tag:blogger.com,1999:blog-43626344531603115642024-03-05T18:40:50.275-06:00Business Enhancement Associates Aha! MomentsAnonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.comBlogger607125tag:blogger.com,1999:blog-4362634453160311564.post-48063186969951128192014-08-13T13:50:00.001-05:002014-08-13T13:50:11.011-05:00Depression is bipartisan | BenefitsPro<div class="separator" style="clear: both; text-align: center;">
</div>
<div style="margin-left: 1em; margin-right: 1em;">
<img alt="Robin Williams, center, with Saturday Night Live cast members Eddie Murphy, left, and Joe Piscopo, Feb. 10, 1984. (AP Photo/Suzanne Vlamis)" src="http://media.benefitspro.com/benefitspro/article/2014/08/11/0811robinap-resize-380x300.jpg" /></div>
<br />
<br />
<span style="background-color: black; color: white; font-family: sans-serif; font-size: 12px; line-height: 15.960000038146973px;">Robin Williams, center, with Saturday Night Live cast members Eddie Murphy, left, and Joe Piscopo, Feb. 10, 1984.<br /> (AP Photo/Suzanne Vlamis)</span><br />
<br />
<a href="http://www.benefitspro.com/2014/08/11/depression-is-bipartisan?eNL=53ea3d43160ba0ea1eda02ae&utm_source=BenefitsBrokerPro&utm_medium=eNL&utm_campaign=BenefitsPro_eNLs&_LID=144817001">BenefitsPro</a>: <br />
<div class="byline" style="background-color: white; border: 0px; color: #444444; font-family: sans-serif; font-size: 11px; line-height: 16px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">
BY <a href="http://www.benefitspro.com/author/denis-storey" rel="author" style="-webkit-tap-highlight-color: rgb(255, 94, 153); background: transparent; color: #145675; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">DENIS STOREY</a></div>
<div class="timestamp" style="background-color: white; border: 0px; color: #444444; font-family: sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px; vertical-align: baseline;">
August 11, 2014</div>
<div class="timestamp" style="background-color: white; border: 0px; color: #444444; font-family: sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px; vertical-align: baseline;">
<br /></div>
<div class="article-content clearfix" style="background-color: white; border: 0px; color: #444444; font-family: sans-serif; font-size: 14px; line-height: 18.6200008392334px; margin: 0px 0px 28px; outline: 0px; padding: 0px; vertical-align: baseline; zoom: 1;">
<div class="current page" style="border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
Robin Williams is dead.</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
Apparently he took his own life. The early reports are that he’d battled depression most of his life. And from what it sounds like, he lost.</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
Sure, it might not seem that big a deal to most, but I grew up with this guy.</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
(It’s funny. As a kid I often wondered why my elders cared so much about celebrity deaths. I was in the principal's office — of course — when I’d heard Elvis died. Everyone seemed so shocked and I all could wonder was, “Who’s he?”)</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
But now I understand. I grew up watching “Mork and Mindy.” (Yeah, I’m that old.) I even had a pair of those awful rainbow suspenders — remember, this was long before gay pride. His manic, improvisational style of acting spoke to me even at an early age.</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
See, I was one of those manic kids myself. I couldn’t sit still. Sarcasm was my second language. And jokes were all I had. They just came naturally. More than a few times I found myself in the principal’s office because I simply couldn’t sit still and shut up. Hell, these days I’d have been so doped up on one (or more) of the various kid-tamers that I would have slept-walked through my childhood.</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
So, early on, I identified with him. From those early days as Mork, to that Vietnam War DJ to his brilliant and mostly improvised — and brilliant — role as Aladdin’s genie, this was someone I could relate to.</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
Of course, it wasn't until last year that I realized that <a href="http://www.benefitspro.com/2014/01/16/the-monster-under-my-bed" style="-webkit-tap-highlight-color: rgb(255, 94, 153); background: transparent; color: #145675; margin: 0px; padding: 0px; vertical-align: baseline;"><strong style="border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">I’d been battling depression myself</strong></a>— for probably a lot longer than I ever realized. Or even still am able to acknowledge. I suppose humor was the only weapon I thought I had.</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
I think I’m doing better. I’m taking my meds. My diet’s a helluva lot better. And I really am trying my best with the gym, but it’s so easy to let other things take priority. My boss has been doing double-duty as my therapist. And my wife has been my rock. I wouldn’t be here without her.</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
But when I see news like this, about someone else plagued by demons so much like my own, it shakes me to my core. If he can’t handle it — with access to the best health care money can buy — how the hell am I supposed to? What chance do I have?</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
Then I look at my three kids, who still see me as someone worth emulating, and loving unconditionally, and I can’t even fathom not being there for them. And I look at my wife, whose patience would drive Job to the nearest bar (or shrink).</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
I met a broker friend of mine for drinks a couple of weeks back, and (of course) we talked about work. He mentioned that no matter how hard his job is, he never gets called the names I do on a weekly (sometimes daily) basis. He doesn’t have outraged readers (or clients) calling his CEO asking for his job or trolls calling him every sophomoric name they can dream up.</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
And it made me wonder why it never got to me. Then I realized: No one can call me anything I haven’t already called myself. When it comes to being one's own worst critic, I’m freakin’ Roger Ebert at a Jerry Bruckheimer premiere.</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
Which also makes me think: We’re so quick to demonize one another in this hyper-partisan age, but there’s no demon harder to exorcise than the ones inside us.</div>
<div style="border: 0px; margin-bottom: 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
Rest in peace, Robin. Thank you for making this little boy’s own scattered mind make a little sense. I hope your demons have finally fled.</div>
</div>
</div>
<div class="timestamp" style="background-color: white; border: 0px; color: #444444; font-family: sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div class="clearfix" id="article-more" style="border: 0px; clear: both; font-size: 14px; line-height: 18.6200008392334px; margin: 0px 0px 40px; outline: 0px; padding: 0px; vertical-align: baseline; zoom: 1;">
<div class="related-articles" style="border: 0px; float: left; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 285px;">
</div>
</div>
<br />
<div class="clearfix" id="about-author" style="-webkit-text-stroke-width: 0px; background-color: white; border: 0px; clear: both; color: #444444; font-family: sans-serif; font-size: 14px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 18.6200008392334px; margin: 0px; orphans: auto; outline: 0px; padding: 0px; text-align: start; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; widows: auto; word-spacing: 0px; zoom: 1;">
<h6 style="border-bottom-color: rgb(204, 204, 204); border-bottom-style: solid; border-width: 0px 0px 1px; font-size: 14px; font-weight: bold; margin: 0px 0px 10px; outline: 0px; padding: 0px; vertical-align: baseline;">
About the Author</h6>
<a href="http://www.benefitspro.com/author/denis-storey" style="-webkit-tap-highlight-color: rgb(255, 94, 153); background: transparent; color: #145675; font-size: 14px; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="Denis Storey" class="thumb" src="http://media.benefitspro.com/benefitspro/author/2011/12/12/storey-blog-photo-1211-resize-150x150.jpg" style="border: 0px; float: left; font-size: 14px; margin: 0px 15px 10px 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /></a><div class="author-name" style="border: 0px; font-family: sans-serif; font-size: 14px; font-weight: bold; margin: 0px 0px 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
Denis Storey</div>
<div style="border: 0px; font-family: sans-serif; font-size: 14px; margin: 0px 0px 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; font-family: sans-serif; font-size: 14px; margin: 0px 0px 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
Denis Storey is editor for BenefitsPro.com and <em style="border: 0px; font-size: 14px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><a href="http://www.benefitspro.com/benefits-selling-magazine" style="-webkit-tap-highlight-color: rgb(255, 94, 153); background: transparent; color: #145675; font-size: 14px; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Benefits Selling</a></em>magazine. He can be reached at <a href="mailto:dstorey@benefitspro.com" style="-webkit-tap-highlight-color: rgb(255, 94, 153); background: transparent; color: #145675; font-size: 14px; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">dstorey@benefitspro.com</a>.</div>
<div style="border: 0px; font-family: sans-serif; font-size: 14px; margin: 0px 0px 1em; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
</div>
<div class="timestamp" style="background-color: white; border: 0px; color: #444444; font-family: sans-serif; font-size: 12px; line-height: 16px; outline: 0px; padding: 0px; vertical-align: baseline;">
<br /></div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a>Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com2tag:blogger.com,1999:blog-4362634453160311564.post-18488218431948696722014-07-08T09:56:00.001-05:002014-07-08T10:08:14.413-05:00NAPA Net » ‘Out’ Takes<a href="http://www.napa-net.org/news/managing-a-practice/industry-trends-and-research/out-takes/">NAPA Net » ‘Out’ Takes</a>:<img alt="Nevin Adams" class="photo" src="http://www.napa-net.org/wp-content/uploads/userphoto/112.jpg" height="200" style="background-color: #f7f7f7; border: 1px solid rgb(230, 230, 230); color: #464f4d; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; height: 80px; line-height: inherit; margin: 0px; padding: 10px; vertical-align: baseline; width: 80px;" width="200" /><a href="http://www.napa-net.org/author/nevin-adams/" rel="author" style="background-color: white; border: 0px; color: #d77a0e; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="View all posts by Nevin Adams">Nevin Adams</a><span style="background-color: white; color: #464f4d; font-family: inherit; font-size: 0.9em; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em;"> </span><span class="divider" style="background-color: white; border-bottom-color: rgb(214, 217, 217); border-bottom-style: dotted; border-width: 0px 0px 1px; color: #7fa09b; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px 5px; padding: 0px 0px 10px; vertical-align: baseline;">•</span><span style="background-color: white; color: #464f4d; font-family: inherit; font-size: 0.9em; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em;">7/8/14 </span><span class="divider" style="background-color: white; border-bottom-style: none; border-left-width: 0px; border-right-width: 0px; border-top-width: 0px; color: #7fa09b; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px 5px; padding: 0px 0px 10px; vertical-align: baseline;">•</span><br />
<span style="background-color: white; color: #464f4d; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em;">My first car wasn’t anything special, other than it was my first car. It was an older model Ford, ran reasonably well, with one small problem — it went through oil almost as quickly as it did gasoline. At first I attributed that to being a function of the car’s age, but as the leakage grew, I eventually dealt with it by keeping a couple of quarts of oil in the trunk “just in case.” Eventually, I took the car to a dealership — but by the time they finished estimating the cost of a head gasket repair, let’s just say that, even on my limited budget, I could buy a </span><em style="background-color: white; border: 0px; color: #464f4d; font-family: inherit; font-size: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">lot</em><span style="background-color: white; color: #464f4d; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em;"> of oil by the quart, over a long period of time, and still be ahead financially.</span><br />
<div class="entry" style="background-color: white; border: 0px; color: #464f4d; font-family: 'Helvetica Neue', HelveticaNeue, Helvetica, Arial, 'Lucida Grande', sans-serif; font-size: 13px; line-height: 18px; margin: 0px; padding: 0px; vertical-align: baseline;">
<div style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em; margin-bottom: 1em; padding: 0px; vertical-align: baseline;">
<br />
“Leakage” — the withdrawal of retirement savings via loan or distribution prior to retirement — is a matter of ongoing discussion among employers, retirement plan advisors, regulators and policy makers alike. In fact, <a class="zem_slink" href="http://ebri.org/" rel="homepage" target="_blank" title="Employee Benefit Research Institute">EBRI</a> Research Director Jack VanDerhei was recently asked to present findings on <a href="http://www.ebri.org/pdf/publications/testimony/T-180.pdf" style="border: 0px; color: #2a85e8; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">“The Impact of Leakages on 401(k) Accumulations at Retirement Age”</a> to the ERISA Advisory Council in Washington.</div>
<div style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em; margin-bottom: 1em; padding: 0px; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://en.wikipedia.org/wiki/File:IdaMayFuller.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Ida May Fuller, the first recipient" border="0" class="zemanta-img-inserted zemanta-img-configured" height="200" src="http://upload.wikimedia.org/wikipedia/en/d/d9/IdaMayFuller.jpg" style="border: none; font-size: 0.8em;" width="191" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 276px;">Ida May Fuller, the first recipient (Photo credit: <a href="http://en.wikipedia.org/wiki/File:IdaMayFuller.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
EBRI’s analysis considered the impact on young employees with more than 30 years of 401(k) eligibility by age 65 if cashouts at job turnover, hardship withdrawals (and the accompanying six-month suspension of contributions) and plan loan defaults were substantially reduced or eliminated. The analysis assumed automatic enrollment and (as explicitly noted) no behavioral response on the part of participants or plan sponsors if that access to plan balances was eliminated.</div>
<div style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em; margin-bottom: 1em; padding: 0px; vertical-align: baseline;">
Looked at together, EBRI found that there was a decrease in the probability of reaching an 80% real income replacement rate (combining 401(k) accumulations and Social Security benefits) of 8.8 percentage points for the lowest-income quartile and 7.0 percentage points for those in the highest-income quartile. Put another way, 27.3% of those in the lowest-income quartile (and 15.2% of those in the highest-income quartile) who would have come up short of an 80% real replacement rate under current assumptions <em style="border: 0px; font-family: inherit; font-size: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">would</em> reach that level if no leakages are assumed.</div>
<div style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em; margin-bottom: 1em; padding: 0px; vertical-align: baseline;">
The EBRI analysis also looked at the impact of the various types of “leakage” individually. Of loan defaults, hardships and cashouts at job change, cashouts at job change were found to have a much more serious impact on 401(k) accumulation than either plan loan defaults or hardship withdrawals (even with the impact of a six-month suspension of contributions included). The leakages from cashouts resulted in a decrease in the probability of reaching an 80% real replacement rate of 5.9 percentage points for the lowest-income quartile and 4.5 percentage points for those in the highest-income quartile.</div>
<div style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em; margin-bottom: 1em; padding: 0px; vertical-align: baseline;">
Advisors take note: that effect from cashouts — not loans or hardship withdrawals — turns out to be approximately two-thirds of the leakage impact.</div>
<div style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em; margin-bottom: 1em; padding: 0px; vertical-align: baseline;">
However, and as the testimony makes clear, it’s one thing to quantify the impact of not allowing early access to these funds — and something else altogether to assume that participants and plan sponsors would not respond in any way to those changes, perhaps by reducing contributions,<sup class="footnote"><a href="http://www.napa-net.org/news/managing-a-practice/industry-trends-and-research/out-takes/#fn-53881-1" id="fnref-53881-1" style="border: 0px; color: #2a85e8; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">1</a></sup> potentially offsetting some or all of the prospective gains from restricting access to those funds.</div>
<div style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em; margin-bottom: 1em; padding: 0px; vertical-align: baseline;">
Because ultimately, whether you’re dealing with an old car or your retirement savings account, what matters isn’t how much “leaks” out — it’s how much you put in, and how much you have to “run” on.</div>
<div style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: 1.33em; margin-bottom: 1em; padding: 0px; vertical-align: baseline;">
<strong style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">Footnote</strong></div>
<div class="footnotes" id="footnotes-53881" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">
<div class="footnotedivider" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">
</div>
<ol style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; list-style-image: initial; list-style-position: initial; margin: 0px 0px 18px 30px; padding: 0px; vertical-align: baseline;">
<li id="fn-53881-1" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px 0px 12px; padding: 0px; vertical-align: baseline;">An EBRI/ICI analysis published in the October 2001 EBRI Issue Brief found that, “on average, a participant in a plan offering loans appeared to contribute 0.6 percentage point more of his or her salary to the plan than a participant in a plan with no loan provision.” Testimony provided to the ERISA Advisory Council testimony notes that it’s likely that a similar relationship exists with respect to the availability of hardship withdrawals. See “Contribution Behavior of 401(k) Plan Participants,” online <a href="http://www.ebri.org/pdf/briefspdf/1001ib.pdf" style="border: 0px; color: #2a85e8; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">here</a>. <span class="footnotereverse" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;"><a href="http://www.napa-net.org/news/managing-a-practice/industry-trends-and-research/out-takes/#fnref-53881-1" style="border: 0px; color: #2a85e8; font-family: inherit; font-size: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">↩</a></span></li>
</ol>
</div>
</div>
<br />
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.creditrepair.com/articles/Savings-Center/Are-You-Really-Ready-for-Retirement" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_69_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.creditrepair.com/articles/Savings-Center/Are-You-Really-Ready-for-Retirement" style="background-image: none; display: block; height: 83px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Are You Really Ready for Retirement?</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.hispanicbusiness.com/2014/1/23/can_social_security_and_401_k.htm" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_94_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.hispanicbusiness.com/2014/1/23/can_social_security_and_401_k.htm" style="background-image: none; display: block; height: 83px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Can Social Security and 401(k) Savings be 'Enough'?</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://community.ally.com/straight-talk/2013/02/is-it-ever-a-good-idea-to-dip-into-your-retirement-savings/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/143457091_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://community.ally.com/straight-talk/2013/02/is-it-ever-a-good-idea-to-dip-into-your-retirement-savings/" style="background-image: none; display: block; height: 83px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Is It Ever A Good Idea To Dip Into Your Retirement Savings?</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.hispanicbusiness.com/2014/2/13/retirement_readiness_rises_in_2013_but.htm" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_127_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.hispanicbusiness.com/2014/2/13/retirement_readiness_rises_in_2013_but.htm" style="background-image: none; display: block; height: 83px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Retirement Readiness Rises in 2013, But Varies by Income and 401(k) Access</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.usnews.com/blogs/the-best-life/2010/7/14/automatic-401ks-aid-retirement-readiness.html?s_cid=rss:the-best-life:automatic-401ks-aid-retirement-readiness" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_83_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.usnews.com/blogs/the-best-life/2010/7/14/automatic-401ks-aid-retirement-readiness.html?s_cid=rss:the-best-life:automatic-401ks-aid-retirement-readiness" style="background-image: none; display: block; height: 83px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Automatic 401(k)s Aid Retirement Readiness</a></li>
</ul>
</div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-86083256182101579742013-10-29T10:13:00.001-05:002013-10-29T10:17:18.207-05:004 things successful people don't do after 5 p.m.<a href="http://www.cbsnews.com/">CBS News</a><br />
<span class="byText" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">By </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><br />
<div class="pagiAuthor" style="background-color: white; border: 0px; color: #202022; display: inline; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">
AMY LEVIN-EPSTEIN <span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px; vertical-align: baseline;">/</span> </div>
<span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="source" style="background-color: white; border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">MONEYWATCH<span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px 0px 8px; vertical-align: baseline;">/</span> </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">October 24, 2013, 7:58 AM</span>: <br />
<div class="storyText" style="background-color: white; background-image: url(http://asset3.cbsistatic.com/cnwk.1d/i/tron/overlays/bkg-highlight-620.png) !important; background-position: 50% 0%; background-repeat: no-repeat no-repeat !important; border-top-color: rgb(232, 232, 232); border-top-style: solid; border-width: 1px 0px 0px; font-family: Helvetica, Arial, sans-serif; font-size: 15px; margin: 0px; outline: 0px; padding: 20px 0px 0px; vertical-align: baseline;">
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
(MoneyWatch) Yesterday, this blog listed <a href="http://www.cbsnews.com/8301-505125_162-57608618/5-things-successful-people-do-after-5-p.m/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">five things successful people do after 5 p.m.</a> (a spinoff of the popular Forbes.com piece about things those same people <a href="http://www.forbes.com/sites/jennifercohen/2013/10/02/5-things-super-successful-people-do-before-8-am/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">do before 8 p.m.</a>) But what about behaviors that can negatively impact your chances for success? In other words, what are the things that effective employees and executives<i style="border: 0px; font-family: inherit; font-size: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"> don't</i> do as the <a class="zem_slink" href="http://en.wikipedia.org/wiki/Working_time" rel="wikipedia" target="_blank" title="Working time">work day</a> winds down? Here are four.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">They don't stay at work all night. </b>Effective executives take some time to recharge each evening, said <a class="zem_slink" href="http://www.juliemorgenstern.com/" rel="homepage" target="_blank" title="Julie Morgenstern">Julie Morgenstern</a>, author of "<a href="http://www.amazon.com/Time-Management-Inside-Out-Foolproof/dp/0805064699" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">Time Management From the Inside Out</a>." And they don't just try to turn off their smartphone -- they actually schedule quality personal time. "First, they set an alarm to get out of the office on time. Then, they schedule something fun, relaxing or rejuvenating after work, whether it's an exercise class, meeting with a trainer, dinner with friends or family, etc.," said Morgenstern.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<ul class="arrows gray" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; list-style: none; margin: 0px 0px 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -15px -911px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;"><a href="http://www.cbsnews.com/8301-505125_162-57448983/would-you-choose-summer-fridays-or-a-5-raise/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">Would you choose Summer Fridays or a 5 percent raise?</a></li>
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -15px -911px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;"><a href="http://www.cbsnews.com/8301-505125_162-57472596/the-case-against-summer-fridays/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">The case against Summer Fridays</a></li>
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -15px -911px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;"><a href="http://www.cbsnews.com/8301-505125_162-57459661/how-to-cram-more-work-into-fewer-hours/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">How to cram more work into fewer hours</a></li>
</ul>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">They don't go straight home. </b>If you go directly home from a long work day to a busy home life, you can still feel like you're at work -- or at least, your mind is -- when you're trying to recharge. So avoid answering work emails or speaking to clients on your ride home. "Successful people implement some sort of mindful transition between workday and home -- music, a walk, a visit to the gym -- something that signals [the] workday is over," Morgenstern said. Even listening to music or a podcast, or reading a book, on your commute can ease that transition.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">They work through stress in healthy ways. </b>Capping off a long day at the office with more than one stiff drink may not be a good idea, said efficiency expert Andrew Jensen. "Successful people strive for self-control and don't try to temporarily drown out the stresses of life through excessive drinking," he said. After all, nobody ever said that hangovers helped them perform better.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">They don't excuse other unhealthy habits. </b>"Very successful people don't neglect their bodies by fueling with junk food or by rationalizing they are too busy or too tired for exercise," Jensen said. That's not to say that there aren't great executives who have climbed the corporate ladder fueled by the vending machine and late-night food orders. But being unhealthy hardly makes it easy to function at your highest level. Plus, companies generally like their executives to look fit and attractive. So if you won't make healthy choices for your health, do it for your career.</div>
</div>
<span class="dateStamp copyRightText" style="background-color: white; border: 0px; float: left; font-family: Georgia, 'Times New Roman'; font-size: 0.85em; font-style: italic; margin: 0px 0px 20px; outline: 0px; padding: 0px; vertical-align: baseline; width: 620px;">© 2013 CBS Interactive Inc.. All Rights Reserved.</span><br />
<div>
<br /></div>
<div>
<br /></div>
<br />
<span class="correspondName" style="background-color: white; border: 0px; display: block; font-family: Helvetica, Arial, sans-serif; font-size: 1.3em; font-weight: bold; letter-spacing: -0.06em; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 460px;">Amy Levin-Epstein</span><span class="correspondLinks" style="background-color: white; border: 0px; color: #202022; font-family: Helvetica, Arial, sans-serif; font-size: 0.8em; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;"><a href="http://www.twitter.com/MWontheJob" style="border: 0px; color: #202022; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">ON TWITTER <span class="redDoubleArrows" style="border: 0px; color: #b12124; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">»</span></a></span><span style="background-color: white; font-family: Helvetica, Arial, sans-serif; font-size: 15px;"></span><br />
<div class="dek withPic" style="background-color: white; border: 0px; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; outline: 0px; padding: 3px 0px 0px; vertical-align: baseline;">
<a href="http://www.cbsnews.com/2741-505125_162-1354.html" style="border: 0px; color: #202022; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">View all articles by Amy Levin-Epstein on CBS MoneyWatch <span class="redDoubleArrows" style="border: 0px; color: #b12124; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">»</span></a><br />
Amy Levin-Epstein is a freelance writer who has been published in dozens of magazines (including Glamour, Self and Redbook), websites (including AOLHealth.com, Babble.com and Details.com) and newspapers (including The New York Post and the Boston Globe). To read more of her writing, visit <a href="http://amylevinepstein.com/" style="border: 0px; color: #202022; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">AmyLevinEpstein.com</a>.</div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://r.zemanta.com/?u=http%3A//www.cbsnews.com/8301-505125_162-57608618/5-things-successful-people-do-after-5-p.m/&a=213573387&rid=70cd2d0e-f080-4cf1-ba34-1c3a667c9763&e=7bcfdca08a442412c75cb2d009531738" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/213573387_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://r.zemanta.com/?u=http%3A//www.cbsnews.com/8301-505125_162-57608618/5-things-successful-people-do-after-5-p.m/&a=213573387&rid=70cd2d0e-f080-4cf1-ba34-1c3a667c9763&e=7bcfdca08a442412c75cb2d009531738" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">5 things successful people do after 5 p.m.</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://r.zemanta.com/?u=http%3A//www.cnn.com/2013/10/01/health/lighten-life/index.html&a=207259232&rid=70cd2d0e-f080-4cf1-ba34-1c3a667c9763&e=7c40b69605f52fa9a056dc29eba136c8" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/207259232_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://r.zemanta.com/?u=http%3A//www.cnn.com/2013/10/01/health/lighten-life/index.html&a=207259232&rid=70cd2d0e-f080-4cf1-ba34-1c3a667c9763&e=7c40b69605f52fa9a056dc29eba136c8" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">The key to a calmer existence</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.lifehack.org/articles/productivity/why-9-5-joke-and-how-deal.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/215477919_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.lifehack.org/articles/productivity/why-9-5-joke-and-how-deal.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Why 9 to 5 is a Joke (And How to Deal)</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.thedailymuse.com/careeradvice/links-we-love-53-ways-to-be-better/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/212034419_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.thedailymuse.com/careeradvice/links-we-love-53-ways-to-be-better/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Links We Love: 53 Ways to Be Better</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=70cd2d0e-f080-4cf1-ba34-1c3a667c9763" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com3tag:blogger.com,1999:blog-4362634453160311564.post-83924598473679975052013-10-29T09:55:00.001-05:002013-10-29T10:06:52.435-05:005 things successful people do after 5 p.m.<a href="http://www.cbsnews.com/">CBS News</a>: <br />
<span class="byText" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">By </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><br />
<div class="pagiAuthor" style="background-color: white; border: 0px; color: #202022; display: inline; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">
AMY LEVIN-EPSTEIN <span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px; vertical-align: baseline;">/</span> </div>
<span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="source" style="background-color: white; border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">MONEYWATCH<span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px 0px 8px; vertical-align: baseline;">/</span> </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">October 22, 2013, 11:45 AM</span><br />
<div class="storyText" style="background-color: white; background-image: url(http://asset3.cbsistatic.com/cnwk.1d/i/tron/overlays/bkg-highlight-620.png) !important; background-position: 50% 0%; background-repeat: no-repeat no-repeat !important; border-top-color: rgb(232, 232, 232); border-top-style: solid; border-width: 1px 0px 0px; font-family: Helvetica, Arial, sans-serif; font-size: 15px; margin: 0px; outline: 0px; padding: 20px 0px 0px; vertical-align: baseline;">
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
(MoneyWatch) You may have read the popular post by Forbes writer Jennifer Cohen about <a href="http://www.forbes.com/sites/jennifercohen/2013/10/02/5-things-super-successful-people-do-before-8-am/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="new"">five things incredibly successful people do before 8 a.m.</a>, which highlighted smart suggestions like visualizing their day and making their schedule top heavy. But that's not the only outside of work window in which you can pump up your productivity. Recently, I spoke to some career experts about things you can do after 5 o'clock that can help rejuvenate you and get you prepared for a top-notch tomorrow. Here are five they suggested trying:</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Wrap up your day</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
This includes responding to every email you received during the course of your day, says Julie Morgenstern, author of <a href="http://www.amazon.com/Time-Management-Inside-Out-Foolproof/dp/0805064699" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="new"">"Time Management From The Inside Out."</a>"Do this, even if just to tell the sender that you've received their email, and will get back to them within the next day or so with an answer."</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Plan for tomorrow</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Take a look at the rest of your work. "See what's on their schedule for the next day (and two beyond that), pull necessary prep documents and files, and have everything set to hit the ground running the next morning," says Morgenstern. And prioritize that massive To Do list. "Name your top 3 (to 6) priorities for the next day-to ensure you proactively complete those priorities, no matter what else flies at you unexpectedly," says Morgenstern. Don't forget to do the same for your team. "Plan your team's next day's priorities, and send out instructional emails or check ins."</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Take time for friends and family</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Successful people invest intentional time in their personal networks, says efficiency expert Andrew Jensen. "They recognize that success at work is empty without success in their home and with their family," says he adds. The key is to make it quality time. "They actively exercise listening, while restraining from dominating the conversations," says Jensen.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">They take care of themselves</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Investing in your health is always a smart personal, as well as business decision (if you're constantly sick, or even just tired, you won't function at your peak). "[Successful people] eat a healthy dinner, understanding the value of nutritiously investing into themselves and the corresponding returns they can expect. They exercise, channeling away pent up stress while strengthening their bodies and helping ensure a better night's sleep," says Jensen. While you're taking care of your body, don't forget to keep your personal finances healthy, too. "Don't let it pile up and become an increasingly stressful distraction," says Jensen.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">They sleep for 8+ hours</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Think staying super late is great for your career? While there are some circumstances that warrant it, in general sleep is a good career choice. "A good night's sleep is the secret weapon of highly successful people," says Alex Doman, CEO of Advanced Brain Technologies and author of <a href="http://www.amazon.com/Healing-Speed-Sound-Transforms-Brains/dp/1594630828/ref=sr_1_1?ie=UTF8&s=books&qid=1302121529&sr=8-1" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="new"">"Healing At The Speed of Sound."</a> "In the short term, a lack of adequate sleep can affect judgment, mood, ability to learn and retain information, and may increase the risk of serious accidents and injury," says Doman, adding that over time the effects may be even more grave. "In the long term, chronic sleep deprivation may lead to a host of health problems including, diabetes, cardiovascular disease, depression, and obesity."</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Make these five behaviors after-hours habits, and you might find that you become efficient -- and successful -- over time.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
</div>
<span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span class="dateStamp copyRightText" style="border: 0px; color: black; float: left; font-family: Georgia, 'Times New Roman'; font-size: 0.85em; margin: 0px 0px 20px; outline: 0px; padding: 0px; vertical-align: baseline; width: 620px;">© 2013 CBS Interactive Inc.. All Rights Reserved.</span></span><br />
<div class="shareBar inline-sharebar" style="background-color: white; border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 19px; line-height: 0.8em; margin: 0px; outline: 0px; padding: 0px 0px 30px; vertical-align: baseline; width: 620px;">
<ul style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-top-color: rgb(221, 221, 221); border-top-style: solid; border-width: 1px 0px; float: left; font-family: inherit; font-size: inherit; font-style: inherit; list-style: none; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: inherit;">
<li class="commentTeaser" style="border: 0px; float: left; font-family: inherit; font-size: inherit; font-style: inherit; height: 29px; margin: 0px; outline: 0px; padding: 0px; position: relative; text-align: left; vertical-align: baseline;"><a class="noluke" href="http://www.cbsnews.com/8301-505125_162-57608618/5-things-successful-people-do-after-5-p.m/?tag=nl.e664&s_cid=e664&ttag=e664&ftag=TRE000da0d#postComments" style="border: 0px; color: #202022; cursor: pointer; float: left; font-family: inherit; font-size: inherit; font-style: inherit; letter-spacing: -0.07em; margin: 0px; outline: none; padding: 6px 0px 7px; text-decoration: none; vertical-align: baseline;"><span class="correspondName" style="border: 0px; color: black; display: block; font-family: Helvetica, Arial, sans-serif; font-size: 1.3em; font-weight: bold; letter-spacing: -0.06em; line-height: normal; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 460px;">Amy Levin-Epstein</span><span class="correspondLinks" style="border: 0px; font-family: Helvetica, Arial, sans-serif; font-size: 0.8em; font-weight: bold; letter-spacing: normal; line-height: normal; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;"></span></a><a href="http://www.twitter.com/MWontheJob" style="border: 0px; color: #202022; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">ON TWITTER <span class="redDoubleArrows" style="border: 0px; color: #b12124; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">»</span></a><span style="color: black; font-family: Helvetica, Arial, sans-serif; font-size: 15px; letter-spacing: normal; line-height: normal;"></span><div class="dek withPic" style="border: 0px; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; letter-spacing: normal; line-height: normal; outline: 0px; padding: 3px 0px 0px; vertical-align: baseline;">
<a href="http://www.cbsnews.com/2741-505125_162-1354.html" style="border: 0px; color: #202022; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">View all articles by Amy Levin-Epstein on CBS MoneyWatch <span class="redDoubleArrows" style="border: 0px; color: #b12124; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">»</span></a><br />
Amy Levin-Epstein is a freelance writer who has been published in dozens of magazines (including Glamour, Self and Redbook), websites (including AOLHealth.com, Babble.com and Details.com) and newspapers (including The New York Post and the Boston Globe). To read more of her writing, visit <a href="http://amylevinepstein.com/" style="border: 0px; color: #202022; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">AmyLevinEpstein.com</a>.</div>
</li>
</ul>
</div>
<div id="inlineSocialBarBottomPlaceholder" style="-webkit-text-stroke-width: 0px; background-color: white; border: 0px; color: black; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; margin: 0px; orphans: auto; outline: 0px; padding: 0px; text-align: left; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; widows: auto; word-spacing: 0px;">
</div>
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=0e09b2de-69df-4986-9035-5f452ff14055" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com1tag:blogger.com,1999:blog-4362634453160311564.post-73195603013377018792013-10-17T11:44:00.001-05:002013-10-17T11:49:15.570-05:00Study shows how to fix big flaw with 401(k) plans<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.flickr.com/photos/68751915@N05/6869770873" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="retirement" border="0" class="zemanta-img-inserted" height="640" src="http://farm8.static.flickr.com/7182/6869770873_1528b7037e_m.jpg" style="border: none; font-size: 0.8em;" width="640" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 240px;">retirement (Photo credit: <a href="http://www.flickr.com/photos/68751915@N05/6869770873" target="_blank">401(K) 2013</a>)</td></tr>
</tbody></table>
<a href="http://www.cbsnews.com/">CBS News</a>: <br />
<span class="byText" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">By </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><br />
<div class="pagiAuthor" style="background-color: white; border: 0px; color: #202022; display: inline; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">
STEVE VERNON <span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px; vertical-align: baseline;">/</span> </div>
<span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="source" style="background-color: white; border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">MONEYWATCH<span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px 0px 8px; vertical-align: baseline;">/</span> </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">October 1, 2013, 7:39 AM</span><br />
<span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><br /></span>
<br />
<div class="storyText" style="background-color: white; background-image: url(http://asset3.cbsistatic.com/cnwk.1d/i/tron/overlays/bkg-highlight-620.png) !important; background-position: 50% 0%; background-repeat: no-repeat no-repeat !important; border-top-color: rgb(232, 232, 232); border-top-style: solid; border-width: 1px 0px 0px; font-family: Helvetica, Arial, sans-serif; font-size: 15px; margin: 0px; outline: 0px; padding: 20px 0px 0px; vertical-align: baseline;">
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
(<a class="zem_slink" href="http://en.wikipedia.org/wiki/CBS_MoneyWatch" rel="wikipedia" target="_blank" title="CBS MoneyWatch">MoneyWatch</a>) Most 401(k) participants plans are on their own when it comes to deciding how to turn their retirement savings into reliable, lifetime income. ... Most employers pay retiring employees a <a class="zem_slink" href="http://en.wikipedia.org/wiki/Lump_sum" rel="wikipedia" target="_blank" title="Lump sum">lump sum</a> from the <a class="zem_slink" href="http://en.wikipedia.org/wiki/401%28k%29" rel="wikipedia" target="_blank" title="401(k)">401(k) plan</a> and don't provide any help with the critical task of generating retirement income from that savings. </div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
... To set the stage for future changes, <a href="http://longevity3.stanford.edu/wp-content/uploads/2013/09/SOA_SCL_Final.pdf" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">a new study</a> from the Stanford Center on Longevity (SCL) and the <a class="zem_slink" href="http://www.soa.org/" rel="homepage" target="_blank" title="Society of Actuaries">Society of Actuaries</a> (SOA) shows employers how they can help their older workers plan for a secure retirement. (Disclosure: I was the primary author of this report).</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<ul class="arrows gray" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; list-style: none; margin: 0px 0px 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -15px -911px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;"><a href="http://www.cbsnews.com/8301-505146_162-57532764/3-ways-to-turn-your-ira-and-401-k-into-a-lifetime-retirement-paycheck/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">3 ways to turn your IRA and 401(k) into a lifetime retirement paycheck</a></li>
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -15px -911px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;"><a href="http://www.cbsnews.com/8301-505146_162-57472159/study-identifies-major-flaw-with-401-k-plans/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">Study identifies major flaw with 401(k) plans</a></li>
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -15px -911px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;"><a href="http://www.cbsnews.com/8301-505146_162-57452332/do-it-yourself-retirement-income-ira-rollover/?tag=cbsnewsMainColumnArea" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">Do it yourself retirement income</a></li>
</ul>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">What are the challenges?</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
The long-term shift from traditional pensions to defined contribution and hybrid defined benefit plans places significant responsibility on retirees to generate lifetime retirement income. For example:</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<ul class="greyBullet" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; list-style: none; margin: 0px 0px 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -446px -2606px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;">Given people's longer life expectancy these days, the money set aside for retirement may need to last a long time -- potentially 20 to 30 years or more.</li>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -446px -2606px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;">Market volatility complicates the challenge of managing savings in retirement. Since 1987, there have been four major market meltdowns. Retirees can expect -- and should plan for -- more meltdowns.</li>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -446px -2606px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;"><table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Retirement_savings_rate_if_point_966_percent_real_both_rates.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Proportion of pay to save." border="0" class="zemanta-img-inserted" height="152" src="http://upload.wikimedia.org/wikipedia/commons/thumb/7/78/Retirement_savings_rate_if_point_966_percent_real_both_rates.jpg/300px-Retirement_savings_rate_if_point_966_percent_real_both_rates.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Proportion of pay to save. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Retirement_savings_rate_if_point_966_percent_real_both_rates.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
Many employees don't know how to calculate the amount of savings they need to generate adequate income during their retirement. They often guess at this amount, and they usually guess too low. </li>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Squirrel_2pc_and_40-20_v04.11.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Retirement savings for various period..." border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/2/29/Squirrel_2pc_and_40-20_v04.11.jpg/300px-Squirrel_2pc_and_40-20_v04.11.jpg" style="border: none; font-size: 0.8em;" width="154" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Retirement savings for various periods with squirrel and nut analogy (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Squirrel_2pc_and_40-20_v04.11.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -446px -2606px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;">There's also evidence that retirees are doing a poor job of managing retirement risks; many lack a formal plan to generate retirement income from their savings, and as a result, they're planning to spend down assets at an unsustainable rate. Others are under-spending in retirement for fear of running out of money, leaving them with less money for necessary expenses.</li>
</ul>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
These challenges could all be addressed if 401(k) plan sponsors provided retirement income programs within their 401(k) plans instead of just pre-retirement investment vehicles. So why aren't more employers offering such programs? The primary reason seems to be how plan sponsors view their defined contribution plans. <a href="https://www.metlife.com/business/retirement-and-benefits/income-practices.html?WT.mc_id=vu1560" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">According to one study</a>, 91 percent of plan sponsors view them as savings plans, while only 9 percent view them as vehicles for providing retirement income.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
A cultural shift is needed: Employers and plan sponsors need to commit to operating their 401(k) plans not just as a way to save for retirement but as plans that help employees before and during their retirement.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Help is on the way</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Several reputable financial institutions offer an array of retirement income products, including AllianceBernstein, Fidelity Investments, Financial Engines, Great-West Insurance, Guided Choice, Income Solutions, Prudential, Schwab, Transamerica, UBS and Vanguard. Many of these products and services are available on the platforms of 401(k) plan administrators, such as AonHewitt, Fidelity Investments, J.P. Morgan, Mercer, T. Rowe Price, Vanguard, Wells Fargo and Xerox/Buck. The bottom line is that plan sponsors now have realistic retirement income products they can offer in their 401(k) plans.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
The SCL/SOA study provides employers with guidelines for selecting the products and services that employers can offer in their 401(k) plans and implementing a successful program of retirement income. The report describes common retirement income generators (RIG), such as annuities and systematic withdrawals, and provides projections of the amounts of retirement income that each RIG might generate. These projections show that a retiree's choice of a RIG can have a significant impact on the amount of income they'll receive, when they initially retire and throughout their retirement.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
One important conclusion from the SCL/SOA study is that plan sponsors can significantly increase the amount of retirement income employees might receive by offering retirement income products that come with institutional pricing instead of the standard retail pricing individuals have to pay for such plans. Institutionally priced products have the potential to increase retirement incomes by five to 20 percent.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Plan sponsors and employers are uniquely positioned to help their employees convert their retirement savings into income without any economic incentive that might bias individuals' decision-making. This objectivity will help older workers retire with confidence and security.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
If this scenario sounds promising to you, show this blog post to your employer and diplomatically ask them to consider implementing a program of retirement income in your 401(k) plan. Employers often respond to employee requests, and if enough of your coworkers make the same request, you can make it happen.</div>
</div>
<span class="dateStamp copyRightText" style="background-color: white; border: 0px; float: left; font-family: Georgia, 'Times New Roman'; font-size: 0.85em; font-style: italic; margin: 0px 0px 20px; outline: 0px; padding: 0px; vertical-align: baseline; width: 620px;">© 2013 CBS Interactive Inc.. All Rights Reserved.</span><span class="dateStamp copyRightText" style="background-color: white; border: 0px; float: left; font-family: Georgia, 'Times New Roman'; font-size: 0.85em; font-style: italic; margin: 0px 0px 20px; outline: 0px; padding: 0px; vertical-align: baseline; width: 620px;"><br /></span><br />
<div class="shareBar inline-sharebar" style="background-color: white; border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 19px; line-height: 0.8em; margin: 0px; outline: 0px; padding: 0px 0px 30px; vertical-align: baseline; width: 620px;">
<div>
<ul style="border: 0px; color: black; font-family: Helvetica, Arial, sans-serif; font-size: 15px; line-height: normal; list-style: none; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<li style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;"><div class="authorText" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 460px;">
<span class="correspondName" style="border: 0px; display: block; font-size: 1.3em; font-style: inherit; font-weight: bold; letter-spacing: -0.06em; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 460px;">Steve Vernon</span><span class="correspondLinks" style="border: 0px; color: #202022; font-size: 0.8em; font-style: inherit; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;"><a href="http://www.cbsnews.com/8301-505146_162-57604672/study-shows-how-to-fix-big-flaw-with-401-k-plans/stevevernon1" style="border: 0px; color: #202022; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">ON TWITTER <span class="redDoubleArrows" style="border: 0px; color: #b12124; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">»</span></a></span><br />
<div class="dek withPic" style="border: 0px; color: #666666; font-size: 1em; font-style: inherit; outline: 0px; padding: 3px 0px 0px; vertical-align: baseline;">
<a href="http://www.cbsnews.com/2741-505146_162-1348.html" style="border: 0px; color: #202022; cursor: pointer; display: block; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: bold; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">>> View all articles</a></div>
<div style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; outline: 0px; padding: 0px; vertical-align: baseline;">
For more than 35 years, consulting actuary Steve Vernon helped large employers design and manage their retirement programs. Now he's a Research Scholar for the Stanford Center on Longevity, where he helps collect, direct, and disseminate research that will improve the financial security of seniors. He also delivers retirement planning workshops and has authored Money for Life: Turn Your IRA and 401(k) Into a Lifetime Retirement Paycheck and Recession-Proof Your Retirement Years.</div>
</div>
</li>
</ul>
</div>
</div>
<div id="inlineSocialBarBottomPlaceholder" style="-webkit-text-stroke-width: 0px; background-color: white; border: 0px; color: black; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; margin: 0px; orphans: auto; outline: 0px; padding: 0px; text-align: left; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; widows: auto; word-spacing: 0px;">
</div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://beamemphis.blogspot.com/2013/09/five-401k-mistakes-to-avoid.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/206185737_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://beamemphis.blogspot.com/2013/09/five-401k-mistakes-to-avoid.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Five 401(k) mistakes to avoid</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://investmentplanguide.wordpress.com/2013/10/15/the-best-strategy-for-retiring-with-your-401k-plan/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/211400120_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://investmentplanguide.wordpress.com/2013/10/15/the-best-strategy-for-retiring-with-your-401k-plan/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">The Best Strategy for Retiring With Your 401(k) Plan</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://investorplace.com/2013/09/fidelity-401k/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/205360379_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://investorplace.com/2013/09/fidelity-401k/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Not Happy With Your 401k? Say Something.</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://korvingco.wordpress.com/2013/10/08/how-to-get-your-401k-ready-for-retirement/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_122_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://korvingco.wordpress.com/2013/10/08/how-to-get-your-401k-ready-for-retirement/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">How to Get Your 401(k) Ready for Retirement</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=16d9fdf2-b809-400e-b894-2346ab60d508" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com3tag:blogger.com,1999:blog-4362634453160311564.post-68788084873380201242013-10-15T10:39:00.001-05:002013-10-15T10:46:14.711-05:00Why ‟Keeping It Simple” Can Be a Complicated Mistake<a href="http://www.strategy-business.com/">strategy+business magazine</a>: <br />
<div class="authorPic" style="background-color: #cccccc; background-position: initial initial; background-repeat: initial initial; float: left; height: 95px; margin-right: 10px; width: 75px;">
<img alt="Sally Helgesen" border="0" height="190" src="http://www.strategy-business.com/media/image/sb-blog-Sally-Helgesen-150x190.jpg" style="height: 95px; width: 75px;" title="Sally Helgesen" width="150" /></div>
<div class="authorText" style="float: left; width: 210px;">
<div style="background-color: white; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; margin-bottom: 12px;">
Sally Helgesen is an author, speaker, and leadership development consultant, whose most recent book is <a href="http://sallyhelgesen.com/index.php/sallysbooks/the-female-vision/" style="color: #3366cc;" target="_blank">The Female Vision: Women’s Real Power at Work</a>(with Julie Johnson; <a class="zem_slink" href="http://www.bkconnection.com/" rel="homepage" target="_blank" title="Berrett-Koehler Publishers">Berrett-Koehler</a>, 2010).</div>
<div>
<br /></div>
</div>
<br />
<br />
<br />
<br />
<br />
<br />
<div class="normal" id="content" style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px !important; line-height: 20px !important;">
<div style="margin-bottom: 12px;">
Our people are dealing with complex problems. We’d like to bring you in so you can stimulate a thoughtful conversation, and hopefully stir up some big ideas that will take us forward.”</div>
<div style="margin-bottom: 12px;">
As a self-employed leadership consultant, I used to hear this kind of thing a lot, mostly before the 2008 financial crisis. ...</div>
<div style="margin-bottom: 12px;">
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Finance-dowjones-chart1.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Dow Jones Industrial Average Jan 2006..." border="0" class="zemanta-img-inserted" height="150" src="http://upload.wikimedia.org/wikipedia/commons/thumb/2/2b/Finance-dowjones-chart1.jpg/300px-Finance-dowjones-chart1.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Dow Jones Industrial Average Jan 2006- Nov 2008 中文(简体)â¬: 道琼斯工业平均指数(2006年1月-2008年11月) (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Finance-dowjones-chart1.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
I rarely hear this kind of sentiment anymore, despite the fact that so many organizations are focused on the mantra of fostering change. In fact, during the initial planning stages of a retreat or conference, I’m often told just the opposite, with some version of the following message:</div>
<div style="margin-bottom: 12px;">
“One thing you need to know is that our folks are very busy. They don’t have the time or bandwidth to deal with a lot of big-picture concepts or ideas about the future. What they want are a few simple takeaways––three things they can do on Monday morning.”</div>
<div style="margin-bottom: 12px;">
Leaving aside the question of whether the leaders in question are really looking for three things to add to their already jammed Monday calendars, I find myself increasing skeptical of this approach. It seems to be based on a faulty understanding of what professionals operating in a complex and demanding environment actually require. Harried and rushed, distracted by <a href="http://news.sutterhealth.org/2013/02/21/how-technology-overload-affects-your-brain/" style="color: #3366cc;" target="_blank">technology overload</a>, struggling with compliance issues that keep them mired in a welter of detail, and assailed by requests whose claims of urgency have become routine, the executives I meet these days often seem to be in need of refreshment and renewal rather than additional to-do’s.</div>
<div style="margin-bottom: 12px;">
Instead of three tips on how to manage invasive technologies, leaders need opportunities to articulate a broad vision of what they’re trying to achieve, so they can better distinguish which tasks require diligence and which can be let go. Instead of exhortations about the need to “manage up,” they need to understand how the erosion of barriers that defined industrial-era culture is leaving the employees they manage exposed to uncertainty and fear. Instead of quick fixes to address shifting markets, they need support to recognize how intersecting trends are creating whole new categories of unmet needs. ...</div>
<div style="margin-bottom: 12px;">
... By focusing potentially profound conversations on three action points or five bullets, those who plan seminars and retreats risk squandering the opportunity for thoughtful engagement and short-circuiting creative solutions that smart people, given the time and permission to think, are likely to come up with on their own.</div>
<div style="margin-bottom: 12px;">
Being able to shoot the rapids in an era of constant change requires robust thinking skills. People do not develop these skills by responding to prescriptive formulas, however neatly packaged as takeaways. Planting seeds that may germinate in the coming years is also a useful antidote to the sense of unrelenting urgency that pervades organizational life and that can undermine peoples’ ability to make good decisions.</div>
<div style="margin-bottom: 12px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Ninedots.svg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Solution of the Nine Dots puzzle" border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/9/91/Ninedots.svg/270px-Ninedots.svg.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 270px;">Solution of the Nine Dots puzzle (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Ninedots.svg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
Given companies’ oft-stated desire to help people “<a class="zem_slink" href="http://en.wikipedia.org/wiki/Thinking_outside_the_box" rel="wikipedia" target="_blank" title="Thinking outside the box">think outside the box</a>,” I believe consultants and other service providers do a disservice when we go along with requests to deliver overly simplified solutions to problems that will just grow more complex. Instead, we should push those who engage us to think more profoundly about what thriving in a highly demanding global environment requires. Only by doing so can we support leaders in delivering programs that extend their employees’ capacity to respond to the complexities of today’s economic and technological frontier.</div>
<div>
<br /></div>
</div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://ksdinspirations.wordpress.com/2013/10/15/leadership-development/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/211301751_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://ksdinspirations.wordpress.com/2013/10/15/leadership-development/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Leadership Development</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.armyandnavyacademy.org/leadership/philosophy" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/94110844_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.armyandnavyacademy.org/leadership/philosophy" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Leadership Philosophy</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="https://www.openforum.com/articles/the-two-leadership-styles-that-can-destroy-a-business/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/204661866_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="https://www.openforum.com/articles/the-two-leadership-styles-that-can-destroy-a-business/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">The Two Leadership Styles That Can Destroy A Business</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=8a1d6a58-3e0a-4815-bda0-7eff2eb9a34d" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-53936510468996298252013-10-15T10:12:00.001-05:002013-10-15T10:17:19.030-05:00Emotional Leveraging: It’s Really Not Manipulation?<img src="http://m.c.lnkd.licdn.com/mpr/mpr/p/1/005/01b/2ab/22f1d41.jpg" /><a href="http://www.linkedin.com/today">LinkedIn</a>: <br />
<br />
<a href="http://www.linkedin.com/profile/view?id=85816712&authType=name&authToken=xfb8&goback=%2Empd2_*1_*1_*1_*1_*1_*1_20131015055455*585816712*5emotional*5leverage*5it*5s*5really*5not*5manipulation&trk=mp-ph-pn" style="background-color: white; border: 0px; color: #006699; font-family: Arial, sans-serif; line-height: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" title="Jim Sniechowski, PhD's profile"><img alt="Jim Sniechowski, PhD" class="member-photo" height="80" src="http://m.c.lnkd.licdn.com/mpr/mpr/shrink_80_80/p/5/000/221/351/1700d92.jpg" style="border: none; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" width="80" /></a><br />
<div class="author-info" style="background-color: white; border: 0px; font-family: Arial, sans-serif; line-height: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<h2 class="author-name" style="border: 0px; font-family: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<a href="http://www.linkedin.com/profile/view?id=85816712&authType=name&authToken=xfb8&goback=%2Empd2_*1_*1_*1_*1_*1_*1_20131015055455*585816712*5emotional*5leverage*5it*5s*5really*5not*5manipulation&trk=mp-ph-pn" style="border: 0px; color: #006699; font-family: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="Jim Sniechowski, PhD's profile"><span style="font-size: small;">Jim Sniechowski, PhD</span></a></h2>
<div>
<br /></div>
<div>
<br /></div>
</div>
<div id="article-container" style="background-color: white; border: 0px; line-height: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<div id="article-body" style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;">“<a class="zem_slink" href="http://en.wikipedia.org/wiki/Leverage_%28finance%29" rel="wikipedia" target="_blank" title="Leverage (finance)">Leverage</a>” has become a significant if not dominant concept in the corporate lexicon and it’s now a buzzword used every day in many ways. Here are examples of how I’ve heard “leverage” used: “He carries a lot of leverage” and “You’re not exercising the right leverage” and “How do we leverage these relationships?” and “We need to leverage this negotiation” and “We have to leverage our <a class="zem_slink" href="http://en.wikipedia.org/wiki/Human_capital" rel="wikipedia" target="_blank" title="Human capital">human capital</a>.”</span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;"><b>So just what is “leverage?”</b></span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Leverage is<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"> using something you already have---in the case of human capital </span></span><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">the skills, knowledge, and experience possessed by the employees of a company---to achieve something new or better.</span><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">In other words you don’t have to invent something to achieve your objective. You can use what is already present.</span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;">So what about emotional leverage? What do you think and how do you feel about the idea of using people’s emotions to achieve some objective? Many people would say it’s repulsive, unfair and controlling, and what’s worse, even devious and manipulative. But is it really?</span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Financial_Leverage_Profit_Engine.png" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Understanding Financial Leverage" border="0" class="zemanta-img-inserted" height="150" src="http://upload.wikimedia.org/wikipedia/commons/thumb/b/ba/Financial_Leverage_Profit_Engine.png/300px-Financial_Leverage_Profit_Engine.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Understanding Financial Leverage (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Financial_Leverage_Profit_Engine.png" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;">For the purposes of this post, consider that you are managing a person who is a passionate idealist. He assesses his decisions and actions through the lens and measure of his ideals which he holds dear. However you, as his manager, can clearly see that his commitment to his ideals, partly conscious and partly unconscious, is standing in the way of his getting along with the members of his team. His believes that the other team members fall short of what he views as acceptable. According to him, unless they can “come up to” his bar he has difficulty working with them. But he is an excellent talent and an asset to the company. What do you do?</span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;">You can request that he be given an individual contributor role. But for the overall purposes of your department he has been assigned to you and it makes most sense that he be on your team.</span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;">You can try various techniques to “get him” to conform. But trying to change someone, no matter how important or valuable your objective, is generally a futile endeavor. People don’t change unless there’s something in it for them. So what do you do?</span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<strong style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;">People Buy Emotionally and Justify Logically</span></strong></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;">An axiom in sales states that people buy emotionally, whether it’s an object or an idea, and use logic to justify what they’ve bought or bought into. To sell or persuade someone of something you must begin with establishing emotional appeal.</span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Idealists </span>crave that which transcends the bounds of the material world; because for them reality is fundamentally mental and mentally constructed. They are less attracted to money, or titles, or material things---although unconsciously that may be a different story as long as you can link it to their beliefs. They are powered by ideas placing high value on emotional self-awareness as a precondition for the bettering of humanity. Applying the sales axiom to facilitate change you must begin by “embracing” rather than resisting what the idealist holds dear---his need for excellence, the purity of his point of view, and his desire to contribute to the betterment of humanity. That’s where you will find his emotional base. In sales it’s called the “sweet spot.”</span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;">This describes only part of the idealist’s character structure but it will do for the purpose of illustrating the power of non-manipulative emotional leverage. </span><span style="font-family: Times, 'Times New Roman', serif; font-style: inherit;">What he is committed to is generally of high value. If his beliefs can be used to turn him toward cooperatively it would benefit the team and his own sense of fulfillment.</span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, 'Times New Roman', serif; font-style: inherit;"><br /></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<strong style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;">Emotional Leverage</span></strong></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;">To employ emotional leverage begin by recognizing that emotions are information, not unlike thoughts. They are data points you must assess. If your intention is to benefit him as well as yourself you won’t abuse his emotions. You won’t disrespect or abuse what he values. But you must keep his emotions at an arm’s length. You cannot become immersed in them or you will lose your ability to assess and determine what is best for both of you. For the purposes of persuading him to become a better team player you must see his emotions as a lever to move him.</span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;">To succeed using emotional leverage you must:</span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">●</span> Remain aware that his vision is the product of an emotional base and, no matter how he rationalizes his position, he clings to it for some emotional reason;</span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">●</span> See that if you want him move in your direction enough to be able to work well with the team your task is to discover the emotional value that drives his vision---his sweet spot; and</span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">● </span><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Understand that </span>once you know his emotional sweet spot you can craft an approach that blends his need with yours so that you both can feel successful.</span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;">And you are doing so by leveraging his emotional state.</span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;">To reiterate, you are <span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">using something he already has, his passionate idealism, </span>to achieve something new or better for you and for him.</span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><br /></span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;">The point here is to keep in mind and be sensitive to the emotional elements involved---mostly in him. In that way you can use emotional leverage to best serve him, your team, the job, and the company, and not least of all yourself as an excellent manager.</span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;">This example of an idealist is only one of many personality types you will encounter but the process of emotional leveraging remains the same.</span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;">How do feel about emotional leveraging? Please let me know.</span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div class="MsoNormalCxSpMiddle" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;">(Photo Credit: Jenny Waterloo Flickr)</span></span></div>
<div class="MsoNormalCxSpMiddle" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Jim Sniechowski, PhD and his wife </span><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><a href="http://www.linkedin.com/profile/view?id=85384926" style="border: 0px; color: #006699; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">Judith Sherven</a></span><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">, PhD </span><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><a href="http://judithandjim.com/" style="border: 0px; color: #006699; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">http://JudithandJim.com</a></span><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"> have developed a penetrating perspective on people’s resistance to success, which they call The Fear of Being Fabulous. Recognizing the power of unconscious programming to always outweigh conscious desires, they assert that no one is ever failing. They are always succeeding. The question is, at what?</span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><br /></span></span></div>
<div class="MsoNormal" style="border: 0px; font-style: inherit; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;">
<span style="font-family: Times, Times New Roman, serif;"><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Currently working as consultants on retainer to LinkedIn providing executive coaching, leadership training and consulting as well as working with private clients around the world, they continually prove that when unconscious beliefs are brought to the surface, the barriers to greater success and leadership presence begin to fade away. They call it Overcoming the Fear of Being Fabulous.</span><span style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><a href="http://overcomingthefearofbeingfabulous.com/" style="border: 0px; color: #006699; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">http://OvercomingtheFearofBeingFabulous.com</a></span></span></div>
</div>
<div id="social-actions-footer" style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
</div>
<div id="featured-on" style="background-color: white; border: 0px; line-height: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<div class="channel-tags" style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<ul style="border: 0px; font-style: inherit; list-style: none; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div style="text-align: left;">
<span style="font-family: Times, 'Times New Roman', serif; font-style: inherit;">Featured on:</span></div>
<li class="tag-item" style="border: 0px; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;"><a class="tag-name" href="http://www.linkedin.com/channels/leadership_and_management?goback=%2Empd2_*1_*1_*1_*1_*1_*1_20131015055455*585816712*5emotional*5leverage*5it*5s*5really*5not*5manipulation&trk=tod-post-tag" style="border: 0px; color: #006699; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span style="font-family: Times, Times New Roman, serif;">Leadership & Management</span></a></li>
<li></li>
</ul>
</div>
</div>
<div style="text-align: left;">
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk">'via Blog this'</a></div>
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://blogs.hbr.org/2013/10/culture-not-leverage-made-wall-street-riskier/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/210296842_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://blogs.hbr.org/2013/10/culture-not-leverage-made-wall-street-riskier/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Culture, Not Leverage, Made Wall Street Riskier</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=56666a91-73bb-4576-8266-4c0ff9f28fc4" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-50226430868176633112013-10-07T12:52:00.001-05:002013-10-07T13:00:13.404-05:00Debt ceiling: Understanding what's at stake<a href="http://www.cbsnews.com/">CBS News</a>: <br />
<span class="byText" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">By </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><br />
<div class="pagiAuthor" style="background-color: white; border: 0px; color: #202022; display: inline; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">
ALAIN SHERTER <span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px; vertical-align: baseline;">/</span> </div>
<span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="source" style="background-color: white; border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">MONEYWATCH<span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px 0px 8px; vertical-align: baseline;">/</span> </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">October 7, 2013, 7:40 AM</span><br />
<span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><br /></span>
<br />
<div class="storyText" style="background-color: white; background-image: url(http://asset3.cbsistatic.com/cnwk.1d/i/tron/overlays/bkg-highlight-620.png) !important; background-position: 50% 0%; background-repeat: no-repeat no-repeat !important; border-top-color: rgb(232, 232, 232); border-top-style: solid; border-width: 1px 0px 0px; font-family: Helvetica, Arial, sans-serif; font-size: 15px; margin: 0px; outline: 0px; padding: 20px 0px 0px; vertical-align: baseline;">
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
(MoneyWatch) It is the economic calamity that no one expects and everyone fears.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Experts agree that failing to raise the nation's <a class="zem_slink" href="http://en.wikipedia.org/wiki/United_States_debt_ceiling" rel="wikipedia" target="_blank" title="United States debt ceiling">debt ceiling</a> by Oct. 17, when U.S. officials say the government will run out of money to pay its bills, would gravely wound the economy, and perhaps even throw it back into recession. Because <a class="zem_slink" href="http://en.wikipedia.org/wiki/United_States_Treasury_security" rel="wikipedia" target="_blank" title="United States Treasury security">Treasury bonds</a> and the dollar are cornerstones of the global financial system, meanwhile, the shock wave would be felt around the world.</div>
<a data-assetid="50156308" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156308n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;"></a><br />
<div class="storyEmbed" style="border-bottom-color: rgb(222, 222, 222); border-bottom-style: solid; border-width: 0px 0px 1px; clear: left; float: left; font-family: inherit; font-size: inherit; font-style: inherit; margin: 4px 20px 20px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 220px; zoom: 1;">
<br />
<figure class="video" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px 0px -32px; outline: 0px; padding: 0px 0px 40px; position: relative; vertical-align: baseline; width: 220px;"><a data-assetid="50156308" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156308n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;"><img class="image220" src="http://i.i.cbsi.com/cnwk.1d/i/tim2/2013/10/02/Politics_Blankfein_102_220x157.jpg" style="border: 0px; display: block; font-family: inherit; font-size: inherit; font-style: inherit; height: 140px; margin: 0px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline; width: 220px;" /></a></figure><br />
<div class="meta" style="border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; line-height: 22px; margin-top: 4px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline; width: 220px; z-index: 11;">
<a data-assetid="50156308" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156308n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">Play <span style="border: 0px; color: #b12124; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-style: normal; font-weight: 700; margin: 0px; outline: 0px; padding: 0px 0px 0px 2px; text-transform: uppercase; vertical-align: baseline;">VIDEO</span></a></div>
<h3 style="-webkit-font-smoothing: subpixel-antialiased; border-bottom-width: 0px; border-left-width: 0px; border-right-width: 0px; border-top-style: none; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 1.4em; font-style: inherit; letter-spacing: -0.07em; line-height: 1em; margin: 0px; outline: 0px; padding: 5px 0px 10px; vertical-align: baseline; width: 220px;">
<a data-assetid="50156308" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156308n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">
Bank CEOs: Don't play games with debt ceiling</a></h3>
</div>
<a data-assetid="50156308" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156308n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">
</a><br />
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
"The potential is disastrous," said Gus Faucher, senior economist with PNC Financial Services Group. "We would see interest rates spike across the board. We'd see a huge crash in the dollar. People count on lending their money to the federal government and getting it back, and if that trust is taken away -- it's never happened that we haven't met our obligations as a nation -- then that has very, very negative consequences for the U.S. economy."</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
The consequences are so severe that, even <a href="http://www.cbsnews.com/8301-250_162-57606243/boehner-not-enough-votes-for-clean-spending-bill-to-end-shutdown/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">as the government shutdown</a> enters its second week, most seasoned political observers still expect Congress to ultimately reach an eleventh-hour deal to lift the government's borrowing limit.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
But what <a href="http://www.cbsnews.com/8301-3460_162-57606229/treasury-secretary-warns-congress-nothing-good-will-come-of-failure-to-raise-debt-ceiling/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">exactly is the debt ceiling</a>, and exactly how worried should Americans be that it could come crashing down?</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">What is the debt ceiling?</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:US_Public_Debt_Ceiling_1981-2010.png" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Chart of the United States' debt ceil..." border="0" class="zemanta-img-inserted" height="145" src="http://upload.wikimedia.org/wikipedia/commons/thumb/e/ed/US_Public_Debt_Ceiling_1981-2010.png/300px-US_Public_Debt_Ceiling_1981-2010.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Chart of the United States' debt ceiling from 1981 to 2010 in $ trillion. This chart tracks the debt ceiling at the end of each calendar year. Years are color coded by congressional control and presidential terms highlighted. Data source: http://www.treasurydirect.gov/NP/BPDLogin?application=np Modified chart by http://commons.wikimedia.org/w/index.php?title=User:LibertyUSArocks&action=edit&redlink=1 to remove New York Times logo and make more NPOV. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:US_Public_Debt_Ceiling_1981-2010.png" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
The debt ceiling is the total amount of money the U.S. government can borrow (by selling Treasury bonds) to pay its obligations, including interest on the national debt, Social Security and Medicare benefits, and many other payments. That limit is currently $16.7 trillion, although technically the government already exceeded it in May. The Treasury Department has since used various measures to continue borrowing. </div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
During World War I, amid uncertainty regarding the total costs of funding U.S. involvement in the conflict, Congress created the cap in 1917 to put an upper limit on federal borrowing. Since 1960, Congress has raised the debt ceiling 78 times.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">How is the debt ceiling changed?</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Lawmakers can adjust it by passing a standalone bill or by including it in another piece of legislation as an amendment.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:USDebt.png" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="U.S. debt from 1940 to 2010. Red lines indicat..." border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/3/3b/USDebt.png/300px-USDebt.png" style="border: none; font-size: 0.8em;" width="171" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">U.S. debt from 1940 to 2010. Red lines indicate the Debt Held by the Public (net public debt) and black lines indicate the Total Public Debt Outstanding (gross public debt), the difference being that the gross debt includes that held by the federal government itself. The second panel shows the two debt figures as a percentage of U.S. GDP (dollar value of U.S. economic production for that year). The top panel is deflated so every year is in 2010 dollars. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:USDebt.png" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Does raising the debt ceiling increase the federal debt?</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
No. Lifting the borrowing limit simply allows the government to pay its existing bills. That debt exists whether or not Congress authorizes additional borrowing, and to avoid default it must be paid.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Why can't Congress and the White House avoid lifting the cap by cutting federal spending?</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Because preventing the government from borrowing to meet its obligations would require all discretionary spending, such as for defense, education, housing and other annual appropriations, to stop, according to the Congressional Research Service. Most of the outlays for mandatory programs, such as Social Security, also would have to be halted, while taxes would need to rise to ensure the government had money to spend. Deep spending cuts and tax hikes would throw the economy into recession.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Why is Oct. 17 a critical date?</b></div>
<a data-assetid="50156561" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156561n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;"></a><br />
<div class="storyEmbed" style="border-bottom-color: rgb(222, 222, 222); border-bottom-style: solid; border-width: 0px 0px 1px; clear: left; float: left; font-family: inherit; font-size: inherit; font-style: inherit; margin: 4px 20px 20px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 220px; zoom: 1;">
<br />
<figure class="video" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px 0px -32px; outline: 0px; padding: 0px 0px 40px; position: relative; vertical-align: baseline; width: 220px;"><a data-assetid="50156561" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156561n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;"><img class="image220" src="http://i.i.cbsi.com/cnwk.1d/i/tim2/2013/10/06/FTN_Lew_106_220x157.jpg" style="border: 0px; display: block; font-family: inherit; font-size: inherit; font-style: inherit; height: 140px; margin: 0px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline; width: 220px;" /></a></figure><br />
<div class="meta" style="border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; line-height: 22px; margin-top: 4px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline; width: 220px; z-index: 11;">
<a data-assetid="50156561" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156561n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">Play <span style="border: 0px; color: #b12124; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-style: normal; font-weight: 700; margin: 0px; outline: 0px; padding: 0px 0px 0px 2px; text-transform: uppercase; vertical-align: baseline;">VIDEO</span></a></div>
<h3 style="-webkit-font-smoothing: subpixel-antialiased; border-bottom-width: 0px; border-left-width: 0px; border-right-width: 0px; border-top-style: none; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 1.4em; font-style: inherit; letter-spacing: -0.07em; line-height: 1em; margin: 0px; outline: 0px; padding: 5px 0px 10px; vertical-align: baseline; width: 220px;">
<a data-assetid="50156561" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156561n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">
Lew: Raise debt ceiling to avoid default "abyss"</a></h3>
</div>
<a data-assetid="50156561" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156561n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">
</a><br />
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<a href="http://www.cbsnews.com/8301-250_162-57605592/treasury-using-final-tools-to-avoid-debt-limit-lew-says/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">Treasury Secretary Jacob Lew recently forecast</a>that on Oct. 17 the government would have about $30 billion on hand. That isn't enough because the government spends as much as $60 billion per day. "If we have insufficient cash on hand, it would be impossible for the United States of America to meet all of its obligations for the first time in our history," he said last week in a letter to congressional leaders.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">What happens if Congress doesn't raise the debt ceiling?</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
If the government runs low on cash, it will have to withhold a range of payments. Retirees might not get their Social Security checks, especially worrisome for the millions of Americans who depend almost entirely on the social insurance program for income. The same goes for Medicare and Medicaid recipients. Holders of Treasury notes, from Wall Street and other global banks to foreign governments, also could get stiffed, jeopardizing the solvency of many financial institutions and choking off global credit flows.</div>
<a data-assetid="50156586" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156586n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;"></a><br />
<div class="storyEmbed" style="border-bottom-color: rgb(222, 222, 222); border-bottom-style: solid; border-width: 0px 0px 1px; clear: left; float: left; font-family: inherit; font-size: inherit; font-style: inherit; margin: 4px 20px 20px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 220px; zoom: 1;">
<br />
<figure class="video" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px 0px -32px; outline: 0px; padding: 0px 0px 40px; position: relative; vertical-align: baseline; width: 220px;"><a data-assetid="50156586" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156586n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;"><img class="image220" src="http://i.i.cbsi.com/cnwk.1d/i/tim2/2013/10/06/EN_1006ZandiChat_220x157.jpg" style="border: 0px; display: block; font-family: inherit; font-size: inherit; font-style: inherit; height: 140px; margin: 0px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline; width: 220px;" /></a></figure><br />
<div class="meta" style="border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; line-height: 22px; margin-top: 4px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline; width: 220px; z-index: 11;">
<a data-assetid="50156586" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156586n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">Play <span style="border: 0px; color: #b12124; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-style: normal; font-weight: 700; margin: 0px; outline: 0px; padding: 0px 0px 0px 2px; text-transform: uppercase; vertical-align: baseline;">VIDEO</span></a></div>
<h3 style="-webkit-font-smoothing: subpixel-antialiased; border-bottom-width: 0px; border-left-width: 0px; border-right-width: 0px; border-top-style: none; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 1.4em; font-style: inherit; letter-spacing: -0.07em; line-height: 1em; margin: 0px; outline: 0px; padding: 5px 0px 10px; vertical-align: baseline; width: 220px;">
<a data-assetid="50156586" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156586n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">
Financial markets wary of looming debt ceiling deadline</a></h3>
</div>
<a data-assetid="50156586" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156586n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">
</a><br />
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
The U.S. also would struggle to pay the interest on its debt, including a $6 billion payout due at the end of the month. At that point, the U.S. would be in default of its obligations. The value of Treasury bonds and the dollar would nosedive. The nation's borrowing costs would soar as anxious investors demanded a higher return to buy suddenly shaky U.S. debt. And because the interest rate on Treasuries provides a benchmark for rates on other loans, from mortgages and credit cards to car and student loans, borrowing would become far more costly for consumers and businesses. Stock markets in the U.S. and elsewhere around the world would almost certainly plunge.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
"When stock prices fall, investment or other spending to expand a business is more costly," the Treasury Department said in a report last week outlining the potential impact of the debt-ceiling fight. "The effects on households and businesses, moreover, are reinforcing. Less capacity and willingness of households to spend, when businesses have less incentive to invest, hire and expand production, all lead to weaker economic activity."</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
In short, the already fragile economic recovery could stall.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Haven't we been here before?</b></div>
<a data-assetid="50156237" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156237n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;"></a><br />
<div class="storyEmbed" style="border-bottom-color: rgb(222, 222, 222); border-bottom-style: solid; border-width: 0px 0px 1px; clear: left; float: left; font-family: inherit; font-size: inherit; font-style: inherit; margin: 4px 20px 20px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 220px; zoom: 1;">
<br />
<figure class="video" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px 0px -32px; outline: 0px; padding: 0px 0px 40px; position: relative; vertical-align: baseline; width: 220px;"><a data-assetid="50156237" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156237n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;"><img class="image220" src="http://i.i.cbsi.com/cnwk.1d/i/tim2/2013/10/01/Politics_Obama4_1001_220x157.jpg" style="border: 0px; display: block; font-family: inherit; font-size: inherit; font-style: inherit; height: 140px; margin: 0px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline; width: 220px;" /></a></figure><br />
<div class="meta" style="border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; line-height: 22px; margin-top: 4px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline; width: 220px; z-index: 11;">
<a data-assetid="50156237" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156237n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">Play <span style="border: 0px; color: #b12124; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-style: normal; font-weight: 700; margin: 0px; outline: 0px; padding: 0px 0px 0px 2px; text-transform: uppercase; vertical-align: baseline;">VIDEO</span></a></div>
<h3 style="-webkit-font-smoothing: subpixel-antialiased; border-bottom-width: 0px; border-left-width: 0px; border-right-width: 0px; border-top-style: none; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 1.4em; font-style: inherit; letter-spacing: -0.07em; line-height: 1em; margin: 0px; outline: 0px; padding: 5px 0px 10px; vertical-align: baseline; width: 220px;">
<a data-assetid="50156237" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156237n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">
Not raising debt limit would make Congress "a deadbeat," Obama says</a></h3>
</div>
<a data-assetid="50156237" data-assettypeid="14" data-nodeid="505123" data-overlay="1" data-overlayenabled="true" href="http://www.cbsnews.com/video/watch/?id=50156237n" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">
</a><br />
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
There is recent precedent for such turmoil. Consumer confidence plummeted after lawmakers squared off over the debt ceiling in the summer of 2011, while the Standard & Poor's 500 stock index dropped nearly 20 percent. Hiring among small businesses slowed. Ever after a deal was struck to raise the cap in August of that year, credit rating agency Standard & Poor's downgraded U.S. debt for the first time ever.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Beyond the immediate economic fallout of defaulting on its debt, for the U.S. the symbolic blow might be even greater. In the post-World War II era, Treasuries and the greenback have -- for better and for worse -- served as the foundation of the global financial system. A default would shatter the faith on which that system relies.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">How much danger are we in?</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Although financial markets are not yet in panic mode, the standoff in Washington has them worried. Unlike during the 2011 dispute, when Republicans and most Democrats favored cutting federal spending, the stark division over Obamacare suggests there may be less room for compromise this time around. One clear sign of distress: Interest rates on short-term Treasury bonds rose last week, as investors seek greater yields to offset what they perceive as the greater risk of holding the debt.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Still, most economists, stock analysts and, for all the pointed rhetoric on Capitol Hill, even congressional leaders themselves downplay the chances of a default. The belief is that common sense, or at least a sense of political self-preservation, will prevail.</div>
</div>
<span class="dateStamp copyRightText" style="background-color: white; border: 0px; float: left; font-family: Georgia, 'Times New Roman'; font-size: 0.85em; font-style: italic; margin: 0px 0px 20px; outline: 0px; padding: 0px; vertical-align: baseline; width: 620px;">© 2013 CBS Interactive Inc.. All Rights Reserved.</span><br />
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.theblaze.com/blog/2013/09/19/notable-quotable-obamas-unique-take-on-the-debt-ceiling/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/203616795_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.theblaze.com/blog/2013/09/19/notable-quotable-obamas-unique-take-on-the-debt-ceiling/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Notable & Quotable: Obama's *unique* take on the debt ceiling</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.theblaze.com/stories/2013/10/07/major-credit-ratings-agency-ceo-is-pretty-confident-about-how-the-debt-ceiling-fight-will-end/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/209035732_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.theblaze.com/stories/2013/10/07/major-credit-ratings-agency-ceo-is-pretty-confident-about-how-the-debt-ceiling-fight-will-end/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Major Credit Ratings Agency CEO Is Pretty Confident About How the Debt Ceiling Fight Will End</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.npr.org/templates/story/story.php?storyId=229758485&ft=1&f=1014" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/208682347_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.npr.org/templates/story/story.php?storyId=229758485&ft=1&f=1014" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">The Debt Ceiling Looms Over Budget Showdown</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://canadafreepress.com/index.php/article/58311" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/207954521_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://canadafreepress.com/index.php/article/58311" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">The Real Debt Ceiling</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=4fac20e0-5489-41b8-b4cc-fdf2254d52a6" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-44004702750763019332013-09-27T12:35:00.001-05:002013-09-27T12:41:06.694-05:00Why I Get My Best Ideas in the Shower<a href="http://www.strategy-business.com/">strategy+business magazine</a>: <br />
<br />
<span style="background-color: white; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif;">Theodore Kinni</span><br />
<span style="background-color: white; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px;"><br /></span>
<br />
<div class="normal" id="content" style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px !important; line-height: 20px !important;">
<div style="margin-bottom: 12px;">
I get a lot of good ideas in the shower, but I never thought too much about why until I read a new book by <a href="http://oribrafman.com/bios/ori-brafman" style="color: #3366cc;" target="_blank">Ori Brafman</a> and <a href="http://www.riverene.com/bio/team.php" style="color: #3366cc;" target="_blank">Judah Pollack</a>, <a href="http://www.amazon.com/gp/product/0307886670/ref=as_li_qf_sp_asin_il_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0307886670&linkCode=as2&tag=strategybusin-20" style="color: #3366cc;" target="_blank"><em>The Chaos Imperative: How Chance and Disruption Increase Innovation, Effectiveness, and Success</em> </a>(<a class="zem_slink" href="http://www.randomhouse.com/crown/" rel="homepage" target="_blank" title="Crown Publishing Group">Crown Business</a>, 2013). It turns out that it’s not the water pelting my noggin or the shampoo that promotes healthy, silky smooth hair triggering my creativity. It’s the <a class="zem_slink" href="http://en.wikipedia.org/wiki/Default_network" rel="wikipedia" target="_blank" title="Default network">default mode network</a> in my brain.</div>
<div style="margin-bottom: 12px;">
Neuroscientists have long known that the human brain is always on, even when its owner isn’t consciously using it. (For other perspectives on this phenomenon published in <em>s+b</em>, see <a href="http://www.strategy-business.com/article/00156?pg=all" style="color: #3366cc;">Matthew May’s piece</a> from the Spring 2013 issue, and the <a href="http://www.strategy-business.com/article/00210" style="color: #3366cc;">Thought Leader interview with Loran Nordgren</a> in the Autumn 2013 issue.) In fact, that’s exactly when the default mode network—a connected group of functional areas within the brain—is most active. As Brafman and Pollock explain it, “The default mode is always engaged, unless we actually<em> interrupt</em> it to perform a specific task.”</div>
<div style="margin-bottom: 12px;">
This neural network helps us evaluate our environment, reflect on it, and make connections between external information and the data we have stored in our heads. These connections are the fodder for all kinds of creative endeavors, including business innovation. ...</div>
<div style="margin-bottom: 12px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Albert_Einstein_Head.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Albert Einstein Français : Portrait d..." border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/d/d3/Albert_Einstein_Head.jpg/300px-Albert_Einstein_Head.jpg" style="border: none; font-size: 0.8em;" width="153" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Albert Einstein Français : Portrait d'Albert Einstein (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Albert_Einstein_Head.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
Brafman and Pollack would say that my shower is “white space”—a time and a place in which I let my thoughts become less structured and more chaotic. In <em>The Chaos Imperative</em>, they point out how the white space in the lives of people like <a class="zem_slink" href="http://www.rottentomatoes.com/celebrity/albert_einstein" rel="rottentomatoes" target="_blank" title="Albert Einstein">Albert Einstein</a> and <a class="zem_slink" href="http://www.crunchbase.com/person/steve-jobs" rel="crunchbase" target="_blank" title="Steve Jobs">Steve Jobs</a> produced some pretty good ideas, like the theory of relativity and all those digital fonts in your computer. The authors also describe how they have worked with the U.S. Army to produce fresh thinking by introducing a bit of white space into an environment in which being “on task” is a fetish.</div>
<div style="margin-bottom: 12px;">
So, if you’re pursuing innovation in your company (and what company isn’t?), what can you do get white space working in your innovation process? Brafman and Pollack offer these four tips in the book:</div>
<div style="margin-bottom: 12px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.crunchbase.com/person/steve-jobs" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Image representing Steve Jobs as depicted in C..." border="0" class="zemanta-img-inserted" height="200" src="http://www.crunchbase.com/assets/images/resized/0001/0974/10974v7-max-250x250.jpg" style="border: none; font-size: 0.8em;" width="154" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 193px;">Image via <a href="http://www.crunchbase.com/" target="_blank">CrunchBase</a></td></tr>
</tbody></table>
<strong>Employ white space judiciously</strong>. It works best when you have a clear goal in mind and have already spent some time consciously working on a problem.</div>
<div style="margin-bottom: 12px;">
<strong>Consider how much white space is too much</strong>. Ask people if they feel like they need more or less unstructured time.</div>
<div style="margin-bottom: 12px;">
<strong>Move</strong>. As long as it doesn’t require a good deal of conscious thought, exercise is a proven way to trigger the default mode network.</div>
<div style="margin-bottom: 12px;">
<strong>Create a micro white space</strong>. Don’t look for answers as soon as you ask a question; give people 20 seconds or more to reflect. Likewise, start an idea session with a minute of silent reflection on the meeting’s purpose.</div>
<div>
<br /></div>
</div>
<div class="authorName" style="background-color: white; background-image: url(http://www.strategy-business.com/media/image/sb-blog-wrap-arrow.png); background-position: 0px 100%; background-repeat: no-repeat no-repeat; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; left: 0px !important; max-width: 87px; padding-bottom: 15px; padding-left: 5px; position: absolute; top: -5px; z-index: 10;">
<span style="-webkit-box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; background-color: #c9da29; box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; color: black; font-weight: bold; padding: 0px;"><br /></span></div>
<div class="authorName" style="background-color: white; background-image: url(http://www.strategy-business.com/media/image/sb-blog-wrap-arrow.png); background-position: 0px 100%; background-repeat: no-repeat no-repeat; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; left: 0px !important; max-width: 87px; padding-bottom: 15px; padding-left: 5px; position: absolute; top: -5px; z-index: 10;">
<span style="-webkit-box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; background-color: #c9da29; box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; color: black; font-weight: bold; padding: 0px;"><br /></span></div>
<div class="authorName" style="background-color: white; background-image: url(http://www.strategy-business.com/media/image/sb-blog-wrap-arrow.png); background-position: 0px 100%; background-repeat: no-repeat no-repeat; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; left: 0px !important; max-width: 87px; padding-bottom: 15px; padding-left: 5px; position: absolute; top: -5px; z-index: 10;">
<span style="-webkit-box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; background-color: #c9da29; box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; color: black; font-weight: bold; padding: 0px;"><br /></span></div>
<div class="authorName" style="background-color: white; background-image: url(http://www.strategy-business.com/media/image/sb-blog-wrap-arrow.png); background-position: 0px 100%; background-repeat: no-repeat no-repeat; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; left: 0px !important; max-width: 87px; padding-bottom: 15px; padding-left: 5px; position: absolute; top: -5px; z-index: 10;">
<span style="-webkit-box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; background-color: #c9da29; box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; color: black; font-weight: bold; padding: 0px;"><br /></span></div>
<div class="authorName" style="background-color: white; background-image: url(http://www.strategy-business.com/media/image/sb-blog-wrap-arrow.png); background-position: 0px 100%; background-repeat: no-repeat no-repeat; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; left: 0px !important; max-width: 87px; padding-bottom: 15px; padding-left: 5px; position: absolute; top: -5px; z-index: 10;">
<span style="-webkit-box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; background-color: #c9da29; box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; color: black; font-weight: bold; padding: 0px;"><br /></span></div>
<div class="authorName" style="background-color: white; background-image: url(http://www.strategy-business.com/media/image/sb-blog-wrap-arrow.png); background-position: 0px 100%; background-repeat: no-repeat no-repeat; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; left: 0px !important; max-width: 87px; padding-bottom: 15px; padding-left: 5px; position: absolute; top: -5px; z-index: 10;">
<span style="-webkit-box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; background-color: #c9da29; box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; color: black; font-weight: bold; padding: 0px;"><br /></span></div>
<div class="authorName" style="background-color: white; background-image: url(http://www.strategy-business.com/media/image/sb-blog-wrap-arrow.png); background-position: 0px 100%; background-repeat: no-repeat no-repeat; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; left: 0px !important; max-width: 87px; padding-bottom: 15px; padding-left: 5px; position: absolute; top: -5px; z-index: 10;">
<span style="-webkit-box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; background-color: #c9da29; box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; color: black; font-weight: bold; padding: 0px;"><br /></span></div>
<div class="authorName" style="background-color: white; background-image: url(http://www.strategy-business.com/media/image/sb-blog-wrap-arrow.png); background-position: 0px 100%; background-repeat: no-repeat no-repeat; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; left: 0px !important; max-width: 87px; padding-bottom: 15px; padding-left: 5px; position: absolute; top: -5px; z-index: 10;">
<span style="-webkit-box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; background-color: #c9da29; box-shadow: rgb(201, 218, 41) 0px 0px 0px 5px; color: black; font-weight: bold; padding: 0px;"><br /></span></div>
<div class="authorPic" style="background-color: #cccccc; color: #333333; float: left; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; height: 95px; margin-right: 10px; width: 75px;">
<span style="background-color: white;">Theodore Kinni is senior editor for books at</span><span style="background-color: white;"> </span><em style="background-color: white;">strategy+business</em><span style="background-color: white;">.</span><a href="http://www.strategy-business.com/Theodore-Kinni" style="color: #3366cc;"><img alt="Ted Kinni" border="0" height="190" src="http://www.strategy-business.com/media/image/sb-blog-ted_kinni-150x190.jpg" style="height: 95px; width: 75px;" title="Ted Kinni" width="150" /></a><span style="background-color: white;"> </span></div>
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.sacbee.com/2013/09/24/5766071/rex-huppke-benefit-of-downtime.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_60_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.sacbee.com/2013/09/24/5766071/rex-huppke-benefit-of-downtime.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Rex Huppke: Benefit of downtime a real no-brainer</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0074070" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/197780083_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0074070" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Structural Interactions within the Default Mode Network Identified by Bayesian Network Analysis in Alzheimer's Disease</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0072159" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/195163037_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0072159" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Default-Mode Network Changes in Huntington's Disease: An Integrated MRI Study of Functional Connectivity and Morphometry</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://blogs.scientificamerican.com/beautiful-minds/2013/09/25/mind-wandering-a-new-personal-intelligence-perspective/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/205430517_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://blogs.scientificamerican.com/beautiful-minds/2013/09/25/mind-wandering-a-new-personal-intelligence-perspective/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Mind Wandering: A New Personal Intelligence Perspective</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=2a34a562-7b7d-44a3-aed1-d42d57f12425" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-11798756045256514562013-09-27T10:41:00.001-05:002013-09-27T10:43:58.867-05:00Five 401(k) mistakes to avoid<div class="image620 " style="background-color: white; border: 0px; font-family: Helvetica, Arial, sans-serif; font-size: 15px; height: 350px; margin: 0px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline; width: 620px;">
<img alt="401k, retire, retirement, retiring, 401(k) plan, money, investment, investing" src="http://i.i.cbsi.com/cnwk.1d/i/tim2/2013/09/04/iStock_000002577507Small_620x350.jpg" style="border: 0px; display: block; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline; z-index: 1;" /></div>
<span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 0.8em;">401k, retire, retirement, retiring, <a class="zem_slink" href="http://en.wikipedia.org/wiki/401%28k%29" rel="wikipedia" target="_blank" title="401(k)">401(k) plan</a>, money, investment, investing </span><span class="greySplitter" style="border: 0px; color: #c4c4c4; font-family: Helvetica, Arial; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 2px; vertical-align: baseline;">/</span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 0.8em;"> </span><span class="creditImg" style="border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-style: inherit; font-weight: 700; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">ISTOCKPHOTO</span><br />
<a href="http://www.cbsnews.com/">CBS News</a>: <br />
<span class="byText" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">By </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><br />
<div class="pagiAuthor" style="background-color: white; border: 0px; color: #202022; display: inline; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">
RAY MARTIN <span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px; vertical-align: baseline;">/</span> </div>
<span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="source" style="background-color: white; border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">MONEYWATCH<span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px 0px 8px; vertical-align: baseline;">/</span> </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">September 20, 2013, 7:00 AM</span><br />
<span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><br /></span>
<br />
<div class="storyText" style="background-color: white; background-image: url(http://asset3.cbsistatic.com/cnwk.1d/i/tron/overlays/bkg-highlight-620.png) !important; background-position: 50% 0%; background-repeat: no-repeat no-repeat !important; border-top-color: rgb(232, 232, 232); border-top-style: solid; border-width: 1px 0px 0px; font-family: Helvetica, Arial, sans-serif; margin: 0px; outline: 0px; padding: 20px 0px 0px; vertical-align: baseline;">
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
(MoneyWatch) Workers in 401(k) plans are required to make important decisions that can have a significant impact on their ultimate retirement savings. Folks relying on their 401(k) as their primary retirement nest egg need to make the right decisions on when to enroll in the plan, how much to contribute, how to invest contributions and how to manage the account.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<ul class="arrows gray" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; list-style: none; margin: 0px 0px 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -15px -911px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;"><a href="http://www.cbsnews.com/8301-505143_162-57535386/401-k-contribution-limit-to-rise-in-2013/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">401(k) contribution limits higher in 2013</a></li>
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -15px -911px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;"><a href="http://www.cbsnews.com/8301-505146_162-57592878/protect-your-401-k-from-rising-rates/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">Protect your 401(k) from rising interest rates</a></li>
<li style="background-image: url(http://asset2.cbsistatic.com/cnwk.1d/i/cbs/generic/genericSprite.png); background-position: -15px -911px; background-repeat: no-repeat no-repeat; border: 0px; font-family: Georgia, 'Times New Roman'; font-size: 1.1em; font-style: inherit; margin: 0px; outline: 0px; padding: 0px 0px 0px 40px; text-align: left; vertical-align: baseline;"><a href="http://www.cbsnews.com/8301-505146_162-57601465/should-i-or-shouldnt-i-a-roth-401-k-conversion/" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">Should you convert your 401(k) to a Roth?</a></li>
</ul>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Most people have the best of intentions when they contribute to their 401(k), but merely being a good saver isn't enough. Here are some of the common mistakes savers should avoid in order to keep their savings growing in their employer's plan.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">1) Not enrolling at the earliest opportunity</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
The problem is that a lot of workers don't take the steps to sign up and join their employer's 401(k) plan at the earliest opportunity. ... The problem is they've lost out on matching contributions (assuming their employer matches) and on the tax-deferred gains on funds they could have saved and invested. Changing jobs five to seven times over a working career (which is typical) only compounds this mistake.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">2) Not increasing contributions</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
According to industry data, the average contribution percentage for workers saving in a 401(k) is around 6 percent. Most studies that take a measure of what folks need to save over their working lifetimes indicate that workers without a pension will need to save and invest 10 percent or more every year into a 401(k) type retirement plan. These assets combined with Social Security income should be sufficient for retirement. If you enrolled into your 401(k) with a six percent contribution percentage, increase this to at least 10 percent as soon as possible and work towards increasing it from there over time.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">3) Not making catch-up contributions</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-size: 17px; font-style: inherit;">... </span><span style="font-size: 1.1em; font-style: inherit;">In 2013 workers can contribute up to $17,500 annually into their employer sponsored 401(k) type retirement plans. But if you're over 50 at any time in 2013 (even if you turn 50 on December 31st 2013), you can contribute an additional $5,500 (which remains unchanged from 2012 limits) for a total contribution of $23,000.</span></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">4) Taking a 401(k) loan</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Most retirement plan experts agree you should never take money from your 401(k) plan because you are taking money away from what you will need for a financially secure retirement. The biggest risk of borrowing from your 401(k) is that most plan rules require repayment within 30 to 90 days of leaving your employer. That's a disaster for someone who suddenly loses their job. If you don't have the money to pay off the loan it will be included in income as a taxable distribution. If you are under the age of 59 1/2 you'll owe a 10% penalty tax on top of applicable federal and state income taxes. If you don't have the money to pay the tax, the IRS can collect what you owe by deducting it from your remaining balance, virtually wiping out your retirement savings in the plan. Whether or not it's a good idea to take a withdrawal from your 401(k) account ultimately depends on what you are doing with the money, but for the reasons explained here, it's wise to avoid this move, as it can backfire.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">5) Not running your retirement numbers</b></div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
The time to find out you have not saved enough is not after you retire. Now is the time to do some serious number crunching. Calculating how much income your current retirement account and annual savings will generate at retirement is a critical step to ensuring you are on track to achieving your retirement income goals. If your retirement plan offers access to online tools to do this, use them.</div>
</div>
<span class="dateStamp copyRightText" style="background-color: white; border: 0px; float: left; font-family: Georgia, 'Times New Roman'; font-size: 0.85em; font-style: italic; margin: 0px 0px 20px; outline: 0px; padding: 0px; vertical-align: baseline; width: 620px;">© 2013 CBS Interactive Inc.. All Rights Reserved.</span><br />
<div class="shareBar inline-sharebar" style="background-color: white; border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 19px; line-height: 0.8em; margin: 0px; outline: 0px; padding: 0px 0px 30px; vertical-align: baseline; width: 620px;">
<div>
<div class="correspondant" id="correspondant" style="background-image: url(http://asset3.cbsistatic.com/cnwk.1d/i/tron/overlays/bkg-highlight-620.png) !important; background-position: 50% 0%; background-repeat: no-repeat no-repeat !important; border: 0px; color: black; float: left; font-family: Helvetica, Arial, sans-serif; font-size: 15px; line-height: normal; margin: 0px; outline: 0px; padding: 10px 0px 0px; vertical-align: baseline; width: 620px;">
<ul style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; list-style: none; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<li style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; text-align: left; vertical-align: baseline;"><div class="authorText" style="border: 0px; float: left; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 460px;">
<span class="correspondName" style="border: 0px; display: block; font-size: 1.3em; font-style: inherit; font-weight: bold; letter-spacing: -0.06em; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 460px;">Ray Martin</span><span class="correspondLinks" style="border: 0px; color: #202022; font-size: 0.8em; font-style: inherit; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;"></span><br />
<div class="dek withPic" style="border: 0px; color: #666666; font-size: 1em; font-style: inherit; outline: 0px; padding: 3px 0px 0px; vertical-align: baseline;">
<a href="http://www.cbsnews.com/2741-505146_162-1377.html" style="border: 0px; color: #202022; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">View all articles by Ray Martin on CBS MoneyWatch <span class="redDoubleArrows" style="border: 0px; color: #b12124; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">»</span></a><br />
Since 1986, Ray Martin has been a practicing financial counselor, providing valuable and practical financial guidance and advice to individuals. He has appeared regularly as a contributor on the CBS Early Show, CBS NewsPath, as a columnist on CBS Moneywatch, and on NBC-TV's morning newscast TODAY. He has also appeared on the Oprah Winfrey Show and is the author of two books.</div>
</div>
</li>
</ul>
</div>
<div class="nrelateRedesign" id="nrelate_related_placeholder" style="border: 0px; color: black; float: left; font-family: Helvetica, Arial, sans-serif; font-size: 15px; line-height: normal; margin: 20px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: 620px;">
<div class="nrelate nrelate_related nr_clear" id="nrelate_related_0" style="border: 0px; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline;">
</div>
</div>
<div class="postREM" style="border: 0px; color: black; float: left; font-family: Helvetica, Arial, sans-serif; font-size: 15px; line-height: normal; margin: 30px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
</div>
</div>
<div id="inlineSocialBarBottomPlaceholder" style="-webkit-text-stroke-width: 0px; background-color: white; border: 0px; color: black; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; margin: 0px; orphans: auto; outline: 0px; padding: 0px; text-align: left; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; widows: auto; word-spacing: 0px;">
</div>
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://blog.allstate.com/why-saving-for-your-401k-matters/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/131647024_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://blog.allstate.com/why-saving-for-your-401k-matters/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Why Saving for Your 401(k) Matters</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://investorplace.com/2013/09/fidelity-401k/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/205360379_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://investorplace.com/2013/09/fidelity-401k/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Not Happy With Your 401k? Say Something.</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.myallstatefinancial.com/tools-and-resources/things-to-know-retirement.aspx" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_6_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.myallstatefinancial.com/tools-and-resources/things-to-know-retirement.aspx" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">5 Things to Know About Retirement</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://heritageretirementincomeplanners.com/2013/09/21/why-you-shouldnt-contribute-to-your-401k/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/204244742_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://heritageretirementincomeplanners.com/2013/09/21/why-you-shouldnt-contribute-to-your-401k/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Why you shouldn't contribute to your 401(k)</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=a89a122c-5765-4814-974b-926e54c35eda" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-87292781894066898072013-09-26T12:18:00.001-05:002013-09-26T12:23:39.843-05:00IRS Filling The Pipeline With Captive Insurance Cases And Focusing On Dubious Practices<br />
<br />
<br />
<a href="http://www.forbes.com/">Forbes</a>:<br />
<br />
<div class="user" style="border: 0px; color: #666666; font-family: Verdana, Arial, sans-serif; font-size: 12px; line-height: 14px; max-width: 580px; outline: 0px; padding: 0px; vertical-align: baseline;">
<a class="exit_trigger_set" href="http://www.forbes.com/sites/jayadkisson/" style="border: 0px; color: black; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Jay Adkisson</a><span class="desc" style="border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">, Contributor</span></div>
<div class="about" style="border: 0px; color: #666666; font-family: Verdana, Arial, sans-serif; font-size: 10px; line-height: 15px; margin-bottom: 4px; margin-top: 4px; outline: 0px; padding: 0px; vertical-align: baseline;">
I write about <a class="zem_slink" href="http://en.wikipedia.org/wiki/Asset_protection" rel="wikipedia" target="_blank" title="Asset protection">asset protection</a>.</div>
<div class="about" style="border: 0px; color: #666666; font-family: Verdana, Arial, sans-serif; font-size: 10px; line-height: 15px; margin-bottom: 4px; margin-top: 4px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div class="event_tracking_scroll_latch has_been_triggered" data-event="Article,ScrolledToEnd,single" style="-webkit-text-stroke-width: 0px; background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #3c3c3c; font-family: Verdana, Arial, sans-serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 13px; margin: 0px; orphans: auto; outline: 0px; padding: 0px; text-align: left; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; widows: auto; word-spacing: 0px;">
</div>
<div class="flyer_latch" style="-webkit-text-stroke-width: 0px; background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #3c3c3c; font-family: Verdana, Arial, sans-serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 13px; margin: 0px; orphans: auto; outline: 0px; padding: 0px; text-align: left; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; widows: auto; word-spacing: 0px;">
</div>
<br />
<div class="body contains_vestpocket" style="-webkit-text-stroke-width: 0px; background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #3c3c3c; font-family: Verdana, Arial, sans-serif; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 13px; margin: -15px 0px 0px; orphans: auto; outline: 0px; padding: 0px 0px 10px; position: relative; text-align: left; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; widows: auto; word-spacing: 0px;">
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:IRS.svg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Logo of the Internal Revenue Service" border="0" class="zemanta-img-inserted" height="180" src="http://upload.wikimedia.org/wikipedia/commons/thumb/e/e5/IRS.svg/300px-IRS.svg.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Logo of the Internal Revenue Service (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:IRS.svg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<br /></div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
Mr. John Glover of the IRS General Counsel’s office spoke about <a class="zem_slink" href="http://en.wikipedia.org/wiki/Captive_insurance" rel="wikipedia" target="_blank" title="Captive insurance">captive insurance</a> arrangements Friday in San Francisco at a meeting of the American Bar Association’s Tax Section, which was hosted by that Section’s <a href="http://apps.americanbar.org/dch/committee.cfm?com=TX323000" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; font-size: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: underline; vertical-align: baseline;">Insurance Companies Committee</a> and co-sponsored by the <a href="http://apps.americanbar.org/dch/committee.cfm?com=CL127000" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; font-size: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: underline; vertical-align: baseline;">Business Law Section’s Committee on Captive Insurance</a> (of which I am the current Chair).</div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
By agreement, the program was not recorded, Mr. Glover’s remarks were not “on the record”, and what follows comes from my notes and should not be taken as anything like a transcript of his remarks.</div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
Mr. Glover has long been instrumental in IRS rule-making with regard to captive insurance companies, and so many tax practitioners in the field hang on to his every syllable and nuance as if he were the Fed Chairman.</div>
<br />
<aside class="vestpocket" data-position="4" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border-bottom-left-radius: 5px; border-bottom-right-radius: 5px; border-top-color: rgb(239, 239, 239); border-top-left-radius: 0px; border-top-right-radius: 0px; border-top-style: solid; border-top-width: 5px; color: black; display: block; float: left; margin: 8px 30px 1px 0px; overflow: visible; padding-bottom: 20px; position: relative; width: 175px; word-wrap: break-word; z-index: 1;"><div class="box article" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(239, 239, 239); border-bottom-style: solid; border-width: 0px 0px 5px; font-size: 13px; margin: 0px; outline: 0px; padding: 20px 0px; position: relative; vertical-align: baseline; width: 175px;">
<a class="thumb exit_trigger_set" href="http://www.forbes.com/sites/jayadkisson/2013/08/10/ten-good-non-tax-things-about-captive-insurance-companies/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; display: block; font-family: Georgia, 'Times New Roman', serif; font-size: 0px; font-weight: normal; line-height: 0; margin: 0px 0px 5px; max-height: 175px; outline: 0px; overflow: hidden; padding: 0px; position: relative; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"></span></a><a class="vp_text exit_trigger_set" href="http://www.forbes.com/sites/jayadkisson/2013/08/10/ten-good-non-tax-things-about-captive-insurance-companies/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 21px; font-weight: normal; line-height: 24px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Ten Favorite Things About Captive Insurance Companies</a><cite class="box_byline clearfix" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; display: block; font-family: Verdana; font-size: 10px; font-style: normal; font-variant: normal; font-weight: normal; line-height: 14px; margin: 10px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><a class="exit_trigger_set" href="http://www.forbes.com/sites/jayadkisson/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; display: block; font-family: Verdana; font-size: 10px; font-style: normal; font-variant: normal; font-weight: bold; line-height: normal; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="Jay Adkisson" class="avatar" src="http://www.gravatar.com/avatar/7c1b6469e3faa1060ce64bd6d432de12?s=40&r=pg&d=http%3A%2F%2Fb-i.forbesimg.com%2Fassets%2Fimages%2Favatars%2Fgeneric_profile_image_40.jpg" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; display: block; float: left; font-size: 10px; height: 20px; margin: 0px 5px 0px 0px; max-width: 100%; outline: 0px; padding: 0px; position: relative; top: 3px; vertical-align: baseline; width: 20px;" /><strong style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 10px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Jay Adkisson</strong><span class="desc" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; display: block; font-size: 10px; font-weight: normal; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Contributor</span></a></cite></div>
<div class="box article" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(239, 239, 239); border-bottom-style: solid; border-width: 0px 0px 5px; font-size: 13px; margin: 0px; outline: 0px; padding: 20px 0px; position: relative; vertical-align: baseline; width: 175px;">
<a class="thumb exit_trigger_set" href="http://www.forbes.com/sites/jayadkisson/2013/07/28/captive-insurance-companies-10-pet-peeves/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; display: block; font-family: Georgia, 'Times New Roman', serif; font-size: 0px; font-weight: normal; line-height: 0; margin: 0px 0px 5px; max-height: 175px; outline: 0px; overflow: hidden; padding: 0px; position: relative; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"></span></a><a class="vp_text exit_trigger_set" href="http://www.forbes.com/sites/jayadkisson/2013/07/28/captive-insurance-companies-10-pet-peeves/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 21px; font-weight: normal; line-height: 24px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Tax Shelters, Nebraska Hurricanes And Other Captive Insurance Mistakes</a><cite class="box_byline clearfix" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; display: block; font-family: Verdana; font-size: 10px; font-style: normal; font-variant: normal; font-weight: normal; line-height: 14px; margin: 10px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><a class="exit_trigger_set" href="http://www.forbes.com/sites/jayadkisson/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; display: block; font-family: Verdana; font-size: 10px; font-style: normal; font-variant: normal; font-weight: bold; line-height: normal; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="Jay Adkisson" class="avatar" src="http://www.gravatar.com/avatar/7c1b6469e3faa1060ce64bd6d432de12?s=40&r=pg&d=http%3A%2F%2Fb-i.forbesimg.com%2Fassets%2Fimages%2Favatars%2Fgeneric_profile_image_40.jpg" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; display: block; float: left; font-size: 10px; height: 20px; margin: 0px 5px 0px 0px; max-width: 100%; outline: 0px; padding: 0px; position: relative; top: 3px; vertical-align: baseline; width: 20px;" /><strong style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 10px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Jay Adkisson</strong><span class="desc" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; display: block; font-size: 10px; font-weight: normal; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Contributor</span></a></cite></div>
<div class="box article" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(239, 239, 239); border-bottom-style: solid; border-width: 0px 0px 5px; font-size: 13px; margin: 0px; outline: 0px; padding: 20px 0px; position: relative; vertical-align: baseline; width: 175px;">
<a class="thumb exit_trigger_set" href="http://www.forbes.com/sites/janetnovack/2013/06/17/billionaire-seeks-186-million-tax-refund-claims-irs-biased-by-politically-charged-atmosphere/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; display: block; font-family: Georgia, 'Times New Roman', serif; font-size: 0px; font-weight: normal; line-height: 0; margin: 0px 0px 5px; max-height: 175px; outline: 0px; overflow: hidden; padding: 0px; position: relative; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"></span></a><a class="vp_text exit_trigger_set" href="http://www.forbes.com/sites/janetnovack/2013/06/17/billionaire-seeks-186-million-tax-refund-claims-irs-biased-by-politically-charged-atmosphere/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 21px; font-weight: normal; line-height: 24px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">Billionaire Seeks $186 Million Tax Refund, Claims IRS Biased By 'Politically Charged Atmosphere'</a><cite class="box_byline clearfix" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; display: block; font-family: Verdana; font-size: 10px; font-style: normal; font-variant: normal; font-weight: normal; line-height: 14px; margin: 10px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><a class="exit_trigger_set" href="http://www.forbes.com/sites/janetnovack/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; display: block; font-family: Verdana; font-size: 10px; font-style: normal; font-variant: normal; font-weight: bold; line-height: normal; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="Janet Novack" class="avatar" src="http://b-i.forbesimg.com/assets/images/avatars/jnovack_40.jpg" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; display: block; float: left; font-size: 10px; height: 20px; margin: 0px 5px 0px 0px; max-width: 100%; outline: 0px; padding: 0px; position: relative; top: 3px; vertical-align: baseline; width: 20px;" /><strong style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 10px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Janet Novack</strong><span class="desc" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; display: block; font-size: 10px; font-weight: normal; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Forbes Staff</span></a></cite></div>
<div class="box article" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border-bottom-color: rgb(239, 239, 239); border-bottom-style: solid; border-width: 0px 0px 5px; font-size: 13px; margin: 0px; outline: 0px; padding: 20px 0px; position: relative; vertical-align: baseline; width: 175px;">
<a class="thumb exit_trigger_set" href="http://www.forbes.com/sites/bmoharrisbank/2013/01/28/why-companies-are-opting-for-captive-insurance-arrangements/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; display: block; font-family: Georgia, 'Times New Roman', serif; font-size: 0px; font-weight: normal; line-height: 0; margin: 0px 0px 5px; max-height: 175px; outline: 0px; overflow: hidden; padding: 0px; position: relative; text-decoration: none; vertical-align: baseline;"><span class="icon" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"></span><img alt="" src="http://blogs-images.forbes.com/thumbnails/blog_2460/pt_2460_242_o.jpg?t=1359386946" style="-webkit-box-shadow: rgb(184, 184, 184) 1px 1px 6px; background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; box-shadow: rgb(184, 184, 184) 1px 1px 6px; font-size: 0px; margin: 0px; max-width: 175px; outline: 0px; padding: 0px; vertical-align: baseline;" /></a><a class="vp_text exit_trigger_set" href="http://www.forbes.com/sites/bmoharrisbank/2013/01/28/why-companies-are-opting-for-captive-insurance-arrangements/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 21px; font-weight: normal; line-height: 24px; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><span class="advoice" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #920a12; font-size: 21px; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span class="brandvoice" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-size: 21px; font-style: normal; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">BMOHarrisBank</span>Voice: </span>Why Companies Are Opting For Captive Insurance Arrangements</a><cite class="box_byline clearfix" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; display: block; font-family: Verdana; font-size: 10px; font-style: normal; font-variant: normal; font-weight: normal; line-height: 14px; margin: 10px 0px 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><a class="exit_trigger_set" href="http://www.forbes.com/sites/bmoharrisbank/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; display: block; font-family: Verdana; font-size: 10px; font-style: normal; font-variant: normal; font-weight: bold; line-height: normal; margin: 0px; outline: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;"><img alt="BMO Harris Contributor" class="avatar" src="http://b-i.forbesimg.com/assets/images/avatars/blog-2460_40.jpg" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; display: block; float: left; font-size: 10px; height: 20px; margin: 0px 5px 0px 0px; max-width: 100%; outline: 0px; padding: 0px; position: relative; top: 3px; vertical-align: baseline; width: 20px;" /><strong style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 10px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">BMO Harris Contributor</strong><span class="desc" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; display: block; font-size: 10px; font-weight: normal; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">@BMO Harris Bank</span></a></cite></div>
</aside><br />
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
The IRS has concerns about risk pooling arrangements and is beginning to focus on such arrangements, stated Mr. Glover, especially in cases where there is nominal laying and assuming of risks, but in the end reconciliation there really isn’t any risk-shift because the captive or business owner will reimburse the pool for significant losses. But there is also concern where the risk pool is simply an account where money comes in, and money goes out, and it is called “insurance” when it is really anything but.</div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
Another concern that the IRS is starting to focus on, stated Mr. Glover, are dubious risks. The example he gave was of a widget shop in Nebraska that purchases tsunami insurance. The IRS has an increased interest in the pricing of captive insurance policies for such things as terrorism, cyber-liability, etc., which may be the subject of abuse.</div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
Notably, Mr. Glover addressed the lack of IRS enforcement in the area of captives, noting that it has taken some time to get cases into the pipeline, but making a special point that the IRS now has more cases pending in tax court against captives than ever before — and the growth of the sector means that the IRS will be tasking more resources towards abusive practices. (This is not to be read that the IRS is challenging captives generally; to the contrary, the IRS now recognizes the legitimacy of proper captive insurance arrangements, and Mr. Glover has himself drafted much of the guidance for that purpose).</div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
Captive insurance cases currently pending before the U.S. Tax Court include:</div>
<ul style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 13px; list-style: disc inside; margin: 15px 0px; outline: 0px; padding: 0px 0px 0px 30px; vertical-align: baseline;">
<li style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 16px; line-height: 20px; margin: 10px 5px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Rent-A-Center, Inc. & Affiliated Subs. (Dkt. Nos. 8320-09, 6909-10 & 21627-10)</li>
<li style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 16px; line-height: 20px; margin: 10px 5px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">YRC Worldwide & Subs. (Dkt No. 6714-10)</li>
<li style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 16px; line-height: 20px; margin: 10px 5px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Securitas Holdings, Inc. & Subs. (Dkt. No. 21206-10)</li>
<li style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 16px; line-height: 20px; margin: 10px 5px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Dielco Crane Service (Dkt. No. 21726-10)</li>
<li style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 16px; line-height: 20px; margin: 10px 5px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Pilgrim’s Pride (Dkt. No. 16972-10)</li>
<li style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 16px; line-height: 20px; margin: 10px 5px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Vincent Enterprises, Inc. & Subs. (Dkt. No. 2759-10</li>
</ul>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
Other cases in other courts include:</div>
<ul style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 13px; list-style: disc inside; margin: 15px 0px; outline: 0px; padding: 0px 0px 0px 30px; vertical-align: baseline;">
<li style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 16px; line-height: 20px; margin: 10px 5px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Proliance Surgeons (Dkt. No. 1:09-cv680) (Court of Federal Claims)</li>
<li style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 16px; line-height: 20px; margin: 10px 5px 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Salty Brine (Dkt. No. 5:10-CV-00108-C); K&T Farm Ltd. (Dkt. No. 5:10-CV-00109-C); Wasson Solid Waste Disposal System (Dkt. No. 5:10-CV-00110-C); Five Star Consolidated Companies (Dkt. No. 5:10-CV-00111-C); Thomas & Kidd Oil Production (Dkt. No. 5:10-CV-00141-C) (U.S. District Court for the Northern District of Texas) (consolidated cases).</li>
</ul>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
Mr. Glover also stated that IRS agent Steve Henson is maintaining a resource well that is available to answer questions for field agents and assist them with particular issues as they increasingly run across captive insurance arrangements.</div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
But Mr. Glover also noted that in attempting to provide guidance for captive insurance practitioners, the IRS is hamstrung by the lack of case law as to many issues, and at this point can only set out various buoys (his term) to help practitioners stay in the safe waters and away from the shoals.</div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
Aside from Mr. Glover’s remarks, other discussion focused on the importance of following NAIC reserving standards, which the tax court has found to be among the most persuasive evidence in whether the reserves were fair and reasonable. It is also very important for the Board of Directors of a captive to carefully review and approve an actuary’s recommendations.</div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
There was a good deal of discussion at the meeting about so-called “Micro Captive” qualifying for special treatment under Tax Code section 831(b) and about the proliferation of promoters who sell captives as essentially a tax shelter with little or no consideration of the true insurance function of such companies.</div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
Finally, there was a discussion of state taxes as they related to captives after the passage of Dodd-Frank, with some practitioners, notably captive tax attorney <a href="http://m.sutherland.com/People/P-Bruce-Wright" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; font-size: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: underline; vertical-align: baseline;">Bruce Wright</a>, observing that there has been an significant uptick in the actions by various states to collect these taxes, particularly for businesses in California, New York and Texas. Captive tax attorney <a href="http://www.bgdlegal.com/professionals/792/charles-j.-lavelle/" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; font-size: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: underline; vertical-align: baseline;">Chaz Lavelle</a> pointed out that with rare exceptions the states often win these challenges in the state courts, and, despite there sometimes being good arguments why the taxes should not apply under the <a href="http://captiveforum.com/viewtopic.php?f=5&t=82" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; font-size: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: underline; vertical-align: baseline;">Todd Shipyards</a> and <a href="http://captiveforum.com/viewtopic.php?f=5&t=81" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; font-size: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: underline; vertical-align: baseline;">Dow Chemical</a> opinions, they are often more costly for captive insurance companies to fight than to just pay the taxes to begin with.</div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
The bottom line is that the captive insurance tax world continues to evolve, and that certain dubious practices that did not merit much attention in the past are now almost certain to receive much stricter attention in the future. That somebody has gotten away with these practices in years before is essentially meaningless, or as the SEC requires in prospectuses:</div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
<em style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; font-size: 18px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">“Past performance is no guarantee of future returns.”</em></div>
<div style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: black; font-family: Georgia, 'Times New Roman', serif; font-size: 18px; line-height: 24px; margin: 15px 0px; outline: 0px; padding: 0px; vertical-align: baseline; word-wrap: break-word;">
This article at <a href="http://onforb.es/1byPmYO" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; font-size: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: underline; vertical-align: baseline;">http://onforb.es/1byPmYO</a> and <a href="http://goo.gl/byuZLR" style="background-color: transparent; background-position: initial initial; background-repeat: initial initial; border: 0px; color: #666666; font-size: 18px; margin: 0px; outline: 0px; padding: 0px; text-decoration: underline; vertical-align: baseline;">http://goo.gl/byuZLR</a></div>
</div>
<div class="separator" style="clear: both; text-align: center;">
<a class="avatar exit_trigger_set" href="http://www.forbes.com/sites/jayadkisson/" style="border: 0px; clear: left; color: black; display: block; float: left; font-family: Verdana, Arial, sans-serif; font-size: 12px; font-weight: bold; height: 68px; left: 0px; line-height: 14px; margin-bottom: 1em; margin-right: 1em; margin-top: 0px; outline: 0px; padding: 0px; position: absolute; text-decoration: none; top: 0px; vertical-align: baseline; width: 68px;"><img alt="Jay Adkisson" height="200" src="http://www.gravatar.com/avatar/7c1b6469e3faa1060ce64bd6d432de12?s=136&r=pg&d=http%3A%2F%2Fb-i.forbesimg.com%2Fassets%2Fimages%2Favatars%2Fgeneric_profile_image_136.jpg" style="border: 0px; color: #666666; font-size: 10px; font-weight: normal; height: 68px; margin: 0px; outline: 0px; padding: 0px; position: relative; vertical-align: baseline; width: 68px; z-index: 1;" width="200" /></a></div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.forbes.com/sites/jayadkisson/2013/08/10/ten-good-non-tax-things-about-captive-insurance-companies/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/192613264_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.forbes.com/sites/jayadkisson/2013/08/10/ten-good-non-tax-things-about-captive-insurance-companies/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Ten Favorite Things About Captive Insurance Companies</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://taxprof.typepad.com/taxprof_blog/2012/12/cantley-.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/131885491_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://taxprof.typepad.com/taxprof_blog/2012/12/cantley-.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Cantley: The Accumulated Earnings Tax and § 831(B) Captive Insurance Companies</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://ebdelawarecaptiv.wordpress.com/2013/04/17/delaware-captive-can-absolutely-assist-your-company-2/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_59_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://ebdelawarecaptiv.wordpress.com/2013/04/17/delaware-captive-can-absolutely-assist-your-company-2/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Delaware Captive Can Absolutely Assist Your Company</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.huffingtonpost.com/robert-pagliarini/6-tips-to-cut-your-income_b_3869380.html?ir=Business" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/199591314_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.huffingtonpost.com/robert-pagliarini/6-tips-to-cut-your-income_b_3869380.html?ir=Business" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">6 Tips to Cut Your Income Taxes After a Windfall</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=1d5ae98d-a213-45e2-b57c-edf3a6db3270" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-77148710056034949922013-09-24T10:51:00.001-05:002013-09-24T10:56:20.038-05:00Seven Ways to Make Your Strategic Planning Relevant<a href="http://www.strategy-business.com/">strategy+business magazi</a>ne<br />
<a class="zem_slink" href="http://www.siliconbowery.com/" rel="blog" target="_blank" title="Matthew Siegel">Matthew Siegel</a><br />
<br />
<div class="normal" id="content" style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px !important; line-height: 20px !important;">
<div style="margin-bottom: 12px;">
One of the most important shifts in many companies today is the move toward a capabilities-driven strategy. Companies that define a “way to play,” lined up with a handful of key differentiating capabilities that deliver on that value proposition, have a definite <a href="http://www.booz.com/media/file/HBR_Coherence_Premium.pdf" style="color: #3366cc;" target="_blank">competitive advantage</a>. Your own company may have redesigned your strategy accordingly. Now it’s time to execute.</div>
<div style="margin-bottom: 12px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Capability_Value_Contribution.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Capabilities value contribution to st..." border="0" class="zemanta-img-inserted" height="186" src="http://upload.wikimedia.org/wikipedia/commons/thumb/8/8e/Capability_Value_Contribution.jpg/300px-Capability_Value_Contribution.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Capabilities value contribution to strategy (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Capability_Value_Contribution.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
Undoubtedly, you already have a planning and <a class="zem_slink" href="http://en.wikipedia.org/wiki/Performance_management" rel="wikipedia" target="_blank" title="Performance management">performance management</a> system—otherwise known as a <a class="zem_slink" href="http://en.wikipedia.org/wiki/Strategic_planning" rel="wikipedia" target="_blank" title="Strategic planning">strategic plan</a> and corporate budget. This is a group of deeply ingrained methods for allocating costs and tracking. ... They tend to foster silo-based thinking and to spread investments across all activities. That makes them irrelevant to your strategy—at best. At worst, they will undermine the development of key capabilities. ...</div>
<div style="margin-bottom: 12px;">
A truly relevant planning and performance management system will help you instill the discipline and accountability to make hard choices. It will make it easier, not harder, to assign the lion’s share of investment to your differentiating capabilities. And it will keep things on track with clearly articulated objectives and performance metrics. Here are seven guiding principles that will help you put such a system into place:</div>
<div style="margin-bottom: 12px;">
1. <em>Emphasize key capabilities in your strategic plan</em>. Look beyond short-term marketplace opportunities and challenges. Articulate what you need to do, different from what any other company can do, to deliver on the company’s unique value proposition. Tie strategic objectives to those capabilities. ...</div>
<div style="margin-bottom: 12px;">
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Strategic-Planning-Cycle.png" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: A diagram of the (strategic) planning..." border="0" class="zemanta-img-inserted" height="121" src="http://upload.wikimedia.org/wikipedia/commons/thumb/2/2f/Strategic-Planning-Cycle.png/300px-Strategic-Planning-Cycle.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: A diagram of the (strategic) planning cycle showing the key stages in the loop (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Strategic-Planning-Cycle.png" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
2. <em>Spell out capability-building initiatives in the plan</em>. Design roadmaps for developing and steadily upgrading specific capabilities over time. Then, in each annual plan thereafter, spell out how you can further advance these capability-building initiatives. ...</div>
<div style="margin-bottom: 12px;">
3. <em>Manage discretionary and non-discretionary spending separately</em>. A successful strategy concentrates investment dollars where they are needed most: the company’s distinctive capabilities. Traditional budgeting can undermine this goal by allowing individual units to spend discretionary dollars as they see fit—often favoring pet projects, even if they have no strategic relevance. To prevent this, use <a class="zem_slink" href="http://en.wikipedia.org/wiki/Zero-based_budgeting" rel="wikipedia" target="_blank" title="Zero-based budgeting">zero-based budgeting</a> to determine the amount of non-discretionary expenditures needed to “keep the lights on” throughout the company. The rest of your spending should go through a management process, connected directly to the strategic plan.</div>
<div style="margin-bottom: 12px;">
4. <em>Use cross-functional governance to balance company priorities against the priorities of individual business areas</em>. Governance forums should use a set of clearly defined decision rights on a regular basis to steer the business. ...</div>
<div style="margin-bottom: 12px;">
5. <em>Create guidelines for evaluating investment demands</em>. Your company is subject to a range of investment demands with varying degrees of relevance to strategic priorities. Detailed investment guidelines will help assess these requests, especially when you’re balancing “apples and oranges” demands (such as regulatory compliance expenditures versus capital spending proposals). ...</div>
<div style="margin-bottom: 12px;">
6. <em>Give leaders cross-functional authority to build capabilities and hold them accountable</em>. Capability-building efforts fail when nobody has the authority to carry them out. Help individual leaders build capability systems across functional lines by making sure others can see that they have the requisite decision rights and position. ...</div>
<div style="margin-bottom: 12px;">
7. <em>Measure and reward progress</em>. Building a strategic capability can often take months or years. Explain clearly how each initiative bolsters a critical capability. Establish objectives and milestones for each initiative. Use these benchmarks to measure and reward progress toward the ultimate goal: a market-leading capability.</div>
<div style="margin-bottom: 12px;">
A more relevant planning and performance management system yields significant long-term benefits, because it continuously evaluates your company’s performance against strategic goals. The performance benchmarks tell you where and how external changes are affecting your progress. This provides a real-time snapshot of your capabilities at work in the marketplace. Strengths and weaknesses become clear, informing your investment decisions for the next strategic planning cycle. After a few years, this virtuous feedback loop can become second nature, paving the way for real collective mastery of the capabilities that distinguish your company.</div>
<div>
<div style="font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; line-height: normal; margin-bottom: 12px;">
Matthew Siegel is a principal with the organizational change and leadership practice at Booz & Company in New York. </div>
</div>
<div>
<br /></div>
</div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://blog.thealternativeboard.com/2013/09/16/what-is-a-strategic-plan-and-why-does-your-business-need-one/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/202463826_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://blog.thealternativeboard.com/2013/09/16/what-is-a-strategic-plan-and-why-does-your-business-need-one/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">What Is a Strategic Plan and Why Does Your Business Need One?</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://beamemphis.blogspot.com/2013/08/new-strategies-around-strategy.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/198239505_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://beamemphis.blogspot.com/2013/08/new-strategies-around-strategy.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">New Strategies Around Strategy</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://blog.thealternativeboard.com/2013/09/18/most-businesses-could-raise-revenue-using-strategic-planning/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/203107127_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://blog.thealternativeboard.com/2013/09/18/most-businesses-could-raise-revenue-using-strategic-planning/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">91% of Business Owners Could See Higher Revenue Using a Strategic Plan</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://adithyaentertainment.wordpress.com/2013/09/23/how-to-achieve-your-strategic-plan-part-1-of-2/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/204539964_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://adithyaentertainment.wordpress.com/2013/09/23/how-to-achieve-your-strategic-plan-part-1-of-2/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">How to Achieve your Strategic Plan: Part 1 of 2</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=4e919257-3219-4640-8199-a46e2b72fa84" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-76195716680548197842013-09-20T10:53:00.001-05:002013-09-20T11:01:04.815-05:00A Rich Retirement: How to get the biggest Social Security check<a href="http://www.cbsnews.com/">CBS News</a>: <br />
<span class="byText" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">By </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><br />
<div class="pagiAuthor" style="background-color: white; border: 0px; color: #202022; display: inline; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">
MELLODY HOBSON <span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px; vertical-align: baseline;">/</span> </div>
<span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="source" style="background-color: white; border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 12px; font-weight: bold; margin: 0px; outline: 0px; padding: 0px; text-transform: uppercase; vertical-align: baseline;">MONEYWATCH<span style="border: 0px; color: #c4c4c4; font-family: inherit; font-size: inherit; font-style: inherit; font-weight: inherit; margin: 0px; outline: 0px; padding: 0px 6px 0px 8px; vertical-align: baseline;">/</span> </span><span style="background-color: white; color: #666666; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-weight: bold;"></span><span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">September 18, 2013, 5:27 AM</span><br />
<span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><br /></span>
<br />
<div id="flashvideocontent" style="background-color: white; border: 0px; font-family: Helvetica, Arial, sans-serif; font-size: 15px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div id="inlineSocialBarTopPlaceholder" style="background-color: white; border: 0px; font-family: Helvetica, Arial, sans-serif; font-size: 15px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div class="shareBar inline-sharebar" style="background-color: white; border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 19px; line-height: 0.8em; margin: 0px; outline: 0px; padding: 0px 0px 30px; vertical-align: baseline; width: 620px;">
<span style="font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px;">(MoneyWatch) According to the <a class="zem_slink" href="http://ebri.org/" rel="homepage" target="_blank" title="Employee Benefit Research Institute">Employee Benefit Research Institute</a>, only two-thirds of Americans have saved for retirement and most have saved less than $25,000. The average retiree depends on <a class="zem_slink" href="http://en.wikipedia.org/wiki/Social_Security_%28United_States%29" rel="wikipedia" target="_blank" title="Social Security (United States)">Social Security</a> for 70 percent of his or her income....</span></div>
<div class="storyText" style="background-color: white; background-image: url(http://asset3.cbsistatic.com/cnwk.1d/i/tron/overlays/bkg-highlight-620.png) !important; background-position: 50% 0%; background-repeat: no-repeat no-repeat !important; border-top-color: rgb(232, 232, 232); border-top-style: solid; border-width: 1px 0px 0px; font-family: Helvetica, Arial, sans-serif; font-size: 15px; margin: 0px; outline: 0px; padding: 20px 0px 0px; vertical-align: baseline;">
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://en.wikipedia.org/wiki/File:IdaMayFuller.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Ida May Fuller, the first recipient" border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/en/d/d9/IdaMayFuller.jpg" style="border: none; font-size: 0.8em;" width="191" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 276px;">Ida May Fuller, the first recipient (Photo credit: <a href="http://en.wikipedia.org/wiki/File:IdaMayFuller.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
You can start collecting Social Security anytime from age 62 to 70, but the later you start, the bigger your benefit. Just how much bigger depends on when you were born. People born from 1943 to 1954 have a "normal" or "full" retirement age of 66. They get 25 percent less than their normal benefit if they cash in at 62 and 32 percent more than their normal benefit if they wait until 70. (People born later have a slightly higher "normal" retirement age and take a somewhat bigger hit for claiming their benefits early and a somewhat smaller bonus for waiting until 70.)</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Signing_Of_The_Social_Security_Act.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Roosevelt Signs The : President Roosevelt sign..." border="0" class="zemanta-img-inserted" height="160" src="http://upload.wikimedia.org/wikipedia/commons/thumb/2/28/Signing_Of_The_Social_Security_Act.jpg/300px-Signing_Of_The_Social_Security_Act.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Roosevelt Signs The : President Roosevelt signs Social Security Act, at approximately 3:30 pm EST on 14 August 1935. Standing with Roosevelt are Rep. (D-NC); unknown person in shadow; Sen. Robert Wagner (D-NY); Rep. John Dingell (D-MI); unknown man in bowtie; the Secretary of Labor, ; Sen. (D-MS); and Rep. David Lewis (D-MD). (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Signing_Of_The_Social_Security_Act.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
Say you turned 62 in June 2013 and earned $50,000 a year. You could collect about $1,011 a month as a single if you retire at 62, or $1,420 a month (in today's dollars) at your full retirement age of 66 in 2015, or $1,972 a month (again in today dollars) starting in 70 in 2019. If you're earning $150,000, the comparable monthly amounts would be $1,840 at 62, $2,501 at 66, and $3,370 at 70.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
While those benefit amounts sound dramatically different, in theory the system is neutral -- meaning if you live to an average age, you'll end up with roughly the same total benefit no matter when you claim. ...</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
There is no pat answer to decide when to start collecting Social Security benefits, but there are a few guiding rules. First, if you're still working, don't claim benefits before your full retirement age. This is the rule thumb that nearly every expert can agree on. You shouldn't claim early while you're still employed unless you truly need the money to survive, because it comes with hefty penalties. Until you reach the full retirement age, for each $2 you earn in 2013 above $15,120, you lose $1 of your annual Social Security benefits. By contrast, after 66, benefits don't get cut no matter how much you earn. If you're working, try to wait. Also, don't take the money early thinking you'll make more by investing it: If you invested the money, you would need to earn more than 7 percent annually to equal what you'd make by delaying benefits until full retirement age.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-right: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://en.wikipedia.org/wiki/File:Medicare_%26_Social_Security_Deficits_Chart.png" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Medicare & Social Security Deficits Chart" border="0" class="zemanta-img-inserted" height="150" src="http://upload.wikimedia.org/wikipedia/en/thumb/0/0b/Medicare_%26_Social_Security_Deficits_Chart.png/300px-Medicare_%26_Social_Security_Deficits_Chart.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Medicare & Social Security Deficits Chart (Photo credit: <a href="http://en.wikipedia.org/wiki/File:Medicare_%26_Social_Security_Deficits_Chart.png" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
A common concern is whether Social Security will even exist by the time someone is eligible to receive it, and it's a valid one: The trustees who oversee Social Security say the program's trust funds will run dry in 2033, leaving the program with only enough revenue to pay about 75 percent of benefits. Already, the program is paying out more in benefits than it collects in payroll taxes.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
And people frequently aren't confident that they've saved enough on their own to retire comfortably. It's no wonder that a recent survey of Baby Boomers found that 61 percent of respondents fear outliving their retirement more than death. Think about that for just a second. People would sooner die than outlive their retirement. This uncertainty is coloring a lot of people's decision to cash in on Social Security while they know they still can. A recent survey by BMO Retirement Institute found 83 percent of retirees were influenced to start their benefits because they were concerned about the viability of the program.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
My next guiding rule: Don't take Social Security until you're sure you want it. Up until December 2011, the Social Security Administration had a "do-over" strategy that had allowed seniors to file for benefits and then later repay them, without interest, to get a bigger check. ... But since December 2011, you have only 12 months to change your mind after initially filing for benefits.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Finally, part of being a smart financial planner is answering tough questions like "How<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Social_Security_Benefits_-_2009-2083.png" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: This is a chart illustrating the futu..." border="0" class="zemanta-img-inserted" height="130" src="http://upload.wikimedia.org/wikipedia/commons/thumb/d/df/Social_Security_Benefits_-_2009-2083.png/300px-Social_Security_Benefits_-_2009-2083.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: This is a chart illustrating the future payouts of Social Security Benefits in the US from 2009-2083. The source of the information is the Social Security Administration's website. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Social_Security_Benefits_-_2009-2083.png" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
long do you expect to live?" A <a href="http://www.socialsecurity.gov/planners/lifeexpectancy.htm" style="border: 0px; color: #b12124; cursor: pointer; font-family: inherit; font-size: inherit; font-style: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;">calculator on the Social Security website will give you your average life expectancy</a>. It predicts a woman turning 62 this coming year will live to an average of 85.5 and a man of the same age to 83.4. But what about your health and your genes? There are a bunch of websites that calculate your life expectancy while taking into account your health, family history, exercise, eating, drinking and driving habits and even social relationships. If you're not in great health and you want to get some of your tax dollars back, it can make sense to start claiming Social Security as early as possible.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
Deciding when to collect get a little more complicated if you're married. When a married person claims benefits, they're eligible for what they've earned or up to half of their living spouse's full retirement benefit, whichever is higher. A low earning spouse who is relying on spousal benefits takes an even bigger early claiming hit than a primary wage earner -- if he or she claims benefits at 62, they get just 35 percent of the primary earner's full retirement age check, instead of 50 percent. On the other hand, there are no extra benefits for waiting past full retirement age to claim that spousal check. That means this is the one case where no matter how you slice it, waiting past the "full retirement age" of 66 doesn't net you an extra dime.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-right: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://en.wikipedia.org/wiki/File:Social_Security_Worker_to_Beneficiary_Ratio.png" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Social Security - Ratio of workers to benefici..." border="0" class="zemanta-img-inserted" height="150" src="http://upload.wikimedia.org/wikipedia/en/thumb/e/e1/Social_Security_Worker_to_Beneficiary_Ratio.png/300px-Social_Security_Worker_to_Beneficiary_Ratio.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Social Security - Ratio of workers to beneficiaries (Photo credit: <a href="http://en.wikipedia.org/wiki/File:Social_Security_Worker_to_Beneficiary_Ratio.png" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
The catch is that a spouse can't claim benefits until the earner makes a claim. So let's say a high-earning husband and non-working wife both turn 66 this year. The best financial plan is for the husband to begin claiming his benefits so his wife can collect. But not so fast! We already covered that he'll receive a bigger benefit if he waits until he's 70. He can still wait and cash in on that delayed payday by requesting that his claim and his benefits be immediately suspended. That way, he then can continue to wait for a bigger benefit, while his wife is now eligible to claim her spousal benefits.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
It's tricky, but if you familiarize yourself with the basic rules, you'll be okay. Another thing to remember for married people: If one partner dies, the survivor can claim the deceased spouse's check instead of his or her own, assuming the deceased spouse's check is bigger. The general rule of thumb for married couples is that at least one partner (usually the higher earning one) should delay benefits well past 66. This is "longevity insurance" for you both.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
One final thing to remember: Regardless of when you take Social Security and when you stop working, you need to enroll in Medicare when you first become eligible at 65, or you could face financial penalties in the form of higher premiums.</div>
<div style="border: 0px; color: #202022; font-family: Georgia, 'Time New Roman', serif; font-size: 1.1em; font-style: inherit; line-height: 22px; margin-bottom: 15px; outline: 0px; padding: 0px; vertical-align: baseline;">
</div>
</div>
<span class="time" style="background-color: white; border: 0px; color: #666666; font-family: Georgia, 'Time New Roman', serif; font-size: 0.85em; font-style: italic; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span class="dateStamp copyRightText" style="border: 0px; color: black; float: left; font-family: Georgia, 'Times New Roman'; font-size: 0.85em; margin: 0px 0px 20px; outline: 0px; padding: 0px; vertical-align: baseline; width: 620px;">© 2013 CBS Interactive Inc.. All Rights Reserved.</span></span><br />
<div class="shareBar inline-sharebar" style="background-color: white; border: 0px; color: #202022; font-family: nimbus-sans, Helvetica, Arial, sans-serif; font-size: 19px; line-height: 0.8em; margin: 0px; outline: 0px; padding: 0px 0px 30px; vertical-align: baseline; width: 620px;">
<ul style="border-bottom-color: rgb(221, 221, 221); border-bottom-style: solid; border-top-color: rgb(221, 221, 221); border-top-style: solid; border-width: 1px 0px; float: left; font-family: inherit; font-size: inherit; font-style: inherit; list-style: none; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline; width: inherit;">
<li class="commentTeaser" style="border: 0px; float: left; font-family: inherit; font-size: inherit; font-style: inherit; height: 29px; margin: 0px; outline: 0px; padding: 0px; position: relative; text-align: left; vertical-align: baseline;"><a class="noluke" href="http://www.cbsnews.com/8301-35213_162-57603246/a-rich-retirement-how-to-get-the-biggest-social-security-check/?tag=nl.e713&s_cid=e713&ttag=e713&ftag=TRE4cf7aca#postComments" style="border: 0px; color: #202022; cursor: pointer; float: left; font-family: inherit; font-size: inherit; font-style: inherit; letter-spacing: -0.07em; margin: 0px; outline: none; padding: 6px 0px 7px; text-decoration: none; vertical-align: baseline;"></a></li>
</ul>
</div>
<div id="inlineSocialBarBottomPlaceholder" style="-webkit-text-stroke-width: 0px; background-color: white; border: 0px; color: black; font-family: Helvetica, Arial, sans-serif; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; margin: 0px; orphans: auto; outline: 0px; padding: 0px; text-align: left; text-indent: 0px; text-transform: none; vertical-align: baseline; white-space: normal; widows: auto; word-spacing: 0px;">
</div>
<br />
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.mysanantonio.com/business/business_columnists/social_security_and_you/article/Navigating-divorce-and-Social-Security-payments-4757202.php" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/196525369_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.mysanantonio.com/business/business_columnists/social_security_and_you/article/Navigating-divorce-and-Social-Security-payments-4757202.php" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Navigating divorce and Social Security payments</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.dailyfinance.com/2013/09/10/reasons-70-new-62-retirement-social-security-debt/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/200790179_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.dailyfinance.com/2013/09/10/reasons-70-new-62-retirement-social-security-debt/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">3 Reasons 70 is the New 62</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.dailyfinance.com/2013/09/19/retirement-disasters-underfunded-pensions-social-security-trust-fund/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/203644542_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.dailyfinance.com/2013/09/19/retirement-disasters-underfunded-pensions-social-security-trust-fund/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">How to Save Yourself From 3 Looming Retirement 'Train Wrecks'</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.pbs.org/newshour/businessdesk/2013/09/when-to-take-social-security-when-you-expect-your-spouse-to-outlive-you.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/202541588_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.pbs.org/newshour/businessdesk/2013/09/when-to-take-social-security-when-you-expect-your-spouse-to-outlive-you.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">When to Take Social Security When You Expect Your Spouse to Outlive You</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=af89870e-8461-44bd-8c27-38c4c96f8002" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-25125194993362062152013-09-12T13:15:00.001-05:002013-09-12T13:25:27.001-05:00Is College Worth It?<div class="image" style="background-color: white; color: #252626; font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 12px;">
<img alt="Is College Worth It?" src="http://content.gallup.com/origin/gallupinc/GallupSpaces/Production/Cms/GMJ/iq764hf3bk28kss0frfyig.jpg" style="border: 0px; height: auto; max-width: 100%;" /></div>
<div class="socialWrap" style="background-color: white; color: #252626; float: right; font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 12px; margin: -35px 15px 0px 0px; position: relative; z-index: 999;">
<div class="linkedInWrap" style="float: left; margin: 0px 15px 0px 0px;">
<span class="IN-widget" style="display: inline-block; line-height: 1; text-align: center; vertical-align: baseline;"><span style="display: inline-block !important; font-size: 1px !important; margin: 0px !important; padding: 0px !important; vertical-align: baseline !important;"><span id="li_ui_li_gen_1379008356570_0" style="display: block !important; overflow: visible !important; position: relative !important;"><a href="http://www.blogger.com/blogger.g?blogID=4362634453160311564" id="li_ui_li_gen_1379008356570_0-link" style="border: 0px !important; color: #e37222; cursor: pointer; display: inline-block !important; height: 20px !important; margin: 0px !important; padding: 0px !important;"><span id="li_ui_li_gen_1379008356570_0-logo" style="background-image: url(http://s.c.lnkd.licdn.com/scds/common/u/img/sprite/sprite_connect_v13.png) !important; background-position: 0px -276px !important; background-repeat: no-repeat no-repeat !important; border: 0px !important; cursor: pointer !important; display: block !important; float: right !important; height: 20px !important; left: 0px !important; margin: 0px !important; overflow: hidden !important; padding: 0px !important; position: absolute !important; text-indent: -9999em !important; top: 0px !important; width: 20px !important;">in</span><span id="li_ui_li_gen_1379008356570_0-title" style="background-color: rgb(236, 236, 236) !important; background-image: -webkit-linear-gradient(top, rgb(254, 254, 254) 0%, rgb(236, 236, 236) 100%) !important; border-bottom-color: rgb(185, 185, 185) !important; border-bottom-left-radius: 0px !important; border-bottom-right-radius: 2px !important; border-bottom-style: solid !important; border-right-color: rgb(191, 191, 191) !important; border-right-style: solid !important; border-top-color: rgb(226, 226, 226) !important; border-top-left-radius: 0px !important; border-top-right-radius: 2px !important; border-top-style: solid !important; border-width: 1px 1px 1px 0px !important; color: rgb(51, 51, 51) !important; cursor: pointer !important; display: block !important; float: left !important; height: 18px !important; line-height: 20px !important; margin-left: 1px !important; overflow: hidden !important; padding: 0px 4px 0px 23px !important; text-shadow: rgb(255, 255, 255) -1px 1px 0px !important; vertical-align: top !important; white-space: nowrap !important;"><span id="li_ui_li_gen_1379008356570_0-mark" style="display: inline-block !important; overflow: hidden !important; width: 0px !important;"></span><span id="li_ui_li_gen_1379008356570_0-title-text" style="background-color: transparent !important; background-image: none !important; display: inline-block !important; float: none !important; font-family: Arial, sans-serif !important; font-size: 11px !important; font-weight: bold !important; height: 18px !important; vertical-align: baseline !important;">Share</span></span></a></span></span></span></div>
<div class="tweetWrap" style="float: left; margin: 0px;">
<iframe allowtransparency="true" class="twitter-share-button twitter-count-none" data-twttr-rendered="true" frameborder="0" scrolling="no" src="http://platform.twitter.com/widgets/tweet_button.1379006964.html#_=1379008356517&count=none&counturl=http%3A%2F%2Fbusinessjournal.gallup.com%2Fcontent%2F164108%2Fcollege-worth.aspx&hashtags=GBJ%2CLeadership&id=twitter-widget-0&lang=en&original_referer=http%3A%2F%2Fbusinessjournal.gallup.com%2Fcontent%2F164108%2Fcollege-worth.aspx%3Futm_source%3Demail%26utm_medium%3D092013%26utm_content%3Dmorelink%26utm_campaign%3Dnewsletter&related=GallupJournal&size=m&text=Is%20College%20Worth%20It%3F&url=http%3A%2F%2Fbusinessjournal.gallup.com%2Fcontent%2F164108%2Fcollege-worth.aspx%3Futm_source%3Dtwitterbutton%26utm_medium%3Dtwitter%26utm_campaign%3Dsharing" style="height: 20px; width: 59px;" title="Twitter Tweet Button"></iframe></div>
</div>
<h2 style="background-color: white; clear: both; color: #595b5c; font-family: Arial, Helvetica, sans-serif; font-size: 1em; font-weight: normal; line-height: 1.4em; margin: 0.75em 0px; padding-right: 239.984375px;">
Yes, but boards of trustees and college presidents need new measures of success</h2>
<a href="http://businessjournal.gallup.com/">Gallup Business Journal</a>: <br />
<span style="background-color: white; color: #8e908f; font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 12px;">August 27, 2013</span><br />
<span style="background-color: white; color: #595b5c; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 12px; font-style: italic; line-height: 16.125px;">by Brandon Busteed</span><br />
<div class="page pagehide pageshow" id="page1" style="clear: both;">
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<br /></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
Higher education faces daunting challenges: soaring costs, access and completion issues, rapidly changing technology, and accountability pressures from state and federal officials. But no challenge is more daunting than the fundamental question that many Americans are now asking, <em>"Is college worth it?"</em></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Education_gender.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: I created the graph myself using 2000..." border="0" class="zemanta-img-inserted" height="150" src="http://upload.wikimedia.org/wikipedia/commons/thumb/d/da/Education_gender.jpg/300px-Education_gender.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: I created the graph myself using 2000 Census Data. Please note that the percentages in the chart represent those with the degree listed or higher. In other words, 26% of men had a Bachelor's degree or higher. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Education_gender.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
Today, some in higher education answer this question by tracking outcome measures such as degree attainment and <a class="zem_slink" href="http://en.wikipedia.org/wiki/Gainful_employment" rel="wikipedia" target="_blank" title="Gainful employment">gainful employment</a>. Others provide data about graduates' average starting salaries or alumni satisfaction rates. Still others cite the fact that people with <a class="zem_slink" href="http://en.wikipedia.org/wiki/Bachelor%27s_degree" rel="wikipedia" target="_blank" title="Bachelor's degree">bachelor's degrees</a> earn $1 million more over their lifetimes than those with only a <a class="zem_slink" href="http://en.wikipedia.org/wiki/High_school_diploma" rel="wikipedia" target="_blank" title="High school diploma">high school diploma</a>. Boards of trustees may rely on these data to make important decisions about the institutions they govern, but all of these metrics fall short of explaining why college is worth it.</div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
As a result of the recent economic downturn, many graduates are not finding well-paying jobs. Meanwhile, over the past two decades, average tuition at American colleges and universities has jumped 248%. As a percentage of household income, tuition has risen from 23% in 2001 to 38% today.</div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
How have Americans afforded this? The simple answer is that they haven't. Student loan debt in the U.S. recently surpassed $1 trillion -- more than all credit card debt combined. Americans are spending money they don't have to finance educations they're not sure are worth it. This raises the fundamental question: What should be the ultimate outcome of a college education? If college trustees are not already asking themselves this question, they must start.</div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<strong>What should be the ultimate outcome of a college education?</strong></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.flickr.com/photos/18090920@N07/5617089955" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="education" border="0" class="zemanta-img-inserted" height="71" src="http://farm6.static.flickr.com/5269/5617089955_d20fe0f1ab_m.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 240px;">education (Photo credit: <a href="http://www.flickr.com/photos/18090920@N07/5617089955" target="_blank">Sean MacEntee</a>)</td></tr>
</tbody></table>
...I spent six months informally asking college presidents and trustees this very question. After dozens of interviews, a pattern emerged. Although the words and perspectives differed, the answers were consistent: "To improve one's lot in life" or "To prepare people for long-term success in life." Those are solid, inspiring answers. So I asked the next obvious question: "How are you measuring this?" The unanimous answer was: "We aren't."</div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
There is an expression: "We value what we measure." It seems clear that leaders in higher education are not measuring what they value right now. But there is an alternative -- one that would lead to better educational and career outcomes for students and provide an affirmative answer to the question of whether college is worth the time, money, and effort.</div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
Most people would agree that helping someone attain a better, fuller life is much more important than good grades and a degree. These same people also stress that college prepares a person not just for a first job out of college but for many different jobs over his or her lifetime. But how do you measure these longer-term outcomes? Gallup has conducted research that can point higher education in the right direction.</div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<strong>Well-being closely tied to education</strong></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
Every night, Gallup surveys a representative sample of Americans, asking them to rate their lives and whether they are happy with them; we also regularly pose these same questions to people worldwide. As a result, we have discovered what the most satisfied and successful people do and, subsequently, why they rate their lives highly. In other words, we are studying the <em>well-being</em> of people around the world. Our research reinforces the fact that the ultimate outcome of an education is fundamentally about well-being. People often view well-being as happiness or wealth, but it is much more than that, and it is closely tied to education.</div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
From our data, Gallup found five essential elements of well-being: Career, Social, Financial, Physical, and Community. These well-being elements represent the broad categories that are essential for most people to live a life that matters. (See sidebar "The Five Essential Elements of Well-Being.")</div>
<table bgcolor="#F0F0F0" border="1" bordercolor="#D5D6D2" cellpadding="8" style="border-collapse: collapse; border-spacing: 0px; margin-bottom: 14px; margin-top: 14px;"><tbody>
<tr><td style="padding: 8px;"><h3 style="color: #e37222; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 1.5em; font-weight: normal; line-height: 1.4em; margin: 1em 0px; size: 16pt;">
The Five Essential Elements of Well-Being</h3>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
For more than 50 years, Gallup scientists have been exploring the demands of a life well-lived. More recently, in partnership with leading economists, psychologists, and other acclaimed scientists, Gallup has uncovered the common elements of well-being that transcend countries and cultures. This research revealed the universal elements of well-being that differentiate a thriving life from one spent suffering. They represent five broad categories that are essential to most people:</div>
<ul style="line-height: 1.5em; margin: 1em 0px; padding: 0px 0px 0px 40px;">
<li><a href="http://gmj.gallup.com/content/127034/Career-Wellbeing-Identity.aspx" style="color: #e37222; cursor: pointer; text-decoration: none;" title="Career Wellbeing"><strong>Career Well-Being</strong></a><strong>:</strong> how you occupy your time -- or simply liking what you do every day</li>
<li><a href="http://gmj.gallup.com/content/127043/Friends-Social-Wellbeing.aspx" style="color: #e37222; cursor: pointer; text-decoration: none;" title="Social Wellbeing"><strong>Social Well-Being</strong></a><strong>:</strong> having strong relationships and love in your life</li>
<li><a href="http://gmj.gallup.com/content/127193/Spending-Financial-Wellbeing.aspx" style="color: #e37222; cursor: pointer; text-decoration: none;" title="Financial Wellbeing"><strong>Financial Well-Being</strong></a><strong>:</strong> effectively managing your economic life</li>
<li><strong><a href="http://gmj.gallup.com/content/127211/Exercise-Sleep-Physical-Wellbeing.aspx" style="color: #e37222; cursor: pointer; text-decoration: none;" title="Physical Wellbeing">Physical Well-Being</a>:</strong> having good health and enough energy to get things done on a daily basis</li>
<li><a href="http://gmj.gallup.com/content/127217/Giving-Community-Wellbeing.aspx" style="color: #e37222; cursor: pointer; text-decoration: none;" title="Community Wellbeing"><strong>Community Well-Being</strong></a><strong>:</strong> the sense of engagement you have with the area where you live</li>
</ul>
</td></tr>
</tbody></table>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
Of those five elements, Gallup finds that Career Well-Being is the most important predictor of well-being across the board. Though not a guarantee, it is likely that someone with high Career Well-Being also has high Social, Financial, Physical, and Community Well-Being. Across every country Gallup surveyed, people said that a good job trumps everything, including health and happiness. People certainly still value these things, but they usually view them as most achievable through a good job.</div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<span style="background-color: white; color: #252626; line-height: 1.5em;"><span style="font-family: inherit;">But what is a "good" job? In our research, we found that for people around the world, Career Well-Being is not just about earning a higher salary. It is not about the company you work for, the money you make, or the benefits you receive. It is about liking what you do, doing what you are best at every day, and having a good manager.</span></span></div>
<div class="page pagehide pageshow" id="page2" style="background-color: white; clear: both; color: #252626; line-height: 19.1875px;">
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<span style="font-family: inherit;">Using a workplace engagement study, Gallup surveyed 22 million employees in all types of organizations worldwide and can now define what a good job looks like and measure whether someone has one. Someone who strongly agrees (by answering 5 on a 5-point scale) with the following statements has a good job: "I like what I do each day"; "At work, I have the opportunity to do what I do best every day"; "My supervisor, or someone at work, seems to care about me as a person"; and "There is someone at work who encourages my development." He or she may also strongly agree with statements such as: "I learn or do something interesting every day" and "In the last 12 months, I have reached most of my goals." Taken together, such statements describe a person who is highly engaged at work and who has high Career Well-Being.</span></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<strong><span style="font-family: inherit;">Success starts with doing what you do best</span></strong></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<span style="font-family: inherit;">Gallup's well-being research suggests a better way to measure meaningful outcomes in higher education. It is a measure that every college and university can use with alumni to provide a clear value proposition about the lifelong effect of a particular college degree on graduates -- and it is a measure that board members should support. Success as defined by well-being is less about students getting the highest-paying job and more about figuring out what they like to do and what they do best.</span></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<span style="font-family: inherit;">Incorporating experiential and project-based learning, internships, or mentorships into a degree program can aid in this process. The emphasis then becomes less about listing dozens of involvements on a résumé and more about making a lasting contribution to one or two. It is less about getting students recruited by a brand-name firm and more about teaching students how to identify a good manager and an engaging workplace.</span></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<span style="font-family: inherit;">In short, it is possible to reliably and consistently measure things such as whether graduates are engaged in their jobs, doing what they are best at, contributing to their communities, and generally achieving a high quality of life. Higher education has been aiming at these outcomes for a long time without ever fully knowing the result.</span></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<span style="font-family: inherit;">It's time trustees and college presidents understand how their schools are doing and then ensure that they are retooling their curriculum and student experiences to improve the results. And as opposed to seeing only how certain alumni compare with alumni from other colleges and universities, schools can now compare these results against results from the U.S. population and the world -- which is a real and meaningful measuring stick.</span></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<span style="font-family: inherit;">This measurement doesn't need to be -- nor should it be -- a new ranking system. What matters for an institution is knowing how it is doing on these measures and working to improve them every year regardless of how strong or weak its starting position is. Any number of higher education constituencies will demand knowing that institutions care about and measure these outcomes.</span></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<strong><span style="font-family: inherit;">Helping students achieve well-being</span></strong></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<span style="font-family: inherit;">Getting a good job and achieving higher well-being should become the ultimate signifiers of success and a measurable and definitive standard. Leaders in higher education must set their sights on helping their students and graduates achieve not only well-paying jobs but also well-being. In doing so, they will most certainly improve many intermediate outcomes along the way.</span></div>
<div style="line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<span style="font-family: inherit;">Shortsighted and insufficient measures currently shape the higher education agenda. If board members introdu</span><br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-right: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.flickr.com/photos/93452909@N00/6132547533" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="American Education is in the Dumpster" border="0" class="zemanta-img-inserted" height="150" src="http://farm7.static.flickr.com/6191/6132547533_5942a0df00_m.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 240px;">American Education is in the Dumpster (Photo credit: <a href="http://www.flickr.com/photos/93452909@N00/6132547533" target="_blank">brewbooks</a>)</td></tr>
</tbody></table>
<span style="font-family: inherit;">ce better outcomes to aim for -- such as Career Well-Being -- others will find ways to achieve them. But until colleges and universities value what they measure and measure what they value, Americans will continue to ask, "Is college worth it?" And leaders in higher education might not like the answer.</span></div>
<div style="font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<em>A version of this article appeared in the July/August 2013 issue of</em> <a href="http://agb.org/publications/trusteeship" style="color: #e37222; cursor: pointer; text-decoration: none;">Trusteeship Magazine</a>.</div>
<div style="font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 1.5em; margin-bottom: 1em; padding: 0px;">
<span style="color: #595b5c; line-height: 17.90625px;">Brandon Busteed is Executive Director, Gallup Education.</span></div>
</div>
<div class="pagingnavigation clearfix" style="background-color: white; clear: both; color: #252626; font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 19.1875px; margin-bottom: 15px; padding-top: 15px;">
<div class="inner">
<span class="numLink prevLink" style="display: block; float: left;"></span></div>
</div>
</div>
<div class="pagingnavigation clearfix" style="clear: both; margin-bottom: 15px; padding-top: 15px;">
<div class="inner">
<span class="numLink prevLink" style="background-color: white; color: #252626; display: block; float: left; font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 19.1875px;"></span><span class="numLink beforeSpacer" style="background-color: white; color: #252626; display: block; float: left; font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 19.1875px;"></span><span class="numLink prevNum" style="background-color: white; color: #252626; display: block; float: left; font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 19.1875px;"></span><span class="numLink pagingLinks" style="background-color: white; color: #252626; display: block; float: left; font-family: Arial, Helvetica, sans-serif; font-size: 13px; line-height: 19.1875px;"></span></div>
</div>
<span style="background-color: white; color: #595b5c; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 12px; font-style: italic; line-height: 16.125px;"><br /></span>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.dailyfinance.com/on/student-loan-debt-countries-free-college-tuition/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/201034598_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.dailyfinance.com/on/student-loan-debt-countries-free-college-tuition/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Even in Countries Where Tuition Is Free, College Debt Can Be a Problem</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.salon.com/2013/09/12/public_universities_ramp_up_aid_for_the_wealthy_leaving_the_poor_behind_partner_2/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/201427538_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.salon.com/2013/09/12/public_universities_ramp_up_aid_for_the_wealthy_leaving_the_poor_behind_partner_2/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Public universities ramp up aid for the wealthy, leaving the poor behind</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://hipsterkidz.com/2013/09/11/is-college-really-worth-all-the-student-loan-debt/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/201222200_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://hipsterkidz.com/2013/09/11/is-college-really-worth-all-the-student-loan-debt/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Is College Really Worth all the Student Loan Debt?</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.wthitv.com/dpp/news/education/graduates-is-college-worth-it" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/190666193_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.wthitv.com/dpp/news/education/graduates-is-college-worth-it" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Graduates: Is college worth it?</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=c0b64680-90d0-433f-8981-4246f1012704" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-86240537840360731632013-09-06T12:46:00.001-05:002013-09-06T12:55:47.396-05:00How Small Businesses Should Plan for Disasters<a href="http://www.businessweek.com/articles/2013-09-06/how-small-businesses-should-plan-for-disasters" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #003366; font-family: sans-serif; font-size: 13px; line-height: 16px; outline: none;"><img alt="Sveinn Storm pumping water out of his flooded store, Storm Bros. Ice Cream Factory, in October 2012 in Annapolis, Md." height="420" src="http://images.bwbx.io/cms/2013-09-05/0905_Sandy_630x420.jpg" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;" title="How Small Businesses Should Plan for Disasters" width="630" /></a><br />
<div class="photo_credit" style="border: 0px; color: #999999; font-family: sans-serif; font-size: 0.75em; line-height: 10px; padding: 0px; text-align: right; vertical-align: baseline;">
Photograph by Blake Sell/AP Images</div>
<div class="photo_caption" style="border: 0px; color: #999999; font-family: sans-serif; font-size: 12px; line-height: 16px; padding: 12px 0px 0px; vertical-align: baseline;">
Sveinn Storm pumping water out of his flooded store, Storm Bros. Ice Cream Factory, in October 2012 in Annapolis, Md.</div>
<a href="http://www.businessweek.com/">Businessweek</a>: <br />
<span class="byline" style="border-right-color: rgb(204, 204, 204); border-right-style: solid; border-width: 0px 1px 0px 0px; color: #444444; font-family: sans-serif; font-size: 13px; line-height: 16px; margin: 0px 7px 0px 0px; padding: 0px 7px 0px 0px; vertical-align: baseline;"><span class="byline-text" style="border: 0px; font-family: HelveticaNeue, helvetica, arial, geneva, sans-serif; font-size: 0.9em; margin: 0px; padding: 0px; vertical-align: baseline;">By <a href="http://www.businessweek.com/authors/1501-karen-e-klein" rel="author" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #555555; text-decoration: none;">Karen E. Klein</a> </span></span><span style="color: #444444; font-family: sans-serif; font-size: 13px; line-height: 16px;"></span><span class="byline-text" style="border: 0px; color: #444444; font-family: HelveticaNeue, helvetica, arial, geneva, sans-serif; font-size: 0.9em; margin: 0px; padding: 0px; vertical-align: baseline;">September 06, 2013</span><br />
<div id="article_body" style="border: 0px; color: #444444; font-family: Georgia, serif; font-size: 13px; line-height: 16px; margin: 0px 0px 5px; padding: 0px; vertical-align: baseline;">
<div class="paginated_content clearfix" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline; zoom: 1;">
<div class="page current" id="_page1" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">
<div class="" style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
<strong style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">Question:</strong> After <a class="zem_slink" href="http://en.wikipedia.org/wiki/Hurricane_Sandy" rel="wikipedia" target="_blank" title="Hurricane Sandy">Hurricane Sandy</a>, I didn’t even have time to think about preparing for the next disaster. Now that my business is finally running smoothly again, I’d like to prepare in case another major storm hits. What should I be doing?</div>
<div style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.crunchbase.com/company/u-s-small-business-administration" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Image representing U.S. Small Business Adminis..." border="0" class="zemanta-img-inserted" height="60" src="http://www.crunchbase.com/assets/images/resized/0011/4419/114419v1-max-450x450.png" style="border: none; font-size: 0.8em;" width="140" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 140px;">Image via <a href="http://www.crunchbase.com/" target="_blank">CrunchBase</a></td></tr>
</tbody></table>
<strong style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">Answer:</strong> You’re ahead of the game, since your business has survived one major disaster and you’re familiar with what it takes to recover and reopen. The <a class="zem_slink" href="http://www.sba.gov/" rel="homepage" target="_blank" title="U.S. Small Business Administration">U.S. Small Business Administration</a> estimates that <a href="http://www.sba.gov/content/disaster-planning" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #007cd5; text-decoration: none;">one-quarter of businesses</a> that are hit by disaster fail as a result.</div>
<div style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
Even after coming through a catastrophe—whether it be a hurricane, fire, or terrorist attack—some small business owners don’t prepare for the next one, says Bob Risk (yes, it’s his real name), who owned a 65-employee disaster cleanup business for 18 years and now works as a safety expert for <span class="ticker_wrap" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span itemscope="" itemtype="http://schema.org/Corporation" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span itemprop="name" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">Staples</span></span> (<a class="ticker" data-symbol="SPLS" href="http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=SPLS" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #007cd5; text-decoration: none;">SPLS</a>)</span>. “I’ve seen people get hit with a flood, fight to get back into business, talk about how terrible it was, and then three months or three years go by and the exact same thing happens—and they haven’t taken any measures to deal with it.”</div>
<div class="related_item tracked" data-action-type="Feature Template" data-actions="click" data-category="Inline Related Links" data-label="Position: 0" style="border: 0px; color: #007cd5; font-family: 'Helvetica Neue', Helvetica-Neue, Helvetica, Arial, sans-serif; font-size: 1.3em; font-weight: bold; margin: -0.25em 0px 1.6em; padding: 0px; vertical-align: baseline;">
<a href="http://www.businessweek.com/articles/2013-04-12/what-happened-to-small-businesses-walloped-by-hurricane-sandy" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #007cd5; text-decoration: none;"><span class="related_item-label" style="border: 0px; color: black; font-weight: bolder; margin: 0px; padding: 0px; vertical-align: baseline;">BLOG: </span>What Happened to Small Businesses Walloped by Hurricane Sandy?</a></div>
<div style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-right: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:FEMA_-_42344_-_Small_Business_Administration_Opens_Disaster_Loan_Center.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="SBA opens Disaster Loan Center in Austell, GA,..." border="0" class="zemanta-img-inserted" height="132" src="http://upload.wikimedia.org/wikipedia/commons/thumb/d/d4/FEMA_-_42344_-_Small_Business_Administration_Opens_Disaster_Loan_Center.jpg/300px-FEMA_-_42344_-_Small_Business_Administration_Opens_Disaster_Loan_Center.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">SBA opens Disaster Loan Center in Austell, GA, October 26, 2009 (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:FEMA_-_42344_-_Small_Business_Administration_Opens_Disaster_Loan_Center.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
If you’re worried that disaster prep will be costly and time-consuming, those fears are unfounded, says Bob Boyd, president and chief executive of <a href="http://www2.agilityrecovery.com/" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #007cd5; text-decoration: none;">Agility Recovery</a>, based in Charlotte, N.C. Small steps can make a big difference. “Don’t get paralyzed by worrying about big solutions that are expensive when it’s easy to knock off the low-hanging fruit,” he says.</div>
<div style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:FEMA_-_35665_-_SBA_helping_residents_at_a_Disaster_Recovery_Center.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Martinsville, IN, June 13, 2008 -- U...." border="0" class="zemanta-img-inserted" height="154" src="http://upload.wikimedia.org/wikipedia/commons/thumb/f/fe/FEMA_-_35665_-_SBA_helping_residents_at_a_Disaster_Recovery_Center.jpg/300px-FEMA_-_35665_-_SBA_helping_residents_at_a_Disaster_Recovery_Center.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Martinsville, IN, June 13, 2008 -- U.S. Small Business Administration (SBA), Deputy Administrator, Jovita Carranza, offers aid and advice to a Hoosier family after flooding in southern Indiana, at a Disaster Recovery Center (DRC). Barry Bahler/FEMA (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:FEMA_-_35665_-_SBA_helping_residents_at_a_Disaster_Recovery_Center.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
Boyd recommends you start at the SBA’s <a href="http://www.preparemybusiness.org/planning" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #007cd5; text-decoration: none;">disaster planning site</a> and think through the three major problems that result from disasters: loss of power, loss of communications, and loss of property. “If you can take phone calls and keep production going, you’ll be light years ahead of your competitors. Your customers will never come back to you if your business fails them. But everyone will come to you—and they’ll never leave—if you prove your business to be successful and trustworthy,” he says.</div>
<div style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
Here’s what to do:<strong style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"></strong></div>
<div class="related_item tracked" data-action-type="Feature Template" data-actions="click" data-category="Inline Related Links" data-label="Position: 0" style="border: 0px; color: #007cd5; font-family: 'Helvetica Neue', Helvetica-Neue, Helvetica, Arial, sans-serif; font-size: 1.3em; font-weight: bold; margin: -0.25em 0px 1.6em; padding: 0px; vertical-align: baseline;">
<a href="http://www.businessweek.com/articles/2013-02-14/the-disaster-response-industrys-salesmen-of-the-apocalypse" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #007cd5; text-decoration: none;"><span class="related_item-label" style="border: 0px; color: black; font-weight: bolder; margin: 0px; padding: 0px; vertical-align: baseline;">STORY: </span>The Disaster Response Industry's Salesmen of the Apocalypse</a></div>
<div style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-right: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:FEMA_-_72_-_Photograph_by_Dave_Saville_taken_on_10-06-1999_in_North_Carolina.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Goldsboro, NC, October 6, 1999 -- Mic..." border="0" class="zemanta-img-inserted" height="150" src="http://upload.wikimedia.org/wikipedia/commons/thumb/2/21/FEMA_-_72_-_Photograph_by_Dave_Saville_taken_on_10-06-1999_in_North_Carolina.jpg/300px-FEMA_-_72_-_Photograph_by_Dave_Saville_taken_on_10-06-1999_in_North_Carolina.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Goldsboro, NC, October 6, 1999 -- Michael C. Allen of the U.S. Small Business Administration, explains recovery programs at a forum recently held in Goldsboro, NC. The SBA works in partnership with FEMA to assist the victims of disaster. Photo By DAVE SAVILLE/ FEMA News Photo (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:FEMA_-_72_-_Photograph_by_Dave_Saville_taken_on_10-06-1999_in_North_Carolina.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<strong style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">Plan for power loss.</strong> Talk to an electrician about what kind of generator you would need to power your business and how to get one in a hurry. “Most business people don’t know what they would need if they had to find a generator someplace,” Boyd says. If you plan ahead, he says, “as soon as you lose power, you can make one call and get one.”</div>
<div style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
<strong style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">Plan to communicate.</strong> With power down, you may not be able to rely on electronic devices or have access to important contact information. “Make sure your employees know how to reach you and how you’ll communicate with them in an<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:FEMA_-_33009_-_SBA_talking_to_a_local_business_owner_in_Ohio.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Findlay, Ohio, September 20, 2007 -- ..." border="0" class="zemanta-img-inserted" height="130" src="http://upload.wikimedia.org/wikipedia/commons/thumb/8/81/FEMA_-_33009_-_SBA_talking_to_a_local_business_owner_in_Ohio.jpg/300px-FEMA_-_33009_-_SBA_talking_to_a_local_business_owner_in_Ohio.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Findlay, Ohio, September 20, 2007 -- Small Business Administration (SBA) representative Gilbert YingLing (L) listens to Brian Wilkins, a local business owner whose glass company suffered extensive damage in recent flooding. SBA contacts local business owners as part of their Disaster Outreach Program. John Ficara/FEMA (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:FEMA_-_33009_-_SBA_talking_to_a_local_business_owner_in_Ohio.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
emergency, whether it’s on <span class="ticker_wrap" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span itemscope="" itemtype="http://schema.org/Corporation" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><span itemprop="name" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">Facebook</span></span> (<a class="ticker" data-symbol="FB" href="http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=FB" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #007cd5; text-decoration: none;">FB</a>)</span>, Twitter, or through text messages,” Boyd says. Print out important phone numbers, bank account numbers, credit-card numbers, and any other information that is critical to your operation and update it regularly. Then put hard copies in several locations and make sure your staff knows where they are located.</div>
<div style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
<strong style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">Plan to keep working.</strong> Your final major hurdle will be finding a place to work if your location is under water or otherwise inaccessible. “Think through where you’re going to go, and don’t just rely on a work-from-home strategy,” Boyd says. “If your office is dark and unconnected, your home may be also. Come up with some remote locations where you can relocate temporarily, perhaps setting up a reciprocal arrangement with a business or a friend in another city.”</div>
<div class="related_item tracked" data-action-type="Feature Template" data-actions="click" data-category="Inline Related Links" data-label="Position: 1" style="border: 0px; color: #007cd5; font-family: 'Helvetica Neue', Helvetica-Neue, Helvetica, Arial, sans-serif; font-size: 1.3em; font-weight: bold; margin: -0.25em 0px 1.6em; padding: 0px; vertical-align: baseline;">
<a href="http://www.businessweek.com/articles/2013-05-24/the-sbas-role-as-a-home-lender-post-oklahoma-tornado" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #007cd5; text-decoration: none;"><span class="related_item-label" style="border: 0px; color: black; font-weight: bolder; margin: 0px; padding: 0px; vertical-align: baseline;">BLOG: </span>The SBA’s Role as Home Lender, Post-Oklahoma Tornado</a></div>
<div style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
<strong style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">Buy basic supplies.</strong> It’s easy to purchase emergency preparedness kits and keep them in your office, your home, and your car. They can be expensive, though, and will probably include many items you don’t really need. “Grabbing an old duffel bag and throwing some basic things in there can meet your requirements just as effectively,” Risk says.</div>
<div style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
What should be in it? Risk suggests crank-powered radios, flashlights, and cell-phone chargers; heavy-duty extension cords; emergency water; mylar blankets and inexpensive ponchos; and rubber boots that can be pulled over your shoes. Don’t forget easy to carry emergency food, such as high-calorie energy bars with long shelf-lives. And, for 50¢ or $1 each, glow sticks on lanyards provide 12 hours of light in case you need to evacuate your employees or walk home after dark.</div>
<div style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
<strong style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;">Prepare your employees.</strong> “Designate a disaster preparedness point person, or team, to spearhead the planning efforts,” Esmail Hozour, chief executive of Palo Alto (Calif.)-based Etón, which sells preparedness products, writes in an e-mail. That team should set up an area for employees to meet in your building or outside it; maintain an updated list of employees to make sure everyone is safe and accounted for after a disaster; display emergency contact information in a central location in your workplace, and encourage your staff to enroll in first aid and CPR classes, paid for by your company.</div>
<div class="related_item tracked" data-action-type="Feature Template" data-actions="click" data-category="Inline Related Links" data-label="Position: 0" style="border: 0px; color: #007cd5; font-family: 'Helvetica Neue', Helvetica-Neue, Helvetica, Arial, sans-serif; font-size: 1.3em; font-weight: bold; margin: -0.25em 0px 1.6em; padding: 0px; vertical-align: baseline;">
<a href="http://www.businessweek.com/articles/2012-12-04/the-importance-of-disaster-plans" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #007cd5; text-decoration: none;"><span class="related_item-label" style="border: 0px; color: black; font-weight: bolder; margin: 0px; padding: 0px; vertical-align: baseline;">STORY: </span>The Importance of Disaster Plans</a></div>
<div class="" style="border: 0px; color: #222222; font-size: 1.3em; line-height: 1.5em; margin-bottom: 1.5em; padding: 0px; vertical-align: baseline;">
Check out some additional resources: The Independent Community Bankers of America, a trade group representing 7,000 community banks, lists <a href="http://www.icba.org/news/newsreleasedetail.cfm?ItemNumber=142485&sn.ItemNumber=1733&tn.ItemNumber=1915lists" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #007cd5; text-decoration: none;">financial preparedness tips</a> on its website. The SBA is hosting three <a href="http://www.agilitywebinars.com/" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #007cd5; text-decoration: none;">free webinars</a> this month on disaster preparedness for small businesses.</div>
</div>
</div>
</div>
<div class="author_bio_container" style="border: 0px; color: #444444; font-family: sans-serif; font-size: 13px; line-height: 16px; margin: 0px; padding: 5px 0px 25px; vertical-align: baseline;">
<div class="author_bio_image" style="border: 0px; float: left; margin: 0px 15px 0px 0px; padding: 0px; vertical-align: baseline;">
<span class="headshot" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;"><img alt="Karen_klein" src="http://images.bwbx.io/cms/2011-06-28/karen_klein.jpg" style="border: 0px; margin: 0px; padding: 0px; vertical-align: baseline;" width="40" /></span></div>
<div class="author_short_bios" style="border: 0px; margin: 0px; padding: 12px 0px 0px; vertical-align: baseline;">
<a href="mailto:Karen@KarenEKlein.com" style="-webkit-tap-highlight-color: rgb(255, 102, 0); color: #555555; text-decoration: none;">Klein</a> is a Los Angeles-based writer who covers entrepreneurship and small-business issues.</div>
<div>
<br /></div>
</div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.thehartford.com/business/disaster-planning-small-business" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/197058623_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.thehartford.com/business/disaster-planning-small-business" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Extreme Weather Part I Wild Weather Catching: Small Businesses Off Guard</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.thehartford.com/smallbizahead/hub-article/storm-sandy-lessons" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/197058120_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.thehartford.com/smallbizahead/hub-article/storm-sandy-lessons" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Effect Of Storm Sandy On Small Business</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.businessweek.com/articles/2013-08-19/fixing-the-disaster-loan-logjam-before-the-next-hurricane-sandy" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/195137839_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.businessweek.com/articles/2013-08-19/fixing-the-disaster-loan-logjam-before-the-next-hurricane-sandy" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Fixing the Disaster Loan Logjam Before the Next Hurricane Sandy</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://rtriplec.wordpress.com/2013/09/06/get-your-business-ready-for-any-kind-of-disaster-at-free-national-preparedness-month-webinar-series/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_37_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://rtriplec.wordpress.com/2013/09/06/get-your-business-ready-for-any-kind-of-disaster-at-free-national-preparedness-month-webinar-series/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Get Your Business Ready For Any Kind of Disaster at Free National Preparedness Month Webinar Series</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=785bc192-5286-4924-b5c8-3e0dd2703de1" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-91719369764813609922013-09-04T11:13:00.001-05:002013-09-04T11:19:50.599-05:009 Ways to Use Reverse Mortgages in Retirement Planning<br />
<table style="color: black; font-family: Arial; font-size: 12pt;"><tbody>
<tr><td colspan="2" style="font-size: 12pt; height: 40px;"><span style="font-size: 12pt;"><b>Reverse mortgages may help seniors manage debt, but they can also help advisors manage risk. As a tax-free source of income, advisors can use these loans as a way to replace cash, defer drawdown of retirement assets, reduce tax liabilities, and more.</b></span></td></tr>
</tbody></table>
<a href="http://broadcaster.horsesmouth.com/dm?id=638A6D0FD9F07EEA48892416D8C40EFB#header">Horsesmouth</a>: <br />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 11pt;">By Amy E. Buttell</span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">For years, reverse mortgages have had an iffy reputation with advisors. ...</span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.flickr.com/photos/29528454@N04/7004184263" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="REVERSE MORTGAGES? You know times aren't like ..." border="0" class="zemanta-img-inserted" height="200" src="http://farm7.static.flickr.com/6092/7004184263_b4a07201fd_m.jpg" style="border: none; font-size: 0.8em;" width="160" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 192px;">REVERSE MORTGAGES? You know times aren't like they were when Fred has to obtain a reverse mortgage... (Photo credit: <a href="http://www.flickr.com/photos/29528454@N04/7004184263" target="_blank">roberthuffstutter</a>)</td></tr>
</tbody></table>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">However, the attitude surrounding reverse mortgages is undergoing a shift. In light of changing options for payouts, advisors are finding that reverse mortgages can help with cash, risk, and investment management. <a class="zem_slink" href="http://en.wikipedia.org/wiki/Harold_Evensky" rel="wikipedia" target="_blank" title="Harold Evensky">Harold Evensky</a>, CFP, AIF, president of Evensky & Katz Wealth Management in Coral Gables, Fla., is at the forefront of creative thinking for wealth managers using reverse mortgages. </span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">Evensky sees specific types of reverse mortgages that offer a line-of-credit-type payout as a significant source of cash for retirees in the event of a market reversal. Previously the firm would recommend that these types of clients hold a two-year cash reserve to ride out a market downturn. Now, with a reverse mortgage line of credit, that amount of cash can be cut down because clients can draw on the line of credit connected to their home equity in the event of a prolonged market downturn. </span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">... "Reverse mortgages can be used as an alternative source for retirement income, especially in a low-interest-rate environment," says Robert Margetic, ChFC, CLU, and president of Redwood Financial Advisors. "In retirement, this can be a source of tax-free income that allows clients to continue to defer drawing down IRA and 401(k) funds, get large sums of tax-free money to purchase a car, or cover an unexpectedly large expense." </span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">Advisors need to overcome their bias against reverse mortgages, which have been viewed as shoddy and expensive products, Evensky says. "Practitioners need to overcome these psychological barriers and see that reverse mortgages are not a debt strategy but a risk management strategy," he adds. "By framing the issue in that context, it can be seen as a very useful tool in a variety of situations." </span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 14pt; font-weight: bold;">ABCs of reverse mortgages and payouts</span><span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;"> </span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:US-DeptOfHUD-Seal.svg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="United States Department of Housing and Urban ..." border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/1/1c/US-DeptOfHUD-Seal.svg/300px-US-DeptOfHUD-Seal.svg.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">United States Department of Housing and Urban Development Seal (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:US-DeptOfHUD-Seal.svg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">There are several different types of reverse mortgages. Federally insured reverse mortgages offer the best terms. These are known as home equity conversion mortgages (HECMs) and are backed by the <a class="zem_slink" href="http://maps.google.com/maps?ll=38.8839361111,-77.0225083333&spn=0.01,0.01&q=38.8839361111,-77.0225083333%20(United%20States%20Department%20of%20Housing%20and%20Urban%20Development)&t=h" rel="geolocation" target="_blank" title="United States Department of Housing and Urban Development">U.S. Department of Housing and Urban Development</a> (HUD). Reverse mortgages can be used for any purpose, and their proceeds are not subject to taxation because they are a return of principal to the homeowner. ... Here is a low-down on borrower requirements:</span><br />
<div style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">
</div>
<ul style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">
<li style="margin-bottom: 10px;"><strong>Borrower requirements.</strong> Borrowers must be 62 years old or older, own their own property or have a mortgage or <a class="zem_slink" href="http://en.wikipedia.org/wiki/Home_equity_line_of_credit" rel="wikipedia" target="_blank" title="Home equity line of credit">home equity line of credit</a> with a small balance, occupy the property and use it as their principal residence, have no federal debt delinquencies, and participate in mandatory counseling by an approved instructor.</li>
<li style="margin-bottom: 10px;"><strong>Property requirements.</strong> Single-family or two- to four-person unit with one unit occupied by the owner-borrower or a HUD-approved condominium or a manufactured home that meets <a class="zem_slink" href="http://www.fha.gov/" rel="homepage" target="_blank" title="Federal Housing Administration">FHA</a> requirements.</li>
<li style="margin-bottom: 10px;"><strong>Financial requirements.</strong> No regular repayments; no minimum income requirement; closing costs can be financed into the loan amount; may require escrow account; limited withdrawals on initial approval, financial assessment required.</li>
<li><strong>Mortgage amount basis.</strong> Age of the youngest borrower, current interest rate, and the lesser of the appraised value of the home or applicable FHA <a class="zem_slink" href="http://en.wikipedia.org/wiki/Reverse_mortgage" rel="wikipedia" target="_blank" title="Reverse mortgage">HECM</a> limit, currently $625,500.</li>
</ul>
<div style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">
</div>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">Once a borrower meets the above requirements and is qualified for the federal HECM, there are four payout options, which include:</span><br />
<div style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">
</div>
<br />
<div style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">
</div>
<br />
<ul style="-webkit-text-stroke-width: 0px; color: black; font-family: Arial, Helvetica, sans-serif; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px;">
<li style="margin-bottom: 10px;"><strong>Term option.</strong> A fixed monthly cash advance for a specific term.</li>
<li style="margin-bottom: 10px;"><strong>Tenure option.</strong> A fixed monthly cash advance for as long as the borrowers live in the home.</li>
<li style="margin-bottom: 10px;"><strong>Line of credit.</strong> A line of credit that can be drawn on in any amount until the line is exhausted.</li>
<li><strong>Combination.</strong> A combination of monthly payments and a line of credit.</li>
</ul>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 14pt; font-weight: bold;">Using reverse mortgages in planning</span><span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;"> </span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">Following are some examples of how advisors can use reverse mortgages in different planning scenarios.</span><br />
<div style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">
</div>
<ul style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">
<li style="margin-bottom: 20px;"><strong>Replace cash reserves.</strong> Evensky believes the line of credit option offers a significant benefit for retirees because it can replace much of the cash reserves that the firm previously recommended that retirees have. "We tested scenarios in different market environments, and it was not very often that the six-month reserve would be exhausted," he said. "If it is, the funds in a HECM Saver could be used at a very modest carry cost. Then, when the market recovered, those funds could be put back into the line of credit."</li>
<li style="margin-bottom: 20px;"><strong>Delay Social Security and pension payouts.</strong> Postponing Social Security benefits can be enormously advantageous to clients, Evensky says. Delaying claiming benefits to age 70 can mean a difference of thousands of dollars in income per year. It also delays paying taxes on that income, including pension payouts. "Maybe you have money in a pension account and you don't want to draw it down as soon as you retire," he says. "You can use an HECM home equity line and then pay it back later."</li>
<li style="margin-bottom: 20px;"><strong>Draw on tax-free vs. taxable funds.</strong> By using proceeds from a reverse mortgage in whatever payout form that works for the homeowner, clients can avoid drawing down on taxable funds from retirement accounts, thus reducing their tax liabilities, says Josh Stephens, president of Reverse Mortgage Direct, a reverse mortgage brokerage firm located in Kirkland, Wash.</li>
<li style="margin-bottom: 20px;"><strong>Capitalize on lower interest rates.</strong> With interest rates low today, it makes sense for any client who might potentially need the money from a reverse mortgage to apply now if they qualify, says Stuart MacMillian, a reverse mortgage loan originator with Reverse Mortgage Direct. "Because interest rates are so low now, borrowers will get more money now than if you wait and rates rise," he says. "Once the loan is originated in a low-rate environment, the proceeds are available—the client can get a line of credit and not have to tap it."</li>
<li style="margin-bottom: 20px;"><strong>Postpone drawing down retirement assets.</strong> Just like Social Security and pension payouts, a reverse mortgage can allow clients to postpone drawing down 401(k) assets and IRAs. "By drawing on a reverse mortgage, assets held within retirement accounts have more time to grow, which means they can last longer through retirement," says Stephens.</li>
<li style="margin-bottom: 20px;"><strong>Cover large expenses.</strong> Rather than draw down taxable retirement assets, clients can take funds from a reverse mortgage to make large purchases. "In retirement, a reverse mortgage can be a source of tax-free income to purchase a car, cover a large medical bill, or manage other unexpected expenses," says Margetic.</li>
<li style="margin-bottom: 20px;"><strong>Provide for mortgage-free retirement.</strong> For clients who still have mortgages, a reverse mortgage can be used to pay off the existing mortgage or line of credit, says David M. Williams, CFP and founding director of Business Enhancement Associates in Cordova, Tenn. Of course, clients must have sufficient equity in their primary residence to qualify for a reverse mortgage to make this workable.</li>
<li style="margin-bottom: 20px;"><strong>Finance a new residence.</strong> Clients who are considering relocating can use proceeds from a reverse mortgage to buy a new home, then pay off the proceeds when the current home is sold, says Williams. "The proceeds of the present home sale in excess of the down payment can be invested with other retirement assets," he says. "Additionally, there is no mortgage payment for the rest of their lives."</li>
<li style="margin-bottom: 20px;"><strong>Receive payouts in excess of the value of the home.</strong> For retirees who secure a reverse mortgage early in their retirement and choose a monthly payout, those payouts last as long as the youngest borrower lives if the tenure option is selected. So, potentially the borrower who takes out a loan at age 62 and lives for 25 or 30 years would likely receive monthly payouts in excess of the value of the home.</li>
</ul>
<div style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">
</div>
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 14pt; font-weight: bold;">Disadvantages of reverse mortgages</span><span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;"> </span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">While there are many pros to reverse mortgages, there are also cons. Like any mortgage, reverse mortgages carry interest. Of course in today's low-interest-rate environment, the costs are not as high as they could be, but that could change if interest rates spike. In addition, a reverse mortgage means that there is less equity in a house for heirs or other purposes. </span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">At some point, as a liability, reverse mortgages are subject to repayment. This typically happens when the youngest borrower leaves the home permanently (to go in a nursing home, for example) or dies. The heirs or homeowner will be faced then with having to sell the property quickly, which may not work well if the local real estate market is distressed. </span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 14pt; font-weight: bold;">Bottom line</span><span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;"> </span><br />
<br style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;" />
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;">Advisors have multiple options when employing reverse mortgages as a planning tool for clients. And because virtually anyone who is 62 or older with a significant amount of equity in their home can obtain a reverse mortgage, it's a tool that can potentially support a client's retirement portfolio by helping them better manage cash, risk, and investments.</span><span style="font-family: Arial, Helvetica, sans-serif; font-size: 16px;"></span><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span><a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.prweb.com/releases/blue-loan-services/reverse-mortgage-solution/prweb11068258.htm" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_11_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.prweb.com/releases/blue-loan-services/reverse-mortgage-solution/prweb11068258.htm" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Reverse Mortgage Solutions Offered In A New Guide From LoanLove.com</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://gooltv.me/09/senior-reverse-mortgages-263.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_55_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://gooltv.me/09/senior-reverse-mortgages-263.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Senior Reverse Mortgages</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.prweb.com/releases/2013/8/prweb11055270.htm" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/196328558_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.prweb.com/releases/2013/8/prweb11055270.htm" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Reverse My Mortgage Addresses How New FHA Changes in Utah HECM Loans May Penalize Marriage</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.prnewswire.com/news-releases/reverse-mortgage-updated-guidelines---a-new-loan-love-article-to-understanding-hecm-loans-today-221116081.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/196888382_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.prnewswire.com/news-releases/reverse-mortgage-updated-guidelines---a-new-loan-love-article-to-understanding-hecm-loans-today-221116081.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Reverse Mortgage Updated Guidelines - A New Loan Love Article To Understanding HECM Loans Today</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=89650147-c781-4b73-88fa-4853c98d9e56" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-72758730983827372602013-09-03T12:13:00.001-05:002013-09-03T12:18:38.621-05:00Rand Predicts HIX Price Shock Unlikely<div id="article-teaser" style="background-color: white; clear: both; color: #333333; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 18px; line-height: 24px; margin-bottom: 10px; margin-top: 10px; padding: 0px;">
Despite numerous predictions to the contrary, big jumps in premiums for policies sold through the new state-based health exchanges are unlikely, a <a class="zem_slink" href="http://www.rand.org/" rel="homepage" target="_blank" title="RAND Corporation">Rand Corp.</a> analysis has found.</div>
<div>
<br /></div>
<a href="http://eba.benefitnews.com/health-insurance-exchange">Health Insurance Exchange</a>: <br />
<div class="author" style="background-color: white; color: #333333; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 10px; line-height: 18px; margin: 0px; padding: 0px; text-transform: uppercase;">
BY: ELLIOT M. KASS</div>
<div class="datetime" style="background-color: white; color: #333333; font-family: Arial, Helvetica, Verdana, sans-serif; font-size: 10px; line-height: 18px; margin: 0px; padding: 0px; text-transform: uppercase;">
SEPTEMBER 3, 2013</div>
<div style="font-size: 12px; line-height: 18px; margin-bottom: 0.8em; padding: 0px;">
<br /></div>
<div style="font-size: 12px; line-height: 18px; margin-bottom: 0.8em; padding: 0px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Obama_signing_health_care-20100323.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Barack Obama signing the Patient Prot..." border="0" class="zemanta-img-inserted" height="150" src="http://upload.wikimedia.org/wikipedia/commons/thumb/2/2e/Obama_signing_health_care-20100323.jpg/300px-Obama_signing_health_care-20100323.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Barack Obama signing the Patient Protection and Affordable Care Act at the White House (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Obama_signing_health_care-20100323.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
The study, released last week by the nonprofit research group, projects that out-of-pocket premiums for most individuals who buy health plans through new insurance exchanges will actually decline due to federal subsidies. The report surveyed insurance markets in 10 states and the nation as a whole to project costs once the impact of the <a class="zem_slink" href="http://en.wikipedia.org/wiki/Patient_Protection_and_Affordable_Care_Act" rel="wikipedia" target="_blank" title="Patient Protection and Affordable Care Act">Affordable Care Act</a> begins to be felt.</div>
<div style="font-size: 12px; line-height: 18px; margin-bottom: 0.8em; padding: 0px;">
“Rates for policies in the individual market are likely to vary from state to state, with some experiencing increases and some experiencing decreases in cost,” Christine Eibner, a Rand senior economist and the study’s lead author, said in a statement. “But our analysis found no widespread trend toward sharply higher prices in the individual market.”</div>
<div style="font-size: 12px; line-height: 18px; margin-bottom: 0.8em; padding: 0px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://en.wikipedia.org/wiki/File:PPACA_Premium_CRS.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Maximum Out-of-Pocket Premium Payments Under PPACA" border="0" class="zemanta-img-inserted" height="134" src="http://upload.wikimedia.org/wikipedia/en/thumb/3/31/PPACA_Premium_CRS.jpg/300px-PPACA_Premium_CRS.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Maximum Out-of-Pocket Premium Payments Under PPACA (Photo credit: <a href="http://en.wikipedia.org/wiki/File:PPACA_Premium_CRS.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
The web-based exchanges will begin offering health plans for sale in all 50 states plus the District of Columbia beginning October 1.</div>
<div style="font-size: 12px; line-height: 18px; margin-bottom: 0.8em; padding: 0px;">
About 7 million currently uninsured people are expected to gain coverage through the online marketplaces in 2014, according to the <a class="zem_slink" href="http://www.cbo.gov/" rel="homepage" target="_blank" title="Congressional Budget Office">Congressional Budget Office</a>. Many of the newly insured are expected to be people in poor health who were previously denied coverage, and there have been numerous claims that this would cause premiums to rise across the board. Earlier this year, the <a href="http://www.soa.org/News-and-Publications/Newsroom/Press-Releases/ACA-Driven-Changes/" style="color: #005498; font-weight: bold; text-decoration: none;">Society of Actuaries</a> predicted an average increase of 32 percent because of the ACA, which prompted outcries from the legislation’s numerous opponents.</div>
<div style="font-size: 12px; line-height: 18px; margin-bottom: 0.8em; padding: 0px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-right: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:U.S._healthcare_GDP.gif" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Spending on U.S. healthcare as a perc..." border="0" class="zemanta-img-inserted" height="76" src="http://upload.wikimedia.org/wikipedia/commons/thumb/9/91/U.S._healthcare_GDP.gif/300px-U.S._healthcare_GDP.gif" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Spending on U.S. healthcare as a percentage of gross domestic product (GDP). (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:U.S._healthcare_GDP.gif" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
The Rand study was conducted on behalf of the U.S. Health and Human Services Department. Looking at 10 representative states, Rand found that premiums in the individual market would likely rise in three of them (Minnesota, North Dakota and Ohio) and decline in two others (Louisiana and New Mexico). For the other five states (Florida, Kansas, Pennsylvania, South Carolina and Texas) and the nation as a whole, the Rand researchers concluded that “the law causes no change in premiums.”</div>
<div style="font-size: 12px; line-height: 18px; margin-bottom: 0.8em; padding: 0px;">
Where higher premiums do occur, government subsidies will be available to offset them. Rand’s analysis determined that more than 60 percent of people who purchase health plans through a state exchange will get a discount.</div>
<br />
<div id="posts" style="color: #333333; font-family: Arial, Helvetica, Verdana, sans-serif; margin: 0px; padding: 0px;">
<a href="http://www.blogger.com/blogger.g?blogID=4362634453160311564" name="read" style="background-color: white; color: #005498; font-size: 12px; font-weight: bold; line-height: 18px;"></a><span style="background-color: white; font-size: 12px; line-height: 18px;"></span><br />
<div id="comments" style="background-color: white; font-size: 12px; line-height: 18px; margin: 0px; padding: 0px;">
</div>
</div>
<br />
<div style="font-size: 12px; line-height: 18px; margin: 0px 0px 0.8em; padding: 0px;">
The study also found that as a result of the ACA, the number of U.S. uninsured will fall to 8.2 percent by 2016, compared with 16 percent at present.</div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.bloomberg.com/news/2013-08-29/premium-increases-under-obamacare-may-be-overstated.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/197977702_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.bloomberg.com/news/2013-08-29/premium-increases-under-obamacare-may-be-overstated.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Premium Increases Under Obamacare May Be Overstated</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://nssdavivi.wordpress.com/2013/09/02/obama-care-or-obama-fare/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/198573096_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://nssdavivi.wordpress.com/2013/09/02/obama-care-or-obama-fare/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Obama-care or Obama-fare?</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.thehartford.com/smallbizahead/smallbiz-newscred?ncid=404436ba32480b3eabfec24999eef89c" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/197359192_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.thehartford.com/smallbizahead/smallbiz-newscred?ncid=404436ba32480b3eabfec24999eef89c" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Employers weigh paying workers for good health</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=74526927-4620-43f6-9df7-086901e2c3c4" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-60044945003737726572013-08-30T11:14:00.001-05:002013-08-30T11:21:09.890-05:00New Strategies Around Strategy<div style="text-align: right;">
</div>
<a href="http://www.blogger.com/blogger.g?blogID=4362634453160311564" id="ctl13_commentControl_lbtnAuthor1" style="-webkit-text-stroke-width: 0px; background-color: #dbdbdb; color: #004073; font-family: Georgia, Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 18.203125px; orphans: auto; text-align: start; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px;"></a><br />
<div style="-webkit-text-stroke-width: 0px; color: black; font-family: Georgia, Arial; font-size: 1.077em; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 18.203125px; margin: 0px 0px 5px; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px;">
<span style="background-color: white;">The financial crisis turned traditional budgeting and <a class="zem_slink" href="http://en.wikipedia.org/wiki/Strategic_planning" rel="wikipedia" target="_blank" title="Strategic planning">strategic planning</a> on its head. Now companies allow for more flexibility in drafting their plans.</span></div>
<a href="http://www3.cfo.com/">CFO.com</a>: <br />
<span style="background-color: white;"><a href="http://www.blogger.com/blogger.g?blogID=4362634453160311564" id="ctl13_commentControl_lbtnAuthor1" style="color: #b22d25; font-family: Georgia, Arial; font-size: 13px; line-height: 18.203125px;">Russ Banham</a><span style="font-family: Georgia, Arial; font-size: 13px; line-height: 18.203125px;"> </span></span><br />
<br />
<div class="articleText" id="ctl13_commentControl_FWTextContainerArticleBody" style="font-family: Georgia, Arial; font-size: 13px; line-height: 18.203125px;">
<span class="articleTextSection" style="background-color: white;"></span><br />
<div class="Pa16" style="font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><div class="zemanta-img">
<a href="http://www.flickr.com/photos/8646749@N07/8287721148" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Strategic Planning Meeeting" border="0" class="zemanta-img-inserted" height="142" src="http://farm9.static.flickr.com/8059/8287721148_17ef2526d8_m.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></div>
</td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 240px;">Strategic Planning Meeeting (Photo credit: <a href="http://www.flickr.com/photos/8646749@N07/8287721148" target="_blank">michaelcardus</a>)</td></tr>
</tbody></table>
<span class="articleTextSection" style="background-color: white;">Along with the traditional annual budget, the five-year strategic plan is a staple of business, a routine exercise with scant thought given its continuing utility. Most every company performs the ritual, consuming countless hours of management time in the process, as if predicting the tortuous turns of markets, technologies, political machinations and consumer preferences were a simple affair.</span></div>
<span class="articleTextSection" style="background-color: white;">
</span>
<div class="Pa16" style="font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<span class="articleTextSection" style="background-color: white;">The financial crisis and subsequent recession turned these efforts on their head, rendering almost every five-year plan into worthless scraps of paper. ... “For most of us, the financial crisis and its aftermath was a truly dynamic event that we had not experienced in our lifetimes before,” explains Ken Esch, partner in <a class="zem_slink" href="http://maps.google.com/maps?ll=51.5079833333,-0.124663888889&spn=0.01,0.01&q=51.5079833333,-0.124663888889%20(PricewaterhouseCoopers)&t=h" rel="geolocation" target="_blank" title="PricewaterhouseCoopers">PwC</a>’s private company service practice.</span></div>
<span class="articleTextSection" style="background-color: white;">
<div class="Pa16" style="font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
“<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><div class="zemanta-img">
<a href="http://www.flickr.com/photos/8646749@N07/8287722476" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Strategic Planning Meeeting" border="0" class="zemanta-img-inserted" height="142" src="http://farm9.static.flickr.com/8200/8287722476_21eb8c04c4_m.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></div>
</td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 240px;">Strategic Planning Meeeting (Photo credit: <a href="http://www.flickr.com/photos/8646749@N07/8287722476" target="_blank">michaelcardus</a>)</td></tr>
</tbody></table>
We’d never seen such change happen with such velocity, and we’d never realized just how connected we were to the global economy,” he adds. “It tested our ability to plan for the future.”</div>
<div class="Pa16" style="font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
Yet, as Steve Player, North America program director for the Beyond Budgeting Roundtable, points out, despite the constant winds of change, all organizations still must develop and act upon a strategic plan. “You have to have some idea of where you’re going,” Player asserts. “You need to establish what markets you’re going to compete in, which products you will produce, which services you will provide, and then posit out your strategy for winning.”</div>
<div class="Pa16" style="font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
Both planning experts agree that the key to planning is keeping the plan flexible, nimbly adjusting it based on dynamic forecasts that suggest changes ahead, if not already afoot. As Player puts it, “You plan for what you think will happen, but then constantly subject the plan to scenario tests based on your changing assumptions.”</div>
<div class="Pa16" style="font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
These assumptions might be the price of a barrel of oil, the risk of an extreme weather event, the impact<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-right: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><div class="zemanta-img">
<a href="http://commons.wikipedia.org/wiki/File:Habitat_Overview.png" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Created for the WMF strategic plannin..." border="0" class="zemanta-img-inserted" height="179" src="http://upload.wikimedia.org/wikipedia/commons/thumb/2/26/Habitat_Overview.png/300px-Habitat_Overview.png" style="border: none; font-size: 0.8em;" width="320" /></a></div>
</td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Created for the WMF strategic planning process (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Habitat_Overview.png" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
of potential currency fluctuations or the shifting economic conditions in Italy. In each case, a <a class="zem_slink" href="http://en.wikipedia.org/wiki/Contingency_plan" rel="wikipedia" target="_blank" title="Contingency plan">contingency plan</a> is developed and kept at hand—just in case. The organizations that best assess these possibilities and expeditiously address them arguably are in a better competitive position than their peers.</div>
<div class="Pa16" style="font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
Not all companies are taking such actions, however. “Businesses seem to be diverging on their approach to planning,” Esch says. “One camp continues to be uncertain as to what they ought to do in light of all these events occurring around the globe, and how they will impact their companies. They seem to be afraid to make commitments and big bets.”</div>
<div class="Pa16" style="font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
The other camp has accepted that these dynamic events and changing times are the new normal. “They’re constantly figuring out how they’re going to operate in this new environment, placing bets on a different market or new product,” he adds. “Their planning is agile.”</div>
<div class="Pa16" style="font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
As always, information is vital to the planning exercise. In many cases, such business intelligence is not hard to come by. “Companies that have been around for awhile already have a repository of historical data indicating what happened to the business the last time the economic cycle shifted or some unforeseen event occurred,” Esch notes. “Perhaps one part of the business suffered, but another part performed even better. That tells you something about where to allocate resources.”</div>
<div style="font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
Like Player, Esch does not advocate gutting the strategic five-year plan. Rather, he agrees that companies must write these plans not in ink, but in pencil. Keep an eraser handy.</div>
<div>
<br /></div>
</span></div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=467f2407-e40c-462c-9c04-2fd7ee18aec2" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-81657758215218674202013-08-28T11:23:00.001-05:002013-08-28T12:12:47.711-05:00Obama Budget Changes to IRA, 401(k) and Other Retirement Rules<a href="http://www.financial-planning.com/">Financial Planning</a>: <br />
<br />
<div class="left col1" style="background-color: white; color: #333333; float: left; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px; margin-bottom: 0px; margin-right: 5px !important;">
<img src="http://cdn.financial-planning.com/media/newspics/slottnew.jpg" width="51px" /></div>
<div class="left col2" style="background-color: white; color: #333333; float: left; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px; margin-bottom: 0px; margin-left: 10px; margin-right: 10px;">
<div class="info">
<div class="clearfix">
<div class="article-text-holder left" style="float: left; margin-bottom: 0px; margin-right: 10px;">
<div class="author" style="font-size: 10px; text-transform: uppercase;">
BY: <a class="name" href="http://www.financial-planning.com/article_listings/ed-slott-186.html" style="color: #0a5485; text-decoration: none;">ED SLOTT</a></div>
<div class="author" style="font-size: 10px; text-transform: uppercase;">
</div>
<div class="datetime" style="font-size: 10px; text-transform: uppercase;">
MONDAY, AUGUST 19, 2013</div>
<div class="datetime" style="font-size: 10px; text-transform: uppercase;">
<br /></div>
<div class="datetime" style="font-size: 10px; text-transform: uppercase;">
<br /></div>
</div>
</div>
</div>
</div>
<br />
<span style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 16px; line-height: 24px;"><br /></span>
<span style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 16px; line-height: 24px;"><br /></span>
<span style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 16px; line-height: 24px;"></span><br /><span style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 16px; line-height: 24px;"></span>
<span style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 16px; line-height: 24px;">When <a class="zem_slink" href="http://www.barackobama.com/" rel="homepage" target="_blank" title="Barack Obama">President Obama</a> unveiled his budget for the upcoming fiscal year, which begins on Oct. 1, it represented a wish list.</span><br />
<div id="article-teaser" style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 16px; line-height: 24px; margin-bottom: 10px; margin-top: 10px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Squirrel_2pc_and_40-20_v04.11.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Retirement savings for various period..." border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/2/29/Squirrel_2pc_and_40-20_v04.11.jpg/300px-Squirrel_2pc_and_40-20_v04.11.jpg" style="border: none; font-size: 0.8em;" width="154" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Retirement savings for various periods with squirrel and nut analogy (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Squirrel_2pc_and_40-20_v04.11.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<span style="font-size: 12px; line-height: 20px;">But advisors should pay close attention to the eventual compromise because there were a number of significant proposals related to <a class="zem_slink" href="http://en.wikipedia.org/wiki/Retirement_savings_account" rel="wikipedia" target="_blank" title="Retirement savings account">retirement savings</a> accounts.</span></div>
<div id="article-teaser" style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 16px; line-height: 24px; margin-bottom: 10px; margin-top: 10px;">
<span style="font-size: 12px; line-height: 20px;">Here is an overview of six notable proposals and whether your clients would be winners or losers.</span></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>1. MANDATORY <a class="zem_slink" href="http://en.wikipedia.org/wiki/Individual_retirement_account" rel="wikipedia" target="_blank" title="Individual retirement account">IRAs</a></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
Under the administration’s proposal, employers that have more than 10 workers and have been in business for at least two years would face a new requirement to set up and provide automatic enrollment in IRAs for their employees. Employees would contribute to the IRAs through payroll deductions. In addition, they would be able to elect how much of their salary they wish to contribute to their IRAs (up to the annual contribution limit), or they could elect to opt out.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<br /></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
In the absence of any election, 3% of an employee’s salary would be contributed to the IRA.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The argument:</strong> For nearly 15 years, Congress, the <a class="zem_slink" href="http://maps.google.com/maps?ll=38.8983333333,-77.0341666667&spn=0.01,0.01&q=38.8983333333,-77.0341666667%20(United%20States%20Department%20of%20the%20Treasury)&t=h" rel="geolocation" target="_blank" title="United States Department of the Treasury">Treasury Department</a> and the <a class="zem_slink" href="http://www.irs.gov/" rel="homepage" target="_blank" title="Internal Revenue Service">IRS</a> have been taking steps to increase Americans’ retirement saving contributions by making it easier for employers to establish auto-enrollment in company 401(k) plans. But many small businesses choose not to adopt a retirement plan because of the costs or the burden of complying with regulations. Many small employers also do not take low-cost steps to make retirement savings easier for employees.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong></strong><br /><strong></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.flickr.com/photos/29994761@N03/2806960744" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="A Millionaire by Retirement" border="0" class="zemanta-img-inserted" height="185" src="http://farm4.static.flickr.com/3021/2806960744_2142d89bda_m.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center;">A Millionaire by Retirement (Photo credit: <a href="http://www.flickr.com/photos/29994761@N03/2806960744" target="_blank">mortgagepaymentplan</a>)</td></tr>
</tbody></table>
<strong>The winners: </strong>Too few Americans actively save for retirement, and even fewer save appropriate amounts. Although there is some disagreement, numerous studies have shown that automatic enrollment tends to increase participation in retirement savings. The proposal also contains a number of tax credits that small businesses could claim for helping to facilitate employees’ retirement savings.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The losers: </strong>Many small businesses say that they are already overburdened with various compliance requirements and that any new rules or regulations would be unwelcome.</div>
<div>
<br /></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>2. EMPTYING INHERITED IRAs</strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
Most beneficiaries of IRAs and other retirement accounts would be required to empty an inherited retirement account by the end of the fifth year after the year of the original owner’s death, according to the administration proposal. (Presumably, required minimum distribution rules would apply, meaning the remaining balance would be subject to a 50% penalty -- like all other missed required minimum distributions.)</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<br /></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-right: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Max_S_Baucus.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Max Baucus, U.S. Senator from Montana." border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/9/9f/Max_S_Baucus.jpg/300px-Max_S_Baucus.jpg" style="border: none; font-size: 0.8em;" width="142" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Max Baucus, U.S. Senator from Montana. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Max_S_Baucus.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
This proposal is a potential game changer for many clients’ estate plans. But this is not the first time the idea has been floated. In fact, since <a class="zem_slink" href="http://baucus.senate.gov/" rel="homepage" target="_blank" title="Max Baucus">Sen. Max Baucus</a>, a Democrat from Montana, initially introduced the idea several years ago, it has been revisted a few times.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The argument:</strong> The Green Book, released by the Treasury Department to explain the proposals in the president’s budget, says the reason for this provision is that “the <a class="zem_slink" href="http://en.wikipedia.org/wiki/Internal_Revenue_Code" rel="wikipedia" target="_blank" title="Internal Revenue Code">Internal Revenue Code</a> gives tax preferences for retirement savings accounts primarily to provide retirement security for individuals and their spouses. The preferences were not created with the intent of providing tax preferences to the non-spouse heirs.”</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<br /></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
This point has been brought up a number of times when lawmakers are looking for revenue sources, which is happening again now. Some in Congress have often let it be known that IRAs were never intended to exist beyond the lifetime of the retiree who made the contributions. Instead, they argue, they were created to provide a source of retirement income, not a tax-favored inheritance to last another lifetime.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The winners: </strong>The required minimum distribution rules for non-spouse beneficiaries can be complex. Requiring non-spouse beneficiaries to withdraw inherited retirement account funds within five years would simplify the rules. The proposal exempts certain beneficiaries, including those who are disabled and minor children.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The losers: </strong>If this proposal is adopted, it would effectively end the “stretch IRA” strategy for most non-spouse beneficiaries. Beneficiaries would face more severe tax consequences upon inheriting retirement accounts, and the value of these accounts as potential estate planning vehicles would be diminished. This would also significantly reduce the value of Roth conversions as an estate planning strategy, particularly for older clients.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>3. SAVINGS CAP</strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
New contributions to tax-favored IRAs and 401(k)s would be prohibited once clients exceed an established cap, under the president’s proposal. This cap would be determined by calculating the lump-sum payment that would be required to produce a joint and 100% survivor annuity of $205,000 a year beginning when clients reach age 62. (This formula would initially set the cap at $3.4 million.)</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<br /></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
Clients with cumulative retirement accounts in excess of this amount would be prohibited from contributing new dollars to retirement accounts on a tax-favored basis, although accounts could still grow as a result of earnings. The cap would be increased for inflation.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The argument: </strong>To increase tax revenue, the White House wants to use tax policy to encourage greater retirement savings where needed, but then phase out the benefit for the especially wealthy. “The current law limitations on retirement contributions and benefits for each plan in which a taxpayer may participate do not adequately limit the extent to which a taxpayer can accumulate amounts in a tax-favored arrangement through the use of multiple plans,” the Green Book says. “Such accumulations can be considerably in excess of amounts needed to fund reasonable levels of consumption</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
in retirement.”</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The winners: </strong>Not many. In fact, at $3.4 million, this provision would impact only a very small percentage of retirement savers. But if interest rates increase, the cap could go much lower, since annuities paying $205,000 would cost less. This could affect many more retirees.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The losers: </strong>While $205,000 is nothing to scoff at, many clients will require substantially more annual income in retirement to maintain their desired standard of living -- especially after taxes are factored in. Such clients will need to look for alternative ways to shelter assets from taxes.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>4. A 28% MAXIMUM TAX BENEFIT</strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
Another proposed change to tax benefits: The maximum tax deduction for making contributions to defined contribution retirement plans would be limited to 28%. As a result, certain high-income taxpayers making contributions to retirement accounts would not receive a full tax deduction for amounts contributed or deferred.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The argument:</strong> According to the Green Book, “limiting the value of tax expenditures, including itemized deductions, certain exclusions in income subject to tax, and certain deductions in the computation of adjusted gross income would reduce the benefit that high-income taxpayers receive from those tax expenditures and help close the gap between the value of these tax expenditures for high-income Americans and the value for middle-class Americans.”</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The winners: </strong>For the country as a whole, this provision would help raise revenue. For individual taxpayers who are not in a federal income tax bracket higher than 28%, this provision would not increase their tax liabilities.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:US-InternalRevenueService-Seal.svg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Seal of the United States Internal Revenue Ser..." border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/8/8b/US-InternalRevenueService-Seal.svg/300px-US-InternalRevenueService-Seal.svg.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Seal of the United States Internal Revenue Service. The design is the same as the Treasury seal with an IRS inscription. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:US-InternalRevenueService-Seal.svg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<strong>The losers:</strong> High-income clients would no longer receive a full deduction for amounts contributed or deferred to a retirement account. For instance: If clients who have $500,000 of taxable income currently defer $10,000 into a 401(k), they do not pay any income tax on that $10,000. Without that tax deferral, the income would be taxed at 39.6% (currently the highest federal income tax rate). But if this proposal were to become effective, that $10,000 would effectively be taxed at 11.6% (39.6% minus 28%), since the maximum tax benefit that a client could receive would be limited to 28%. That would equate to an additional tax bill of more than $1,000.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>5. SOME RMD ELIMINATION</strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
Clients with combined savings across all retirement accounts of $75,000 or less would be exempt from required minimum distributions.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The argument:</strong> “Under current law,” the Green Book says, “millions of senior citizens with only modest tax-favored retirement benefits to fall back on during retirement also must calculate the annual amount of their minimum required distributions, even though they are highly unlikely to try to defer withdrawal and taxation of these benefits for estate planning purposes. In addition to simplifying tax compliance for these individuals, the proposal permits them greater flexibility in determining when and how rapidly to draw down their limited retirement savings.”</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The winners:</strong> The proposal would decrease the compliance burden and increase simplicity for Americans with smaller retirement account balances. These individuals often have less savings on the whole and need to withdraw money from their retirement accounts anyway to meet expenses. In addition, those with low account balances often do not have access to the same level of financial expertise as those with larger account balances.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The losers:</strong> Not many. Indeed, it’s hard to find something to complain about. This provision would eliminate required minimum distributions for nearly 50% of IRA owners.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>6. NON-SPOUSE ROLLOVERS</strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
Non-spouse beneficiaries would be allowed to move inherited retirement savings from one inherited retirement account to another through a 60-day rollover period -- similar to the way they can currently move their own retirement savings.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The argument:</strong> The goal is to close the difference in treatment of spouse and non-spouse beneficiaries. According to the Green Book, “differences in rollover eligibility between surviving non-spouse beneficiaries and surviving spouse beneficiaries (and living participants) serve little purpose and generate confusion among plan and IRA administrators and beneficiaries.”</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The winners:</strong> Unifying the rollover rules for retirement account owners and beneficiaries would greatly simplify this aspect of retirement accounts and reduce the number of irrevocable and costly mistakes frequently made by beneficiaries.</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong><br /></strong></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<strong>The losers:</strong> None. Of course, if most beneficiaries are required to empty the inherited account in five years (as required under the second proposal), this provision would be far less beneficial than it would be under current law. FP</div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<em><br /></em></div>
<div style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 12px; line-height: 20px;">
<em>Ed Slott, a CPA in Rockville Centre, N.Y., is a Financial Planning contributing writer and an IRA distribution expert, professional speaker and author of many books on IRAs.</em></div>
<br />
<br />
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.ally.com/ira/what-is-an-ira-investing-for-your-future/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_61_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.ally.com/ira/what-is-an-ira-investing-for-your-future/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">What is an IRA?</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="https://www.openforum.com/articles/retirement-savings-small-business-owners/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/197408977_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="https://www.openforum.com/articles/retirement-savings-small-business-owners/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">How Obama's Proposed Retirement Savings Cap Could Hurt Small-Business Owners</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.sfgate.com/business/article/Time-might-be-right-for-mandatory-savings-accounts-4762715.php" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/197195703_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.sfgate.com/business/article/Time-might-be-right-for-mandatory-savings-accounts-4762715.php" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Time might be right for mandatory savings accounts</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.dailyfinance.com/2013/08/28/3-retirement-planning-tactics-to-adopt-before-you-hit-50/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/197554594_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.dailyfinance.com/2013/08/28/3-retirement-planning-tactics-to-adopt-before-you-hit-50/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">3 Retirement Planning Tactics to Adopt Before You Hit 50</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=37aa5042-9e9b-4bda-8d80-c056c7592884" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-28318466071419870532013-08-27T11:42:00.001-05:002013-08-27T12:05:40.316-05:00The Secret to a Successful Divestiture<h2 style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-bottom: 9px; margin-top: 0px;">
When you are selling part of your company, don’t just offer buyers a potential asset; give them the capabilities to gain value from it.</h2>
<a href="http://www.strategy-business.com/">strategy+business magazine</a>: <br />
<br />
<div id="byline" style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 10px; line-height: 19px; margin-bottom: 10px;">
<a href="http://www.strategy-business.com/article/00208?pg=all#authors" style="color: #333333;">by Eduardo Alvarez, Steven Waller, and Ahmad Filsoof</a></div>
<div class="normal" id="content" style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 12px; line-height: 19px;">
<div class="sidebar-220" style="color: #999999; float: right; font-family: Arial, Helvetica, sans-serif; font-size: 10px; line-height: 12px; margin-left: 10px; padding-top: 6px; width: 220px;">
<div style="margin-bottom: 8px;">
<img border="0" height="244" src="http://www.strategy-business.com/media/image/00208_thumb2_220x244.gif" width="220" /></div>
<div style="margin-bottom: 8px;">
Illustration by Lars Leetaru</div>
</div>
<div style="margin-bottom: 12px;">
... Business strategy is always intertwined with capabilities. A capability is the combination of processes, tools, knowledge, skills, and organizational design needed to deliver a specified outcome. Thus, although most M&A departments spend much more time thinking about the sale price, attention to capabilities can make a major difference in a deal’s outcome.</div>
<div style="margin-bottom: 12px;">
For example, when you sell major assets, you can often maximize the deal price by identifying buyers with capabilities systems of their own that are a good fit. ... They are often willing to pay big premiums to complete the deal—and with good reason. Deals that leverage a buyer’s existing capabilities typically fare well (<em>see “<a href="http://www.strategy-business.com/article/12105" style="color: #3366cc;">The Capabilities Premium in M&A</a>,” by Gerald Adolph, Cesare Mainardi, and J. Neely,</em> s+b<em>, Spring 2012</em>).</div>
<div style="margin-bottom: 12px;">
But maximizing price is only one of four major goals in a divestiture. The others are minimizing any disruptions to your retained businesses, keeping capabilities away from particularly strong competitors (which might mean turning down a deal that is favorable in other respects), and handing the buyer something that can be operated successfully from Day One. Your motive is not altruistic; in M&A, it is generally in a seller’s interest to minimize the length of entanglement, and to establish a reputation as a good partner for making deals.</div>
<div style="margin-bottom: 12px;">
... The leaders of any company divesting assets must deal smartly with capabilities issues or risk having the deal fall short.</div>
<h3 style="font-size: 13px; margin-bottom: 0px;">
Differentiating <a class="zem_slink" href="http://en.wikipedia.org/wiki/Divestment" rel="wikipedia" target="_blank" title="Divestment">Divestiture</a></h3>
<div style="margin-bottom: 12px;">
As a seller, you should begin your divestiture process by identifying the desired end state for the important capabilities involved: those you will still need after the deal is done, those you won’t need, and most importantly, those that both you and the buyer will need (<em>see Exhibit 1</em>). In each group, some capabilities are “table stakes”—every company in the industry needs them—whereas others are truly differentiating. The latter can distinguish your company in the market and give you an advantage over competitors. These capabilities require the most attention during a divestment, and you should seek to keep them intact while enabling the buyer to benefit from the deal in every other way (<em>see Exhibit 2</em>).</div>
<div class="sidebar-468" style="clear: both; color: #999999; float: right; font-family: Arial, Helvetica, sans-serif; font-size: 10px; line-height: 12px; margin-left: auto; margin-right: auto; padding-top: 6px; width: 468px;">
<div style="margin-bottom: 8px;">
<img border="0" height="405" src="http://www.strategy-business.com/media/image/00208_ex01.gif" width="468" /></div>
</div>
<div class="sidebar-468" style="clear: both; color: #999999; float: right; font-family: Arial, Helvetica, sans-serif; font-size: 10px; line-height: 12px; margin-left: auto; margin-right: auto; padding-top: 6px; width: 468px;">
<div style="margin-bottom: 8px;">
<a class="_awcLB840a cboxElement" href="http://www.strategy-business.com/media/image/00208_ex02b.gif" style="color: #3366cc;" target="_blank"><img border="0" height="288" src="http://www.strategy-business.com/media/image/00208_ex02s.gif" width="468" /></a></div>
</div>
<div style="margin-bottom: 12px;">
In practice, most sellers, facing the pressure of time, end up having to choose which capabilities to focus on. Your goal is to keep the process moving without sacrificing the quality of your decision making or jeopardizing the outcome.</div>
<div style="margin-bottom: 12px;">
There are certainly divestitures in which the buyer is known from the beginning, but it is not uncommon for a company to decide to divest something just because it no longer fits strategically, announce this plan publicly, and then search for a buyer. In these cases, major portions of a divestment plan must be executed before a buyer has been identified, and certainly before the transaction has taken place. This adds to the challenge.</div>
<div style="margin-bottom: 12px;">
There are also partial divestitures ..., in which only some assets of a given business or parts of an asset are sold. A partial divestiture is often more complicated from the standpoint of capabilities, because of the seller’s need to hold on to some people, processes, and technologies that it could let go of if it were selling an entire business or product line.</div>
<div style="margin-bottom: 12px;">
To make the process of divestiture more manageable, we recommend five steps. Each step gains its power from how it builds on previous steps, helping sellers during the critical period—usually lasting up to 18 months—when they are readying assets for sale. Note that these steps focus only on the analyses and <a class="zem_slink" href="http://en.wikipedia.org/wiki/Business_process" rel="wikipedia" target="_blank" title="Business process">business process</a> changes that are relevant to managing the capabilities you are divesting. ...</div>
<h3 style="font-size: 13px; margin-bottom: 0px;">
Step 1: Capability Scoping</h3>
<div style="margin-bottom: 12px;">
In the first step, you set the overall strategy for the divestment—including the assets you want to sell, when you want to sell them, and to whom. This takes place through an exercise called “capability scoping,” in which you take stock of the most important capabilities associated with the assets you are putting on the block. Often what’s up for sale is not a stand-alone business unit but ... a product, service, or asset that sits within that business unit. It likely draws on capabilities that are centralized within the company or that are used by other parts of the business unit (and therefore can’t be offered as part of the deal). This step usually precedes the identification of a buyer and should be done before any transaction-related activity, such as planning an auction. ...</div>
<div style="margin-bottom: 12px;">
Often, the seller realizes there isn't time to address every capability on its list, and it must set some priorities. ...</div>
<div style="margin-bottom: 12px;">
Undoubtedly there is a set of analogous activities at your company, drawing on people and technologies that are dispersed throughout the organization. A scoping exercise in and of itself isn't a plan for divesting assets—it doesn't answer the question of how to ensure the integrity of differentiating capabilities. But it does lead to a hypothesis of what will have to be accounted for, and either added to or carved out of an asset, in the months leading up to a divestiture.</div>
<h3 style="font-size: 13px; margin-bottom: 0px;">
Step 2: Baseline Analysis</h3>
<div style="margin-bottom: 12px;">
This step involves understanding the components of key capabilities and how they come together to enable products and services to be successful. The idea is to break down those activities into their constituent parts—<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-right: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><div class="zemanta-img">
<a href="http://commons.wikipedia.org/wiki/File:Business_Process_Reengineering_Cycle.svg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Business Process Reengineering Cycle" border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/a/a2/Business_Process_Reengineering_Cycle.svg/267px-Business_Process_Reengineering_Cycle.svg.png" style="border: none; font-size: 0.8em;" width="189" /></a></div>
</td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 267px;">English: Business Process Reengineering Cycle (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Business_Process_Reengineering_Cycle.svg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
what the activities consist of, who performs them, where in the company they are performed, how long they take, what technologies make them possible, and what problems are associated with them.</div>
<div style="margin-bottom: 12px;">
The baseline analysis identifies exactly what you can let go of and what you need to keep—and illuminates where a new owner might be left with a gap.</div>
<div style="margin-bottom: 12px;">
Not all buyers have gaps. Some may have capabilities systems that are a better fit for the assets you’re selling than your own capabilities are. In other cases, the ability of your activities to fill the buyer’s gaps becomes a point of negotiation in the deal—factoring into the price, the time to completion, or the transition services that you must provide. If no buyer has yet been identified, this is your chance to formulate a clear picture of the value that your divested assets might hold for someone else.</div>
<div style="margin-bottom: 12px;">
Completing a baseline analysis of your capabilities is more difficult than it might seem. The problem is that most people in a company—even, and sometimes especially, those with special talents or important functional roles—have a narrow view of what underpins a business’s success. The salespeople will describe the differentiating capabilities in one way, the marketing people in another, and the product development people in a third. From up close, and amid the competing perspectives, it can be hard to tell which activities truly make a difference. You may need to weigh all these inputs dispassionately—and pull back to get a wider perspective.</div>
<h3 style="font-size: 13px; margin-bottom: 0px;">
Step 3: Option Analysis</h3>
<div style="margin-bottom: 12px;">
In this step, having identified one or more potential buyers, you look closely at the buyer’s capabilities needs and how your assets can help fill those gaps. This enables you to maximize the value of the deal. ...</div>
<div style="margin-bottom: 12px;">
The information uncovered during this step may prompt you to revisit a previous step. ...</div>
<h3 style="font-size: 13px; margin-bottom: 0px;">
Step 4: Transition Planning</h3>
<div style="margin-bottom: 12px;">
Having identified the gaps and decided how to fill them, you as the seller now must start carving out the asset and making sure it has the capabilities it will need. This involves the creation of detailed project plans—perhaps one for each of the major capabilities involved—and of work teams.</div>
<div style="margin-bottom: 12px;">
Where to begin? At this stage, there is still no guarantee of who the buyer will be. Focus on activities that need to be conducted for any buyer. This forces you to tend to the <em>known</em> things first, as opposed to doing what comes more naturally and tending to the <em>biggest</em> things first. This approach can speed a sale once a buyer has been identified—and even if you don’t sell the asset, in the end, you won’t regret the planning effort. ...</div>
<h3 style="font-size: 13px; margin-bottom: 0px;">
Step 5: Buyer Engagement</h3>
<div style="margin-bottom: 12px;">
Once you have a definite buyer and a signed contract, you can flip the switch on all the plans you have been making in Steps 1 through 4. Begin by sharing your thinking with the buyer, including which capabilities you see as most important and what your plans are for transferring them. Describe how you will deliver a fully functioning business to the buyer. The buyer has its own market strategy, quite possibly different from yours, and may have a different view of which capabilities are important. These differences sometimes lead the buyer to ask for something you don’t expect. That’s another reason not to start on this stage prematurely: That early work might have to be discarded. ...</div>
<h3 style="font-size: 13px; margin-bottom: 0px;">
Preparation, Skills, and Pride</h3>
<div style="margin-bottom: 12px;">
Divestitures can be some of your company’s most complex transactions. They require strategic thinking, a massive amount of contingency planning, and—once a certain point is reached—the simultaneous management of multiple work streams and projects. You will need to be flexible and ready for the unexpected. This checklist can help you get ready for the process:</div>
<ol>
<li>Do you have a clear sense of what you’d like to sell, what you think it’s worth, and what capabilities might be involved?</li>
<li>Do you know when you’d like to complete a transaction, and do you have a rough sense of the time line leading up to that?</li>
<li>Do you have a list—if not by name, then by type of company—of who might be interested in your assets?</li>
<li>Do you have a clear sense of how the sale will affect capabilities you’ll need for your retained businesses or assets?</li>
<li>Do you have a dedicated transaction team, and if so, does the team have a clear set of priorities?</li>
<li>Do you have measures in place to track your progress? Do you have clear measurements for the success or failure of the transaction?</li>
</ol>
<div style="margin-bottom: 12px;">
The skills you develop during this process aren't relevant just to divestitures. They can also be used to reduce risk; create value; and improve the outcomes of acquisitions, spin-offs, and portfolio restructurings. Your work on divestitures can span organizational boundaries, geographies, business units, and functions, and thus help you develop the structures and communications links you need for other complex initiatives. The focus on capabilities involves accounting for factors that are often overlooked. It can help you avoid the tunnel vision that often accompanies a singular focus on financial matters during major transactions—and that can keep you from seeing the broader strategic impact of your decisions in general.</div>
<div style="margin-bottom: 12px;">
Many companies pride themselves on their ability to use acquisitions to drive inorganic growth. It’s far more rare to find a company that prides itself on the way it divests a business or asset. That’s understandable; by their nature, divestitures focus on businesses or assets that once seemed promising but no longer fit with where the seller is heading. It isn't surprising that there would be a mind-set of “the sooner, the better” and a narrow focus on the price. If you use the filter of capabilities, the divestiture might take a little longer, but it can leave your company better off in the ways that matter most. <img alt="" border="0" class="content1" height="12" name="_AWCIimage::27597696::27597709" src="http://www.strategy-business.com/media/image/end_of_story.gif" width="32" /></div>
<div style="margin-bottom: 12px;">
Reprint No. 00208</div>
<div class="profiles" style="color: #999999; font-family: Arial, Helvetica, sans-serif; font-size: 10px; line-height: normal;">
<a href="http://www.blogger.com/blogger.g?blogID=4362634453160311564" name="authors" style="color: #3366cc;"></a><br />
<h2 style="color: #333333; font-size: 11px; margin-bottom: 12px; margin-top: 0px; text-transform: uppercase;">
AUTHOR PROFILES:</h2>
<ul style="list-style-type: none; margin: 0px 0px 20px; padding: 0px;">
<li style="clear: both; margin-bottom: 14px;"><strong><a href="mailto:eduardo.alvarez@booz.com" style="color: #3366cc; text-decoration: none;">Eduardo Alvarez</a></strong> is a Booz & Company partner based in Chicago. He leads the firm’s global operations practice and is an expert in business process transformation and technology-enabled transformation.</li>
<li style="clear: both; margin-bottom: 14px;"><strong><a href="mailto:steven.waller@booz.com" style="color: #3366cc; text-decoration: none;">Steven Waller</a> </strong>is a Booz & Company principal based in Chicago. He specializes in technology strategy and the development of new operating models for energy and financial-services companies.</li>
<li style="clear: both; margin-bottom: 14px;"><strong><a href="mailto:ahmad.filsoof@booz.com" style="color: #3366cc; text-decoration: none;">Ahmad Filsoof</a></strong> is a Booz & Company senior associate based in Chicago. His focus is on operations, business process transformation, and technology-enabled transformation in the energy industry.</li>
<li style="clear: both; margin-bottom: 14px;">Also contributing to this article was consulting writer Robert Hertzberg.</li>
</ul>
</div>
</div>
<br />
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="https://www.axialmarket.com/blog/2013/02/search-funds-right-for-your-buyer-list/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/147036305_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="https://www.axialmarket.com/blog/2013/02/search-funds-right-for-your-buyer-list/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Are Search Funds Right for your Buyer List?</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.savills.co.uk/_news/newsitem.aspx?intSitePageId=0&intNewsSitePageId=145827-0&intNewsMonth=8&intNewsYear=2013" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/191307830_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.savills.co.uk/_news/newsitem.aspx?intSitePageId=0&intNewsSitePageId=145827-0&intNewsMonth=8&intNewsYear=2013" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Turnover in German investment market set to outperform 2012, says Savills</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.concurringopinions.com/archives/2013/07/berkshire-hathaways-unique-permanence.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/189103162_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.concurringopinions.com/archives/2013/07/berkshire-hathaways-unique-permanence.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Berkshire Hathaway's Unique Permanence</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=ced6a7ee-2de5-4400-b747-f716c8969635" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-63248510678084882182013-08-08T11:26:00.001-05:002013-08-08T11:34:18.868-05:00Persuading Consumers to Sign Long-Term Contracts<h2 style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-bottom: 9px; margin-top: 0px;">
Companies that focus on driving customer usage and spending see their conversion rates increase.</h2>
<a href="http://www.strategy-business.com/article/re00243?pg=all">strategy+business magazine</a>: <br />
<br />
<div id="byline" style="background-color: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 10px; line-height: 19px; margin-bottom: 10px;">
<a href="http://www.strategy-business.com/article/re00243?pg=all#authors" style="color: #333333;">by Matt Palmquist</a></div>
<div class="normal" id="content" style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 12px; line-height: 19px;">
<div style="margin-bottom: 12px;">
<strong>Title: </strong><a href="http://jsr.sagepub.com/content/16/2/138.abstract" style="color: #3366cc;" target="_blank">Strengthening Customer Relationships: What Factors Influence Customers to Migrate to Contracts?</a> (fee or subscription required)</div>
<div style="margin-bottom: 12px;">
<strong>Authors:</strong> Yolanda Polo and F. Javier Sese (both <a class="zem_slink" href="http://www.unizar.es/" rel="homepage" target="_blank" title="University of Zaragoza">University of Zaragoza</a>)</div>
<div style="margin-bottom: 12px;">
<strong>Publisher: </strong><em><a class="zem_slink" href="http://www.sagepub.com/journalsProdDesc.nav?prodId=Journal200746" rel="homepage" target="_blank" title="Journal of Service Research">Journal of Service Research</a></em>, vol. 16, no. 2</div>
<div style="margin-bottom: 12px;">
<strong>Date Published:</strong> May 2013</div>
<div style="margin-bottom: 12px;">
Although contracts have become widely used in recent years, pay-as-you-go consumers still account for a large portion of the customer base in many industries and businesses, including legal services, media, telecommunications, repair and maintenance, and entertainment or professional sports. A 2011 study of U.K. and German mobile phone firms, for example, found that more than half of their customers had a prepaid plan and were not tied to a contract.</div>
<div style="margin-bottom: 12px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Business_Feedback_Loop.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: A business ideally is continually see..." border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/0/06/Business_Feedback_Loop.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: A business ideally is continually seeking feedback from customers: are the products helpful? are their needs being met? Constructive criticism helps marketers make adjustments to their products and services to adapt to the changing needs of their customers. Source of diagram: here (see public domain declaration at top). Questions: write me at my Wikipedia talk page or email me at thomaswrightsulcer@yahoo.com (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Business_Feedback_Loop.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
That’s a problem for companies, because there’s no question that subscribers are more profitable. On average, they generate 4.5 times more revenue than noncontract customers, according to the study. It stands to reason, then, that a small uptick in the number of customers who sign on the dotted line would lead to a significant increase in revenue for companies—including those in business-to-business contexts such as tech support or consulting. However, despite contracts’ clear value to firms, surprisingly little research has been done on how managers can strengthen their companies’ ties with customers to encourage them to sign long-term deals.</div>
<div style="margin-bottom: 12px;">
This paper aims to fill the gap by identifying the key factors that lie behind customers’ decisions to transition from pay-as-you-go to contract status. Noting that their findings are applicable to several industries, the authors based their study on cell phone users, in part because of the massive size of the mobile market. ... The authors were also drawn to this sector because the contract problem is particularly vexing for telecom operators, who shoulder huge operational costs and face stiff competition for customers, which makes the negative impact of weak and short-term client relationships all the more damaging to their bottom line.</div>
<div style="margin-bottom: 12px;">
The authors tracked nearly 300 customers, all of whom began as pay-as-you-go clients, of a major mobile communications supplier for four years, gathering user and account data on a monthly basis. About 22 percent of the customers moved to a contract and 78 percent stuck with their pay-as-you-go phone cards, which shows how difficult it can be for firms to secure long-term commitments.</div>
<div style="margin-bottom: 12px;">
In a series of analyses, the authors found that the first key factor in the decision by customers to make the switch<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:SCHEMATIC_-_The_Evolution_of_Marketing_w_CR.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: A schematic illustrating the evolving..." border="0" class="zemanta-img-inserted" height="112" src="http://upload.wikimedia.org/wikipedia/commons/thumb/8/85/SCHEMATIC_-_The_Evolution_of_Marketing_w_CR.jpg/300px-SCHEMATIC_-_The_Evolution_of_Marketing_w_CR.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: A schematic illustrating the evolving relationship between the firm and its customers via the marketing orientation, which includes the introduction of a new marketing concept, customer enrichment marketing. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:SCHEMATIC_-_The_Evolution_of_Marketing_w_CR.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
was whether they exceeded their expected usage: Did their usage regularly exceed the amount of credit they loaded on their cards, and, if so, how big was the gap?</div>
<div style="margin-bottom: 12px;">
The clear implication for telecom companies, and other types of service providers, is that they can increase the likelihood that customers will sign contracts by getting them to use their service more during the pay-as-you-go period.</div>
<div style="margin-bottom: 12px;">
In the mobile phone market, for example, companies should encourage their pay-as-you-go customers to install social media applications, online games, or other time-consuming programs that would increase their mobile service use. In other industries, offering discounts, promoting free trials, and bundling services with partner firms are all viable strategies. In addition, employed, female, and younger customers all had usage rates that exceeded their own expectations, so these groups should be among the first targeted by marketers, the authors write.</div>
<div style="margin-bottom: 12px;">
The second factor influencing the decision by customers to switch to a contract was a variation of the first: The more customers paid when not on a contract, the more likely they were to see the benefits of a long-term deal and make the switch. This doesn’t mean, however, that companies should simply raise rates for noncontract clients, the authors write; over the long term, the higher prices would likely drive away potential customers or cause existing ones to leave. Rather, managers hunting for contract contenders should begin by focusing on customers with a history of higher spending. Once they are identified, these customers should be plied with inducements to exercise their bigger spending habits during the noncontract phase. Companies should offer points for frequent usage in a loyalty program, among other incentives.</div>
<div style="margin-bottom: 12px;">
Last, customers who had had a longer noncontract relationship with the firm showed a higher probability of joining the contract program, the authors found. Thus, retention strategies and effective customer service are crucial. Although keeping long-standing low-end customers happy with good service is important, companies should keep their eye on the real goal: Strengthening these ties to convert them into more profitable contract-based relationships.</div>
<div style="margin-bottom: 12px;">
The authors stress that these managerial and marketing insights can be applied more generally to other industries. Internet-based phone companies, music streaming websites, file hosting services, and new-media businesses such as online newspapers and magazines are all facing the same challenge. These findings highlight the need for companies to encourage higher usage and spending during the pay-as-you-go phase.</div>
<div style="margin-bottom: 12px;">
The recommendations also extend to B2B firms, the authors write. For example, companies specializing in consulting, computer-related support, or legal services can team up with complementary firms to give customers easier access and more opportunities to use services.</div>
<div style="margin-bottom: 12px;">
“Marketing managers should move from the prevailing backward-looking focus toward a forward-looking focus,” the authors write, “in which each customer’s future considerations are monitored and managed proactively.”</div>
<div style="margin-bottom: 12px;">
<strong>Bottom Line:</strong><br />
Companies can lay the groundwork for customers to sign a contract by tracking and influencing their use of the company’s services in the pay-as-you-go phase. Although getting customers to make the switch is tough, it’s worth the effort because it is so profitable. Companies should target customers who have longer relationships with the firm, spend more during the noncontract phase, and have reason to think they will use the service frequently enough to offset the higher costs of a contract.</div>
<div class="profiles" style="color: #999999; font-family: Arial, Helvetica, sans-serif; font-size: 10px; line-height: normal;">
<a href="http://www.blogger.com/blogger.g?blogID=4362634453160311564" name="authors" style="color: #3366cc;"></a><br />
<h2 style="color: #333333; font-size: 11px; margin-bottom: 12px; margin-top: 0px; text-transform: uppercase;">
AUTHOR PROFILE:</h2>
<ol style="list-style-type: none; margin: 0px 0px 14px; padding: 0px;">
<li style="clear: both; margin-bottom: 14px;"><strong><a href="mailto:mattpalmquist@gmail.com" style="color: #3366cc; text-decoration: none;">Matt Palmquist</a></strong> is a freelance journalist based in Oakland, Calif.</li>
</ol>
</div>
</div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://forums.pinstack.com/content/10094-sprint_customers_can_opt_contract_without_etf.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/183557887_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://forums.pinstack.com/content/10094-sprint_customers_can_opt_contract_without_etf.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Sprint Customers Can Opt Out of Contract Without ETF Until July 31</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.getrichslowly.org/blog/2013/08/06/smartphone-dumb-mobile-plan/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/191318318_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.getrichslowly.org/blog/2013/08/06/smartphone-dumb-mobile-plan/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Smartphone, dumb mobile plan</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.sys-con.com/node/2753923" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/191716825_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.sys-con.com/node/2753923" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Consumer Cellular Adds LG Escape to No-Contract Smartphone Line-up</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=16100b8c-4048-427f-bbcb-acedaef18c9a" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-24696187658328227972013-08-08T10:59:00.001-05:002013-08-08T11:05:38.032-05:00The Perils of Being a Social Media Holdout<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="http://www.roadtrafficsigns.com/Road-Signs/Route-Marker-Signs.aspx" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Business" border="0" class="zemanta-img-inserted" height="208" src="http://www.roadtrafficsigns.com/img/lg/X/Business-Sign-X-M4-3.gif" style="border: none; font-size: 0.8em;" width="400" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 400px;"><a href="http://www.roadtrafficsigns.com/Road-Signs/Route-Marker-Signs.aspx" target="_blank">Business</a> (Photo credits: <a href="http://www.roadtrafficsigns.com/" target="_blank">www.roadtrafficsigns.com</a>)</td></tr>
</tbody></table>
<a href="http://blogs.hbr.org/">Harvard Business Review</a>: <br />
<span style="background-color: white; color: #585556; font-family: Helvetica, Arial, sans-serif; font-size: 12px; line-height: 22px;">by Clara Shih and Lisa Shalett | 10:00 AM July 31, 2013</span><br />
<span style="background-color: white; color: #585556; font-family: Helvetica, Arial, sans-serif; font-size: 12px; line-height: 22px;"></span><br /><span style="background-color: white; color: #585556; font-family: Helvetica, Arial, sans-serif; font-size: 12px; line-height: 22px;"></span>
<br />
<div id="articleBody" style="background-color: white; font-family: Helvetica, Arial, sans-serif; font-size: 13px; line-height: 18px; margin: 0px; padding: 0px 20px;">
<div style="line-height: 22px; margin-bottom: 15px; padding: 0px;">
There are conversations taking place about your company or brand 24 hours a day, seven days a week in social media. Are you a part of these conversations? Or are you hoping that if you don't hear them, they don't exist?</div>
<div style="line-height: 22px; margin-bottom: 15px; padding: 0px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Social_media_revolution.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Infographic on how Social Media are b..." border="0" class="zemanta-img-inserted" height="400" src="http://upload.wikimedia.org/wikipedia/commons/thumb/7/71/Social_media_revolution.jpg/300px-Social_media_revolution.jpg" style="border: none; font-size: 0.8em;" width="241" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Infographic on how Social Media are being used, and how everything is changed by them. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Social_media_revolution.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
Social media offers a variety of opportunities for brands to understand and participate in those conversations. While participating in social media is not without risk, not participating might prove to be the greater risk — especially to reputations.</div>
<div style="line-height: 22px; margin-bottom: 15px; padding: 0px;">
Here are three risks of not being in social media for big companies or major brands, small business owners, and service providers:</div>
<div style="line-height: 22px; margin-bottom: 15px; padding: 0px;">
<strong>Having your reputation defined by others:</strong> People are talking about you, your company and your brand, and your stakeholders expect you to be paying attention in real time, especially when they have a customer service complaint or positive feedback to give. You decide whether to participate in this conversation or not, but at least you are aware of what is being said. This is the new frontier for reputation risk management. If you don't tell your story, others will tell it for you.</div>
<div style="line-height: 22px; margin-bottom: 15px; padding: 0px;">
<strong>Being invisible and less credible: </strong>The <a class="zem_slink" href="http://en.wikipedia.org/wiki/Social_web" rel="wikipedia" target="_blank" title="Social web">social Web</a> is changing how people communicate and access information. ... People are looking you up. Not having a presence means you are not easily "findable" and perhaps leads people to question whether yours is a credible business. ... On average, buyers progress nearly 60% of the way through their purchase decision-making process before engaging with a sales representative, <a href="http://www.executiveboard.com/exbd-resources/content/digital-evolution/pdf/Digital-Evolution-in-B2B-Marketing.pdf" style="color: #b20022; outline: none; text-decoration: none;">according to Corporate Executive Board (link is PDF)</a>. If people are looking for information about you or your business, what are they finding? A social page or profile at its most basic level enables you to provide accurate and helpful information about what you or your company does to your intended audience. Additionally, social media pages typically appear with prominence in search results — without these online presences, relationship managers and organizations risk not being present in the search results when an interested prospect goes looking.</div>
<div style="line-height: 22px; margin-bottom: 15px; padding: 0px;">
<strong>Being perceived as behind the curve: </strong>As consumers embrace new technologies, they expect businesses to do the same. Companies (and their representatives) that aren't using social networks will not be perceived as forward-thinking and, in the long term, will risk losing customers who want business partners who speak their language. Would you create a new personal checking account with a bank that doesn't have an online portal? Today, we depend upon online access to data, including our finances, so that seems unthinkable. Soon customers will feel this way about having a social connection with businesses.</div>
<div style="line-height: 22px; margin-bottom: 15px; padding: 0px;">
Social media is perhaps best thought of as a set of new and innovative ways for businesses and customers to do what they have always done: build relationships, exchange information, read and write reviews, and leverage trusted networks of friends and experts.</div>
<div style="line-height: 22px; margin-bottom: 15px; padding: 0px;">
As you contemplate the risks and rewards of social media, we would suggest that the key ingredient for evaluation is simply to experience it for yourself. There are many low risk ways to do this, even if you work in a regulated industry. One of the best suggestions we have is to take on a "reverse mentor," a more junior colleague who has grown up with social media, and have them share their knowledge with you.</div>
<div style="line-height: 22px; margin-bottom: 15px; padding: 0px;">
Today's always on, social-mobile world is challenging all businesses, brands, and professionals to adapt — or at least make an informed decision not to. As you consider the full set of risks associated with being or not being in social media, it is important not to overlook the rewards and opportunities.</div>
</div>
<div id="articleFooter" style="background-color: white; clear: both; color: #575556; font-family: Helvetica, Arial, sans-serif; font-size: 12px; line-height: 18px; margin: 0px 0px 20px; padding: 10px 20px;">
<div style="margin: 0px; padding: 0px;">
<div id="articleFooterMoreBy" style="font-size: 11px; margin: 0px; padding: 0px;">
More blog posts by <a href="http://hbr.org/search/Clara%20Shih%20and%20Lisa%20Shalett" style="color: #b20022; outline: none; text-decoration: none;">Clara Shih and Lisa Shalett</a></div>
<div id="articleFooterCategories" style="font-size: 11px; margin: 0px 0px 5px; padding: 0px;">
More on: <a href="http://hbr.org/search/communication/0" style="color: #b20022; outline: none; text-decoration: none;">Communication</a>, <a href="http://hbr.org/search/customers/0" style="color: #b20022; outline: none; text-decoration: none;">Customers</a>, <a href="http://hbr.org/search/social%20media/0" style="color: #b20022; outline: none; text-decoration: none;">Social media</a></div>
</div>
<div id="pageFooterAuthor" style="border-top-color: rgb(222, 222, 222); border-top-style: solid; border-width: 1px 0px; color: #585556; line-height: 14px; margin: 0px; overflow: auto; padding: 10px 0px;">
<a href="http://hbr.org/search/Clara%20Shih%20and%20Lisa%20Shalett" style="color: #b20022; outline: none; text-decoration: none;"><img alt="Clara Shih and Lisa Shalett" class="headline-image" src="http://static2.hbr.org/mt-static/support/assets_c/userpics/userpic-2253-100x100.png" style="border: 0px; float: left; height: 80px; margin-right: 8px; width: 80px;" /></a><br />
<div class="headline-text" style="float: left; line-height: 18px; margin: 0px; padding: 0px; width: 490px;">
<h3 style="font-size: 12px; margin: 0px; padding: 0px; text-transform: uppercase;">
<a href="http://hbr.org/search/Clara%20Shih%20and%20Lisa%20Shalett" style="color: #585556; outline: none; text-decoration: none;">CLARA SHIH AND LISA SHALETT</a></h3>
<div style="padding: 0px;">
Clara Shih is the CEO & Founder, <a class="zem_slink" href="http://www.hearsaysocial.com/" rel="homepage" target="_blank" title="Hearsay Social">Hearsay Social</a>. Lisa Shalett is the Managing Director and Head of Brand Marketing & <a class="zem_slink" href="http://en.wikipedia.org/wiki/Digital_strategy" rel="wikipedia" target="_blank" title="Digital strategy">Digital Strategy</a>, <a class="zem_slink" href="http://www.gs.com/" rel="homepage" target="_blank" title="Goldman Sachs">Goldman Sachs</a></div>
</div>
</div>
</div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://kevin.lexblog.com/2013/08/01/perils-of-law-firm-being-a-social-media-holdout/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/190475098_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://kevin.lexblog.com/2013/08/01/perils-of-law-firm-being-a-social-media-holdout/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">The perils of your law firm being a social media holdout</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.mercurynews.com/business/ci_23784499/clara-shih-rides-social-media-savvy-starbucks-board" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/190426059_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.mercurynews.com/business/ci_23784499/clara-shih-rides-social-media-savvy-starbucks-board" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Clara Shih rides social media savvy to Starbucks board</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://amiltinan.wordpress.com/2013/08/07/me-as-a-brand/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_125_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://amiltinan.wordpress.com/2013/08/07/me-as-a-brand/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Me as a brand</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.business2community.com/social-media/how-safe-is-social-media-6-social-media-security-risks-for-businesses-0567458" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/189289572_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.business2community.com/social-media/how-safe-is-social-media-6-social-media-security-risks-for-businesses-0567458" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">How Safe is Social Media? 6 Social Media Security Risks for Businesses</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=79e79080-9df7-4898-93e3-72084c700268" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-54543280074170692062013-08-06T10:54:00.001-05:002013-08-06T11:00:35.816-05:00Measuring the full impact of digital capital<h2 class="grayNote large" id="rightframe_1_articleDescription" style="color: #666666; cursor: default; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 1.1em; font-weight: normal; line-height: 18px; margin: 0px 0px 10px; padding: 0px;">
Although largely uncounted, intangible <a class="zem_slink" href="http://en.wikipedia.org/wiki/Digital_asset" rel="wikipedia" target="_blank" title="Digital asset">digital assets</a> may hold an important key to understanding competition and growth in the Internet era.</h2>
<a href="http://www.mckinsey.com/">McKinsey & Company</a>: <br />
<br />
<div class="content-header-no-Img noBotBorder" style="border-bottom-width: 0px; clear: both; margin: 0px 0px 25px; min-width: 240px; overflow: auto; padding: 40px 0px 0px;">
<div class="articleHeader" style="margin: 0px; padding: 0px;">
<span class="silverNote small" style="color: #939d98; cursor: default; display: block; font-size: 0.846em; line-height: 14px; margin: 0px 0px 4px; padding: 0px;"><span class="bold" id="rightframe_1_articleDate" style="cursor: default; font-weight: bold; margin: 0px; padding: 0px;">July 2013</span> <span class="pipe" id="rightframe_1_AuthorPipe" style="cursor: default; margin: 0px; padding: 0px 5px;">| by</span><span id="rightframe_1_articleAuthors" style="cursor: default; margin: 0px; padding: 0px;">Jacques Bughin and James Manyika</span></span></div>
</div>
<div class="content clearfix" style="background-image: url(http://www.mckinsey.com/images/dotcom/global/bg-content.gif); background-position: 522px 0px; background-repeat: no-repeat repeat; margin: 40px 0px; overflow: auto; padding: 0px;">
<div class="leftInteriorTwoColumn page" style="float: left; margin: 0px 15px 0px 0px; padding: 0px; width: 510px;">
<div class="downloadBarWrapper" style="color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; margin: 0px; overflow: auto; padding: 0px;">
</div>
<div class="container article" id="rightframe_1_articleBody" style="color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; margin: 0px; padding: 0px 0px 18px;">
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:US-BureauOfEconomicAnalysis-Logo.svg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Logo of the United States Bureau of Economic A..." border="0" class="zemanta-img-inserted" height="75" src="http://upload.wikimedia.org/wikipedia/commons/thumb/e/ef/US-BureauOfEconomicAnalysis-Logo.svg/300px-US-BureauOfEconomicAnalysis-Logo.svg.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Logo of the United States Bureau of Economic Analysis, a part of the Department of Commerce. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:US-BureauOfEconomicAnalysis-Logo.svg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<strong style="cursor: default; margin: 0px; padding: 0px;">On July 31, 2013,</strong> the <a class="zem_slink" href="http://www.bea.gov/" rel="homepage" target="_blank" title="Bureau of Economic Analysis">US Bureau of Economic Analysis</a> released, for the first time, <a class="zem_slink" href="http://en.wikipedia.org/wiki/Gross_domestic_product" rel="wikipedia" target="_blank" title="Gross domestic product">GDP</a> figures categorizing research and development as fixed investment. It will join software in a new category called intellectual-property products.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
In our knowledge-based economy, this is a sensible move that brings GDP accounting closer to economic reality. And while that may seem like an arcane shift relevant only to a small number of economists, the need for the change reflects a broader mismatch between our digital economy and the way we account for it. This problem has serious top-management implications.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
To understand the mismatch, you need to understand what we call digital capital—the resources behind the processes key to developing new products and services for the digital economy. Digital capital takes two forms. The first is traditionally counted tangible assets, such as servers, routers, online-purchasing platforms, and basic Internet software. They appear as capital investment on company books. Yet a large and growing portion of what’s powering today’s digital economy consists of a second type of digital capital—<a class="zem_slink" href="http://www.wikinvest.com/metric/Intangible_Assets" rel="wikinvest" target="_blank" title="Intangible Assets">intangible assets</a>.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
They are manifold: the unique designs that engage large numbers of users and improve their digital experiences; the digital capture of user behavior, contributions, and social profiles; the environments that encourage consumers to access products and services; and the intense big-data and analytics capabilities that can guide operations and business growth. They also include a growing range of new business models for monetizing digital activity, such as patents and processes that can be licensed for royalty income, and the brand equity that companies like Google or Amazon.com create through digital engagement.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
Conventional accounting treats these capabilities not as company investments but as expenses, which means that their funding isn’t reflected as capital. Since the amounts spent aren’t amortized, they take a large bite out of reported income. Spending on those capabilities sometimes <em style="cursor: default; margin: 0px; padding: 0px;">should</em> be treated as capital, though, since they can be long-lived. Amazon.com’s development of an internal search process that promotes recurring sales or the efforts of Netflix to fine-tune personal recommendations to increase video viewing and retain customers are certainly more than expenses. Such capabilities, which are complex to build and replicate, can often help companies create enduring competitive strengths.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
We’re acutely aware of misguided efforts to justify sky-high valuations during the late-1990s Internet bubble by claiming that finance and accounting fundamentals were no longer relevant. We also recognize that we’re far from the first to note the relationship among intangibles, company-level growth and productivity, and overall economic growth.<a class="link-footnote" href="http://www.mckinsey.com/insights/high_tech_telecoms_internet/measuring_the_full_impact_of_digital_capital?cid=other-eml-nsl-mip-mck-oth-1308#" rel="#footnote1" style="color: #0065bd; cursor: pointer; margin: 0px; padding: 0px; text-decoration: none;"><sup style="cursor: pointer; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 0.7em; margin: 0px; padding: 0px; position: relative; top: -0.5em; z-index: 1;">1</sup></a> What we want to suggest here is that those relationships, which once represented a small minority of business activities, are becoming the rule in the digital economy. In fact, much of today’s digital spending could pay for long-lived intangible assets that will define the competitive landscape going forward.<a class="link-footnote" href="http://www.mckinsey.com/insights/high_tech_telecoms_internet/measuring_the_full_impact_of_digital_capital?cid=other-eml-nsl-mip-mck-oth-1308#" rel="#footnote2" style="color: #0065bd; cursor: pointer; margin: 0px; padding: 0px; text-decoration: none;"><sup style="cursor: pointer; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 0.7em; margin: 0px; padding: 0px; position: relative; top: -0.5em; z-index: 1;">2</sup></a> The rising stakes are seen in the copyright battles between Internet and consumer-electronics companies and in major spending on patent portfolios.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
Above all, we want to emphasize the importance, for many business leaders, of making the mind-set shift required to embrace the importance of digital capital fully. The disruptive nature of digital assets is intensifying in markets such as search, e-commerce, and social media (where attackers can build business models with near-limitless scale). Disruptive digital assets are also important in segments where behavioral data and user participation can be monetized, by defining entirely new business opportunities or fostering breakthroughs in collaborative innovation. As the mobile-payments start-up Square is demonstrating in the credit-card arena, increasingly, companies that deploy these assets have the potential to threaten large existing profit pools thanks to the challengers’ vastly different economics or radically new ways of doing things.</div>
<h3 style="color: black; cursor: default; font-size: 1.231em; font-weight: normal; line-height: 1.25em; margin: 0px 0px 7px; padding: 13px 0px 0px;">
The big picture</h3>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
There are parallels between what’s occurring today and during the period, 100 years ago, when electric motors gained widespread adoption. Early in that cycle, companies invested in physical motors, which like today’s servers and routers provided a new growth platform. But the more important kind of value appeared after companies began to understand how motors could change almost every process, improve productivity, and stimulate innovation. Companies that captured these benefits were more successful and more valuable than others.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
Today, the market valuations of many Internet-based companies are higher than those of their counterparts in other sectors, including high tech. Many Internet leaders earn lower returns on equity than established technology companies do, yet there’s no reason to believe that markets are making irrational bets on the growth potential of digitally adept companies. As the sidebar “Valuation and intangibles: Viewing the numbers differently” illustrates, treating digital intangibles as assets rather than expenses clarifies the logic behind valuations. (We based these pro-forma valuation calculations on data compiled by academic researchers, as well as assumptions about rates of intangible and digital investment from our own and outside research.)</div>
<div class="sidebar" style="background-color: #f7f7f7; background-position: initial initial; background-repeat: initial initial; border-bottom-left-radius: 3px; border-bottom-right-radius: 3px; border-top-left-radius: 3px; border-top-right-radius: 3px; border: 1px solid rgb(239, 239, 239); clear: left; float: left; margin: 15px 30px 25px 0px; padding: 10px 10px 0px; width: 130px;">
<div class="sidebarHeader" style="cursor: pointer; margin: 0px; overflow: auto; padding: 0px;">
<span class="open" style="background-image: url(http://www.mckinsey.com/images/Dotcom/Global/expandButtonsBG.gif); background-position: 0% 100%; cursor: pointer; display: block; float: right; height: 16px; margin: 0px 0px 10px 10px; padding: 0px; width: 16px;"></span><br />
<h4 style="color: #e37222; cursor: pointer; font-size: 1.25em; font-weight: normal; margin: 0px 0px 10px; padding: 0px;">
Sidebar</h4>
</div>
<div class="module block sidebarIntro" style="border-width: 0px; clear: left; float: left; margin: 0px 14px 0px 0px; overflow: auto; padding: 0px 0px 18px; width: 130px;">
<div class="moduleContent" style="margin: 0px; overflow: visible; padding: 0px;">
<div class="arialBlack" style="cursor: default; line-height: 16px; margin-bottom: 12px; padding: 0px;">
Valuation and intangibles: Viewing the numbers differently</div>
</div>
</div>
</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
Macroeconomic studies we have done suggest that digital capital is not only growing rapidly but has also become a major contributing factor in global economic growth.<a class="link-footnote" href="http://www.mckinsey.com/insights/high_tech_telecoms_internet/measuring_the_full_impact_of_digital_capital?cid=other-eml-nsl-mip-mck-oth-1308#" rel="#footnote3" style="color: #0065bd; cursor: pointer; margin: 0px; padding: 0px; text-decoration: none;"><sup style="cursor: pointer; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 0.7em; margin: 0px; padding: 0px; position: relative; top: -0.5em; z-index: 1;">3</sup></a> We examined the national-accounts data of 40 countries, assigning values to tangible and intangible assets. In 2005, digital-capital investment represented barely 0.8 percent of GDP for those countries. This year, it will exceed 3.1 percent of GDP. Likewise, the accumulating global value of digital-capital investments has reached more than $6 trillion, about 8.5 percent of nominal world GDP. Globally, levels of digital intangible investment are more than half those of digital tangible investment. In more highly digitized economies, such as Israel, Japan, Sweden, the United Kingdom, and the United States, spending on intangibles represents two-thirds of digital capital’s total value.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
This activity is starting to power growth. We estimate that digital capital is the source of more than one percentage point of global GDP growth (roughly one-third of total growth). Intangible capital already accounts for two-thirds of that slice, tangible investment for the rest. This growth flows from not only capital deepening but also increased labor productivity—a remarkable thing, since the digital economy has emerged in the relatively brief space of 15 years. By contrast, it took 80 years for steam engines to increase labor productivity to the same extent, about 40 for electricity, and more than 20 for conventional information and communications technologies.<a class="link-footnote" href="http://www.mckinsey.com/insights/high_tech_telecoms_internet/measuring_the_full_impact_of_digital_capital?cid=other-eml-nsl-mip-mck-oth-1308#" rel="#footnote4" style="color: #0065bd; cursor: pointer; margin: 0px; padding: 0px; text-decoration: none;"><sup style="cursor: pointer; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 0.7em; margin: 0px; padding: 0px; position: relative; top: -0.5em; z-index: 1;">4</sup></a> (For more on the relationship between capital formation and productivity, see sidebar “Innovation, capital, and productivity growth.”)</div>
<div class="sidebar" style="background-color: #f7f7f7; background-position: initial initial; background-repeat: initial initial; border-bottom-left-radius: 3px; border-bottom-right-radius: 3px; border-top-left-radius: 3px; border-top-right-radius: 3px; border: 1px solid rgb(239, 239, 239); clear: left; float: left; margin: 15px 30px 25px 0px; padding: 10px 10px 0px; width: 130px;">
<div class="sidebarHeader" style="cursor: pointer; margin: 0px; overflow: auto; padding: 0px;">
<span class="open" style="background-image: url(http://www.mckinsey.com/images/Dotcom/Global/expandButtonsBG.gif); background-position: 0% 100%; cursor: pointer; display: block; float: right; height: 16px; margin: 0px 0px 10px 10px; padding: 0px; width: 16px;"></span><br />
<h4 style="color: #e37222; cursor: pointer; font-size: 1.25em; font-weight: normal; margin: 0px 0px 10px; padding: 0px;">
Sidebar</h4>
</div>
<div class="module block sidebarIntro" style="border-width: 0px; clear: left; float: left; margin: 0px 14px 0px 0px; overflow: auto; padding: 0px 0px 18px; width: 130px;">
<div class="moduleContent" style="margin: 0px; overflow: visible; padding: 0px;">
<div class="arialBlack" style="cursor: default; line-height: 16px; margin-bottom: 12px; padding: 0px;">
Innovation, capital, and productivity growth</div>
</div>
</div>
</div>
<h3 style="color: black; cursor: default; font-size: 1.231em; font-weight: normal; line-height: 1.25em; margin: 0px 0px 7px; padding: 13px 0px 0px;">
Navigating the new terrain</h3>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
Intangible digital capital’s role in economic growth gives policy makers one more reason to favor investments in broadband and other forms of Internet infrastructure. Such investments correlate strongly with overall digital-capital levels. In our experience, though, the implications are even greater for executives, who often are not tuned into their organizations’ digital strengths or weakness. Few companies have gone through the internal exercise of reclassifying expenditures or segregating benefits from spending on intangibles. And of course, companies can boast a high ROE thanks to strong legacy-product margins but may nonetheless have muted growth prospects as a result of underinvesting in digital capital. To set a more effective digital course, leaders should consider the following ideas.</div>
<h6 style="cursor: default; font-size: 0.923em; margin: 0px 0px 9px; padding: 13px 0px 0px;">
Take stock of your assets</h6>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
Since identifying intangible assets is difficult, companies may be missing growth opportunities. Many have realized only recently that they can use social-media interactions with their best customers to leverage innovation efforts or that they may have unused data they could restructure into valuable big-data assets to sharpen business strategy. Similarly, companies should take stock of how digital capital they <em style="cursor: default; margin: 0px; padding: 0px;">don’t</em> own may be relevant to the business. A retailer that doesn’t have access to digital behavioral data on consumers, for example, may be at a disadvantage. So could a bank whose customers access products through a third-party platform that limits the bank’s ability to capture information.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
Conversely, companies may wrongly assume that their growth results from conventional capital spending and therefore compromise growth by underinvesting in digital competencies. One online company, for example, stuck to a subscriber pay model in hopes of boosting returns on tangible investments such as server farms. It wound up missing a massive social-networking opportunity that would have yielded far greater returns on advertising revenues.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
Our global research shows that the stock of intangible assets varies considerably by region. Some markets have larger numbers of strong digital contenders, others fewer. Companies could make those differences a factor in deciding which markets to enter and where to place digital bets.</div>
<h6 style="cursor: default; font-size: 0.923em; margin: 0px 0px 9px; padding: 13px 0px 0px;">
Face up to looming threats</h6>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
Assume that digital leaders in your competitive zone are relentlessly expanding their intangible assets both to attack existing markets and to create new ones. Amazon.com, for instance, won share from brick-and-mortar retailers with its ease-of-purchase model and its ability to reach long-tail customers. Now it’s launching new business models (such as Amazon Prime) to further leverage its user base and logistics capabilities. It’s also using tangible server assets to offer cloud-based labor services (Mechanical Turk) that match freelance workers with demand for their labor.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
A good first step is to identify which areas of your value chain are most vulnerable—for example, service delivery or weak digital brands. Competitors can slide vertically or horizontally into large gaps, so you’ll need to build digital assets quickly as a counterweight. Even companies that have a considerable stock of digital assets should understand that capturing value from them isn’t a given. Instead, such companies must define (and relentlessly innovate with) business models that can be scaled up to match those assets.</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
One clue suggesting that a company might face emerging digital challenges is the existence of businesses that have unusually high levels of revenue per employee in adjacent market spaces. Amazon.com’s employee productivity, for example, is double that of traditional retailers. Netflix, similarly, generates more revenue per employee than traditional cable operators do, by leveraging intangibles such as its highly evolved recommendation algorithms. Unusual financial profiles are another warning sign. Since digital funding is counted as operating expenditure, digital leaders often have small capital-investment levels relative to their size and growth potential. They also borrow less, both because they may not need to (some reap sizable market rents from, for example, search licensing fees or patent income) and because banks may be less likely to lend against intangible assets.</div>
<h6 style="cursor: default; font-size: 0.923em; margin: 0px 0px 9px; padding: 13px 0px 0px;">
Partner with care</h6>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
Most companies rely on digital agencies for things like optimizing search marketing. In such cases, they may be ceding digital capital, since they never develop a full understanding of consumer segments or what inspires a customer who searches for their products. Seeing such capability building as an investment may change the logic of using third parties. Similarly, when companies look to established tech players for partnerships shoring up weaknesses, they should be cautious: some seemingly high performers may be on the wrong path and could burden you with outmoded standards and platforms. Alternatively, if you deal with strong players, you may be leaving yourself vulnerable by letting them lead.</div>
<div class="articleBreak" style="border-bottom-color: rgb(197, 197, 197); border-bottom-style: dotted; border-bottom-width: 1px; font-size: 0px; height: 1px; line-height: 0; margin: 18px 30px 30px; padding: 0px;">
</div>
<div style="cursor: default; font-family: Georgia, 'Times New Roman', serif; line-height: 17px; margin-bottom: 12px; padding: 0px;">
The need for growth and competitiveness will force companies to build strong digital capabilities. Viewing them as assets rather than additional areas of spending requires a new set of management and financial lenses. Embracing them is a major shift—but one worth making for companies striving to master a still-evolving landscape.</div>
<div class="about-authors" style="color: #666666; font-size: 0.929em; line-height: 16px; margin: 0px 0px 25px; padding: 0px;">
<h6 style="cursor: default; font-size: 0.923em; margin: 0px 0px 9px; padding: 13px 0px 0px;">
About the authors</h6>
<div style="cursor: default; font-size: 0.929em; line-height: 14px; margin-bottom: 12px; padding: 0px;">
<strong style="cursor: default; margin: 0px; padding: 0px;">Jacques Bughin</strong> is a director in McKinsey’s Brussels office. <strong style="cursor: default; margin: 0px; padding: 0px;">James Manyika</strong> is a director of the McKinsey Global Institute and a director in the San Francisco office.</div>
</div>
</div>
<div id="rightframe_1_downloadLinks" style="color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; margin: 0px; padding: 0px;">
</div>
<div id="rightframe_1_articleBottomModules" style="color: #333333; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; margin: 0px; padding: 0px;">
<div class="wrapperShareThisModuleBottom" id="rightframe_1_ctl00_ContainerDiv_ArticleBody" style="margin: 0px; padding: 0px;">
<ul class="share" style="line-height: 19px; list-style: none; margin: 0px; padding: 0px;">
<li class="shareItem pdf" style="cursor: default; float: left; margin: 0px; padding: 0px;"></li>
</ul>
</div>
</div>
</div>
</div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.relationship-economy.com/2013/08/a-mind-set-shift-is-required-to-capture-the-gains/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/191301476_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.relationship-economy.com/2013/08/a-mind-set-shift-is-required-to-capture-the-gains/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">A Mind-Set Shift Is Required to Capture The Gains</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://venitism.blogspot.com/2013/07/impact-of-digital-capital.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/189408785_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://venitism.blogspot.com/2013/07/impact-of-digital-capital.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Impact of Digital Capital</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.itpro.co.uk/strategy/20243/digital-economy-far-bigger-first-thought" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/187150637_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.itpro.co.uk/strategy/20243/digital-economy-far-bigger-first-thought" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Digital economy far bigger than first thought</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://r.zemanta.com/?u=http%3A//www.guardian.co.uk/business/2013/jul/22/digital-economy-neglected-by-official-statistics&a=187178340&rid=e41bb89e-c380-40ad-a2a1-6a9fe93b4884&e=e243054a41018e481092a81cc4e2b343" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/187178340_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://r.zemanta.com/?u=http%3A//www.guardian.co.uk/business/2013/jul/22/digital-economy-neglected-by-official-statistics&a=187178340&rid=e41bb89e-c380-40ad-a2a1-6a9fe93b4884&e=e243054a41018e481092a81cc4e2b343" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Digital economy 'neglected by official statistics'</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=e41bb89e-c380-40ad-a2a1-6a9fe93b4884" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-46160046937637640952013-08-06T10:16:00.001-05:002013-08-06T10:30:51.537-05:00Don’t Ask, Don’t Learn<a href="http://www.strategy-business.com/">strategy+business magazine</a>: <br />
<br />
<div class="authorPic" style="background-color: #cccccc; color: #333333; float: left; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; height: 95px; margin-right: 10px; width: 75px;">
<span style="background-color: white;"><br /><a class="zem_slink" href="http://en.wikipedia.org/wiki/David_Silverman" rel="wikipedia" target="_blank" title="David Silverman">David Silverman</a> is an author, teacher and senior executive at a Fortune 100 firm.</span></div>
<div class="authorText" style="background-color: white; color: #333333; float: left; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; width: 210px;">
<a href="http://www.strategy-business.com/David-Silverman" style="clear: left; color: #3366cc; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="David Silverman" border="0" height="190" src="http://www.strategy-business.com/media/image/sb-blog-david_silverman-150x190.jpg" style="height: 95px; width: 75px;" title="David Silverman" width="150" /></a><br />
<div style="margin-bottom: 12px;">
<span class="email" style="display: inline-block !important;"><a href="mailto:dsagman@yahoo.com" style="color: #3366cc;"><img border="0" height="20" src="http://www.strategy-business.com/media/image/sb-blog-email-icon.png" width="58" /></a></span></div>
</div>
<div class="clearBoth" style="background-color: white; clear: both; color: #333333; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 11px; height: 1px; overflow: hidden;">
</div>
<br />
<br />
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
<div style="text-align: right;">
</div>
We need to teach our children how to ask better questions. Because although most jobs don’t have the<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-right: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><div class="zemanta-img">
<a href="http://commons.wikipedia.org/wiki/File:Challenger_STS-51-L-launch.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Camera E-207 show a plume near the aft strut t..." border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/3/39/Challenger_STS-51-L-launch.jpg/300px-Challenger_STS-51-L-launch.jpg" style="border: none; font-size: 0.8em;" width="146" /></a></div>
</td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Camera E-207 show a plume near the aft strut that attaches the right solid rocket booster (RSRB) to the external tank. Photo courtesy NASA (Štart raketoplánu Challenger STS-51-L. Kamera zaznamenala plameň šľahajúci z motora SRB) (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Challenger_STS-51-L-launch.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
potential to impact the world in the way<a href="http://www.bbc.co.uk/blogs/tv/posts/the-challenger-researching-the-space-shuttle-disaster" style="color: #3366cc;" target="_blank">the NASA Challenger disaster did</a>, when employees don’t possess the tools to make a team excel through questioning, we will continue to experience failures that could have been avoided.</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Without skill in asking, fraud, incompetence, and ego dominate instead of reason and group cohesion. Too few of us are taught to ask questions as a means to overcome these destructive forces.</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Inquiry, as we are taught in school, comes in two main categories: “I don’t understand, teacher” and “Let me show you how much smarter I am than you, teacher.” The I-don’t-understand question is simply that. The teacher presents something, the student raises his or her hand and says, “But what if there is no squared variable?” The teacher explains, “Then use method B,” and that’s that. ...</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><div class="zemanta-img">
<a href="http://commons.wikipedia.org/wiki/File:Logical_fallacy.svg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: A logical fallacy. Statement 1: Most ..." border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/0/0d/Logical_fallacy.svg/300px-Logical_fallacy.svg.png" style="border: none; font-size: 0.8em;" width="127" /></a></div>
</td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: A logical fallacy. Statement 1: Most of the green is touching the red. Statement 2: Most of the red is touching the blue. Logical fallacy: Since most of the green is touching red, and most of the red is touching blue, most of the green must be touching blue. This, however, is a false statement. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Logical_fallacy.svg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
As for the let-me-show-you question, well, it isn’t really a question at all. A professor I had once lectured that there was no such thing as “facts,” only “perception based on cultural norms”—for example, a language that works by <a href="http://blog.expectlabs.com/post/41953134422/how-language-shapes-reality-exploring-guugu-yimithirr" style="color: #3366cc;" target="_blank">referencing cardinal direction</a> (north, south, etc.) rather than relative (left, right, etc.). My question: “If someone shoots you with a gun, aren’t you, in fact, dead?” I wasn’t really looking for an answer—although the professor did gamely suggest that he might not be dead if his culture didn’t accept that—I was showing off that I thought I found a <a class="zem_slink" href="http://en.wikipedia.org/wiki/Fallacy" rel="wikipedia" target="_blank" title="Fallacy">logical fallacy</a>. I was using questioning not to gain knowledge, but to gain position. ...</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Indeed, because this is how we have been conditioned, we continue this approach to questioning in the workplace. I-don’t-understand gets asked by junior people who, just like students, will stop after the first or second attempt at gaining clarity, shut up, slink off, and attempt to resolve their confusion on their own or by hoping someone corrects them—just like in school.<br />
The let-me-show-you “question” is often posed by people who have run aground in corporate politics. It is sometimes called “grenade throwing” and used to derail others, which wastes everyone’s time. ...</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
There is a better way, though. One that combines the honest inquiry of “I don’t understand” and the<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: right; margin-right: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><div class="zemanta-img">
<a href="http://commons.wikipedia.org/wiki/File:STS-51-L_grey_smoke_on_SRB.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Camera captures grey smoke emitting from the r..." border="0" class="zemanta-img-inserted" height="150" src="http://upload.wikimedia.org/wikipedia/commons/thumb/4/42/STS-51-L_grey_smoke_on_SRB.jpg/300px-STS-51-L_grey_smoke_on_SRB.jpg" style="border: none; font-size: 0.8em;" width="200" /></a></div>
</td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Camera captures grey smoke emitting from the right-hand SRB on Space Shuttle Challenger before the start of STS-51-L. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:STS-51-L_grey_smoke_on_SRB.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
potentially valuable wisdom embedded in “let me show you.” I’ll call it “management questioning.”...</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Boss: “What are you doing?”</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Employee: Cursory answer.</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Boss: “Why do you think you should be doing that?”</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Employee: Somewhat more detailed answer.</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Boss: “How does that align with what [the company, I, your boss, our strategy document] want(s)?”</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Employee: Hopefully enlightened response, but perhaps not.</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Boss: “How can we adjust what you’re doing to match?”</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Employee: Increasingly engaged response.</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
Rinse, repeat. And repeat. And repeat.</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
In management questioning, someone, <em>and not always the leader</em>, asks pertinent questions and doesn’t stop until the explanation is fully, ... understood by all. This is the kind of questioning that can uncover deep faults in organizations that are headed in the wrong direction. Great managers are always acting as if they are an independent investigator of their own area of responsibility. They hold the line of questioning until a satisfactory conclusion has been reached, and they do it focused on group progress, not on establishing their own superior knowledge.</div>
<div style="background-color: white; color: #333333; font-family: Georgia, 'Times New Roman', Times, serif; font-size: 14px; line-height: 20px; margin-bottom: 12px;">
<div style="text-align: right;">
</div>
.<br />
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img zemanta-action-dragged" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><div class="zemanta-img">
<a href="http://commons.wikipedia.org/wiki/File:Ice_on_the_Pad_on_the_Day_of_STS-51-L%27s_Launch_-_GPN-2004-00011.jpg" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: On January 28, 1986, the Space Shuttl..." border="0" class="zemanta-img-inserted" height="200" src="http://upload.wikimedia.org/wikipedia/commons/thumb/a/a9/Ice_on_the_Pad_on_the_Day_of_STS-51-L%27s_Launch_-_GPN-2004-00011.jpg/300px-Ice_on_the_Pad_on_the_Day_of_STS-51-L%27s_Launch_-_GPN-2004-00011.jpg" style="border: none; font-size: 0.8em;" width="158" /></a></div>
</td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: On January 28, 1986, the Space Shuttle Challenger and her seven-member crew were lost when a ruptured O-ring in the right Solid Rocket Booster caused an explosion soon after launch. On the day of Space Shuttle Challenger's launch, icicles draped the Kennedy Space Center. The unusually cold weather, beyond the tolerances for which the rubber seals were approved, most likely caused the O-ring failure. (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Ice_on_the_Pad_on_the_Day_of_STS-51-L%27s_Launch_-_GPN-2004-00011.jpg" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
.. A great example of staying the course in management questioning is <a href="http://www.bbc.co.uk/blogs/tv/posts/the-challenger-researching-the-space-shuttle-disaster" style="color: #3366cc;" target="_blank">Richard Feynman’s inquiry into the Challenge disaster</a>. If his tenacious techniques had been employed in the first place, there may not have been the same tragic result. Yes, that may be an unfair use of hindsight, but I don’t think it’s entirely unreasonable to consider.<br />
<br />
Richard Feynmans don’t exist in most companies. But anyone at any level of management can overcome the limits of how they’ve been taught to question. Yes, it takes nerve to re-ask a question others think has already been answered. Yes, it takes real self-control not to show off your own brilliance when pointing out a gap in reasoning. But it is down this finely calibrated road of confidence without condescension that true leaders learn to go.</div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.inc.com/jeff-haden/10-things-extraordinary-bosses-do-for-their-employees.html" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/191353886_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.inc.com/jeff-haden/10-things-extraordinary-bosses-do-for-their-employees.html" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">10 Things Extraordinary Bosses Give Employees</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://gasstationwithoutpumps.wordpress.com/2013/08/04/what-teachers-need-to-look-for/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/190847897_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://gasstationwithoutpumps.wordpress.com/2013/08/04/what-teachers-need-to-look-for/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">What teachers need to look for</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.businessinsider.com/habits-of-amazing-bosses-2013-7" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/185953938_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.businessinsider.com/habits-of-amazing-bosses-2013-7" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">11 Habits Of Amazing Bosses</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://sensitivecontext.com/2013/08/06/the-curious-case-of-correlation-%e2%89%a0-causation/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/191271336_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://sensitivecontext.com/2013/08/06/the-curious-case-of-correlation-%e2%89%a0-causation/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">The Curious Case of Correlation ≠ Causation</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=c1f14953-a971-4397-8b99-07930b299cbe" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0tag:blogger.com,1999:blog-4362634453160311564.post-28692147463973738652013-08-06T09:38:00.001-05:002013-08-06T09:48:16.788-05:00How Private Equity Is Driving Value<a href="http://www.blogger.com/blogger.g?blogID=4362634453160311564" id="ctl13_commentControl_lbtnAuthor1" style="-webkit-text-stroke-width: 0px; background-color: #dbdbdb; color: #004073; font-family: Georgia, Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 18.203125px; orphans: auto; text-align: start; text-decoration: none; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px;"></a><br />
<div style="-webkit-text-stroke-width: 0px; color: black; font-family: Georgia, Arial; font-size: 1.077em; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 18.203125px; margin: 0px 0px 5px; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px;">
<span style="background-color: white;">A new study finds that financial-sponsor-backed companies are outperforming their publicly held peers.</span></div>
<a href="http://www3.cfo.com/">CFO.com</a>: <br />
<span style="background-color: white;"><a href="http://www.blogger.com/blogger.g?blogID=4362634453160311564" id="ctl13_commentControl_lbtnAuthor1" style="color: #004073; font-family: Georgia, Arial; font-size: 13px; line-height: 18.203125px;">Vincent Ryan</a><span style="font-family: Georgia, Arial; font-size: 13px; line-height: 18.203125px;"> </span><a href="https://plus.google.com/105460749778545665301?rel=author" id="ctl13_commentControl_lbtnAuthor1GoogleProfileId" style="color: #b22d25; font-family: Georgia, Arial; font-size: 13px; line-height: 18.203125px; text-decoration: none;" target="_blank">Follow on Google</a><span style="font-family: Georgia, Arial; font-size: 13px; line-height: 18.203125px;"> </span></span><br />
<div style="font-family: Georgia, Arial; font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<span style="background-color: white;"><br /></span></div>
<div style="font-family: Georgia, Arial; margin-bottom: 20px; padding-right: 5px;">
<span style="background-color: white; font-size: 17px; line-height: 25.84375px;">... </span><span style="background-color: white; font-size: 1.077em; line-height: 1.5em;">From 2006 to 2012,</span><span style="background-color: white; font-size: 1.077em; line-height: 1.5em;"> </span><a href="http://www.ey.com/Publication/vwLUAssets/EY_-_Private_equity_value_creation_in_North_America/$FILE/EY-Clear-direction-focused-vision.pdf" style="color: #004073; font-size: 1.077em; line-height: 1.5em; text-decoration: none;" target="_blank">E&Y found in its recent study of North American PE deals</a><span style="background-color: white; font-size: 1.077em; line-height: 1.5em;">, PE-backed firms spawned a return of more than five-fold that of investor returns on publicly held companies. </span></div>
<div style="font-family: Georgia, Arial; font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Private_Equity_Fund_Diagram.png" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Diagram of private equity fund struct..." border="0" class="zemanta-img-inserted" height="125" src="http://upload.wikimedia.org/wikipedia/commons/thumb/a/a3/Private_Equity_Fund_Diagram.png/300px-Private_Equity_Fund_Diagram.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Diagram of private equity fund structure for Private equity, Private equity fund, Private equity firm (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Private_Equity_Fund_Diagram.png" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<span style="background-color: white;">About half of that return (realized when the <a class="zem_slink" href="http://www.wikinvest.com/concept/Private_Equity" rel="wikinvest" target="_blank" title="Private Equity">PE firm</a> sold its ownership interest) came from strategic and operational improvements. For the most part, E&Y found, it was growth in <a class="zem_slink" href="http://en.wikipedia.org/wiki/Earnings_before_interest%2C_taxes%2C_depreciation_and_amortization" rel="wikipedia" target="_blank" title="Earnings before interest, taxes, depreciation and amortization">EBITDA</a> (earnings before interest, taxes, depreciation and amortization) that created this value for PE firms’ acquisitions -- in particular, growth of the organic variety. </span></div>
<div style="font-family: Georgia, Arial; font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Private_Equity_Co-Investment_Diagram.png" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Diagram of private equity co-investme..." border="0" class="zemanta-img-inserted" height="104" src="http://upload.wikimedia.org/wikipedia/commons/thumb/7/78/Private_Equity_Co-Investment_Diagram.png/300px-Private_Equity_Co-Investment_Diagram.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Diagram of private equity co-investment structure for Equity co-investment (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Private_Equity_Co-Investment_Diagram.png" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<span style="background-color: white;">At companies that exited their PE owners in 2010-2012, for example, organic-revenue increases accounted for 45 percent of EBITDA growth, up from 39 percent pre-recession (2006-2007). <a href="http://s3.datawrapper.de/kCktu/" style="color: #004073; text-decoration: none;" target="_blank">(Click here for an interactive chart.)</a> </span></div>
<div style="font-family: Georgia, Arial; font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<table cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: right; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Leveraged_Buyout_Diagram.png" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="Diagram of leveraged buyout transaction struct..." border="0" class="zemanta-img-inserted" height="128" src="http://upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Leveraged_Buyout_Diagram.png/300px-Leveraged_Buyout_Diagram.png" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">Diagram of leveraged buyout transaction structure for Private equity, Leveraged buyout (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Leveraged_Buyout_Diagram.png" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<span style="background-color: white;">E&Y says the results stem from PE firms changing the business models of the companies they own. ... </span></div>
<div style="font-family: Georgia, Arial; font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<span style="background-color: white;">“In the 1990s and the 2000s, if PE firms bought at the right time and then held the investment, they made money based on the multiples expansion in the public markets,” says Jeffrey Bunder, global private equity leader at Ernst & Young. Now, however, PE firms are concentrating on driving earnings growth, he says. </span></div>
<div style="font-family: Georgia, Arial; font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container zemanta-img" style="float: left; margin-right: 1em; text-align: left;"><tbody>
<tr><td style="text-align: center;"><a href="http://commons.wikipedia.org/wiki/File:Valuation_methods.JPG" imageanchor="1" style="margin-bottom: 1em; margin-left: auto; margin-right: auto; text-align: clear:right;"><img alt="English: Different methods to assess value on ..." border="0" class="zemanta-img-inserted" height="150" src="http://upload.wikimedia.org/wikipedia/commons/thumb/3/31/Valuation_methods.JPG/300px-Valuation_methods.JPG" style="border: none; font-size: 0.8em;" width="200" /></a></td></tr>
<tr><td class="tr-caption zemanta-img-attribution" style="text-align: center; width: 300px;">English: Different methods to assess value on the secondary market (Photo credit: <a href="http://commons.wikipedia.org/wiki/File:Valuation_methods.JPG" target="_blank">Wikipedia</a>)</td></tr>
</tbody></table>
<span style="background-color: white;">In almost all of the PE deals E&Y studied, for instance, once the PE firm acquired the company, the financial sponsors had a 100-day plan to either enhance revenue (52 percent) or generate cash (32 percent). “It’s more of an operating model: getting the right management team in place, driving business expansion into different geographies, adding products and expanding through acquisition,” Bunder says.</span></div>
<div style="font-family: Georgia, Arial; font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<span style="background-color: white;">But it would be wrong to suggest that the old value creators for private-equity firms no longer contribute. Higher stock market returns still drove 17 percent of PE-owned companies’ overall returns, and the additional leverage PE-backed companies took on accounted for 25 percent of overall returns. In addition, cost reduction at acquired businesses still drove 26 percent of EBITDA growth for the deals PE firms existed during 2006 to 2012.</span></div>
<div style="font-family: Georgia, Arial; font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<span style="background-color: white;">Healthy equity markets have also enabled successful exits of private-equity-backed firms through initial public offerings. And even the multiple-expansion effect has returned. “Multiples, which compressed significantly during the post-crisis years and negatively impacted performance, have rebounded in the recovery period and accounted for 30 percent of overall PE returns,” the E&Y report says.</span></div>
<div style="font-family: Georgia, Arial; font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<span style="background-color: white;">PE firms indeed are <a class="zem_slink" href="http://en.wikipedia.org/wiki/Holding_company" rel="wikipedia" target="_blank" title="Holding company">holding companies</a> longer — an average of 5.1 years in the study’s deal population in 2012, up from 3.4 in 2006. While the <a class="zem_slink" href="http://en.wikipedia.org/wiki/Great_Recession" rel="wikipedia" target="_blank" title="Great Recession">Great Recession</a> certainly had something to do with that, “longer hold periods … also point to increased engagement by PE owners in the businesses they back,” said the E&Y report.</span></div>
<div style="font-family: Georgia, Arial; font-size: 1.077em; line-height: 1.5em; margin-bottom: 20px; padding-right: 5px;">
<span style="background-color: white;">For the study, Bunder’s team analyzed deals that PE firms exited during 2006 to 2012. They chose acquisitions that had an initial value of $150 million or higher.</span></div>
<a href="https://chrome.google.com/webstore/detail/pengoopmcjnbflcjbmoeodbmoflcgjlk" style="font-size: 13px;">'via Blog this'</a><br />
<div class="zemanta-related" style="clear: both; margin-top: 20px; overflow: hidden;">
<h4 class="zemanta-related-title">
Related articles</h4>
<ul class="zemanta-article-ul zemanta-article-ul-image" style="margin: 0; overflow: hidden; padding: 0;">
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://www.prweb.com/releases/executive-recruiting/Private-Equity-Headhunter/prweb10995092.htm" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_64_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://www.prweb.com/releases/executive-recruiting/Private-Equity-Headhunter/prweb10995092.htm" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Private Equity Headhunters COO Frank Weston Has Had 27 Senior Level...</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://modernfinancereport.wordpress.com/2013/05/28/pe-firms-taking-profits-onion-rings-off-the-table-private-equity-apollo-black-dealogic-bain-capital-bloomin-wesco-carlyle-oaktree-capital-djia-happy-hour-asset-management/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/177571655_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://modernfinancereport.wordpress.com/2013/05/28/pe-firms-taking-profits-onion-rings-off-the-table-private-equity-apollo-black-dealogic-bain-capital-bloomin-wesco-carlyle-oaktree-capital-djia-happy-hour-asset-management/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">PE Firms Taking Profits Off the Table</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="http://blogs.wsj.com/moneybeat/2013/07/16/whats-private-equity-good-for/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/noimg_70_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="http://blogs.wsj.com/moneybeat/2013/07/16/whats-private-equity-good-for/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">What's Private Equity Good For?</a></li>
<li class="zemanta-article-ul-li-image zemanta-article-ul-li" style="background: none; display: block; float: left; font-size: 11px; list-style: none; margin: 2px 10px 10px 2px; padding: 0; text-align: left; vertical-align: top; width: 84px;"><a href="https://www.axialmarket.com/blog/2013/03/will-2013-see-record-valuations-middle-market-busi/" style="border-radius: 2px; box-shadow: 0px 0px 4px #999; display: block; padding: 2px; text-decoration: none;" target="_blank"><img src="http://i.zemanta.com/149973569_80_80.jpg" style="border: 0; display: block; margin: 0; max-width: 100%; padding: 0; width: 80px;" /></a><a href="https://www.axialmarket.com/blog/2013/03/will-2013-see-record-valuations-middle-market-busi/" style="display: block; height: 80px; line-height: 12pt; overflow: hidden; padding: 5px 2px 0 2px; text-decoration: none;" target="_blank">Will 2013 See Record Valuations for Middle Market Business Sales?</a></li>
</ul>
</div>
<div class="zemanta-pixie" style="height: 15px; margin-top: 10px;">
<a class="zemanta-pixie-a" href="http://www.zemanta.com/?px" title="Enhanced by Zemanta"><img alt="Enhanced by Zemanta" class="zemanta-pixie-img" src="http://img.zemanta.com/zemified_e.png?x-id=0702837e-72ad-41d0-9cd8-9a168df31579" style="border: none; float: right;" /></a></div>
Anonymoushttp://www.blogger.com/profile/05924687812652628052noreply@blogger.com0