Aaronic Priesthood

I know I should keep a journal, but have been bad for years. I felt today was worth writing a brief journal entry and, for lack of a better place, decided to write it here.

My oldest child, Mikey, will be turning 14 later this month. My second child, Josh, will be turning 12 in March. As a result, today in Sacrament meeting, they were both sustained to be ordained, respectively, Teachers and Deacons in the Aaronic Priesthood. After Church I had the privilege to do these ordinances. I first confer the Aaronic Priesthood on Josh and ordained to the office of Deacon. For a few minutes today I had two Deacons in my household. Afterwards I ordained Mikey to the office of Teacher. My dear, sweet wife Amanda was set apart to be a nursery teacher.

Today was a blessed day for my family.

Business Owners Should Hire Their Kids

As most of my readers know I have had many different business ventures over the years. I did work a Corporate job from 2008 – 2017, but other than that, I have been self employed most of my adult life. I believe that I continue to get smarter as I’ve gotten older, and I know more that I did in the past. I recently learned a new strategy that I wish I had known years ago.

I have 4-kids. My oldest is almost 14-years old. He does administrative work for me and one of my businesses would write a check to him for his work. My other kids will from time to time, but none as regularly as him.

I recently made my oldest an actual part time employee, giving him a paycheck (I am actually direct depositing it in his account). The company that I am paying him from is a LLC taxed as a partnership (using IRS form 1065), owed by my wife and I, his parents. A provision of the 2017 tax bill (“the Tax Cuts and Jobs Act”) increased the Standard Deduction all the way unto $12,200 (in 2019). This means that I can pay my children employed in the family business $12,200 in income and they will have a 0% tax rate!

Ideally this means that I will divert income from a higher tax bracket into their lower (I.E. 0%) tax bracket. And it will be a business deduction.

Another great benefit is that when both parents are the only owners of the partnership they are not required to pay employment tax on their minor children working for the business.

Since my child(ren) now has documented earned income (due to W2) he qualifies to open a Roth IRA. We are doing direct deposit, putting 45% of his pay check into his brand newly opened Roth IRA and 55% into his checking account. He is then paying a 10% tithe to our Church and then keeping the balance of the 45% as spending money.

A Roth IRA, for those unfamiliar, is money put away for retirement using after tax dollars. The money grows tax free and at retirement (59 1/2 or later) the money and any growth can be pulled out, tax free. There are actually 2 other provisions in the tax law where the growth in an IRA can be pulled out tax free. To pay for schooling (college) and for the downpayment on a first house. Parents who are in a position to do so tend to try to help their children pay for college and to help them buy their first house. However these parents are doing it with after tax dollars.

By putting the kids on payroll, they are able to do this using before tax dollars. The wages paid must be at a reasonable wage for work they actually do. I’d advise you to document the work your kids do, who they do it for, and the amount they are being paid.

For more in depth reading of these topics:

  1. https://www.kitces.com/blog/tax-rules-hiring-children-family-business-flsa-tax-savings-standard-deduction-roth-contribution/
  2. https://www.nerdwallet.com/blog/investing/why-your-kid-needs-a-roth-ira/
  3. https://www.forbes.com/sites/garrettgunderson/2016/02/20/see-the-irss-incredibly-generous-tax-benefits-for-hiring-your-own-child-part-two/?fbclid=IwAR3z4bzEprV0Np_826KBp21D3pmn0dVA8w-9AkebrxAjwSqFvq0PrTJY4IA#49f641f07243

Back to School Family Home Evening

Tomorrow Mikey starts 7th grade, Josh 5th, and Hannah 3rd. In one week Lizzy will start Kindergarten. Amanda and I decided to hold a short family home evening. Josh read 1st Samuel 16:7. We talked about how the Prophet Samuel was looking for the next King and how he learned that’s the Lord doesn’t care about how we look on the outside but the inside. We likened this to how there will be all sorts of different kids at school and we should not judge them based on how they look or what they wear but instead try to see them how God sees them and love them as God loves them. We then had Hannah read Matthew 11:28-30. We discussed how Christ took upon Him all of our heartache and pain, our sorrow and our stress, as well as our sins during the atonement and that we can put all of this on Him and accept in return His yoke, His burden, which is to love each other and follow His commandments.

We finished Family Home Evening with each kid getting a Father’s Blessing.

image

 

Back to school Family Home Evening

Tomorrow Mikey starts 5th grade, Josh 3rd, and Hannah 1st. Amanda and I decided to hold a short family home evening. Josh read 1st Samuel 16:7. We talked about how the Prophet Samuel was looking for the next King and how he learned that’s the Lord doesn’t care about how we look on the outside but the inside. We likened this to how there will be all sorts of different kids at school and we should not judge them based on how they look or what they wear but instead try to see them how God sees them and love them as God loves them. We then had Mikey read Matthew 11:28-30. We discussed how Christ took upon Him all of our heartache and pain, our sorrow and our stress, as well as our sins during the atonement and that we can put all of this on Him and accept in return His yoke, His burden, which is to love each other and follow His commandments.

We finished Family Home Evening with each kid (including 3-year old Lizzy) getting a Father’s Blessing.

 

image

 

July Front Sight Membership Giveaway Winners

This morning, I typed the name of all the entries in my Front Sight Membership Giveaway contest.  As I had three ways to enter, my total entries were 31.  Several people had multiple entries, with one person having four entries.  I put all the entries in a small basket.  My kids enjoyed last time when I let Hannah, my youngest, pick the winner.  However, Mikey & Josh wanted to pick a name also.  So, this time, I let all three kids pick a winner, from youngest to oldest.

Hannah, my 3-year old went first:
Hannah picking her winnerShe picked Ross Siegel, a friend and co-worker.

Josh, my 5-year old then went:
Josh picking his winnerHe picked Ed Hall, who entered and referred several other people and had the most entries.

Mikey, my 7-year old was third.
Mikey picking his winnerHe picked Kristina Chavez.

The kids then wanted Mommy to pick a name. She draw Lena Elise Kruger, who we used to go to Church with.

They then said it was my turn. I drew Carey. Not sure who he is other than he lives in North Las Vegas. All winners have been contacted. Thanks everyone for your participation!

Front Sight Membership Giveaway Winners

Superman Family Adventures

Almost two months ago, Free Comic Book day introduced my family to Superman Family Adventures with a free preview of it.  Mikey, my 6-year-old son, enjoys reading.  I though he would enjoy a comic book so when the full issue of Superman Family Adventures #1 came out, I went down to Comic Oasis, located near Cheyenne and US-95 in Las Vegas.

When I got home, Mikey quickly read it.  This very family friendly comic book allows children to read the fantasy adventures of Superman, Supergirl, Superboy, and others in the “Superman family”.  Mikey found the story interesting and page turning.  He could determine most of the words that he didn’t know, and I was there to help him on the words he didn’t know.  Issue # 2 comes out this week and in his excited, Mikey called Comic Oasis to see if they had it yet.

If you have a child who likes superheros, they will love Superman Family Adventures!