04 May 2015

Growth of Ad Agencies

By Ginny Grimsley

Death of the Small- to Mid-Tier Agency Has Been Greatly Exaggerated

Since the 1980's, the anticipated shrinkage in numbers of the small- to mid-tier ad agencies (less than 100 people or so) has not happened. If anything, there are more of them! While worldwide mega-agency groups (starting with Saatchi & Saatchi back then) have continued to grow, merge, morph, and control more media dollars, the small, independent shops stubbornly remain. There are several reasons why even worldwide brands, as well as local or regional brands, prefer working with small- to mid-tier shops.

•  Relationships matter - Most businesses are small themselves, and those large enough to seek the help of an ad agency, PR firm or web shop prefer to do so, in most cases, with similarly-sized companies. In RFPs, a common question is about the agency's client roster and where the prospect's account would fit in the pecking order. Mattering to an agency's business translates to a certain amount of leverage, regardless of the added services or bench strength the larger agency promises it would give access to. All that added firepower that's promised sounds good, but in reality, how much will actually be used on your business?

•  The age of specialization - Almost as common as in the field of medicine, many small shops have become known for their areas of expertise, whether based on creative, or digital media, by client, or channel experience and reputation. Very often advertisers want the particular ingredient for which the small shop excels. It's not uncommon for marketing departments of larger advertisers to manage several "boutique" agencies to keep ideas fresh and flowing.

•  The digital age - The advent of personal computers and the Internet have been the great equalizer between large and small agencies. As long as a small shop stays current with technology, they can compete with agencies twice their size; provided the brain-power and desire is equal to the task. The search ability of the Internet, affordable survey programs, and niche market research available off the shelf, has also leveled the playing field of category knowledge and competitive intel.

•  An appreciation for experience - Make no mistake; the ad business is a young business. Always has been and always will be. That's because historically, many consumer brands (which constitute the bulk of advertising dollars) are aimed at a young adult demographic. But as the population has aged, the number of active, senior-level ad execs has also increased. Many of these are found as the hands-on ownership or leadership in small agencies that they themselves have started. Clients, in turn, benefit enormously from direct access to their tried and true wisdom and insight.

•  The end of the three-martini lunch - The move toward a more accountable approach to client service began in the 90's, as accounting systems and MBA's began to take hold. The recent Great Recession cemented this new, more austere reality. Clients, on the whole, are simply more overhead sensitive nowadays. They know intuitively they will ultimately be paying for all of those assistant's assistants, lavish offices, and entertainment. Small- to mid-tier agencies, on the other hand, run leaner operations out of necessity. And smart clients appreciate the obvious stewardship of money - their money.

•  Demand for better service - As the ad business has matured, the associated mystery and mystique has diminished to a certain extent. Clients are less inclined to suffer aloof, prima donna creative directors, disorganized media buyers or absent-minded account executives. They want and expect more service for their marketing dollar. They have seen "the man behind the curtain." It's been our experience that small- to mid-tier shops, even with smaller "bench depth," deliver as good if not better service for most clients than shops that are much larger.

About the Authors:

Over the last 35 years, Jim Lindsey has served as vice-chairman at several of the world's most powerful advertising agencies, including Saatchi & Saatchi Worldwide, McCaffrey & McCall, and Hill Holiday/Wakeman & DeForrest. He has been honored with more than 50 ADDY Awards, Clio Awards, and Golden Quill Awards and is a recipient of advertising's highest honor, The Silver Medal Award. He has managed hundreds of millions of dollars of advertising contracts on behalf of advertisers around the world.

Paul Friederichsen specializes in marketing strategy and award-winning creative direction and television campaigns for developing and launching brands. He has done so for The Home Depot, Dixie Crystals Sugar, ITT Technical Institutes, RCA and GE consumer electronics, among other category-leading clients. Paul has held executive creative positions at several top advertising firms, including Saatchi & Saatchi.

04 May 2015

How To Survive The Largest Generational Wealth Transfer In Human History

By Ginny Grimsley
A Family-Wealth Guru Offers 4 Insights For Choosing (Or Agreeing To Be) A Trustee

The greatest transfer of wealth in history is happening right now, according to a study from the Boston College Center on Wealth and Philanthropy.

A staggering amount - $59 trillion - is projected to be passed down to heirs, charities and taxes between 2007 and 2061.

"We are in the middle of a massive, unprecedented wealth transfer from the World War II generation to the Baby Boomers, and then to subsequent generations," says family wealth guru John Pankauski, author of the new book, "Pankauski's Trustee's Guide: 10 Steps to Family Trustee Excellence."

"But much of that wealth will not be given to beneficiaries outright."

Instead, he says, it will be held in a trust, which is a distinct entity, much like a corporation. The trust is managed by a trustee, who protects the trust property for the benefit of the beneficiaries.

Sounds good - as long as trustees are honest individuals who don't use the trust as a personal ATM, and simmering rivalries among beneficiaries don't explode, Pankauski says.

"Some trusts will be competently managed," he says. "Others will be abused in a number of ways the creator of the trust had not intended."

The best way to ensure money is handled correctly - and honestly - is to pick the right trustee, but the right one may not be obvious, he says.

Pankauski, founder of the Pankauski Law Firm (www.pankauskilawfirm.com), offers perspective on how to choose a trustee.

·  Don't choose just anyone! Family members, friends and even felons theoretically could be entrusted with managing an inheritor's money. But tread carefully. "Your hard-earned money could be fought over, misspent or squandered if you leave inheritances in a haphazard way or choose a trustee who handles the trust improperly," Pankauski says. A family member often is chosen, but he warns that can lead to ill will among relatives. The decision on the trustee should be treated like a business consideration, not a personal one.

·  Multiple trustees are allowed, but can cause problems. Personal relationships that were previously cordial can turn icy when there are multiple trustees. Co-trustees administer the trust by majority rule unless the trust document demands unanimous decisions. A common problem Pankauski sees is when there are two co-trustees who don't get along, but must agree on everything. It may make sense to have a third co-trustee, such as an impartial trust attorney or bank or trust company, to serve as the tiebreaker.

Pankauski also offers perspective on whether to be a trustee.

·  "I am trusted, but should I be a trustee?" Being a trustee is a great responsibility. Perfection is not required, but incompetence won't be tolerated, Pankauski says. Criticisms could flow freely. If you're holding a lot of cash and the markets go up, beneficiaries complain that you failed to capture those gains. If you're fully invested in the market and the market takes a dip, the beneficiaries complain that you are overexposed. If one of six beneficiaries requests funds for a minor child's education, the other five will want a similar distribution?regardless of need. You may be fairly compensated for your duties as trustee, but the money may not be worth the potential headaches.

·  You don't have to accept the appointment. You can decline to serve. Merely sign a one-page document, which can be as brief as a sentence, stating you decline. No reason is required. Deliver your statement, and a copy of the trust, including all original documents you have, to the beneficiaries and the successor trustee named in the trust document. If no successor trustee is named, you should notify the beneficiaries in writing that you decline to serve and they should retain counsel to protect their interests.

You can agree to serve and later resign. But doing so raises a host of issues, Pankauski says. You can't just ditch your duties. You are still in charge until there is a smooth transition to a successor.

Regardless of whether you plan to create a trust, or you have been appointed trustee of one, you will want to seek legal counsel, Pankauski says.

"The laws that govern the management of a trust vary from state to state and evolve over time," he says. "The right guidance is essential."

About John Pankauski

John Pankauski, the grandson of Polish and Lithuanian immigrants, was deeply influenced by his parents - products of the Depression and World War II who imparted their values of hard work and thrift. He studied political science at the University of Massachusetts at Amherst. He attended Suffolk University Law School in Boston, and later obtained a master's degree in law from the University of Miami School of Law's Graduate Program in estate planning. He founded the Pankauski Law Firm PLLC, (www.pankauskilawfirm.com), to create a boutique firm of highly talented professionals that restricts its practice to administration and litigation of family wealth and disputes involving wills, trusts, and estates. In addition to trying cases and handling appeals, the firm defends trustees and advises beneficiaries on their rights related to inheritances, power of attorneys, contested guardianships, investments, and family business interests.

04 May 2015

Quad Cities Families to Suffer From Rauner Budget, New Report Shows

By Neal Waltmire

Local Advocates Argue Damaging Cuts to Services for Children Can Be Avoided with Adequate Revenue

 

Rock Island, IL - Today, advocates in the Quad Cities - armed with a new analysis from the Responsible Budget Coalition (RBC) - are pushing back against Governor Bruce Rauner's proposed FY 2016 cuts.  The RBC analysis breaks down cuts geographically and shows families in the Quad Cities area will suffer due to steep reductions in services for children, home services, autism, community care, public safety, and economic development.

Despite warnings from bond houses that a failure to extend 2014 income tax rates would cause serious harm to Illinois' families, politicians failed to act.  Failure to extend the tax rates resulted in a $5-6 billion revenue gap for the upcoming budget year, and as a result, Governor Rauner has been pressing lawmakers to pass a budget with $6 billion in cuts to vital programs.  The cuts are the result of expiring tax rates, which are primarily going to corporations and upper-income individuals.

Advocates that work with at the Arc of the Quad Cities Area are advocating for a responsible state budget.  The Arc of the Quad Cities Area's Respite Program provides children and adults with disabilities care throughout the workday so that their families can work.  Rauner's FY 16 budget proposes the elimination of respite programs, resulting in a $90,000 cut for Arc.

Respite care provides families cost-effective, short-term, intermittent care for persons with intellectual or developmental disabilities. This program provides primary caregivers the opportunity to work and handle the daily struggles with the comforting knowledge that their children are well taken care of in their absence. One of the primary benefits of the Respite Care program is to defer to deter costly residential placement of individuals of disabled individuals, which is roughly $60,000 a year in a CILA setting or $240,000 in a state-operated facility.

Says Kyle Rick, Executive Director of The Arc of the Quad Cities Area, "Respite dollars are some of the most cost effective use of funding for individuals with intellectual and developmental disabilities in the State of Illinois. Eliminating this essential service is counter-intuitive and potentially ruinous for working families with disabled children."

With the deadline for lawmakers and the Governor to pass a budget just 33 days away, local advocates say they will continue to fight for adequate revenue to avoid Rauner's unnecessary and painful cuts.

###

Quad Cities Report Summary

See Full Report (Excel)

29 Apr 2015

Agriculture Secretary Vilsack Announces New Private Funds to Make Investments in Rural America

By USDA Office of Communications

WASHINGTON, April 29, 2015 - Agriculture Secretary Tom Vilsack today announced the launch of two new private funds, known as Rural Business Investment Companies (RBICs), which make equity investments in rural businesses, helping them grow and create jobs. This announcement is part of USDA's ongoing efforts to help attract private sector capital to investment opportunities in rural America to help drive more economic growth in rural communities.

"These two new private funds will provide innovative small businesses throughout rural America access to the capital they need to grow and create jobs," Vilsack said. "At USDA, we are working hard to reenergize the rural economy, and we are enlisting more and more private sector partners to help achieve that goal. Rural Business Investment Companies will allow us to facilitate private investment in businesses working in bio-manufacturing, advanced energy production, local and regional food systems, improved farming technologies and other cutting-edge fields."

Innova Memphis and Meritus Kirchner Capital can now begin raising capital to constitute their funds. Meritus Kirchner Capital has set a goal of raising $100 million, while Innova Memphis has set a goal of raising $25 million for their respective funds. Once the funds have been raised, these companies will make equity investments in rural businesses with high-growth potential.

"We are very pleased to be working with USDA to fund innovative, early-stage startups in rural America," said Jan Bouten, partner at Innova Memphis. "This being our fourth fund, we will be able to hit the ground running and build on our strong track record in early-stage investing. We will work with partners such as Memphis Bioworks Foundation and Ag Innovation Development Group to build thriving innovation communities across the country."

"We are appreciative of the leadership Secretary Vilsack and USDA have shown by facilitating the creation of these new RBICs. The RBIC application process was rigorous, with USDA and the Farm Credit Administration participating in an extensive review of all aspects of our management team, track record, and investment strategy. This is a significant milestone because now we formally can begin the fundraising process," said Grady Vanderhoofven, partner at Meritus Kirchner Capital. "The capital we raise will be invested in exceptional growth-stage, agriculture-related and rural companies, which historically have had limited access to this kind of capital. By doing so, we will help create wealth, jobs, and opportunities in rural America."

The new funds announced today were formed under the USDA's Rural Business Investment Program (RBIP). USDA is utilizing RBIP to license funds to invest in enterprises that will create growth and job opportunities in rural areas, with an emphasis on smaller enterprises. Working through the USDA program enables licensed funds to raise capital from Farm Credit System banks and associations.

Last year, Secretary Vilsack announced the creation of the first new RBIC which has already begun investing in rural businesses with high-growth potential. The $10 billion Rural Infrastructure Opportunity Fund, also announced last year, facilitates private loans for job-creating rural infrastructure projects across the country.

These efforts are part of the Made in Rural America initiative, which was created by President Obama to help rural businesses and leaders take advantage of new investment opportunities and access new markets abroad. Secretary Vilsack and the White House Rural Council convened the Rural Opportunity Investment Conference last summer to attract additional investments to rural America by connecting major investors with rural business leaders, government officials, economic development experts and other partners.

28 Apr 2015

Worker's Memorial Day Events around Iowa

By Lance Coles

Safe Jobs save lives, keep the promise alive

Cedar Rapids: April 28, 5:30 pm. IBEW Local 405 Hall, 1211 Wiley Blvd SW. Speakers: Kelly Steinke, President of Hawkeye Labor Council; Paul Iversen, University of Iowa Labor Center and Liz Mathis, Iowa State Senator. Sponsored by the Hawkeye Labor Council.  Rick Moyle rmoyle@hawkeyelabor.us or 319-396-8461

Clinton: April 28, 1 pm. Clinton Riverview RV Park (9th ave. north at the beginning of the dike). Speakers: Congressman Dave Loebsack; State Senator Rita Hart; State Representative Mary Wolfe, Clinton City Council, Mayor, Fire Chief and Police Chief have also been invited. Contact Dave Keefer 309-788-4569 or dkeefer@lu25.org.

Des Moines: April 28, 11 am. West Capitol Terrace (west side of Capitol, near Historical Building). Speakers: Commissioner Michael Mauro (Iowa Division of Labor); Director Beth Townsend (Iowa Workforce Development); and Ken Sagar, President of the Iowa Federation of Labor AFL-CIO. Sponsored by the South Central Iowa Federation of Labor. Contact Mark Cooper 515-265-1862 or mark@scifl.org

Dubuque: April 28, 5:30 pm, at the Labor Temple (1610 Garfield). Speaker: Ken Sagar, President of the Iowa Federation of Labor, AFL-CIO; Bruce Clark, President of the Dubuque Federation of Labor. Dubuque Fire Fife and Drums, UAW Color Guard. Mark Cook steel1861@qwestoffice.net or 563-590-8749

Fort Madison/Keokuk: We hung wreathes that said Hero at both Keokuk and Fort Madison Halls then we surrounded them with names of everyone who died to honor them. Contact Gary Mortimer, 319-670-1103 or garydalemo@hotmail.com.

Iowa City: April 28, 12:30 pm at the Iowa City Ped Mall. (Fountain Plaza) Ceremony. Contact Jesse Case, 319-361-3212 or jcase@iowalabor.com.

Quad Cities: April 28, 11:30 am. USW Local 105 Union Hall, 880 Devils Glen Road, Bettendorf, IA.  Sponsored by the Quad Cities Federation of Labor. Contact Joshua Schipp 309-738-6536 or schipp.joshua@gmail.com.

Sioux City: Northwest Iowa labor council will have an event at the UFCW local 222 hall at 7:00 pm. Mac Smith will be speaking. Contact Rick Scott, 712-898-4915 or atulocal779@gmail.com

Waterloo: April 28, 5:30 pm. Black Hawk Labor Temple, 1695 Burton Ave. Waterloo. Charlie Wishman, Secretary/Treasurer Iowa Federation of Labor, and others, will speak at the event. There will be other activities to honor those killed on the job.

22 Apr 2015

People in the Midwest unhappy with the way businesses answer the phone

By Jennifer Lever

April 21, 2015 - Less than a third of people in America's Midwest are satisfied with the way businesses handle their phone calls, new research has revealed.

The countrywide study of 2,234 consumers, conducted by audio branding specialist PH Media Group, discovered just 32 per cent of respondents are pleased with companies' phone manner.

22 Apr 2015

Branstad, Reynolds, Northey and Durham send letter to congressional delegation encouraging trade

By Office of the Governor of the State of Iowa
(DES MOINES) - Iowa Gov. Terry Branstad, Lt. Gov. Kim Reynolds, Sec. of Agriculture Bill Northey and Iowa Economic Development Authority director Debi Durham today sent a letter to Iowa's congressional delegation encouraging the passage of Trade Promotion Authority (TPA), reforming and reauthorizing the Export-Import Bank (Ex-Im Bank) and authorizing market-opening trade to encourage economic development and family income growth. The letter can be read here.

Since 2010, Iowa's exports have increased by nearly 39% from $10.87 billion in 2010 to $15.1 billion in 2014.

"Lieutenant Governor Reynolds and I are proud that Iowa's exports reached record levels last year at over $15 billion, increasing our state's exports by nearly 39 percent since 2010," said Branstad. "If we are to continue this strong growth - which creates jobs and increases Iowa family incomes - we know that Congress and the President must continue to look for opportunities to expand the global market for high-quality Iowa products."

"As I prepare to lead a trade mission to Brazil this week, I am reminded that the United States should be a global leader in breaking down trade barriers, as great nations embrace trade," said Reynolds. "Our nation should welcome a more transparent, rules-based system of trade around the world that helps our businesses, workers, and farmers excel in a dynamic, global economy."

The Brazil mission that Reynolds is leading is comprised of visits to Sao Paulo and Ribeirão Preto.  Highlights for the mission include exploring foreign direct investment opportunities, meetings with government and industry association officials, briefings on Brazil's trade market and Growing Iowa's Global Partnerships events.  Iowa companies will participate in meetings specific to their market entry or expansion needs.

"The Iowa Economic Development Authority continues to look to international trade and investment to expand economic development opportunities here in Iowa," said Durham. "Since the governor and lieutenant governor took office, over $11 billion in private capital investment has occurred in our state. Congress' ability to continue opening global trade markets will mean more jobs through high-quality economic development projects."

The full letter can be read below:

 

April 21, 2105

 

The Honorable Chuck Grassley                  The Honorable Joni Ernst                The Honorable Steve King

135 Hart Office Building                 825 Hart Office Building   2210 Rayburn Office Building

Washington, DC 20510                          Washington, DC 20510                     Washington, DC 20515

 

The Honorable David Loebsack                  The Honorable Rod Blum                The Honorable David Young

1527 Longworth Office Building 213 Cannon Office Building            515 Cannon Office Building

Washington, DC 20515                          Washington, DC 20515                     Washington, DC 20515

Dear Members of the Iowa Congressional Delegation:

Iowa is globally recognized for producing safe and reliable products and innovative services. Robust trade is a critical component of a healthy Iowa economy, however, too often, Iowa exports face isolationist obstacles abroad.  We believe that Iowa's manufacturers, farmers, and service providers, like financial service companies, can compete with anyone in the world when there is a level playing field.  We have all actively assisted Iowa exporters in growing Iowa's global partnerships and we know you would like to nurture those partnerships as well.  Therefore, we are writing to highlight key opportunities for you and other Federal leaders to support economic growth, family income growth, and improved national economic competitiveness by passing Trade Promotion Authority (TPA), reforming and reauthorizing the Export-Import Bank (Ex-Im Bank), and helping advance market-opening trade agreements.[1] TPA will strengthen the hands of U.S. trade negotiators and help achieve solid results for U.S. companies, farmers, and workers in ongoing trade negotiations.  TPA would also enable advancement of trade agreements, like the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (T-TIP), to empower America's job creators.  Further, Ex-Im Bank reforms and reauthorization will help level the playing field in the global market for U.S. companies.

With over 95 percent of the world's population located beyond our borders, international trade is a key component to economic growth and increasing family incomes. Scores of Federal leaders, including many of you, President Obama, Ambassador Froman, Secretary Pritzker, and Secretary Vilsack have touted the importance of trade to the American economy - and that is especially true for Iowa's economic vibrancy.  In Iowa, over 448,000 jobs (nearly one in every five jobs) depend on international trade and the majority of exporters are small and medium sized companies.[2] We have actively supported efforts, including various trade missions, to grow Iowa's global partnerships to expand exports and nurture foreign direct investment in the State.  Between 2011 and the end of 2014, the value of Iowa exports increased by nearly 40% -- from $10.8 billion to $15.1 billion -- and we want to further that trend.[3] There are 3,367 companies that exported from Iowa locations to nearly 190 countries in 2013 and over 83% of those companies were small or medium-sized businesses.[4] Export-related jobs have higher pay than non-trade-related jobs, which means that trade jobs help drive rewarding careers in Iowa communities.[5] Iowa businesses and agricultural producers recognize the importance of pro-growth trade policies to their future success.

The Ex-Im Bank is an important tool for Iowa businesses seeking to expand their markets. We believe reauthorization provides an opportunity for Congress to enact needed reforms to ensure the program's success and long-term sustainability. From 2007 to early 2015, the Ex-Im Bank helped support nearly $250 million of exports from more than 50 Iowa businesses - a majority of which are small businesses.[6] The Ex-Im Bank has helped grow exports from areas such as food manufacturing, machinery manufacturing, and plastics and rubber products manufacturing. Enclosed, please find quotes from Iowa companies regarding the Ex-Im Bank's role in connecting Iowa companies to competitive foreign markets.  We believe in a culture of continual improvement and that is why we would support efforts to improve the Ex-Im Bank moving forward.  Given that other countries utilize similar tools, your help in reauthorizing Ex-Im Bank is important to enable the financing that American businesses, especially those with little or no export experience, need to compete against their foreign counterparts in new and higher-risk markets.  In addition, Ex-Im Bank fees have brought revenue into the U.S. Treasury.

We believe that the TPP and T-TIP trade agreements will enable more Iowa companies and farmers to expand exports and services to these markets. Countries negotiating the TPP and TTIP agreements purchased $11.3 billion, or 64%, of Iowa goods exported in 2013 and the elimination of tariffs and other trade barriers would directly benefit Iowa's economy.[7] The US Chamber of Commerce has estimated that the TPP would support several hundred thousand jobs nationally by 2025, including nearly several thousand jobs in the State of Iowa by increasing goods and services traded to participating countries.[8]

We urge your leadership on these important trade initiatives - passage of TPA and reform and reauthorization of the Ex-Im Bank - to advance long-overdue trade agreements and enable our businesses and citizens to compete fairly in the world market, drive job creation, and grow family incomes.

Sincerely,

Terry E. Branstad, Governor of Iowa

Kim Reynold, Lt. Governor of Iowa

Bill Northey, Secretary, Iowa Dept. of Agriculture & Land Stewardship

Debi V. Durham, Director, Iowa Economic Development Authority

20 Apr 2015

Safe-Money Strategy

By Ginny Grimsley

Working Out A Safe-Money Strategy
Financial Consultants Say Retirees Can Take Steps To Protect Savings From Vagaries Of The Market

As people creep into the retirement "red zone" - those years just before or right after they retire - it becomes more important than ever that they find ways to keep their savings safe.

Because at that point, their retirement picture will change significantly only if they lose a lot of money, says Chris Bennett, co-founding partner of The Abbott Bennett Group, (www.theabbottbennettgroup.com).

"They are not going to change who they are," Bennett says. "But if they lose a bucket of money, they are not going to go out to eat, they won't travel, they won't be able to leave money to their children and grandchildren. They will end up having to make sacrifices."

In other words, they won't be living the retirement they envisioned all those years they were saving a nest egg.

Having a "safe money" strategy is key to a secure retirement, say Bennett and Michael Abbott, CFO of the firm. It's important to be able to create an income stream that the retiree won't outlive.

There are several areas you and your financial professional can focus on as part of an overall "safe money" strategy, Abbott and Bennett say. Here are two examples:

• Rate of return vs. sequence of return. The average rate of return on an investment can be misleading, they say. That's because in reality how well you hang onto your money depends more on "sequence of return." That is, exactly when do those profits and losses come about?

To see how that might work, imagine a 50 percent loss followed by a 50 percent gain. That would appear to average out to a zero rate of return. But that's not how it would look in your portfolio, Bennett says. If you have $100,000, a 50 percent loss drops it to $50,000. The market rebounds with a 50 percent gain. But a 50 percent gain on $50,000 just increases that investment to $75,000, so you've still taken a loss.

Now consider that kind of activity over the course of your retirement as you are also withdrawing money from your savings to live on. Depending on when market fluctuations happened, you could take major hits. That's especially true if the dips come early in retirement when your savings are at their peak, and the rallies arrive late when there is less left in the account.

"One big downturn and that money could run dry," Bennett says.

Abbott and Bennett say there are tools that a good financial professional uses that can help people reduce the risk created by sequence of return.

• Maneuvering toward tax-free income. "Whatever the tax rates may be in the future, taxes can be a drag on your savings and may adversely impact your retirement security," Abbott says. So it's important to consider the tax implications of how you hold your assets.

Even those Social Security benefits that retirees draw can be taxed, but they don't necessarily have to be, Bennett says. Once again, a financial professional can review strategies that could help reduce or even eliminate the tax on that monthly Social Security benefit.

"It's possible to have tax-free income in retirement," Bennett says. "Talk about being in control. Then you can just enjoy your retirement with your children and your grandchildren."

About Michael Abbott and Christopher Bennett

Michael Abbott has two decades of experience assisting retirees with their 401(k)s and pension plans. He is co-founder of The Abbott Bennett Group, LLC, an independent financial services firm, where he serves as CFO. He is a lifetime member of MDRT (Million Dollar Round Table), an association composed of the world's best financial services professionals, and a member of NAIFA (National Association of Insurance and Financial Advisors). He holds a Master of Estate Preservation designation.

20 Apr 2015

Can Authors Acquire The Entrepreneurial Mindset For Success?

By Nicholas Depew
Publishing Sales Coach Offers 3 Helpful Insights

By mid-2014, self-published authors began taking home the bulk of all ebook author earnings generated on Amazon.com, while authors published by all of the Big Five publishers - Penguin Random House, HarperCollins, Hachette, Macmillan and Simon & Schuster - combined slipped into second place, according to the January 2015 Author Earnings Report.

While self- or indie-published authors closely follow the costly dispute between Amazon and Hachette over retail and wholesale ebook pricing, titles of all genres are faced with increasingly competitive markets, says publishing sales coach Kim Staflund.

"ISBNs - International Standard Book Numbers - continue to experience enormous growth with each successive year, and in the past decade we've seen a gold rush-style of exponential growth due to the self-publishing movement," says Staflund, founder and publisher at Polished Publishing Group (PPG), www.polishedpublishinggroup.com, which supports a business model in which authors take a proactive, entrepreneurial approach.

"To be a truly successful author who can sell enough books to earn a profit and possibly even become a bestseller, you must treat book publishing, sales and marketing as your own business. The same holds true whether you take today's supported self-publishing route or you go with a traditional trade publisher."

Staflund outlines some necessary points for making a book title a success.

•  Writing to be read takes an entrepreneurial spirit. If you want to earn a profit or even become a bestseller, a writer must treat book publishing, sales and marketing as your own business. That's true whether you're taking the self-publishing route or you use a traditional trade publisher to produce your book. If you don't expect to invest time or money in getting the word out, or assume that your publisher is solely responsible for outreach, you'll likely be disappointed by the few books that you'll sell.

•  An overview of what it means to be proactive. With so much competition today, you need to get in front of customers and communicate with them in a clear and consistent manner. You do this by virtue of book signings, readings, craft sales, art shows, media tours, social media campaigns, speaking engagements, book reviews and whatever else you can think of whenever and wherever you can. You "pound the pavement," as they say in the sales world.

"Another aspect of what it means to be proactive is to have a polished, professional presentation of your content," Staflund says. "This requires additional help including a professional editor, designer, and proofreader. You may also require an indexer, ghostwriter or publicist."

•  Your book: a project deserving of communication and a plan. Inspiration for a great book idea is necessary but insufficient for a successful project; you also need a plan. Establishing a deadline is a good start. When can you reasonably have it done by, and how much time each week will you need to write to meet your deadline? You'll need to accept this commitment, and let close loved ones know about your goal. Family and friends will appreciate your aspiration, give you your time and space, and possibly even help with your project. Additional drafts will be necessary, but at some point you'll have to know when to say when. Also, the ability to handle constructive criticism from outside eyes is essential.

"Again, it's important to remember that writing is just one of many phases in the lifecycle of a book," Staflund says. "If you want your book to have a life outside of your own mind, you'll need to appreciate the aforementioned criteria."

About Kim Staflund

As the founder and publisher at Polished Publishing Group (PPG), www.polishedpublishinggroup.com, Kim Staflund works with businesses and individuals around the world to produce professional quality audiobooks, ebooks, paperbacks and hardcovers using a supported self-publishing business model. As a bestselling author and sales coach, she shows authors how to sell their books using all the effective traditional and online tricks of the trade. Staflund has a substantial sales and sales management history combined with over 20 years of book publishing experience within the traditional and new publishing markets.

20 Apr 2015

Your Credit Score: Updates You Should Know

By Steve Burke

By Jason Alderman

Credit scoring has evolved over the last three decades and this fall, FICO made one more important change. Borrowers who have struggled with medical debt and those with a limited credit history might see better FICO numbers in the future. Even if these situations don't apply to you, understanding how credit scoring is changing can help you better manage your credit over time.

FICO Score 9, rolled out last fall, is described as a more "nuanced" version of the original FICO Score that the leading credit scoring company introduced in 1989. It is offered by three major credit bureaus - Equifax (www.equifax.com), Experian (http://www.experian.com) and TransUnion. (http://www.transunion.com). It now bypasses collection agency accounts and weighs medical debt differently than non-medical debt on a person's credit record. Borrowers with a median score of 711 whose only negative credit data comes from medical collections will see their credit score go up 25 points under the new system.

As for consumers with limited credit histories - what the industry calls "thin files" - FICO says the new system will better determine the ability of someone in that situation to repay a debt.

What doesn't FICO 9 address? At this point, the latest credit-scoring model really doesn't loosen or change requirements for mortgage and refinancing opportunities. Even so, there are many things ordinary borrowers can do to improve their credit scores and overall financial health over time.

The first step is for borrowers to review each of their credit reports once a year. Credit reports and credit scores are two different things. Consider credit scores are a three-digit summary of creditworthiness; credit reports are the detailed record of a borrower's credit history. Consumers can view each of their credit reports from Equifax, Experian and TransUnion once a year for free (www.annualcreditreport.com). Stagger receipt of each agency's credit reports throughout the year to weed out any inconsistencies, inaccuracies, or worse, indications of fraudulent credit applications or identity theft.

Borrowers are seeing something else that's new - some lenders are making the credit scores they apply to existing borrowers available for free. A few major lenders have taken part in the industry-only FICO Score Open Access Program, which lets current customers see the exact credit scoring data applied to them at no charge. FICO's site doesn't offer the names of participating lenders, but a customer should ask their lender if they are offering free scores through that program.

Consumers should know how credit scores are compiled. FICO uses five key ingredients:

  • Payment history (35 percent)
  • Amounts owed (30 percent)
  • Length of credit history (15 percent)
  • New credit (10 percent)
  • Types of credit used (10 percent).

Visit www.myfico.com for a list of tips for borrowers to improve their scores. Base FICO scores have a 300 to 850 score range, and though FICO doesn't release what it considers good or bad scores, borrowers with excellent credit typically have scores in the mid-700s and up.

There are ways to preserve and raise existing credit scores. It might be wise for borrowers to ask if they can increase the credit limit on individual accounts while paying down existing balances on those accounts. Smart borrowers generally keep their outstanding balances at 30 percent or less of their available credit limit.

Bottom line: Smart credit management starts with an understanding of one's credit reports and credit scores.

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