As featured in The Wall Street Journal, Money Magazine, and more!

Search: ownership

The option to work from home has been shown to benefit employees and employers. This type of flexibility in working arrangements, when appropriate based on the employee’s responsibilities, increased productivity and retention for the employer and job satisfaction for the employee. The same benefits apply to working arrangements that include flexible hours.

As Margaret Heffernan explains in INC Magazine, “Treating employees like grown-ups made it more likely that they would behave the same way.” This treatment includes trust; if you hire the right people, you can trust them to accomplish their tasks and goals on time and under budget without worrying about the time they walk into their cubicle and the time they leave.

ClockIt’s difficult to treat employees like adults, however. At one of my corporate jobs, I joined a team some time after the management hired an efficiency consultant. The consultant sat with each employee and monitored and logged every minute of each employee’s work day in order to determine opportunities for improvement in productivity. After the study, productivity might have increased, but it most likely didn’t last long. Employees resented the requirement of tracking every minute of their days.

Around the same time, one of the supervisors made a habit of walking the floor at nine o’clock in the morning to see who was at their desk on time every day. This type of micro-management benefited the supervisor, and perhaps it gave her a feeling of control, but the employees resented the approach, even if they were at their desks on time each morning. Even when arriving on time, the employees would need to be at their desks at the moment the supervisor walked by rather than in the rest room or the kitchen area.

Thankfully, this supervisor was no longer with the team by the time I accepted my position.

A policy that includes flexible hours gives employees ownership of their roles and allows them to make decisions about the best time to do their jobs. The right people can handle these decisions without taking advantage of the employer or the flexible policies.

A flexible working hours arrangement can take a variety of forms:

  • forty hours every week spread over four days instead of five
  • eighty hours every two weeks spread over nine days instead of ten
  • eight hours every day starting earlier or later than nine o’clock

This type of flexible working arrangement may increase productivity. Happy employees tend to be better employees, and they stick with the company longer. Long-term loyalty to a company has decreased over the years due to many changes in the relationship between employers and employees, but a policy involving flexible hours and other benefits can help reverse that trend.

Work/life balance isn’t always appropriate. I am always torn with this concept, because different goals require different treatment. When I worked for a small non-profit organization whose lofty goals were difficult to achieve on a tiny budget and a lack of resources, the expectation was to put our lives into our work. The only way to achieve greatness is to be completely dedicated to the mission, and that required making many personal sacrifices. Most jobs and careers do not work in this fashion, but in any career, this type of dedication can lead to success.

Work/life balance is a great approach for the cast majority of the American workforce that recognizes that life outside of work is important, but those whose personal mission is to become the best in the world at their job, life is just a distraction.

As a business owner without any employees, I took advantage of flexible hours. When I left my corporate job over a year ago, I experimented with creating a regular schedule for myself, but I determined — and this was something I had known since I was a teenager — that I just work better and more efficiently when I have the flexibility to work when I like.

Do you have flexible working hours at your job? Is it beneficial or detrimental to your group? If you work flexible hours, have you seen any personal benefits?

INC Magazine, American Psychological Association, Forbes

{ 17 comments }

The Worst Celebrity Tax Problems

This article was written by in Taxes. 10 comments.

It’s with a tinge of schadenfreude that people are fascinated with the failures and foibles of famous celebrities. Every year, the IRS chases people who evade or underpay federal income tax, and actors and popular figures in the media, who often don’t manage their own finances, make the news.

The latest is Lindsay Lohan. You may remember her from such films as Mean Girls, Freaky Friday, and Herbie Fully Loaded. TMZ has discovered that the IRS has obtained against Lindsay for almost $100,000, representing tax she didn’t pay for her income in 2009. Like many busy people, Lindsay employs an accountant to handle her finances, and she says the oversight will be handled immediately.

Lindsay LohanThe sum Lindsay owes is small compared to the problems other celebrities have had with the IRS.

Wesley Snipes failed to pay up to $17 million to the IRS for his income taxes, not including penalties and interest. After his trial and a failed appeal, he was sentenced to prison for three years.

Nicolas Cage also blamed his accountant for his failure to pay a $14 million tax bill in 2010; even more recently, Nic failed to pay over $600,000 for a gift tax.

Pamela Anderson owed $2 million to the IRS and to the state of California.

Annie Leibovitz isn’t a movie star, but she is at the top of the list of famous modern photographers. She owed $2.1 million in back taxes, and pledged to sell her ownership of her photography to pay the bills.

Martha Stewart owed $220,000 to New York for taxes, but she believed she didn’t need to pay this tax because she didn’t spend time in that state.

Celebrities often have tax situations that differ from people who aren’t performers or professional athletes. They need to handle state tax returns for every state in which they’ve earned income each year, just like all taxpayers, but in any given year, performers may have earned income in a large number of states. Celebrities will almost always be too busy to handle their own tax returns, so they trust accountants to handle the paperwork and the payments.

On the other hand, it’s safe to say that some famous individual who owe the government money for failure to pay their tax bills are aware of the situation and are trying to skirt the law as much as possible, until they are forced to pay.

Photo: Rafael Amado Deras
TMZ via Don’t Mess With Taxes, New York Times, UPI, Back Taxes Help

{ 10 comments }

I’ve exchanged some of the stress and risk in my life for a more comfortable situation.

At the end of October, as some readers have been aware, I relinquished my ownership of Consumerism Commentary. There was an announcement in the Wall Street Journal that I’ll link to below for those who are curious about some of the circumstances. Despite no longer owning this website, I am deeply involved in its operation, particularly from an editorial standpoint, though not limited to just the articles. I still write all the articles published under the names Flexo and Luke Landes and oversee and edit any content by other contributing writers such as Ellen Cooper-Davis.

Very little on Consumerism Commentary has changed or will change from a reader’s perspective due to this shift in ownership. It does change my immediate financial outlook, however.

Although little has changed about the way I work from day to day, I am technically an employee. This arrangement has benefits as well as drawbacks. I have better health insurance coverage than I had with COBRA coverage with my old employer’s plan, and it’s certainly better and much more affordable than I would have had with individual coverage. I don’t need to worry much about the effect of changes in a competitive marketplace on revenue because my pay check is consistent. Theoretically, a large company has the resources to grow this website’s presence larger and more quickly than I might have been able to accomplish on my own, and I can focus on more important things, like writing, without spending much time on other business matters.

On the other hand, I have ceded some of my independence and must now create a new strategy for moving to the next step in my life.

I don’t intend to go into much detail about the change in ownership, a change that has been in development for well over a year, but it is worth mentioning due to its effect on my finances in the future. I’ve used Consumerism Commentary as a way to share the details of my personal finances through monthly reports, goal sharing, and other articles wherein I discuss very personal matters, and I plan for this to continue. If I weren’t to mention this change, it would make it difficult for me to share my goals for the future in context.

I will offer my specific goals and resolutions for the new year soon, as I’ve done in many recent years.

You can read more about this on the official release on the Wall Street Journal, and I’ll have more to share from a personal perspective in the coming months.

{ 12 comments }

Michael Bloomberg, the king-slash-mayor of New York City (will he increase term limits again to stay in his position?), has announced that Cornell University and Technion-Israel Institute of Technology will be transforming 11 acres on the southern tip of Roosevelt Island into a graduate school for technology. Classes will begin as early as next year and the first phase of construction on 300,000 square feet will be completed by 2017 and construction on 2 million square feet will be completed twenty years later.

Developing the land into a world-class graduate school will displace a hospital and some other facilities, but will generate $23 billion in economic activity and 20,000 construction, 8,000 continual operational jobs, and 30,000 jobs as a result of graduates’ activities according to Bloomberg.

A $150 million venture capital fund will provide resources to new start-ups affiliates with Cornell that promise to stay within New York City for at least three years.

With a world-class high-tech graduate program, New York City will become a tech start-up incubator, on par with Stanford University, who lost the bid for building a campus in New York City, and Silicon Valley.

Cornell’s bid for the land and the opportunity to transform New York City was assisted by a $350 million gift, anonymously given but later revealed to come from Charles F. “Chuck” Feeney. Feeney is a former Cornell student who co-founded Duty Free Shoppers Group and turned his wealth into a foundation, the Atlantic Philanthropies. With the foundation incorporated in Bermuda, its activities are not generally public knowledge, but its grants are on par with the Ford Foundation and the Bill and Melinda Gates Foundation.

Roosevelt IslandChuck Feeney has accumulated significant wealth over his lifetime, but you wouldn’t know it from watching him. When in New York, he walks and rides the subway, though he’s not the only New York billionaire to mingle with the people. He rents rather than owns a house, having parted with seven houses in a divorce settlement, but renting in New York is not necessarily an indicator of frugality by itself. He doesn’t own a car and flies coach. Feeney reportedly wears a $15 watch. Not wanting money to consumer his life, even his ownership in the business he founded was transferred to a charitable organization. Perhaps having given away most of his fortune away, Feeney has no choice but to be frugal, but his approach to money seems to be similar to Steve Jobs, the quiet billionaire next door.

Assisted by the gift from the Atlantic Philanthropies, a pledge from Bloomberg for $100 million in infrastructure improvements to the Roosevelt Island land on which the university will build the campus. Cornell will also partner with the State University of New York and the City University of New York in some capacity.

This could be an exciting time for New York City. Residents of Roosevelt Island won’t be displaced by the new construction, but patients and employees of the hospital that currently exists on the property will be. Having a University’s high-tech graduate program will change the character of the island, which was formerly known as “Welfare Island” and was a depository for prisoners.

Photo: shinya
New York Times, New York Times, Atlantic Philanthropies, Cornell University

{ 6 comments }

Discover More Card $150 Limited Time Cash Back Bonus

by Flexo

The Discover More Card has been around for quite some time. If you’ve seen a competitor’s commercials on television mentioning the “biggest cash back credit card,” you might be surprised to learn that the commercial is referring to this card. To grow the number of customers, Discover has launched different versions of Discover More over ... Continue reading this article…

7 comments Read the full article →

Chase Freedom Review and Comparison

by Flexo

From a branding perspective, each credit card issuer looks to group similar offers with a catchy name, helping consumers to immediately identify a type of credit card with the associated benefits. Chase offers quite a few slightly different cards under the Chase Freedom banner, and while the core features are the same, the offers differ ... Continue reading this article…

6 comments Read the full article →

CoreLogic Credit Report and Score: Always Watching You

by Flexo

CoreLogic, a company that already works with lenders to consolidate credit reports from the three reporting bureaus, is developing a new credit report and score. The company believes its information, culled from public sources and proprietary databases, could give lenders, employers, and any other company that wants to evaluate an individual’s risk, a more accurate ... Continue reading this article…

14 comments Read the full article →

$300 Gift Card Bonus from the Citi Forward Card

by Flexo

Citibank has launched a new version of their Citi Forward Card with a credit card bonus worth mentioning. The new card offers cardholders the opportunity to earn 30,000 bonus ThankYou points, redeemable for $300 in gift cards. This is a big boost over the typical offer for this card, 10,000 points. Unlike many other bonus ... Continue reading this article…

1 comment Read the full article →
Page 1 of 1712345···Last »