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https://www.forbes.com/sites/forbescommunicationscouncil/people/annemariaduran/
Annemaria DuranForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Annemaria DuranForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
0f59872c4f112dcd1eb187b968ea6e7f
https://www.forbes.com/sites/forbescommunicationscouncil/people/brittainladd1/
Brittain LaddForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Brittain LaddForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
92ff80680c78e2aebf13577e827abf04
https://www.forbes.com/sites/forbescommunicationscouncil/people/carolkimura/
Carol KimuraForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Carol KimuraForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
2516c1120aaea7facb7f0b6585645e38
https://www.forbes.com/sites/forbescommunicationscouncil/people/chrisstefanyk/
Chris StefanykForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Chris StefanykForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
bc5069c886fe9865c170e396e6febe96
https://www.forbes.com/sites/forbescommunicationscouncil/people/danielhussem/
Daniel HussemForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Daniel HussemForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
71dc10283259daea1e5f7036036da5a8
https://www.forbes.com/sites/forbescommunicationscouncil/people/elizabethshea1/
Elizabeth SheaForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Elizabeth SheaForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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https://www.forbes.com/sites/forbescommunicationscouncil/people/haseebtariq/
Haseeb TariqForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Haseeb TariqForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
e24f3a126431364295b8f10e77d94a7e
https://www.forbes.com/sites/forbescommunicationscouncil/people/janicechou/
Janice ChouForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Janice ChouForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
a637380c66f2204fc71dd1cf6a7558db
https://www.forbes.com/sites/forbescommunicationscouncil/people/jeffgrover1/
Jeff GroverForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Jeff GroverForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
18373aeac1c2a58d1ef062358ad5769e
https://www.forbes.com/sites/forbescommunicationscouncil/people/jeffschmitz1/
Jeff SchmitzForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Jeff SchmitzForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
deef0558cac113cb864a6667d0da3bd3
https://www.forbes.com/sites/forbescommunicationscouncil/people/jenniferkyriakakis/
Jennifer KyriakakisForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Jennifer KyriakakisForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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https://www.forbes.com/sites/forbescommunicationscouncil/people/jessicawong1/
Jessica WongForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Jessica WongForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
268dd17e8b26c3311bbff232f9f8e7c8
https://www.forbes.com/sites/forbescommunicationscouncil/people/jimkreyenhagen/
Jim KreyenhagenForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Jim KreyenhagenForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
4d7cc84d48212db4589466b9e75db3a6
https://www.forbes.com/sites/forbescommunicationscouncil/people/jonathanbacon1/
Jonathan BaconForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Jonathan BaconForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
8e469d30abdced2b1b05b59ffad01d9a
https://www.forbes.com/sites/forbescommunicationscouncil/people/keithbendes1/
Keith BendesForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Keith BendesForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
fc4b4a2f62785f35e0a942378c4b5aa4
https://www.forbes.com/sites/forbescommunicationscouncil/people/kennahigian/
Ken NahigianForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Ken NahigianForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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https://www.forbes.com/sites/forbescommunicationscouncil/people/kensterling1/
Ken SterlingForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Ken SterlingForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
485f7d254f60bd3dfaf2930b89d3a46d
https://www.forbes.com/sites/forbescommunicationscouncil/people/kristenwessel1/
Kristen WesselForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Kristen WesselForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
294fc5bb6524fb3477953c4d89ab01ec
https://www.forbes.com/sites/forbescommunicationscouncil/people/lianadouilletguzman/
Liana Douillet GuzmánForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Liana Douillet GuzmánForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
cf1de115da60db8b96b74cc6fea4d018
https://www.forbes.com/sites/forbescommunicationscouncil/people/lisefeng/
Lise FengForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Lise FengForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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https://www.forbes.com/sites/forbescommunicationscouncil/people/mailekeone1/
Maile KeoneForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Maile KeoneForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
420557269eebad3729a51f66c45d82c4
https://www.forbes.com/sites/forbescommunicationscouncil/people/michaelgeorgiou/
Michael GeorgiouForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Michael GeorgiouForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
fa1bcec4fc3c065393c5f0e3b1e75830
https://www.forbes.com/sites/forbescommunicationscouncil/people/mikeneumeier/
Mike NeumeierForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Mike NeumeierForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
9a4b48c1eb6be3cc2e797e1994fdeb40
https://www.forbes.com/sites/forbescommunicationscouncil/people/morgankelleher/
Morgan KelleherForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Morgan KelleherForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
c8519bbe8790468f7fc4c6a33cd4254b
https://www.forbes.com/sites/forbescommunicationscouncil/people/noahechols/
Noah EcholsForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Noah EcholsForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
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https://www.forbes.com/sites/forbescommunicationscouncil/people/paulkoulogeorge/
Paul KoulogeorgeForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Paul KoulogeorgeForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
3bb60c998814dd6cfb0536a64ab405fe
https://www.forbes.com/sites/forbescommunicationscouncil/people/pawelkijko/archive/
Pawel KijkoForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Pawel KijkoForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
7cde883a18b5b09ee7c1ff1a83b5e7d6
https://www.forbes.com/sites/forbescommunicationscouncil/people/rondakalistaylor/
Ronda Kalis TaylorForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Ronda Kalis TaylorForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
8e66011efe4ed04999105b9efda1b717
https://www.forbes.com/sites/forbescommunicationscouncil/people/stuartdraper/
Stuart DraperForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Stuart DraperForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
f22eb6ef72676205cc049e13fa847f16
https://www.forbes.com/sites/forbescommunicationscouncil/people/udiledergor/
Udi LedergorForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Udi LedergorForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
9bb129e467e820b89835094e4fc8c942
https://www.forbes.com/sites/forbescontentmarketing/2017/09/12/how-an-indie-horror-flick-influenced-saps-brand-storytelling/
How An Indie Horror Flick Influenced SAP's Brand Storytelling
How An Indie Horror Flick Influenced SAP's Brand Storytelling An interview with Tim Clark, vice president, head of native advertising at enterprise software giant SAP. Now in its 7th year, SAPVoice was Forbes’ first BrandVoice partner. It’s a constant tension in content marketing. On the one hand, you need to provide value to readers, and branded content should be as useful and entertaining as good editorial. On the other hand, you’re facing institutional pressure to maximize “brand mentions” and hammer home your messaging. To stay on track, take to heart an old journalistic rule: Write the stories you want to write, not the ones you “need” to write — for internal political reasons, for example. In going out on a limb, you might even find that the numbers back you up. SAP’s Clark told a story that drives that point home. “When we started with BrandVoice,” he said, “we lacked a clear sense of what we should be doing with our content. We talked too much about ourselves in our stories, and saw low page views and flat engagement.” Then he came across a story about a 2011 Australian indie horror movie called “The Tunnel.” It was fully crowdfunded, and a success — winning distribution from an independent Canadian film company. Clark asked himself, “Why can’t I write about this film and connect the topic back to our business?” Clark wrote the story, using the movie’s success to shed light on digital disruption — which, he noted, “is what crowdfunding is all about.” His headline? “Indie Horror Flick ‘The Tunnel’ Eviscerates Old Business Model.” The result was striking. The piece started trending, and fast — hitting No. 1 on Forbes’ “Most Popular” ranking. It was the first article by any BrandVoice partner to do so. More than that, Clark said, it “opened up our eyes as to what types of stories we should tell. It gave me a back door through which I could tell SAP’s story, which is largely about the changes tech is driving. It was a great example of what’s possible.” Not to mention, Clark said, the story made SAP “look slightly cooler.” “Don’t be afraid to put your own spin on your themes,” Clark said. “And don’t be so tightly married to your corporate messaging. Nothing repels an audience faster than marketing talk.”
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https://www.forbes.com/sites/forbescontentmarketing/2018/01/11/5-social-media-tips-for-your-content-marketing-strategy/
5 Social Media Tips For Your Content Marketing Strategy
5 Social Media Tips For Your Content Marketing Strategy An interview with Shauna Gleason, director of social media at Forbes. Content people have long viewed social platforms as link-bearing pivots that swung users toward content hubs. But that’s over, as social has matured into something that demands their primary attention. Here are five things content marketers can do to master social in 2018, courtesy of Forbes’ Gleason. 1. Embrace influencer marketing. If you don’t have your finger on the pulse of social platform changes, you’ll quickly get left... [+] behind. Forbes can testify to the benefits of influencers. Recent takeovers of Forbes’ Instagram account by coding evangelist/model Karlie Kloss and musician The Weeknd to support Forbes’ yearly 30 Under 30 and Celebrity 100 lists, respectively, dramatically boosted the account’s numbers. “Influencers like that put Forbes before a youthful audience interested in business, tech and entertainment.” Gleason said. “That’s a desirable audience for us.” Of course, Forbes has access to the movers and shakers who appear on its cover. Your organization needs to create its own network of influencers. If you need help doing that, Gleason says, call your local social media agency—and fast. 2. Draft a strategy. “Always ask why you’re doing something in social,” Gleason said. “You need well-defined goals, a plan and resources to achieve them.” If something doesn’t fit the plan, you should be asking if it’s really worth executing. What’s the ROI? Does your organization have redundant social accounts, blunting your messaging? If so, reevaluate. “A department that wants to launch a Twitter account should have to justify it from a business perspective,” Gleason said. “What’s the goal? What will the messaging be? If the applicants can’t answer those questions, it’s not worth the time and resources.” That goes for any social initiative, of course, not just a new Twitter account. 3. Dig deep into data. Gleason’s team cranks out both weekly and monthly performance reports for each social platform. “Reacting to what the data tells you is one way to build engagement,” she said. Gleason’s team has translated data into new video formats and even the acquisition of a Forbes contributing writer specializing in Korean pop, a genre that produced startlingly good numbers on Forbes Twitter. If you don’t have staffers daily parsing the data your social streams crank out, then get them. Not only will it boost your numbers, but your own time will be better spent on creating the content that matters and statistically performs best. 4. Watch the platforms like a hawk. In December, to combat “fake news,” Facebook announced a policy change. Users could no longer modify the headlines and descriptions of posts to which they linked. Basic methods of audience development become obsolete in the course of a morning. Gleason’s team made fast technical changes in reaction to the Facebook move. Can your organization move nimbly in the ever-shifting social landscape? It’s not only policy changes, either. The stream of new products flowing from the platforms bears attention, too. “If you don’t have your finger on the pulse of social platform changes, you’ll quickly get left behind,” Gleason said. 5. Consider social platforms as destinations in themselves, not distribution channels. Link-outs from social posts are useful. But these days the point is to keep user eyeballs on the platform itself, since that’s where your readers are spending time. “Users are used to being inundated with click-bait, especially on Facebook,” Gleason said. “Our goal is to post content that users expect to see on Forbes’ Facebook, Instagram, etc. Our feeds are curated thoughtfully.” Implicit in all of the above is that content marketers need to become fluent in social, or at least make sure they’re working closely with their shops’ social teams. Silos have to break down. “When social was new, marketing or comms teams could easily execute it,” Gleason said. “It hasn’t been that way for years. Investing in an experienced, dedicated social team is crucial for brand awareness, growth and audience development.”
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https://www.forbes.com/sites/forbescontentmarketing/2018/09/21/how-one-small-marketing-change-made-a-big-difference-for-7-executives/
How One Small Marketing Change Made A Big Difference For 7 Executives
How One Small Marketing Change Made A Big Difference For 7 Executives Your content marketing strategy is sinking. What’s your next move? Perhaps it’s time for a rethink. Seven executives who specialize in content marketing shared their stories of how one small change sparked a significant shift in their business. Connect on a personal level. Ann Handley, chief content officer, Marketing Profs: At the start of this year, I got an inquiry from a reader at my personal website, asking me why he hadn’t received my email newsletter in a while. First I documented a lengthy list of excuses. Then I put my dukes down and dialed back the defensiveness…. and used his question to fuel my thinking, asking myself: What is the real value of an email newsletter? In this age of AI and Facebook Live and video, is an email newsletter even necessary? Photo courtesy of Ann Handley After weeks of soul-searching and research, I came away with two thoughts: 1) An email newsletter is the only place where individuals—not algorithms—are in control. So what if marketing leaned into that inherently personal space? 2) Most companies use their email newsletter as a distribution strategy. What if we focused not on the news but on the letter? So in January I relaunched my personal email newsletter as a way to talk directly to my audience. It’s taught me a lot about what works and what doesn’t in content and in marketing. Because I think the best email newsletters are also a kind of proxy for the best marketing, period. Create value, not ads. Photo courtesy of Juntae DeLane Juntae DeLane, chief strategist, Digital Delane, LLC, and founder of the Digital Branding Institute: One change that made a big difference in our marketing is prioritizing our brand website over our agency website. When introducing the benefits of digital branding to a prospective client, providing value to the target audience is the best way to get attention. We showcase insights instead of promoting our services. This small but significant change has generated more qualified leads and a smoother client onboarding process. MORE FOR YOUBiden’s Final Pitch To Georgia: Vote Blue And $2,000 Checks Will ‘Go Out The Door Immediately’Large Numbers Of Health Care And Frontline Workers Are Refusing Covid-19 VaccineIn Georgia, Trump Says ‘They’re Not Taking This White House’ Photo courtesy of Ed Breault Ed Breault, VP, head of marketing at Aprimo: We’ve shifted our mindset by taking the approach to give our audience relevant, remarkable, and truthful content that they can talk about—instead of just product-centric content. This transformation, however, forced a more comprehensive approach and analysis of our entire marketing operation including envisioning our content from a lifecycle point of view. This served as the trigger point driving us to look at the bigger picture of how we could better integrate our processes, people and technologies to manage this new content strategy, and ultimately deliver improved value for our audience. Take a holistic approach. Photo courtesy of Tom Gerace Tom Gerace, founder and CEO of Skyword: The most significant change we have made in marketing is shifting from standalone content marketing initiatives to putting content at the center of everything we do. People will pay attention to what brands have to say if brands offer something worthy of their time. Once we recognized that value exchange was at the core of modern marketing, we started to think about creating value for our prospects each time they encounter us. Prioritize audience experience. Photo courtesy of Shachar Orren Shachar Orren, chief storyteller, Playbuzz: I was originally the VP of Content at Playbuzz, a role in which I was constantly ensuring that content our brand and publisher partners were producing with our platform, would result in highly engaging environments for users and ultimately, meaningful two-way dialogues and deeper relationships. When I transitioned into the role of Chief Storyteller (Playbuzz's take on a CMO role), I have continued to focus on what the end user will feel when interacting with Playbuzz-powered stories. This has taken our marketing focus from that of B2B, to B2BC with UX top of mind. We have coupled this approach with our unique understanding of global content consumption habits. Today’s average user cannot be expected to simply scroll through text-heavy content; they expect content placed in front of them to be involving and high-quality. Our team keeps that in mind when producing our own marketing materials, to make sure we are practicing what we preach. Because of it, we have strengthened our relationships with partners, forged new ones and have seen more message consistency in organic mentions of the company – both internally and externally. Give readers a reason to opt in. Photo courtesy of Ian Cleary Ian Cleary, founder of Razor Social: When I started creating a summary of blog posts and gave them away in exchange for an opt-in, my email conversion rates went from 2% to 3% to 10% to 15%.  I include an opt-in within the post and again as part of a popup that appears when exiting my website from a blog post. Your website visitor is more likely to opt-in when the incentive is directly related to the blog post. When I capture the email address, I have a lead nurture series that generates sales, but even if the person is not interested in buying now, I can continue to build the relationship in the future. So this small change meant a significant increase in revenue. Tap your networks. Photo courtesy of John Hall John Hall, co-founder of Influence & Co. and author of Top of Mind: I stopped relying on others to distribute content for me. It’s important that you have a distribution plan in place to reach your audience. Encourage employees to share content, or send it to influencers you know. The list goes on. Just make sure you leverage the content across your company and outside it. That’s the beauty of good pieces of content: If they’re truly valuable, you’ll have plenty of uses for them. More from Forbes Content Marketing: 5 Brand Storytelling Tactics That Will Help Inspire Your Next Big Idea How To Solve 7 Major Marketing Challenges Of 2018 5 Marketing Trends B2B Brands Need To Follow
ecc785a11e48bfa79b7dd974c725dae6
https://www.forbes.com/sites/forbescontentmarketing/2018/10/31/5-things-marketers-should-know-about-will-smiths-youtube-strategy/
5 Things Marketers Should Know About Will Smith's YouTube Strategy
5 Things Marketers Should Know About Will Smith's YouTube Strategy Will Smith is having a moment. Despite no new movies, albums, tours or TV shows to promote, the 30-year Hollywood veteran has turned himself into the EF Hutton of social media. When he talks, 4 million YouTube subscribers listen. You’ve probably watched a few of his viral videos: bungee-jumping from a helicopter over the Grand Canyon for his 50th birthday, busting a move on a Budapest bridge and interviewing an astronaut in outer space, to name a few. But beyond the splashy productions, he also gives viewers a candid glimpse into his thoughts on life and family. A few weeks ago he broke down his marketing strategy with a theater full of marketers at Advertising Week in New York City. In case you missed it, here’s a recap of a few key points: Will Smith at Advertising Week - 10/3/18 John Nacion/STAR MAX/IPx 1) Be flexible. Back in the ‘80s when The Fresh Prince rose to fame, the formula for stardom looked different. Achieving success meant putting in work and sticking to a script, but in today’s climate a rigid plan can do more harm than good. “You have to be paying attention.” Gone are the days when studios could rely on an exciting trailer that tricks theatergoers into seeing a lackluster film. Phones already start buzzing with reviews on opening night, which directly impacts sales. As Scott Cook once said, “A brand is no longer what we tell the consumer it is—it is what consumers tell each other it is.” 2) Be deliberate. Make every piece of video content count and focus on quality over quantity. Smith’s motivators? Spreading joy and sharing lessons that help people. “The quality of the storytelling leads the engagement and then how much you’ll be able to carry people along with you,” Smith said. MORE FOR YOUBiden’s Final Pitch To Georgia: Vote Blue And $2,000 Checks Will ‘Go Out The Door Immediately’Large Numbers Of Health Care And Frontline Workers Are Refusing Covid-19 VaccineIn Georgia, Trump Says ‘They’re Not Taking This White House’ 3) Be daring. “I know if I post something on Saturday night with me dancing, it’ll be my biggest post for the week,” Smith said. But that’s no cue to start breaking out the choreography in every video. Engagement is important, but the desire for clicks and views shouldn’t override your brand’s goals and the message you want to send your audience. “Nothing is more valuable than your gut,” Smith argued, emphasizing that the biggest wins happen outside your comfort zone. “The metrics are there to train your gut. At the end of the day you have to make the call.” As an example he recounted how in 1997 Hollywood insiders thought the “Titanic” movie would flop before it went on to become one of the highest grossing films of all time. The metrics predicted a period piece could only be so successful, but the film defied the odds. “Use the metrics, but be very careful of thinking that they’re God. They’re not.” 4) Be human. At times you’ll need to take off your marketing hat and tap into your human nature, Smith advised. “The question is ‘How do my products, and how do my services, improve lives?’” he said. Beyond looking at the hard metrics, he reads the comments to gauge how people are receiving the content. “Staying in touch with people and not in touch with numbers and products has been really helpful for me over the past year.” 5) Be authentic. One day Will had a heart-to-heart with his son Jaden Smith. To Will’s surprise, Jaden was upfront with a girl he was dating about needing his space instead of cheating on her. “That’s from your generation. Cheating is over,” Jaden told him. For Jaden and his young friends, it’s much less stressful to own up to the truth than to get caught in a lie. The moral of the story for marketers: “Authenticity is going to be at the center of being able to create and succeed with this next generation.” Follow Forbes BrandVoice on LinkedIn and Twitter for more marketing industry insights. Read More: 5 Ways To Improve Your Brand's Storytelling 3 Steps To Take Before Telling Your Brand's Data Story 5 Social Media Tips For Your Content Marketing Strategy
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https://www.forbes.com/sites/forbescontentmarketing/2019/01/30/10-fast-facts-to-consider-in-your-content-marketing-plans/
10 Fast Facts To Consider In Your Content Marketing Plans
10 Fast Facts To Consider In Your Content Marketing Plans Content marketers understand how long-form content, SEO, social media and video help raise brand awareness and build a loyal audience, but others in our orbit  sometimes need convincing. That's when having the right data comes in handy. Recent research shows why today's brands continue to prioritize content in their marketing mix. When making your business case, keep these industry stats and insights in mind. Photo by rawpixel.com from Pexels Content Strategy & Platform Trends 1) Sponsored articles that include brand mentions sparingly get better reader engagement than those with frequent brand mentions. (Pressboard Brand Publishers Study 2018) 2) 90% of the most successful content marketers prioritize educating their audience over promoting their company's sales message, compared with 56% of those who describe their content marketing efforts as unsuccessful. (B2B Content Marketing 2019) 3) 61% of marketers surveyed publish content several times per week; 89% of those respondents reported content marketing produced higher quality leads than other forms of marketing. (ContentWriters) 4) 82% of CMOs expect to increase their digital budgets by about 50% in 2019. (Nielsen 2018 CMO Report) MORE FOR YOUBiden’s Final Pitch To Georgia: Vote Blue And $2,000 Checks Will ‘Go Out The Door Immediately’Large Numbers Of Health Care And Frontline Workers Are Refusing Covid-19 VaccineIn Georgia, Trump Says ‘They’re Not Taking This White House’ 5) Over the past two years, direct mobile traffic to publishers' websites has grown by 30%, surpassing referral traffic from Facebook. (Chartbeat/ MediaPost) 6)  In a survey of 500 digital marketers, 88% said their marketing strategy includes blogging, and most posts they publish have at least one visual. (Venngage) Consumer Habits The most successful content marketers recognize content marketing as an opportunity to build trust. Once your brand becomes a source of useful, reliable information, you won't have to chase customers—they’ll come to you. 7) 82% of consumers have made a purchase based on a company's online content marketing. (Clutch Survey) 8) 96% of the top-performing B2B content marketers say their audience views their brand as a credible and trusted source. (B2B Content Marketing 2019 by Content Marketing Institute) 9) 71% of consumers say they would be willing to spend more money to support products and services from a brand they trust. (Readers' Digest Most Trusted Brand Survey 2018) 10) 38% of buyers visit at least four sites to research prior to making a first-time B2B purchase. (e-tailing group's B2B Buyer Behavior) Each piece of content your brand publishes is an opportunity to leave readers with a positive impression. Creating content that’s thoughtful and informative gives visitors a reason to engage and the motivation to continue exploring what your brand has to offer. Ultimately, this builds the foundation of trust needed to turn prospects into customers. Read Also: How To Maximize Your Brand's ROI With Live Event Partnerships 3 Steps To Take Before Telling Your Brand’s Data Story 5 Ways To Improve Your Brand’s Storytelling
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https://www.forbes.com/sites/forbesdallascouncil/2018/05/04/five-ways-to-build-a-company-culture-that-attracts-and-retains-millennials/
Five Ways To Build A Company Culture That Attracts And Retains Millennials
Five Ways To Build A Company Culture That Attracts And Retains Millennials Shutterstock As the CEO of Artist Uprising, I have come across many lessons about millennials in the business. From my internal employees to the artists my company works with, I’m passionate about propelling people into roles that set them up for success. Companies often come to me asking why they are not attracting the millennial generation. When I take a moment to dismantle the mindset against millennials, the company begins to see active engagement in the right direction. With 51% of millennials being open to the possibility of another job opportunity, and with 38% of millennials expecting to leave their current employers for such opportunities within two years, it’s important that employers learn how to build company cultures that attract and retain millennials. If we neglect the future generation and continue to keep doing business as usual, turnover in millennial employment may cost the U.S. economy $30.5 billion annually, per a Gallup estimate. Needless to say, it's imperative that we as business leaders take a moment to consider a few ways to reach and retain the future leaders of America! 1. Stop trying so hard. First of all, stop trying to appeal to millennials. One character trait of this generation is “authenticity.” Millennials can sense when something seems “off.” When it comes to trying to attract and keep millennial employees, the same lessons apply to when you’re trying to entice millennial consumers. It has been estimated that 30% of internet users will block ads on their desktops by 2018. Authenticity is a vital way to stay relevant amongst consumers, regardless of demographics. For this reason, ads often no longer appeal to this generation and companies are starting to use influencers to authentically communicate their products and services. Simply stating, it’s starting to feel inauthentic. So, a solution could be to curate unique content, even internally. Take the time to customize hiring opportunities with a "day in the life of an employee" video. Or, try tailoring tasks towards an employee's strengths. 2. Let go. Gone are the days of serious micromanagement. As employers, reports, statistics and projections are crucial to running our companies. But, how we treat people in gathering those statistics will actually enhance (or hurt) the overall outcome of the report. Companies that are more concerned with the numbers will likely drive employees to perfectionism, which can have negative effects. It’s important to acknowledge the work getting done and the employee doing it. As according to a study (paywall) conducted by behavioral scientists Christine Porath and Christine Pearson, when an employee is on the receiving end of non-appreciation, 47% intentionally spent less time at work and 78% noted a decline in their commitment to the company. I've found millennials generally don't care about perfection or impressions. However, 84% of millennials consider making a positive difference in the world a higher priority than professional recognition. As their employer, it’s up to your leadership to guide them on what that difference will be. 3. Enjoy life more. Travel is a major integral part of this generation -- I believe companies that offer limited vacation time will not retain such employees for long. Before starting my own business, I worked for a company that offered unlimited vacation days. But, most of the employees used less than two weeks vacation time because the culture of the company was more fun. Allow your employees to work offsite from time to time. In fact, when it comes to office attendance, 69% of millennials say they don’t believe in attending on a regular basis. The more breathing room millennials have, the better they will perform. Put structure where you must. When it comes to retirement, nearly 7 in 10 millennials would rather explore, travel and experiment prior to retirement. A business model revolving around this structure is vital to keep top millennial talent. Enjoy life and give your employees the freedom to do the same. 4. Discover their strengths and focus in on them. I have every person take a personality test before they interview with us. It’s important to me to know how they are wired and where their strengths lie. I tend to put people in roles that will suit them best. It keeps employees loving their jobs and feeling like they have a sense of purpose. I want to see them excel in their identity by setting them up for success out the gate. It’s necessary to take these steps as hiring the wrong candidate can cost an employer as much as 130-140% of the employee’s salary. A personality test minimizes this risk and helps employers choose the right candidates. 5. Dare to dream. OK, here’s the real kicker. Remember when everyone thought you were crazy when you wanted to start your company? Now, you have a whole generation that is daring to dream just as you did. According to Fast Company, "Millennial values are turning the consumer market into a creator market," as creating choices, a legacy and connection are valued high. They want to be inspired. Let them generate ideas to help your company grow. Invite them into a conversation, and then listen to what they bring to the table. At my company, collaborating is a huge part of everything we do. When isolation occurs, it’s inevitable that we lose a valuable player. Lastly, each month we come together to daydream as a team together, and then we strategize on how to implement these dreams for the year. Let go, give the reins over a bit and see what magic millennials make — because they will make magic. Forbes Dallas Council is the foremost growth and networking organization for business owners in Dallas. Do I qualify?
800b05d82dd0ae3b05fc5e9ac73bdb04
https://www.forbes.com/sites/forbesdallascouncil/2018/06/11/meeting-the-demands-of-the-connected-commuter/
Meeting The Demands Of The Connected Commuter
Meeting The Demands Of The Connected Commuter Shutterstock Industry prognosticators have heralded the coming of the connected commuter since the 1980s, but what was once a science fiction fantasy is now becoming a reality. The future of mobility will revolutionize, rebuild and redefine the way we travel to and transact in high-density commercial and urban centers. To get to this future state, we need to challenge current perceptions, centralize services and reconsider existing assets to adapt to the changing landscape. Challenging Perception Innovation intrinsically depends on disruption. When a collective perception is blocking progress, it takes an organized effort and unbiased data to affirm or dispel the notion. In 2011, I took part in case studies organized by the City of Dallas. The aim was to understand the true demand for parking in the downtown Dallas area. Parking is an illustrative example because the parking transaction is cumbersome and rife with friction. As I have seen in my line of business, consumers want to know a parking spot’s location, pricing and availability -- often referred to as LPA -- and will likely dismiss parking options advertising an inflexible rate pinned to the highest, profit-driving price point the market will tolerate. Parking operators have historically struggled with delivering the LPA to their potential customers and offering dynamic pricing based on availability. Consumers ultimately interpret the static and unfriendly data as a lack of parking availability. The findings of the case studies showed that, contrary to the prevailing perception, there was actually an excess of parking available. With the notion dispelled, development companies were able to build up on surface parking lots. Multifamily or mixed-use developments have gone in downtown, bringing value and commerce to the area and setting the stage for the short-spurt means of transport we are seeing today. Centralizing Services Consider all the modes of transport available in urban areas -- hail-services, circulator buses, public transport, shared cars, bikes and scooters. Now imagine a service that links them all together. A service to which I can say, "I’m going to this particular entertainment venue and I need to be there by this time, and I can see all the different ways I can get there." Then as I choose my mode of transport, I am connected with a nearby restaurant to see if I’d like to make a reservation or store offering a special promotion. That is the idea of the internet of things -- connecting the various landscapes of building infrastructure with retail, restaurateurs and hospitality -- and it all is governed by mobility. If done in the right manner, it serves up relevant content and offers consumers opportunities to create the best experience where they are and where they are headed. Businesses benefit from centralized searches on their assets or services. They would see relevant searches and when they don’t see actions or transactions on a relevant search, they could question whether that is because of the area, the price or because consumers are using alternative means. This insight can make a case for promotions that lure a potential customer who is planning and cost-analyzing a journey to an area or destination. Reconsidering Assets As mobility continues to evolve, physical structures around transportation will need to adapt. Parking garages may be repurposed as transit hubs with floors or zones holding various purposes such as car-sharing or bikes. Cost-effective adaptations could make the space a more inviting, secure environment, like lighting features, planters and maybe media advertisements to increase revenue. When the autonomous vehicle is introduced, it will get unlocked in two areas first. Private roadways and private parking. Private roadways, typically referred to as toll authorities, are those in which a driver pays a premium to drive on. These roadways will become autonomous vehicle roads and drivers will pay a higher premium because it has been deemed a regulated area that your vehicle can self-govern the driving. When autonomy is unlocked in a parking lot, the vehicle can valet park itself and allow you to get out in a now redesigned transit hub. When you’re leaving, your choice of transport is there to greet you. Transportation in a connected landscape is more than getting from A to B, it’s a journey that offers curated possibilities and removes pain points along the way. In my mind, it will not only be more convenient -- it will be more magical. Forbes Dallas Business Council is the foremost growth and networking organization for business owners in Dallas. Do I qualify?
c048d8c6a830a8e4a9a6f680f414f513
https://www.forbes.com/sites/forbesdallascouncil/2018/08/02/six-tips-for-hiring-the-right-contractors/?sh=213113848f5e
Six Tips For Hiring The Right Contractors
Six Tips For Hiring The Right Contractors Shutterstock As the founder of The Good Contractors List, I have a lot of people ask me, "How do you make sure you aren't getting a bad contractor?" That is a loaded question, because everyone's definition of "bad" may be different. I have found that many people expect a contractor to be close to perfect; otherwise, they are bad. Business owners often view mistakes that are common among all people as unacceptable when they are dealing with a contractor. I believe this is because of the fear people feel about transactions with contractors. The horror stories are too numerous, and the first sign of things going south induces fear. I believe there are more good contractors out there than bad ones, but the bad ones ruin it for the good guys. However, there are some things that you can do as a business owner to ensure you are as safe as possible when hiring contractors. 1. Don’t panic and make hasty decisions. The biggest reason contractors take advantage of business owners is because they're vulnerable when something happens in their business or building. Business owners tend to go into panic mode and want to return to normal as quickly as possible. So, they jump online and start calling the contractors that are on the first page of search engine results. Most people don’t realize how difficult or how expensive it is to get on the first page of a search engine. Contractors pay big money to be the top choice on a search engine when a potential customer is in panic mode. There's a reason they can afford to be there. I’m not saying that everyone on the first page is bad, but I am suggesting you think before you start calling. 2. Consider the tradeoffs of working with a larger company. Contractors with the greatest resources (I like to call these guys Mega-Contractors) are typically quicker than most smaller companies. But with these great resources come some things that are not in your favor as the client. The problem is, in my opinion, that business owners and independent clients don't take into consideration what it will cost them to hire someone with massive amounts of resources. How does the contractor pay for all that advertising and the fleet of wrapped trucks? They have learned how to upsell customers to pay for all that advertising and make a bigger profit. 3. Avoid the 'buck in a truck.' On the opposite end of the spectrum are the smaller guys that are less experienced at running a business. They may not have many resources or even carry general liability insurance. They may be good at their job, honest and friendly, but if something goes wrong, they may not have the capital or resources to fix their mistake. Generally, one-truck guys are best for small jobs that have little chance of going sideways. 4. Do your research and dig for gold. Online reviews can be helpful, but they can be manipulated. The companies with the highest number of good reviews tend to be the ones who go after reviews. Normally people don’t take the time to review a company if they are satisfied — unless there is an incentive. There are amazing contractors who have operated their businesses for more than 20 years that have few to no reviews at all. That's because they don’t solicit good reviews -- they simply do their job. So, when you do your research, take reviews with a grain of salt and try to dig a little deeper. Go to websites like the Better Business Bureau, not to look at the complaints or lack of complaints about them but to see pertinent information. Get their address, how long they have been in business, their website and the name of the owner. Once you have the owner's name, make sure to check them out online as well. Dig as deep as you can with a company. You may be surprised about how much you can find out in a short amount of time. 5. Always focus on the details. Whether you are just doing a repair or planning for a major office remodel, the contractor needs to give you the details of what they will be doing before they begin work. Ask your technician to explain why they came to the conclusion they did and what the process is to fix the issue. If you are doing a remodel, make sure the contract includes details about materials, like the lengths, colors, styles and so on. If the contract is too vague, then you won’t have a leg to stand on if you are not satisfied at the end. The contractor could simply say, “We did not agree on granite!” 6. When you feel the pressure, run. If the contractor you are working with is turning up the pressure to sign right now, then politely ask them to leave — especially if they are using fear-inducing words. Contractors who attempt to scare clients are doing it to bring on the vulnerability panic that I spoke of earlier. In summary, most contractors are not bad, but you need to be careful when choosing contractors. Size and resources alone are not indications of a good contractor. Always do your research and get as much information as possible about the company. Research the owner and make sure there is nothing negative tied to their name. Always get a detailed contract or a detailed explanation of the services required to fix your business's issue before you allow a contractor to move forward. Most of all, follow your gut: If you have a little voice saying “not this guy,” then listen! If you follow these tips and work through issues with your contractor, I believe you can avoid being one of the horror stories we all hear about. Forbes Dallas Business Council is the foremost growth and networking organization for business owners in Dallas. Do I qualify?
9f707ed4f002f4bb7bdc64b57fa19bf0
https://www.forbes.com/sites/forbesdallascouncil/2018/10/03/three-things-business-owners-should-know-about-the-gig-economy/?sh=5194ce6c5b07
Three Things Business Owners Should Know About The Gig Economy
Three Things Business Owners Should Know About The Gig Economy So, you're a business leader in 2018. The world's economy is rapidly evolving around you, and you're seeking new ways to capitalize on emerging trends. Where a new frontier opens up, entrepreneurs, opportunists and companies emerge to capitalize on new opportunities -- something we've seen for several years now with the growth of the so-called gig economy. Gallup defines the gig economy as "multiple types of alternative work arrangements such as contingent workers, independent contractors, online platform workers, contract firm workers, on-call workers, and temporary workers." Increasingly, technology is powering the gig economy, which has been a lynchpin in catalyzing business growth. If you're thinking about taking advantage of independent workers in your own business, here are three things you should know about the gig economy. Growth According to Gallup's latest research poll on the gig economy's growth, 36% of U.S. workers have some form of gig work arrangement in 2018. The Bureau of Labor Statistics reported that in 2005, roughly 11% of U.S. workers had an alternative job. The correlation between this growth and technology's imprint on society is unmistakable. More workers are applying via gig-based applications, ushering in a new paradigm of human resources demands for companies attempting to adapt to new workplace demands both internally and externally. From delivery and graphic design to grocery shopping and web development, demands are perpetually adapting to technology's innovations. Everyone from Gen Zers and millennials to Gen Xers and baby boomers have discovered ways to make the gig economy work to fulfill their end goals. Flexibility (Especially For Millennials And Boomers) While the gig economy presents challenges, like any other economic paradigm, what it also presents that many traditional forms of employment do not is flexibility. The nature of today's gig economy offers opportunities for companies and contractors alike. Companies, on the one hand, can now hire highly motivated contractors anywhere in the world who can work for them remotely, which then encourages a competitive field to choose from. On the other hand, millennial contractors in particular value the work-life balance gigging provides, seeing it as a step toward realizing their goals, whereas Boomers may see it as a way to gain freedom while making ends meet. An earlier study found that 58% of full-time and part-time independent workers proactively chose this path for many of the same reasons. Redefining Work As the gig economy continues to grow in lockstep with technology's advancements, most contractors who choose to work in the gig economy are motivated by the need to supplement their income. While some businesses may lack insight into their own employees' place in this ever-evolving paradigm, many of them benefit from employing gig workers. As the trends evolve, we're seeing more companies employ independent contractors in all areas of need, particularly for work overflow when traditional full-time employees are unable to meet deadlines or when the specialization a task requires, like coding or web design, is in demand. Scaling up or down based on the needs of a company presents an advantage that an otherwise traditional company may not have. The nature of work is transforming the way companies and workers interact with each other. Thus, I believe it is imperative for companies that choose to work with contractors to implement policies that clearly outline what they expect and how they can best maximize their own company while valuing the independence of their workers. The gig economy presents an opportunity for leaders and workers to collaborate and redefine the way the social contract between the parties is understood. Emerging trends indicate a growing desire from both new and older workers in the workforce seeking additional means to supplement themselves and create more work-life balance. Traditional employers are discovering new ways to ensure they maximize production by hiring competitive, highly skilled workers. Jobs may be finite, but work is infinite. Forbes Dallas Business Council is the foremost growth and networking organization for business owners in Dallas. Do I qualify?
394486c034a46112fdadf0f24fabfd50
https://www.forbes.com/sites/forbesdallascouncil/2019/04/15/artificial-intelligence-in-stock-market-investing-is-it-for-you/
Artificial Intelligence In Stock Market Investing: Is It For You?
Artificial Intelligence In Stock Market Investing: Is It For You? Artificial intelligence (AI) is increasingly becoming part of our lives, often without us even realizing it. I use it in my digital marketing agency and investing, and my phone uses it to enhance my user experience. Many of the online social media interactions and phone conversations we have are with computers. The difference is often unrecognizable. I believe this begs the question, why not use AI to help you invest? I’ve been investing since I graduated from medical school. In my financial book for doctors, I explain that I sold all of my stocks years ago and quit the market. I’ve stayed out of publicly traded stocks for well over 10 years. Only recently have I found a couple of exceptions that work, including using AI programs that automate stock picking and the buying and selling of shares (aka algorithmic or automatic trading). I've observed that a number of high-income earners — including business owners, C-suite executives, entrepreneurs with successful exits and independent professionals such as doctors — have been expanding their portfolios into a wider range of asset classes over the past decade. I’ve consulted many of them on real estate, debt investments, biotech startups and reputation management. Stock trading is evolving. For example, we now have systems for tax loss harvesting that can help turn stock market losses into tax deductions. For many, I've observed that investing through self-directed IRAs, Roth IRAs and Solo 401(k)s can provide more flexibility and a variety of tax benefits. The use of AI in trading has seen growth in recent years. Wired reported that at least 1,300 hedge funds are using some form of computer modeling for the majority of their trades. There are three main ways I've observed this type of technology applied: 1. Discovering Patterns Incredibly powerful computers are able to crunch almost countless data points in minutes. This means they are also able to detect historical and replicating patterns for smart trading that are often hidden to human investors. Humans simply aren’t capable of processing that much data or seeing these patterns at the same rate of technology (if at all). Consider that AI can evaluate thousands of stocks in moments. According to CNN, when it comes to high-frequency trading, some hedge funds use AI to decipher as many as 300 million data points on the New York Stock Exchange in the first hour of daily trading alone. 2. Predictive Trading Based On Sentiment By analyzing news headlines, social media comments, blogs and more, AI can predict the direction of stocks and the moves of other traders via sentiment analysis — the process of categorizing opinions (or sentiment) people have shared in text. 3. Speed In Trading While not revolutionary, this technology adds even more speed to trading. Today every millisecond counts. AI means automated trading without even needing to call your broker or get on an app. AI isn't perfect. But, machine learning helps ensure this technology gets better and better. AI is already learning to continuously improve on its own mistakes. It deploys automated trading assistants and constantly works to improve its performance, not only by fine-tuning programming but also by inputting masses of new data. At a minimum, AI can benefit the human roles related to automated trading. Morgan Stanley, for example, rolled out its own AI tools to enhance the work of its financial advisors. But there are still caveats with using this technology to trade automatically. AI still relies on quality data being input, as well as the interpretation of that data. And despite AI's expected growth in the stock market, I've found that the sizes of your gains and losses can depend on the amount you've invested and the strategy you've employed; your net returns can be impacted by the volume and frequency of trades because you might be required to pay fees for using AI to do your trading. Essentially, if you are trading all day, you might be incurring costs on each trade that will eat into your gains or deepen your losses. For example; if you were trading cryptocurrency with $100, and you made a 10% gain — but your buy-and-sell trading costs were $5 on each side — you wouldn’t truly have any net gain. While I believe it is still wise to have a well-rounded portfolio that allows for allocation in private investments, debt and real estate, if you’re going to invest in stocks, you might consider leveraging AI. It could be especially helpful for busy professionals who want to invest intelligently but haven't mastered day trading. The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Dallas Business Council is the foremost growth and networking organization for business owners in Dallas. Do I qualify?
c755ad83f6430609ccf27640b5ccc7b2
https://www.forbes.com/sites/forbesdallascouncil/2019/05/09/what-road-trips-can-teach-you-about-your-consumers-subconscious-choices/
What Road Trips Can Teach You About Your Consumers' Subconscious Choices
What Road Trips Can Teach You About Your Consumers' Subconscious Choices As a frequent speaker on applying neurological and behavioral science to marketing, I often get asked some version of the following question: “Why do people make this stuff so difficult to understand and explain?” I totally get it. As the CEO of a behavioral research and design consultancy that helps brands understand and change consumer behavior, I’ve become adept at integrating behavioral science and psychology into creative analogies. But it wasn’t always that way. When I started my journey into understanding human decision making, I muddled through academic journals and brand consultant decks, trying to make sense of jargon like “hyperbolic discounting” and “framing effect.” I tried to boil down these heady, theoretical concepts and present them in an approachable way, but I often saw glazed eyes on every audience member who heard my presentation. They couldn’t make sense of what I was saying or see how it could help them psychologically optimize their marketing. So, I kept working. After a year, I had an epiphany one summer afternoon while planning a road trip with my son. What I realized is that we can better understand consumer decision making — and even learn to influence it — by looking at it as the planning of a family road trip. Planning any road trip requires four elements: a destination, a vehicle, a map and a few handy shortcuts. If you want to understand why people make certain choices, I believe studying these four elements can help point you in the right direction. 1. The Destination All road trips begin with selecting where you want to go. In the same way, I've found that consumers tend to crave a destination, or a goal, to guide their choices and behaviors. Goals can impact one's behavior, and I believe that most consumer purchases are made with a goal driving them. Without a destination, you’ve got no road trip. It’s the same with consumer decision making. If you don’t understand your customer’s goal, you can’t provide them with a psychological purpose to buy into your brand. They’ll be stuck in the proverbial decision making "driveway." To get consumers out of the driveway, be explicit in reminding them of their goals. For example, if their goal is to run a marathon, be direct in how you remind them of that. Don’t make them think it through. 2. The Vehicle Next step: Choose your vehicle. Remember, this choice can make or break the trip. A vehicle, when properly chosen, is an essential part of reaching your destination (if you don’t believe me, cram your family of four into a midsize sedan and see how far you can drive before everyone has a meltdown). In behavioral design, the “vehicle” driving you toward your destination (i.e., goal) is motivation. So, you first need to understand the motivation that is driving your consumer. From there, you can use images associated with that motivation to connect your brand with their ultimate goal. This is called “priming.” Here are a few examples: • If achievement is their motivation, show them an image of a runner crossing a finish line. • If security is their motivation, show them an image of a padlock or safe. • If nurturance is their motivation, show them an image of a parent touching a child’s face. With your destination and vehicle selected, it’s time to choose the road you'll travel. 3. The Map You likely use a map on a road trip to make sure you're on the right track. On some trips, you might want a sense of adventure, so you accept the risk of getting lost and take a road you've never seen before. For other trips, you might opt for a familiar route to make the experience more relaxed and reduce your chance of getting lost. When making decisions, we follow a mental road called our regulatory approach. In this case, do you want the thrill of adventure or the reassurance of something familiar? A customer’s regulatory approach impacts how receptive they are to your brand messaging. When you understand their approach, you can make your solution or offering feel like the most natural path for someone to take in that situation. To show you how this works, consider the following hypothetical example of a healthy chip brand selling its product to health-conscious consumers with different regulatory approaches: • To a cautious consumer, the brand might say, "These zero-calorie chips have no preservatives." • But to an optimistic consumer, the company could say, "These all-natural chips are loaded with vitamins." They're selling the same chips in two different ways to make the solution feel like a natural path for a range of consumers. 4. The Shortcut Last, let’s talk about shortcuts. Sometimes, all you want to do is reach your destination. These mental shortcuts are called cognitive heuristics. If you can find the right shortcut for your consumer, you can help them make a quicker, easier decision that highlights your brand over others. One way to uncover the shortcuts your customers are using is to ask them about the first time they encountered your brand. For example, if your company sells Greek yogurt and one shopper says they discovered your brand because their mom told them about it, you know they're using a social proof shortcut and will likely be influenced by reviews and testimonials. Another shopper might tell you a store employee handed them a sample of the Greek yogurt, so they felt they had to buy it. That’s a reciprocity shortcut. If you want to influence that consumer, it would help to send them free samples. There you have it: over 70 years of psychological research, across four separate theoretical disciplines, summarized with a simple road trip analogy. The goal is to help your customers along their purchasing journey, and with these four behavioral factors, you’ll see the "why” behind customers’ behaviors, and you'll be able to design products and marketing to help them reach their goals in ways that fit them psychologically. Forbes Dallas Business Council is the foremost growth and networking organization for business owners in Dallas. Do I qualify?
197b1b1909314eb22054b38c8d95a257
https://www.forbes.com/sites/forbesdallascouncil/2019/07/05/how-the-gig-economy-could-impact-on-demand-payments/
How The Gig Economy Could Impact On-Demand Payments
How The Gig Economy Could Impact On-Demand Payments Is payday your most anticipated day of the month? For some, it's a celebration on par with a wedding or birthday. Simply put, payday for many Americans is the difference between making ends meet and being out on the street. More than 78% of workers were living paycheck-to-paycheck to survive in 2017, according to a study from that year by CareerBuilder. The payroll industry at large has subscribed to a system of weekly, semi-monthly, biweekly and monthly pay schedules, which I believe has yet to be retrofitted for our modern workforce landscape. I've spent the past 11 years in payroll, payments and human resources technology. I started in 2009 selling cloud-based payroll products, and since then, I have been on just about every side of the issue — ranging from mom-and-pop payroll providers to payment startups and enterprise software companies. I've had a front-row view of payment trends from participating in multiple payroll associations, and now, my own company is tackling payroll for the on-demand gig economy. On-demand payments are slowly becoming more accessible for some. Uber, Lyft, Postmates and Airbnb are just a few of the companies at the forefront of the gig economy, a marketplace for requesting and paying for services. Workers' services are increasingly becoming more on-demand, and I believe wages are as well. Given our technological progress, I believe workers no longer need to rely on a system of traditionally scheduled payments. Influenced by the power of automation and technology, an on-demand economy hits workers and employers with a sense of urgency that constitutes payment immediately after completion of a job. Make no mistake about it, instant on-demand pay isn’t just about contractors and freelancers in the gig economy. Traditional W-2 employees are slowly beginning to have access to this type of pay as well. Some businesses, such as McDonald's and Outback Steakhouse, use tools to provide daily paychecks to their workforce. Another example is Gusto, a payroll and HR provider that launched its flexible pay feature this past year. Once you combine technology and an increasingly younger workforce, I predict we will have millions of workers who expect to be paid immediately. In turn, the future of work might mean adapting to these expectations to compete for talent. There are a few things to keep in mind when it comes to flexible payments. If you're considering making a change in how you pay your workers, Martin Armstrong, vice president of payroll shared services at Charter Communications, recently explained what companies should consider before doing so. A few of these tips include changing your internal policies to allow an advanced payroll cycle, as well as providing employee incentives to remain as an employer of choice within your industry. From my perspective, there are a few other important considerations to keep in mind if you're contemplating offering on-demand payments and a flexible payroll: • Talk to your workforce prior to implementing new payment strategies. Each organization is unique. Seek worker feedback so you have data to drive your decisions. • Don't just listen to what your workers say — understand what they do. Behavior is the best indicator for meeting your workforce's needs. For example, I've seen lots of workers who say they want on-demand pay, but when presented with the option, they still opt for weekly checks. In these cases, many of them actually want access to funds in case of an emergency or unexpected cost. That’s a different need than paying on-demand regularly, so it’s important to understand your team members’ actual needs. • Prioritize what's best for your employees. Based on my observations of companies that charge a fee for providing on-demand payments to workers, I've found that many employees are willing to pay to get their money faster. If you do decide to go this route, be sure you implement solutions that are still healthy financial options for your workers. Solutions that charge exorbitant amounts can take advantage of workers, are bad for retention and can hinder you in recruiting new talent. Michael Baer, managing editor of Bloomberg Tax, pointed out that there are also some concerns about on-demand pay, especially for traditional W-2 employees. He said, "There is a concern that on-demand transaction models pushed to market have not been fully vetted for whether they meet legal and regulatory requirements for federal and state wage-payment purposes." I've also learned throughout my experience helping companies and platforms pay freelance workers that policy is always a legitimate concern with new macro shifts, especially when technology is the core driver. It can be difficult at times for policymakers to keep up with the speed of technology innovators. Financial stress plays a big role in most workers' lives. For some, alleviating financial stress could mean providing flexible payment options. Technology is enabling some workers to choose the payment schedule that’s right for them. If this becomes ubiquitous and widespread, I predict no one will ever really go back, especially considering that 84% of contractors said they would do more gig work if they were paid faster, according to the PYMNTS Gig Economy Index. I believe attracting new workers in the future of work could mean leveraging innovative payment methods. To do this, look at what the market is standardizing to meet the demand of the new workforce. It was reported in 2017 by Intuit that the gig economy is expected to be 43% of the U.S. workforce by the year 2020. There are potential challenges to providing flexible payment options today, but I believe the rate at which the gig economy is growing shows on-demand payments shouldn’t be ignored. From my perspective, the future of payments could be unfolding right before our eyes. Forbes Dallas Business Council is the foremost growth and networking organization for business owners in Dallas. Do I qualify?
ed590a3382bcda4c3202a4edeee8af68
https://www.forbes.com/sites/forbesdallascouncil/people/amirbaluch/
Amir Baluch MDForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Amir Baluch MDForbes Councils Member |COUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
1dea0d01cb5ea9a0c5c0c02a3a9be822
https://www.forbes.com/sites/forbesdigitalassets/2019/10/02/bitcoin-volatility-by-time-period/
Bitcoin Volatility By Time Period
Bitcoin Volatility By Time Period PARIS, ILE DE FRANCE - NOVEMBER 20: In this photo illustration, a visual representation of the ... [+] digital Cryptocurrency, Bitcoin is displayed in front of the Bitcoin course's graph of Bitfinex cryptocurrency exchange website on November 20, 2018 in Paris, France. Bitcoin is an electronic money that saw an incredible increase in 2017, its price rising up to 20,000 euros, but currently its price has dropped around 5,000 euros. (Photo Illustration by Chesnot/Getty Images) Getty Images Synopsis Using proprietary data and analysis, Forbes Digital Assets examined the volatility of Bitcoin (BTC) across the following major exchanges: Coinbase, Gemini, Kraken and Binance trading against the USD, Tether (USDT) and Ethereum (ETH) pairs. We examined over 1.6 million data points over the prior 24 months. Friday is the most volatile day overall, with Saturday the least volatile. We found that the most volatile period is 16:00 UTC / Noon EST / midnight CST on a Wednesday. This is approximately 36% more volatile than the average of all time periods. Using the same methodology, the least volatile period is 8:00 until 10:00 UTC on Monday. In general, 16:00 UTC is the most volatile time period. For BitMEX, withdrawals happen only once during the day, at UTC 13:00. These windows could be adding additional volatility. We used Inca Digital Securities NTerminal analyzed using Splunk Enterprise tools. If you require bespoke analysis or have additional thoughts or ideas, please contact: [email protected] Current Bitcoin Price Analysis Bitcoin Weekly Chart. Source: TradingView https://www.tradingview.com/ Looking at the weekly chart, we see that BTC is forming a classical bull flag and is trending in a descending channel outlined by the purple lines. Bull flags usually happen when an asset enters a long phase of consolidation after a vertical, almost parabolic rise, as we’ve seen it in the case of bitcoin from the beginning of this year until the last week of June. In the long-term, bitcoin traders expect a break to the upside with higher highs, but in the medium to short-term, we might experience a further decline. Levels of support are around $7,500, which held very strong at the end of May until early June, and the 61.8% Fibonacci retracement level at around $7,300. Currently, BTC is supported by the 50 Exponential Moving Average (EMA) at around $7,900, but it is unclear how long that support can hold. Bitcoin Daily Chart. Source: TradingView https://www.tradingview.com/ After bitcoin crashed on the 24th of September, it fell through the 200 EMA on the hourly chart, which has now become new resistance. The Relative Strength Index (RSI) is currently in over-sold territory, right below 30. Volumes and volatility continue to be low, which is an indicator that a bigger move is ahead – potentially to the downside. MORE FOR YOUDonald Trump’s Former Comms Director Made A Shock $310 Million Bitcoin Bet As The Price SoarsEthereum Cofounder Reveals ‘Underrated’ Bitcoin And Crypto Bull Case Amid Massive Price RallyOCC Regulator Implements Groundbreaking Cryptocurrency Guidance For Banks And The Future Of Payments Bitcoin Hourly Chart. Source: TradingView https://www.tradingview.com/ In the last two days, bitcoin’s price surged from a low of $7,750 to $8,500, marking almost a 10% increase. Bitcoin retested $8,500 twice, and after a failed breakout the bulls got exhausted and the bears took over, forcing BTC to go lower. BTC trades currently around $8,250. On the hourly chart, the 200 EMA has become a line of resistance, whereas the 50 EMA acts as short-term support. How long the 50 EMA can support BTC’s current price, remains to be seen. Studying Bitcoin Volatility By Time Period Forbes Digital Assets set out to ascertain the most volatile periods for a number of key cryptocurrencies as well as exchanges using our proprietary data sets from Inca Digital Securities NTerminal analyzed using Splunk Enterprise tools. The data sets include millions of records. Specifically for Bitcoin (BTC), we used 1.6 million points of data over a 2 year period. We primarily focused on 4 key exchanges - Coinbase, Gemini, Kraken and Binance where the pricing and volumes are more trusted. As for the trading pairs, we focused on USD along with Tether (USDT) and Ethereum (ETH) as the primary base pairs for the study. Bitcoin Volatility By Day Forbes Digital Assets Most Volatile Period Is Mid-day Wednesday EST Forbes Digital Assets found that the most volatile period is 16:00 UTC / Noon EST / midnight CST on Wednesday. This is approximately 36% more volatile than the average of all time periods. This period is right in the middle of the U.S. work week. Friday is the most volatile day overall, with Saturday being the least volatile. Bitcoin Volatility By Time Period (UTC) Forbes Digital Assets BitMEX Outflows And Possible Volatility? In general, 16:00 UTC is the most volatile time period. For BitMEX, withdrawals happen only once during the day, at UTC 13:00. Both BitMEX and the CME expire on the last Friday of the contract month. However, BitMEX expires at 12:00 UTC, while the CME expires at 16:00 London Time which is either 16:00 UTC or 15:00 UTC depending on daylight saving time. These windows could be placing additional volatility in that time of day, and possibly be also contributing to the Friday impact that was observed. Early Monday AM EST Is The Least Volatile Time Using the same methodology, not surprisingly, the early hours in the U.S. at the start of the work week are the least volatile. The period from 8:00 until 10:00 UTC on Monday, being 35% less volatile than the average. No surprise that this is the least volatile during the work week. What is a bit more interesting is that this is even below the volatility experienced during the weekend. Overall, Saturday is the least volatile day of the week. Bitcoin Total Daily Volatility Forbes Digital Assets Bitcoin Average Volatility By Time Forbes Digital Assets Splunk Enterprise Query Used index=financial sourcetype=ohlcv market_venue=COINBASE OR market_venue=GEMINI OR market_venue=KRAKEN OR market_venue=BINANCE base=USD OR base=USDT OR base=ETH symbol=BTC | eval ohlc = ((open+high+low+close)/4), Deviation=high-low | eval cov = abs((Deviation/ohlc) * 100) | eval date_hour=if(len(date_hour)==1,"0".date_hour.":00",date_hour.":00") | chart avg(cov) as Volatility by date_wday date_hour limit=0 | eval sort_field = case(date_wday=="sunday",   1, date_wday=="monday",  2, date_wday=="tuesday", 3, date_wday=="wednesday", 4, date_wday=="thursday",   5, date_wday=="friday", 6, date_wday=="saturday",   7) | sort 0 sort_field | fields - sort_field Disclaimer Research Team [email protected] +1-646-450-8808 Forbes Digital Assets (ForbesDA) seeks to provide objective market commentary and investment insights. The data and research we use is provided by Tritaurian Resources, Incorporated which is a subsidiary of a Tritaurian Holdings, Incorporated and an affiliate of Tritaurian Capital, Incorporated which is a registered broker dealer. As always, investors should seek additional information when considering the risks and investment merits of crypto assets. This document does not contain all the information needed to make an investment decision, including but not limited to, the risks and costs and should be used for informational purposes only.
d47549cd91fcf865ea7ab74caf192dd0
https://www.forbes.com/sites/forbesexecutivefinancecouncil/
Forbes Executive Finance CouncilCOUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
Forbes Executive Finance CouncilCOUNCIL POST Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author.| Membership (fee-based)
c9a6fecb1edd41adb8787fe06e025481
https://www.forbes.com/sites/forbesfinancecouncil/2016/05/26/six-investment-opportunities-more-entrepreneurs-are-exploring-3/?sh=a7d2ad0188f6
Six Investment Opportunities More Entrepreneurs Are Exploring
Six Investment Opportunities More Entrepreneurs Are Exploring Entrepreneurs are known for taking risks. But when it comes to making personal investments, they're just as diligent as they are with their business finances, carefully balancing risk and reward -- and looking for opportunities where others are not. Below, six successful financial experts from Forbes Finance Council share which investment opportunities they (and their clients) are most interested in right now and why. Clockwise from top left: Nick Bentley, W. Michael Hsu, Chris Schwalbach, Evan Kirkpatrick , Louie... [+] Balasny, Elle Kaplan. All photos courtesy of the individual members. 1. Gold This year we've witnessed a huge transfer of wealth out of stocks and bonds, and into gold. There's a lot of unknowns in the market right now with the debt crisis, negative interest rates, and global unrest, and investors are always trying to be on the right side of the big money trades. With gold having the best quarter in over 20 years, hedge funds haven't been this bullish on gold since gold was at $1,900 and smart investors are taking the same side of the trade.  - Nick Bentley, Ventury Capital 2. Real Estate I am seeing a lot of entrepreneurs our age put their money in real estate lately. Nothing complex, just simple positive cash flow generating investment properties that are less than $250,000. It's something that we can spend some time up front, do our research, then pretty much forget about after things have been set up. The extra few thousand dollars a month is a treat and the equity upside is huge down the road. - W. Michael Hsu, Deepsky Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms.  Do I qualify? 3. Private Investments I see many entrepreneurs increasingly invest in projects in which they own, control, understand, or have a very close relationship. There's growing opportunity and transparency in these private investments. Also, I sense a declining confidence or understanding in the public markets. Thus, I see more crowdfunding, real estate investments, and investments in other businesses in which the entrepreneur has more intimate knowledge and understanding of the team, operations, and market. - Chris Schwalbach, AVL Growth Partners 4. Startups, But Diversifying Is Key Successful entrepreneurs have a tendency to reinvest in their own startups and other businesses. That makes sense as those options have the ability to be directly affected by time and effort as opposed to uncontrollable stock market cycles. Once their time is maxed out, I have seen successful entrepreneurs who understand the enormous level of risk they've been taking become quite conservative investors. An example would be one entrepreneur client who is in either startups or cash-like instruments such as FDIC-insured CDs or highly rated muni-bonds. There is no one, correct way to go about it, but successful entrepreneurs should stop improvising their personal finances and commit to a well-thought-through plan, whether that may include stocks, real estate, impact investing, alternatives or any of the above-mentioned strategies. - Evan Kirkpatrick, Wendell Charles Financial 5. Personal Health I'm seeing successful entrepreneurs invest their wealth into two avenues: new companies and their personal health. Entrepreneurs love to see people and companies succeed, so it's no surprise they get involved in new companies to provide insight and perspective. They also realize that to run an efficient business, they have to be functioning optimally.  - Louie Balasny, Botkeeper 6. Bonds And Other Less Volatile Investments Entrepreneurs have an embedded amount of financial uncertainty and volatility in their business, and so successful entrepreneurs take this into account when they invest. Because their career is already a risky investment, akin to a stock portfolio, they balance it out with a less risky investment, like a robust bond portfolio. Especially in their growth-stage years, entrepreneurs should offset career risk by placing more of their wealth in less volatile investments (like bonds). - Elle Kaplan, LexION Capital
39a36264595193cfe306c79440a0c5c2
https://www.forbes.com/sites/forbesfinancecouncil/2017/02/06/advice-from-the-experts-managing-your-finances-as-a-millennial/?sh=1d7dec30a283
Advice From The Experts: Managing Your Finances As A Millennial
Advice From The Experts: Managing Your Finances As A Millennial Stock Adobe Every generation faces a different challenge when it comes to financial planning. Millennials in particular are faced with higher student loan debts due to rising tuition costs and an average higher cost of living than previous generations. One study showed that 34% of 24-to-35-year-olds have less than $1,000 in savings and only 15% have $10,000 or more. Even if you haven't started thinking about retirement, it's never too late to plan out your financial future. Below, three financial experts from Forbes Financial Council weigh in on what they see the millennial generation experiencing at retirement age and how they would advise millennials to best position themselves now. Photo courtesy of the member Sharon Bloodworth CFP®, President at Whiteoaks Wealth Advisors, Inc. Dear Millennials, You are an incredible generation. You have already experienced seeing your own come back in coffins from wars in far-flung places. World business is being disrupted by the software innovation of your peers. You are a kind generation with a strong interest in preserving the environment, and you lean toward companies that share profits with those that need a helping hand. I can help by sharing my experience and addressing those things that you are not yet thinking of. The baby boomer generation is not prepared for retirement and will rely on tax money paid in by Generation X and millennials to support their healthcare and social security income. With expected longevity, this is going to be an expensive undertaking. It will result in less money being passed between generations because much of the boomer wealth will be used for end-of-life care. So your future financial stability and flexibility is up to you. I advise and invest for almost exclusively millionaires and multimillionaires. I have a front seat to the behaviors that build and destroy wealth. There are three routes to wealth: (1) You need to live well below your means, (2) you need equity in a company, or (3) you need to get lucky with an inheritance. Only one of these do you have most control of — and that is your spending. Most Americans live well above their means. You rush to buy something, but then you pay by credit. Assuming you only pay off the minimum required (if that), you are probably paying about 35% more than the cost of the purchase, assuming a 17% APR type of card. If people saw the price tag of what items cost with poor credit card habits, I think they would walk on by many purchases. You need to save 10-20% of your income now and invest it for the future. In our parents’ and grandparents’ formative years, if you were ill you went to the doctor or if you needed investment advice you went to a bank or a financial advisor. Today your generation is blinded by information and encouragement to self-advise. Seek out the purest sources of information, and seek professional guidance for the most important financial decisions in your life. Photo courtesy of the member Stacy Francis CFP®, CDFA™, CES™, President and CEO at Francis Financial At a young age, many millennials are already in a big financial hole. The average American under 35 holds 182% more college loans than students graduating in 1995 did, according to Federal Reserve data. They graduated into a lukewarm job market, and many can be found sleeping in the same bedroom that they lived in during their childhood. Student loan debt has slowed the progress of thousands of millennials who are trying to get a foothold in the job market and start saving for retirement. The debt burden is so great that some economists question how much bang students are getting for their academic buck. Large debt obligations have the domino effect of reducing the dollars available to invest. According to the Pew Research Center and communicate in an article by USA Today, "The median net worth of a household headed by someone younger than 35 in 1984 was $12,132 in today's dollars. Now, it's $6,815." That's a 44% drop in the real value of savings, real estate, stocks, bonds, cars and other assets. The median value of 401(k) plans today for households headed by someone 25-34 is just $8,363, according to the latest data from Vanguard. Start saving for retirement when you land your first job. Getting into the habit of saving now can make you a saver for life. By being disciplined about setting money aside, you can greatly increase the amount you have available in retirement. You can also save money for retirement by watching how you spend your money now. Use apps such as Mint.com or Goodbudget to track your expenses and set budgets. Take advantage of discounts and freebies; shop around for the best value for money. By taking steps to cut down on your expenses, you will have more to save and ultimately more for your future. Photo courtesy of the member Casey Weade CFP®, RICP®, President at Howard Bailey Financial When it comes to the financial health of millenials today, it seems there is a view that this generation is doomed due to the privileges they have been granted that other generations were not, landing us (as I am a millennial myself) the title the "me generation." I think it's time we drop the nonsense. While this generation may have its feelings of entitlement, we can find the same instances in nearly every other generation. Is this generation doomed financially? Not any more than the "greatest generation" was after the Great Depression, I would argue. Your financial success as an individual has nothing to do with the generation you are born into, but instead how you are raised and the experiences you have along the way. So what will the financial health of millennials be when they come to retirement age? It will be mixed as it always has been. Some will be billionaires; some will drown in poverty. That's up to them as individuals to decide. Now just as every generation has its own unique challenges this one is no different. The instability of the Social Security Administration will be a particularly unique challenge to this generation, as underfunding certainly means major changes, which will mean one of two things: either a reduction in benefits or an increase in taxes — most likely a combination of the two. As this generation begins saving, sky-high stock market valuations and all time low-interest rates will present challenges to the accumulation of wealth. Not to mention the skyrocketing cost of education and healthcare, which will dampen income opportunity and limit the availability of excess savings. Despite the negative impact these challenges will have on this generation's ability to succeed, those with the drive to succeed will do just that. Given my unique seat in the financial world, I have had the opportunity to meet and interview hundreds of One-percenters over the years. If you would like to fall into that category yourself, here are some common financial practices you should adopt: Max out your retirement accounts. Specifically, millennials should place the most emphasis on their Roth accounts, as a result of the potential of higher taxes in the future and the time on their side.  Avoid bad debt, such as credit cards and car loans, at all costs.  Avoid taking too much risk. Despite what you might hear, the millionaire next door probably didn't risk his life savings to get where he or she is; instead he or she protected it without fail.  Don't pay more in taxes than you owe. It's not patriotic. Put an emphasis on tax reduction strategies, e.g., deductions, credits, retirement contributions, etc.  Seek advice and learn from others. As said from Proverbs 15:22, "Without consultation plans are frustrated, but with many counselors they succeed."
6dbd45950b1e5ee74f7cb4e7490b7df9
https://www.forbes.com/sites/forbesfinancecouncil/2017/02/27/how-to-be-a-better-investor-than-the-experts/
How To Be A Better Investor Than The Experts
How To Be A Better Investor Than The Experts If you watch any of the so-called financial experts on TV, then you know their market predictions are always spot on, right? Think again. Recently I watched a financial guru take to the airwaves touting his phenomenal record of correctly predicting market returns over the last 10 years. He suggested 2017 is the year to top all others with historic gains, even going as far as predicting the DOW will hit 21,000. As the host began taking viewer phone calls, his answer to a viewer's questions showed his accuracy wasn't as good as he'd initially suggested. A caller asked how often the expert nailed returns over the last 10 years. His response: In 2008, 2014 and 2015. The viewer then said, “So in the last 10 years, you’ve been right three times.” This led the pundit to claim it’s about knowing when and how to call the markets. Basically, this guy was right 30% of the time in the last 10 years. You’d actually have a better chance of winning a coin toss or predicting the sex of a baby than listening to him. Here’s what we know for sure about investing in the markets: Had the investor that took this TV guru’s advice stayed in the markets all 10 years, they most likely would've gotten a better return in the end. Many statistics advocate that the “leave it alone” or “buy and hold” method yields the best possible outcome, as opposed to timing the market. You can find information on this method in a 2005 Jeremy Siegel book, The Future for Investors. Siegel actually identifies how being a lethargic investor and letting the market do its thing will often garner a better performance than those attempting to buy and sell based on market timing. Unfortunately, what often happens is these talking heads make it sound like they make better decisions than the do-it-yourselfers or even your average financial person. Your financial advisor may tell you to sit back and let the market be the market, and you will be fine. So, if you take that advice, chances are you’ll end up being a better investor than the “experts” that are telling you to jump in and jump out. The reason is simple: They’re missing the power and value of compounding interest. If you don’t need the money in the immediate future, the markets will typically fix themselves. The truth is, the markets tend to go up more than they go down. I remember in the early 2000s when the markets were around 6,000 and then grew to 14,000 before crashing in 2008. Now we look at them today, and we see over 20,000. It’s great that it’s growing, but there are some keys to keeping your emotions in check when you see such volatility. Check the allocation of your investments. Make sure it matches your future goals and risk tolerance. If you don’t need the money in next five to 10 years, then you may have the propensity to invest a bit more aggressively. If you need the money soon, now is the time to pull back. Rebalance tactically. As the markets in a given year have high highs and low lows, you capture the positions that gain money and buy those that lost money. So, in 2016, the first few weeks and months of the year the China effect took place and the DOW Jones, along with the S&P 500, started off with the worst possible start in history, sending some investors into a state of hysteria. It was all doom and gloom. Yet, if an investor simply rebalanced their portfolio and captured on that low growth, by the end of February or early March their portfolio rebounded. April of last year also showered us with the uncertainty of Brexit, causing yet another major swing dive. If you happen to have rebalanced at the high position just before Brexit, then again during the lows after, you likely locked in some great gains.As if those events weren’t enough, with 2016 being an election year, where no one ever imagined what would transpire, the markets shot up almost immediately, even carrying us through the end and into 2017. So talking heads on TV may spout loads of data at you. However, no one knows what’s actually going to materialize in the markets. Make sure you have good quality investments. If you're indexing, buy a good, high-quality index fund or ETF. If you’re buying individual equities, and that’s the position of your portfolio, elect to purchase those good, high-quality, high-rated investments. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? If you’re taking the talking heads' advice, ultimately you’re not going to get a 100% return. Maybe you were one of those that took their suggestions and jumped out of the market on election night. Think of the gains you missed! But if you stick with these tips instead, you really can’t go wrong. Statistically, you’ll be a better investor than the “experts” because compounding interest is your friend -- and you'll surely end up right more than 30% of the time. Heritage Investor is an independent firm with securities offered through Summit Brokerage Services, Inc., Member FINRA, SIPC. Advisory services offered through Summit Financial Group, Inc., a Registered Investment Advisor.
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https://www.forbes.com/sites/forbesfinancecouncil/2017/03/30/should-you-purchase-gold-in-your-portfolio/
Should You Purchase Gold In Your Portfolio?
Should You Purchase Gold In Your Portfolio? We’ve all heard and seen the "buy gold" advertisements on radio and television. Usually, a paid celebrity will talk about how "bad" the markets can be and then pitch a gold product. The question is, how much attention should we give to these ads? Is gold a good investment? They tell us if the stock market crashes, this is one investment that won’t go belly up. However, gold is always compared to stocks, not fixed incomes like bonds. When I hear someone considering gold, it seems they always go to the extreme, ready to place all their money in gold. Investing all your money in any one commodity is always risky business. Opinions on the yellow metal always vary. Some, like Warren Buffett, say it has no place in a modern portfolio. Meanwhile, others say it should be included. So what exactly should you do? Photographer: Guenter Schiffmann/Bloomberg Keep in mind gold doesn’t have any intrinsic value; it doesn’t pay a dividend. I want to stress here that I’m not talking about gold coins or other collectibles, like jewelry. I’m talking pure gold bullion. The best way to make a decision on investing in something like gold is to look at history. According to Money magazine's March 2017 issue (subscription required), from 1986 to the present, gold increased by about 200%, with an especially strong showing from 2006 to around 2013 to 2014 (which OnlyGold also shows). The run up in that time frame was unbelievable. However, if you look at the long-term history of the Dow Jones in that same period, you’ll find it increased by around 900%. That’s a big difference. That’s not to say you shouldn't have gold as an investment, but if you’re choosing to do so, you shouldn’t hold it as a physical investment. What I mean by that is do not buy gold bars and stock them away in your house. There’s a whole mess of security issues in doing something like that. Instead, it’s my belief if you’re interested in including gold bullion as part of your portfolio, then you should invest in an ETF or mutual fund that sells gold positions. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? The flip side of this is that gold should have its place. Casey Research published an article in 2014 (which is still relevant in today’s market) that took the stance that gold should be a fixed asset in the portfolio. The reason for that is that gold isn’t a liability of any government or corporation. Buyers can invest in gold directly and they’ve done so for decades. The research shows that since 1934, gold’s return is around 5 percent. That’s a decent ROI, especially for a fixed income position. That provides a buffer toward downturn volatility. Their research shows gold outperforming the S&P 500 by just over 5% from 2004 to 2014. The reason for that obviously includes the massive run up of gold in that period. But here’s the problem with that: Just like any investment that shows a major increase, they will also be a major decrease at some point. So be cautious. When you examine a 30-year portfolio from July 1971 to February 2014, the S&P 500 yielded just over 10%, while gold yielded 9.53%. So say you had roughly 30% of your portfolio in gold, you would’ve yielded almost 10% with a lot less volatility in the marketplace. Here’s the bottom line: If you’re following a modern portfolio theory, buying stocks and bonds, it may be advisable to put a small percentage of your portfolio in gold for a long timeframe. If you’re using it as a hedge against downside market moments and following the principles of rebalancing your portfolio at key times, keeping good quality investments and not trying to time the market, then gold does have a place in the portfolio. You can take either position and still come out on top. It’s all about your risk tolerance. Historically you will make more money in a 100% equity portfolio; however, if your risk tolerance doesn’t allow you to do that and you don’t want to place money in traditional bonds or other fixed income positions, gold may be a good alternative. Heritage Investor is an independent firm with securities offered through Summit Brokerage Services, Inc., Member FINRA, SIPC. Advisory services offered through Summit Financial Group, Inc., a Registered Investment Advisor.
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https://www.forbes.com/sites/forbesfinancecouncil/2017/05/05/five-financial-steps-for-surviving-the-loss-of-a-spouse/
Five Financial Steps For Surviving The Loss Of A Spouse
Five Financial Steps For Surviving The Loss Of A Spouse Losing a loved one is akin to peeling an onion. Each layer you pull back is bittersweet, generating more and more tears, compelling every emotion imaginable to the surface. In the past four months, I personally experienced the tragic losses of my father and my uncle. Both times I was there to help my mother and aunt pick up the pieces, emotionally and financially. Not only have I faced this in my personal life, but in my business, where we have helped clients navigate what to do after they lost a spouse, as well. Shutterstock The waters of loss are murky, and several things must be dealt with. So when death comes to your door, you’ll want to have a plan in place and a team to help you make the transition as smooth as possible, at least financially. Here are some of the major factors you’ll be dealing with as you move forward without your loved one: 1. Retitling Assets: Typically one of the first moves that need to be made after the loss of a spouse, this is the moving of assets from the name of the deceased person to the name of the surviving spouse. This includes everything from an IRA or joint bank account to an automobile or real estate. Each of these changes takes time too; they don’t happen overnight. It can be helpful to have someone who understands how to get these processes taken care of in a timely matter, like a lawyer or Certified Financial Planner (CFP)™. Having qualified help is often the key to a smooth transition. 2. Death Benefits: This is where things like life insurance policies, annuities and Social Security benefits, to name a few, come into play. Life insurance can be a highly emotional component of dealing with loss. I cannot even begin to explain how overwhelming it was to file that claim when we lost my father. However, it's crucial to find all existing policies and file the appropriate paperwork as soon as possible, so you receive the financial benefits you are entitled to. This is also an area where employing an expert can be worthwhile. They can take care of some of these processes for you, ensuring everything is filed correctly, as well as helping you to avoid some of the emotional baggage you will experience in doing it on your own. 3. Surviving Income: In additional to immediate benefits, you may have benefits that will provide you with ongoing income after the loss of your spouse. There are calculations you’ll need to deal with to figure out exactly what money is coming in. For example, you must find out what you are entitled to in terms of your late spouse’s Social Security benefits. Perhaps it’s just you, or maybe you have children. Either way, those calculations need to be made and the necessary paperwork filed, not just for Social Security, but also any pension benefits you might receive. There are several vehicles of income you may be entitled to after losing your spouse, and you need to know what they are and fill out the proper paperwork to ensure you get the income your eligible for. 4. Estate Closure: One major mistake I've seen with a client of mine was that they never probated the estate of the deceased. That made for a mess; after the second spouse passed away, there were $90,000 in past probate expenses left to be settled. It’s imperative that you close out or move the estate. If proper planning is in place, then probate is often simple. However, if it hasn’t been done correctly, you may need to hire an estate attorney to help you get everything in order. During probate, you’ll be working to let creditors know what transpired and closing bank accounts, online accounts, credit cards, etc. You may need to rework contracts, remove names on phone bills, and other things of this nature. Your goal is to close out the digital footprint of the deceased individual. 5. Final Tax Return: Once a person is deceased, a final tax return needs to be filed. I highly recommend working with a CFP® and/or a Certified Public Accountant (CPA) for help in this area. You want to make sure the final tax return is completed properly, as mistakes could cause unnecessary harm to you as the surviving spouse and increase your tax liability in the end. A CFP® and a CPA can work hand in hand to minimize the tax burden on any inherited monies. There are also ways they may be able to reduce the taxable income through various investment strategies. All too often, critical things are overlooked during the death of a spouse, but this list should help you track the major steps you'll need to take to ensure the security of your financial future. No one should have to shoulder the burden of dealing with these financial landmines alone during this devastating time. Surrounding yourself with an experienced team that can help you through the paperwork can allow you the peace of mind you need to begin walking the path of emotional healing. Heritage Investor is an independent firm with securities offered through Summit Brokerage Services, Inc., Member FINRA, SIPC. Advisory services offered through Summit Financial Group, Inc., a Registered Investment Advisor. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2017/05/16/looking-ahead-how-automation-will-change-the-accounting-industry/
Looking Ahead: How Automation Will Change The Accounting Industry
Looking Ahead: How Automation Will Change The Accounting Industry There's been a lot of talk about the use of automation and with good reason. The computer process allows for easier sorting and analysis of large sets of data, as well as handling everything from driving cars to basic customer interactions to company logistics. But what about the accounting industry? How can the ability to set automation to work on increasingly complex tasks help financial experts? Will this process be a sea change for the industry, or something more incremental? Below, six members from the Forbes Finance Council talk about what they see coming in the next five years, ranging from easing the workloads of financial teams to giving business owners access to virtual CFOs. Forbes Finance Council members weigh on in how tech innovations will move the industry. All photos courtesy of Forbes Councils members 1. Web-Based Coaches And Software Will Be The Future As technology drastically increases and older accountants hesitant to use these tools retire, we'll likely see software take a bigger role in this arena. For example, we'll probably see a trend of web-based coaches replace your brick-and-mortar accounting firms. - Justin Goodbread, Heritage Investors 2. Finance Professionals Will Be More Strategic Today even great financial teams get bogged down in laborious manual activities: reconciliation, chasing A/R, managing cash application or cutting checks. The future is finance that auto-reconciles, contract and payment terms that auto-execute, AI routing cash applications, and smarter billing. These innovations will free up time for the finance team to be less stuck in the weeds and more strategic. - Jeremy Almond, PayStand 3. Business Owners Will Have Access To Virtual CFO Services Business owners need financial data at their fingertips to run their firms effectively, but hiring a controller-level professional isn't always feasible. Virtual CFO services will leverage online finance tools to seamlessly integrate payroll, billing, financial statements, financing and more at a fraction of the cost of traditional CPA firms, freeing business owners to do what they do best. - Erik Christman, Oxford Financial Partners 4. Everything Will Be Easier We’ve already seen how companies like Wealthfront have come to rely on technology as opposed to human involvement. The short answer is that investing will become easier, filing taxes will be easier, and creating reports in a business context will be easier. The longer answer is that this shift may not happen in the next five years. - Ismael Wrixen, FE International 5. Surprisingly Little I remember earning my undergrad in accounting in 1999, and I was told that accounting out of the box was going to kill the profession. Ironically, my last two CPAs stopped taking new clients because of demand. Smart people want to reduce complexity and increase accuracy. Automation has a long way to go to convince us. - Darryl Lyons, PAX Financial Group LLC Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 6. Accountants Will Be More CFOs Than Number Crunchers Software is a great tool to minimize the tedious side of accounting and bookkeeping. But you still need to know what the numbers mean. Free from the tedious tasks, accountants will be able to focus their efforts on developing KPI's, budgeting for growth and assisting in improving cash flow: more CFO like advice without the cost of a full-time employee. - Lee Reams, ClientWhys, Inc.
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https://www.forbes.com/sites/forbesfinancecouncil/2017/05/19/seven-tips-on-how-much-should-you-set-aside-in-savings/?sh=1f72a59f6601
Seven Tips On How Much Should You Set Aside In Savings
Seven Tips On How Much Should You Set Aside In Savings Planning for retirement is important: investing small amounts over a long period of time helps you far more than trying to set aside large amounts with little time left before you need the funds. But retirement is not the only thing you need to plan for. Unexpected bills — including medical issues, broken refrigerators or costly automotive repairs — are a factor smart planners need to prepare for, as are family needs, vacations and personal goals. So how much should you have on hand in case of emergencies? Below, seven experts from the Forbes Finance Council share what they advise people set aside into savings. Seven Forbes Finance Council members weigh in on how much savings to set aside. All photos courtesy of Forbes Councils members 1. Enough For An Emergency Fund Emergency expenses happen when you least expect them (like your roof suddenly needing repair). That's why I tell clients they should have 6-8 months of living expenses saved up before investing. That way, you don't have to take on debt or suddenly withdraw from your investments on a rainy day. As big of a waste as savings accounts are, you'll need this safety net before growing your wealth. - Elle Kaplan, LexION Capital 2. Between Three And Six Months A lot depends on the stability of the individual's job, if they are self-employed, and so on. Going through the financial planning process is always ideal in determining the best number. However, as a rule of thumb, we like to recommend that if an individual is single, they should save six months of expenses. If married and both spouses are working, then save 3 months worth of expenses. - Amir Eyal, Mylestone Plans LLC 3. Aim For 12 Months Retirement savings will help you in 10-30 years, but it won't help you tomorrow. Whether you lose your job, have an unplanned child, or unexpected medical bills, it is never a bad idea to have some money in your savings account for the rainy day. It may take time to build up the buffer, but aim to put aside 12 months' expenses. Saving more means spending less, which is key if it doesn't rain, but pours. - Atish Davda, EquityZen 4. Look At The Type Of Work You Do Life will throw curves at you. Traditional financial planning tells us to set aside six months of expenses. I believe the stability of your job is a better indicator. If your profession has traditionally exhibited volatility, such as marketing or sales, perhaps 10 to 12 months is more prudent. On the other hand, if your profession is stable such as government employment, six months may suffice. - Andy Barkate MS, California Retirement Plans 5. Allocate 30% To 40% Of Income To Savings And Investments An emergency savings fund and retirement fund are just the beginning. People should also be saving for trips and toys, as well as aggressive investments, separate from their main savings account. In general, if people can allocate 30% to 40% of their income to various savings and investments, and use 60% to 70% for their general life expenses, they’re on a good trajectory. - Ismael Wrixen, FE International Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 6. Set Aside 10% And Avoid Credit Card Debt It depends on the individual (their income and debt ratio) and how much they can realistically set aside. A good rule of thumb would be to set aside 10% and have your financial institution automatically deposit 10% of your check into a savings account. Always pay yourself first every month. For young people, stay out of large credit card debt. Period. Or pay it off ASAP. - Ibrahim AlHusseini, The Husseini Group 7. Look To Your Five-Year Plan My philosophy is to store at least 20% of your income for retirement. So when it comes to savings accounts, first you need an emergency fund, or three to six months of living expenses. Next, you need an account to accomplish your five-year plan. For example, if you're planning a big purchase in a few years, set a percentage of your income above that 20% and save for that specific purpose. - Justin Goodbread, Heritage Investors
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https://www.forbes.com/sites/forbesfinancecouncil/2017/05/26/tips-for-the-self-employed-how-to-ensure-a-stable-financial-future/?sh=453212e02026
Tips For The Self-Employed: How To Ensure A Stable Financial Future
Tips For The Self-Employed: How To Ensure A Stable Financial Future As a self-employed individual, your work comes with a level of freedom and other benefits you may not experience in a more traditional job setting. Career independence also has its downsides, though, one of which may be financial insecurity as a result of poor investments or failure to save for retirement. In fact, nearly half of self-employed individuals and small business owners, are not doing anything to prepare for retirement, according to a recent survey by online accounting software provider FreshBooks. The research further shows that many self-employed Americans are not putting anything aside for rainy days and any possible financial setback would have a massive impact on their businesses. Below, ten finance experts from Forbes Finance Council offer their insights into the best retirement and investment options for self-employed individuals. These members of Forbes Finance Council discuss retirement planning for the self-employed. All photos courtesy of Forbes Councils members. 1. Budget And Invest Wisely First off, everything streams from your budget. Use apps such as Mint or Acorns to nail down your budget. For tracking everyday items and keeping them in check, these tools are excellent. More importantly, the self-employed should take advantage of Health Savings Accounts (HSAs), Simplified Employee Pensions (SEPs), SIMPLEs and Solo Ks. These investment tools can help keep you on track for retirement. - Justin Goodbread, Heritage Investors 2. Open A Solo 401(k) Or SEP IRA Just because you're self-employed doesn't mean you shouldn't use tax-advantaged retirement investments. You still have options to allow your wealth to grow and compound tax-free. For instance, you can open a Solo 401(k) and not pay taxes on it until retirement. Also, a Simplified Employee Pension Individual Retirement Arrangement (SEP IRA) is a type of IRA for business owners that has tax advantages coupled with higher contribution limits than other IRAs. - Elle Kaplan, LexION Capital 3. Choose A Passive Investment Go the do-it-yourself route and outperform most of your corporate peers! Retirement plans are typically actively managed, and research has consistently shown that passive investment strategies tend to outperform active ones over long periods of time. So the only tool you really need is access to an index fund or a low-cost S&P 500 exchange-traded fund. Continue adding to it over the years and find yourself significantly ahead of the pack. - Gabriel Grego, Quintessential Capital 4. Supersize It Self-employed individuals have an advantage over their peers who own a business with employees, in that they don't need to worry about discrimination rules. Successful individuals who have the means to save and deduct over the $60,000/year allowed through a 401(k)-type plan should consider a defined benefit (DB) plan, which could allow them to put away as much as $250,000/year: a tremendous tax advantage! - Steve Diess, Independent Actuaries Inc 5. Think Outside The Box Most self-employed individuals focus on the investments, not the taxes, which is perfectly fine for those starting out in developing their own retirement savings. However, there are some little-known strategies out there that only the wealthy really benefit from, such as captive insurance companies, deferred compensation, and corporate restructuring, not to mention little-known tax deductions. - Casey Weade, Howard Bailey Financial, Inc. 6. Opt For A Solo 401(k) Coupled With An S-Corp Flying Solo? A Solo 401(k) gives you a much more cost-efficient contribution strategy than other solo plans. You can contribute $18,000 ($24,000 if you are over 50 years old), plus 25% of your salary or self-employment income. This creates tremendous tax savings when you couple your 401(k) with an S-Corporation. You can keep your Federal Insurance Contributions Act (FICA) amounts much lower and still put away the same amount as an SEP with tax efficiency! - Francesca Federico, Twelve Points 7. Invest 25% Of Income With An SEP IRA The basic plan would be an SEP IRA. A self-employed individual can invest 25% of their compensation with a limit of $54,000 in 2017. If you are looking to save more money, establishing a 401(k), a profit-sharing plan, and a cash saving plan may not be out of the question. When considering these options, consult with an investment adviser, a Certified Public Accountant, and an Employee Retirement Income Security Act (ERISA) consultant. - Lance Scott, Bay Harbor Wealth Management 8. Invest In National Index Funds Ask anyone who’s taken the time to understand investing, and they will tell you that national index funds are solid investments. Don’t listen to so-called “gurus.” Learn from people such as Ramit Sethi and Tony Robbins, who are trying to make managing your financial life as easy as possible. You’ll probably hear the same thing. - Ismael Wrixen, FE International Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 9. Focus On Simple Self-Employment Retirement SEP IRAs, Roth IRAs, and Solo 401(k)s are all solid vehicles for self-employment retirement. The best fit really depends on your lifestyle, earnings, and how you want to be taxed. Of the services out there, my favorites include WiseBanyan, HonestDollar and Betterment – all of them very easy to set up and use. Above all, starting with something is better than getting overwhelmed with options and saving nothing! - Ace Callwood, Painless1099 10. Aim For Tax-Free Growth Self-employed individuals have access to several options to supplement their retirement planning: SEPs, Solo 401(k)s, and Savings Incentive Match Plan for Employees (SIMPLE IRA). All of these grow "tax-deferred." Additionally, anyone with earned income can open a Roth IRA, which will grow tax-free. - Jacob Alphin, Rillhurst Capital
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https://www.forbes.com/sites/forbesfinancecouncil/2017/06/05/should-you-hire-a-finance-professional-or-go-diy/
Should You Hire A Finance Professional Or Go DIY?
Should You Hire A Finance Professional Or Go DIY? In the last few weeks, I’ve met with several prospective clients who are the DIY types when it comes to their portfolios. Despite their strategies, we found areas where professional advice could have helped.These prospects were extremely intelligent individuals — nuclear engineers, Ph.D.s, etc. — who subscribed to the Bogle Theory. This is a concept developed by Jack Bogle from Vanguard. He recommends buying index funds and holding them; just leave them alone and don’t worry about them. While they’ve managed to perform well for themselves, their reason for in coming to meet with me was to see if their current investment strategies were in line with their ultimate goals. At first, they argued it was just too expensive to hire an advisor. Here’s the truth, though: advisor fees can range anywhere from 0.5% to 2%. However, most are typically between 1% and 1.5%. Many investors feel the fee is worth it for the customized professional guidance they receive. One of the biggest reasons it’s difficult to relinquish our control and let an advisor manage our money is because money has an emotional component to it. However, that’s also why it’s vital to allow someone else to take charge sometimes. I even let someone else manage my money. Why? Because when we manage our own money, we have a tendency to be either too conservative or too aggressive and think we can “fix” our portfolios. That fee becomes worth it just to keep us from a making an emotional mistake. Shutterstock That's not to say you can't do it yourself. Obviously, there are those who are quite capable of achieving favorable outcomes when they go at it alone. If you're just getting started, you may want to go the DIY route. There are many online resources that can guide you. Those who live simple lives can also do great for themselves. For example, if you don't own a business, have very little debt and aren't closing in on retirement, the benefits of DIY investing may serve you better than an advisor could. The key to a DIY success story is often knowledge. These investors take the time to learn what they need in order to succeed. They often aren't following the stock market monthly or allowing news to influence their investing decisions. Emotional investing is never a good idea. If you're one of those people who wants to dive in and learn as much as you can about investing, retirement, insurance, general finances, etc., then the chances of you being a successful DIY-er will undoubtedly skyrocket. However, gaining all the knowledge you need to be effective in these areas can be a daunting task. Just like some people are triumphant when it comes to losing weight alone, there are those that will enjoy success in investing alone. But those results, while not impossible, are not typical. Recently, one of the top avenues DIY investors have been turning to is robo-advisors, which provide an algorithm-based approach to portfolio management. These can be great for the DIY investors. But robo-advisors can't look at your finances in the context of your life. In fact, there probably isn’t another area of our lives, outside of money, that we take such a proactive, hands-on approach. For example, when it comes to our automobiles, we’ll gladly pull up to a mechanic shop to get the proper maintenance for any problem we may be experiencing. We’ll whip out our wallets and pay that fee because we trust the experts know what they’re doing; they work on cars daily. Yet we often won’t let anyone help us maintain the proper balance in our money matters. When we hire a professional — one with good transparency — he or she can show us holistic benefits. That means working on more than just your portfolio alone. Professionals can help find ways to minimize your taxes and keep you on track to reach your long-term goals. The list goes on and on. A good advisor/wealth manager in a fiduciary role is entirely focused on helping you reach your dreams, making the advisor worth the money you’ll spend. That’s why many wealthy people tend to hire outside help. They aren’t focusing on the fee; they’re looking at the gains they’ll reap in the future with a professional’s help. If you’re one of those people who can sit back and leave your money alone to grow, then you may do well for yourself. However, for most Americans, coaching is necessary to obtain the right balance in investing. Instead of facing the burden of reaching your monetary goals alone, hiring a professional, much like a hiring a fitness coach, can get you on the path to a healthier and wealthier way of life. Either way, get in the game. That's the real key to achieving optimal results and reaching your financial goals. Heritage Investor is an independent firm with securities offered through Summit Brokerage Services, Inc., Member FINRA, SIPC. Advisory services offered through Summit Financial Group, Inc., a Registered Investment Advisor. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2017/06/29/stash-away-some-cash-as-part-of-your-wealth-management-plan/?sh=674cb35b1e0d
Stash Away Some Cash As Part Of Your Wealth Management Plan
Stash Away Some Cash As Part Of Your Wealth Management Plan Do you ever ask yourself, “If ‘cash is king,’ why does my financial professional always want me to stay fully invested?” Who does it benefit most? Your broker might talk about “lazy money” or “dead money” and tell you it’s not doing anything for you -- especially with such low interest rates. But there are several reasons why it’s smart to keep some cash that’s easy to get your hands on when you need it. Shutterstock How much to hold back depends on where you are in your financial life cycle. When you’re still in the accumulation stage, saving for retirement: Start with a three-month emergency fund before you even begin saving. Then, always keep at least 5% of your retirement savings in cash, which will give you some wiggle room when a good investment opportunity strikes. Don’t put everything into your 401(k); build cash that’s easier to access. If you see a chance to make a good investment, you’ll want to be able to get to the money quickly. (Paying cash also gives you bargaining power and often gets you a discount.) Taking a 401(k) loan or a taxable distribution can be devastating to your retirement savings. Contribute enough to get any company match, but don’t go overboard. If you’re saving 20% of your gross paycheck, consider keeping half outside your 401(k). Compound interest can make you a successful retiree, but it’s never going to get you to the next level of wealth you might be striving for. When you’re in retirement: At this stage, the focus should be on your return on life, rather than return on investment. Reducing anxiety should be a primary goal, and knowing you’re always prepared for an emergency can deliver peace of mind. Besides, it has been proven that larger bank balances, not just greater wealth, lead to increased happiness. Since you can no longer supplement your income by working overtime in a cash crunch, it makes sense to double your emergency fund to six months’ worth of spending needs. Once your basic retirement income needs have been covered, consider holding back some excess cash so you can look for opportunities to further grow your wealth -- think 5-10% of your retirement savings. If you’re a business owner: Business owners are presented with even greater risks and opportunities during a cash crunch. Set a good foundation with a three- to six-month emergency fund for yourself AND one for your business. Set aside additional cash for long-term business growth. Companies like Apple, Cisco Systems and Microsoft are holding onto record levels of cash these days. They know good investment opportunities have been limited over the last decade because of the booming stock market; when the tide turns, they can swoop in on the businesses that weren’t prepared. Keeping one to two years of business net profits in cash won’t turn you into a slow-growth loser; it will help you grow when others are closing their doors. If you’re still wondering about the wisdom of sitting on a stash of cash with interest rates where they are, there are options out there that can provide you with both growth and flexibility. Bank savings and checking: Some accounts are yielding as much as 2%, which makes them an appealing place to put your short-term (less than a year) emergency funds. Money market funds: Rates are low, but if you venture into online banks, you may find something in the 1-2% range. Certificates of deposit: CDs still offer a welcoming place for your short-term emergency funds. Just make sure early withdrawal penalties are on a portion of your interest, not your principal. While you may take a penalty for a distribution, it will most likely still benefit you more than if it had just stayed in your savings account. Whole and indexed universal life insurance: You probably haven’t thought of using a life insurance policy as a part of your emergency fund, but it can offer risk management benefits, liquidity and growth. The primary purpose of buying a life insurance policy should be for the life insurance benefits, but if you get some cash working at the same time, that's a bonus. Some carriers offer substantial liquidity features on their products, even waiving all penalties on withdrawals. Whole life returns may be in the 1-3% range, while indexed universal life (IUL) can offer market participation with principal protection. Structured correctly, you should be able to maintain your original investment with total liquidity and receive a death benefit that can double as your disability or long-term care insurance. If you have any old cash value life insurance, this can be an advantageous place to build up some cash reserves, as you probably had it long enough to get past any surrender charges. For instance, I had a client looking for a place to position some extra cash from the bank who had a life insurance policy that was over 20 years old.We were able to add additional cash to the policy, increasing much-needed death benefits, as well as getting almost 4% per year on the cash. I myself utilize an IUL policy for my excess cash instead of paying off our home mortgage. I picked up some much-needed death benefits to protect my family and a place to hold back cash for future opportunities. My returns have greatly outpaced my mortgage rate while staying tax-deferred and, if I ever need to pay off the mortgage, my funds are available without a surrender charge. Not to mention, I get to deduct my mortgage interest along the way. Of course, most people can’t put everything in cash, and even if you can, you probably shouldn’t. But if you have a comprehensive financial strategy in place, you can position yourself for maximum growth today and have liquidity for the future. Remember, it’s okay to accept some lower rates of return on the money you’ve invested in safer assets because, when opportunity strikes, you’ll be ready to pounce. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2017/07/20/the-internet-of-things-big-and-getting-bigger/
The Internet Of Things: Big And Getting Bigger
The Internet Of Things: Big And Getting Bigger Unless you’ve miraculously avoided all technology over the past few years, you’re likely familiar with the term Internet of Things -- or IoT. What you may not know is exactly what this phrase means, or what it means for you. The IoT, simply put, is a way of bringing anything that can turn on and off into the fold of the internet superhighway. It means harnessing technology to connect everyday products to the internet so that you can automate their functions via smartphones, computers and tablets. Shutterstock Once upon a time, the concept of a smart home called to mind palatial, high-tech houses only within the reach of the wealthy. Times have changed. Ericsson predicts that there will be 18 billion IoT devices worldwide by 2022. Of those, 1.5 billion will use a cellular subscription. The IoT In Real Life What does all this tech connection mean in application? Here are a few examples of daily tasks made easier by the Internet of Things. Imagine you could: Have your coffee brewing before you wake up. Close your garage door from work. Bring your house to the perfect temp before arriving home. Send your grocery list to the store automatically -- and have it delivered. The idea of a connected environment isn’t new. Companies were dabbling in concepts like smart refrigerators as early as the 1990s. Early products like the Electrolux Screenfridge may not have become mainstream, but with smartphone ownership in the U.S. at better than 80% (according to consumer behavior analyst comScore) this technology is now available to nearly everyone. The IoT And Business Naturally, enterprise is taking advantage of these technological conveniences, improving both the bottom line and the consumer experience. What’s available now: Businesses already use the IoT to streamline formerly time-consuming tasks. Counting inventory manually is a labor of the past. Inventory management can all be automated, allowing lightning fast access to any number of inventory metrics. Data tracking has also undergone drastic changes over the course of technological advancement. Those little loyalty cards not only tell companies how much you spend but precisely what you spend on and how often. Small businesses aren’t left out of the connection fray: from mobile credit card readers to remote security camera management, smaller companies are able to increase profit and reduce expenses by utilizing the IoT. What’s next: According to a recent research report from Business Insider, there are exciting things coming in the next few years. BI’s forecast includes: Teller-assisted ATMs Soil sensors to enhance agricultural productivity and efficiency Smart buildings with automated processes to improve tenant experience The IoT is even disrupting the municipal services sector. A company called Bigbelly, founded in 2003 by two college students, offers trash collection solutions that reduce labor hours and streamline collection. By using built-in sensors and compactors inside city garbage cans, communities manage trash collection by targeting only those containers that actually need emptying at any time. The IoT At Home Virtually anything in your home can become an IoT integrated device. From the pedestrian -- turning your lights on and off remotely -- to the extravagant, like the HiMirror, which analyzes your skin conditions and recommends beauty routine solutions, life is becoming increasingly tech-ified. While you may not be ready for total home automation, there are plenty of ways to embrace the Internet of Things to simply make life a little easier. What’s available now: Security systems with remote control functionality Smart thermostats, smoke and carbon monoxide detectors Smart kitchen gadgets, including cooking appliances, and refrigerators and garbage cans that track inventory Wearables like fitness trackers and smart watches Voice assistants like Google Home and Amazon Echo, which play music, control other devices, answer questions, even order pizza What’s next: While in-home IoT applications are in constant states of development and refinement, one of the most exciting sectors is automotive innovation. It was only a matter of time before connection moved into our cars, and that day is here. You can already buy a car with built-in Wi-Fi, but it gets even better. On the horizon is technology that will inform you of impending problems with your vehicle, track fluid levels, and locate your car if it’s stolen. Companies like Kaa, maker of an open-source IoT platform, are working toward enabling total vehicle monitoring, management and automation via the power of the internet. As mentioned earlier, billions of additional devices will become connected in the coming years. With more and more appliances and devices taking to the internet, it’s par for the course that the Internet of Things will expand beyond the reaches of the home or business. We can see this happening already with smart watches, activity trackers, GPS trackers and similar wearable tech. Through a SIM card, these devices use an internet connection to provide near real-time feedback. A parent can give their child a GPS tracker and receive automatic updates while he or she is en route to school. Cell phone carriers are leading the charge, offering low-cost or even free SIM cards for a range of devices. IoT Challenges As with all tech when it first becomes available on a mass scale, the IoT has suffered growing pains. For consumers, if you don’t have a hub that can control all your devices, you must manage your automation through multiple apps rather than one simple interface. This means you’ve got to be vigilant about making sure that any gadget you add to your IoT network is compatible. As far as industrial and business applications go, there are also integration bumps, security concerns, and issues with managing so many devices on one network. The Future Of The IoT The Interactive Advertising Bureau (IAB), reports that two-thirds of Americans already use at least one connected device. Just as with the release of the first smartphone (rudimentary as it was) in 1992, the IoT becoming the norm isn’t a question of if -- it’s a matter of when. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2017/08/01/what-does-a-cfo-do-when-everyone-knows-the-numbers/
What Does A CFO Do When Everyone Knows The Numbers?
What Does A CFO Do When Everyone Knows The Numbers? Long gone are the days when it was enough for a Chief Financial Officer to know how to read and manage a balance sheet, track the ratios and run a company’s accounting department. Technology has rapidly transformed the role of the CFO and the expectations the fellow C-suite executives have of the position. With access to significant and almost real-time data, many of the traditional expectations for CFOs -- producing monthly financials or compiling budgets in thickly bound books (or the digital equivalent, spreadsheets) -- are no longer sufficient. The CFO was historically characterized as the secret custodian of financial information and, in most circumstances, information not accessible to the rest of the organization. Shutterstock Before taking on my current role at Xero, I held several CFO positions in airlines and media organizations. Over the years, with the plethora of analytical tools available, dashboards and other elegant presentation formats, the CFO role has evolved to incorporate the role of the Chief Performance Officer. CFOs with access to such rich data are usually more equipped to join the dots between customers, revenue, key indicators and the financial performance of the business. A modern CFO connects numbers with a company’s business strategy to help drive and communicate performance. Here are some of the ways access to real-time data and analytical tools are changing the role of the CFO. Connecting Strategy With Performance: Telling The Story Behind The Numbers The CFO’s responsibility is to provide sound financial advice to the business that improves shareholder returns. In the past, a financial professional would rely on historical information to determine a company’s position. With the time lag in data availability, the guidance we would provide was steeped in what had previously happened, not what’s currently going on in an operation. Massive disruptions in economic models in the current AI-driven age has changed all of that. Real-time flows of financial data improve a CFO or accountant’s ability to detect patterns and predict behavior. Data, or lead indicators, help identify risk, inform decision-making and influence advice. This has become the lifeblood of every finance department. Last year, our platform processed more than $1.4 trillion worth of incoming and outgoing transactions. With such a large amount of real-time data and pattern recognition tools now available, predictive diagnostics can be provided in real time through smartphones, as opposed to well after the event to perform post-mortems. Such tools should enable finance leaders to close the feedback loop with other senior management members and enable the company to course correct well ahead of historical practices. This is particularly relevant in a global organization, where often the leadership team is dispersed across multiple time zones. Real-time access to information, analysis and course corrections are a major competitive advantage. Avoiding Data Overload: Separating Signals From Noise One of the biggest challenges in this age of instant communication and feedback is a tendency to drown in the noise and fail to detect signals before it is too late. An early mentor of mine taught me that one common pitfall of senior managers in not being able to separate signals from noise. Nowhere is this trend more apparent than within cyclical industries in the midst of structural change like traditional media. Economic downturns exaggerate structural shifts to more cost-effective and technically advanced solutions. Unfortunately, when the economy rebounds, the revenues don’t return to the disrupted industry; they stay behind with the more cost-effective solutions. With the advent of intelligent, analytical solutions we are now more able to correlate external events to internal revenue trends and isolate more distracting incorrect and value-destroying hypotheses. It is a CFO’s fundamental responsibility to help identify these early trends and to alert colleagues and the board with solutions to address these challenges before it is too late. Wholesale destruction of traditional business models can be avoided. Small business desktop accounting software is another business model in the midst of major structural change brought on by the prevalence of cloud technology, improved computing power and the rise of mobility. Protecting Information And Ensuring Its Accuracy The growing importance of real-time data in businesses of all sizes means protecting accuracy and integrity is vital for a company to mitigate financial risk. It also means CFOs and financial professionals have a growing role to play in the protection of company data. A recent Grant Thornton survey found that a company’s CFO and CIO are usually responsible for the company’s cybersecurity program. Data breaches have the potential to be costly and can jeopardize a business of any size. According to an IBM and Ponemon Institute study, the average cost of a data breach in 2015 was $3.79 million. While an IT department would be responsible for the day-to-day protection of data and in charge of maintaining integrity, the CFO needs to assess data risk, ensuring that the data is safe, secure and reliable. Managing data risk is an integral component of every financial audit program these days. And with such a huge cost attached to losing data integrity, it is essential to invest in systems and processes that prevent a data fallout, rather than paying to clean up the mess afterward. As a leader in a company, the modern CFO needs to propel a culture of security. No longer is our job just about revenue, costs and budgets. There is a strong emphasis on managing risk, driving performance and ensuring the integrity and accuracy of company information. And now, with so much data available and powerful tools to analyze it, forecasting outcomes and altering strategies to improve operating performance is increasingly driving the agility of businesses globally. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2017/08/04/five-mistakes-young-adults-must-avoid-when-investing/
Five Mistakes Young Adults Must Avoid When Investing
Five Mistakes Young Adults Must Avoid When Investing While retirement may seem a long ways off, the younger investors get into the markets, the better positioned they'll be when it comes time to step away from work. Keeping in mind that everyone's circumstances and risk tolerances are different, there are a number of big mistakes that young adults should avoid, including ignoring investing entirely or jumping in without a goal or plan. To help young investors stay away from damaging errors, members of the Forbes Finance Council advise the following: These members of Forbes Finance Council discuss how young investors can avoid common pitfalls. All photos courtesy of Forbes Councils members. 1. Don't put off retirement investing. The beauty of investing for retirement when you're young is that your wealth has decades to grow and compound. A few hundred dollars stashed away every month can become a fortune by the time you reach retirement age. However, most people put this off because it's so far away, and they'd rather spend elsewhere. You can avoid scrambling later by putting a little into an IRA or 401(k) each month. - Elle Kaplan, LexION Capital 2. Don't be afraid of debt. I don't recommend blowing through expenses on credit cards, but as a young adult, it's the perfect time to take other risks. Taking out $30,000 in loans to start a business gets riskier the older you get, so do it now. Start to think differently about debt: make a monthly car payment instead of paying cash and put that $15,000 into the market. Debt can be smart if leveraged correctly. Don't be afraid of it. - Rachel Carpenter, Intrinio 3. Take advantage of employer-matched 401(k) programs. If your employer matches a certain percentage of your contribution to a 401(k) plan, maximize the matching contribution. This is essentially free money, and due to compounding interest, early 401(k) contributions are the most valuable in the long-term. Even if it reduces your disposable income to the point where your lifestyle is being cramped a bit, this strategy will pay off in the end. - Paul Paradis, Sezzle 4. Get second opinions from experts. The biggest mistake I see is not getting a second opinion. I'm not talking about asking a friend's opinion. When I say this, I mean talking to an expert -- someone who can offer sage wisdom, giving a consistent, unemotional take on whatever you're about to invest in. Having that second set of eyes on investment choices can often prevent us from making major mistakes. - Justin Goodbread, Heritage Investors Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 5. Be honest with yourself. There's an old saying: "Denial isn't just a river in Egypt." Successful investing requires setting a goal, assessing your progress, and having an honest conversation with yourself about saving versus spending (deferred gratification). Investment mistakes get made when investors deny the reality of their situations too long, then attempt to fix the situation by chasing unsuitable investments. - Erik Christman, Oxford Financial Partners
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https://www.forbes.com/sites/forbesfinancecouncil/2017/08/15/investing-in-uncertain-times-what-you-need-to-know/?sh=5c1081d57c7c
Investing In Uncertain Times: What You Need To Know
Investing In Uncertain Times: What You Need To Know Sometimes, when you catch up on the latest news, you worry. Nations war, oil prices fluctuate, and state leaders weigh measures that could seriously impact businesses. All these things can leave investors feeling nervous. Have they set their investments into the right stocks or mutual funds? Do they have enough cash set aside for emergencies or to take advantage of falling prices? In other words, are they prepared? Or does market volatility amid political uncertainties mean that investors need to completely rethink their long-term strategies? To help guide worried investors, members from the Forbes Finance Council offer this advice: Forbes Finance Council members advise investors to be cautious -- but not too cautious -- when... [+] investing in today's market. All photos courtesy of Forbes Councils members. 1. Avoid the noise. For a century now, we've had a stock market, and it's never yielded anything but uncertainty. So, to a client expressing this concern to me, I'd say, "Avoid the noise." If you're investing and have a financial plan in place with allocations that align with your long-term goals, the rest out. Don't let the naysayers turn your focus to fear and greed. Keep your eyes on the prize. - Justin Goodbread, Heritage Investors 2. Remember, the tail is not wagging the dog. If we learn one thing from looking in the rear view mirror to the past, it is that market equilibrium eventually washes out the noise of political rhetoric. Politicians and governments follow the markets, not the other way around. Focus your attention on the speed at which you are reacting to real-time information, and quickly come to the realization that the tail is not wagging the dog. - Eric Solis, MovoCash, Inc. 3. Patience pays off. If you're investing to reach long-term goals, temporary market and political volatility shouldn't concern you. If you look back historically, you'll see that the markets have not only always recovered from political turmoil -- they've also gone on to reach new highs. People who react emotionally to political news end up selling while the market is already dropping and missing the recovery. - Elle Kaplan, LexION Capital 4. Have a plan for the worst. The market is expensive, market volatility has always been here, and political uncertainty is nothing new. If you're concerned, that means you don't have a plan for the worst -- and the worst will happen. A portion of your portfolio should be set aside to satisfy income needs regardless of market volatility over a five- to 10-year period and take advantage of opportunities when they arise. - Casey Weade, Howard Bailey Financial, Inc. 5. Change your focus. Political uncertainty is out of your hands. Alas, don’t dwell on it! Instead, be sure to protect your assets through conscious, smart investment decisions and save, save, save. - Ibrahim AlHusseini, The Husseini Group 6. Volatility and uncertainty often bring innovation. One thing you see historically is that periods of uncertainty precede and drive innovation. This was true during the emergence of the Renaissance and industrialization, for instance. A fascinating, recent case study of this is the adoption of blockchain in Argentina. In the midst of massive deflation, bitcoin -- an alternative financial mechanism that didn’t exist a decade ago -- is growing 10% per week. - Jeremy Almond, PayStand 7. Be honest about what you see coming. How concerned are you about the financial market and political world? A little bit? Somewhat? A lot? Not at all? How do you see it impacting your clients? Be honest about what you see coming. For instance, you might say, “things might be interesting in the next few years, but give it some time and it will stabilize and improve again.” - Ismael Wrixen, FE International 8. Buy a home. Buying a home forces you to invest by imposing the rigor in making monthly payments, effectively building equity. Traditionally, home ownership through the buildup of equity has been a way to increase wealth. While housing prices may fluctuate over time, over the long term, real estate is one of the least risky investments when markets are uncertain. - Nick Stamos, Sindeo 9. Stay focused on the long term. Warren Buffet said it best: “If you mix your politics with your investment decisions, you’re making a big mistake.” We consistently remind our clients to control what we can control. Keep your portfolio well diversified and in line with your risk tolerance, and keep fees low by investing in low-cost mutual funds. Stay focused on the long run and try not to let the short-term noise distract you. - Stacy Francis, Francis Financial, Inc. 10. Volatility isn't the enemy. Market volatility may seem scary, but it can also present excellent trading opportunities for short-term traders, especially in the currency markets. If you're in the market for the long term, don't let short-term volatility scare you. And if you're trading for immediate profit taking, don't be afraid to capitalize on sudden volatility; there are profitable trades to be found. - Sari Holtz, DailyForex Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 11. Skip to page 13. Skip the sensational front-page news and focus on page 13. Much of what you read on page 1 is already being fully priced into the market, whereas no one is talking about page 13. - Seth Allen, Pinkowski-Allen Financial Group 12. Remember the five most important words in investing. Remember the five most important words in investing: “It's never different this time.” Americans are whipped into a continual frenzy by the media. Everything is made out to be a major crisis. If the market is down, then surely it will continue to plummet. If the market is up, then a crash must be just around the corner. Despite it all, humans today enjoy the greatest period of prosperity the world has ever seen. Make a plan, and stay the course. - Erik Christman, Oxford Financial Partners
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https://www.forbes.com/sites/forbesfinancecouncil/2017/08/23/seven-tips-to-protect-investors-during-a-stock-merger-and-acquisition-deal/
Seven Tips To Protect Investors During A Stock Merger And Acquisition Deal
Seven Tips To Protect Investors During A Stock Merger And Acquisition Deal You or your client have invested in stock and now there's word of a merger and acquisition. Naturally, concern sets in -- and for good reason. Investopedia estimates that only 50% of mergers and acquisitions have a chance of succeeding. This 50:50 success rate can create some panic as you try to decide what the next, most logical move should be to protect your interests. Instead of crawling the walls with panic, consider this advice from leading members of the Forbes Finance Council: Industry pros weigh in on their best tips for dealing with a stock M&A. Photos courtesy of Forbes Finance Council members 1. Check Their Website For Info It would benefit you to go to the company website and spend time listening to the latest executive conference call regarding the acquisition. Remember, you don't own a stock, you own a piece of a business. If you prefer to invest this way, then make sure you understand the new business model. The inside (legal) information on the latest calls provides a basis for deciding if you remain an owner. - Darryl Lyons, PAX Financial Group LLC 2. Consider Arbitrage There are different arbitrage strategies depending on your goals. You could have a long only strategy, or you could try a long and short strategy. This can help you profit from the M&A deal. - Ismael Wrixen, FE International 3. Avoid Knee-Jerk Reactions If you're invested in a well-diversified portfolio, your next step should probably be no step. By the time you read about an M&A in the news, larger and quicker investors have already adjusted for the price. And when your stock is already rising or falling, you'll probably buy more when it's at a temporary high, or sell at a low. Knee-jerk reactivity to the news isn't a smart long-term strategy. - Elle Kaplan, LexION Capital Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 4. Do Your Research When the deal is announced, it’s important for the investor to understand the buyout circumstances as much possible. The investor should get to know the nature of the merger, key information concerning the other company involved, the types of benefits that shareholders are receiving, which company is in control of the deal and any other relevant financial and non-financial considerations. - Ibrahim AlHusseini, The Husseini Group 5. Check Your Risk Tolerance And Allocations When something out of the ordinary comes up, check your risk tolerance and allocation. If everything is good there, then you can react with a buy, hold or sell. Sometimes there's a run-up and it's a great time to cash in. However, sometimes there's a fall. Either way, if your portfolio is in balance with your risk tolerance, you'll be better equipped to make a decision that's right for you. - Justin Goodbread, Heritage Investors 6. Double-Check The Consideration Form Depending on the form of consideration, you'll have to make a few decisions. If the deal is a stock deal, then you'll have to decide whether or not you want the own the shares of the acquirer. This requires you to study up on the acquirer, understand its story and fundamentals, trading, etc. If the deal is a cash deal, be sure to check any tax consequences of receiving cash for your shares. - Jason Lee, DailyPay 7. Stick With The Fundamentals It's important to consider which side of the M&A deal your stock falls in. If you own stock in a company that's being acquired, I would advise you to sell it -- the stock you own will rarely go up in price beyond what the acquiring company paid for it. So take your gains and reinvest. - Mahati Mukkamala, Klaviyo
f4d88f7d7b5101083f38913584f4e685
https://www.forbes.com/sites/forbesfinancecouncil/2017/09/27/seven-business-benefits-of-having-remote-employees/
Seven Business Benefits Of Having Remote Employees
Seven Business Benefits Of Having Remote Employees Working remotely is becoming a mainstay in U.S. workforces. With 43% of Americans saying they spend some time working remotely, according to a report by The New York Times, it is important to make sure your remote teams are effective in their abilities to contribute to your business’ bottom line. Setting up remote employees for success right out of the gate can help ensure your business sees financial gains from this arrangement. We asked seven members of Forbes Finance Council for the main benefits of working with telecommuting employees so as to ensure financial success. Here is what they had to say: These Forbes Finance Council members explain how remote workers the benefit a business. All photos courtesy of Forbes Councils members. 1. Lower Costs And Improved Productivity The most obvious advantage to a company’s bottom line is the savings in office-related expenses. But, another hidden gem is increased productivity when employees are no longer on long commutes. If you hire the right people, you will actually get a better yield on time spent. - Lee Reams, ClientWhys, Inc. 2. A Leaner, Smarter Development Team While hiring and managing remote developers can be challenging, there is definitely a benefit to the company. You're able to run a more cost-efficient product development team if you do things right. You'll also find that a well-run international team brings in new perspectives and can accomplish time-sensitive tasks on a 24/7 basis, helping you get things done at all hours. - Charlie Youakim, Sezzle 3. A Higher Number Of Part-Time Workers While there will always be the need for full-time, on-site staff, the popularity of remote work might allow you to also use part-timers and save thousands in the process. People are much more likely to consider part-time work if they don't have to come in and can have flexibility, and not every role or company need requires a full-time employee. You also won't limit your talent pool by geography. - Elle Kaplan, LexION Capital 4. Better Alignment With Employees Companies are being forced to address production over presence as the ultimate indicator of value in the remote world. That is forcing people to rethink their traditional compensation plans. As these compensation plans better align employees with the company, the overall financial picture improves. People are incentivized to the right behaviors, and both the company and employee benefit. - Matthew May, Acuity 5. Less Overhead Distributed teams enjoy certain advantages, especially reduced fixed costs. From an employee’s perspective, there is no transportation cost and no investment of time for transportation. As for the employers, they save major overhead as a result of not having to rent office space for that employee. - Ibrahim AlHusseini, The Husseini Group Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 6. Increased Cash Flow Remote workers often mean more cash flow and greater productivity, increasing a company's bottom line. Allowing people to work remotely often cuts overhead by reducing expenses, such as a larger office space. Greater productivity, which again increases the bottom line, is typically achieved because employees have the freedom to work at their own pace, knowing they have a job to complete. - Justin Goodbread, Heritage Investors 7. Access To A Larger Talent Pool From my experience, remote team members have allowed my company to recruit from a larger talent pool worldwide versus being limited to the geographic location where our offices are located. From an employer's perspective, by going the contractor route (versus just remote), you pay for only the work being done, instead of a full payroll, while allowing flexibility and freedom within the position. - Shane Hurley, RedFynn Technologies
411e3ec2b01a5bf170f7629e34ca83d7
https://www.forbes.com/sites/forbesfinancecouncil/2017/10/03/how-to-win-the-lottery-in-retirement/
How To Win The Lottery In Retirement
How To Win The Lottery In Retirement Shutterstock Recently I read about the Powerball reaching $700M. For almost anyone, that is a ton of money. I didn’t believe in my chances enough to stop at the local mini-mart to purchase a ticket, but I did drift into thought about what I would do if I ever had millions of dollars. I thought about the home I would purchase on the Chesapeake Bay, the remodel I would complete on our kitchen and the basic peace of mind that would come from not having to ever worry about money again. I considered charities I would donate to and how I would surprise my sister with a red Porsche. My sister raised two boys on her own, and when she was growing up, she always wanted a red Porsche. So, I’d get her one. By the time my commute and, subsequently, my daydreaming was over, I still had several hundred million left over. Through the course of giving retirement classes at federal government agencies, through our weekly retirement radio show and frequent television appearances, I have considered questions from hundreds of near and early retirees. Do I have enough money to retire? How should I invest my 401(k) or TSP in retirement? When is the best time to take social security? Yet, most of the questions do not hit on the essence of what a super majority of retirees wants. They want to win the lottery in retirement. Let me explain. The advantage of winning the lottery is the ability to establish an endless quality of life without financial worry. Winning the lottery, for most people, is not about acquiring material possessions -- it’s about peace of mind. Most near retirees consider the idea of retirement for several years. They think about a more relaxing lifestyle, spending time with family and friends and having the freedom to enjoy their lives. It’s really no different than my lottery daydreaming. Most near retirees I have met believe their retirement dreams are out of reach. Some simply do not have the knowledge and education necessary to turn their front porch conversations into reality. Successful professionals spend several decades saving and accumulating money but are not equipped on how to spend it effectively. The prevalence of uncertainty for near and early retirees should not surprise you, considering that a majority of financial advice is centered around accumulation planning. According to Dr. Michael Zwecher's book, Retirement Portfolios: Theory, Construction and Management, nearly 97% of financial advice given is focused on accumulation. The key to winning the lottery in retirement, however, is to have a distribution plan. This should be a plan for responsibly spending the money you've accumulated during your working life. The idea is to be able to consider your desired outcomes for retirement (i.e., quality of life, vacations, time with family, etc.) and then connect your assets to those outcomes. With a successful distribution plan, retirees can spend more money doing the things they enjoy instead of tracking budgets and watching the market. Retirees can be free to enjoy retirement no longer worrying about their financial decisions. That's winning the lottery in retirement. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
bb73288ed273ba7c4c0c4f5a669fdc80
https://www.forbes.com/sites/forbesfinancecouncil/2017/10/06/four-things-to-consider-when-planning-your-exit/
Four Things To Consider When Planning Your Exit
Four Things To Consider When Planning Your Exit Selling a business is never an effortless process. When it comes time to sell, it is important to have a succession plan in mind. There are many considerations when planning your exit strategy, and, at first, they might be difficult to think about. Planning your future and the future of your business can often be intimidating, but by taking the right steps, the transition can be smooth and exciting. Diligence is one of the most important aspects of succession planning, so it is crucial to start planning immediately once you decide that it is time to move forward and sell your business. Shutterstock Here are four things to consider when developing your exit plan: 1. Taxes If you’re thinking about selling your business, making it a point to discuss your exit plans with tax and estate planners is essential. Setting up a meeting with an accountant who is familiar with succession and transaction planning can help you develop a plan and move you in the right direction. Make sure to discuss your estate plans and tax situation as soon as possible. Producing at least a few years of accurate tax returns that show maximum profitability can help in preparing your succession plan. The longer you wait, the more difficult it can be to assemble tax strategies and mitigation. 2. Retirement There are a variety of reasons why business owners want to sell their businesses. It could be because they are looking for new opportunities or that they are simply burnt out. One of the most common reasons for selling a business, however, is retirement. Transitioning into retirement can be difficult for some business owners, especially for those who have built their businesses from the ground up. If this is you, you'll want to protect the business that you have nurtured and sustained while also feeling secure financially. First, make sure that you have enough to live on during retirement. Then consider working with an M&A professional to help plan your succession. Identifying an ideal successor is necessary as soon as you start to think about retiring. A business broker can also assist you in finding a buyer you are comfortable with. Knowing that the business you started will be well taken care of will give you peace of mind in letting go. 3. Emotions The emotional aspects of succession and exit strategy planning go hand-in-hand with all the other components of selling your business. Disengaging yourself from a business you have spent decades building and growing is never easy. Coping with the decision to sell and pass on your business to a successor takes time and effort. Realizing that your business will be in the hands of a new owner can be stressful and leave you with insecurities, but finding the right buyer can put you at ease. Again, dealing with these uncertainties starts with having a well-executed plan. The more prepared you are for selling your business, the easier it will be. 4. What You’ll Do After The Sale The feelings associated with selling your business can be eased by planning what you will do after the sale. Will you retire and find new hobbies? Will you find new sources of income or invest in other companies? Finding something new to do with excess free time can be extremely difficult for previous business owners. Whether it be taking on new opportunities, traveling or investing in other businesses, it is necessary to consider your plans ahead of time. If you’re thinking about selling your business, establishing a succession plan will ensure a smooth transition. The benefits of working with an intermediary can also be significant, as experienced business brokers can help you through the entire process. They can find ways to maximize the value you of your business and help you sell for the best price possible, while also taking some of the guesswork out of this emotional transition. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
53750596379a2cbb3bab31f040834f1b
https://www.forbes.com/sites/forbesfinancecouncil/2017/10/19/on-building-a-faster-horse-design-thinking-for-disruption/
On Building A Faster Horse: Design Thinking For Disruption
On Building A Faster Horse: Design Thinking For Disruption There is a famous quote (somewhat dubiously) attributed to Henry Ford: “If I had asked people what they wanted, they would have said faster horses.” Vintage car enthusiasts drive different editions of the Ford Model T car on a road near Bad Teinach-Zavelstein close to Tuebingen, southern Germany, during a Ford Model T vintage car meeting on August 5, 2017. / AFP PHOTO / dpa / Christoph Schmidt / Germany OUT (Photo credit should read CHRISTOPH SCHMIDT/AFP/Getty Images) Customers can easily describe a problem they’re having -- in this case, wanting to get somewhere faster -- but not the best solution. Identifying the best answer to the problem is the critical challenge for a disruptor and is where design thinking can help bridge the gap between company and customer. There are many rewards to this approach. You end up with a product that provides customers with something they want and need, gain their trust and loyalty and, in turn, achieve higher conversion rates and more lifetime value. On the other hand, design thinking poses a unique set of challenges and risks. Following are a few tips for mastering this approach. Understand that transformative innovation is inherently risky. Using design thinking to build products isn’t a widespread strategy because it’s risky. It is iterative in nature, it takes longer to build things, and failure is often inherent to the process. As entrepreneur John Kolko wrote: “A design culture is nurturing. It doesn’t encourage failure, but the iterative nature of the design process recognizes that it’s rare to get things right the first time." He adds that "transformative innovation is inherently risky.” In other words, be prepared for things to take a long time. Be prepared to start over. This is all part of the process. You talk to your customers, you get to know their needs, and then you build a product that tries to solve those needs. Then you test it, and maybe you rebuild it -- and rebuild it again. Research and development isn’t cheap. Be willing to invest the time and money it takes to get this process right. Go slow to go fast. For every proposed product design, map it out -- with literal pen and paper -- and get immediate customer feedback. Ask people how it makes them feel and if it seems like a good solution to their problems. Ask them how to make it better. Low fidelity tests are the darling of design thinking, and you have to constantly try out and toss new ideas that don’t work for customers. It takes discipline to say, “Okay, engineers. We’re not going to start building this yet because we’ve got to draw pictures first and show it to more people.” Getting this right is more important than just pushing out a product. Invest time early on in the iterative process so that once you are ready to develop a product, it is full speed ahead. Keep the customer at the center of every decision. The most significant way design thinking diverges from the old-world models is that the customer is at the center of every decision. It is opposite of the top-down “build it and they will come” approach. Varo is angling to reimagine the banking experience, starting from scratch. So we had to understand the problems that Americans have with banking today. We discovered, quickly and unsurprisingly, that there are a lot of them. People want fewer fees, of course. But as we dug deeper into customers’ financial habits, we learned that millions of young Americans are hands-off with their money and budget by balance, checking their bank balances at least once a week instead of spending time making spreadsheets or balancing checkbooks. We identified “cash traps” -- a term we use to describe unanticipated bills or expenses that force customers to dip into savings or credit -- and saw that, despite working hard and making a solid income, many people are having a difficult time saving. We concluded that there’s a huge unmet need for customers who don't want to actively manage their money but still want to get ahead. Once we had that information -- and only then -- we were able to start building them the “car” they needed, to follow the Ford analogy. The point is: don’t make guesses about what your customers want or need. Don’t introduce a service or product unless it has been reverse-engineered to solve a specific problem. Involve the whole company. Design thinking isn’t a one-and-done thing. Build a culture of customer focus and inquisitiveness that is fundamental to the company. The process involves each employee. Get everyone to constantly think about what the customer wants and needs. How do they help their customers achieve better outcomes? How do they help customers achieve what’s important to them? These concerns shouldn’t be siloed with the product people -- they should be collective, institutional knowledge that anyone can access at any time to make the thousands of micro decisions that happen every day, from engineers and people writing emails to those onboarding new employees. This pays dividends. While design thinking demands more time investment up front, the benefits that companies stand to gain from adopting this approach are critical to innovation and long-term success. As India Persson put it in a recent article: “The core business focus has moved from operational excellence to innovation. The customer is now at the center of the pyramid, around which processes and products revolve, all tied together with a common thread of design.” Design thinking results in products that customers love and that gain their long-term trust and loyalty. When companies take this approach to heart, things change -- industries are disrupted and life improves for millions of people. For companies and industries that lose sight of their customers -- well, eventual irrelevance is guaranteed. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
428a05d9e33b9a0459bae61f35292f38
https://www.forbes.com/sites/forbesfinancecouncil/2017/11/09/does-gentrification-help-or-harm-small-businesses/?sh=a8876bea7c0b
Does Gentrification Help Or Harm Small Businesses?
Does Gentrification Help Or Harm Small Businesses? Shutterstock Gentrification is all about renovating neighborhoods so that people who are affluent will want to live in them. At first glance, gentrification may seem like a terrible thing for small businesses. We might imagine a scenario whereby a neighborhood gets upgraded and rental rates for small businesses in that area go through the roof, making it impossible for small business owners to turn a profit and continue doing business in the neighborhood. Despite our gut feelings that gentrification must be harmful to small businesses, the truth about the impact of gentrification on small businesses is actually quite complicated. Clearly, a lot of variables are at play. A study performed by Rachel Meltzer of New York's Milano School of International Affairs at The New School looked at the way that gentrification impacted small businesses in many New York City neighborhoods between 1990 and 2011. A study recap showed that the majority of small businesses continued to operate after gentrification was up and running. This pivotal study showed that, in general, small businesses (from bodegas to restaurants to doctor's offices) are not displaced at levels higher than that seen in non-gentrified neighborhoods. However, in particular regions, displacement is a strong risk. So, for the most part, gentrification doesn't make a big difference unless your small business is in the type of area where there is incredible demand for space at any cost. One example of this type of neighborhood, where the value of retail space has become astronomical after gentrification, is New York City's Lower East Side. The Lower East Side was the home of the 3,300 square foot rock/punk venue CBGB for 30 years. In 2006, CBGB closed its doors because rent had been jacked up to an astounding $40,000 per month. The venue has now been turned into a high-end fashion boutique, which displays the creations of acclaimed menswear designer, John Varvatos. Varvatos has kept some elements of CBGB's intact in order to honor the venue's heritage. What should small business owners do? Small business owners may benefit from gentrification, as people who come in and pay higher prices for rental apartments, condos or other types of housing often have plenty of disposable income to spend at small businesses. High-earning residents of gentrified communities tend to enjoy shopping local, because they know that it's socially responsible. These residents typically have a lot of education and realize that community shops need their support. The downside of gentrification is that rents at small businesses may be jacked up. If you have to pay a lot more to rent your retail space, does the extra money that residents may spend really help you to turn a profit? This is the quandary that small business owners face when gentrification enters the picture. There are some smart ways to ensure that your business is able to stay strong if and when your neighborhood gets an upgrade designed to make it a fancier place. Be realistic: Whether you're running a convenience store or a dry cleaning service, you know that there's only so high that you can raise your prices. You may be able to put them up a little or even a moderate amount, but there is a limit. If your rent is rising due to gentrification, crunch the numbers and see if your business can make it with the higher rate. In general, dramatically raising prices is not recommended for any small business trying to stick it out in a gentrified neighborhood, especially for items that have commonly-known average prices (such as a gallon of milk or dry cleaning service for a single dress shirt). Some small business owners do decide to leave for cheaper areas. Every business is different. For example, it's not uncommon for some restaurants to have two or three addresses in the same city over the years. These moves are sometimes responses to gentrification. There is only so much rent a business can pay and remain profitable. No matter what kind of business you're running, be on top of your numbers and keep a close eye on what happens with your profits when your rent is jacked up and affluent residents start spending money at your business. Maintain the uniqueness of your business: Sometimes, business owners don't want to leave gentrified areas. And, as the study we discussed earlier showed, they often don't have to leave. The more charming and original your business is (we're talking about authenticity that people can feel), the greater the likelihood that gentrification will work to your company's financial advantage. For example, if you're the owner of a butcher shop that has been around for decades, be sure to play up the old-school charm of your store. Quite often, small businesses that thrive after gentrification do so because they don't compromise. In other words, they stay true to what they've always been as businesses. They don't try to cater to residents who are more affluent. Instead, they continue to provide the same services as always, for the same prices, with the same decor and customer service philosophies. These businesses survive via their originality and authenticity. When rents rise, they tend to get more business from wealthier new customers and this keeps them afloat. It may take time to see how gentrification is going to affect your small business. Stay organized, deliver the best products and services with a smile, and keep an eye on your numbers -- and your competition. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
e29416231e45a36dca113c6ff2f77c82
https://www.forbes.com/sites/forbesfinancecouncil/2017/11/29/learn-to-invest-like-a-casino-rather-than-a-gambler/
Learn To Invest Like A Casino Rather Than A Gambler
Learn To Invest Like A Casino Rather Than A Gambler The way that markets work can be explained using the analogy of sports betting. In Las Vegas, when you bet on a team, you cannot bet $100 to get $100 -- a straight up bet on who will win the game. Instead, the casino will either pay out at a different ratio or offer a bet on the point spread. Shutterstock The point spread basically means that the favored team must win by more than that spread for the bet to pay out. If you are betting on an NFL football game and the point spread is 3.5 points, you would lose that bet if the favored team wins but only by a three-point field goal. Think of it like playing a game of basketball with a younger sibling and spotting them a three-point handicap to make the game more even. If set fairly, that handicap would give you both an equal opportunity to win. Relating this back to the markets, stock prices function similarly to a point spread. At its essence, a stock’s price is the price at which a buyer and a seller agree to transact because the buyer believes a company will do better than everyone else’s current expectations and the seller thinks it will do worse. So, like our sports analogy, stock market participants cannot bet on whether the underlying company will or won’t be successful. Instead, when you invest in a stock, you are betting on whether the company will be more successful or less successful than people think. Apple was among the most widely traded securities in 2016, according to MarketWatch. When choosing to invest $10,000 in Apple versus $10,000 in Blackberry, you should think in terms of spreads. Apple’s stock price will not do better if the company simply does better than Blackberry because that is expected and built into its higher stock price. If Apple delivers on their higher expectations and Blackberry delivers on their lower expectations, then both the blue chip and the underdog should deliver comparable stock returns. More often, companies will either exceed or fall short of expectations, causing the price to rise or fall. The constant fluctuation of stock prices is a direct reflection of the changes in expectations caused by news about the company, its competitors, its customers and the greater business environment. Some of this news gets built into the expectations of each person trading the stock, just like the weather, player injuries and statistics get analyzed by professional sports gamblers in Las Vegas. However, in Vegas, bets occur at a single point in time, while stocks increase in value (a.k.a. appreciate) when held over time. To illustrate why stocks appreciate over time, think of what happens when a business builds a table. They use $10 of raw wood, an hour of human labor that may cost $15 and miscellaneous other expenses of $5. They then sell the table for $100 and the next time can build two tables -- and then the next time four tables. That compounding productivity is why stocks grow. Stock owners do not need to win a bet, but rather they accrue the benefit of that company's production. This distinction is critical and is why we call it stock market investing rather than betting. A casino will not take a $1 billion bet on a single NFL game, because they do not know who will win, and taking the bet might destroy the company. The opposite is also true: They would love to take a million $1,000 bets with half of those bets on either side. The casino also takes a percentage rake on every bet, so it knows it will win. Similarly, as investors, we should spread our investments over thousands of companies, because in aggregate, we know stocks will accrue the compounding productivity of companies. Any one company that fails to deliver will have no noticeable impact on your portfolio if you own shares of the over 10,000 publicly traded companies worldwide. In short, you should not think of yourself as a gambler within your investment portfolio. You should act like the casino instead. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
9b9f9d392cc8200a20b87daeeee75982
https://www.forbes.com/sites/forbesfinancecouncil/2018/01/05/budgets-dont-work-heres-how-businesses-can-do-it-differently/
Budgets Don't Work: Here's How Businesses Can Do It Differently
Budgets Don't Work: Here's How Businesses Can Do It Differently Shutterstock Budgets are traditionally woven into the fabric of most businesses. Everyone uses them. Banks require them. Employees expect them. They are treated as something revered and to be adhered to without question. But, in reality, budgets are terribly ineffective management tools. Dwight Eisenhower once said, “Plans are worthless, but planning is everything.” He was referring to war, but the concept applies to business and budgets in particular. When you create a budget, you can do your best to plan for the unexpected, but the very definition of “unexpected” dictates things never happen the way you think they will. Budgets are inherently inflexible. They’re usually based, like last year’s performance, on stale information and assumptions about things that are going to happen 12 months or more in the future. Budgets are wrong the minute they’re completed. However, many companies continue to stick to the budget as their management tool no matter the circumstances or, even worse, constantly make changes to the budget to equal actual performance. Using the budget to manage a business results in both leadership and employees not thinking critically about spending or revenue opportunities. Two common scenarios are: 1. Employees make poor business decisions to avoid going over their expense budget (or reach their revenue budget). 2. They spend all the money in their expense budget, whether it’s needed or not, so they don’t lose it next year. More and more businesses are moving toward operating without a long-term budget and working with 13-week cash flows instead. Kristen McAlister, President of Cerius Interim Executive Solutions, says that 13-week cash flows are an excellent alternative to a traditional budget. “There are a number of situations where the revenues are so erratic that doing a budget and trying to benchmark against it is seen as a waste of time when you could be spending time on the business,” says McAlister. “Thirteen-week cash flows are easier to keep updated to the ebbs and flows of business and provide a better picture of reality to make business decisions from.” That’s why, when I began my tenure as CFO of GL group, we made the decision to abandon traditional budgets. We believe sound business decisions should be based on what’s best for our employees, our customers, our operations and whether the decision will help us in the future -- not on a budget. That doesn’t mean we allow a spending free-for-all or that we don’t pay attention to our financials. It’s the exact opposite, actually. We spend a lot of time and effort analyzing each financial decision we make. We navigate the budgeting process not by focusing on the goal of accurately predicting the future with a finished masterpiece called “The Budget” but by analyzing and discussing opportunities to improve the products and support we provide to our customers, to perform better operationally and to enhance the lives of our employees. We focus on the ever important “planning,” as Eisenhower suggested -- and less on the actual plan. If you’re interested in moving your company away from traditional budgets, you must start by looking at the planning process differently and making every financial decision a conversation. Create two months' worth of forecasts. It’s much more accurate to make predictions two months out. Base those forecasts on items similar to an annual budget, such as contractual obligations, projected expenses and sales estimates, but move them closer to the activity. Not only will you be able to make an educated guess versus just making a guess, but you will be continually in the planning process. You can make changes in the moment by practicing open-book management and involving your employees in the decision-making process. Do the hard work. Your teams should analyze every one of their financial decisions. Always do your homework, encouraging everyone from the CEO on down to think critically about every one of their expenditures or revenue opportunities. No one should manage based on whether or not there are dollars left in the budget for expenditures or if you need to hit a revenue goal. Make it a conversation. There isn’t always a clear-cut, indisputable ROI for every situation, so when making financial decisions, you should ask a set of questions that help you make the decision into a conversation. Then, you’ll know you’re doing the right thing, even if it costs more. • Does this align with our culture and core values? • Is there another solution that provides more value to our customers, our vendors or our employees, even if it is more expensive for our company? • Is there something that is less expensive that provides the same value? • Is the timing right to do this now? • Do we really need to make this expenditure at all? • What is the worst that could happen? This question was coined by our founder, Sandy Jaffe, and it is still used today in all of our business decisions. Replacing the budget with a dynamic planning process for sound financial decision making allows you to affect the outcome of the game while the game is being played. Consequently, forecasts are much more beneficial to everyone, from the CFO to managers, leadership and employees. You’ll be able to achieve your most important goals and objectives as opportunities arise -- not just when they happen to fit budget numbers. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
e1c37ce96389afb32e16c5cd01245a24
https://www.forbes.com/sites/forbesfinancecouncil/2018/01/22/why-minorities-have-so-much-trouble-accessing-small-business-loans/
Why Minorities Have So Much Trouble Accessing Small Business Loans
Why Minorities Have So Much Trouble Accessing Small Business Loans One of the many long-standing frustrations for minorities is that their vital role in the U.S. economy hasn't made it much easier for them to obtain the means for success. Between 2007 and 2017, minority-owned small businesses grew by 79%, about 10 times faster than the overall growth rate for U.S. small businesses during the same time frame. This puts the number of minority-owned businesses at approximately 11.1 million, which isn’t much of a surprise, considering the U.S. is expected to become a minority-majority country sometime between 2040 and 2050. But, despite leading a significant portion of the nation's businesses, minority-owned firms are still having a much harder time accessing small business loans than their white counterparts. Minority-owned firms are much less likely to be approved for small business loans than white-owned firms. And, even if they do get approved, minority-owned firms are more likely to receive lower amounts and higher interest rates. According to findings from the U.S. Department of Commerce Minority Business Development Agency, these discrepancies have made minority business owners more likely to not apply for small business loans, usually out of fear of rejection. Shutterstock Here are a few reasons why it’s particularly difficult for minority business owners to obtain small business funding: 1. Lower Net Worth It seems that the most common reason minority-owned firms are rejected for small business loans is a lower net worth and/or lack of assets. Wealth levels for Latinos and African-Americans are reportedly 11 to 16 times lower than for whites. Data recorded in 2016 found that white business owners start their businesses with an average of $106,720 in working capital compared to African-American-owned businesses, which are started with an average of just $35,205. Banks are traditionally biased against applicants with less money to spare, partially because such applicants probably cannot offer collateral. The lower net worth of minority business owners suggests that they are less likely to own homes or other expensive assets the bank can sell if the applicant cannot pay off the debt. A lack of collateral or higher net worth often makes the bank so worried about being paid back that it is only willing to distribute small business loans that must be paid back as quickly as possible and are therefore insufficient for fostering significant growth. 2. Not The Most Optimal Location Another major factor in the approval rating of small business loans for minorities is the location of the business in question. A great deal of minority-owned businesses are located in poorer, urbanized communities. Research from the Small Business Administration suggests that the location of a business plays a bigger role in the approval of a loan than the ethnicity of the business owner. Poorer communities need small businesses to bolster their economies, but big banks do not typically craft their business funding programs with long-term goals in mind. 3. Poor Or Little Credit History The average minority small business owner has a credit score of about 707 -- 15 points lower than the average small business owner in the U.S. A nearly perfect credit score is basically mandatory for the most advantageous bank loans, even though there are numerous plausible explanations as to why an otherwise responsible and dedicated business owner would have poor or very little credit history. Still, credit score is arguably just as important as the business’s performance record when it comes to securing a bank loan. Thankfully in times like this, private funding companies have gained traction by mining data and looking not only at credit but also looking at time in business, industry, location, cash flow, both daily and monthly ending bank balances in the business accounts, number of staff, time left on lease, etc. By looking at more than just credit, these models have allowed minority business owners to access capital. Exploring Other Options It’s clear that banks might not be the best option for minority-owned businesses looking for substantial funding. Fortunately, the business lending industry has evolved dramatically over the past decade or so, and small business loans are no longer strictly limited to wealthy white men with flawless credit. Several alternative business financing companies, for example, do not discriminate based on credit history, net worth or the business’s size. Most of their loans are 100% unsecured, meaning they do not require collateral or a personal guarantee. They lend to virtually every industry, including those that are stereotyped as risky, like retail or hospitality or smaller businesses like laundromats or convenience stores. Some alternative lenders even offer programs that are tailored for businesses with less cash on hand and lack the stringent, non-negotiable guidelines of traditional bank loans. These funding companies have allowed business owners to build up their track record and help to fix their perceived problems so that they may one day qualify for the traditional financing they desire. Two Businesses, One Goal While almost all alternative business lenders can boast speedy approvals and loose qualifications, only a few can offer what is arguably the biggest advantage of working with these companies: small business loans that put the borrower, not the lender, first. Bank loans appear to have been designed with the intent to draw a profit, whereas certain alternative business lenders are more focused on creating loans that are easy to pay off and capable of covering crucial investments. They are aware that their success depends on the success of their clients, so they focus on providing the tools to help them grow over time. Minority business owners would be wise to explore this option if they’ve been rejected by banks and don’t feel like endangering the health of their businesses with loans that might do more harm than good. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
417cb2989559cef38947fa1bf23de9b3
https://www.forbes.com/sites/forbesfinancecouncil/2018/01/26/dirty-little-secret-the-merchant-services-industry/
Dirty Little Secret: The Merchant Services Industry
Dirty Little Secret: The Merchant Services Industry The average person has no idea how many different entities are involved for businesses to have the ability to accept credit and debit cards. In a typical transaction, as many as seven entities are involved in a single transaction, and it all happens in seconds or less. Shutterstock Here is a quick example of the process for a typical transaction: 1. Cardholder 2. Business 3. ISO (Independent Sales Organization) 4. Merchant Processor (aka, Merchant Acquirer) 5. Settlement bank (aka, sponsor bank) 6. Issuing bank (bank that provided the card to the cardholder) 7. Card network (e.g., Visa, MasterCard) Once a card is swiped, the business’ point-of-sale device queries the merchant processor. The merchant processor queries the customer’s card issuer to confirm the customer has credit available to complete the purchase via the network the customer’s card issuing bank utilizes (such as Visa or MasterCard). The issuing bank then sends back an approval -- or denial -- through the credit card network to the merchant processor. The merchant processor then notifies the business electronically, via their POS device, if the purchase has been approved or declined. From the perspective of a business owner, you don’t need to become an expert on the payment processing ecosystem. What is important to understand is what rates, fees and charges are hard costs you have to pay and which are negotiable. Fortunately, this is actually very simple when you understand the basics of the system. Interchange is the universal cost any business must pay in order to accept card payments. Interchange is set by the card networks, and interchange rates are always made public and can be found online. The good news is virtually every business pays the same interchange. In fact, there are only two ways to get a discount: 1. Process over 82 million transactions and over $5 billion in volume annually. 2. Create a class action lawsuit against Visa and MasterCard for excessive fees, like Walmart. Now that the thought of negotiating interchange is out of mind, let’s explore interchange further. The most confusing thing about interchange is the hundreds of different rates between the various cards networks. This built-in variability leads to confusion and random and hidden fees to unsuspecting merchants. In order to issue credit cards banks work with associations, most notably Visa and MasterCard. The associations, like Visa, for example, charge an assessment of 0.13%. The assessments are made public by the associations, and you can easily run a Google search for the current rates. So, if every merchant pays the same fees for interchange and association dues, why are merchant processing fees so different? The wide variability in merchant processing fees come from the other bank in the mix: the processing bank. Rates charged by processing banks and ISOs vary substantially. Banks, in general, are very good at assessing small fees for their many services, and processing banks charge for everything. Not only do they have many different fees, they assess these fees in many different ways. To explore further let’s start with the big picture. There are three main ways merchants are typically billed for processing: 1. Tiered 2. Flat Rate 3. Interchange/Cost Plus Tiered Pricing With tiered pricing, merchants usually pay three different rates for their processing. They pay the lowest rate for Qualified cards, a higher rate for Mid-Qualified cards and the highest rate for Non-Qualified cards. This sounds good, because rather than many different rates, the merchant knows they will only pay three different rates, and they hope most of their customers will use their debit cards, keeping their costs to a minimum. The problem with this method is merchant processing companies widely advertises the lowest rate, and many merchants skip the fine print disclosure showing the higher Mid and Non-Qualified rates. They mistakenly believe they will pay the low Qualified rate on all their transactions and receive a big sticker shock when they see their first bill. “Teaser rates” are still widely advertised, so buyer beware. Who decides which cards fall into which tier? You got it -- the processing bank. Flat-Rate Pricing Flat-rate pricing was created to combat the confusion and provide a simple and easy to understand fees structure. Because of the widespread confusion in the industry, coupled with merchants tired of being hit with hidden fees, this pricing style has been wildly successful. Companies like Square and Paypal have built their entire business models around flat-rate pricing, and Square especially owes much if its success in offering flat-rate pricing. So, what’s the catch? With flat-rate pricing, it's simple, but simple is not cheap. In fact, it's pretty expensive. For small businesses or startups not processing very much in card volume, flat-rate pricing is a great solution. However, for most businesses, you're leaving a lot of money on the table by going with a processor that offers flat-rate pricing. Interchange Pricing Big retailers figured out tiered pricing was not a good option for them a long time ago and started working deals with the processing banks. They talked the processing banks into charging Interchange Plus pricing. With this pricing model, the merchant agrees to pay a small percentage (known as discount) and a small per-transaction fee over interchange on each swipe. This way, the merchant does not pay a larger than fair markup on some cards over others. This pricing model used primarily only with big-box merchants and was often called “wholesale” pricing. We now use the terms Interchange Plus, Cost Plus or IC+ for this pricing model. The Bottom Line Everyone is in business to make a profit, right? Due to this, really dive deep into each pricing method to find the best fit for your business. And, if you want to check whether you are paying tiered, flat rate or IC+ pricing, take a look at your statement. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
bf4d367fdf69a7f2c64c2a4d8a5c0dca
https://www.forbes.com/sites/forbesfinancecouncil/2018/02/07/will-your-social-security-retirement-income-be-enough/
Will Your Social Security Retirement Income Be Enough?
Will Your Social Security Retirement Income Be Enough? As more and more Americans are looking ahead to retirement, for some, the reality of not having enough income to pay the bills may be setting in. Even with income benefits from Social Security, many retirees are finding that it is necessary to return to a job or cut back on their living expenses. But, this may not be the way you want to live in your golden years. If you have retirement dreams of traveling, visiting loved ones or even just relaxing at home, it's never too early to determine whether or not you'll be financially secure enough to do that with your current retirement income plan. Shutterstock Replacing Your Employment Earnings In Retirement While some retirees are able to replace their earnings from employment, this can be a difficult task, especially if left to do so on your own. Social Security retirement benefits were never intended to fully replace your prior earnings. In fact, according to the Social Security Administration, this benefit really only compensates for "about 40 percent of an average wage earner’s income after retiring." So, unless you plan to reduce your lifestyle and your expenses after you depart from your employer, Social Security retirement benefits probably won’t cover all, or possibly even a majority, of your future living costs. Three Factors To Keep In Mind About Social Security Retirement Benefits When it comes to the amount of Social Security you qualify for -- or even if you’ll qualify for benefits at all -- there are some key factors to keep in mind, starting with how much you can anticipate receiving each month. Benefit Caps First, even if you are currently a high wage earner, it won't necessarily help drastically increase the amount of money you bring in from Social Security. That is because these benefits are capped at a certain dollar amount each year, regardless of how much a person earns. In 2017, the highest monthly Social Security income payment, even for those who wait until age 70 to start collecting, was $3,538. That equates to $42,456 per year. Work Credit Requirements Also, even though many people assume that they'll have at least some amount of retirement benefits from Social Security, the reality is that not everyone qualifies. In order to be eligible, you and/or your spouse must have enough work credits. Social Security work credits are earned when you work and pay Social Security taxes. Each year, you can earn up to a maximum of four credits. In 2017, you must have earned $1,300 in covered earnings to get one work credit -- that's $5,200 to receive the maximum four credits for the year. In order to qualify for Social Security retirement income benefits, the total number of credits you need to accumulate is 40. If you are a non-working spouse of a worker who is qualified for Social Security, or if you have earned less income than your working spouse, you could claim Social Security benefits based on your husband or wife's work credits. In this case, though, the spousal benefit will only provide you with 50% of the amount of your spouse's benefit as calculated at his or her full retirement age. Accounting For Rising Costs Of Living Social Security also offers an annual cost-of-living-adjustment (COLA), however, this isn't guaranteed. For example, in 2015, 2010 and 2009, there were no increases at all in Social Security retirement income benefits due to a COLA. And, because the COLA is based on the percentage increase in the U.S. Consumer Price Index, the amount of the increase may not be substantial. Determining How Much Retirement Income You Really Need As you move toward retirement, it is important to determine approximately how much income you will need. There are some rules of thumb that state retirees should have 70-80% of their pre-retirement income in order to live comfortably. That, however, may not be the case for many retirees. That's because, in some situations, a retiree's living expenses will decrease when they leave the working world. In other instances, though, a retiree's cost of living will go up due to increased travel, entertainment or other similar expenses. In addition, the cost of health care and prescription medications will also drastically increase for some. With that in mind, knowing the type of lifestyle you intend to lead in retirement, as well as your possible health care needs, can be beneficial in coming up with an approximate monthly income requirement. Also, due to inflation, the prices of the goods and services you purchase will probably increase each year. So, you will also need to factor in a way to not only keep your income flowing but also to increase the amount of that income over time. Getting Your Retirement Income Strategy In Place Having enough income in retirement is important. With a customized retirement income plan, you can enjoy your retirement knowing that you won’t have to worry about everyday financial concerns, like having enough money to pay your bills. Even if you qualify for Social Security retirement income benefits, these may not be enough to pay for all of your basic of living costs. It’s important to put a viable income plan in place that will continue to pay out for as long as you need it to. Meet with a retirement representative to create an income strategy that ensures you'll have enough secure income coming in well into the future. Materials offered by Heyday Retirement are designed to provide general information. Heyday markets insurance products and its representatives do not give investment, legal or tax advice. Heyday is not affiliated with, nor endorsed by, the Social Security Administration. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2018/02/20/four-reasons-employee-appreciation-should-be-a-top-priority/
Four Reasons Employee Appreciation Should Be A Top Priority
Four Reasons Employee Appreciation Should Be A Top Priority The fact that countless business owners are still completely unaware of the importance of employee appreciation is nothing short of mind-boggling. Despite the proven benefits of showing gratitude for your team’s hard work, far too many employees are treated like replaceable robots and exploited for needing a well-paying job. Rest assured, these employees spend every day contemplating two things: One, how much longer they will put up with their bosses and two, how much more work they would get done if their bosses actually gave them the respect they deserve. Shutterstock If you aren’t making a conscious effort to let employees know how much you appreciate them, your employees are not performing to the best of their ability. Here are four reasons employee appreciation should always be at the top of your to-do list: 1. An appreciated team is a loyal team. A loyal team is an essential ingredient of a successful business, yet business owners often struggle to build a team they know they can count on when the going gets tough. They wonder how to get their employees to care about their company’s goals as much as they do. The solution isn’t necessarily giving employees less work or reminding them what’s in store should their goals be reached. It’s employee appreciation, which has the potential to turn unsure employees into lifelong friends. Showing appreciation lets your team know that you believe in them, so it only makes sense for your team to return the favor. They will come to view their leader as more of a friend than a boss, and rarely will a friend leave another behind. Maintaining a friendly and cohesive atmosphere is especially important in the finance industry because the work you’re doing isn’t always too exciting. Employees might not be jumping to get their daily tasks done until they come to understand that they are also doing a favor for a trusted friend who clearly appreciates their dedication. 2. A little encouragement goes a long way. What’s one of the few things every successful person has in common? Confidence. If you want your employees to perform shortly after recruitment, it’s your responsibility to build up their confidence with outward encouragement and appreciation. This should be a critical part of your employee training regimen since new employees tend to develop longstanding opinions about their leaders early on. They will remember the lengths their leader went to make them feel confident for the rest of their careers. And, when a daunting task comes their way, they will feel up to the challenge thanks to their knowledge that, in their leader’s eyes, they are the very best at what they do. Whether you’re trying to convince potential clients to come on board or developing a bold strategy, confidence is essential for success in finance. But, before you’ve amassed an impressive personal record, your confidence comes from the support of your boss and teammates. It’s safe to say that supportive bosses are likely to blame for the incomparable (and often annoying) confidence of young finance professionals. 3. Great employees are few and far between. If you have built a team without a single weak link, you should feel extremely grateful, because an all-around great team is hard to come by. Businesses typically have to cycle through dozens of new recruits before they find candidates with the attitude they are looking for. Previous team members might have refused to follow directions or simply failed to understand the value of the opportunity that was presented to them. You’ve hit the jackpot when every one of your employees is able to fulfill your expectations on their own and do exactly what you tell them to. It’s easy for bosses to forget how lucky they are to have a team that does these things, but employees will notice when they appear to be taken for granted. Neglecting to acknowledge the rarity of a great team makes a leader seem entitled and ultimately undeserving of their help. Since great employees are rare in general, finding someone who is cut out for finance can be like finding a needle in a haystack. The field requires a certain type of personality and intelligence that would take the average person several years to develop. Younger employees who naturally possess most of the skills required for success in finance should most definitely be appreciated, particularly for saving their bosses the precious time they would have otherwise spent training them. 4. It’s easy. Don’t worry, business owners: Your employees are not expecting you to offer the same over-the-top perks as tech giants. This is not what you need to do to show appreciation and turn employees into friends. They just want consistent verbal support and maybe a few small perks like free pizza once a week and the option to work from home on occasion. You can also strengthen your connection with your team by spending time with them outside of work. People operate differently once they leave the confines of the workspace, so your team will definitely appreciate seeing another side of you. Still not convinced? Bosses who still aren’t convinced about the importance of employee appreciation should ask their team to name their favorite former employer. There’s a strong chance that, when asked about their answer, each employee will recall how much this employer appreciated them. They’ll remember because this former employer gave them the confidence to pursue their dreams. A little appreciation is all it takes for your employees to summon the incredible work ethic they had when they were young, hungry and ready to get their hands dirty. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2018/03/06/12-retirement-investment-factors-that-are-frequently-overlooked/
12 Retirement Investment Factors That Are Frequently Overlooked
12 Retirement Investment Factors That Are Frequently Overlooked Preparing for retirement is a lifetime process. Your clients are constantly wondering if there will be enough money to survive, and it is up to you to ensure their investments earn in a way that they are happy with. You need to stay abreast of the trends, tips and long-term investment options that can help them achieve their financial goals. With many people worried they will not have enough money saved for retirement, it is your job as a financial professional to calm their fears and help them put their money where it makes the most sense. But, are you really aware of all the aspects that affect their ability to save enough for retirement? To answer this question, 12 members of Forbes Finance Council share the one facet of retirement investing that is most often overlooked. Here is what they had to say: Members discuss their top retirement investing tips. All photos courtesy of Forbes Councils members. 1. Risk Mitigation Target retirement funds are a great option, as they automatically adjust risk based on age and relative distance to retirement age. Employees often use the risk assessment tool when establishing their employer-sponsored 401(k) plan but fail to maintain these settings. This poses a risk to both account rebalancing and age-risk correlation. - Collin Greene, ShipHawk 2. Purpose Research shows that those who don't have a purpose in life tend to have poorer health. This means that, despite a good investment portfolio, if there isn't a life plan to go along with it, you will be rich but depressed. Make sure life planning is done in conjunction with investment planning. - Darryl Lyons, PAX Financial Group LLC 3. Life Expectancy People underestimate how long retirement can last, and with advances in medicine and science, the "problems" from living longer are only getting worse. If you retire at age 65, you may have about a 25% chance of living past age 90, for instance. That's why I often advise clients to invest as if they'll live to be 100. Your plan should be conservative and make similar assumptions. - Elle Kaplan, LexION Capital 4. Behavioral Finance The 2017 Nobel Prize in Economic Sciences was awarded to Richard Thaler, the father of behavioral finance. Having clients understand the emotions and psychology of money can be the determining factor in success or failure when it comes to investing. Many investors act under the influence of behavioral biases, often leading to less than optimal decisions. Teach clients how to correct these actions. - Lance Scott, Bay Harbor Wealth Management 5. Annual Portfolio Rebalancing During the year, some assets will outperform others, and an annual rebalance of the portfolio should occur. This allows the investor to take profits from the investments that did very well and invest the proceeds in investments that did not perform. This process reaffirms the mantra "buy low, sell high," and will help you grow your retirement portfolio over the long term. - Alexander Koury, Values Quest 6. Safe Money Options Fixed annuities have caps that limit growth, but the trade-off is safety. Diversifying with fixed annuities provides a way to accumulate savings with peace of mind that your hard-earned money is safe from a market correction. Yes, it takes longer, and yes, the market could outperform it, but at the end of the day, you need to know there are safe retirement options with guarantees. - Drew Gurley, Redbird Advisors 7. Inflation A 1% rise in inflation barely shutters an eye in one year. If this continues for the next 20 years, when you may have planned for $60,000 per year for your retirement, your purchasing power will have declined to the equivalent of $49,000. And, that is assuming inflation doesn’t rise to more than 1%. Taking this into consideration, saving more than you need to live off becomes a necessity. - Stacy Francis, Francis Financial, Inc. 8. Aging In Place Studies have shown that 83% of retirees wish to stay in their own homes. A much smaller number consider using their home equity as a source of income. There are many ways to tap into wealth accrued through home ownership. Some of these include home equity loans, reverse mortgages and sale-leasebacks (typically to a family member or heir). Consider leveraging home equity to age in place. - Ismael Wrixen, FE International Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 9. Medical Expenses Inevitably, no matter their economic background or their age, very few of the people I speak with think about the medical circumstances they are going to face. That's why I am such a proponent of a Health Savings Account (HSA). It is like a quasi-retirement account that we can put money in and use going forward until we start to retire. - Justin Goodbread, Heritage Investors 10. The IRA Account I’m a big fan of the individual retirement account, or IRA, but it’s an obvious way of saving that often gets overlooked. Many working adults make contributions to their IRA, but they don’t think about how it will see them through retirement. IRAs give you more flexibility than the 401(k) you can get at work. You’ll have the opportunity to diversify with CDs, annuities, stocks and bonds. - Shane Hurley, RedFynn Technologies 11. Diversification People often overlook diversification; as a result, their investments are subject to unnecessary risk. Many believe they are diversified because they invest in mutual funds, but the truth is they are investing in a single asset class: equities. True diversification can be achieved only with truly self-directed IRA, which allows investments in alternative assets, such as real estate or private lending. - Dmitriy Fomichenko, Sense Financial Services LLC 12. Market Crash Everyone plans on positive returns in their retirement portfolios, but what will you do when the market crashes and a large chunk of your money disappears? You need to plan for this inevitability and have a strategy on how to bounce back. Without a strategy, you might be inclined to make decisions based on fear rather than sound investment advice. - Vlad Rusz, Vlad Corp. USA
891391bbbb7d785ffe4c2e5222dad25c
https://www.forbes.com/sites/forbesfinancecouncil/2018/03/07/are-you-ready-for-tax-reform-six-ways-your-business-can-prepare-now/
Are You Ready For Tax Reform? Six Ways Your Business Can Prepare Now
Are You Ready For Tax Reform? Six Ways Your Business Can Prepare Now In December, the president signed what has been described as "the most sweeping overhaul of the U.S. tax system in more than 30 years." The GOP-led tax reform promises tax cuts and job increases -- which potentially means big changes for businesses and their tax obligations. While many financial professionals agree that the implications of the new tax laws aren't fully clear or understood yet, there are still a few important things business owners can do now to prepare themselves. We asked six members of Forbes Finance Council to share their advice for the business community as they look ahead. Members discuss possible tax reform implications. All photos courtesy of Forbes Councils members. 1. Consult your financial advisory team. Talk with your CPA, CFP® and tax attorney. The biggest thing many business owners will need to look at is the 20% flow through deductions. That's huge. They will all think differently, and when you combine their views together, you'll be able to create the best strategy available for you and your business. - Justin Goodbread, Heritage Investors 2. Keep your jobs U.S.-based. In the coming years, businesses will see tax breaks designed to keep jobs and profits in the U.S. instead of sourcing them out. Businesses of all sizes can take advantage of new tax credits available, including the Apprentice Employee Tax Credit, the Qualified Farms Tax Credit and the Qualified Veteran Employees Tax Credit. - Shane Hurley, RedFynn Technologies 3. Know your financial position. The best way to prepare for potential tax changes is to have your books in order and know your financial position. If you don't use the services of an accounting professional, now may be the time to hire one to help you navigate the rules as they become clearer. An accountant will be able to help you build a tax plan for the coming year and develop future-focused strategies for your business. - Keri Gohman, Xero 4. Set up a solo 401(k) plan. If you are a business owner with no employees and are concerned that your taxes will go up, or you would like to save more from taxes, set up a solo 401(k) retirement plan if you have not done so already. You can potentially shelter up to $61,000 of income from taxes. To potentially save even more in taxes, you can speak with an adviser about a defined benefit pension plan. - Amir Eyal, Mylestone Plans LLC Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 5. Use cash-method accounting. Many businesses are eligible for easier-to-implement cash-method accounting. This should save considerable resources. Additionally, rules on accounting for inventory have been loosened or eliminated altogether. As always, be sure to consult with your tax professional to see what benefits may be available to your business. - Ismael Wrixen, FE International 6. Keep checking in with your financial adviser. The changes to the tax code are so broad that financial professionals are only starting to understand the full effects. Many in this field believe it won’t be until mid-2018 that all the changes are truly understood. Considering this, it is important to follow up periodically over the next few months with your CPA or tax adviser to keep abreast of the most recent interpretations of the tax code. - Michael Seltzer, Verite Group, LLC
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https://www.forbes.com/sites/forbesfinancecouncil/2018/03/07/investing-in-a-startup-eight-critical-factors-to-consider/?utm_content=buffer1f7f7&utm_medium=social&utm_source=linkedin.com&utm_campaign=buffer
Investing In A Startup? Eight Critical Factors To Consider
Investing In A Startup? Eight Critical Factors To Consider Few things make a person more energetic and excited than pitching their business idea to a potential investor. If you're on the receiving end of that pitch, it's easy to get swept up in the founder's unwavering passion and belief in their startup. Before you make such an important investment, it's vital to consider all the facts, figures and skills involved in making this entrepreneur's dreams come true. Do they have experience in the industry? Do they have a solid plan for cash requirements and scaling? Are they willing to see their venture through to the end, no matter what that looks like? According to eight members of Forbes Finance Council, here are the most important factors a would-be investor should consider before backing a startup. Members share their top considerations before investing in a new business. All photos courtesy of Forbes Councils members. 1. The Founder's Ability To Execute Any idea, if truly innovative, can be compelling, especially when sold by a passionate founder. A venture investor will almost always focus on the team first, but the ability to execute should be the first priority. Many startups have founders who haven't launched a new venture before. That's okay, but they should have shown through other experience the ability to turn an idea into a reality. - Drew Cook, Pact Apparel 2. The Management Team's Skills And Passion Quite simply, management is the most important factor. Although initial considerations such as risk versus reward are vital, you are not only investing in the product or service but the leadership and ability of the management team to execute the business plan. Don’t invest in anything less than an experienced, qualified and passionate management team. - Stacy Francis, Francis Financial, Inc. 3. The Character Of The Founder The most important thing a venture capitalist can do is make an effort to understand the true character of the person or team they’re investing in. Get to know them on a personal level. Learn about their background and experience. And, do a deep dive into their references. These are all hyper-critical steps to take prior to investing in a startup. - Ben Gold, QuickBridge Funding 4. The Potential Market Of The Business As a venture capitalist, your most important concern when considering an investment is the business’ potential market. Ask specific questions to ensure that the company has a clear idea of its market share. The founder should be able to tell you the percentage of the market that they plan to capture over a specific time period and what type of growth potential they envision. - Shane Hurley, RedFynn Technologies 5. The Startup's 10-Year Goal Founders have differing goals and strengths. Some founders are great at working in teams of up to 10 but struggle on a team of 100. Some founders want to scale a company for 10 years, while others will get bored and want to start something new. Investors should ensure agreements and terms are in place to allow for a clean founder exit that is not disruptive to the business. - Moe Adham, Bitaccess Inc. 6. Future Cash Requirements Many great ideas run out of operating capital and end up in the graveyard. While many startups use an aggressive pro forma to show profitability, understand just how much capital or cash will be needed to keep the company going when it hits roadblocks. - Lance Scott, Bay Harbor Wealth Management Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 7. The Systems, Plan And Structure Of The Startup Venture capitalists love and seek to invest money. They look for systems and plans. This doesn’t always mean experience. Having an effective system that is proven to work and makes money is valuable to startups, because they can operate and grow in a strong structure. Having a plan shows that they have goals for their system to build toward. - Donovan Ruffin, DOXA 8. The Current Fundamentals Of The Business Don't get sold by an energetic business plan. When it comes to startups, there is typically an emotional hype that shows how the business could grow over a period of time. There's just no guarantee. So, keep focused on the fundamentals -- not the hype the owner will try to sell you. - Justin Goodbread, Heritage Investors
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https://www.forbes.com/sites/forbesfinancecouncil/2018/03/12/why-banks-are-scrambling-to-build-a-venmo-for-business/
Why Banks Are Scrambling To Build A Venmo For Business
Why Banks Are Scrambling To Build A Venmo For Business Venmo is a phenomenon that has become so synonymous with paying someone back, it’s even become a verb. Venmo gives users the ability to immediately send or request payment from anyone in their contact list or Facebook network, and it transmitted 8 billion dollars in payments in the second quarter of 2017 alone. Don’t think banks haven’t noticed -- they’ve developed their own version Venmo, called Zelle. After a painless, 30-second setup, the Zelle app lets consumers send instant digital payments to their friends or family members. As a result, banks are seeing an increase in transactions and customer satisfaction. Shutterstock But, Venmo’s viral-like adoption isn’t limited to small transactions like splitting checks at dinner. It’s seeping into all aspects of consumer’s lives, so that many Americans are eliminating paper payments altogether for bigger ticket items and recurring payments, like rent and billpay. And this shift toward digital payments is not demographic-specific or a trend that only digital-native millennials are embracing; in fact, almost half of consumers now prefer using digital apps to make payments. Consumer expectations for instant digital payments have an effect on business owners, as well. Businesses want to take advantage of the ability to pay their vendors and employees online without the hassle or expense of paper. However, business owners today don’t have the luxury of fast, immediate, Venmo-like payments, and this is due to the failure of banks to keep up and predict the solution that will work for businesses. Over the last 10 years, I have had countless conversations with bank executives about what’s next and if it’s time to invest in developing a platform for electronic business payments. Within the last year, I’ve noticed that these conversations have shown stronger alignment and agreement, underlining that the time is now. What’s the holdup for banks building a Venmo for business? The rules that apply to business payments versus consumer payments are different. The level of complexity and players involved can’t be compared. The whole process of initiating and making payments is extremely high-touch, with many moving parts, from sending the invoice, honoring your payment terms (hello, Net 30, Net 60 and Net 120), gathering necessary approvals and requiring multiple systems, such as your accounting software and your bank, to talk to each other. As we move toward becoming a “cashless” society, banks have not caught up with the digital revolution in terms of businesses, because their infrastructure is stuck in the 90s. Some businesses have entire departments dedicated to invoicing and followup. Others have developed their own payment processing systems that rely on dated technology. There are those that are still even handwriting checks. But, it’s not only the legacy systems of these businesses that are to blame. Many banks still don’t have fintech or payments integrations that would allow for quicker payments and a simpler process for businesses owners. Add to all of this another obstacle: banking regulations. Following the financial crisis in 2008, banks were slapped with so many regulations there was hardly any budget or time leftover for emerging technology. This brought innovation to a standstill. Banks say goodbye to building Venmo -- themselves. Emerging fintech players and banking partnerships are filling the void and collaborating to address the market’s need for better business payment solutions. Companies like Symple are capitalizing on Venmo’s promise of delivering instant payments by letting businesses snap photos of invoices and remit payment into the vendor’s bank account. The payments are still not instant, but they’re getting close. Meanwhile, many in the fintech sector see the opportunity to do more than simply automate invoicing. We’re looking at the bigger picture and developing technology to help businesses with all aspects of their payment, invoicing and banking requirements. If businesses have instant access to all of their digital payment needs in one place, it is going to save them hours of time and overhead. We’re seeing fintech companies dedicating themselves to different aspects of business payments and then integrating with banks to create an entire digital payments ecosystem for business. In the near future, digital payments will be scalable for different business needs and applications. The pain of business transactions will be a thing of the past. Businesses should benefit from the ease of use and excellent customer experience of receiving fast, digital payments, just as individuals do with apps like Venmo. But, a combination of banking regulations, legacy systems and ancient infrastructure has held up business payment technology from being integrated and adopted by big banks. The banking community agrees that the market is ready, and technology already exists outside of the bank’s infrastructure so that they don’t have to develop it themselves. Over the last five years, big banks have realized that now is the time for Venmo for business, and fintechs are emerging to partner with them to turn this concept into a reality. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2018/03/13/the-tsp-kicked-a-field-goal-with-the-new-modernization-act/
The TSP Kicked A Field Goal With The New Modernization Act
The TSP Kicked A Field Goal With The New Modernization Act The Thrift Savings Plan (TSP) has been a primary retirement savings account for many federal employees. The TSP, as a retirement savings account, features simple, easy-to-understand market indexes with low fees. The potential for matched funds, the ease of contributing and the low-costs have resulted in millions of federal employees using the TSP to build their nest egg. However, the TSP has been a less than favorable vehicle for retirees who plan on using the money for income or other expenses in retirement. The complexity of the rules for distribution has always run counter to the simplicity experienced during accumulation. The regulations have left many federal employees confused and dumbfounded. Shutterstock Recently, Congress stepped in to try to solve some of these issues, and on November 17, 2017, the TSP Modernization Act (PL 115-84) was signed into law. The new act, which the TSP Board has until November 2019 to implement, has some meaningful improvements for participants. Here are a few of the upcoming changes to the TSP: 1. Unlimited In-Service Withdrawals At Age 59 ½ Currently, federal employees are able to complete one in-service withdrawal from the TSP after age 59 ½. The option has given many near-retirees expanded options for the transition to retirement as well as the ability to set up meaningful distribution plans ahead of time, instead of having to wait until actual retirement. Good news: This option just got even better. The Modernization Act will allow for an unlimited amount of in-service withdrawals at age 59 ½. Now near-retirees will be able to successfully use their money to transition to retirement, consider a Roth IRA conversion and have the ability to successfully implement their post-separation plans without the old TSP limitations holding them back. 2. Unlimited Post-Separation Withdrawals The new law will also allow federal employees to freely withdraw money from their accounts in retirement. For a long time, I have been perplexed on why the TSP would restrict participant access to funds. Once the new law is implemented, participants will be able to use their money without the same limitations. Yet, the new Modernization Act left some of the old problems in place. Here are a few of the restrictions that were not addressed: 1. Limited Choices The five main funds in the TSP will remain the same under the new law. The funds are simple and low-cost, but the choices inside of the plan have fallen far behind what’s available to consumers outside of the TSP. The choices do not include market indexes relating to key asset classes, such as emerging markets, real estate, long-term bonds and commodities. By only offering five funds (and life cycle funds comprised of the five funds) the choices are simple, but they limit the ability to implement a highly diversified portfolio. It’s surprising that Congress did not upgrade the TSP funds, considering the leaps and bounds made in the industry by companies that have figured out how to offer more varied options inside of the low-fee space. 2. RMD On Roth TSP The Roth portion of the TSP is still subject to Required Minimum Distributions. The only way to avoid a required withdrawal after age 70 ½ is to roll the money over to a Roth IRA. A mandatory withdrawal from a tax-free account seems counterproductive. 3. TSP Annuity The TSP Annuity type also will not change. As an “immediate annuity,” the TSP annuity option will still require a full surrender of principal for guaranteed income. This option, in my experience, is rarely appropriate for someone’s retirement plan and does not keep up with the evolution of annuities over the last twenty years. I believe TSP participants can find better annuities with more flexibility inside of an IRA over the TSP. Field Goal Scored At the end of the day, the TSP Modernization Act will bring about several positive changes to the plan. The flexibility for distributions will allow near-retirees and retirees more opportunities to move from the TSP toward more retirement-appropriate accounts with fewer limitations. In my opinion, though, Congress missed an opportunity to upgrade the TSP choices, eliminate the Roth RMD and bring the TSP annuity into the 21st century. Congress scored a field goal for this drive to improve the TSP, when it seemed like a touchdown was going to be scored. I feel an opportunity was missed, but I suppose some improvements are better than none. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2018/03/16/tribal-economic-development-aspirations-analyzing-senator-warrens-recent-speech-to-indian-country/
Tribal Economic Development Aspirations: Analyzing Senator Warren's Recent Speech To Indian Country
Tribal Economic Development Aspirations: Analyzing Senator Warren's Recent Speech To Indian Country American Indian governments possess many of the same responsibilities as local governments, including maintenance of infrastructure, education, healthcare, elder care and more. Unlike other governments, which can levy taxes (or collect sales taxes) to fund these critical initiatives, tribes are forced to rely largely on the creation of tribal businesses to generate the revenues that fund tribal government operations. As federal funding for tribes dwindles, the impact Native American economic development has on the social and economic health of tribal communities grows in importance. Shutterstock Senator Elizabeth Warren’s recent speech, delivered at the National Congress of American Indians’ (NCAIs) Tribal Nations Policy Summit in Washington, D.C., focused mostly, and not surprisingly, on her highly publicized claims of Cherokee descent as well as tribal economic development. I am a proud enrolled member of the Cherokee Nation, the tribe Senator Warren claims. So, her speech left me with a sense of hope, as she vowed to correct centuries of broken treaty obligations by the federal government and encouragingly recognized the vital role economic development must continue to play for Native Americans. For many Americans, tribal businesses conjure thoughts of discounted cigarettes, blackjack tables and country music concerts. However, tribes also conduct biomedical research, manufacture wiring and flight hardware for aeronautics operations and provide logistics for telecommunications operations. The revenues generated by these economic development engines are used to heat the homes of elderly members in winter, provide educational materials and scholarships for students, and they have considerable impacts on the quality of life in tribal communities -- now and for the future. However, I am not aware of any significant pieces of legislation Senator Warren has proposed to benefit Indian Country in the current term. So, with a spirit of optimism, I have analyzed and expanded upon some of her comments at NCAI to better understand the Senator’s aspirations for Native people and what really needs to happen to achieve the type of prosperity she laid out for Indian Country. “Washington owes you respect. But this government owes you much more than that. This government owes you a fighting chance to build stronger communities and a brighter future — starting with a more prosperous economic future on tribal lands.” Innovative tribal councils pursue commercial activities that produce revenue to help their members remain self-sufficient and thrive. These businesses contribute some of the funding tribes need to meet fundamental community needs, but tribes still remain in need of policy and regulatory support from federal and state officials to press forward. Although gaming has been a boon to those few tribes located near population centers, it has not been an economic solution for most remote tribes. Many geographically isolated tribes have focused their economic development on innovative businesses that connect them to larger markets. Federal policies that lessen barriers to tribal goods and services would go a long way toward fostering those market connections. To expand upon Sen. Warren’s sentiments, tribes are seeking a partnership with the federal government -- not a handout. “Banking and credit are the lifeblood of economic development, but it’s about 12 miles on average from the center of tribal reservations to the nearest bank branch. Meanwhile, Native business owners get less startup funding than other business owners.” As Senator Warren correctly stated, tribal communities are incredibly underserved by financial institutions. Tribal innovators have recognized that providing better access to financial services is not only beneficial to their enrolled members but to the surrounding community and consumers across the United States. To meet this marketplace need, tribal governments have entered into the financial services arena by opening banks, credit unions, community development financial institutions (CDFIs), sovereign wealth funds and tribal lending enterprises (TLEs). To help facilitate the expansion of financial services on tribal lands, tribal governments have set up financial regulatory bodies to oversee lending institutions and fulfill the co-regulatory structure with the federal government envisioned by the Dodd-Frank Act. Unfortunately, tribal businesses overall still have a very difficult time with funding and accessing affordable capital. Unlike typical financing arrangements, tribes are unable to pledge their land as collateral -- as it is held in “trust” by the federal government. Thus, mainstream banks and venture capital have shown little interest in tribal startups. This forces tribes to look for alternative funding sources that treat their businesses as “high risk,” and high-risk money is expensive money. If Congress were to incentivize investors to participate in startups, it would be a win-win for Indian Country and grow hundreds of diminutive rural America tax bases, sorely in need of jobs and economic development, into communities of economic hope. “And when it comes to crucial infrastructure, Native communities are far behind the rest of the country. Rural broadband access on tribal lands is worse than anywhere else in America, and more than a third of those living on tribal lands don’t have high-speed broadband at all. Without it, Native communities are simply shut out of a 21st century economy.” Access to the internet is a civil right. Tribal leaders recognize that the only way to reach beyond borders and connect with global consumers is through the internet. Efforts by the FCC to close the digital divide in recent years have fallen woefully short of opening most remote Native reservations to a world beyond our borders. A few tribes have leveraged broadband internet access into vibrant e-commerce. The internet gives tribes a forum to sell Native goods, promote tourism opportunities on tribal lands and serve underbanked Americans with small-dollar credit products. Any support that closes the divide will only grow opportunities and markets for Native businesses. I hope Senator Warren’s speech is the beginning of a federal policy that recognizes and supports the innovative potential brimming within Indian Country. By working with tribal governments to develop smart regulations and policies that foster growth in enterprise, tribes can use business revenues to fund vital social programs. Allowing tribes to take the lead in their own economic development will encourage greater innovation by Native people and create better social and economic outcomes for Indian Country. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2018/03/29/important-factors-to-consider-before-hiring-a-personal-financial-adviser/?sh=47f2c4a45ca0
Important Factors To Consider Before Hiring A Personal Financial Adviser
Important Factors To Consider Before Hiring A Personal Financial Adviser If your personal budget is feeling a bit out of whack, you may need the assistance of a personal financial adviser to help get you in check. While they are willing to take you on as a client and work to make a systematic plan of your finances, you need to consider carefully who you are trusting with your personal money matters. Just like anyone you would hire, you need to ask a few questions before you go blindly into a relationship with a personal finance adviser. Finding out their background, experience and education can help you establish a trust level with them and ensure you are more forthcoming about your financial situation so they can help you get your money in order. Below, eight members of Forbes Finance Council discuss the most important thing individuals should consider before hiring a personal finance adviser. Here is what they had to say: Members discuss their top considerations before hiring a financial adviser. All photos courtesy of Forbes Councils members. 1. Fiduciary Status A large number of financial services professionals hold themselves out as “financial advisers.” So, why is working with an independent adviser who acts as a fiduciary so important? A fiduciary has the legal obligation to put their clients’ interest ahead of their own. They should be more fair, balanced and transparent. Additionally, they will be held to the highest ethical standard. - Matthew Petrozelli, Valley National Financial Advisors 2. Longevity And Fees When someone is young and beginning to accumulate wealth for retirement, they need to focus on working with an experienced financial adviser or a new adviser working under a strong mentor. The other side of the equation is the fee structure the adviser charges. You'll almost always find that seasoned advisers have a very simple fee structure that makes doing business easy. - Drew Gurley, Redbird Advisors 3. Education And Transparency Is your financial adviser going to dedicate themselves to educating you on the decisions they'll be making in order to meet your investment objectives? Will they be transparent about their intentions and responsive when you need them? The ability to educate and the willingness to be transparent are two of the most genuine characteristics of a trustworthy adviser. - Ross Garcia, PREI Capital Group & Divorce Mortgage Advisors 4. Experience With Your Asset Level When choosing a financial adviser, you should look for someone who has experience working for those with your asset level. The mindset of someone who is managing $2 million is different from someone managing $20 million. While any good adviser is fiscally responsible, there’s a psychological aspect to this, and you really want your adviser to understand your needs so as to help you reach your goals. - Jared Weitz, United Capital Source 5. Trust Credentials and reputation are important, but trustworthiness is most critical. The right adviser is someone who listens to the client, speaks clearly to them and shows a solid grasp of their needs. But it is not only about pleasing the client. A good adviser will provide candid advice and will speak up if the client is in danger of going down a path that could undercut financial security. - Paul Blanco, Barnum Financial Group 6. Alignment Of Goals It is important to align financial goals with the goals of the adviser. If the adviser gets better commission on certain products, then they are more likely to sell those products, which may or may not be aligned to your financial needs. Getting an unbiased adviser who believes in long term-investment and steady returns works out better than an adviser who believes in quick unsustainable gains. - Deepak Kedia, Motorola Solutions Inc Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 7. Personal Stake Whether your adviser is a fund, a private bank or even a friend, you should make sure that the entity you choose is "eating his own cooking." In other words, they should be personally invested in the exact same assets they are advising you to put your money in. If that is not the case (and it rarely is), then you have a massive red flag in front of you. - Gabriel Grego, Quintessential Capital 8. Consistency Ask for of a recommendation from a respected friend or family member. Look for longevity and consistency in their employ. Make a list of your goals for the adviser well in advance with help from your lawyer and accountant. Know that it is all too common for many investment advisers to emphasize profitable insurance products to sell you when your wish was for help with budgeting or investment advice. - Perry D'Alessio, D'Alessio Tocci & Pell, LLP
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https://www.forbes.com/sites/forbesfinancecouncil/2018/04/30/toward-a-new-paradigm-from-financial-inclusion-to-financial-wellness/
Toward A New Paradigm: From Financial Inclusion To Financial Wellness
Toward A New Paradigm: From Financial Inclusion To Financial Wellness Shutterstock For the last two decades, many organizations -- from financial institutions and philanthropic organizations to think tanks -- have embraced the concept of financial inclusion. They’ve reckoned that the billions of people who exist outside the formal banking sector worldwide would benefit from new services, solutions and investments to stimulate productivity, raise living standards, unleash entrepreneurial energy and reduce economic inequality. While the aims of financial inclusion remain relevant today, the current solution set is outdated. The framework for building financial solutions must evolve from one of inclusion -- siloed point solutions that provide access to checking accounts, payments solutions, pensions, IRAs, etc. -- toward one of wellness. Financial wellness addresses a consumer’s holistic needs: physical, digital and emotional. Addressing A Convergence Of Consumer Needs Consumers are increasingly looking for products and services that do not just cater to discrete need but to their overall financial wellness. This includes not only what we think of traditional financial services, but also insurance, health, education and, in some cases, energy. This convergence of needs applies to all consumers in the developed and developing world alike, whether they are affluent or under/unbanked. A paradigm shift toward financial wellness is now possible thanks to the emergence of new business and technology models. While the traditional approach to financial inclusion has involved bringing low-cost financial products to the market, a new generation of startups is creating solutions that embed themselves in consumers' lives instead of treating finance as a pure utility, embracing a 21st-century approach to digital financial services. What these business models have in common is that they are essentially customer-centric rather than product-centric. They are using technology, behavior science and new business models to improve customers’ well-being instead of seeking a fresh market for tried-and-true products. And they are doing so with the goal of profitable growth, ensuring an incentive to serve the customer while finding new ways to remain relevant and compelling. For them, every customer is a profitable one. regardless of where they are on the financial spectrum. A New Framework The challenge before us is to build a scalable framework for investment that doesn’t center around the old paradigm of financial inclusion. Instead, we must take advantage of both technology and a new mindset to do some blue-sky thinking. This requires looking at the challenge from multiple perspectives. At an investment level, we must move away from pushing recognizable products with unsustainable business models toward seeding innovative startups and providing ongoing support to them while they are in growth mode. The goal here is not quick returns -- instead, investors must build ventures that lead to sustainable commercial solutions over the next 5, 10 and 50 years. No one company, or even segment of the industry, holds the solution to financial wellness. Success will only come from a systemic and collaborative approach to a diverse ecosystem. Regulators, for instance, have a part to play in ensuring fair and practical rules that promote the growth and cross-fertilization of the industry. Once that thesis has been developed, it can be implemented through concrete measures such as regulatory sandboxes and revised forms of financial literacy. Existing financial institutions have to figure out how to partner with these new startups to incorporate their solution sets into their overall offerings to expand the horizons of existing businesses. Taken together, this ecosystem can have a substantial and measurable impact on the lives of individuals and entire communities. Innovative financial services can raise the standard of living -- and improve the overall well-being -- of people. But a copy-and-paste approach will not succeed. Entrepreneurs and investors need to think beyond financial inclusion and rise to this challenge, building their companies and products on a new model of financial wellness. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2018/05/21/the-four-major-investment-errors-to-avoid/
The Four Major Investment Errors To Avoid
The Four Major Investment Errors To Avoid Shutterstock Over the years, I have made some investing errors that could probably have been avoided -- or, at least, mitigated. I am not alone in this regard. Some of the world’s highest profile and most successful investors, including Berkshire Hathaway’s CEO, Warren Buffett, and Microsoft’s founder, Bill Gates, among many others, have all publicly shared some of their investment faux pas. "If they can get their fingers burned, maybe I should leave investing to others," is something I hear a lot when discussing this topic. My answer, however, is "Not at all." Indeed, it’s my opinion that not putting your money to work is, in fact, far more perilous in the long term. Proof of this is that the overwhelming majority of the world’s high-net-worth individuals and ultra-high-net-worth individuals are committed investors. To my mind, it is about sidestepping the avoidable mistakes by seeking professional, independent advice and learning from others. With this in mind, here are my top four investment errors to avoid in order to seriously build your wealth: 1. Trying To Time The Market. When it comes to investing, typically, the intention is to create income or multiply wealth from capital. The best way to achieve this is to consistently stay invested rather than moving in and out as the market shifts. History teaches that, over a longer time horizon, financial markets have an upward trajectory. It is for this reason I have said, “that time-honoured investment saying that it is all about ‘time in the market, not timing the market’ has led many investors to financial success.” 2. Not Adequately Diversifying. Not putting all your eggs in one basket is, as everyone knows, one of the pillars of successful investing. But it is always surprising the high number of investors who don’t actually manage to get this quite right. Being properly diversified means having a range of assets across different sectors, classes and geographical regions whose returns are wholly independent of one another. It’s also key to keep an eye out for funds that correlate with each other in regards to holdings and styles. 3. Keeping Too Much Cash. Maintaining a reserve of cash is crucial. It could be needed for a so-called "rainy day" or to cover an emergency -- it offers a financial security blanket. On the other hand, it could be to have funds at the ready to use if there is a positive trend or opportunity that is presented and on which you would like to capitalize. That said, it is important to get the balance right. Holding too much cash over extended periods can be detrimental to your long-term financial goals, as inflation can gradually erode it, meaning it would be better placed invested in another asset. 4. Lacking Objectivity. Decisions rooted in genuine emotion are generally noble in life. However, with investing, this can be dangerous. There should be no place for undue loyalty, keeping up appearances or adopting a herd mentality. An independent financial advisor who knows you, your circumstances and long-term goals, will also help keep you on track. Mistakes are an inevitable part of life. However, I believe that should we avoid these errors, we should be well-positioned to mitigate potential investment risks and take advantage of the many considerable investment opportunities. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2018/05/30/when-investing-is-more-three-ways-impact-investors-incorporate-self/?sh=6b275c643cbf
When Investing Is More: Three Ways Impact Investors Incorporate Self
When Investing Is More: Three Ways Impact Investors Incorporate Self Shutterstock My personal journey intertwines with my investment journey. When I was starting out in the field as a representative for a large financial company, I found myself bored at a desk investing in and promoting mutual funds I knew nothing about. I wanted something more -- I wanted to know where my money was going and what my money was doing. Investing, to me, was more than financial returns -- it went beyond the measurable. With this principle in mind, I transitioned from conventional investing to impact investing. While impact investing may be glanced over by some as a trending topic, it holds value beyond numbers on a spreadsheet. As an impact investor, I seek alignment between my investments and personal values. It’s important to me that my money is doing more than growing but that it is benefiting the whole. Today, I invest in multifamily real estate with the purpose of creating community through urban gardens, green education, recycling programs and resident-led classes and events. I find purpose in helping individuals positively come together through my investments and work. My colleagues and fellow impact investors mirror this desire and drive: We hold a variety of similar personality traits or principles focused on how to connect why we invest in a fund or project with outcomes beyond financial gain. What impact our investments are having through social or environmental indicators is what motivates investment decisions. In discovering who I am through the impact investor lens and who other impact investors are, I tend to see three common traits: 1. Integration Of Inner Work Into Investment Decisions To be sound in your investment decisions, impact investors incorporate their personal values into what they support financially. Living authentically is as important to an impact investor as the larger significance their investments may be having. Impact investors live each day to do good in the world. Whether supporting clean water efforts in third world countries or organic farming in one’s community, personal values drive investment decisions for impact investors. 2. Desire To Participate In Personal And Direct Deals Impact investors tend to seek one-on-one relationships with those they are investing with as opposed to blindly investing money with a large corporate firm. Fostering relationships builds trust and essentially more success for the investor and investee. Impact investors are typically not just “investors” -- they are friends and colleagues who share ideas and collaborate with one another to benefit the bigger whole. 3. Sense Of Stewardship In Social And Environmental Causes Impact investors care about the bigger picture. They care that their money is funding causes and projects that positively benefit the universe and their personal values. Through their investments, they feel a sense of pride, knowing their money is supporting the success of what they consider impactful. They are concerned with the overarching positive impact their money is having on something tangible: a child, a community or an environmental purpose, for example. Impact investing affords the opportunity to connect with these positive outcomes, creating a larger sense of success and purpose. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
a3f41e6e121e8244ed722610de5538fa
https://www.forbes.com/sites/forbesfinancecouncil/2018/05/31/is-there-really-a-benefit-in-offering-your-employees-a-401k/
Is There Really A Benefit In Offering Your Employees A 401(k)?
Is There Really A Benefit In Offering Your Employees A 401(k)? One thing that can make or break a business is the employees you hire. They represent your company, so you want to make sure you're taking care of them in a way that invites them to stay with you and your business long term. Health benefits are a great way to get started, and if you’ve already done that, you’re likely also considering offering a 401(k) benefit plan. While some finance experts believe a 401(k) is the best retirement plan a business can offer employees, others advocate for different options. To help you determine the answer that best fits your business, take the advice of these eight members of Forbes Finance Council. Members explore the benefits of offering a 401(k). All photos courtesy of Forbes Councils members. 1. It's simpler than it sounds. Offering a 401(k) plan feels daunting with taxes, payroll, vendors, HR policies and more to consider. However, some startup 401(k) providers are emphasizing user experience for your employees, doing more heavy lifting than traditional providers, as they want market share. Offering a retirement plan is not only a nice perk, it also encourages healthy personal finance habits. - Atish Davda, EquityZen 2. Let your team be your guide. All too often, business owners don't fully appreciate the level of investment knowledge or financial planning awareness their employees have. Choosing a plan that allows your team to make uninformed investment decisions can lead to liabilities that an employer ought not undertake. Also, employees may not understand the implications of whom they make beneficiaries for this plan. Choosing an adviser to work with your team is crucial to your plan's overall success. - William Kohn, Florida Health Agency 3. Determine the purpose of a 401(k) plan. What's the main purpose of creating the plan? Is it maximizing tax strategies for the owner, employee retention or just another company benefit? The plan needs to be communicated to employees as to how it works, and you need to provide them sufficient education to satisfy fiduciary requirements. Fees, vesting schedules, top-heavy rules and amounts of employer contributions need to be considered as well. - David Frisch, Frisch Financial Group, Inc. 4. The benefits outweigh the costs. Recently, one of my clients balked at setting up a 401(k) because of the startup fees. I had to remind him of why he wanted to set up a retirement plan: to assist his employees in creating retirement wealth, to attract new talent and to set up his business for future success. My goal is to invest my time and energy into my clients' businesses to add value beyond the startup costs. - Alexander Koury, Values Quest 5. Keep personal tax planning in mind. Keep your personal tax planning in mind when offering 401(k) plans to your employees. You may consider utilizing features like a profit-sharing provision and/or a safe harbor provision. These two features often allow you, the business owner, to maximize your tax savings. - Justin Goodbread, Heritage Investors Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 6. Do what's best for the business and employees. Do your homework, and be clear about your objectives. Most 401(k) plans are highly restrictive and limit plan members to a modest number of investments and asset classes. While it’s possible to set up a 401(k) that provides access to most publicly traded securities and asset classes, understand this is not the norm. Go with a firm that both understands and can meet your specific requirements. - Shane Hurley, RedFynn Technologies 7. Track record and technology utilization are key. When offering a 401(k) plan to employees, it’s important to sign up with a reputable company that has a long-standing record of success -- but also one with updated technology. Make sure you offer your employees something competitive enough to make a difference in their long term benefit; they'll appreciate you for it. - Jared Weitz, United Capital Source 8. A 401(k) is not your only option. There are many ways to offer employees a path to save for retirement. A 401(k) is one option but not the only option. There are many other IRA accounts that offer more flexibility with the same, or even better, benefits. In the end, you have to ask yourself what is most beneficial for you, your company and your employees. - Vlad Rusz, Vlad Corp. USA
bb9ec5634b4cfb7cfe95ffb8946f3d92
https://www.forbes.com/sites/forbesfinancecouncil/2018/05/31/why-original-medicare-may-cost-more-than-you-think/
Why Original Medicare May Cost More Than You Think
Why Original Medicare May Cost More Than You Think Shutterstock Original Medicare isn’t always as affordable as you may think. Although it is typically cheaper on the surface (in terms of premiums) than employer-sponsored plans or individuals plans purchased on the open marketplace, there are a number of out-of-pocket costs that can add up quickly. Original Medicare Costs Most people do not pay a premium for Medicare Part A (which covers hospital expenses). The monthly premium for Medicare Part B (which covers doctors appointments and other medical costs and equipment) begins at $134 in 2018 -- well below the average for comparable marketplace plans. While those numbers are encouraging, they don’t tell the whole story. Medicare also comes with a variety of out-of-pocket costs that can leave beneficiaries on the hook for medical bills that are just as high in dollars as they are in shock value. In fact, the average Original Medicare beneficiary (meaning those who have both Part A and B) was projected to pay $7,620 or more for their healthcare expenses in 2017. Where do these costs come from? Deductibles Medicare provides a range of coverage, but only after certain deductibles are met. While the Part B deductible is relatively small ($183 annually for 2018), the Part A deductible for inpatient hospital stays is more expensive: $1,340 for each benefit period. A benefit period can reset just 60 days after being discharged from the hospital, meaning a patient could face multiple benefit periods (and therefore multiple deductibles) in one calendar year. Coinsurance And Copayments Like other types of health insurance, Medicare utilizes cost sharing to split medical bills with its beneficiaries. Medicare Part B requires a 20% coinsurance contribution from its patients, meaning the bills will keep coming even after the deductible is met. For Part A, there is no coinsurance requirement for the first 60 days spent in a hospital during a benefit period. However, should you require more than 60 days in a hospital, in 2018 you’ll be on the hook for $335 per day through day 90 and $670 per day thereafter. A stay in a skilled nursing facility in 2018 requires coinsurance of $167.50 per day for days 21-100. You are responsible for all costs beyond that. Services Not Covered By Original Medicare The bulk of Medicare’s out-of-pocket costs stem from things not covered by Original Medicare at all. Such non-covered services include most prescription drugs, as well as dental and vision benefits. Medicare also does not provide coverage for emergency care received outside of the U.S. in most cases. No Out-Of-Pocket Limits While private health insurance plans typically have an annual out-of-pocket limit on expenses -- meaning that, once the beneficiary reaches a certain dollar amount, their plan starts paying for all medical costs beyond that point -- Original Medicare doesn’t. That means if you make a lot of trips to the doctor or hospital, out-of-pocket costs can quickly become unaffordable. Is there a way to cover some of these costs? Many Medicare beneficiaries have found some level of resolution by enrolling in either a Medicare Advantage or Medicare Supplement Insurance plan. In fact, 33% of Medicare beneficiaries were enrolled in a Medicare Advantage plan in 2017, and around 20% were enrolled in a Medicare Supplement Insurance plan in 2017. Medicare Advantage plans provide benefits for some of the services not covered by Medicare, like prescription drugs, hearing, vision and dental care. Medicare Supplement Insurance (or “Medigap”) plans provide coverage for some Original Medicare out-of-pocket costs, such as deductibles and coinsurance. Keep in mind, you cannot have a Medigap plan and a Medicare Advantage plan at the same time. These plans can help save Medicare beneficiaries money every year. Now those are some numbers we can all get behind. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
7fb5bcf39b2f14bd128c9b576910a448
https://www.forbes.com/sites/forbesfinancecouncil/2018/06/08/leveraging-an-american-epidemic/
Leveraging An American Epidemic
Leveraging An American Epidemic Pexels Pexels At a time when the news cycle moves our economy like a high-pitched tuning fork, we have an opportunity, potential tragedy and an all-around need for prolific problem solvers. The war on the opioid and addiction crisis is a timely bipartisan issue that makes headlines daily. Unfortunately, what is left out is the crumbling infrastructure of an industry that has been inflated, abused and infested with questionable to fraudulent activity, placing it on the edge of the proverbial cliff. This is the summation of my seven years with a foot in the finance industry and the other in the healthcare providers sector. My previous article was published the day after John Oliver decided to roast the questionable and fraudulent industry ethics. Then, two days after the first piece of this series was published online, my prediction was partially validated with the bankruptcy of Elements Behavioral Health Inc. Not long after, the media highlighted the cash-flow woes of once-giant, Sovereign Health. The previous article detailed how the 2008 Medicare Improvements for Patient Providers Act (MIPPA) and the updated Mental Health Parity and Addiction Equity Act (MHPAEA) turned mental health care reimbursements into a gravy train for investors and fraudsters. Mandating that behavioral and mental health (B&MH) treatments be reimbursed on the same scale as surgical procedures quickly transformed it into the most lucrative space generating the best margins in the healthcare sector. Simply put, a fast-moving Congress, special interests and earmarks enabled some haphazard legislation. Once a genuine form of treatment and rehabilitation, drug treatment centers from California to Florida quickly became a cash cow for everyone involved except the most vulnerable party: the patients. MIPPA and the Affordable Care Act (ACA) effectively turned B&MH into the perfect space for fraudulent practices, including over-billing, patient brokering, kickbacks and exhaustion of lifetime benefits of clients. The burgeoning personal and public costs of the opioid crisis, compounded by both criminal and civil investigations into many treatment providers, highlight the operational risk of this investment. Unprecedented amounts of funding combined with lax oversight created a perfect storm for financial mismanagement of behavioral health treatment in the United States. It made risky lending accessible again for the first time since 2008, and the reason I believe it will collapse -- and soon -- is simple: supply and demand. There's an asset bubble -- but a shortage of quality care -- in an oversaturated market with an ample supply of poor care. There are two supply-and-demand factors: the consumer good (care) and the asset (treatment centers). Underwriters are providing loans to public companies based on private company valuation: a fundamental flaw. The private equity (PE) investment into the health care market is already seeing some bizarre activity, from an M&A standpoint. Timeline Of Irresponsible Finance In Behavioral Health The key point here is to remember that hot markets are capitalized with leveraged buyouts (LBOs), the staple of PE. They attempt to use as much debt as possible so the carried interest is increased. The machine grinds forward if the growth rate exceeds the interest rates on the debt. Keep in mind, the entity being acquired nearly always holds the note. Traditionally, this was done so that the target companies being acquired could easily be jettisoned. That could be changing for the worse. The MHPAEA (parity) entered effect in November 2009. People remained aloof to this law’s existence through the ACA vote in Congress. By 2010,  treatment center owners had discovered the ease of abusing the new out-of-network benefits, essentially billing whatever they wanted and getting paid. By 2011, the LBO-Boom had awoken from its 2008-triggered hibernation. In fact, by 2011, the drug treatment sector underwent a paradigm shift, if not a complete 180-degree turn. Health care deals numbered 980, surging over 9% year-over-year. The B&MH sector was thrust into the world of five-star hotels, extravagant conference halls with equally overt booths serving gourmet cupcakes while hustling urine-tests. The urine-tests were the notable discrepancy, susceptible to fraudulent billing, duping investors into believing they were legitimate regulated medical services. In 2015, American Addiction Centers (AAC) was exposed by then-Furman University senior Chris Drose for withholding information to investors regarding a California indictment of a company executive for the case of murder and excessive billing for urine-based drug tests. The industry has been on life support since August 2015. The health care world corrected, but it was the PE deals that continued to keep the public players alive. Now, in 2018, PE firms aren’t making carried interest unless they’re exiting/selling. However, the ice is melting up on general health care sector consolidation fever. The LBO-laden sector began with the first place it used the risky loans since 2008: mental health care. It would make sense, given the effects of AAC and the timeline, that the epicenter of a health care crash could be at its very end. The panicked M&A behavior is strikingly like 2008. Where are we now? Valuations of these assets have always been centric to the purchaser. Like many LBO scenarios, they bask in the unseen nature of private equity. The high amount of leverage used has led to this melt-up. These valuations peak at over 30 times earnings in some cases. Nearly every major U.S. and European bank participates in securitization tranches for large commercial loans, exemplifying the absence of competition in commercial lending. "Unitranche" is a word that doesn’t autocorrect in a common spellchecker. However, Capital One has a whole division for it. These loans in health care are destined, in my mind, to be the 10-years younger cousin of the synthetic CDO. The synthetic CDO was the last artifact of the 2008 chase for high yielding investments. Unitranche loans combine highly levered senior and subordinate debt and don’t offer any protections -- nor have they been tested in U.S. Bankruptcy Court. It’s only a matter of time until one of the debt-laden public providers ends up in bankruptcy court. We could be primed for a challenging unraveling. This potential 2018-2019 financial crisis reveals questionable motives and fraudulent activities exacerbating the crumbling state of the B&MH industry. Who created it? A potent legislative cocktail I watched begin while I was in treatment myself a decade ago. How do we fix it? Use private wealth to right the ship. We can still de-escalate it to some degree. What will prove insurmountable? Health care supply shock. With out-of-pocket maximums and deductibles soaring, it’s going to be a truly interesting day when folks realize what a “subsidy” is. This is bound to happen at some point. The fraud still occurs, and it’s too much to ignore. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2018/06/19/seven-ways-to-ensure-finance-employees-have-a-healthy-work-life-balance/
Seven Ways To Ensure Finance Employees Have A Healthy Work-Life Balance
Seven Ways To Ensure Finance Employees Have A Healthy Work-Life Balance Creating a work-life balance for financial professionals can be difficult to master while still ensuring that customers are taken care of to their satisfaction level. While the stock market may close at a reasonable hour, you may be putting forth extra effort and time into keeping your customers happy -- but at what cost? Your personal life may be suffering from your strong dedication to work. Managers, therefore, need to work harder to ensure that their employees are filling the demand at the office, as well as their commitments at home. To help see this through, seven members of Forbes Finance Council weigh in on how they make sure their employees maintain a healthy work-life balance while keeping anxious clients happy. Here’s what they recommend: Members share strategies for a strong work-life balance. All photos courtesy of Forbes Councils members. 1. Ensure proper planning to relieve anxiety. Clients of planning-focused and tech-enabled advisors are often less anxious about their financial lives. These advisors offer their clients the ability to view their portfolio and financial plan online 24/7 to ensure they are invested properly and on track to achieve their goals. This results in fewer calls from anxious clients, which enables employees to maintain a healthier work-life balance. - Josh Fein, AdvicePeriod 2. Have weekly meetings, and buy fitness memberships. This is very important, as true client service in a financial planning firm can be very stressful. We do two things in terms of employee mental and physical health: We have weekly meetings where they can check in on any client issues, and we pay for our employees to be members at Lifetime Fitness to encourage them to keep their health and stress management as a priority. - Scott Bishop, STA Wealth Management 3. Communicate frequently and consistently. The saying “knowledge is power” comes into play here. The more confident clients are in their knowledge of the market, the lower their level of anxiety. The only way to arm clients with this confidence is to communicate quality information frequently and consistently. This will reduce the likelihood of them giving you a call at 10 p.m. when they get jittery. Work-life balance is a quality woven into the fabric of an organization. - Paul Blanco, Barnum Financial Group 4. Set appropriate boundaries. The "client first" mentality is a tough balance. It becomes easier with technology to give instant answers without paying attention to your time. If your business model won't allow for slow or no responses beyond 6 p.m., make sure you are taking one day a week to pay attention to yourself. If you can take one day away from phone calls, texts and emails, you will become happier and much more productive. - Scott Karstens, NFG Brokerage 5. Encourage time off, and don't micromanage. When my employees show signs of needing time, whether it's for a break or to refocus, I encourage this openly. Micromanagement kills enthusiasm and creativity, which ultimately leads to customers not getting what they are looking for. But, when we have the freedom to choose how we spend our time, we grow and mature in ways no one can force us to, and the end product is even better. - Daniel Wesley, Credit Loan, LLC Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 6. Work together, play together. Our office hours are 9 to 5, but many times we meet clients at 7 o’clock at night. The way we try to break that up is by also taking rest breaks when our brains are worn out. We tell employees to walk and interact over something unrelated to clients during the day. We encourage everyone to be healthy, so we pay for them to do races or triathlons, which also fosters teamwork. - Justin Goodbread, Heritage Investors 7. Realize work-life balance is a myth. The definition of balance is "an even distribution" or "equal." It's not realistic to tell your team to spend time equally between work and their lives outside of work. Setting expectations with your team before they are hired is critical. We let them know upfront there will be months they'll spend a lot of time at the office and slower months when they'll be able to spend more time doing what they love outside of work. - David Gass, Anderson Business Advisors, LLC
bae99974794b7db4573773b12e573790
https://www.forbes.com/sites/forbesfinancecouncil/2018/07/02/10-good-reasons-for-ai-to-keep-evolving-in-finance/
10 Good Reasons For AI To Keep Evolving In Finance
10 Good Reasons For AI To Keep Evolving In Finance Artificial intelligence (AI) is a hot topic right now, and everyone is wondering what its future applications will be. While most people think of technology when they think of AI, it can be applied to other industries, such as finance. Some AI may already be in use in limited circumstances within finance, and it is ready to have a much bigger role in the near future. But that brings up the question: What happens to the people? People don't necessarily have to be casualties of AI; in fact, they can benefit from it. We asked members of the Forbes Finance Council what were some practical and positive effects that we may see due to AI. The answers were forward-thinking and optimistic, underlining the idea that AI is not necessarily something to be feared but embraced. Members share positive expectations for AI. All photos courtesy of Forbes Councils members. 1. Clean up the industry.  I believe that robots will clear out the sales culture in our industry, where people are under-advised and oversold. The firms that remain will be advice-based and 100% client-centric. Today, many people think advisors are all alike. They will know the difference in the next 10 years. I constantly lecture new entrants into this industry that the future will look very different than the past. - Sharon Bloodworth, White Oaks Wealth Advisors 2. Free up time for more impactful human contributions.  Jobs that can be automated are time-consuming and tedious. AI can have those jobs. The big opportunity for finance professionals is the more tediousness that goes away, the more time there is for more impactful or value-add type work in your day-to-day job. Humans will keep things on the rails by keeping the technology running and help interpret data into actions. - Matthew May, Acuity 3. Drive creative thinking.  As AI improves processes and removes the need for human touch, there will be a large influx of positions requiring creative thinking, which AI does not provide. We'll see a huge shift in how employees think, and it will have as much of a positive impact as AI from an efficiency standpoint. Better thinking employees paired with more efficient processes (AI) will skyrocket the customer experience.  - Drew Gurley, Redbird Advisors 4. Build relationships.  AI taking over many of the routine tasks in the finance world will provide more time for professional advisors to connect and build a strong relationship with their clients -- instead of taking that time to crunch the data on their own. The data automation that comes from AI doesn't build the relationship with the client. In addition, the client is still going to have to decide which company they will work with. They are going to choose those individuals they are most comfortable with and who they have a relationship with. Professional advisors need to work on relationship-building skills, because AI is going to take over much of the typical tasks of today.  - David Gass, Anderson Business Advisors, LLC 5. Realize more perceived value.  As automation takes mundane tasks that are time-consuming and converts those to decision support, advisors can provide that which is most valued: wisdom. In the information-knowledge-wisdom spectrum, it is helpful to note that, today, the information you need make the correct financial decisions for you exists and is even accessible to you. The ability to digest that information into the most viable options from the facts and opinions (knowledge) can be absorbed by most. The wisdom is to have someone who knows you and your unique complexities and can correctly fit the solution for your future. That is the highest and best use of an advisor. - Paul Ewing, Prosperity Advisory Group 6. Predict consistently and reliably.  We can plan for the market and ride the waves, but having a more accurate prediction of market conditions will only help businesses react more effectively when there is a market turn. Being able to capitalize on a good market means more investment. Bracing for a downward trend is effective mitigation against damages, which could mean fewer jobs affected. Things like reporting and analysis of data take so much time when done manually, and there are things in the data even the best analysts might miss. If this were done via AI, the takeaway could be that much more telling and can lead to innovations we have yet to ponder. - Daniel Wesley, Credit Loan, LLC 7. Be more efficient.  The partnership between humans and AI is going to have many positive effects, but the one I am most excited about is the efficiency it is going to create for our industry and for our clients. AI is going to relieve employees of certain responsibilities, allowing them to hone in on different skills. This will create efficiencies in our overall business and improve employee satisfaction at work. From a client’s standpoint, AI is going to help them gain access to information and answers faster than human interaction, creating greater client satisfaction. I see nothing but a win-win situation for all. - Paul Blanco, Barnum Financial Group 8. Get strategic.  The rise in automation will enable finance professionals to spend more time on making strategic business decisions rather than spending time on analyzing the data itself. This will also create more avenues to analyze data, thus improving the quality of a decision. - Deepak Kedia, Motorola Solutions Inc  Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 9. Change advisor jobs for the better.  Some tasks that financial advisors once spent a lot of time on can now be automated, enabling them to spend more time on what matters most to clients. Technology can automate tasks such as rebalancing and tax loss harvesting, allowing advisors to focus more on things like estate planning strategies or cash flow planning, which often have a bigger impact and are more meaningful to their clients. - Josh Fein, AdvicePeriod 10. Move closer to standardized recommendations.  AI should bring the financial planning industry closer to standardized recommendations. Eventually, AI will be able to scan for physical responses to advice and recognize situations where adherence to the plan is at risk. Advisors will need technical competency to understand why the AI would recommend what it did and relate it back to people who have personal and behavioral biases, coaching and motivating clients to take the actions that are in their best interest. - Joe Elsasser, CFP®, Covisum, LLC
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https://www.forbes.com/sites/forbesfinancecouncil/2018/07/02/what-can-you-learn-from-the-michael-cohen-situation-regarding-your-ira/
What Can You Learn From The Michael Cohen Situation Regarding Your IRA
What Can You Learn From The Michael Cohen Situation Regarding Your IRA Shutterstock The Michael Cohen story continues to be a hot media issue and has even found a way to involve the United States Department of the Treasury. It has been reported that President Trump’s personal attorney, Michael Cohen, wired $130,000 to Stephanie Clifford, known professionally as Stormy Daniels, as part of a deal to sign a nondisclosure agreement that bars her from discussing an alleged encounter with Mr. Trump. Mr. Cohen reportedly used an account at First Republic Bank to wire the funds to Ms. Clifford. According to the Wall Street Journal, First Republic Bank then reportedly filed a suspicious activity report (SAR) with the Treasury Department. All financial institutions, including IRA custodians, are required to file a SAR with the Financial Crimes Enforcement Network, or FinCEN, when the financial institution suspects or discovers a known or potential criminal violation of federal law, including transactions that involve potential money laundering or violations of the Bank Secrecy Act (BSA). SARs form the cornerstone of the BSA reporting system. It is important to the United States' ability to utilize financial information to combat terrorism, the financing of terrorist activities, money laundering and other financial related crimes. Federal law 31 USC 5318(g)(3) provides protection from civil liability for all reports of suspicious transactions made to appropriate authorities. Most financial institutions and IRA custodians have an internal policy for reporting SARs. In general, it is the responsibility of all financial institution employees to report suspicious activity to their supervisor or BSA Officer. It is the responsibility of the BSA Officer to review any suspicious activity and make a recommendation on whether a SAR is required. In general, the BSA Officer must file a Suspicious Activity Report upon the discovery of certain events, such as: 1. Any known or suspected federal criminal violation or a pattern of criminal violations, aggregating $5,000 or more where a suspect can be identified. 2. Transactions aggregating $5,000 or more that involve potential money laundering or violations of the Bank Secrecy Act if the financial institution knows, suspects or has reason to believe that the transaction: • Relates to funds derived from illegal activities; • Is structured to avoid any BSA regulations; or • Is not the type of transaction in which the specified client would typically be accustomed to being involved in. The transaction seemingly lacks a business purpose. There a large volume of financial-related transactions that can be considered suspicious and could potentially give rise to an investigation for purposes of SAR filing, including Bank Secrecy Act/structuring/money laundering, bribery/gratuity, check fraud, check kiting, computer intrusion, counterfeit check, counterfeit credit/debit card, counterfeit instrument (other), credit card fraud, debit card fraud, defalcation/embezzlement, false statement, misuse of position or self-dealing, mortgage loan fraud, mysterious disappearance, wire transfer fraud, terrorist financing, identity theft and others. In general, a SAR report must be filed no later than 30 calendar days after the date of the initial detection of facts or 60 days after the date of the initial detection of the event. It is important to note that the filing of a SAR report does not mean that the suspected transaction is illegal or in any way unlawful. It is common for banks and IRA custodians to use the SAR report to notify FinCEN of transactions that the particular customer would not normally be expected to engage in, such as a wire to a party where there had been no prior transaction history. Banks and IRA custodians file thousands of SAR reports each year. For example, an IRA custodian would file a SAR if there was a concern about a potential prohibited transaction or fraudulent investment. It is unknown how many of the filed SARs turn into criminal investigations since the Department of Treasury does not relay its findings to the SAR submitter firm. However, some financial institutions and IRA custodians will close the account at issue after filing of the SAR. This decision typically comes down to whether the financial institution believes it is at risk of loss from the transactions and how strongly it suspects illegal activity. The SAR is an important tool for the Department of Treasury to help in preventing money laundering and is an important component of the anti-money laundering system. Whether it is a wire from Michael Cohen or an IRA investment into a private company, a SAR report does not mean the transaction is illegal or unlawful -- just that it raises some suspicion. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
fc951f57afc722c80870f789cd1b415b
https://www.forbes.com/sites/forbesfinancecouncil/2018/08/27/eight-factors-to-consider-before-retiring-from-your-business/
Eight Factors To Consider Before Retiring From Your Business
Eight Factors To Consider Before Retiring From Your Business It takes time to build a successful business, but after some time the owner will likely want to retire. However, many business owners don't think about what will happen to their businesses after they retire. There is a lot to consider to make sure the business you spent your resources building can survive with new management. We asked members of Forbes Finance Council what business owners need to do to retire successfully. Their advice centered on having a solid plan in place to make sure that the succession runs smoothly and that the business remains in business. Eight finance experts share their insight. All photos courtesy of individual members. 1. Plan Years In Advance One of the best things you can do is prepare years in advance. Identify the major areas that can hinder the sale. For example, if the company is built around the owner, this risk could alienate a buyer. You spent years building your company, so spend a few years getting it ready for sale too. - Justin Goodbread, Heritage Investors 2. Identify A Successor When the time comes to pass the torch as a business owner, it is imperative to have a detailed succession plan in place. Identifying your successor, or successors, early on in the process will give you time to ease them into their newfound responsibilities and give them the benefit of your wisdom and experience. Ensure that their goals for the future of the company align closely with your own. - Ismael Wrixen, FE International 3. Make Your Business Work For You If you own a business and it would fall apart the moment you stop working, you are working for your business instead of your business working for you. The time to think about your exit strategy is the moment you start your business, not when you are ready to exit. Your goal at the start of your business should be to be the chairman of the board, not the CEO. - Vlad Rusz, Vlad Corp. USA 4. Devise An Exit Plan Since most business owners rely on their businesses for income, a lack of planning means that their main source of income could be in jeopardy. The most important thing that a business owner can do is to meet with their tax and financial team, which can include many members — like an investment banker, transactional attorney, CPA, estate planning attorney and financial planner — to determine the best exit strategy. Typically, the exit strategy would involve selling to an entrepreneurial buyer (smaller buyer), a private equity firm (financial buyer), or a larger firm (strategic buyer). In meeting with the team, you need to find out the multiples you can sell your firm for and who would be the best possible buyers. If you can formulate an exit plan with a higher multiple, you will also have a better chance to truly cash out for the most money (if that is the most important goal). If your goal is to sell to a smaller buyer or keep it in the family, you will at least know the costs and benefits of that plan. Bottom line: once you know your options, you can make an informed (versus emotional) decision. - Scott Bishop, STA Wealth Management 5. Stay On After The Exit Consider staying three to five years through the exit to allow the buyer time to transition and structure better buyout terms for you as you help them grow through the buyout. Take this timed exit to allow the buyer to put their personality and processes in place. Use your relationships and reputation to help smooth any ripples it may cause. This requires you to be the chief relationship officer instead of the CEO. - Scott Karstens, NFG Brokerage 6. Build Solid Systems To provide a smooth transition from one leader to the next, you must have solid systems. The systems include, but aren't limited to, standard operating procedures (SOPs); key performance indicators (KPIs) for the overall company performance; decision and authority layouts detailing who can make decisions and has authority over specific tasks; responsibility layouts showing who is responsible for specific aspects of the business, such as line items on the profit and loss statement; and a clearly defined organizational chart. Providing clarity for all employees and managers is key in the transition process. - David Gass, Anderson Business Advisors, LLC 7. Delegate Responsibilities Confirm that all logistical areas are covered and that there are backup plans to build a seamless organization. Ultimately, having an understudy can make or break the ability to pass along the business. I believe that a well-grounded mentorship program would be very helpful in keeping cultural congruency and allowing a business to be a family that focuses on the overlap. -Penn Little, Bar Nothin' Capital Management 8. Instill Your Values During The Transfer As is often the case, proper planning is key. Transfer responsibilities little by little while instilling your values as a best practice. Many opt to still retain a stake in the business so they can keep an eye on how their business — the product of their blood, sweat, and tears — is running. - Atish Davda, EquityZen Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2018/10/19/what-could-cryptokitties-mean-for-the-future-of-ownership/
What Could CryptoKitties Mean For The Future Of Ownership?
What Could CryptoKitties Mean For The Future Of Ownership? (Disclosure: author holds investments in ether and Enjin Coin and recently entered a partnership with Enjin.) Before the widespread use of high-speed internet, distribution of software, music and movies was mostly anchored in physical media. Buyers of CDs and DVDs could sell the albums they no longer wanted or movies they had seen in secondary marketplaces such as eBay and Amazon or locally on Craigslist. Today, software is widely sold as a service (SaaS) and media is rented or licensed to users in a purely digital form. As this digital content is easily copied, distributors can embed software into media to limit and monitor its usage. Digital rights management (DRM) solutions restrict buyers to use the media inside of the environments provided by the seller – as is the case with Amazon’s media platform and Apple’s iTunes. The latter will further extend the permissions to as many as five devices. But like all DRM implementations, Apple and others do not enable buyers to resell their digital purchases. Such a resell function seemed technologically out of reach before a small team of developers introduced cartoon kittens virtually born on the public Ethereum blockchain in December 2017. (Full disclosure: my firm supports the open-source Ethereum blockchain community.) Digital Collectibles CryptoKitties made mainstream headlines, including one New York Times article (paywall), when some of the game’s digital collectibles were bought for over $100,000. According to Crunchbase, several prominent venture firms consequently invested a combined $12 million into the company that created these images of colorful felines. Around the same time, CNN reported that a group of 10 digital art collectors spent $1 million for the rights to the digital photo of a rose. This willingness of buyers to pay high prices for what are essentially easily reproducible digital images has observers scratching their heads in amazement, if not disbelief. So, why do people treasure some virtual items while assigning little to no value to others, and can virtual items truly be owned? What makes CrypoKitties and other virtual items collectible is a new blockchain-based function which assigns a single unique address on the public Ethereum blockchain to the item. Like most blockchains, Ethereum makes use of public-key cryptography. As a result, all collectibles recorded on this blockchain are visible on the world wide web through a block explorer such as Etherscan. However, the ability to move the ownership of the entry (public key) to a new address is limited to the owner of the matching private key. A growing number of apps, such as the one offered by Coinbase Wallet or Enjin Wallet (my company works with Enjin), support the transfer of these items directly from one user to another without the need to interact with another platform or middleman. Digital Birth A new generation-zero CryptoKitty is created every 15 minutes, according to TechCrunch. This “birth process” is algorithmically scripted inside of the game developers' smart contract system, and its result -- the new and unique -- is consequently recorded onto the public blockchain. The latter entry is presumed immutable, which means it cannot be altered without impacting the complete transaction history of all the blockchain’s transactions. It could be said the entry is the "birth certificate" of the digital art. As of today, the phenotype and genotype information that determine the outcome of a new breed of virtual cats are solely maintained by the game developer, but future standards may allow these trades to be recorded directly on public blockchains. Standards on public blockchains are achieved through a public proposal process and ultimately decided upon by a combination of developers and network participants. Prior to adding the non-fungible token standard that allowed the creation of the aforementioned cryptographic cat game, a general token standard had enabled the creation of thousands of new tokens on the Ethereum blockchain. The latter function -- the ERC20 Token Standard -- is, in my experience, largely accountable for the rise of initial coin offerings. Evolution Of Standards Building on the success of the non-fungible token standard introduced by CryptoKitties, newer proposals -- such as EIP 1155, which my company's now-partner Enjin's CTO co-authored -- can allow for the creation of specific quantities of blockchain-recorded items. While the items within a given batch are interchangeable, each is recorded individually to the public blockchain, creating "limited editions" of these particular assets that are individually transferable. I predict that the standard could allow artists to sell their creations to more than one collector; and, when applied to the real world, it could attest for the provenance of a production good. Fine wine and other collectibles could enter the marketplace at the time of inception and be bought and sold before entering a supply chain, which could potentially reduce distribution costs and fees from middlemen. Transfer Between Worlds Aside from software, movies and music, the business model of the computer game industry in particular is largely anchored in the distribution of digital products. According to a 2018 market report published by Clairfield International, the global video game market reached revenues of $78.6 billion in 2017. The report further postulates that in the future, “basically all the revenue will be generated through users’ in-game purchases.” I believe that advanced blockchain standards will empower game developers to create truly unique and limited in-game items that users will be able to trade outside of the confines of the game directly with other players or collectors using blockchain wallets. Moreover, the standards could allow users to transfer in-game items from one game to another. Conclusions The internet introduced new protocols for audio and video formatting that disrupted legacy media distribution technologies while simultaneously impacting ownership models that relied on physical products. Early blockchain protocols -- such as Bitcoin -- enabled the creation of digital bearer instruments, which allow ownership rights to be reliably transferred from one person to another without the sender keeping a copy of the virtual asset. (The European Central Bank touched on this concept in a 2017 paper.) While these digital products are generally fungible -- one bitcoin can be replaced by any other without impacting its value or function -- newer blockchain-based standards can allow for the creation of non-fungible virtual items. While digitally native products --such as software -- seem to be the obvious first use case for this new paradigm, I believe creators and producers are likely to take advantage of the blockchain-based ownership modules to circumvent proprietary platforms, which charge a toll for their rights-management functions. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
ea9f37d69413a91d61d65b72ed9e4f9b
https://www.forbes.com/sites/forbesfinancecouncil/2018/11/05/investment-lessons-learned-from-the-great-recession-one-decade-later/
Investment Lessons Learned From The Great Recession, One Decade Later
Investment Lessons Learned From The Great Recession, One Decade Later In the summer of 2007, just months after graduating from college, I was thrilled to be hired by Lehman Brothers, a top investment bank with 158 years of history. Less than a year into my employment, the economy slowed considerably. Americans were not able to pay back their home mortgages, which caused a collapse in home prices. In March of 2008, another top investment bank, Bear Stearns, was on the brink of collapse. They had significant exposure to these mortgages, which caused a massive liquidity crisis. In a desperate attempt to keep a fraction of their value, The New York Times reported (paywall) that Bear Stearns agreed to sell to JPMorgan Chase for a paltry $2 per share (the stock peaked at $170 per share a year earlier). It was the first of many disgraceful events that put this country into the worst recession it had seen since the Great Depression. The Monday after the Bear Stearns fiasco, Lehman Brothers announced its earnings. I will never, ever forget our then CFO assuring us that Lehman Brothers was going to survive. In her earnings call, she said we had the “leadership, the experience, the risk management discipline, the capital strengths, and certainly the liquidity to ride out the cycle.” The call ended with a standing ovation on the trading floor and a general view from employees that we were going to be OK. We were not OK. Just six months later, Lehman Brothers filed the largest bankruptcy in history. Thousands of jobs were lost, and billions of dollars reportedly vanished. I watched as my colleagues, my bosses and my friends lost most of their savings and retirement money. A decade after the Great Recession that reportedly resulted in the loss of more than half of the value of the stock market (measured from October 11, 2007, to March 6, 2009), it is important to reflect on the lessons learned in its aftermath. 1. No single person, government or entity has the answers. The economy is too vast and inefficient to be predicted accurately. For example, many Lehman employees apparently believed that the company had the answers to the future of Lehman Brothers. They were mistaken. Many Americans took out mortgages believing that the entities providing them were confident that they could pay them back but were left with high interest rates and low home valuations. Many relied on the government to govern the banks, but they were not properly overseen. 2. You can’t time the market. The question that Wall Street insiders and investors focused on during the recession was “where is the bottom?” I believe we have continued to do the same in the past nine years by trying to figure out where the top is. As an investor, trying to figure out the bottom or the top can be a futile task, and instead, I recommend that investor focus should be on time spent in the market. We do know that, eventually, markets tend to recover. So the more time you spend in the market, the better your chances will be. 3. Diversification is key. A well-diversified portfolio is your best defense against a volatile market. During the Great Recession, The Balance reports that the stock market lost over 50% of its value, but there were some areas of the market that did alright. Gold is a powerful hedge against global market instability, and Bureau of Labor Statistics data shows it performed very well during the recession. Government-backed bonds, like treasuries, continued to pay interest, and some defense stocks and biotech stocks had positive returns during this period. Volatility investing or buying volatility indexes had phenomenal returns during this time. A well-diversified portfolio would have still likely lost money during the great recession, but being well-diversified could have softened the fall. 4. Markets recover. The hardest part of losing money in the market is staying invested through the worst of it. It takes discipline and faith that your portfolio will recover. During turbulent markets, I remind myself and my clients that I have never seen a dip, a crash or a recession in the history of the U.S. stock market that the market has not recovered from. There was a long recovery after the Great Depression, which spanned for over a decade (1929–1939) -- but in the end it was recovered. The market reportedly lost about 11% after the September 11th terrorist attacks and had recovered the entire amount within a month. Continuing with the Lehman Brothers example, just a few days after its collapse, the stock market recovered by about 13% (SPY dropped to $113.80 on September 18 and hit $128 by September 19th). I still cringe when I see the Lehman Brothers logo. I learned too early in my career that investors have to be smarter and think harder than the organizations and governments that lead them. Markets cannot be timed, and I believe diversification is our best chance against market instability. Markets have recovered from pullbacks, recessions and even the Depression, but it requires time, patience and strength. Disclaimer: This article is informational only and is not suitable for everyone. It should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this article will come to pass. This article contains information derived from third party sources that we believe are reliable, but the author makes no representations with respect to accuracy or completeness. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. This article should not be regarded as a complete analysis of the subjects discussed. All information and expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change without notice. Steel Peak Wealth Management, LLC (“Steel Peak”) is an SEC registered investment adviser in California. For additional information about Steel Peak, refer to the firm’s disclosure statement as set forth on Form ADV, available on the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
ed2d77a13c5b86723977b1c2b10388ce
https://www.forbes.com/sites/forbesfinancecouncil/2018/11/08/the-top-estate-planning-mistakes-divorcing-women-make/
The Top Estate Planning Mistakes Divorcing Women Make
The Top Estate Planning Mistakes Divorcing Women Make Divorce is never an easy time. It can be a huge adjustment period for most people, but women, in particular, often find that they are affected most by the financial aspects of divorce. According to a report from UBS Global Wealth Management, 56% of married women leave control of major financial planning and investing decisions to their spouses. It’s no surprise, then, that many women find themselves financially overwhelmed when divorcing. Although you may be dealing with a lot of emotion at the beginning of a divorce, it's important to stay focused on certain issues, such as your inevitably changing financial situation, especially if you have children. While it's easy to get caught up in taking care of the different aspects of your immediate financial needs, it's arguably just as important (if not more so) to think about the future and plan ahead. It's never too soon to tackle this often-overlooked task and learn how to protect yourself (and your children) while avoiding these estate planning mistakes that divorcing women tend to make. Not Reevaluating Their Will Now that you're divorced, it's likely that your will needs to be reevaluated and updated. Divorces usually mean a change in assets, and a will needs to reflect those changes. If your spouse was listed as a beneficiary, you may want to make changes there as well. Not Revisiting Their Children's Guardianship Plan Nobody ever likes to imagine someone else raising their children, but this is a crucial, if unlikely, possibility to plan for, just in case. Without designating a guardian, there's no telling who, with absolute certainty, would get custody of your children if you were to pass away. If you and your spouse already created a guardianship plan before you divorced, and you now have custody, it may be time to revisit this plan. The appointed guardian may be one of your former spouse's close friends or family members, for example -- a choice you may no longer be comfortable with. Now that it’s just you making these decisions, it's more critical than ever to designate someone to take care of your children should you pass away before they're adults. If you don't want it to be your former spouse, it's important to designate the person of your choice. The bottom line: it's your decision, and it's one that you want to make wisely for your children's sake. Not Planning For All Assets You may be entitled to a portion of your former spouse's deferred savings plans, such as a 401(k), IRA or other eligible savings plan. Many divorcing women are unaware of just how many assets existed in their marriage and what they may be entitled to. Once you've claimed your fair share, it's important to know that you can designate beneficiaries (such as your children) for these plans, which is an essential part of your estate plan. Failing To Incorporate Trusts Into Their Estate Plan The future is unpredictable, and trusts can help protect your assets (and have them distributed according to your wishes) in certain situations. For example, your adult children might have creditor issues or get divorced. Putting a trust in place can ensure that your money still goes to whom you want it to go to after you pass. Trusts can also be used for other purposes, like deferring asset distribution until your kids are legal adults. Failing To Plan At All The biggest estate-planning mistake someone can make is not having a plan at all. According to a 2016 Gallup poll, nearly 60% of Americans don't have a will or estate plan in place. Many people are under the false impression that their next of kin will automatically inherit their assets, but this doesn't always happen, and it's not an easy process. When someone dies without a will or estate plan, their assets go through a costly and time-consuming process called probate. Your children, who are already grieving your loss, will have to spend a great deal of time and money on this process. This can cause them even more unnecessary pain and heartache. In the end, the laws in your state will determine who inherits assets when there is no will or estate plan in place, and the final decision may end up being against your wishes. Estate planning may be the last thing on your mind right after a divorce, but it's more important than ever to make it a priority. Not Seeking Help From A Professional Many women who are new to the estate-planning process make the mistake of going at it alone. A financial advisor who is experienced in estate planning can be an invaluable resource during this time. Additionally, it’s crucial to enlist the help of an experienced estate planning attorney. Lawyer listing websites like Avvo and Justia can be a great place to start and can allow you to narrow down your search by finding estate planning attorneys in your area who are highly rated. Without the help of these professionals, it's likely that you will overlook important aspects of the estate-planning process. Take comfort in knowing that your future, and your children's future, will be taken care of according to your wishes by working with an experienced team. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
4f1e1ba0d40b946c8c35de6dc36765ff
https://www.forbes.com/sites/forbesfinancecouncil/2018/11/15/making-social-media-additive-not-addictive/
Making Social Media Additive -- Not Addictive
Making Social Media Additive -- Not Addictive (Disclosure: At the time of writing, the author holds stock positions in Facebook and Salesforce.) People spend 1 billion hours a day on YouTube. That’s enough person-hours to build 142 Empire State Buildings every single day. The amount of time and energy consumed by entertainment technology and social media is staggering. An NBC News analysis suggested Facebook alone was responsible for up to $3 trillion in lost productivity. While social media clearly has many benefits, it raises questions about whether these interactions could be translated into tangibly productive activity -- and still be enjoyable. Can all this brainpower be channeled in novel ways to create new and enriching byproducts? More Symptoms The most "liked" Instagram post of all time is a picture of Kylie Jenner’s newborn baby clutching Kylie’s perfectly manicured thumbnail. It's a great picture; Oxford University research actually suggests cuteness plays an innate role in baby caregiving. However, tech firms and content creators can now take advantage of how we’re wired on a scale never before seen. Now, the beneficiary isn’t the baby who gets taken care of by his/her entire village. It’s the big tech company that sells more ads or a celebrity cosmetics startup that gets free marketing. It’s unclear whether it’s healthy for 18 million people to obsess over a stranger’s baby. But it’s worth noting that, if each person looked at that picture for 10 seconds, that sums to roughly 25 person-years of effort (assuming an eight-hour workday). That’s even more time than it took to develop Instagram itself. Dangerous Incentives Unsurprisingly, Google’s, Facebook’s and Twitter’s true “product” is advertising. Advertising-based business models are a dominant paradigm in tech, and they’re vastly more effective with more user attention. This generates not only more ad impressions but also valuable data advertisers use for hyper-targeting. Cutthroat competition for ad spend has created an arms race. Technology has become ever more captivating in a Darwinian way. As we use it, more A/B tests are run and more data is generated. It’s all used to make these products even more engaging -- to the point of arguably becoming addictive. More than half of Facebook users say they use Facebook “several times” a day. Recently some prominent tech leaders have voiced concerns about social media and the vast amount of data some companies are collecting: “Facebook is the new cigarettes. It’s addictive. It’s not good for you.” - Marc Benioff, CEO, Salesforce “The narrative that some companies will try to get you to believe is: 'I've got to take all of your data to make my service better.' … it's a bunch of bunk” - Tim Cook, CEO, Apple Are you truly enriched by that funny cat video the genius algorithms know you’ll “like”? Are we at risk of a technology-driven attention singularity, where these products become such an irresistibly enjoyable black hole of our time -- leveraging every quirk about what we humans find interesting -- that they detract from productive activity? It’s a world where we’re all zombies involuntarily gazing at our own navels. The consequences would be devastating. A Promising Cure Of course, there’s nothing wrong with entertainment and socializing. Helping people connect and build relationships are admirable goals, regardless of whether you think they’re being accomplished. Entertainment, talking to friends and “decompressing” can be valuable even through the lens of productivity. A research study by University of Warwick economists suggested happiness makes people 12% more productive Communication and collaboration are also incredibly powerful. Harnessed properly, they yield amazingly valuable results vastly beyond any individual’s capabilities. For example, take open source initiatives like the Linux kernel. Some 15,000-plus software engineers built and maintain this world-changing project. In fact, about 96% of internet web servers run on Linux, plus more than 80% of smartphones globally. There are other examples: the corpus of knowledge in Wikipedia or even restaurant reviews on Yelp. Each is a valuable byproduct of large-scale collaboration and, in a sense, collective intelligence. Investing With Collective Intelligence Social platforms centered on collaboration and collective intelligence have different incentives from those that are purely ad-driven. In ad-driven platforms, often the incentive is engagement for the sake of engagement. With purpose-built social platforms, it’s more natural to focus engagement on specific, productive results that benefit all. At the company I co-founded, Nvstr, we’re applying this approach to investing. In the U.S., financial literacy is lacking. One study found that 33% of adults in the U.S. have $0 saved for retirement. A 2013 NerdWallet survey suggested that fewer than one out of five people even know what type of account they need to buy stocks (a brokerage account). That’s not good. There’s good reason to believe collaborative platforms can play a leading role in solving this problem. The NerdWallet study also found that the No. 1 reason people selected a particular online brokerage was a personal recommendation. This is corroborated by general findings of the Pew Research Center that family and friends are more trusted sources of information than news organizations, governments, financial institutions and general social media. This suggests collaboration with people you know and trust, and growing that network, can be a powerful solution to financial literacy problems. Furthermore, it’s not just beginner investors who benefit. When I was at hedge funds and Wall Street firms, I saw how debate and discussion yield valuable investing insights -- and, importantly, identify unforeseen risks. Our thesis at Nvstr is that investors of all skill levels can become more informed when they leverage the collective experience of others. There’s almost magical potential in platforms that possess the trifecta of being enjoyable/engaging, avoiding dangerous incentives stemming from ad-monetization and creating genuinely useful collaborative outputs that solve real problems. Purpose-built, collaborative communities are a very promising direction. This is not investment advice or a recommendation.  Nvstr Financial LLC is a member of FINRA and SIPC. Visit Nvstr.com and FINRA’s BrokerCheck for more information. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
f02deb642ba52cbce333c1947213de9f
https://www.forbes.com/sites/forbesfinancecouncil/2018/12/04/eight-financial-tips-to-get-out-of-crushing-debt-faster/
Eight Financial Tips To Get Out Of Crushing Debt Faster
Eight Financial Tips To Get Out Of Crushing Debt Faster Americans are in debt -- a lot of it. A recent survey found that the average 25-to-34-year-old carries $42,000 in debt, and that doesn't even include mortgages. Because of this financial burden, many adults are delaying life milestones and putting off things like buying houses, getting married and starting families, and it seems there is no stopping the cycle. However, the experts at Forbes Finance Council have some smart strategies for young Americans to rid themselves of debt quicker. Follow their tips to give yourself the financial freedom to live your life on your own terms. Members share advice for eliminating debt. All photos courtesy of Forbes Councils members. 1. Pay Your Smallest Debts Off First The sooner you can reduce debt, the sooner you can grow your assets. Many clients find the "debt snowball" method useful. They focus on paying off their smallest debts first (in total) and then systematically roll all those monthly payments into the next loan(s). This may not be the cheapest in terms of interest payments, but the momentum and sense of accomplishment can build rapidly. - Gregory Ostrowski, Scarborough Capital Management 2. Track Your Monthly Cash Flow The first thing you need to do is look at your monthly cash flow and see where your money is going. If you are truly serious about getting out of debt, you must cut out optional (and sometimes spontaneous) spending. Once you cut out the fat, start making dents into the principal of your debt. Stop making minimum payments. Start with your highest interest debt and have a plan to pay it off. - Scott Bishop, STA Wealth Management 3. Make A Savings Account And Budget People should set a budget by making a savings account and having a percentage of their paycheck directly deposited into this account. The funds from this account should be used to exclusively pay off any debts that they may have. By setting aside a pre-allocated amount monthly, they will be able to pay down their debt quicker. - Ben Jen, Ben Jen Holdings SLLC 4. Understand The Difference Between 'Want' And 'Need' Younger people often live above their means and don’t differentiate between what they want and what they need. Coming up with a strict budget starting in college, which includes working and saving "x" amount of each paycheck, will make your expenses and bills more predictable. You can make a point to cook more meals at home and only splurge on something you enjoy (within reason) a few times a month. - Jared Weitz, United Capital Source Inc. 5. Start Paying With Cash To rid yourself of debt quickly, start using cash. In the midst of this spend change, pay your smaller debts first to build momentum and gradually work toward your largest debts one by one. By the time you pay off a bulk of your debt, you will be accustomed to using cash and will be able to pay off your debt quickly. Once you pay off your debt, create a savings plan for up to five goals. - Geanette Rodriguez-Ojeda, ARRI Rental 6. Leverage Technology Debt can stifle our progress toward major life milestones or, worse, block us from them entirely. Today there are apps that are designed to solve this very problem using algorithms and automation to make smarter financial choices for us. From paying down debt to putting money towards savings and investments, technology allows us to set goals and track our progress more efficiently. - Jason Brown, Tally App Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 7. Automate Your Payments The first step is to reduce unnecessary spending and exhaust all options before taking on more debt. This can mean opting for a cheap, fuel-efficient car or living in a shared space further from the city. Automate payments after each paycheck to help ease the mental burden of paying off debt and to keep your spending in check. Pay off higher-interest debt first so that interest costs are kept low. - Atish Davda, EquityZen 8. Start Small And Build Good Habits Cut unnecessary spending, pay more than the minimum payment and fight against instant gratification. This is all great advice, but how do you fight against all the advertising telling you the exact opposite? If you are serious about getting out of debt, you have to build good habits. The way to do it is to start small, paying just a few extra dollars more than minimum, then increase gradually. - Vlad Rusz, Vlad Corp. USA
6266f5b69ebfc3049a66544b87110077
https://www.forbes.com/sites/forbesfinancecouncil/2018/12/06/what-the-rise-of-the-automobile-can-teach-us-about-cryptocurrency/
What The Rise Of The Automobile Can Teach Us About Cryptocurrency
What The Rise Of The Automobile Can Teach Us About Cryptocurrency Few American innovators can match the success of Henry Ford. According to legend, when asked how public demand factored into his automotive success, Ford quipped, “If I had asked people what they wanted, they would have said faster horses.” There’s no denying the power of understanding what a customer base wants and delivering it to them, but Ford’s genius was seeing beyond the restrictions of the status quo and instead creating something new that not only captivated the marketplace but fundamentally changed the fabric of society. Ford’s famous quote resonates well with the current state of cryptocurrency. Crypto has arisen in an era in which many segments of the public, fueled by growing discontent and distrust for the banking industry after the Great Recession, have yearned for an alternative to those behemoth institutions. It combines elements of a currency that frees users from the big banks, a payment system with low fees and an investment vehicle that fits the ever-evolving scope of the digital age. Ford didn’t build the Model T in a day. He didn’t start to mass produce it the following week, either. And the car certainly didn’t show up in many driveways the next month. It took a revolution from the inside out to convince the masses to put their horses back in the pasture and turn to the wonders of the automobile. That sort of methodical progression is an excellent parallel to the current cryptocurrency environment. Cryptocurrency and the blockchain technology that powers it are every bit as revolutionary to global finance as the Model T was to transportation. They are also as foreign of a concept to most of the public as the Model T and mass production lines were 110 years ago. So, in order to better position ourselves to capitalize on the world-altering innovations of today, let’s see what we can learn from those of the past. The Trouble With Transitions Although it doesn’t receive a lot of attention in most textbooks, the move from the horse to the automobile was a long and difficult one. It took nearly 50 years for the latter to completely replace the former. Ultimately, the move forced changes in multiple industries and environments, from the condition of roads to the advancements of maps to an entirely new section of laws, including local, state and federal. This will likely sound familiar to cryptocurrency users. Governments around the world are enacting entirely new laws and regulations to mandate every facet of cryptocurrency, but it’s a slow process that requires studies and documentation at every step. This new paradigm to facilitate payments is completely new and is constantly being upgraded and refined. And the transition for many, of going from fiat currency and traditional investments to digital currency and high-tech investments, will take some getting used to -- just as many American struggled to get into a car rather than onto a horse. New Industries Born The number of new industries born as a result of the automobile industry is almost too many to comprehend: gas stations, auto mechanics, tires, car stereos, car washes, tools, paint, body shops -- the list goes on and on. One product line has spawned millions upon millions of jobs and created an entire industry. As the industries for cryptocurrency and blockchain begin to expand and take shape, they are providing analogous opportunities for new types of companies, such as exchanges, wallets and Bitcoin IRAs. However, that’s really just the tip of the iceberg. As more and more enterprises become comfortable with the security and effectiveness of blockchain, we will surely see a host of completely new and innovative business models. Competition Breeds Further Innovation While the average person might believe Henry Ford invented the car (he didn’t) and the mass production assembly line for cars (he didn’t do that either), he was simply building on what his competition had already done to deliver a faster, less expensive, better product. Ford’s line drove his competitors to achieve wonders of their own -- even more than a century later. The same will hold true with cryptocurrency -- in fact, it has already begun to happen. While most people automatically think about bitcoin when they hear of cryptocurrency or blockchain, countless other players have already emerged and are continuing to do so, with each trying to further revolutionize the market and build on the success of the ventures that have come before them. Think about the Model T compared to a modern Corvette. They’re both cars, but every single component of the sports car outstrips the sedan of yesteryear, and it has features that Ford’s engineers never could have dreamed of. In those early years, every person who purchased a Model T was guaranteed one thing: an exhilarating ride on bumpy roads. Things are not all that different in these first years of cryptocurrency. There are highs and lows associated with the industry, but incredible opportunities are visible not only here and now but also over the horizon. As blockchain technology adoption increases and the industry matures, the future is looking very bright. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
3e4bade53eb422bdd7c3522d522bbece
https://www.forbes.com/sites/forbesfinancecouncil/2018/12/14/business-owners-heres-how-to-tell-if-your-financial-advisor-offers-the-capabilities-you-need/
Business Owners, Here's How To Tell If Your Financial Advisor Offers The Capabilities You Need
Business Owners, Here's How To Tell If Your Financial Advisor Offers The Capabilities You Need If you are part of the growing population of "overlooked millionaires" in the U.S. — often defined as investors with between $2 million and $20 million in assets who are too big for most advisors to serve, yet too "small" to merit the attention of large Wall Street groups or family offices — it is possible to find advisors who offer the right blend of services and expertise to serve your needs. There are two questions that business owners in particular still need to ask themselves, though, even if their advisor’s team features the kind of cross-functional mix of professionals that can otherwise support their estate planning, risk management, tax and other goals: 1. “Does my advisor really ‘get’ my business, including its operations and results?" 2. "Or does he or she treat it as an asset that is outside their purview when it comes to my financial plans?” If the first answer is ‘no,’ even an otherwise-great advisor may be doing you a disservice. In my experience as the president of a financial services firm, I've found that business owner clients often need advisors who can fluently make the connection between the business’s performance and the likelihood that the client will be able to achieve his or her goals for retirement — and help devise and implement solutions when potential problems arise. One qualifier: For entrepreneurs whose businesses have the resources to retain outside consultants or investment bankers — or even employ an in-house mergers and acquisitions team — it may not be necessary to obtain some of the services below from a financial advisor. Even in such cases, however, it is important to work with an advisor who understands the close connection between the business’s results and the owner’s financial plans, and who can provide insight based on his or her long-term relationship with the business owner. Here are some of the key questions to ask when you're assessing an advisor’s capabilities in this area. Does the advisor explain — in specific terms — how disruptions in your business could impact your goals for retirement? Many business owners are experts at forecasting results based on various performance indicators, but predicting the likelihood of achieving the retirement lifestyle they want can be a different concept entirely. For advisors to truly serve business owners’ interests, I believe they should offer regular and detailed impact analyses of what will happen to the client’s post-career lifestyle if the company’s cash flow or valuation should slip by 20%, 40% or even 60%. These conversations may not be pleasant, but they can help business owners plan ahead in the event their company experiences unexpected difficulties. Even better: They can serve as the starting point for a productive dialogue on any obstacles the business may be facing, whether they're macro changes in the company’s industry, lack of access to capital, or other issues. Clients can assess an advisor’s practices in this area by asking them about their client account review processes, including how they determine whether and when a change in direction may be needed. If the advisor’s response does not include a detailed periodic look at the business and its prospects, it may be best to keep searching. Can the advisor help you identify challenges in the business and map out solutions? This certainly doesn’t show up on the Series 7. The advisors who are best positioned to help many business owners pursue their goals, however, are the ones who have figured out how to leverage their financial expertise to add this capability to their service platforms. I believe advisors should have the skills to interface with the client’s CPA, CFO or other corporate finance professionals to identify steps to address the company’s most immediate challenges, whether that means shuttering unprofitable operations, making sensible investments to capture new opportunities or accessing new funding sources. Business owner clients who would benefit from these offerings shouldn't hesitate to ask prospective advisors whether they have the skills to assist with business strategy if necessary, either via in-house capabilities or through collaborative relationships with the business's third-party experts. This may include, for example, the ability to develop financial projections and valuation estimates to see the potential impact of various decisions on the business or drafting presentations for potential funding sources. Can the advisor help with succession planning and structuring an exit transaction? Independent financial advisors are small-business owners in their own right, and succession planning is a major area of focus for them. Business owners can, therefore, seek out advisors who use the expertise they have developed through their own succession planning processes to provide advice on exit strategies. As business owners know, every company needs strong leadership in place when the founder exits in order to retain its value. To help entrepreneurs address their goals, advisors can provide perspective on factors such as whether a client’s children are prepared to take over or whether bringing in an outside CEO might be a better solution. Advisors can also help to map out structuring and financing options to facilitate a succession-driven exit transaction. For example, they may be able to identify appropriate funding sources in situations in which the client’s children are well-prepared to take over the company but lack the capital to complete a transaction within a workable timeframe. To get a sense of an advisor’s approach to this subject, clients can ask about the advisor’s own succession-planning preparations and ask for examples (on a no-name basis) of how he or she has leveraged the experience of developing those plans to help business-owner clients in the past. Business-owner clients have complex financial needs, not just in their estate planning or charitable aspirations but also in driving the type of performance and valuation levels for their businesses that can help them work towards the post-career lifestyles they deserve. Rather than settling for advisors who overlook this complexity, many business owner clients could be better served by working with advisors who offer the appropriate capabilities to address business issues that may impact their clients’ personal financial plans. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
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https://www.forbes.com/sites/forbesfinancecouncil/2019/01/30/strategies-designed-to-maximize-interest-on-large-business-bank-accounts/
Strategies Designed To Maximize Interest On Large Business Bank Accounts
Strategies Designed To Maximize Interest On Large Business Bank Accounts An issue we frequently see business owners struggling with is poor cash management within their bank accounts. We see businesses creating unnecessary complexity while collecting unnecessarily low interest rates rather than utilizing a strategy that may help improve their cash management. To understand this strategy, let's first take a look at three categories of investments that businesses commonly make. Three Categories Of Business Investments Liquid The Liquid category includes money that is needed for day-to-day business operations. This is typically invested in business checking accounts, savings accounts or money market accounts that are highly liquid. Future Opportunity The Future Opportunity category is money that may be needed at some point for future opportunities. The allocation of investments needed for this category can vary greatly based on a business's risk tolerance, time horizon, tax situation and a variety of other factors. Emergency The Emergency category fits in between the Liquid category and the Future Opportunity category. Generally, this category needs to be invested securely and needs to be relatively liquid in case an unexpected need arises. Frequently, business owners utilize various bank accounts for investments in this category, and this is where we find lost opportunities. Why are businesses missing out? As a business grows, so does the amount of money that needs to be held in the Emergency category. Once the amount in this category exceeds $1,000,000, the complexity of managing this money increases, and we find businesses may miss out on significant amounts of interest. I believe the one reason this problem persists is related to Federal Deposit Insurance Corporation (FDIC) coverage. Essentially, FDIC coverage ensures you will receive the balance of your covered accounts at an FDIC-covered bank if the bank fails. Typically, the coverage limit for this insurance is $250,000 per depositor per FDIC-insured bank. If you work with a banker who is creative, you might be able to increase the amount of FDIC coverage to $500,000 and even beyond; however, this becomes increasingly difficult as your account balance grows. Existing strategies have their disadvantages. To remedy this issue, many business owners will simply roll the dice and have more money in their bank accounts than what FDIC insurance will cover. The benefit is simplicity, but it also means potentially losing substantial amounts of money if that bank fails. It is also unlikely that the one bank is consistently offering the most competitive interest rates, so you may end up losing out on interest. Others will remedy this issue by opening accounts with multiple banks. While you maintain FDIC insurance coverage on all amounts, this also creates more complexity. You have to open and monitor multiple bank accounts, manage multiple logins and keep track of multiple 1099 tax statements. Additionally, your selected banks may not continue to offer competitive interest rates. Another (Perhaps Better?) Solution One possible solution to these issues is to create an FDIC-insured laddered CD portfolio owned inside a brokerage account. This solution provides business owners with simplicity. Here's why: • You can own CDs from multiple banks with different maturity dates designed to help ensure that you maintain your desired level of liquidity. • You can make sure you do not exceed the $250,000 FDIC coverage limit with any one bank. • You may have a greater ability to earn competitive interest rates. The CDs that can be purchased inside brokerage accounts can generally command competitive interest rates, as banks are forced to compete on a public platform. • You only need to open one brokerage account where you can hold multiple bank CDs. This enables you to have one login and one 1099 statement. Plus, you can shop for the most competitive CD rates from multiple banks on a daily basis within your account as the need arises. Nuances With CDs In Brokerages Accounts • If original issue CDs are held to maturity, you will get the original investment back, just like CDs purchased at credit unions, community banks and national banks. If you choose to sell your CDs prior to the date they mature, you may receive more or less than the amount you originally invested. • Not all brokerage CDs are FDIC-insured. Make sure that you only purchase FDIC-insured CDs. • Some banks reserve the right to pay back all your investment before the CD's maturity date. If interest rates go down, the bank could instead issue new lower-interest-rate CDs to new investors, avoiding paying you the higher interest rate. You can avoid this by purchasing non-callable CDs, which will continue to pay out the promised interest rate until the CD's maturity date. A Final Note It is not uncommon in today's interest rate environment to see businesses succeed at becoming fully FDIC-insured with less cash management complexity, all while earning more money on their bank accounts. Owning FDIC-insured CDs within a brokerage account may be a helpful strategy for those desiring to earn competitive guaranteed interest rates on larger sums of money. It is worth noting that this strategy does have limitations, specifically for those with over $5 million held in cash accounts. For ideas or suggestions on how this could be implemented for you, we encourage you to talk to an experienced financial professional. Disclosure: The author of this article does not provide legal or tax advice. Any discussion of either is for informational purposes only and you are strongly encouraged to seek appropriate counsel prior to taking action. Securities offered through Triad Advisors, LLC, member FINRA/SIPC. Advisory Services offered through Bernicke Wealth Management, Ltd., an SEC registered investment adviser maintaining a principal place of business in Wisconsin. Bernicke is not affiliated with Triad Advisors, LLC. Registration does not imply a certain level of skill or training. Certain information contained in this article is derived from sources Bernicke believes to be reliable; however, the Firm does not guarantee the accuracy or timeliness of such information. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
d7a09cd435dbd1bccfa432ec77581fff
https://www.forbes.com/sites/forbesfinancecouncil/2019/02/04/why-automation-is-the-next-great-equalizer/
Why Automation Is the Next Great Equalizer
Why Automation Is the Next Great Equalizer “What are your financial hopes and dreams?” If I posed that question to a random person on the street, they probably wouldn’t profess a desire for a savings account that yields more interest or a credit card with better rewards. Instead, they might say something like: • “I wish I didn't have debt.” • “I wish I saved more money.” • “I wish I was financially secure.” Most people tend to think in terms of broad goals, which is why it’s so perplexing that today’s banking industry is organized around the idea of financial products or “tools.” When I go to a bank, there are different tools that I, as a customer, can use for myself: checking accounts, savings accounts, mortgages, car loans, certificates of deposit and so on. The bank is essentially a store filled with financial tools, and it’s up to me to determine how to use them. Consider a certificate of deposit. First, I need to recognize that I have excess cash. Then, I need to calculate whether I’ll need that money in six months. Finally, I have to find the time and motivation to actually make the deposit. As a customer, I’m the one wielding this financial tool for my own benefit. Now, consider how ultra-wealthy people interact with their money. They hire an accountant, a tax lawyer, an investment banker and maybe a real estate professional. These people are hired to perform “jobs,” and they use tools -- financial instruments, legal structures, etc. -- to complete the jobs. Like most people, ultra-wealthy people think in terms of broad goals, too. They just have the means to hire others to achieve those goals. So, why should it be different for anyone else? Access To An Intelligent Service Imagine a world where the performance of these jobs is available to everyone, regardless of financial status: a world in which we all have access to an intelligent service that’s looking after our financial affairs and doing jobs to improve the quality of our lives at all times. To perform these jobs, this service needs to fully understand what I, the customer, want to achieve. Once it knows my goals and which jobs I need to have done, the service will then use the tools on my behalf. Automation and machine learning will allow the intelligent service to provide me with what ultra-wealthy people already have. The service will perform all of these jobs and has the expertise to do them in ways that are more efficient and more effective. Think of how this intelligent service might change mortgages. Owning a house is a common financial goal in America, yet many people have no idea where to begin -- that is, they’re unfamiliar with the tools they must use to achieve this goal. Here’s a scenario: I want to buy a house and enlist in the intelligent service. The first thing the service does is help eliminate my outstanding debts, which allows me to start saving money. It also improves my credit score, and that helps me down the road. Once my debt is paid off, I begin to save money for a down payment. While I’m saving money, I establish a framework for the type of house I can afford; that could be as straightforward as calculating a price point within my range or as complicated as analyzing my earning potential and seeing which markets are best positioned to maximize my income. The service comes back to me with options within my price range, and I make a selection. Once I’m ready, the service sets a target one month in advance and pays off my credit cards before the statement closes to boost my credit score even further, which lowers the interest rate on my mortgage. Then, the service matches me in an invisible marketplace with, mathematically, the best mortgage available. To me, it feels like my mortgage is with the intelligent service, but it’s actually provided by one of the many banks competing for my business. Finally, once I’m actually in the house, the service continues to monitor my finances and ensures I’m able to stay in the house by staying on top of my bills and other payments. The difference between selling a tool -- in this case, a mortgage -- and performing a job -- helping someone become a homeowner -- is enormous. I believe this level of abstraction for the customer, in which I understand the job performed on my behalf but not necessarily the tools used, is our future. The intelligent service will remove the confusion and frustration that comes with tedious, time-consuming financial decisions. This level of innovation will have the power to give people more control over their own lives. It could meaningfully change the way our society spends its time, and the benefits are boundless. In a world with this intelligent service, a monetary surplus will immediately be transferred from the financial system to the customers because excess profits evaporate in a highly efficient market that’s mediated by automation. Essentially, the service will allow people to retain more of the wealth they create. What’s more, it will eliminate the emotional burden of financial work. For many people, that’s the dream. Everyone has financial hopes and dreams. And most want someone else to do the work for us. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
ccf42213f7812c6759abf8dd1c8a5efb
https://www.forbes.com/sites/forbesfinancecouncil/2019/02/28/handling-of-179d-is-emblematic-of-larger-tax-code-problems/
Handling Of 179D Is Emblematic Of Larger Tax Code Problems
Handling Of 179D Is Emblematic Of Larger Tax Code Problems The Tax Cuts and Jobs Act was voted into law in late 2017, but its reforms once again did little to address the bizarre tradition of tax extenders. Tax extenders are provisions in U.S. tax code that for years have been “permanently temporary.” Congress is required to extend these provisions on an annual basis — per language within the provisions — and often does so retroactively. Take for example the Bipartisan Budget Act of 2018, passed in February 2018. The legislation included a one-year extension of the 179D Energy Efficient Building Deduction for properties placed-in-service before Dec. 31, 2017 (Sec. 40413). It’s sound policy, yet structurally limited to work as lawmakers intended. The 179D deduction was first introduced under the Energy Policy Act of 2005, which stipulated that properties meeting certain energy savings criteria and placed in service between Jan. 1, 2006, and Dec. 31, 2007, were eligible for a deduction of up to $1.80 per square foot. According to the act, taxpayers seeking a full deduction were required to demonstrate an annual reduction of power costs “with respect to the interior lighting systems, heating, cooling, ventilation, and hot water systems of the building by 50 percent or more in comparison to a reference building which meets the minimum requirements of Standard 90.1-2001,” a reference to standards set by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE). The first tax cycle revealed a handful of problems with the deduction. First, modeling and certification requirements limit the deduction’s viability to larger properties. The provision requires modeling software approved by the Secretary of Treasury and certification of property installation by an engineer or contractor licensed in the jurisdiction where the building is located. Because the deduction is tied to square footage, only properties with substantial square footage can justify the investment and engineering time required. Ironically, these modeling and certification requirements negatively impact an allowance that provides for transfer of the deduction in the case of property owned by a “Federal, State, or local government or a political subdivision thereof,” language intended to lower the cost of energy-efficient buildings for government subdivisions. Another problem is the deduction amount itself. At a 35% rate, taxpayers considering energy efficiency upgrades save only $0.63 per square foot. For buildings costing $200 per square foot or more, that level of savings does not always justify a large change in systems. As such, in my experience, very few taxpayers have adjusted designs to meet these ASHRAE standards since the law’s enactment, with lighting systems being the only exception. These restrictions narrow effectiveness but not nearly to the extent caused by the 179D deduction’s temporary status. Originally, the deduction was built into the law for two years. It has been extended multiple times since, allowing taxpayers to take the deduction in later years, but therein lies the problem. Retroactive extensions do little to spur design and construction. It would be nonsensical to design a building for incentives that may or may not exist in the future. Retroactive extension poses a threat to standards compliance, as well. In 2016, lawmakers replaced ASHRAE’s Standard 90.1-2001 with the organization’s 90.1-2007 standards. This created more uncertainty for taxpayers, decreasing their incentive to install energy-efficient design as intended. All told, the 179D deduction has become a giveaway to taxpayers who have already completed design and construction. That is not to say the deduction has no place in U.S. tax code. If Congress truly wanted to spur energy-efficient design, simple fixes exist. Increasing the deduction amount — or making it a credit — is an easy start. The most impactful amendment would be to make the deduction permanent or at least extend it for a longer period of time, say five or 10 years. Doing so would allow taxpayers to design a building now with the expectation it could be placed in service in three to four years. It would also provide greater certainty surrounding ASHRAE standards and give designers a clear understanding of current criteria and future changes. In its current form, the 179D deduction does little to spur the actions Congress intended. Sadly, this is just one example of tax extenders failing to incentivize the long-term economic growth most taxpayers, and voters, want for the country. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
46d69306b0db4f75ecb256ab44a3dc2a
https://www.forbes.com/sites/forbesfinancecouncil/2019/03/05/12-tips-for-staying-on-top-of-your-business-financial-reporting/
12 Tips For Staying On Top Of Your Business' Financial Reporting
12 Tips For Staying On Top Of Your Business' Financial Reporting Businesses and investors typically rely on quarterly reports and forecasts to assess the financial health of a company. While some may question the frequency and format of these standardized reports, everyone can agree that analyzing the big financial picture is essential for any business. As a business owner, it’s important to find a method of reporting and analysis that works well for you, your team and your stakeholders. We asked a panel of Forbes Finance Council members how business owners can stay on top of their finances and ease the reporting process. Here’s what they had to say. Members of Forbes Finance Council offer their top tips for business owners to stay on top of their financial picture. Photos courtesy of the individual members. 1. Start A Monthly Reporting Process Too many things can happen in a quarter’s time, so I look at monthly reporting to see trends as they’re building. I believe this is the best way to forecast, too, since the data is fresh. Sometimes you want to make a slight tweak, and doing so before the end of the next quarter can be helpful. The more on top of the numbers you are, the better real-time pulse you have of your business. - Jared Weitz, United Capital Source Inc. 2. Hire A Bookkeeper Hiring a bookkeeper early on is important to make sure that your business stays on track. It gets very expensive to fix accounting irregularities and problems later. A competent and qualified financial professional can make sure that your business is also staying on track. Make sure you’re utilizing accounting software to ensure your books are in order. - Ben Jen, Ben Jen Holdings SLLC Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify? 3. Get Granular With Your Reporting Accounting software like Quickbooks and Xero has made it easier than ever for businesses to eliminate the drudgery of traditional bookkeeping and maintain accurate financials. Take advantage: Identify the key performance indicators (KPIs) for your business and track them using these and other reporting tools. Small businesses require granular reporting (think monthly or even daily) to effectively manage cash flow and risk. - Ismael Wrixen, FE International 4. Systematize To Find Your Financial Story Businesses must systematize the reporting process. Systematization is achieved through outsourcing to a competent financial authority or building an internal finance department capable of quantification, analyzation and prioritization. The goal is to have your financial reports provide you a story that is giving you a complete picture of your company’s past, present and future financial health. - Justin Goodbread, Heritage Investors 5. Track Every Department’s Numbers Have weekly, monthly, quarterly and annual metrics. With most modern software suites it is very easy to pull numbers weekly, and having someone track things on a granular level makes it much easier to course correct quickly. And don’t just track finance. Every department’s numbers have an impact, so collect them all. - Marjorie Adams, Fourlane 6. Choose The Right Software Today, tools exist to help with the forecasting process. Anaplan, for instance, made a huge dent in simplifying the financial planning and analysis process with their software and solutions. You as a business owner need to think about driving the immediacy of your business. Focus on the predictability of key indicators, profit and loss, balance sheets, and cash flow for reporting. - Sal Rehmetullah, Fattmerchant 7. Define Clear Metrics For Your Financial Dashboard If you have a clear financial dashboard this will enable you to make better business decisions. This is a key element of being able to be more proactive with your business, rather than reactive, and to get ahead of your competition. Having a financial dashboard allows you to see what is really going on in your business and removes the guesswork. - Khurram Chohan, Together CFO 8. Categorize Expenses Categorize your expenses. Determine your key categories and file your expenses as a regular course of daily business. This will help you evaluate the way the money is spent and stay financially disciplined. It will also make it easier to analyze monthly and quarterly reports, as you’ll have a better idea of your spending habits and can determine if you are overspending in certain categories. - Ben Gold, QuickBridge Funding 9. Focus On The Forecast The reporting process is becoming less important on the historical side. While it’s important to have a solid financial statement early in the month, a dynamic forecast is more important and is based on past performance. A great analogy is a windshield: Historically, you look back through the rear view mirror. With forecasting, you look forward, through the windshield. - Jody Grunden, Summit CPA Group 10. Separate Financial Reporting From Managerial Reporting Businesses need to draw a line between financial reporting—reporting to investors what has already happened—and managerial reporting, which is focused on leading indicators. External financial reporting should be implemented using as much automation as possible, while internally relevant management reports should focus on a few key performance indicators to assist in decision making. - Vlad Rusz, Vlad Corp. USA 11. Bring In Outside Help Good decisions begin with good information. You need a clear picture of your finance and key performance metrics in order to plan effectively. Consider hiring a virtual or fractional CFO to give you the visibility you need. Doing so will free up your time to focus on the numbers and running the business. - Jason Crowley, CFA, CFP, CDFA, Divorce Capital Planning 12. Remember That Size Matters Business size correlates to business risk—often in an inverse way. The smaller the business, the more granular and more frequent your reporting and forecasting should be. For public companies, the quarterly cadence is fine, allowing for proper vetting of the information. For small, private firms, monthly reporting and analysis and weekly monitoring of cash are critical to managing risk. - Brian Daniells, Signature Analytics
4aee5f34f9e0ff2b5068376341400e57
https://www.forbes.com/sites/forbesfinancecouncil/2019/03/12/why-now-represents-a-window-of-opportunity-for-u-s-infrastructure/
Why Now Represents A Window Of Opportunity For U.S. Infrastructure
Why Now Represents A Window Of Opportunity For U.S. Infrastructure An adjustment to the broader economy is coming. The recent government shutdown and general policy inertia are not helping matters. Rather than being an impediment to the economy, the U.S. government has a unique opportunity to take decisive action on aging and obsolete infrastructure to provide a firmer foundation for the future. The current supportive economic environment can shoulder the investment. That window will close, so the time to act is now. Why is that so? Here are three reasons: 1. The economy is doing well. In spite of the increased concern of the next economic downturn, the economy is still quite healthy. According to Fitch Ratings (registration required), the company for which I work, the U.S. had average annual gross domestic product growth of 2.2% from 2013-2017 while reaching a high of 2.9% in 2018, and is expected to sustain growth rates above 2.5% in 2019. That same report showed unemployment at a low 3.4%, inflation slightly above 2% and policy interest rates likely to remain below 4%. Making a real effort to update the U.S. infrastructure would make the most sense now while the economic environment can still support the investment. Acting now would bolster and extend the current economic growth cycle and provide the foundation for decades of growth in the future. Conversely, putting it off until after a recession has begun would push the U.S. back even further. And with the U.S. already decades behind in terms of infrastructure development, waiting simply makes it more difficult. 2. Transportation is trending up. The same healthy rate of growth can be seen through the lens of transportation infrastructure, where it does not appear that trouble is brewing. Toll roads and passenger air traffic are all trending at very healthy levels. Additionally, performance at ports throughout the country does not appear to be materially affected thus far by increased trade tensions between the United States and other parts of the world. U.S. enplanements in 2018 are estimated to have grown by more than 4.5%, well above the rate in 2017, and enplanements have grown in each of the last five years. In addition, the country’s five major airlines continued to have load factors of 82%–86%, as of spring 2018. According to my company’s latest internal data, traffic and revenue on U.S. toll roads grew steadily in 2018, rising an estimated 3.5% and 6.3%, respectively, reflecting continued strong economic growth. Overall, revenues grew faster than traffic as a number of facilities implemented toll hikes. As of November, the trend in national vehicle miles traveled (VMT) showed continued growth in 2018, with VMT at a little more than 9% above the lows reached during the global financial crisis. At U.S. ports, throughput measured in 20-foot equivalent units (TEUs) for 2018 showed solid growth of an estimated 5.3%, according to my company’s data, which was lower than the high 6.9% growth in 2017, but still ahead of real U.S. GDP growth. The five-year trend in TEUs is also positive and shows a 4.4% growth rate. Retail sales show similar trends, rising 5% in 2018, reflecting increases in disposable income and a strong jobs market, which boosted consumer spending. 3. Investing in infrastructure provides positive returns. And perhaps the most important reason of all is that infrastructure investment has been demonstrated to provide a return. This return is a function of the state of the economy and the nature and efficiency of investment. The International Monetary Fund in its October 2014 report stated that in reference to public investment shocks, an unexpected 1% GDP increase in investment spending increases output levels by about 0.4% during the year of the shock and by 1.5% four years later. A takeaway from this report is that a modestly growing advanced economy, such as the U.S., is well-placed to garner meaningful benefits. The multiplier effect of infrastructure investment can be seen in other economic research, as well. In its research, the Federal Reserve Bank of San Francisco stated that for each dollar a state receives in federal highway grants, that state sees an annual economic output boost of at least two dollars. One must emphasize that the multiplier will vary depending on the slack in the economy and the nature of funding. This might be counterintuitive in the current environment, but in fact, debt funding (despite the obvious long-term concerns) adds to resources near-term and benefits long-term growth. Now is the time. Not only does U.S. infrastructure need to be updated to meet the needs of a 21st century economy, but one must recognize that it’s not going to get any easier. The country will inevitably face another recession, and the implications for budget deficits and the national debt will come to the fore again. The cost of inaction will be a more expensive price tag for infrastructure and greater barriers to tackling this problem given the inevitable rise in cost of other priorities, such as health care, social programs and the national debt. With a demonstrable return on infrastructure investment, we can afford it, and delay is not an option. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?