As an entrepreneur how do you increase your chances of hitting your business goals quicker and more efficiently? You consider hiring a business consultant…someone to work with you on a weekly basis to help keep you on track and focused while growing your business.  In short, he or she will work with you to put four main areas under a microscope to measure and track results to ensure you’re moving closer to your goals. They are:  People, Strategy, Execution and Cash.

People

A consultant will work with you to ensure you have the correct people in their positions within your company.  A consultant is well aware that People challenges impact your happiness and can either be a source of energy or an emotional drain.  Keep in mind that People issues can include conflicts with a partner or a key employee who is disrupting the rest of the organization’s effectiveness as a whole.

Strategy

A consultant will evaluate with you your business strategy…if production is not growing as quickly as you’d like, then it might be time to re-examine that strategy including both internal and external marketing.  A consultant will provide steps for you and he to take to evaluate where you are.

Execution

Execution challenges surface when your increasing production is not generating increasing collections and profit.  A consultant can work with you to both establish and measure your Key Performance Indicators (KPIs). In essence, you cannot manage what you do not measure.

Cash

Cash is the “oxygen” that runs the business.  The first law of entrepreneurial gravity is “Growth Sucks Cash”.  A consultant will work with you to calculate your Cash Conversion Cycle (CCC) which measures company-wide how long it takes between when you spend a dollar (marketing, equipment, rent, wages, etc.) until you get that dollar back.    The Kurzen Group has a tool which outlines the cash cycle and helps you create concrete ways to double operating cash-flow in the next 12 months.

Your Decision

Now it’s time to choose, which of the four decision areas will be your primary focus?  Through a business evaluation (provided free of charge) we can help you get these four steps right, take advantage of the current economy and grab market share and shore up your market dominance.

Click here for your free business evaluation.

Happy Holidays! This is my fifth anniversary of sending wishes to my readers through North Fulton Living. It has been such a joy and privilege working with them and for you. My heartfelt thanks.

If you would like to view past holiday articles and check out some unique ideas for staying within your budget during a potential budget-busting time of year, visit my Web site at www.carperwealthmanagement.com.

Though December is a time for festivities and often overindulging, we also tend to eagerly plan towards the future. We spend December reflecting, finishing projects we have started, and most importantly, envisioning our future— exercises that make us feel good. In reflection, this has been one of my busiest years, and the reason gave me this issue’s topic: Seeking a trusted advisor.

Though the markets have begun to come around this year, most of you have not forgotten the past 12 to 15 months, nor have most of you fully recovered from the market’s tumultuous decline. You may also remember how your broker or financial advisor was just not there for you—either not answering calls, not listening to you or just plain not responding to requests. Consequently, and fortunately for me, many of you ended up at my door step.

What should you seek in a financial planner? Certainly it is personal, but let me make some suggestions. First and foremost ask yourself if that advisor is credible and trustworthy?  Check into their credentials, and ask for references. Credentials are licensed through the SEC at www.sec.gov. As well, CERTIFIED FINANCIAL PLANNER practitioners can be found, in good standing or not, at www.cfp.net. You expect that professional to make recommendations (just like when you go to a doctor, lawyer or other professional). Do you have high regard for this professional’s advice?

Is the advisor proactive and respectful? It is your money and your financial future. Your opinions, goals and objectives should be the basis for recommendations you receive.

Is your advisor working on your behalf or for a company? Meaning, do you feel you are being ‘fitted’ into a mold versus partnering with your best interests at heart? Your advisor should be reliable, approachable and extend a personal interest in your wellbeing. Your financial advisor should be a dependable, caring personal shoulder to lean on, sounding board and idea person. However, they should allow you to maintain control and have the last word.

If you lost 20 to 30 percent or more during this last bear market, and enough is enough, it just might be time for a change. If your investing does not seem to coincide with your values, comfort zone or align with your goals, it just might be time for a change. Your financial advisor should be an accountability partner you trust. I can’t tell you how much having an accountability partner, for me professionally, has kept me on task and moving forward.

Your financial advisor should be as important as your doctor, accountant, lawyer or other professional you rely on for guidance and well-being. You should be confident they are putting your best interests first. Your financial future could depend on this invaluable choice.

by Erin Carper , CERTIFIED FINANCIAL PLANNER

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Erin Carper, CFP® is an Alpharetta Financial Planner and the owner of Carper Wealth Management. Call 678.566.3682 or e-mail erin@carperwealthmanagement.com, www.carperwealthmanagement.com

Erin is an Ameritas Investment Corp. (AIC) Investment Advisor Representative. Securities and financial planning offered through AIC, Member FINRA/SIPC. AIC and Carper Wealth Management are not affiliated. The above information is intended to provide general information. It is not intended as, nor may be considered, as tax or other legal advice for you. Please consult the appropriate professional advisor for your specific circumstances

One of the most confusing parts of creating a solid estate plan is how to name beneficiaries of qualified retirement assets, such as an individual retirement account (IRA) or an employer’s 401(k) plan. Each person’s needs are different and special circumstances may apply, but there are a few general rules to follow:

Rule #1: Designate a beneficiary.

First, beneficiary designations dictate where IRAs and 401(k)s go—a Last Will and Testament does not control them. The U.S. Supreme Court reinforced this point earlier this year when it awarded the first wife of a deceased member of the Kennedy family all of the benefits from his 401(k) plan. What was the Court’s logic? She was the designated beneficiary, and even though he had divorced her and changed his will, he had not bothered to change his beneficiary designation. For that reason, the plan was obligated to pay her the benefits he had accumulated in decades of service to his employer.

The second reason to make sure you designate a beneficiary is tax-related. Individual beneficiaries are entitled to stretch out the taxable distributions from a traditional IRA over a number of years roughly equal to their remaining life expectancies. If you fail to designate a beneficiary, then your estate may be required to withdraw the IRA funds (and pay the associated income tax) over only a five-year period.

Rule #2: Choose adults as beneficiaries.

One common mistake people make when designating IRA beneficiaries is naming minor children as beneficiaries. Minors are unable to claim benefits in their own name, and so if they are the named beneficiaries in an IRA, a conservatorship account will have to be established to hold those assets. A conservatorship account is not only time-consuming and expensive to create, it must be invested in CDs or equally secure investments. Additionally, conservatorship funds must be distributed to a child when that child turns 18, which makes it difficult to ensure that the funds will be spent for college.

Rule #3: Be careful when naming a Trust as beneficiary.

Instead of a minor child, a Trust should be named to hold the assets of an IRA for a minor’s benefit. However, the designation of a Trust as beneficiary raises another set of issues. For a Trust to allow its beneficiaries to stretch the distributions out over time, it must contain provisions that qualify the Trust as a ‘conduit’ Trust. Additionally, if there are multiple beneficiaries of a Trust, then the Trust must make distributions from the IRA on a schedule set by the oldest beneficiary.

The Final Word:

IRAs and retirement plans often make up a substantial portion of a person’s net worth, so paying attention to the beneficiary designations directing their flow at death is crucial to successful estate planning. Given recent changes in the laws in this field, it is a good idea to seek advice from your attorney or financial advisor to make sure your goals are met.

by Christopher Miller

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Chris Miller is an Alpharetta attorney. Contact him at 770.817.4999 or cmiller@robinsonmiller.com.

We are reminded that fearful times and struggles, followed by faith, perseverance and brotherhood is the dynamic which has historically lifted us to new heights. Last issue I quoted, “… this has been like a massive forest fire—nearly everyone got burned. And like a forest fire, it could ultimately be a cleansing experience that rejuvenates and strengthens…” (Financial Advisor Magazine, February 2009) You may reflect and say “…just a few years (months) ago we had it all.” But if you had experienced no lean times in comparison, you could not know this.

The economy appears to be rejuvenating and strengthening. How does that apply personally? Look around you and see what remains as the forest fire diminishes to a smolder. Most likely what remains is most important; your family, job, health, rebounding investments and a renewing spirit for life. Begin rebuilding, looking forward and planning for the future.

Creating a solid foundation will include a bold look at your cash flow. Spend less than you earn. Ah, you say, you have heard that a thousand times before? Maybe so, but you now need to practice this mantra. Too much leverage was the kindling for this past forest fire. Be honest with yourself; where are you spending, and is it in line with your spend less than you earn intention?

Many have been asking me about looming inflation. That is certainly a possibility. Evaluate your investment portfolio and include inflation-hedging investments to help smooth that road if it comes. You may not want to leave all your investment dollars hiding in cash. Most personal investment policy statements (IPS) project an approximate 7 percent investment return for long-term goals to be successful. The 1 to 3 percent fixed income rates just won’t do. On the other hand, if your IPS projects 9 percent or higher, then you probably want to reevaluate the reality of internal return averages.

Dollar cost averaging, systematic investing, is a widely recognized investment strategy that can help compensate for a constantly fluctuating market. Implementing dollar cost averaging may ease you into “auto pilot” that has you “pay yourself first” easily within your cash flow plan. However, dollar cost averaging does not guarantee profitability or protection against a loss.

The blanket of fear is lifting, freeing us to strengthen and rejuvenate. Spend less than you earn, build back your emergency reserves for the next time (oh sure, there seems to always be a next time, will you be better prepared?) and let’s move to resume planning for your future dreams and goals. C’mon you can be creative and resourceful.

This is Part 2 of a 3 part series. Next time I will look into opportunities for building wealth and funding goals. If you have a particular topic you would like for me to address in Part 3 or a separate article, please write or call, I would love to know and accommodate wherever I can!

Erin Carper, CFPâ is the owner of Carper Wealth Management. Call 678-566-3682 or e-mail erin@carperwealthmanagement.com, www.carperwealthmanagement.com Erin is an Ameritas Investment Corp. (AIC) Investment Advisor Representative. Securities and financial planning offered through AIC, Member FINRA/SIPC. AIC and Carper Wealth Management are not affiliated. The above information is intended to provide general information. It is not intended as, nor may be considered, as tax or other legal advice for you. Please consult the appropriate professional advisor for your specific circumstances.

The last several months I have spent a lot more time talking about investment allocations, time lines, risk factors, economic cycles, gold, short sales, interest rates, emergency reserves and slumps than ever before. A client finally caught me and cleared my perspective (thanks Chuck). Is this a financial crisis or a crisis of our faith: faith in our markets, faith in our political leaders, faith in our free capitalistic nation, faith in our fellow man, faith in our ability to overcome challenge?

I recently read in a financial magazine (Financial Advisor Magazine February 2009), “2008 was like a massive forest fire—nearly everyone got burned. And like a forest fire, it could ultimately be a cleansing experience that rejuvenates and strengthens…” Though our personal choices may not have led to this crisis, can we not participate in a rejuvenation strengthening all? If you or a friend has lost a job, or your kids need to cut back on extra activities, can we not see this as an opportunity to rekindle relationships or re-bond family ties? This is what I am beginning to hear from you. This in itself has begun to rejuvenate my faith in this great country and its people.

Note the strength of your character in weathering this storm. Pat yourself on the back when you realize that what seemed to be lazy money sitting in the money market is now your safety net. And look forward to rebuilding that emergency reserve for a next time once this crisis has passed. Your faith in our country held you to your investments, and you are perhaps now seeing your unrealized losses pulling back. Create a budget resolute in focusing you on need versus want spending habits.

How do you measure success and quality of life? Is it the size of your 401k? I don’t think so, and I am not alone. Now that you are all around your dinner table; how many eager, smiling faces do you see sitting with you ready to share their day?

This is Part 1 of a 3 part series. Join me for a closer look at rejuvenating, strengthening and building reserves for next time.

by Erin Carper , CFP ®

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Erin Carper, CFP is the owner of Carper Wealth Management. Call 770.781.2502 or e-mail  erin@carperwealthmanagement.com ,  www.carperwealthmanagementcom Erin is an Ameritas Investment Corp. (AIC) Investment Advisor Representative. Securities and financial planning offered through AIC, Member FINRA/SIPC. AIC and Carper Wealth Management are not affiliated. The above information is intended to provide general information. It is not intended as, nor may be considered, as tax or other legal advice for you. Please consult the appropriate professional advisor for your specific circumstances.

No one wants to lose money on their investments. Some want to go as far as to not ask where or how but seek a false sense of security (the recent Bernie Madoff scandal). The reality is our economy is complicated, affected by world factors and will decline periodically. I’m like you—I would like my review meetings to always be a “report” of how much client investments have increased that quarter. But I know better. That is not only unrealistic, it is not economically healthy.

The securities and real estate markets may feel like they are crumbling, but perceiving this as an opportunity to take smaller bricks and begin to rebuild may lead to your personal financial recovery as well as our nation’s.

Financial strength can start at home. Debt can keep you down. If you have a rainy-day fund, rethink—is it enough to cover living expenses for a length of time needed to find a job in today’s employment market? Scale back your lifestyle today. This will increase  your reserves in preparation for a possible job or income loss. Save for desired purchases instead of using credit.

A panic sell-off of your investments after they have suffered a decline is just “locking in” losses that you can’t recover if your money is in cash. If your investment horizon is long-term, (brace yourself) maintain tolerance and maintain perspective so you can participate in market gains when they come back. Even if you are retired, historical data shows cash investments cannot sustain your retirement income stream for long. Compromise with money you may have taken out of the market by investing back in over time, quarterly for example.

Research of the past two decades shows investors too frequently buy and sell at sub-optimal times. The end result was investors averaged a 4.48 percent return when the S&P 500 Index returned 11.81 percent. Some have the mindset in bad markets to think they’ll wait until it gets better. Consequently, they end up getting back in the market after a gain has taken place.

Do review your investment policy statement to see if it is still risk appropriate for you, then check to see if your asset allocation percentage mix needs to be rebalanced. If you do not have one, now is a perfect time. If your life expectancy is 20 years or more, maintain a long-term perspective with at least a portion of your investments. If you are comfortable caring for a piece of investment real estate, then look for some deals but avoid going into debt.

Whether the news comes from the media or Internet it does provide us information, but it can be sensationalized and not always verifi able. Use your best judgment regarding investment news.

Our great country and our personal accomplishments came about from our “AQ” not our “IQ.” Think about it. Truly, was it not our resilience to the “Adversity Quotient” rather than purely intelligence? Events, we can not always control, but our personal responses we can.

It is undeniable—we are in stressful times. But our economy has been tested before and has recovered. In fact we have had seven recessions since 1957. If the last 82 years  (since 1926) of overall market growth is any indicator, is there really a bad time to start investing?

by Erin Carper, CFP ®

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Erin Carper, CFPâ is the owner of Carper Wealth Management. Call  770.781.2502 or e-mail erin@carperwealthmanagement.com,  www.carperwealthmanagement.com

Erin is an Ameritas Investment Corp. (AIC) Investment Advisor  Representative. Securities and financial planning offered through AIC, Member FINRA/SIPC. AIC and Carper Wealth Management are not affiliated. The above information is intended to provide general information. It is not intended as, nor may be considered, as tax or other legal advice for you. Please consult the appropriate professional advisor for your specific circumstances.