Transitioning from CEO to Retiree: Why You Need a 5-Year Plan

3 Steps You Can Take Now to Realize Your Goals

Today’s 50-something CEOs tend to have vague dreams of  more fishing, traveling or sailing  when they retire, but they don’t know when that might be so they haven’t begun planning for it.

That’s a mistake, say a trio of specialists: wealth management advisor Haitham “Hutch” Ashoo, CPA Jim Kohles, and estate planning attorney John Hartog.

“Whether you’re selling your company, passing it along to a successor or simply retiring, that’s a potentially irreversible life event – you’ve got just one chance to get it right,” says Ashoo, CEO of Pillar Wealth Management, (www.pillarwm.com).

A 2012 survey of CEOs by executive search firm Witt/Kieffer found 71 percent of those aged 55 to 59 have no retirement plan, although 73 percent look forward to more recreational and leisure activities when they let go of the reins.

“A lot of baby boomers have the idea that they’re just going to work till they stop working,” says Kohles, chairman of RINA accountancy corporation, (www.rina.com). “If they hope to do certain things in retirement and maintain a certain lifestyle, they’re likely to end up disappointed.”

Planning for the transition from CEO to retiree should incorporate everything – including what happens to your assets after you’re gone, adds John Hartog of Hartog & Baer Trust and Estate Law, (www.hartogbaer.com).

“Many of my clients worry about what effects a large inheritance will have on their children – they want to continue parenting from the grave. You can, but should think hard about doing that,” he says.

The three say smart planning requires coordinating among all of your advisors; that’s the best way to avoid an irrevocable mistake. With that in mind, Ashoo, Kohles and Hartog offer these suggestions and considerations from their respective areas of expertise:

1. Ashoo: Identify your specific lifestyle goals for retirement, so you can plan for funding them. To determine how much money you’ll need, you have to have a clear picture of what you want, Ashoo says. Do you see yourself on your own yacht? Providing seed capital for your children to buy a business? Pursuing charitable endeavors?

Each goal will have a dollar amount attached, and you (or your advisor) can then determine whether it’s feasible and, if so, put together a financial plan.

“But you can’t just create a plan and forget it. You need to monitor its progress regularly and make adjustments to make sure you’re staying on course, just like you would if you were sailing or flying,” Ashoo says. “We run our clients’ plans quarterly.“

It’s also imperative that you don’t take any undue risks – that is, risks beyond what’s necessary to meet your goals, he says. “You may hear about a great investment opportunity and want in on it, but if you lose that money, you may not have a chance to make it up.”

2. Kohles: Don’t sell yourself short when selling your business. “If you’re banking on money from the sale of your business, know that it’s unlikely you’ll have investors just waiting with the cash for the chance to buy it when you’re ready to sell,” Kohles says.

Buyers are more likely to offer to pay over time from the company’s future earnings — which leaves the retired CEO with no control over the business and utterly reliant on the new owners to maintain its profitability.

A good alternative is to establish an S corporation combined with an employee stock ownership plan (ESOP), Kohles says.

“You’re selling the company to the employees while retaining control until you phase yourself completely out,” he says. “The ESOP doesn’t pay income taxes – the employees do when they retire. And you don’t pay taxes on the money or the stock that you contribute.”

3. Hartog: What do you want your kids’ inheritance to say? If you have children, this decision can change their lives for the better – or the worse.

“How your assets are disposed of should reflect your values,” Hartog says. “A lot of people prefer to think in terms of taxes at the expense of values. I advise against that.”

For children, incentive trusts can encourage, or discourage, certain behaviors.

“If you’re concerned your adult child won’t be productive if he has a lot of money, set up a trust that will make distributions equal to what the child earns himself,” Hartog says.

“Or, if you want to be supportive of a child who’s doing something socially responsible, like teaching in an impoverished area, you can set it up to pay twice his salary.”

There are many creative ways to establish trusts, Hartog says. Plan about five years out and change the trust as life events dictate.

About Haitham “Hutch” Ashoo

Haitham “Hutch” Ashoo is the CEO of Pillar Wealth Management, LLC, in Walnut Creek, Calif. The firm specializes in client-centered wealth management for ultra affluent families.

About Jim Kohles

Jim Kohles is chairman of the board of RINA accountancy corporation, Walnut Creek, Calif. A certified public accountant for more than 35 years, he specializes in business consulting, succession and retirement planning, and insurance.

About John Hartog

John Hartog is a partner at Hartog & Baer Trust and Estate Law. A certified specialist in estate planning, trust and probate law, and taxation law, he has been selected to the Super Lawyers Top 100 list for nineconsecutive years.

 

Public Speaking Have You Tongue Tied? How To Get Your Message Across

“What do you do?‘ is a common enough question, yet it always seems to  take some people by surprise. The question either puts people on the spot and they freeze, or it engenders a lengthy discussion on the process of what they do rather than the essence of their job or career. Either response will lose the attention and even respect of your audience. Classes, coaching, or just a couple of tips can help. 

Plan Ahead
You know the question, prepare the answer ahead of time. Think of ways to relay your message beyond the “I do this, then I do that.” There are various tools that can help expand and focus what you do and how you describe it. Maybe you need more descriptive words, maybe better diction so your are more easily understood, maybe you are painfully aware of the dreaded vocalized pause – that umm. A personal communication coach can get you started and give you the tools you need to improve your vocabulary, practice voice diction and take a moment to pause and regroup before you continue on with your thoughts. They can also teach you ways to convey what you are saying confidently and with purpose.
Come on, Smile
In order to come across professionally, you need to be in control to capture the attention of the person or group that you are speaking with.  Learn to engage your audience (from a small cocktail group to an auditorium size audience). Control includes taking charge of the tone of your voice, inflection, pitch, emotions and body language. Remember how your mother nagged you to stand up straight? Still applies. Stand up, loosen your arms and gesture rather than cross your arms or flail around too much. And yes, smile, it actually goes a long way in audience engagement.
Be Succinct
If you have something to say, come right out and say it. Getting too caught up with details of your work can be boring to others and cause them to tune you out. A coach from sites like Noomii life coach directories can help you pinpoint what is important and special about your work and convey your passion  clearly and objectively.
Eye Contact
Whether you’re talking to one person or a thousand, making eye contact with your audience is crucial. Often, engaging audience members with your eyes is just as important as the words you speak, so you want to practice addressing the individuals personally as you talk. If you can’t bear the thought of looking anyone in the eye as you talk to a larger group – simply focus on foreheads. It looks like you are making eye contact, but you are not, and that can help as you get used to delivering your message.
Slow Down
You may be excited and in such a rush to get your point across that you talk over the other party or parties in your group. Everyone gets to have their say and being a respectful conversationalist comes with being a good listener. it’s okay if you don’t make your point right away. Even if you miss the chance to say your briliiant respote, it’s better to be considered a good listener.  If you still have something to add to the conversation, you can do so once they’ve finished.
Be Compelling  
Look at what you do as a part of a bigger picture.  For instance a DMV employee may grouse that all she does is process papers.  Or she can look at the bigger picture of what she is involved in. Suddenly she is instrumental in getting new drivers on the road – an American rite of passage. A communication coach can also help you address a room full of executives and give you tips on how to relay a story in an interesting way. Emotion, certain inflections in your voice and solid material can engage and motivate your audience.
As you go about your busy life between work, home and social functions, really think about what you are doing; make mental or real notes, create your story. So when someone asks what do you do? You not only have the answer, you may even convince them that you have a really fabulous career.    

Featured images:

•  License: Creative Commons image source

As a corporate trainer in speech and writing, Catharine Bramkamp tries very hard not to correct people during their overly long elevator speeches. To enhance your own abilities there are groups to join like Toastmasters, or you can find help through the Noomii life coach directory.

 

 

What Does A Great Promotional Product Say About Your Company?

Many differences in life – value, opinion, etc. – can be whittled down to perception; we all perceive things differently, and perception tends to be subjective in most cases. Determining value of an object or idea in the world of business can be a divisive issue – ask the financial manager what defines a valuable promotional product, and they will likely say getting the most mileage for the lowest possible investment cost. Pose the same question to the head of marketing and they’ll probably tell you it’s a promotional giveaway item that sells your brand via word of mouth.

Finally, ask the recipient of the promotional gift, and they’ll tell you that it should be something that’s useful and/or entertaining.

With a multitude of differing opinions, where does the truth lie? Here’s the thing – a great promotional item should meet all three requirements, not simply cater to one of them. The trick is to find something that encompasses all three. Keep the following in mind when you’re looking for the next great promotional item to assist in building your company’s reputation.

Familiarity – Research Your Target Market

Having a great promo item doesn’t mean much if you don’t know who to give it to. Knowing who you are specifically targeting with your promotional items, and why, is very important – ask yourself two questions when considering a promotional item:  Will the product capture the recipient’s attention and/or interest? Will it establish a positive association between the recipient and your business?

Spending some time researching your target market may also help you come up with additional ideas. For example, your research may indicate that your target market enjoys the outdoor activities. You can then focus your search for promotional products accordingly by choosing things that cater towards those interests.

Spare No Expense Or Come In On Budget?

It doesn’t help to covet a fantastic promotional product if it’s ultimately going to crush your budget. If you’ve just got to have it, what will happen is that you can only order half the quantity of a similar but lesser priced item and your campaign won’t be able to reach as many recipients as you’d planned. There is an enormous amount of promotional items available to today’s business owners – you can almost certainly find a great promotional product that fits within your budget if you are persistent and willing to search. Adhering to a budget is just as important (*if not more so) as selecting the right type of item. The bottom line – a great promotional product is one that fits your budget requirements while doing an effective job of promoting your company simultaneously.

Can You Effectively Brand The Promotional Item?

Thanks mainly to ever evolving technology; virtually all promotional products can be branded with your company logo or slogan. While there are still limitations – some items may only be available in limited colors, sometimes it may not be possible to print with more than one color – you should strive to reproduce your logo with total accuracy. If single color branding is all that is available, consider getting the promotional item made in equal numbers that are divided by the same amount of colors used in your company logo. The point is, your logo should always be instantly recognizable, even when small compromises are made.

Does It Properly Represent Your Company?

The perception of the promotional item, your company identity and the marketing campaign are all tied together – if you are a business that specializes in emerging tech and has a reputation for quality service, you will not want to use a cheap plastic promotional product that can be ordered by the thousands. Promo items are meant to bolster your reputation, brand and ultimately, your revenue, but it can be effective to present yourself, and your business, as though you have already attained these goals – in other words, be what you want others to see you as. Let that be reflected in your choice of promotional product – make it something useful that will show you anticipate their needs. Promo items that are trending or very of the moment should be avoided, but even a gimmick can be effective sometimes.

Will Your Promotional Product Be Highly Visible?

Never lose sight of the fact that marketing and promotions are all about building your brand, creating awareness and expanding your revenue. While you of course will want the recipient to actually like and use the promotional product you’ve given, a truly effective promotional product will be one that is seen by your target or intended market. This will meet your goal of giving your business greater exposure to your intended target market.

AblePromos.ca is a trusted provider of unique promotional items Canada. Create strong, lasting brand recognition with high quality corporate gifts for your valued clients and potential new customers. Choose AblePromos.ca for your next brand marketing campaign.

 

When Your Company Can’t Get Any Leaner!

Has your company’s overhead suddenly become a problem? Have your sales declined so much that your current cost structure simply isn’t sustainable? More importantly, have you decided to reduce costs, but are unsure of how to proceed, or where to focus your efforts? Well, you’re not alone. In what many economists now call the “Great Recession,” companies everywhere are scrambling to reduce expenditures. It’s a reality of today’s business environment; companies must reduce costs or suffer the consequences. It really is that simple. However, what can companies do when they’ve exhausted all options? What can they do when they simply can’t squeeze anymore? In a world where enterprises are touting the benefits of being lean, what can companies do when they just can’t get any leaner?

Should We Use Layoffs or Reduce Salaries?

Given this most recent recession, most companies have done their best to reduce expenses. However, at some point, these companies face the ultimate decision: should they pursue layoffs, reduce salaries, or both? Unfortunately, there really isn’t a definitive answer as to which strategy is best. Some argue that companies should focus on making deep cuts to their workforce, deep enough that they can immediately return to profitability. Others argue that companies should instead focus on across the board salary cuts. Yet, others claim that a combination of layoffs and salary cuts works best. Unfortunately, all of these actions inevitably lead to a substantial decrease in service capabilities. So what can companies do when they must reduce costs but are reluctant to go with these aforementioned options?

•             Outsource Payroll

Today’s companies save a tremendous amount of money by outsourcing their payroll to corporate payroll services firms. For instance, UK employers must meet stringent PAYE requirements. In Canada, there are a different set of rules pertaining to the Canada Revenue Agency, and how employers should be compliant when withholding taxes. In the United States, it’s the IRS. Each agency has a different set of rules governing how employees are paid. Each has a different set of rules on how corporations pay taxes. Finally, each has different criteria concerning withholding amounts. It can become a recipe for disaster. However, it’s less of a concern when using an outside payroll firm. In addition, outsourcing can save a considerable amount of capital.

•             Work Share Models

Most countries have provisions that allow employers to benefit from work share models. Employees work a reduced number of days. On those days where the employee doesn’t work, he or she receives unemployment insurance. The company is able to reduce its costs, while employees are able to retain their jobs. Work share models allow companies to retain high value employees without fear or concern that those employees will leave. This practice is often welcomed by both employer and employee. The impact in lost revenue is often made up by the unemployment benefits the employee receives. Work share programs are also ideal for companies who operate in cyclical and seasonal markets. These programs allow companies to match their workforce levels to their market’s business volumes. Meanwhile, employees are confident that their workload will increase once the market rebounds.

This recession has certainly taken its toll. Companies are understandably apprehensive about the future. As such, they have downgraded their forecasts and have adjusted expectations to coincide with this new reality. Outsourcing payroll management is one option that reduces costs without resorting to salary reductions and layoffs. Work share programs are also a proactive means of reducing costs. Both are solid options for today’s enterprises.

This guest post was written by independent journalist Patrica H. Hugley who frequently blogs about company finances and payroll services.

 

Make Your New Job A Stepping Stone To Your Ideal Career

Whether you are just out of college or been working in your current job for 20 years, the fact of the matter is that every person has a dream job. The career that always seems just out of reach but is the one position that you believe you would be happy to work at for the rest of your life.

The problem though, as I just mentioned, is that this ‘dream job’ always seems unattainable – but it doesn’t have to be that way.
The majority of positions fit somewhere in a tier of positions with jobs underneath that allow you to work your way up to the higher positions and jobs above on the ladder for you to continue to grow into if you choose.

This is usually know as the corporate ladder and most industries and jobs have one – you just need to know how to use it to your advantage to finally land your dream job.

How To Use The Corporate Ladder To Land Your Dream Job

1. Get On The Right Ladder

If you are serious about eventually getting your dream job then it is important that you make the right first move. There is no point working 10-20 years in a completely different corporate ladder because it will get you no closer to your dream job. Finding work anywhere in the ladder below your dream job is the best first step your can make because it puts you in a direct line towards your goal.

2. Have A Strong Work Ethic

Before you go around sprouting that you want to work your way to the top you need to have the track record to prove that you have what it takes. Work hard and be great at your current job before you try and push for a promotion.

3. Let Management Know Your Intentions

Employers like hard workers but they are more than happy to keep people in their current jobs unless they have a reason otherwise. If you are not yet at your dream job then be sure to let your manager know that you are willing to take new opportunities and responsibilities.

4. Take Opportunities

And when these opportunities do arise, sometimes they can come at inopportune times, if you are committed to reaching your goal then you need to know that opportunities usually come when you least expect it – so be aware of new options.

5. Be Patient

Climbing the corporate ladder can be a long process, so don’t expect to land your dream job in your first year. Be patient, work hard and slowly climb that ladder until you find yourself in the position you have worked towards.

Thomas writes for QLD Mining Jobs, which is website that keeps you up to date with the latest news and information Queensland mines and the job opportunities available in the industry.

 

Why Workers Need Vacation Every 2 Months

A recent study by prominent health experts has revealed that it is becoming necessary for workers to take more breaks. The increase of work hours and work loads has become so stressful it is becoming harmful to the mental and physical health of workers. While breaks throughout the day do help, they also need lengthier breaks from the entire atmosphere in order to reinvigorate themselves and return more productive.

The Post Office Travel Insurance performed a study that revealed the conclusion that workers need six holidays per year. This breaks down to a vacation every 62 days. By taking this breaks from the workplace, they returned fresh and focused, and they avoided potentially burning out.

In addition to increasing the positive attributes of the workers, it decreased the negative. Workers who waited longer than two months to take a break are more likely to display aggression in the workplace. They also report becoming anxious far more easily and get sick more frequently.

Cary Cooper, a professor of organizational psychology and health at Lancaster University, commented on the study. He believes that it is absolutely necessary for workers in every field to take these intermittent breaks. It prevents overworking which ultimately leads to burning out. While employers may cringe at the idea of letting their workers take these vacations, Cooper believes it is good for the business as well. The workers return with a better attitude and a willingness to do their best.

Cooper goes on to say that those who do not take regular vacations are at risk for becoming anxious and aggressive, but also withdrawn in both the work environment and their social life. Relationships will suffer, and communities as a whole will become less productive.

Overworking has been known to depress the immune system. Back pain is one of the most common ailments, but it often does not have a direct cause. The stress from not taking a break from work causes people to develop aches and pains. It also disrupts the sufferer’s sleep schedule which results in an inability for the body to energize itself. While many people experience this in the form of feeling drowsy throughout the day, it also prevents the body’s immune system from working at full speed. People who do not take vacations from work every two months put themselves at risk to catch a cold or the flu more than their counterparts who do give themselves a break.

Encouraging workers to take a vacation every two months promotes health for the individual and a more effective company for the employer.

Reducing the amount you pay on automobile insurance is easy if you go online to compare quotes from multiple insurance providers. Using a service like Kanetix.ca, you can compare the rates from over 40 insurance providers across Canada. All you have to do is simply fill out a quote at Kanetix and you will be able to see which insurance provider offers the most affordable rate for your vehicle.

 

A flip side: the asymmetrical gift

by Seth Godin -

Yesterday I bummed you out with a riff about favors becoming impossible to fulfill. Worth a thought: the alternative, the good news that comes with the bad, is the massive asymmetric gift.

A gift is not a favor, because no recompense is implied or expected. A gift is just from me to you, that’s it.

The internet makes it easy to give gifts to large numbers of people at very very low cost. Editing a wikipedia article, for example, is a gift for the ages, one that might be seen by a million people over three years.

This leads to a new clause in the social contract. In this environment, we expect that civilized participants will give. Just because. Because they can. Because the gift makes all of it work better.

While mass favors have to fade (too easy to ask for, too unfair at scale), mass gifts show up to change the equation. Gifts are easy to scale, now, the more generous, the better. For all of us.