How To Manage Your Wealth – From the Grave

Posted on April 26, 2012 by AJ

A snappy title, I know. Now that I have your attention, let me explain! A well revered, retired colleague of mine, Greg Amundson, wrote a spectacular article a few years ago about how to manage your legacy (money) after you pass it on to your heirs. A delicate way of saying, “how to control your assets from the grave”. This article is even more relevant in today’s economy because of the opportunities and risks in such a volatile money environment. Greg graciously granted permission to reprint this great article on a colleague’s website. This article  is a must read if you have any worries about how the legacy you will leave behind will be managed by your heirs. Here is an excerpt from the article.

“Controlling IRA Assets from the Grave – Protect IRA assets from your children’s poor decisions…More and more wealth over the coming years will transfer between generations as our population ages. Those that know say there will be more wealth transferred from one generation to the next over the next 20 years than in anytime in our country’s history. Much of the assets transferred will be IRA money. Many readers of this newsletter will pass IRAs with balances of $100,000+ to their children. Many readers will have balances of $1,000,000+. So what’s the big deal?……..”

For the full article, you can go to the web site of our wealth management consultant and colleague, Karen Hansen, Wyman and Associates. Read more at: http://www.wymanassociates.com/news/1039/controlling-ira-assets-from-the-grave

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The Eagles ARE Flying!

Posted on January 19, 2012 by AJ

Here in Seattle, we have quite a variety of birds, and hunting birds like bald eagles and golden eagles. When we have high wind storms over the water you can see all kinds of birds gliding on the wind currents without much need to flap their wings. Early in 2012, I had friends over for dinner and they were awed by how high the waves can get here on the sound.  The birds hanging on the wind provide constant entertainment. But, I noticed that there were no eagles flying around, I thought it was strange since they seem to love the high winds. We talked about where the eagles could be on how fun they were missing out on. A few days later, an eagle appeared circling above the water, about to take a dive into the water assumingly for a fish. It was probably one of the biggest eagles I have ever seen, I thought for sure it was a golden eagle because it was so big. As it flew closer to my deck and windows I could see for sure that it was a bald eagle. It was just gigantic with a huge wing spread, and lovely to watch as it soared along the sky above the water. I hope I always get to see the eagles flying outside my windows – for some reason they seem to make me feel safe and that Seattle is one of the grandest places to live!

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Strategy on Learning How to Fish

Posted on December 18, 2011 by AJ
My office window looks due west across Puget Sound towards the San Juan Islands. There is a small roof outside my window that provides water a place to rest for the many varieties of birds on the beach that land on the roof to take in the fabulous view. The roof provides me with a bird’s eye view of what birds do all day long. A while back, I was totally surprised to see not one (1) - but two (2) eagles, directly outside my window on the rooftop ledge, with their baby eagle. The baby eagle had lost a lot of its’ down feathers, and it was painfully obvious that the parent eagles were teaching the baby eagle to hunt. They would take off together and soar over the water and circle and circle and circle looking for an opportunity to dive fast and catch a fish. The parents dove once or twice and each one caught a fish. The baby chased the parents but the parents wouldn’t share. They held onto their fish and ate it with abandon. Eventually the baby dove two or three times and came up with a fish. S/he was dive bombed and hit by seagulls and crows trying to get the fish away from the baby eagle. All the while, the parents sat on the rooftop eating their fish, and watching their baby get beat up by the smaller birds. I watched the scene on and off for a few hours. I felt so bad for the baby, and the parents were so aloof!!! I thought they were neglectful and selfish!!! Then, I watched the baby land with the fish it had worked so hard to catch. S/he landed on the rock wall that jets out into the water-too exhausted to make it to the roof top to be with its’ parents. It ripped its fish apart and ate it like it was its last meal. The smaller birds kept pestering the baby, and the baby ate and ducked every time a bird dived for its head, but it was not letting go of the fish. I was worn out just watching the ordeal. Then, it dawned on me –if the parents continued to feed the baby, it would never learn to fish on its’ own, and it would not survive when s/he left the nest. And, eventually the baby eagle will be much bigger, and all those little birds will get their comeuppance for picking on her/him when the eagle was small! There are lots of business analogies here I am sure, but for now, let’s enjoy the eagles! Stay Tuned!
AJ
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What is an Executive Business Advisor?

Posted on June 15, 2011 by AJ

An executive business advisor is explained accurately by this old tale.
I couldn’t explain our role better myself.

The old tale is about a business owner, named Jeanne, who is walking along a busy street, preoccupied with her struggling business. She falls into a deep dark hole in the sidewalk with no way out, no ladders, no lights, just a big round hole with a deep bottom. It seems there is no way out to Jeanne. She is really scared. She yells and yells for help. Continue reading →

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Things you Should Know

Posted on May 21, 2011 by AJ

Proactive Business Activities
Read the newspaper to follow what is happening in your industry. This single activity can give you valuable insight into your business strategy.
Follow your competitors who are bigger than you AND who are smaller than you. If your competitors downsize, you could face additional competition from newly downsized experts who decide to compete with their prior employer (and you) by hanging out their own shingle. Or, these same experts may just be the talented staff that you need to double your revenues, so hire them before someone does!

Never Compete on Price
I say it all the time. Why? Why should you never compete on price? Here’s why: You do not know how a [private] company other than your own, spends their money. You don’t know their overhead, you don’t know what they pay their employees, you don’t know their ‘cost of goods sold,’ and you don’t know their debt load. So, if you don’t have access to their profit and loss statement, [and even if you do, you don’t know if their profit and loss statement is true and correct] how can you know if they are making a profit from the prices they charge their customers? The answer is, “You don’t”! You know only what prices you can sell your products and services for based on your own costs, no one else’s. Pay attention to your competitors’ prices in the marketplace, but remember, if their prices are significantly different than yours, recognize that it is their costs that are significantly different, not their profits! Don’t always assume that they are making a profit at their prices, especially if their prices are lower than your prices. Economies of scale work for large volume producers, hence the name “economies of scale.”

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Things to Think About

Posted on May 21, 2011 by AJ

Things to Ponder
We are taught to treat our business like a baby. Its food is money, and we are supposed to nurture it, watch it grow, and take care of it. How’s that working for you?

What would happen if we changed that analogy, and you started to treat your businesses like your significant other, a husband, a wife, or a partner. Continue reading →

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