MyMoneyIQ October 2014 Commentary

Retirement Readings

October 2014

LIVING WILLS

What Is a Living Will?

“Living will” is a term commonly used to refer to a legal document available in most states that allows an adult to state in advance whether or not life-sustaining medical procedures should be used to prolong life when there is no chance for a reasonable recovery.

Why Should You Consider a Living Will?

Reasons to consider a living will include:

A belief that adults have the right to control medical decisions regarding their care, including the right to refuse or withdraw life-sustaining treatment.
Concern about the suffering and loss of dignity that can occur when life-sustaining measures are used to prolong an inevitable death.
Easing the emotional pain the family might otherwise have to suffer in making such a difficult decision.
Relieving a doctor’s and hospital’s fears of liability in withholding or withdrawing treatment.
Language concerning organ donation can be included in a living will.

How Do You Implement a Living Will?

While the validity of a living will is determined by state statute, the requirements generally include that the document be (1) in writing, (2) dated, (3) signed and (4) witnessed by two people who are not related to the declarant and are not heirs of his or her estate. In addition, doctors and their employees, as well as hospital employees, are generally not acceptable witnesses. Consult your doctor or attorney for more information about the availability of a living will in your state.

Once a living will has been executed, copies should be given to close family members, the primary doctor and the family attorney.

A living will can be revoked at any time by destroying the document and any copies or by signing a notarized revocation of the document.

MESSAGES
from the Masters…
10 WAYS TO BURN CALORIES WITHOUT EXERCISING

by Steve Kendall

Health and fitness expert Covert Bailey once said, “Fit people waste their energy while unfit people save their energy.” The trick is to find ways to waste your energy while carrying out your routines. “Human effort” energy is like time: You can’t save it to use at a later date. The old saying says it best: “If you don’t use it you lose it.”

The following are 10 ways you can burn calories and get your tasks done by wasting some of your stored energy.

Mow with the flow. Mow the lawn with a push mower. You can save “fossil fuel” energy and doing it manually will burn off last nights’ dessert.

Step it up. Use the stairs instead of the elevator or escalator. Not only will you burn calories, but you will also have the stairs all to yourself.

Work with me. Walk or ride a bike to work if possible. If you commute on mass transit, get off at the previous stop and walk the rest of the way.

Park and shop. What do most of us do when we go shopping? We look for the cherished parking spot nearest to the store entrance. Some of us continue to drive in circles until the perfect spot becomes available. Why not park away from the crowd? You will burn calories by walking and save your car from parking lot dents and dings.

Homework. Do your housework with vigor. Put on your favorite music with an up-beat tempo and work at a much quicker pace.

Walk this way. Go for a walk. Take a friend, neighbor, co-worker or a dog (yours or a neighbors) and go for a brisk walk. It is low impact, convenient and free.

Clean it up. Wash your dishes by hand. By cleaning them manually and at a quick tempo you burn calories and save on your electric bill.

Rake it in. Raking leaves at a vigorous pace for 20 minutes is the equivalent of running one mile.

Drink it down. Drink eight pints of ice water a day. According to “Men’s Health” magazine your body will expend 123 calories of heat daily to warm the water to body temperature. That amounts to losing a pound a month.

Eat breakfast. According to research at Duke University, those who skip breakfast eat more later and choose foods higher in fat and calories.

The bottom line: Look at the routines you currently maintain. See if you can find creative ways to continue doing what you already do, only with added health benefits. You will find it much easier done than said.

Brought to you by:

Mark Holland, JD

Cambridge Financial Center
1942 Berkeley Street
Salt Lake City, UT 84108-3202
801-557-7105
holland.mark@pmlmail.com

http://finsecurity.com/holland

About our firm:

Hello, my name is Mark Holland and I thank you for your interest in learning more about the world of money. I bring a simple method to money management that can best be explained by the Japanese word “kaizen,” meaning “change for the better”. My web site, www.markhollandinsurance.com, and my monthly newsletters are chock-full of financial tips to help you understand how money works, how to take charge of the solutions to your financial and life concerns, and how exciting, liberating and satisfying provident living can be, even in this difficult economic environment.
QUOTES
from the Masters…
On Self-Limiting Beliefs

“Being challenged in life is inevitable, being defeated is optional.”

— Roger Crawford

“We would accomplish many more things if we did not think of them as impossible.”

— Chretien Malesherbes

“If a man harbors any sort of fear, it percolates through all his thinking, damages his personality, makes him a landlord to a ghost.”

— Lloyd C. Douglas
On Sowing and Reaping/ Law of Reciprocity

“You will become as small as your controlling desire; or as great as your dominant aspiration.”

— James Allen

“Life is a process of accumulation. We either accumulate the debt or the value, the regret or the equity.”

— Jim Rohn

“You will be more successful indirectly in relationships rather than directly. To have a friend, be a friend. To impress others, be impressed by them.”

— Brian Tracy

The purpose of this newsletter is to provide information of general interest to our clients, potential clients and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described.

For more complete information, please contact my office at the phone number above.

Published by The Virtual Assistant; © 2012 VSA, LP

We don’t want to add to your e-mail clutter! If you do not enjoy my newsletter, just reply to this e-mail and ask to be removed or call my office.

Thanks!

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MyMoneyIQ August 2014 Commentary

Economic Scarcity, Scarcity Thinking and Thrift

Scarcity is the most basic idea in economics. That’s what the textbooks tell us. Why? Because the study of economics is ultimately about the movement, or allocation, of scarce resources from less profitable to more profitable uses. What does “scarce” mean in its economic context? Not what you may think. To most of us, “scarce” means that we don’t have enough, enough money, enough clothing, enough shelter, enough leisure, and so on. Economists use “shortage” to characterize what the rest of us describe as scarcity. Economists view scarcity in terms of practical limitations. You might be a millionaire. However, even in that fortunate circumstance, there is only so much that your money will buy. Therefore, your money is a scarce resource.

Differing definitions of words like “scarcity” can make sound money management difficult. An economist will look at the ten-dollar bill in her wallet and consider the available options for the “reallocation” of her money from its inert condition in her wallet to a more productive use. The rest of us may look at the same ten-dollar bill and be glad to have it because, you see, money is scarce and we just don’t have enough of it. It doesn’t grow on trees, you know. This is what is known as “scarcity” thinking, or thinking “lack.” Have you ever noticed that when you think “lack,” then “lack” is what you get?

There is a better way. Remember that scarcity is nothing more than an idea describing practical limitations and that it applies to everyone. Are there more ten-dollar bills out there? Sure there are. However, the ten-dollar bill burning a hole in my wallet is the one that will buy me anything that ten dollars will buy. Where will I decide to “reallocate” this scarce resource into something more profitable?

I’ve been interested in the idea of thrift for some time. Let’s be clear about what thrift is not. It’s not cheap or stingy. If you read any of the work of Tom Stanley, for example, “The Millionaire Next Door,” you find that thrift is very pro-active. Where scarcity thinking focuses on fear, thrift is centered on prosperity. The root of “thrift” is found in the word “thrive,” to prosper or flourish, to be successful.

A noted theologian once counseled that we never give up what we really want for what we want now. Rather than wasting our time worrying about what we lack or don’t have, the real issue before us becomes one of mobilizing our resources, whatever they are and however defined they may be; and then to focus on those activities (resource allocation) that will take us where we really want to go. The Japanese have a word, “kaizen” or “continuous improvement,” which characterizes the process of incremental change that will eventually bring us the success we seek.

Yours in success,
Mark Holland

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MyMoneyIQ August 2014 Newsletter

August 2014

YOUR CHOICE: PLAN NOW OR PAY LATER

Spending a little time and money NOW in planning your estate can yield substantial benefits…

You have the opportunity to arrange your estate in such a way as to minimize taxes and estate settlement costs, leaving more of your assets to your family.

You are able to accomplish your goals and objectives for the disposition of your assets.

Your family can continue to benefit from your knowledge and experience, even after you are gone.

The other choice is to let others — the courts, attorneys — do your estate planning after your death.

The end result of this choice is usually increased costs, delays and frustration for your family.

MESSAGES
from the Masters…
WHAT IS YOUR BASIC RESOURCE?
by Tom Hopkins

What is your most basic resource? It’s not money, not brains, not who you know. Your basic resource is time. Unless you use your time well, you’ll never even get a glimpse of what your potential is. Using your time well isn’t easy — which is why so few people do it. We all have challenges with organizing our lives, setting priorities, and planning our time.

Regardless of what you do in life, time is money. If I gave you a check for $86,400 and said, “From this moment you have 24 hours to invest it. You can invest in anything you want to with this money. Whatever you don’t invest, I get back tomorrow at this exact same moment.” What would you do during the next 24 hours? You’d be out there working hard and fast to invest that $86,400, wouldn’t you?

That being your attitude, why aren’t you busily investing as much as you can of the 86,400 seconds given to you every day? That’s right — at the beginning of every day we’re all given 86,400 seconds. As each second ticks by, we’ve lost the benefit of it forever unless we find a way to invest that moment in the future.

The seconds of your life — and that’s the way you live it, one second at a time — can be invested in countless ways that will bring you a future return. Many of these ways will give you repeated returns stretching over many years. You can invest your seconds in the creation of future income, in gaining new knowledge and acquiring useful skills, in making contacts, in enhancing your personal life. The methods of gaining future benefits from present time are myriad. And so are the ways of wasting time. The seconds you squander vanish forever with no potential return. If you don’t invest your daily treasure of 86,400 seconds wisely, in essence you hand them back at the end of each day to the force that gave them to you. So, invest your time wisely.

Brought to you by:

Mark Holland, JD
Cambridge Financial Center
1942 Berkeley Street
Salt Lake City, UT 84108-3202
801-557-7105
holland.mark@pmlmail.com

http://finsecurity.com/holland

About our firm:

Hello, my name is Mark Holland and I thank you for your interest in learning more about the world of money. I bring a simple method to money management that can best be explained by the Japanese word “kaizen,” meaning “change for the better”. My web site, www.markhollandinsurance.com, and my monthly newsletters are chock-full of financial tips to help you understand how money works, how to take charge of the solutions to your financial and life concerns, and how exciting, liberating and satisfying provident living can be, even in this difficult economic environment.

QUOTES
from the Masters…
On Life/ Living
“Life is no brief candle to me. It is a sort of splendid torch which I have got a hold of for the moment, and I want to make it burn as brightly as possible before handing it on to future generations.”

— George Bernard Shaw

“Life is what we make it. Always has been, always will be.”

— Grandma Moses

“Out of love and hatred, out of earnings and borrowings and leadings and losses; out of sickness and pain; out of wooing and worshipping; out of traveling and voting and watching and caring; out of disgrace and contempt, comes our tuition in the serene and beautiful laws.”

-– Ralph Waldo Emerson

On Influence/ Association
“Those with influence seem to have a way of making others feel better by being around them than by not being around them.”

-– Bob Burg

“One man practicing sportsmanship is far better than a hundred teaching it.”

— Knute Rockne

“There comes that mysterious meeting in life when someone acknowledges who we are and what we can be, igniting the circuits of our highest potential.”

— Rusty Berkus

The purpose of this newsletter is to provide information of general interest to our clients, potential clients and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described.

For more complete information, please contact my office at the phone number above.

Published by The Virtual Assistant; © 2012 VSA, LP

We don’t want to add to your e-mail clutter! If you do not enjoy my newsletter, just reply to this e-mail and ask to be removed or call my office.

Thanks!

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MyMoneyIQ June 2014 Newsletter

June 2014

AVOIDING PROBATE

Probate is simply the Latin word for prove, which means that the estate probate process is the process by which your will is brought before a court to prove that it is a valid will. The courts charged with this responsibility are generally known as probate courts, which may actually supervise the administration or settlement of your estate.

Supervision of the estate settlement process by the probate court can result in additional expense, unwanted publicity and delays of a year or more before heirs receive their inheritance. The publicity, delays and cost of probate motivate many people to explore ways in which to avoid or minimize the impact of probating a will, including:

State Statute If specific requirements are met, many states have made provision for certain estates to be administered without the supervision of the probate court, resulting in less cost and a speedier distribution to heirs.
Form of Property Ownership The joint tenancy form of holding title to property allows ownership to pass automatically to the surviving joint tenant, who is normally the surviving spouse.
Transfer on Death Many states have enacted Transfer on Death statutes that allow a person to name a successor owner at death on the property title certificate for certain types of property, including real estate, savings accounts and securities.
Life Insurance Unless payable to the estate, life insurance proceeds are rarely subject to the probate process.
Lifetime Giving Gifts given during life avoid the probate process, even if made shortly before death.
Trusts A “Totten” trust, which is a bank savings account held in trust for a named individual, can be used to pass estate assets at death outside of the probate process.

A revocable living trust, created during the estate owner’s lifetime, can be an effective way to avoid the expense and delay of probate, while retaining the estate owner’s control of his or her assets prior to death.

Proper planning may serve to minimize the impact of the probate process on your estate and heirs.

Any potential method of avoiding probate, however, should be evaluated in terms of its income and/or estate tax consequences, as well as its potential impact on the estate owner’s overall estate planning goals and objectives.

MESSAGES
from the Masters…
TOP THREE KEYS TO GREATNESS
by Jim Rohn

Several years ago I went into the studio and recorded a 56-minute video for teenagers called “Three Keys To Greatness.” Although my focus was for teenagers, the principles I shared certainly apply to adults as well.

Recently I was asked to list these three things using one to two sentences for each. Now for your benefit here they are again.

1) Setting Goals. I call it the view of the future. Most people, including kids, will pay the price if they can see the promise of the future. So we need to help our kids see a well-defined future, so they will be motivated to pay the price today to attain the rewards of tomorrow. Goals help them do this.

2) Personal Development. Simply making consistent investments in our self-education and knowledge banks pays major dividends throughout our lives. I suggest having a minimum amount of time set aside for reading books, listening to audiocassettes, attending seminars, keeping a journal and spending time with other successful people. Charlie Tremendous Jones says you will be in five years the sum total of the books you read and the people you are around.

3) Financial Planning. I call it the 70/30 plan. After receiving your paycheck or paying yourself, simply setting aside 10% for saving, 10% for investing and 10% for giving, and over time this will guarantee financial independence for a teenager.

If a young person, or for that matter an adult, focused on doing these three simple things over a long period of time I believe they will be assured success!

To Your Success,
Jim Rohn

Brought to you by:

Mark Holland, JD
Cambridge Financial Center
1942 Berkeley Street
Salt Lake City, UT 84108-3202
801-557-7105
holland.mark@pmlmail.com

http://finsecurity.com/holland

About our firm:

Hello, my name is Mark Holland and I thank you for your interest in learning more about the world of money. I bring a simple method to money management that can best be explained by the Japanese word “kaizen,” meaning “change for the better”. My web site, www.markhollandinsurance.com, and my monthly newsletters are chock-full of financial tips to help you understand how money works, how to take charge of the solutions to your financial and life concerns, and how exciting, liberating and satisfying provident living can be, even in this difficult economic environment.

QUOTES
from the Masters…
On Attitude
“What we see depends mainly on what we look for.”

— John Lubbock

“Age is a matter of feeling…not of years.”

— George William Curtis

“Watch your manner of speech if you wish to develop a peaceful state of mind. Start each day by affirming peaceful, contented and happy attitudes and your days will tend to be pleasant and successful.”

— Norman Vincent Peale

“You can do 99% of the things right but not posses a winning attitude, and you will fail.”

— Art Williams

On Change/ Choice
“I used to say, ‘I sure hope things will change.’ Then I learned that the only way things are going to change for me is when I change.”

— Jim Rohn

“To improve your life, be prepared to make new choices and decisions.”

-– Brian Tracy

“Are you a thermometer or a thermostat? A thermometer only reflects the temperature of its environment, adjusting to the situation. But a thermostat initiates action to change the temperature in its environment.”

-– Nido Qubein

“You must be on top of change or change will be on top of you.”

-– Mark Victor Hansen

The purpose of this newsletter is to provide information of general interest to our clients, potential clients and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described.

For more complete information, please contact my office at the phone number above.

Published by The Virtual Assistant; © 2012 VSA, LP

We don’t want to add to your e-mail clutter! If you do not enjoy my newsletter, just reply to this e-mail and ask to be removed or call my office.

Thanks!

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MyMoneyIQ February 2014 Newsletter

February 2014

AN INCOME ANNUITY SOLUTION

How Can an Income Annuity Protect Against the
Risk of Living Too Long?

The purpose of an annuity is to protect against the financial risk of living too long…the risk of outliving retirement income…by providing an income guaranteed* for life.

In fact, an annuity is the ONLY financial vehicle that can systematically liquidate a sum of money in such a way that income can be guaranteed* for as long as you live!

Here’s How an Income Annuity Works:

The annuitant pays a single premium to an insurance company.
Beginning immediately or shortly after the single premium is paid, the insurance company pays the annuitant an income guaranteed* to continue for as long as the annuitant is alive, assuming the annuitant selects a life income option. There are other payout options also available.
The insurance company pays survivor benefits, if any, to the annuitant’s designated beneficiary after the annuitant’s death.
* Guarantee is based on the continued claims-paying ability of the issuing insurance company.

Please contact my office if you’re interested in discussing possible income annuity solutions to the “risk of living too long.”

MESSAGES
from the Masters…
HEART
by Zig Ziglar

Some things cannot be measured, and the heart is one of them. I think of three former NFL football stars. Mike Singletary, according to the experts, was too short and his 40-yard speed was not that great. However, they could not measure his heart and they did not measure his speed for the first five to fifteen yards, and at that distance he was exceptionally fast.

As a result, when a running back broke through the line of scrimmage…Singletary was able to stop him in the first couple of yards. That made quite a difference.

Emmitt Smith’s 40-yard speed was not earth shattering…(but) again, the experts could not measure his heart nor the burst of speed he was able to generate the instant he touched the ball. As a result, he was able to break through the hole at the line and pick up five to eight yards on a consistent basis and frequently break for much longer runs.

Jerry Rice is the other classic example. His 40-yard speed also was not record-breaking, but his commitment to excellence (was) not measurable. Videotape of Jerry Rice shows him running stride for stride downfield with a defensive back until the pass is thrown to him. At that point, Jerry turns on the afterburners and frequently leaves the defensive back well behind.

There’s something here for all of us to learn. We can measure I.Q., speed, strength and a host of other things, but the will to win and the commitment to excellence will enable a person of average ability to excel. So, use what you’ve got, including your heart, and I’ll SEE YOU AT THE TOP!

Brought to you by:

Mark Holland, JD
Cambridge Financial Center
1942 Berkeley Street
Salt Lake City, UT 84108-3202
801-557-7105
holland.mark@pmlmail.com

http://finsecurity.com/holland

About our firm:

Hello, my name is Mark Holland and I thank you for your interest in learning more about the world of money. I bring a simple method to money management that can best be explained by the Japanese word “kaizen,” meaning “change for the better”. My web site, www.markhollandinsurance.com, and my monthly newsletters are chock-full of financial tips to help you understand how money works, how to take charge of the solutions to your financial and life concerns, and how exciting, liberating and satisfying provident living can be, even in this difficult economic environment.

QUOTES
from the Masters…
On Belief
“Live your beliefs and you can turn the world around.”

— Henry David Thoreau

“Whatever you believe with emotion becomes reality. You always act in a manner consistent with your innermost beliefs and convictions.”

— Brian Tracy

“Somehow I can’t believe that there are any heights that can’t be scaled by a man who knows the secrets of making dreams come true. This special secret – curiosity, confidence, courage, and constancy, and the greatest of all is confidence. When you believe in a thing, believe in it all the way, implicitly and unquestionably.”

— Walt Disney

On Parenting/ Family
“Spend unbroken chunks of time with the most important people in your life.”

— Brian Tracy

“There is no greater leadership challenge than parenting.”

— Jim Rohn

“One should guard against preaching to young people success in the customary form as the main aim in life. The most important motive for work in school and in life is pleasure in work, pleasure in its result, and the knowledge of the value of the result to the community.”

— Albert Einstein

The purpose of this newsletter is to provide information of general interest to our clients, potential clients and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described.

For more complete information, please contact my office at the phone number above.

Published by The Virtual Assistant; © 2012 VSA, LP

We don’t want to add to your e-mail clutter! If you do not enjoy my newsletter, just reply to this e-mail and ask to be removed or call my office.

Thanks!

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MyMoneyIQ January 2014 Newsletter

Happy New Year to all.

Here are some thoughts for the New Year. As Thomas Jefferson reminds us, “. . . great sayings . . . contain the best parts of the best books.” Enjoy.

All the best for 2014.
Mark Holland

Some Things to Think About This Year – 2014

Each part of the day has its own special charm . . . the quiet calm of early morning, the beautiful light and lengthening shadows of late afternoon, the restorative peace of evening. Tune in to the miracle of each hour. – Unknown

Learn to be silent. Let your quiet mind listen and absorb. – Pythagoras

You cannot look at a sleeping cat and feel tense. – Jane Pauley

Don’t cry because it’s over. Smile because it happened. – Dr. Seuss

Love yourself first and everything else falls into line. You really have to love yourself to get anything done in this world. – Lucille Ball

Earth laughs in flowers. – Ralph Waldo Emerson

I try to take one day at a time, but sometimes several days attack me at once. – Ashleigh Brilliant

To greatly oversimplify it . . . moments matter. So be a little more conscious of the way you’re speaking to the people you care about and the strangers you interact with. Those moments shape your life. – Tom Rath

Gratitude is the inward feeling of kindness received. Thankfulness is the natural impulse to express that feeling. – Henry van Dyke

It’s never too late—in fiction or in life—to revise. – Nancy Thayer

Just the knowledge that a good book is waiting at the end of a long day makes that day happier. – Kathleen Norris

I have always felt that the moment when you first wake up in the morning is the most wonderful of the twenty-four hours. No matter how weary or dreary you may feel, you possess the certainty . . . absolutely anything may happen. – Monica Baldwin

There is nothing like staying at home for real comfort. – Jane Austen

Mankind would lose half its wisdom built up over centuries if it lost its great sayings. They contain the best parts of the best books. – Thomas Jefferson

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What are You Willing to Settle For? MyMoneyIQ August 2013 Newsletter

How Many People Are Financially Independent During Retirement?

Most people want to be financially independent during their retirement years. Government statistics, however, tell a different story.

According to the Social Security Administration, of people age 65 and older:

39.6% have incomes under $20,000
28.2% have incomes from $20,000 to $40,000
18.9% have incomes from $40,000 to $75,000
Only 13.3% have incomes in excess of $75,000
Source: Social Social Administration, Office of Policy, Income of the Population 55 or Older, 2010, released March 2012
Which group will you be in?

The secret to financial independence at retirement is to commit to a plan today, while you’re working and earning an income, a portion of which can be saved for your future financial security!

MESSAGES
from the Masters…
AN ACCUMULATION OF RICHES
by Brian Tracy

LITTLE THINGS MEAN A LOT

One of the greatest success principles of all is called the Law of Accumulation. This law says that everything great and worthwhile in human life is an accumulation of hundreds and sometimes thousands of tiny efforts and sacrifices that nobody ever sees or appreciates. It says that everything accumulates over time. That you have to put in many, many, many tiny efforts that nobody sees or appreciates before you achieve anything worthwhile. It’s like a snowball. A snowball starts very small, but it grows as it adds millions and millions of tiny snowflakes and continues to grow as it gathers momentum.

LEARN WHAT YOU NEED TO LEARN

There are three areas where the law of accumulation is important. The first is in the area of knowledge. Your body of knowledge is a result of hundreds, perhaps thousands, of small pieces of information.

Any person with a large knowledge base has spent thousands of hours building that knowledge base one piece at a time. And what you see when you meet the individual is an expert in his or her field, with that high level of knowledge that makes him very valuable in the marketplace.

SAVE YOUR MONEY

The second area where the Law of accumulation works is with regard to money. Every large fortune is an accumulation of hundreds and thousands of small amounts of money, and the place to start is to take any amount of money that you can right now and begin to save it. When you begin to save money, it sets up a force field of energy and it triggers the law of attraction. As a result you begin to attract to you even more bits of money to add to your savings.

ATTRACT RICHES INTO YOUR LIFE

And I’ve spoken to many, many successful people and they’ve told me the same story. That as soon as you start to put savings aside, it starts to attract into your life and into your work all the money that you need to achieve your goals. The reason why most people retire poor is they never put the initial savings aside to start with.

GET THE EXPERIENCE YOU NEED

The third area where the law of accumulation applies is in the area of experience. You’ll find that successful people in any field are those who have far more experience in that field than the average. And there is nothing that replaces experience. Whether it’s in business or entrepreneurship or management or parenting or selling or anything else. Many people do not take the risks that are necessary to move out of their comfort zone because they’re afraid it won’t work out.

EVERYTHING COUNTS

But the fact is that until you move out of the comfort zone and get the experience from making the mistakes, it’s not possible for you to grow and become capable of earning the kind of money that you desire. Now here’s the key to the law of accumulation. It says that everything counts. Everything that you do counts. The biggest mistake that people make is they think that only what they want to count, counts. That when you read a book, when you listen to an audio program, when you go to a course, when you go to bed early and you get up early and you work, it all counts. And it’s all going on the plus side of your ledger.

USE YOUR TIME WELL

But when you watch television, waste time, hang out, fool around and so on, all of that counts, as well, and it’s going on the negative side. A person who has a great life, by the law of accumulation, is a person who’s accumulated far more credits on the credit side than debits on the debit side. And here’s an important point. If what you are doing is not moving you towards your goals, then it’s moving you away from your goals. Nothing is neutral. Everything that you’re doing is either moving you toward the things that you want to accomplish in life, the person you want to be, the wealth you want to accumulate, or it’s moving you away. Everything counts. The law of accumulation says that everything counts.

ACTION EXERCISES

First, begin today to build your knowledge base in the subject that can be most helpful to you in achieving financial independence. Whether it takes a week, a month or a year to become thoroughly knowledgeable, it doesn’t matter. Just get started today. Second, get as much experience as you can in your chosen field. Start a little earlier, work a little harder and stay a little later. Take risks and try every different way you can think of to achieve your goal. This experience is invaluable and it accumulates over time.

———————————————————————————————————————————————————————————————————————-
The purpose of this newsletter is to provide information of general interest to our clients, potential clients and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described.

For more complete information, please contact my office at the phone number above.

Published by The Virtual Assistant; © 2012 VSA, LP

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What Are You Willing to Settle For? MyMoneyIQ July 2013 Newsletter

July 2013

FAMILY DISASTER PLAN

A family disaster plan is your personal plan for how you and your family will deal with an emergency situation if one arises. It’s important that every member of your family understands your family disaster plan and is ready to implement it, perhaps at a moment’s notice.
Suggestions for your family disaster plan include:
• Understand the types of natural disasters that are most likely to strike the area where you live (hurricanes, tornadoes, earthquakes, flooding). Agree on what each family member will do in the event of one of those disasters.
• If you have to remain in your home, identify the safest places to stay.
• If you’re advised to evacuate, plan your escape route in advance. Be prepared to listen to local radio for shelter locations.
• What if family members are separated? Agree on two alternative meeting places, one near your home and the second outside your immediate area.
• Make sure your children know how and under what circumstances to call 9-1-1.
• Have a plan to protect your property in the event of a disaster. For example, know where your utilities are and how to turn them off. Depending on the threat, remove small outdoor items, close window shutters, etc.
• Request information on your employer’s disaster plans, as well as those for your children’s school and/or childcare center. Be sure they have your emergency contact information and you theirs.
• Identify a family member or friend living in another area…someone your children can call if the need arises.
• Ensure that your home is safe: periodically test smoke alarms, carbon monoxide detectors and fire extinguishers to make sure they are working, identify any potential hazards and remove them, be certain that all family members know how to evacuate your home in the event of fire.
Additional advice on your family disaster plan and preparing a disaster supply kit is available from:
• Federal Emergency Management Agency (FEMA): 1-800-480-2520 or http://www.fema.gov
• Department of Homeland Security: 1-800-237-3239 or http://www.ready.gov
• American Red Cross: http://www.redcross.org

The purpose of this information is to provide information of general interest to
our clients, potential clients and other professionals. The information provided
is general in nature and should not be considered complete information on any
product or concept described.

For more complete information, please contact my office at the phone number
above.

Published by The Virtual Assistant© 2012 VSA, LP

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What Are You Willing to Settle For? MyMoneyIQ June 2013 Newsletter

TIPS FOR MANAGING AN INHERITANCE

Take your time. This is an emotional time…not the best time to be making important financial decisions. Short of meeting any required tax or legal deadlines, don’t make hasty decisions concerning your inheritance.

Identify a team of reputable, trusted advisors (attorney, accountant, financial/insurance advisors). There are complicated tax laws and requirements related to certain inherited assets. Without accurate, reliable advice, you may find an unnecessarily large chunk of your inheritance going to pay taxes.

Park the money. Deposit any inherited money or investments in a bank or brokerage account until you’re in a position to make definitive decisions on what you want to do with your inheritance.

Understand the tax consequences of inherited assets. If your inheritance is from a spouse, there may be no estate or inheritance taxes due. Otherwise, your inheritance may be subject to federal estate tax or state inheritance tax. Income taxes are also a consideration.

Treat inherited retirement assets with care. The tax treatment of inherited retirement assets is a complex subject. Make sure the retirement plan administrator does not send you a check for the retirement plan proceeds until you have made a distribution decision. Get sound professional financial and tax advice before taking any money from an inherited retirement plan…otherwise you may find yourself liable for paying income taxes on the entire value of the retirement account.

If you received an interest in a trust, familiarize yourself with the trust document and the terms under which you receive distributions from the trust, as well as with the trustee and trust administration fees.

Take stock. Create a financial inventory of your assets and your debts. Start with a clean slate and reassess your financial needs, objectives and goals.

Develop a financial plan. Consider working with a financial advisor to “test drive” various scenarios and determine how your funds should be invested to accomplish your financial goals.

Evaluate your insurance needs. If you inherited valuable personal property, you will probably need to increase your property and casualty coverage or purchase new coverage. If your inheritance is substantial, consider increasing your liability insurance to protect against lawsuits. Finally, evaluate whether your life insurance needs have changed as a result of your inheritance.

Review your estate plan. Your inheritance, together with your experience in managing it, may lead you to make changes in your estate plan. Your experience in receiving an inheritance may prompt you to want to do a better job of how your estate is structured and administered for the benefit of your heirs.

Please contact my office if we can be of assistance.

The purpose of this newsletter is to provide information of general interest to our clients, potential clients and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described.
For more complete information, please contact my office at the phone number above.
Published by The Virtual Assistant; © 2012 VSA, LP

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What Are You Willing to Settle For? MyMoneyIQ May 2013 Newsletter

When You Change Jobs…?You May Have an Important Decision to Make!

What to do with your money in an employer-sponsored retirement plan, such as a 401(k) plan. Since these funds were originally intended to help provide financial security during retirement, you need to carefully evaluate which of the following options will best ensure that these assets remain available to contribute to a financially-secure retirement.

Take the Funds: You can withdraw the funds in a lump sum and do what you please with them. This is, however, rarely a good idea unless you need the funds for an emergency. Consider:
• A mandatory 20% federal income tax withholding will be subtracted from the lump sum you receive.
• You may have to pay additional federal (and possibly state) income tax on the lump sum distribution, depending on your tax bracket (and the distribution may put you in a higher bracket).
• Unless one of the exceptions is met, you may also have to pay a 10% premature distribution tax in addition to regular income tax.
• The funds will no longer benefit from the tax-deferred growth of a qualified retirement plan.

Leave the Funds: You can leave the funds in your previous employer’s retirement plan, where they will continue to grow on a tax-deferred basis. If you’re satisfied with the investment performance/options available, this may be a good alternative. Leaving the funds temporarily while you explore the various options open to you may also be a good alternative. (Note: If your vested balance in the retirement plan is $5,000 or less, you may be required to take a lump-sum distribution.)

Roll the Funds Over: You can take the funds from the plan and roll them over, either to your new employer’s retirement plan (assuming the plan accepts rollovers) or to a traditional IRA, where you have more control over investment decisions. This approach offers the advantages of preserving the funds for use in retirement, while enabling them to continue to grow on a tax-deferred basis.

Why Taking a Lump-Sum Distribution May Be a Bad Idea:
While a lump-sum distribution can be tempting, it can also cost you thousands of dollars in taxes, penalties and lost growth opportunities…money that will not be available for future use in retirement.
Let’s say that you have $100,000 in a retirement plan with a former employer, you’re under age 59-1/2 and you’re in the 28% federal income tax bracket.

Taxes and penalties if you… Roll the $100,000 into an IRA Take a lump-sum distribution
20% mandatory withholding at the time of distribution $0 $20,000
8% additional income tax due at filing $0 $8,000
10% premature distribution penalty tax $0 $10,000
Ending Balance: $100,000 $62,000
Cost to Take the Funds Today: $38,000

Value of $38,000 in … 5 Years 10 Years 15 Years 20 Years
5% Return $48,499 $61,898 $78,999 $100,825
8% Return $55,834 $82,039 $120,542 $177,116
10% Return $61,199 $98,562 $158,735 $255,645

NOTE: The above is a hypothetical example for illustration purposes only and assumes that one of the exceptions to the premature distribution penalty tax is not available. In addition to the federal taxes illustrated above, state tax may also be payable. This example is not indicative of any particular investment or performance and does not reflect the fees and expenses associated with any particular investment, which would reduce the performance shown above if they were included.

Please contact my office if you would like any additional information on rolling funds over from a previous employer’s retirement plan.

The purpose of this newsletter is to provide information of general interest to our
clients, potential clients, and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described.

For more information, please contact my office at 801-557-7105

Published by The Virtual Assistant © 2012 VSA, LP

Posted in Uncategorized | Leave a comment