d-mars.com Business Journal 53

august 2011

INSIDE

Inspire, Inform & Educate

Getting Your Finances Together

53 RD Edition

The Truth About Millionaires Truth or Myths About Millionaire Status.

PAGE 12

People with Disabilities Can Get a Ticket to Work

By Nikitia Johnson Millions of Americans receive disability benefits from Social Security and there could be good news for many of those who want to work.

PAGE 13

James E. Boston, Crawford “Mickey” McGill, Eric Rumbaugh & MR. D-MARS “Our incomes are like our shoes; if too small, they gall and pinch us; but if too large, they cause us to stumble and to trip.”

- John Locke

Borris L. Miles Independent Insurance Agency Congratulates its 2011 College Scholarship Recipients!

“He’s Not Heavy, He’s My Brother!”

PAGE 22

Kenneth Reed World Pay

Tony Dixon & Ron Lewis Elite Medical Transportation

Quintin Wiggins EQ QuickBooks.com

Joyce Chatman Blessed Williams Multi-Services

Why Do We Always Fight About Money?

By David Berky Few Steps on helping you get started on your Anti-Emergency Fund™ PAGE 25

Introducing Cullen Care Pharmacies New Vitamin Line The Customer is number one!

See pg. 6-7

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August 2011

August 2011 3.

Behind The

Journal

Publisher’s Message

Keith J. Davis, Sr.

SR. PUBLISHER Keith J. Davis, Sr. VICE PRESIDENT Kevin Davis EDITING CONSULTANT Sharon Jenkins OPERATIONS COORDINATOR Stephanie Myers ADMINISTRATIVE ASSISTANT Abbey Rodriguez DIRECTOR OF SALES Eric D. Goodwine ACCOUNTING MANAGER Eugenie Doualla SENIOR ACCOUNT EXECUTIVE Mike Jones C.T. Foster Pastor Freddie L. Davis, III Dwight Jones PHOTOGRAPHY L.C. Poullard

Grady Carter MARKETING CONSULTANT Johnny Ray Davis, Jr. Barbara Wiederhold MULTIMEDIA DIRECTOR Andrea Hennekes LAYOUT & GRAPHIC DESIGNERS Ghuzzala Malik (Faith) Michael J. Martinez DISTRIBUTION Booker T. Davis, Jr. Johnny Ray Davis, Jr. Rockie Hayden CONTRIBUTING WRITERS Sharon Jenkins Chemain Evans Kimberly Griffiths Nikitia Johnson Lyle Evans Noel Pinnock Dr. D.L. Jones Charles Swindell Cindy Morus David Berky Tom Levine

This month’s theme is “Getting Your Finances Together.” This is an interesting theme for a nation that is in the midst of an economic crisis, but it is relevant for such a time as this. Often in the midst of conflict, we must return to the basics in order to remedy the thing that is at the root of the problem. Money is not the root of all evil, but the love of it is. Developing a healthy relationship with money is critical to your success and the recovery of our nation. You can have it all, but do it the right way. If we all practiced good sound financial stewardship, then possibly we could have bypassed the recession. Imagine a world like that, and attempt to do all you can, beginning with your own household, to start a revolution by getting your finances together.

CONTENTS Boston, McGill, Rumbaugh and Associates: Team Work Making Your Dreams Work........ 5 Cullen Care Pharmacy - Your Neighborhood Pharmacy..................................................... 6 Caring Hands on the Wheels of Health Care...................................................................... 8 What WorldPay Brings To the Table?.................................................................................. 11 Setting up a Budget............................................................................................................. 11 6 Tips on Getting Your Finances Together........................................................................... 12 Learn How to Bank Like a Banker....................................................................................... 12 The Truth About Millionaires................................................................................................ 12 People with Disabilities Can Get a Ticket to Work.............................................................. 13 The Safety Net for Aged, Blind, Disabled People with Limited Income and Resources..... 13 Back-To-School Checklist: Supplies, Clothes, Social Security Form................................. 13 Designing a Budget Around Your Take-Home Income....................................................... 15 Navigating Our Ever-evolving Economy.............................................................................. 16 Stop Spending: Start Saving............................................................................................... 16 Managing Your Business Finances is a Quick Books Solution........................................... 19 Watson’s Friends Help You and Social Security.................................................................. 19 Joyce Chatman, A Woman with a Mission.......................................................................... 20 MetLife Study: Attract, Retain, and Reward with Executive Bonus Plans.......................... 22 Create your own Anti-Emergency Fund.............................................................................. 24 Enhance Your Finances and Improve Your Credit Score.................................................... 24 Why Do We Always Fight About Money?............................................................................ 25 8 Point Checklist, Evaluating Online Lenders...................................................................... 27

MR. D-MARS Tip of the Month “Money won’t create success, the freedom to make it will.”

-Nelson Mandela

“d-mars.com is certified with SBE, HUB, DBE & Port of Houston SBDP.”

D-MARS.com Business Journal 7322 Southwest Fwy, Suite 805 Houston, Texas 77074 713-272-9511 . Phone 713-272-6364 . Fax 1-800-453-8752 . Toll Free www.d-mars.com

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August 2011

August 2011 5.

Boston, McGill, Rumbaugh and Associates: Team Work Making Your Dreams Work

By Sharon C. Jenkins, Contributing Writer

“It’s really not about what you make, but what you keep.” Crawford “Mickey” McGill Ameriprise Financial is the largest financial planning company in the world with over

12,000 advisors nationwide. There are over 200 representatives stationed

in the Greater Houston Area alone, which speaks volumes to the success of this Fortune 300 Company. Boston, McGill Rumbaugh and Associates are a financial advisory practice of Ameriprise Finan-

cial Services, Inc. They have three offices strategically located in Clear-

lake, Houston (Beltway 8 and Richmond), and The Woodlands. They shine brighter than the rest because they focus on a “client first” strategy. Their goal is to make life easier for their clients through simplification and a reduction in tax liability approach, “so that they can get back and do their jobs” and enjoy their lives. Their target population is small business owners and corporate executives.

Between the three partners they have a total of 50 years combined experience, which allows them to provide a team approach to helping you handle your finances.

Each partner has expertise in different areas such as taxes, financial planning,

fixed assets, small businesses and corporate executives.

One of their frequently used strategies for individuals is Net Unrealized Appreciation (NUA). The NUA is important if you are distributing highly appreciated company stock from your tax-deferred employee-sponsored retirement plan, such as a 401(k). Upon the distribution the NUA is not subject to ordinary income tax. This usually results in a 10 – 15% tax savings. They currently have an $115,000,000 book of business.

Their business strategy for small business owners is based on the premise that they often blend the personal and business financial planning needs

with a tax benefit, when you exercise it, of not having to pay ordinary income tax. Instead, the options are taxed at a capital gains rate. ) For those of you who are near re-

together. Boston, McGill, Rumbaugh and Associates assist their clients in developing an optimum mix between the two. They also come in and act as the conduit between the business owner and their CPA. 88% of Americans over pay taxes every year.

This Ameriprise team helps the corporate execu-

Some people may be in retirement, longer than they were employed.” It discourages him when he hears the horror stories about retirees losing half of their assets due to the mismanagement of their

tive minimize their tax liability and assists them in making better investment decisions in regards to incentive stock. (A type of employee stock option

tirement age, Mr. McGill stated, “Retirement is one of the most important decisions that they make.

stock portfolio. If managed correctly they could live off of the interest instead of having to work another job.

Boston, McGill, Rum-

baugh and Associates are responsible corporate citizens, educating graduating high school students and college age young adults are a passion of theirs. Annually they hold a seminar to help this population better understand the need to save and to avoid creating credit card debt while in college.

They believe that “you can change a generation by changing their mindset” and they help empower them to do so. The team is also available to do financial planning seminars for your non-profit, school, or church organization.

The realization of “your” dreams is the synergy that motivates this team to provide all of its clients with the best possible service. Somewhere in Houston there is a very happy fellow because Boston, McGill, Rumbaugh

and Associates helped him become a small business owner after working hard for a company for several years and saving over a million dollars in a retirement plan. Utilizing their expert advice, he was able to start his own company without a bank loan and save on his taxes all at the same time! If that’s not “team work making your dream work,” then what is? For more information about this amazing Ameriprise team go to http:// www.ameripriseadvisors. com/crawford.m.mcgill/ or call 281-212-2744.

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August 2011

Cullen Care Pharmacy –

Your Neighborhood Pharmacy Delivering Natural Healthcare Products Lipids • Mineral Formulas • Vitamins A, B, C, D, & E • Specialty Formulas (to address specific health concerns)

C

ullen Care’s mantra is “The customer is number one! In a world where old fashioned customer service is virtually extinct, Cullen Care shines bright.

It’s a place where the pharmacist knows your name and your diagnosis. Two locations, nestled in the heart of the inner-city, are the place to go when you have a pharmaceutical request or just need a hug. Customer loyalty is at an all time high because your health is a major concern of the pharmacist, Mr. James H. Dykes, R. Ph., and his staff of 17, and it

shows. They offer free prescription delivery to your home and to your job, patient continuing education and counseling, specialized services for Medicare and Medicaid Patients, 24 hour Emergency Pharmacy Services and Wellworks vitamins that offer natural assistance in the healing process. They even call their customers to remind them of prescription refills.

Speaking of vitamins, Mr. Dykes has created a vitamin line specifically designed to supplement your health care needs.

He has taken his commitment to improving your health to the next level in developing Cullen

Care Specialty Vitamin Line.

It contains more than 200 individual high quality products that fall into the following nine categories: • Multiple Vitamins & Minerals and CoQ10 Formula • Joint, Muscle & Disc Formula • Enzyme and Probiotic Formulas • Antioxidants & Bioflavonoid Formulas • Amino Acids, Herbs, Relaxants & Sleep Formulas • Fatty Acids & Natural

If you are looking for a multiple vitamin to supplement your current eating regiment, the Essential Performance Ultra Max may be the missing link to your optimum health. Ladies, you may be interested in Estro Sup-

port, a supplement that promotes estrogen function. Having trouble sleeping at night, Sleep-Ease may be your ticket to a good night’s rest. Feeling sluggish and run down, perhaps your body needs a cleansing; Detox Support will have you looking like a new penny in no time. Going on a diet and you are concerned about the slump that usually comes with changing your eating habits, the Energizer Formula will keep you energized and on top of your game while you slim down.

Gentlemen, if you want to win the battle against one of the prevailing diseases among African American men, try their Prostate Health Support.

Cullen Care Pharmacy lives up to its mission to provide quality customer care to its clients in rendering excellent service. They are also now providing quality products in their new vitamin line, just because Cullen Cares!

August 2011 7.

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August 2011

Caring Hands on the Wheels of Health Care

Elite Medical Transportation is a family owned business that focuses on providing the best there is to offer in EMS services. Owned and operated by two brothers who were born and raised right here in Houston, these gentlemen desire to have a positive influence on others and by giving back to their community.

Elite brings over 20 years of

experience and dedication. Ron the eldest of the two brothers is a 15 year Navy veteran serving as a field medic and State of Texas certified EMT who also possesses a degree in Forensics from Ashworth University in Georgia. It is these qualities that have afforded Ron the skills necessary to provide superior care to the Houston community. While Tony is new

to the medical field, his determination, intelligence and strong willpower partnered with his brother’s ingenuity will be a sure win for the Elite team.

Tony has an Associate degree in Computer Technology and is a certified Millwright, VFD Technician and Failure Analysis inspector.

Elite was created on a foundation of professionalism, courtesy, punctuality and compassion. They understand the worries involved with caring for a loved one, so they erase one worry away from their clients mind. By transporting their patients in a timely and efficient manner, Elite guarantees to give you and your family the care that you deserve. With the knowledge, energy, and passion that these brothers have they are bound to make their mark in the EMS field and the medical industry.

Elite provides BLS transportation for the following: • Chemo-therapy patients • Dialysis patients • Hospice patients • Nursing home patients • Psych patients With the ever changing world of healthcare administration, Elite has partnered with Toni Cormier of Bryona Healthcare Consultancy, a specialist in start-up/new healthcare services, to ensure quality care is given to their patients from every aspect.

It was founded on standard industry principles, compliance adherence and financial soundness, which was the green light for the Bryona partnership in ensuring the highest level possible in customer service and satisfaction.

It is becoming ever so difficult for caregivers to stay informed of the changes of care and services that are covered under their healthcare plans. This partnership will allow Elite to offer an excellent level of customer service from the initial point of contact regarding transportation for its patients. It’s at this point of contact that Elite will be able to extend clear communication regarding services offered and how the patient’s healthcare plan will be affected. Ron and Tony would like the community to know that this same uncompromised dedication will be given to the care and safely transport of all its members.

August 2011 9.

10. August 2011

August 2011 11.

What WorldPay Brings To the Table?

As specialists in the restaurants industry, WorldPay has a unique understanding of your business needs, providing affordable, flexible, scalable solutions that grow with your business. In fact, more than one-third of our US customers are

restaurants, ranging from large chains to hometown favorites.

Whether you build your payment program a la carte or from our set menu, our expertise makes it easy for you to select just the right mix of features and functionality that

meet your needs.

We provide fast, reliable payment processing for the full range of cards, including credit, debit, gift and loyalty cards. WorldPay provides access and advocacy on your behalfto the Card Associations, including Visa, Master-

Card, Discover, American Express and all of the major PINsecured debit networks. Our customers can also accept Revo l u t i o n C a rd , the nation’s first PIN-secured credit card.

Faster Access to Cash.

Get access to your funds quickly – as early as the same day with a Citizens or Charter One business checking account or via bank wire – with the industry’s latest batch cut-off time of 4:00 a.m. ET. Small Ticket. Visa and MasterCard’s Small Ticket programs facilitate fast approval of transaction without the time consuming capture of a signature.

Comprehensive Certification with Industry-

Setting up a Budget

By Chemain Evans, Contributing Writers Few things strike more fear into the hearts of people than setting up a budget. We all know we need one; a few of us actually have one, and fewer still manage to live within it. Why is it so intimidating?

Maybe it seems like such an overwhelming task that you don’t even want to start thinking about it. Maybe you don’t actually know where to start. Maybe you think that it will require hours and hours to do.

Maybe you’re afraid of your money; after all, it seems to pretty much rule your life-you may get up thinking about it and go to bed thinking about it. Whatever your reason, now is the time to start!

Step 1: Where to Start

There are two essential things that you need to know when preparing a budget: what comes in and what goes out.

Now that’s an oversimplification, of course, but that’s all a budget is-income and expenses.

Start by assembling past pay-

check stubs, dividend receipts, etc., to determine your income.

A survey of the previous three months is usually good enough to establish this.

Next assemble two to three months’ worth of expenses. Get all of your bills together, your checkbook register, receipts, etc.

Step 2: Determine the Time Frame

Decide if you want to budget weekly, by the paycheck, monthly, quarterly, etc. How often you get paid may heavily influence this decision. Most people just budget by the month. Remember that you may have some expenses that happen quarterly, semi-annually, or even annually, things like insurance or car registration. You’ll need to plan accordingly (see Step 5).

Step 3: Choose a Tracking Method

Choose a method for tracking expenses (and income, if desired). Simple Joe offers the

Expense Tracker PC software as an easy and user-friendly way to track expenses (see http://www. simplejoe.com/expensetracker/ index.htm).

Quicken and MS Money is also good tools if you are pretty computer literate. You can also set up a spreadsheet program; if that’s something you enjoy doing.

You can even use good old pencil and paper. Do whatever will be easiest for you to maintain.

Step 4: Establish Categories Select categories that fit your needs. Some people like just a few categories, some use a multitude of categories, and others use subcategories. It really depends on how detail-oriented you want to be. General categories might include: auto, house, food, medical, insurance, utilities, etc. Specific categories (usually best as subcategories) could include: auto-insurance, fuel, maintenance; food-groceries, takeout, dining out; etc. You can always add or

Leading, Point-of-Sale Systems. WorldPay offers direct interfaces and certifications to a broad range of restaurant payment systems, including Digital Dining, Micros 3700, 8700, 9700, E7, PAR Technology, Squirrel, XPIENT Solutions and more.

Equipment Replacement and Supplies Program. Our low-cost coverage provides you with repair and replacement for qualifying POS equipment, including terminals, printers, PIN pads and check readers. And you can also eliminate the hassles associated with low terminal supply levels. With a quick call to Customer Care, your supplies will be shipped on demand. Supplies include printer paper, terminal, ribbons, acceptance decals and manual imprint credit cards slips.

One flat monthly fee provides both equipment coverage and supply replenishment.

Convenient Reporting. Access your account information whenever you need it. WorldPay’s secure Web-based program provides a board range of reports and account information 24/7, with immediate notification of chargeback’s, retrievals and deposits.

Unsurpassed Service.

Our call center and help

remove categories or subcategories later.

Step 5: Establish Spending Amounts

Review the income and expenses that you gathered. Put the expenses into the categories you have established so you can see where you’ve been spending.

Total them and compare them to your income. How have you been doing? If you’re overspending, determine where you can cut.

Establish new budget amounts for the time period you have chosen based on past expenses. Remember also to budget for quarterly, semi-annual, or annual expenses. (Example: you pay your car insurance every 6 months; divide that payment by 6 and budget that amount every month; put it aside where it won’t be spent!)

Try to be flexible in your budgeting. Budgeting every last penny you earn may not be the best course because there are always unpredictable expenses that pop up. Be sure to budget some savings, even if all you can save is $5 a month. It’s great to get into the habit of paying yourself first.

Step 6: Track Your Income and Expenses

Whether it’s daily or weekly, or just every few days, you need

desk personnel are dedicated to one-call resolution.

You can depend on experienced staff answering your questions- saving you time and money.

WorldPay’s Gift Card Program. Maximize profits by offering gift cards – a necessity in today’s market-place. Our total package solution gives your business the edge with the latest in stored-value technology. Increase revenue from existing customers, bring in new customers, and develop your brand by using “mini-billboards”, use cards for merchandise credits, coupons, comp and rebates. We make it simple and convenient to issue your own gift cards – exclusive for your business.

Our gift cards are easy to use and can be processed through most existing terminals.

For more information please contact Kenneth Reed/Account Executive at 832.457.4380 or email Kenneth.Reed@Worldpay.us.

to sit down and enter your expenses into your tracking method. If you put it off too long it will become too overwhelming and you’ll give up.

Devoting just a few minutes a day is a lot better than three hours at the end of the month!

Keeping close track of your expenses will also help you to stay in line with your budget. You’ll be more aware of your money and more careful not to spend what you don’t have.

Remember to collect receipts for everything, especially things you buy with cash. This will make tracking a lot easier. If a receipt has purchases that fall into more than one category, divide them up accordingly.

Step 7: Revisit the Budget Often

Revisit your budget periodically. Review your expenses. See what’s working and what isn’t.

Rework the numbers as necessary. If you are single, this should be pretty easy. However, if you are married, you may have one or two incomes in your household; both people should know where the money is going, regardless of who is earning it.

Finally, remember that budgets are not set in stone. You are in control, not your money.

Make it a goal to live within your budget. You can do it!

12. August 2011

Truth About 6 Tips on Getting Your The Millionaires Finances Together A crucial step in starting your search for a new home is having a clear idea of your financial situation. By getting a handle on your income, expenses and debts, you’ll have a much better idea of what you can afford and how much you’ll need to borrow.

For lenders to verify this information, though, they’re going to need to look at your financial records. It is also important to remember that you should include records for each person who will be an owner of the house. So before you even visit the bank, make sure you’ll be able to provide copies of these important documents:

1

2.

Remember that lenders are most interested in your average income. Not only will they want to see this month’s paycheck, but also how much you’ve been making for the past two years. Steady employment is also more attractive to lenders, so if you’ve been hopping from job to job, be prepared to discuss the reasons why.

In order to qualify you for a loan, most lenders will also ask you for copies of your bank statements.

Ideally, they’d like to see a steady history of savings-or at the very least, that you’re not bouncing checks every month.

Paycheck Stubs

Bank Statements

3.

Tax Records

It’s always a good idea to save copies of your tax returns, especially if you’re self-employed. If you own your own business, it’s important to note that lenders generally consider your income as the amount you paid taxes on--not the gross income of the business.

payments as part of a divorce settlement or for child support, you can also include this as part of your gross income. Just remember that lenders will want to see a copy of your divorce/court settlement verifying the amount of the payments.

4.

6.

Dividends & Investments

Lenders will usually consider long-term investment dividends, as well as your investment portfolio, when evaluating your income.

5.

Alimony/ Child Support

Credit Report

Virtually every lender will want to see a copy of your credit report as part of the loan application process. The report lists all of your long-term debts, as well as your payment history. In general, they will require you to pay for the credit report (approximately $50), but if you have a recent copy, they may accept that instead.

If you receive steady

Learn How to Bank Like a Banker

By Kimberly Griffiths, Contributing Writer

The business of banking has changed dramatically over the last decade.

Because the cost of doing business the old-fashioned way is no longer effective, banks are interested in changing their customers’ behavior by encouraging electronic banking alternatives whenever possible.

They have done this by charging high fees for services that were once free. If you pay $200 or more in annual fees for banking, it’s time to do some competitive shopping.

Before becoming furious with your bank, it may be that the products you’re using no longer meet your personal needs. If you have an established relationship with your bank, inquire about the other types of lower-cost checking and savings account products.

By understanding the rationale of why a bank charges fees for different services will allow you to be a savvy banking customer. If human contact is required to serve you,

such as a teller or personal banker, this is very expensive for the bank. The incentive is for banks to encourage more high-tech, “low-touch” methods of meeting your needs. This is accomplished by servicing as many customers as possible with automated telephone services, cash machines, and online selfservice banking.

Since the bank needs to train their employees, provide a paycheck and benefits, pay for the branch building, in some cases supply uniforms etc., it is conceivable that your one banking transaction per pay period could cost the bank $3 or more.

If you conduct your banking via an automated telephone system, the cost of this type of transaction is much less expensive.

However, if you then require assistance from a telephone banker, the price goes from $1 for the automated process to as much as $2 for human contact. For the same reasons

stated above, the training, location, computer equipment, etc. become more expensive when human interaction is needed.

Now it is clear why electronic banking methods are preferred by financial institutions. In fact, most banks are rewarding their customers with lower fees the more the customer does his/her banking electronically. For example, even though Automatic Teller Machines (ATMs) costs the bank around $100,000 each plus the cost of the computer network and maintenance, the cost of these type of transactions drop to $0.50 - $1 each. Not only are these machines more cost effective, the 24-hour availability to customers is very convenient.

With the ease and convenience of Automatic Clearing House (ACH) payments, this “checkless” process drops the price to around $0.25 each. And finally, the Internet drops the expense even further

to less than $0.10 a transaction. I realize that there is still some fear of banking electronically, but the security that banks have instilled with computer technology far surpasses the current security of traditional banking methods.

If you lose your checkbook and wallet, the cost and worry of canceling these checks is very tedious. It’s very possible that a thief could forge your name and deplete your accounts in a matter of hours. The sophisticated computer technology, however, although not perfect, has a far more secure system to protect you and your money.

Avoid being the bank’s best customer. Attempt to cut your annual bank fees in half by educating yourself. Inquire about the options and products available to you with your banker. By asking about the alternative banking methods, you may find that your bank fees will drop considerably.

Multi-level marketing companies are recruiting people everyday with the promise of quick millionaire status. Truthfully, we all want to have “more money.” But millionaires don’t have it as easy as we think they do. Claire Bradley in her article, 7 Millionaire Myths, states the following: 1. Millionaires Don’t Pay Their Taxes It is estimated that millionaires, those in the top 1% of earners, pay about 40% of all taxes. Current tax regulation shifts may change these numbers to make this even larger than that – so think twice before accusing the millionaires in America of not paying taxes.

2. Millionaires Just Inherited Their Money According to Thomas J. Stanley’s book, The Millionaire Next Door: The Surprising Secrets of America’s Wealthy,” only 20% of millionaires inherited their riches. The other 80% are what you’d call nouveau riche: first generation millionaires who earned their cash on their own. Many millionaires simply worked, saved and lived within their means to generate their wealth – think accountants and managers; regular people going to work every day.

Most millionaires didn’t get their riches overnight when a rich relative died – they worked for the money.

3. Millionaire Feel Rich From the outside looking in, you would think that millionaires feel rich and secure, but that’s not so. Most millionaires worry about retirement, their kids’ college fund and the mortgage just like the rest of us. Those worries are greatest among new millionaires, the people who just recently acquired their wealth.

4. Millionaires Have High-Paying Jobs It certainly doesn’t hurt

to be gainfully employed, but half of all millionaires are self-employed or own a business. It does help to have a college degree, as about 80% are college graduates; through only 18% have master degrees.

5. Millionaires All Drive Fancy Cars You can get that idea of the rich guy in a fancy German car out of your head when you think of a millionaire: they actually drive a Ford, with the carmaker topping the millionaire preferred car list at 9.4%. Cadillac’s run second on the millionaires’ favorite car list and Lincolns third according to onmoneymaking.com.

6. Millionaires Hang Around the Golf Course All Day Those millionaires are all retired, with nothing else to do but hang around the golf course, right?

Wrong: only 20% of millionaires are retirees, with 80% still going to work.

It’s not as glamorous or fun, but millionaires go to work just like you do; it’s how the money gets in the bank.

7. Millionaires Are Elitists We’ve already established that most millionaires earned their money not inherited it, still go to work, drive a Ford and worry about their kids’ college expenses. Sounds a lot like the rest of America, right? Millionaires come in all shapes and sizes – some may be elitists, but most are just regular Joes who successfully managed their money.

The truth is that most millionaires are good stewards of their money, that’s why they stay wealthy.

This requires discipline, self motivation, and a made up mind. Incorporate the same strategy in your life.

So the next time someone says to you “Show me the money!” you can pull out your bank statement with pride.

August 2011 13.

People with Disabilities Can Get a Ticket to Work

By Nikitia Johnson Social Security Public Affairs Specialist Millions of Americans receive disability benefits from Social Security and there could be good news for many of those who want to work. A free and voluntary program called Ticket to Work gives individuals who receive Supplemental Security Income (SSI) or Social Security disability benefits access to meaningful employment while maintaining control over benefit choices.

Ed Bairos, a farmer and mechanic, went back

to the work he loved with the help of the Ticket program. He began receiving Social Security disability benefits after suffering from severe arthritis, complicated by a knee injury that would require 20 surgeries. He was concerned about losing the cash payments and health care he needed to survive and worried that employers might not want to hire him.

Then Bairos learned about the Ticket to Work program when he received

a notice in the mail from Social Security. The notice was a “ticket” that Bairos could use with an employment network of his choosing.

Employment networks are organizations that offer specialized services such as career counseling, job search assistance, vocational rehabilitation and training. Bairos decided to use his ticket with an employment network and returned to work. He continued to receive health care and cash benefits because of work incentives, which are special considerations that make it easier for beneficiaries to explore whether going back to work is right for them.

Pleased with Bairos’ industry knowledge and skills as a farm manager, his employer gave him a promotion and a raise.

Now he is self-sufficient, working for another division within the company.

Bairos earns more

money than he would have by relying solely on disability benefits. By using his Ticket, Bairos’ medical reviews were put on hold and he is eligible to receive Medicare coverage for up to eight and a half years after discontinuing his disability payments.

“Returning to work has made me whole again, especially being able to work in the area that I love. My self-esteem was at its lowest when I wasn’t working and on disability. Returning to work not only improved my selfworth but also my financial wealth. The Ticket to Work program and the ability to keep my Medicare was the reason I was able to return to work,” he said.

If you receive Social Security or SSI benefits due to disability, are between 18 and 64 years old and want to work, getting started is easy.

Visit www.socialsecurity. gov/work for more information on the Ticket to Work program and work incentives. You also may call (866) 968- 7842 (TDD (866) 833-2967) to learn how going back to work may affect your benefits.

dents can qualify for SSI. If you live in certain types of institutions or live in a shelter for the homeless, you may qualify for SSI. People with blindness or disability who apply for SSI may be able to get free special services to help them work. These services may include counseling, job training, and help finding work.

The monthly maximum Federal SSI payment is the same nationwide and amounts to $674 for a person and $1,011 for a married couple. However, the amount you receive depends on factors such as where you live, your

living arrangements, and income. Some states also supplement or add money to the Federal payment.

To learn more about SSI, read the online publication, You May Be Able To Get Supplemental Security Income (SSI) at www.socialsecurity.gov/ pubs/11069.html or visit the SSI page at www.socialsecurity.gov/ssi. Or call us toll-free at 1-800-7721213 (TTY, 1-800-3250778).

If you’re too disabled to work but haven’t paid enough into Social Security to qualify for benefits on your record, SSI may be the program to help you.

The Safety Net for Aged, Blind, Disabled People with Limited Income and Resources

By Nikitia Johnson Social Security Public Affairs Specialist There’s a safety net out there for those who might otherwise slip through the cracks. It’s called Supplemental Security Income (SSI).

Administered by Social Security, SSI makes payments to people with limited income and few resources who are age 65 or older, blind, or have a disability.

Funding for the SSI program comes from the general revenues of the U.S. Treasury, not from Social Security payroll taxes.

When we consider people’s income, we count things such as wages, Social Security benefits and pensions. However, Social Security does not count all of

your income when it decides whether you qualify for SSI. For example, we don’t count food stamps or most home energy assistance.

Resources we count in deciding whether you qualify for SSI include real estate (other than the home you live in), bank accounts, cash, stocks, and bonds. A person with resources worth no more than $2,000 may be able to get SSI. That resource limit is $3,000 for couples.

To qualify for SSI, you must live in the United States or the Northern Mariana Islands and be a U.S. citizen or national. In rare cases, noncitizen resi-

Back-To-School Checklist:

Supplies, Clothes, Social Security Form

By Nikitia Johnson Social Security Public Affairs Specialist

If your son or daughter is a high school student turning 18, you’ve probably spent some time shopping for school supplies and the latest fashions, working out the schedule for the academic year, maybe even looking into colleges.

If your young senior is collecting monthly Social Security benefits, here’s one more thing to add to your “Back-to-School” checklist.

To make sure that Social Security benefits continue beyond age 18, eligible students must obtain certification from school officials that they are still in high school and provide it to Social Security.

Otherwise, monthly Social Security benefits automatically stop when a student turns 18.

For more information about Social Security student benefits, visit www. socialsecurity.gov/schoolofficials. The website outlines how the process works with instructions on what the student and school official must do to ensure that benefits continue past the student’s 18th birthday. With the appropriate certification, Social Security generally does not stop benefits until the month before the month the student turns 19, or the first month in which he or she is not a full-time high school student, whichever is earlier.

Some students receive Social Security survivors benefits because a parent is deceased. Others may get dependent benefits because their parent receives Social Security retirement or disability benefits. Benefits for minor children generally continue until age 18 — or 19 if they’re still in high school. The only exception to this rule is if a student is disabled and eligible for childhood disability benefits. In that case, a separate application for benefits is required.

Social Security’s website also includes: • a downloadable version of the required Student’s Statement Regarding School Attendance (Form SSA1372) that must be completed by the student, certified by the school, and returned to Social Security; • answers to frequently asked questions for school officials and students; and • a field office locator to find the address of your local Social Security office.

So as you’re buying school supplies, trying out back-to-school fashions, and figuring out when the holiday break begins, don’t forget the important step of visiting www.socialsecurity.gov/schoolofficials.

14. August 2011

August 2011 15.

Designing a Budget Around Your Take-Home Income

By Lyle Evans, Contributing Writer Have you ever found yourself wondering where all the money has gone and it’s not the end of the month? There are things we can do to help ourselves eliminate being in this situation. Listed below are the steps you may follow, along with a brief discussion of each: 1. Determine monthly take-home income 2. Understand all bills and expenses 3. Tracking expenses 4. Building up savings and retirement

ily, you need to determine how much money is being made each month. Once this is determined the family or individual knows how much money there is to work with. If we find ourselves spending more than we make, then some decisions need to be made.

There are basically three options: get another job to subsidize your income, get more education or training to get a better paying job, or decrease your spending. Each option should be considered carefully by the individual or family.

5. Spend less then you make

2.

1.

Account for your bills and the money you spend during your daily activities. This can be done by saving copies of your paid bills and recording your

Determine Monthly Take-Home Income Whether you are a single individual or a fam-

Understand Bills and Expenses

daily expenses in a small notebook. Once or twice a month take inventory of your expenses. Daily expenses would include all money paid out of pocket except your monthly bills.

3.

Tracking Your Expenses You can create a budget using the computer to track your finances. A good spreadsheet or financial software will help track your expenditures. Create categories in your budget that allow you to micromanage your expenditures.

A brief example will help in better demonstrating this point. You may have categories like food, insurance, auto, fuel, clothing, savings, children’s expenses, etc. Come up with whatever categories fit your needs.

After you have deter-

mined what your monthly take-home income is, you need to divide it up between your categories. The total amount placed in all the categories needs to equal your take-home income. The key to making the tracking effective is to enter your expenses regularly and stay within the amount allotted in each category.

If your track your expenses effectively, in just a few months you will find areas where you might be able to make changes and save money. We have noticed how much money we spend on frivolous stuff.

Following a budget and tracking expenses takes inner commitment to be effective.

4.

Savings Account and Retirement

A big part of any

budget should be putting money into a savings account. Money in a savings account provides a little cushion in case of an emergency, loss of employment, or disaster. The amount that should be set aside in a savings account will vary depending on your circumstances.

The important thing is that you start. Over time your savings account will grow larger and accrue interest. As your employment circumstances improve, you may want to increase the amount you are putting into savings.

Just a side note about saving for retirement. If your employer has a 401K program, it would be beneficial to look into the program. Many employers have a matching program where they will match a certain percentage of what you contribute.

If your employer does not have a retirement savings plan, then you may want to look at budgeting money for your own longterm savings plan. This plan could be investing in the stock market or an individual IRA. You may want to seek advice from a financial expert.

5.

Spend Less Than You Make This has been an ageold problem. People in general have a tendency to spend more than they make. It takes strength and inner commitment to live within one’s means and save for a rainy day.

A simple rule of thumb is to spend less then you make and save as much as you can. This practice does not have to be done overnight, but steady improvements will yield great financial dividends.

Setting up your budget takes time and effort, but can be very rewarding. Getting in control of your financial future can be done with the help of a budget and some personal discipline on your part.

Good luck in your budgeting endeavors.

16. August 2011

Navigating Our Stop Spending: Ever-evolving Start Saving Economy then you will have to examine and re-examine the way your organization/company leverages the scarce resources accentuated below: • • • • •

By Author Noel Pinnock, B.S., M.P.A., C.A., CCC Contributing Writer Yogi Berra was inducted into the Baseball Hall of Fame in 1972 and is considered by many to be the greatest Major League Baseball catcher ever. He was a 15x All-Star, 13x World Series winner, and 3x American League MVP. He also went to the World Series as a manager with the Yankees and with the New York Mets, winning with the 1969 “Miracle Mets.” But, to many, Berra is most infamous for his colorful quotes, known as Yogiisms. One of his Yogissms directly applies to the theme of this month’s D-mars Business Journal, “Enhancing Your Finances.”

Yogi once said, “A nickel ain’t worth a dime anymore!” I know that you can definitely relate and attest to the notion that we are living in tight economic times and it behooves businesses as well as individuals to explore more creative and strategic ways to utilize resources more effectively and efficiently. In D-mars 41st Business Journal Edition, I wrote: “The difference between a viable and unviable business is equivalent to the difference between doing right things and doing things right. Although it is of high importance to do right things, it is just as critical to ensure you are doing things right.”

Well, doing right things is the three-word definition of effective and doing things right is the three-word definition of efficient. If you want to maintain a competitive edge or a prominent presence in your industry,

Man/womanpower Materials Methods Machines Money

The scarcity of resources should be the major reason why we should continue to simplify, economize, and clarify under all circumstances. I am a firm believer in the awesome power of prayer and synergy because we will never have all the wealth in the world. If these scarce resources were unlimited, then we could continue to throw them at problems in our personal lives and/or professional organizations and all the problems that perplex us can be solved but unfortunately, that is not the case. According to CommonDreams.Org: “According to a new study released by the Helsinki-based World Institute for Development Economics Research of the United Nations University, the richest 2% of adults in the world own more than half the world’s wealth…‘This is a reminder that most people do not live the way middle class Americans live,’ David Rauchman of the Washington, DC-based Center for Global Development.”

Given this reality, economic development is extremely important; however, economic growth does NOT guarantee an improvement in the quality of life, although it suggests that the potential for improvement exists.

Companies and individuals alike must do what is required to best leverage the resources we are given and capitalize on the creativity of yester-year to navigate the uncertainties of our economy.

We can tighten belts, consolidate the workforce, downsize, right size, or whatever but until we expand our markets, diversify our revenue streams, or tap into new ideals to promote wealth then our fight to enhance our finances will continue to be a perplexing vortex that is heavily contingent upon the forces that are causing the spin.

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By Dr. D.L. Jones, Contributing Writer Mounting pressure from a tight economy has most Americans changing their spending habits on everything from purchasing a home to going to college. But there is one group that remains steadfast in its spending habits despite the crumbling economy: Black Americans.

According to an article I read, most Blacks surveyed said they buy what they want in a good or bad economy. However, many said they feel guilty about how much they spend on expensive brands of clothing and shoes.

Sad to say, but the above is the ingredient for a financial perfect storm.

The inclination to spend combined with “keeping up with the Joneses” has left many Blacks behind the curve in terms of savings. Unfortunately, this sense of obligation has adversely affected Black’s ability to save. Many of us were not taught good financial habits as children which have adversely affected our ability to save and invest as adults. For many Blacks, these are not high priority or are not done correctly.

The decisions we make today determine how we will lead the future. The plans for a good future start today. Our future can either be good or bad depending on the long term investment decisions we make. Everyone needs a long term investment. This is more pertinent to Blacks than any other racial

group in America. However, many Blacks still do not share the importance of why we need to invest money early.

Don’t’ wait until you are in your thirties before you start saving and investing. The older you get the less time you have to invest and save. Aging comes with many health complications and this makes it hard for us to withstand the pressure that comes with working. It is for this reason that we must begin early to prepare for our lives after retirement.

We must teach our children to invest money early because no one knows how the future will be or what it brings. In fact there are no guarantees that one will stay healthy long enough to retire in their sixties or seventies.

From the above explanation, now you understand just how important it is to invest money

early, therefore start saving and investing now! You may be wondering just how to do it. The first thing you should do is to set your goals for saving and investing. Ask yourself how much you want to

save and invest each year. Figure out at what age you want to retire and also how much money you would like to have after retirement. Next make sure you put those goals you have set into writing so that they can guide you.

Why the big fuss on saving and investing? I’m glad you asked. Money in my opinion is not the most important thing in life, but if handled incorrectly, the lack of it can make life problematic and stressful. I have learned that it is nice to have a certain amount of money, saved or invested, which you can use if needed. I actually think that health and happiness are the two most important things in life.

Being financially endowed helps to keep me healthy and happy, as it means that I do not have to stress as much about the future.

I only really realized the importance of investing and saving money when I was in my late twenties. Up until this age, I would always spend all of my wages and did not care if I was overdrawn in the bank. I used to think that I could die tomorrow, so why bother about saving money which I might not ever use.

Black Americans do not make the same mistake I made.

If you are working you should be saving.

I know what you’re thinking; I don’t make enough to save.

That is the biggest lie that has gotten many of us in financial trouble. It’s not how much you earn that matters, its how much you’re willing to save in relation to how much you earn.

You will be surprise how much you can save with the little you have. The only thing that’s standing between your earnings and your savings is YOU!

August 2011 17.

18. August 2011

August 2011 19.

Managing Your Business Finances is a Quick Books Solution

By Quintin Wiggins Founder/President of EQQuickbooks Never in the recent history of American business has there been so many uncertainties regarding the future of business enterprises as it exist in today’s environment. From the proposed healthcare legislation, fluctuating interest rates, financial regulation or taxes, it seems as though entrepreneurs are hit from all sides. As small business owners, we need to equip ourselves with the appropriate low cost effective tools to manage our businesses and make wise and intelligent decisions.

One area that allows a business owner to stay on top of their company is the management of their financial data. Regardless of the business size or type, every business needs reliable and accurate financial data to make intelligent

decisions. Intuit, the makers of Quick Books offers small business owners the basic accounting software tools to effective manage their business financing. In keeping with this month’s theme on “Getting Your Fiscal House in Order”, I will explain the advantages of using Quick Books as a tool to assist the entrepreneur in managing their finances as though they were a Fortune 500 company.

Tax Compliance

The federal government is facing unprecedented budget deficits.

In order to address these problem a lot more small businesses will be audited by the Internal Revenue Service. In order to prepare for an upcoming audit it is usually helpful to have impeccable financial records. Quick Books will give business owners the tools to structure their records so that you are to be tax compliance. For example, a lot of small busi-

nesses use contract labor.

When setting up a vendor in the vendor file you can flag this type of vendor as “eligible for 1099.” Once all your vendors are setup, any payments made to these vendors will be stored in a system that allows you to access the report at year end that is filed with the Internal Revenue Service.

Another important feature is the tax mapping feature. When setting up your chart of accounts you can designate which accounts are captured on your income taxes. If done properly, the time invested in this initial set-up will allow you to prepare your tax reports at year end with minimum effort.

Although these are only two tax examples, they provide an entrepreneur with an idea of the power and scope of this simple product. Imagine the headache and heartburn saved by not having to run here and there at yearend trying to get your

Watson’s Friends Help You and Social Security

By Nikitia Johnson Social Security Public Affairs Specialist In February 2011, Jeopardy! broadcast its first competition that pit man against machine. Watson, an artificial intelligence computer system developed by IBM, competed against the show’s two most successful champions: Ken Jennings (longest winning streak) and Brad Rutter (biggest money winner).

Watson won, with the help of a four-terabyte memory that included 200 million pages of encyclopedias — including the full text of Wikipedia.

We at Social Security have known for some time that computers can help people. As a result, we developed and now have some of the best online services in the world. Time and time again, Social Security’s online services are at the top of customer satisfaction surveys.

So here’s a Jeopardy!

answer of our own: “You can conduct these online services at www.socialsecurity.gov.” What is the question?

• What is “get an instant, personalized estimate of future benefits with the Retirement Estimator at www.socialsecurity. gov/estimator”?

• What is “apply for Social Security retirement, spouse’s, Medicare, or disability benefits at www. socialsecurity.gov/applyonline”?

• What is “request a replacement Medicare card at www.socialsecurity.gov/pgm/links_ medicare.htm”?

All of the above are acceptable answers.

Computers are capable of making our lives much easier. In fact, you might say that using our online services makes doing business with Social Security … elementary, dear Watson.

See for yourself at www.socialsecurity.gov.

• What is “apply for Extra Help with Medicare prescription drug socialsecurity.gov/ costs at

www.

prescriptionhelp”?

CPA the information to file your return. Imagine the sleep full nights you will have knowing that you have set everything up right and you cannot wait for the IRS auditor to come to your businesses.

Budgeting

People usually do not plan on failing they “just fail to plan.” I’m sure you have heard this age old adage. A great barometer of your business performance is a comparison of your actual results to your budget.

In budgeting, a small business owner can determine how each dollar coming and going out effects their bottom line. Quick Books offers a budget module that allows you to track your actual expenses to budget. For example if you are over spending on a particular line item you can investigate what’s the root cause of this discrepancy. These reports can be run daily, weekly or at any interval.

Accounts Receivables and Accounts Payable

“Momma may have and Daddy may have, but God bless the child that has its own.” In business you need to manage your receivables and payables to survive. Business survivable is all about the cash flow. You need to know at all times who owe you and how much you owe. I cannot put it in any simpler terms. Quick books allows you to customize your invoices to your particular needs based on your preferences. You can track what items customers purchase, use debit or credit cards for payments as well as determine the day’s outstanding receivables. It also maintains the contact information for your customers. The same criteria applies to your accounts payable.

Cash

A good sales person once taught me that you save the best part for last,

so the last feature that I will highlight is cash. In a capitalist society, cash is king. You need to know where you stand every day.

A very important feature of Quick Books is the online bank reconciliation process. You can immediately know where you stand as it relates to cash by performing this feature. Quick Books can track multiple cash accounts and provide you with accurate reports with various trends and analysis.

As you can see from the aforementioned features, Quick Books can provide a small business with all the tools it needs to assist an entrepreneur in effectively managing their finances.

EQQuickbooks.com was created to teach small business owners the protocols of quick books. We offer hands on training in a classroom setting using real world examples. A lot of businesses have quick books but are not fully utilizing its features properly. Therefore, we offer set up services where we will come in and set-up your accounting records so that you can fully utilize its features. You can visit us at our

website to register for classes or call us at 713-203-9565.

We are not a CPA firm.

20. August 2011

Joyce Chatman,

A Woman with a Mission

By Sharon C. Jenkins, Contributing Writer

Joyce Chatman’s life is a testament to the disenfranchised child. When our educational system is searching frantically for teachers that produce results, Ms. Chatman has started her own resolution to the demise of

our faltering school system.

Prompted by the devastation of the inner city school children around her, she decided to go back to school to earn a double masters degree in Education and Special Education. She then returned to the Houston public school system and taught regular and special education grades K – 12 as a lead teacher, chairperson, and coordinator of Special Education services and resources. She also served as a parttime principal and assistant administrator.

In 1995 she left the public school system and became founder and CEO of The Better Way Youth Ministry Inc. This organization services the Northeast quadrant of Houston and acts as a liaison between them and other sur-

rounding communities. They have provided training and support services to over 500 families and numerous agencies including three Cashmere multi-service centers. The Better Way Youth Ministry Inc. does outreach for high school drop outs, parenting education, life skills training and placement, financial planning, and job skills training and placement. They received a grant from the Presbyterian for Empowerment Business Owner Program sponsored by Pinecrest Presbyterian Church. The students marketed t-shirts and caps.

It gave them an entrepreneurial experience. Houston Read Commission and HISD had contractual programs with high school dropouts and prevention programs which included The Better Way Youth Ministry Inc. They were also invited to participate in The National Dropout Prevention Program which resulted in a conference where kids actually were given lifelong skills to promote staying in school in Houston.

Ms. Chatman was elected

by the Read Commission to represent 130 non-profit organizations under Mayor Lee Brown’s administration. For two years, she worked with North Forest ISD, one of the lowest academic performing schools chosen by TEA in Austin with the Read for Texas Parenting Initiatives Program under President George Bush. She served as Chief Administrator and Coordinator for Fonwood Elementary and Tidwell Elementary. The program consisted of a parent/student network for the purpose of helping parents to learn English (ESL Program) and mentor their children at school and home. It also had an empowerment component for parents. They could get their GED; learn skills such as, floral arrangement and design, quilting, sewing and alterations, secretarial skills and management all for business ownership. There was also a referral program in place with the Work Source. As a result of the program, both elementary schools went from low performing to exemplary status.

“If we want the children to move beyond their obstacles, this truism then comes into play, “It takes a village to raise a child…”

It takes everyone in the household to get involved in the education process of the child. And that is from ages 0-90, all ages need to be involved.” “The key component is self esteem.” Her motto is, “I may not be able to reach the moon but I can reach the stars and I can change from I

can’t to I can and I will be all that I can be.”

Recently, they are collaborating with JC’s Credit Repair and Restoration Loan Modification Services to empower youth with entrepreneurial skills to better compete in the marketplace in the 21st century. Their big focus is developing technology training programs for youth and senior citizens, teaching them computer skills. The seniors at Barbara Jordan High School and at HCC Northline are teaching anyone who needs assistance with computer competency which hopefully leads to employment in technology with the help of JC’s Credit Repair and Restoration Loan Modification Services.

Success Story: The Turn-Around Program: Brittany, a student from Spring ISD, could not read and was very frustrated. She wanted to give up. In 5 weeks, she was reading and extremely excited.

This year she is one of the top students in her 5th grade class and she is reading everything that she can put her hands on.

She was the top scorer in her class on the TAKS test and her mother could not be more ecstatic.

Joyce Chatman has superseded her expectations in helping inner city children reach their dreams, just ask Brittany about her success and you’ll get a great big fifth grade smile as a confirmation.

August 2011 21.

22. August 2011

Met Life Study: Attract, Retain, and Reward with Executive Bonus Plans benefit plans available for solving personal needs in the new millennium. Consider the following review of its options and features.

The Double Bonus Plan

By Charles Swindell, Financial Services Representative MetLife Financial Group of Houston

Contributing Writer Today, many business owners see the executive bonus plan as one of the most cost-effective fringe

Stripped of all “bells and whistles,” an executive bonus plan can be provided as an executive-owned life insurance policy, whose premiums are paid by the business. Premiums are generally tax deductible to the business, provided they are reasonable compensation to the executive and the employer is neither a direct nor indirect beneficiary of the policy; therefore, the company must report them as taxable compensation on the executive’s W-2 form. Since the executive is responsible for paying the tax on the

premiums, it is common to “gross-up” compensation with an extra bonus to assist in paying the tax on the premiums. It should be noted, however, that if the executive’s salary is not “grossed-up,” annual increases in policy cash values may offset the tax due. In some instances, the executive may choose to withdraw or borrow policy values to pay the tax. If so, the executive should consult his or her tax professional concerning the possible tax consequences of any cash withdrawal.

It’s a Win-Win Situation The executive bonus plan may be advantageous to both the business and the executive. On one hand, the business can gen-

erally deduct the bonus of the life insurance premiums. The business also has total discretion in selecting not only who can participate, but also the amount of the bonus to be provided. On the other hand, during his or her lifetime, the executive is free to access the policy’s cash values.

Tax Benefits and Immediate Vesting The tax-favored status of life insurance makes it well suited for use in executive bonus plans. Executives with a need for cash can simply borrow policy values down to their basis at reasonable interest rates (as long as the policy is not a modified endowment contract), without paying income taxes or the penalties on early withdraw-

als required by qualified plans. In addition, the fact that the policy isn’t owned by the business gives the executive immediate vesting and 100% portability.

If the executive should die, the insurance carrier pays a death benefit free of income taxes directly to the executive’s chosen beneficiary. In order to prevent the policy’s death benefit from being subject to estate tax, the executive may assign policy ownership to a third party and pay any gift tax due (generally on the cash value of the policy). If the executive lives for three years after the transfer and does not retain any incidents of ownership over the policy, the Internal Revenue Service (IRS) generally excludes the death benefit from the estate.

The executive bonus plan may work best in C corporations whose owners and executives are in a lower tax bracket than their corporations. While the executive bonus plan may not provide sole proprietors, partners, and S corporation owners with any tax

leverage (due to the passthrough nature of taxation in such entities), it may be a useful strategy where there is a need to attract and retain key executives.

Pursuant to IRS Circular 230, we are providing you with the following notification: The information contained in this article is not intended to (and cannot) be used by anyone to avoid IRS penalties.

This article supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.

This article appears courtesy of Charles Swindell. Charles is a Registered Representative offering securities through MetLife Securities, Inc. (MSI)(member FINRA/SIPC). Metropolitan Life Insurance Company (MLIC), New York, NY, 10166. He focuses on meeting the individual insurance and financial services needs of business owners in the Houston area. You can reach Charles at the office at 832-251-5493. MSI and MLIC are MetLife companies.

Copyright © 2010 Liberty Publishing, Inc. All Rights Reserved.

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August 2011 23.

24. August 2011

Create your own Anti- Enhance Your Finances and Emergency Fund Improve Your Credit Score

By Cindy S. Morus Contributing Writer Do unexpected car repairs, quarterly insurance payments or those darned property taxes find you hard pressed to squeeze one more dollar out of an already stretched monthly budget? Or do you usually end up reaching for the plastic in your wallet to make up the difference?

Those inevitable expenses can put less stress on your bank balance -- and your mind -- if you learn to expect them and save in advance.

Too often, irregular occurring expenses get left out of our financial equation. Our income stretches to cover the regular monthly expenses and the remainder trickles away toward little things like the morning espresso or lunches out or a dozen other daily splurges. We choose not to think about the brakes that are getting spongy or the plumbing that’s beginning to make strange noises. And we end up riding a financial roller coaster, never knowing when the next crisis will throw us for a loop.

Planning and saving for those events can help prevent an ordinary life from turning into a crisis and can also cut down dependence on credit cards.

Not having savings is a major reason people get into debt -- even when they

don’t have problems controlling their spending.

An Anti-Emergency Fund™ is the way to anticipate and save for those irregular events that are anything but unexpected. The Anti-Emergency Fund™ is the foundation of the three-part savings plan we’ll be discussing in this and coming issues of Financial Fitness. With a little advanced planning, a broken water heater, a high winter heating bill or the family vacation don’t have to result in financial emergencies. An AntiEmergency account helps in saving for those variable expenses, both expected and unexpected, that inevitably occur.

Some people call this their “emergency fund,” but it’s really a savings fund that helps you prevent financial disasters. No, you can’t predict when your car is going to break down, but you can predict that it will occasionally need maintenance and repairs and set aside a little money in advance for those events.

Here are some steps to help you get started on your Anti-Emergency Fund™: Identify your irregular expenses. Take an inventory of those variable expenses that occur throughout the year. Looking back at checking account registers and credit card statements can help you do this. Some examples of these include property taxes, insurance

premiums, vacations, car tune-ups, holidays and birthdays. List as many of your non-monthly expenses as you can remember.

Write the anticipated amounts on the calendar.

In many cases, you will know when the expenses are due to occur. In others, you won’t. But you know that sooner or later a car will have problems or an appliance will break down.

Try to anticipate these expenses and list them somewhat earlier than you actually expect them to come up. Be sure to update your calendar as you discover more expenses.

Include money in your monthly spending plan for non-monthly expenses.

If your car insurance, for example, is due in May, set aside a small portion each month starting in February. That way, when May rolls around you can transfer the expense to your spending plan and have money available to pay it. Setting aside even a few dollars each month for foreseeable expenses can make it easier to manage your money throughout the year.

You may think you don’t have any “extra” money during the month to set aside, but repairing your car or paying your insurance are not optional expenses. By setting aside small amounts ahead of time, you’re avoiding larger money woes ahead.

So you may need to find

ways to reduce your regular monthly spending. By tracking your expenses, you may discover areas where you can trim your monthly spending with only small sacrifices. Costs of twice-weekly trips to the drive through or a professional manicure can add up quickly over a month. The important thing is to start today. It may be discouraging at first if you find that you don’t have enough money to fully fund your Anti- Emergency Fund™, but you’ll begin to succeed the minute you start the process. Small amounts of savings add up quickly and start compounding immediately!

One of the mistakes people make when trying to get their finances under control is not having a savings account. They may reason that it’s better to put money toward reducing credit card debt at 18 percent interest than to toss it into a low-interest regular savings account. The problem is that if you don’t have money set aside for those unavoidable bills, you inevitably end up adding to your credit card balance to cover the difference.

Stabilizing your debt means agreeing not to incur new charges and to begin paying down what you owe. A savings account is a key element in making that happen -- and in improving your financial fitness!

Seriously, You could attempt and decide the type of consumer credit repair services you may need.

Right now there are thousands of people who are having difficulties with bad credit. The recent economy has been damaging to many people’s credit histories. However, stop worrying. There are several things you can do to improve your credit scores and your credit reports.

If you look at your credit report you will see a history of how you have dealt with your finances previously and how you are currently managing your finances. It shows how much you owe and how punctual you are in paying your debts. It also shows how much debt you have acquired compared to how much credit available for you. You can get a free copy of your current credit report from each of the three main credit-reporting agencies one time each year.

The info contained on your credit report is considered to make up your credit rating. A credit score is a numerical rating based upon the factors from your credit report. It’s a representation of your predicted creditworthiness based upon your past history, your current debt load and how well you manage your debt. While you may get a copy of your credit report for free each year, you will normally have to pay for your credit score.

If you have bad credit there are some things you can do to improve your credit rating report and increase your credit rating. The very first thing you should do if you have credit problems is to make certain that your income and budget are in order.

Any repairs you’ll be able to make must have the ability to be maintained with a stable income and a solid budget.

Once your finances are in order and you are back

on your feet then you can certainly take some of the steps you will have to take in order to improve your credit rating. The first step to take is to obtain the free copy of your credit report from each one of the three main credit-reporting agencies, which in the USA are Equifax, Experian, and TransUnion. Make sure and get all of them because they report differently and you will have to work with all of them. You may also pay a fee and get a report that is tri-merged with all three.

Once you have your report you will need to check it line by line. Be aware that it is often estimated that as many as 79% of all credit reports contain mistakes. You will need to dispute the mistakes right away as it can certainly take time and know-how to get them deleted. So that you can improve your credit rating it is crucial that you get any mistakes removed. You can do this by yourself but it might be to your advantage to hire a professional credit repair lawyer who can take some time and has the experience to get the job done.

Take care of all your current debts. You do not necessarily need to pay them off but it is smart to pay them down to below 20% of the available credit line. The reason being the debt to available credit ratio is a crucial part of your credit score. Never cancel a credit card by yourself because it will make this debt ratio go down and it will hurt your credit rating.

You may also start working on obtaining new credit. If you are unable to qualify for a regular credit card or loan you can look into getting a secured loan.

Within about 6 months of diligent effort it is possible to significantly improve your credit.

In fact, after credit repair, you will be in a better position to get on with your life.

August 2011 25.

Why Do We Always Fight About Money?

By David Berky Contributing Writer Two of the keys to financial success, especially in a couple’s relationship,

are knowledge and communication. This article focuses on the aspect of communication.

Tom Monson, the Vice President of Simple Joe, Inc. was giving a series of free seminars on personal finance to people in his neighborhood. Many couples were scheduled to attend but only two or three were showing up.

Tom and I discussed the situation and wondered why attendance was so low.

We knew many people were interested and several had expressed a desire to learn more about finances directly to Tom. But when it came to showing up for the seminar they seemed to find other things to do.

As Tom and I were discussing this he commented on the behavior and attitude of some of the people who had shown up for the first two seminars. At the first seminar, Tom noticed that several of the husband and wife couples seemed a bit uncomfortable discussing financial matters with each other.

Much of Tom’s seminar involved recognizing and evaluating your current financial situation, setting financial goals and ways to measure your progress. But he was having a hard time getting the

couples to discuss financial matters between themselves.

We wondered if these couples may be hesitant to have a frank financial conversation because con-

versations about money can lead to disagreements and even fights. It has been estimated that over half of all divorces occur to some degree because of disagreements over money and finances.

So maybe these couples were hesitant to get into a public argument about their finances because they know that every time they talk about money they fight. Or they may just have had one or two really bad fights about finances and so now they try to avoid the subject.

I would venture to guess that all fights about money and finances can be boiled down to one of two root problems; lack of communication (or misunderstanding) and selfishness.

Lack of communication occurs when one spouse spends money the other had earmarked for something else. Or when an important financial decision occurs without input from the other spouse.

Or when a large purchase is made without the consultation or consent of the other spouse.

Misunderstanding can occur when the couple is hesitant to enter into a financial discussion, has trouble communicating or

just has trouble expressing financial ideas. It could be that one spouse does not fully understand a financial concept. Or one spouse is not being patient enough to have a full discussion of

the subject.

The need to be right vs. wrong in making financial decisions is often very strong, especially in men.

As the historical provider for the family, some men see finances as solely their domain. It can also be a sign of status or ego.

And in a situation where there are financial problems, many men can get defensive easily when the wife questions decisions or situations. This can lead to fights and misunderstandings.

After a discussion breaks down, the husband may feel like the wife is ungrateful for what he does and does not trust him to make correct financial decisions.

Meanwhile the wife may feel like the husband is talking down to her, does not value her contributions to the family and maybe is even hiding something from her.

This can happen when emotions get in the way of communication. It is very important to be considerate of your spouse and be careful how you phrase questions and comments.

Also it is important to ask questions when you don’t know or understand a financial situation or decision. Lack of under-

standing will lead to future confrontations. The husband may assume that the wife knows the impact of the decision they just made. Then if something goes wrong the husband can get angered at his wife’s questions because, to him, they could seem like an accusation.

Or the wife may do something that the husband does not fully understand and then the husband gets upset because “she did not tell” him what it is she was doing or why.

So how do we solve or avoid these problems of lack of communication and misunderstandings?

The first step is to leave your ego outside the door. You don’t know everything and neither does your spouse. It is important to make sure that both people understand the financial topic, how it

affects their lives and what type of decision is best for them and why.

If the wife is stronger in one area of finances, she needs to patiently explain to the husband what she knows and how it affects them. If the husband is more versed in a financial topic he should patiently explain to the wife what he knows.

If neither of them have a good grasp on the subject, “shut up” and go learn something more about it.

Also don’t be embarrassed or ashamed of not knowing something. Just because

you are the “man” does not mean that you were born with financial genius.

Just because you are the “woman” does not make you an expert on household finances and it in no way means that you are “not capable” of understanding financial topics and concepts. Don’t pigeon-hole your spouse or allow your spouse to gloss over something without an explanation that you both understand and could repeat to someone else.

We all make mistakes and we all have things to learn. Don’t let your pride or your ego get in the way of your financial success.

Don’t let the subject of money become a sore spot in your relationship. If you can remember to talk with your spouse in the same kind of patient and respectful way you talk with your boss, your conversations about finances will go much smoother.

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26. August 2011

August 2011 27.

8 point Checklist, Evaluating Online Lenders

By Tom Levine, Contributing Writer Here are 8 things to consider, when evaluating lenders online: 1. Website Design 2. Privacy Policy 3. About Us 4. Popularity 5. Reputation 6. Short Form 7. Points, Fees, Terms and Rates 8. Communication

1.

Website Design: The webpage is, in fact, the storefront of the internet. In the real world, your first impressions make all the difference. Well, it’s no different on the internet. a) Does the site seem forth-right?

Can you glean valuable information immediately, or does it appear that you are being pushed to click here, click there? b) Does the page load fast, indicative of a reliable server, or does it seem to take forever for everything to be displayed (or worse, are you receiving various error messages). c) Are there a ridiculous amount of pop-ups, pop-unders, and other in-your-face ad campaigns, or, does the lender simply put it all out there for you to decide?

Examine the website design, and trust your first impressions.

2.

Privacy Policy: You will likely be sharing some personal information, in exchange for loan offers. You shouldn’t be so concerned about this that it limits your ability to reach out to possible lenders. However, use your common sense. a) Does the website post its privacy policy? If so, take a quick peak at it. b) Does it seem to make sense, and is it reasonable?

Virtually all trustworthy online businesses now have posted privacy policies to both assure you of their intent, and to comply with

3.

be considered. It is simply a measurement of traffic, and that’s it.

Don’t miss out on what they have to offer.

Does the lender post an “about us” page?

Just use popularity as one of the many tools at your disposal, when evaluating online lenders.

current laws and regulations.

About Us:

a) If not, this could be a red flag.

In other words, the lender should take pride in its history, its vision, and its mission statement.

An “about us” page is an opportunity for your lender to tell you a little bit about themselves. If you don’t see it, then what are they hiding? b) On the other hand, if you do see an “about us” page, go check it out. How long have they been in business? Where are they located? Do they post a phone number, and do they provide contact information? What are their policies and philosophies?

Reading the “about us” page can tell you tremendous information about the lender.

4.

Popularity: Take your lender’s website address, and plug it into Alexa.

Com. Alexa is a tool, created by the folks at Amazon, to evaluate traffic on the internet, and to provide a venue for visitors to post critiques of websites. a) Popularity is gauged by the Alexa rating, and the lower the number, the higher the rating.

For example, our site, http:// loanresources.net, as of today’s date, has a 3 month average Alexa Rating of 86,517. This means that we are one of the top 100,000 websites in terms of traffic (and popularity). If we get down to let’s say 50,000, then our traffic and popularity has increased. b) You can use this tool to evaluate the traffic of your prospective lenders. c) Our advice is this: Don’t be blinded by popularity alone.

There are plenty of competitive lenders and mortgage brokers out there with the highest integrity, which may not, necessarily, have a favorable Alexa rating. It doesn’t mean that they shouldn’t

5.

Reputation: There are a number of ways to evaluate a lender’s reputation.

Talking to friends, family, and associates, of course, is one way.

Another method is to see whether or not the prospective lender is a member of the Better Business Bureau (BBB at BBB.Com), and if there are any complaints on record filed against them. a) The BBB produces what’s called a “Reliability Report”, and this report will provide you with corporate information (such as name, address, phone number), BBB membership information, whether or not the lender is a participant of the “BBB Online” program, along with a complaint history, and each complaints final resolution. b) The report also states the overall rating that they give the lender. Remember we discussed earlier, that popularity is not everything? Here’s a prime example. You’d be surprised how many “popular” lenders, may in fact carry a rather lengthy BBB Reliability report filled with a variety of complaints. c) Again, just use your good, common sense, and consider reputation alongside all other factors.

Also, if you see something on the reliability report that may be concerning you, talk to your prospective lender, and see if they can give you a reasonable explanation for what happened.

6.

Short-Form: Complete an online “short form” application, and within minutes, several competitive loan offers could be making their way to you. a) Consider the short form ap-

plication, when evaluating the lender. Is it short indeed, or are they asking you for way too much information?

see how these offers compare.

We’ve got a RateWatch set up at our website, or, you can find other resources from any search engine.

b) Be expected to share some basic information about yourself, such as name, phone number, salary information, etc., but never disclose what you feel is too personal or compromising, such as a social security number, credit card numbers, etc.

8.

c) Does the short-form make sense, is it well organized, and is it simple for you to follow and understand? This is important, because if the form is easy to complete, the lender may be saying that their whole loan process is simple and easy. On the other hand, if the form is arduous and complex, what does that tell you?

a) Do not fear this process. Remember, you are the buyer of this product, and you are in the driver’s seat. Think of it as an interview, and you are in charge.

Ask some good questions, and see if you are comfortable with the relationship forming.

So, evaluate your comfort level with the context of each lender’s short form application online.

7.

Points, Fees, Terms, and Rates:

Communication: After you’ve obtained several loan offers, it will be time to talk to your prospective lenders over the phone.

b) How does the lender strike you over the phone? Is it someone that you feel you could do business with, or, does the conversation seem forced and uncomfortable? c) Use the phone call to evaluate the relationship, and to obtain useful information.

After you complete the online short-form, prospective loan offers will almost instantly be making their way to you.

d) Do not make an immediate decision. Talk to 3 or 4 lenders, and then take a pause, and evaluate what you’ve learned.

a) These preliminary loan offers will present you with important information about the points, fees, terms, and rates being offered.

Use your instincts to gauge who you worked well with, and who might present challenges down the road.

b) This, of course, is the nuts and bolts of what you are evaluating…This is the dollars and cents of your preliminary loan offers. c) Obtain several offers, and compare them to each other. d) Who offers the best savings?

Who seems too low to believe?

Who is way too high to consider? e) Check the current rates and

We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits.

Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

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28. August 2011

August 2011 29.

THE EXPERT NETWORK ATTORNEYS

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THE EXPERT NETWORK