order to lower your 2020 tax obligation.

INSURANCE AND ESTATE PLANNING

The COVID-19 crisis has made us all highly aware that our lives can change in an instant. Maybe it has motivated you to finally draft a will (see Must-Have Documents article) and address any other estate planning needs you may have. It is a very loving thing to do for your family. Now is also a good time to review all of your insurance coverage, which may need adjustments if you’ve experienced major life changes.