Nancy D. Butler's Blog

There are a lot of tough things about being a small business owner.

–  Being organized and knowing how to properly prioritize the work

–  Knowing when and who to hire for staff, how to compensate, train and manage them​

–  How to properly manage erratic income and still pay all bills on time

​-  Delegating all work that staff could and should be doing so you are only focusing on the work you, as the owner should be doing

–  And so much more

​It is impossible to pick only one because if the others do not receive equal attention, the business will not achieve the level of success it otherwise would, and could fail. As a business owner you have to be good at a lot of things and when you are not good at it, know and be willing to hire someone who is. That is one major key to success for business owners.

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There are several things a business owner can do to better position themselves to handle an “unplanned retirement”. Think of it this way. If something was to happen today and you could no longer be a part of your business, what is it worth to a buyer in its current state?  What ongoing revenue is in place verses a one-time sale? Do you have systems in place that enable the business to run well without you?
Work today to structure your business as though you needed to sell it tomorrow. Also consider setting up and funding a buy-sell agreement with another business owner who either has a business similar to yours or complimentary to yours. You can be each other’s “back up retirement plan”.

The post Planning for the Unplanned in Retirement – for the business owner appeared first on Above All Else.

There are several situations where it may be appropriate for adult children to want their parents to purchase and pay for life insurance. Here is one such example when life insurance may be the best solution.

Parents I met lived a in family home with many acres of land that has been in the family generation after generation. When the parents die, there is not enough cash available to pay the taxes that will be due at the time of their death. Some of the land could be sold to pay the tax and keep the remaining land in the family. The parents and the rest of the family did not want this. Keeping all of the property in the family was very important to all involved.

One solution is to buy a second to die life insurance on the parents. A second to die policy can be easier to qualify for than an individual policy on each parent since the money is only paid out after the second insured dies. Since the tax will be due at the second death, is can be a great solution.

The amount of coverage to purchased can be calculated by estimating the amount of tax due at time of the second death, keeping in mind the future estimated value of the real estate.

If this policy is purchased within an “irrevocable life insurance trust” there will be no tax due on the death benefit when it is paid out. Of course, the earlier you purchase the policy, the lower the cost and the better the chance that you will qualify to purchase it. If you wait too long, this solution may no longer be available to you.

There are a few options for how to pay the premiums. Some times even though there may not be a lot of investments or cash at hand to pay premiums, often as we age we are not as active and do not spend all of the income available to us. If that is the case, it makes sense to take a portion of the money you do not need to have a good life and use it to preserve what you have spent your life to build.

Here’s another option to consider. If the parents cannot afford to pay the premiums it may make sense for the people that will inherit the property to share the cost of the premiums. Having each person pay a small amount yearly can enable them to keep the family legacy in tact, which is the ultimate goal.

All insureds will need to answer questions and sign the life insurance application. So, you will need to have them onboard and explain the importance of what you are suggesting.

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There are many benefits to using a credit card if you handle it properly. Here is one to consider.
Paying for college
Even if you have other ways you are paying for college, such as personal loans, home equity loans, etc. consider first paying the bill with a credit card and then pay off the credit card with the loan money. Here’s why. If you pay off the credit card right away you will pay little to no interest. But the real trick is to have a credit card that gives you points for every dollar you charge. You can then use all those points you accumulate from charging college tuition, fees and expenses to get things you need at no additional cost to you. We used the points for air fare to get our daughter home from college, purchase holiday gifts, and so much more. The higher the cost of the college, the more points you’ll have. Make sure to pay off the credit card right away or the interest can eat up and surpass any advantage the points gave you.

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When nearing or in retirement you may be tempted to take a portion of your savings and pay off a mortgage or other debt so you won’t have it in retirement. This may not the best way to handle your finances.

Think of it this way. The lump sum you take to pay off that debt could very well earn more than the debt costs. And it may cost you even less if it provides a tax deduction.

For example, the Dow Jones Industrial Average grew from 8,146 on July 10, 2009 to 26,112 on June 17, 2019, a difference of 12.35% per year. This was during a time when debt interest rates were very low. If you have high interest debt, consider refinancing it, if appropriate. A properly diversified investment portfolio has historically provided a higher return than low interest rate debt over time.

Also, if you take the lump sum today to pay off the debt, your money is gone forever. If you continue to make the debt payment, the loan will eventually be paid off and you will have that monthly amount and the invested funds available to provide you income for the rest of your life.

The post Money mistakes to avoid appeared first on Above All Else.

Here’s an idea for a low-cost way to reward employees. Keep a supply of lottery tickets, movie tickets and gift cards on file. When an employee does something exceptional, hand one to them and explain that you appreciate what they did.

If someone else manages the staff, provide the gifts to that person to hand them out instead of you. You can keep a little higher-priced gifts on hand for you to give to the manager when he or she does an outstanding job.

The post Employee Reward Ideas for Small Businesses appeared first on Above All Else.

When saving for retirement during our working years, we often want the greatest tax advantages available to us because we think our taxable income may be higher during our earning years than in retirement. However, for many that is not the case. Prior to retirement you may have mortgage interest to deduct, 401K or other retirement plan deductions and children to claim on your tax return. In retirement, if you plan well, you may have no mortgage interest or children to claim, to deductions for retirement plan contributions and your income may not be much different than when you were working.

 

Here is what I recommend. Balance how you invest between taxable, tax deductible and tax deferred investments. By having money in all three areas, when retirement comes, you will have more control over how your income is taxed based on where you take withdrawals from. It is important to keep from having most all of your assets in tax deferred positions in retirement.

The post How should younger people think about retirement taxes while saving for retirement? appeared first on Above All Else.

Successful Entrepreneurs are not only willing to step out of their comfort zone but they seek out opportunities to do things differently to take their business to the next level. Whether it be learning new technology, changing a system you have used successfully for years or trying something completely new, it is about being flexible and confident enough to uncomfortable and move forward.

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Many people spend more of their awake hours at work than anywhere else. Life is too short to not enjoy what you do. As an entrepreneur, you are in a unique position to be able to create the ideal team. Learn what you enjoy doing and are great at and what you do not enjoy doing and are not good at. When hiring your team learn the same about them when interviewing them. You should not hire a “clone of you” but instead people who are good at and love doing the things that are not your strengths.

Step Out of Your Comfort Zone

Successful Entrepreneurs are not only willing to step out of their comfort zone but they seek out opportunities to do things differently to take their business to the next level. Whether it be learning new technology, changing a system you have used successfully for years or trying something completely new, it is about being flexible and confident enough to uncomfortable and move forward.

Many business challenges are similar for men and women. See the articles in “Success in Business” category for more helpful information.

The post No One is Good at Everything. Learn What You Are Good at And What You Are Not appeared first on Above All Else.

Have a clear vision of what your business will be in the future.

It’s important to have a vison, to know what success is to you and how you will know you have “arrived”. Is success a certain amount of income? Is it how many people you reach? Is it how much product you sell? Or is it something else? Be clear about your goals. Know them whether they are big or small.

Set your goals. What are reasonable goals?

It is not a reasonable goal if it is something that will fall into place on its own with little work on your part. It is not a reasonable goal if there is no reasonable chance that you can attain it. A reasonable goal is one that you have to work hard for, but if you do, you can achieve it.

Create great habits.

Successful Entrepreneurs adopt healthy habits now and throughout their life. They embrace change and seek it out. They have the ability to create habits that work for them. What are you doing that isn’t working? You don’t need to tackle everything at once. You only need to continually make steps in the right direction. What is one habit if you changed it today, would have a great impact on the success of your business? Grab it and work on it now. Set a time line for the outcome you need and when you will have it completed.

The post What You Need To Focus On To Be Successful appeared first on Above All Else.