Many of us take for granted the good health we are currently enjoying, that is truly a blessing. Thank you to advancements made in the medical industry we are living longer. However, as we age our health continues to deteriorate. It is a fact of nature. Therefore, as we continue to age we all should plan for our senior years and the proper care during those years so we continue to enjoy life. What is certain is that our aging population, at some point, will require long-term care. Let me demonstrate a realistic scenario in our lives:
John and Jane Smith have addressed their retirement planning for the most well. Even with the recent economic situation they have a well established nest egg for their upcoming planned retirement. John is 62 and a retired accountant for the last two years, who enjoys playing golf; eventhough recently his health has not allowed him to enjoy the last couple of rounds. Jane is 58 accounting manager at a distinguished manufacturing company. She is getting ready for her planned retirement within the next 24 months. Financially speaking, John and Jane have been doing well. However, last week John was diagnosed with Parkinson’s disease. This news has Jane worrying about the care John will need and the strain this will place on their retirement savings and her current earnings.
The above scenario is a best case scenario, John and Jane have retirement savings they have developed over the years and Jane is still gainfully employed. People like John will often require home-care or 24-hour nursing care provided by a long-term care facility. The cost for long-term care is expensive and financially draining to a family. Without government assistance, many are questioning what other options are available. Long term care insurance helps provide funds for looking after a family member who is not unwell in the regular sense of the word but is still unable to go about a daily existence without help. This can include an individual requiring help walking to Alzheimer and Parkinson.
If John had LTC Insurance coverage, his policy might cover his residency in a nursing home or in a retirement home. He might also have access to any of the following: home care, adult care, respite care, and hospice care. Additionally, under his LTCI, John may be covered, for activities of daily living and stand-by assistance. All of these, can be very costly and can quickly deplete through a person’s and/or family’s savings.
The scenario above is a common one. During our financial planning one of the most common overlooked areas is long-term care. Why?
1. Denial - many people are confident they won’t get any illness or disability even if they become older.
2. Fear - people don’t want to think and become stressed with the problems that aging and long term care could bring. Also, they also avoid becoming a burden to their loved ones and families so they choose to handle this problem alone and never ask help from anyone.
3. Unaware of the true cost of LTC - many people do not understand how expensive long term care is these days and in the future.
4. Misinformed - Most Americans also think that Medicaid and Medicare will take care of the bills the time when they get in a nursing home; Medicaid and Medicare help only the low income and require those with extra assets to spend it down before they qualify for benefits in many cases causing unnecessary tax burden to the family.
Here are seven reasons why you should include LTC Insurance as part of your wealth protection program:
1. Numerous options - one advantage of long-term care insurance is that it covers a wide variety of options which can range from daycare for adults, care and taking care of for short periods, care in the hospital or retirement home, provide facilities care for Alzheimer's, home care etc .
2. Immediate help - Help is available from the first day of need itself. Depending on the policy benefit, a care giver can live in the house of the person requiring help. It'll also pay for a specialist, housekeeper, companion, caregiver and non-public nurse to go to the person needing help or stay for a few hours or days too.
3. Family savings remain secure - there isn't any need to touch family savings if a family member needs long term help. The Insurance will help cover most expenses if not all. Without insurance, the cost of providing long term care or perhaps care to a relation on a weekly basis can be terribly dear.
4. Tax repayments and inflation adjustment - Depending on the policy details, premium for long term care insurance are counted for all sorts of tax deductions. The advantages from the insurance aren't counted as earnings either. Also, an inflation adjustment actually helps increase the value of your premium.
5. Security - The sense of security is far greater in case of the insured person requiring help.
6. Daily allowance - a specific daily allowance can be opted for instead of bigger payments at longer intervals. However, this must be balanced with the premiums because the bigger the quantity of daily allowance you choose, the higher will be the premium payment.
7. Estate planning - By purchasing a policy, you not only accrue funds that would later cover long-term care costs but also preserve a portion of your money that can be put towards the cost of taxes payable on death, building an inheritance for your children and wealth preservation.
Before you choose a long term Care policy review what flexibility options are offered. LTC insurance offers many options from managed living, adult day care center, care home or home as a setting for the care that could need to be provided. Long-term care is a complex and misunderstood area of financial planning where it is easy to make costly mistakes. Deciding on an LTC insurance policy can be frustrating and confusing when handled alone. Therefore, it is important that your professional advisor be well versed in this area to properly advise you in the policy that is best for you.
August 4, 2011
August 1, 2011
How Do You Define Wealth?
When I talk to business owners and families, one to the most interesting experiences for me is when I ask them "How do you define wealth?". What comes to your mind? The answer to this simple question varies from “Wealth is an illusion", "Wealth is the root of all evil", "Wealth is hard to achieve" to "Wealth is fun and achievable". The answer is conditioned on our beliefs and experiences.
One that tends to strike me the most is the misunderstanding that "money is the root of all evil". Many people, including Christians, believe that bible says that money is the root of all evil. However, this is perhaps the most misquoted verse of the bible ever. The Bible actually says, “The love (or worship) of money is the root of all evil.” (1 Timothy, 6:10). Huge difference!
The way you answer this simple question is paramount to your goal of achieving wealth in your life. Many times you hear people saying that they want to become wealthy, but they define wealth as something that is bad/evil/painful. Others define wealth as being rich, were the focus is the amount of money that is accumulated without regards to other aspects of life or methods used to achieve it.
What are your beliefs about wealth? What about wealthy people? Are they just like you and I? Or, is wealth reserved for other "Special people"? For example, did you receive messages growing up, like many of us during our childhood, that rich people were those “other people” and not like us or our friends. Or did you have wealthy friends and family in your life? T. Harv Eker in his book "Secrets of the Millionaire Mind" he points out, we are all living out our parents wealth blueprint or script, until we have actively done something to change it. We inherit from our parents their good qualities as well as the bad. Many will acquire their “laissez faire” attitude about credit cards and their philosophy of “spend now, worry later”.
Until you decide to take charge of your finances and challenge your beliefs about money and wealth, you will simply be carrying on what you learned growing up. You will be living your parent’s wealth script, which may not be a good idea. The sad thing is, they were doing the same thing their parents did and so on and your future generations will be doing the same thing.
Early money experiences set the stage for your current beliefs about the subject of wealth and how it relates to you. If you want to achieve wealth, you have to begin creating positive associations around the idea. You need to begin seeing yourself as “one of those wealthy people” BEFORE you can become one. The secrets of achieving anything in life is:
1. Be - See yourself being that person.
2. Do - Do the things that person would do.
3. Have - As you get comfortable being the wealthy person and doing what wealthy people do, then you will have wealth.
However, most people get it backwards. They think after I have money, then I’ll do good things and I’ll be the kind of person I want to be. It does not work that way. Remember, first be, then do, you will then have.
Share with me, your views on wealth. How would you answer this question?
One that tends to strike me the most is the misunderstanding that "money is the root of all evil". Many people, including Christians, believe that bible says that money is the root of all evil. However, this is perhaps the most misquoted verse of the bible ever. The Bible actually says, “The love (or worship) of money is the root of all evil.” (1 Timothy, 6:10). Huge difference!
The way you answer this simple question is paramount to your goal of achieving wealth in your life. Many times you hear people saying that they want to become wealthy, but they define wealth as something that is bad/evil/painful. Others define wealth as being rich, were the focus is the amount of money that is accumulated without regards to other aspects of life or methods used to achieve it.
What are your beliefs about wealth? What about wealthy people? Are they just like you and I? Or, is wealth reserved for other "Special people"? For example, did you receive messages growing up, like many of us during our childhood, that rich people were those “other people” and not like us or our friends. Or did you have wealthy friends and family in your life? T. Harv Eker in his book "Secrets of the Millionaire Mind" he points out, we are all living out our parents wealth blueprint or script, until we have actively done something to change it. We inherit from our parents their good qualities as well as the bad. Many will acquire their “laissez faire” attitude about credit cards and their philosophy of “spend now, worry later”.
Until you decide to take charge of your finances and challenge your beliefs about money and wealth, you will simply be carrying on what you learned growing up. You will be living your parent’s wealth script, which may not be a good idea. The sad thing is, they were doing the same thing their parents did and so on and your future generations will be doing the same thing.
Early money experiences set the stage for your current beliefs about the subject of wealth and how it relates to you. If you want to achieve wealth, you have to begin creating positive associations around the idea. You need to begin seeing yourself as “one of those wealthy people” BEFORE you can become one. The secrets of achieving anything in life is:
1. Be - See yourself being that person.
2. Do - Do the things that person would do.
3. Have - As you get comfortable being the wealthy person and doing what wealthy people do, then you will have wealth.
However, most people get it backwards. They think after I have money, then I’ll do good things and I’ll be the kind of person I want to be. It does not work that way. Remember, first be, then do, you will then have.
Share with me, your views on wealth. How would you answer this question?
July 31, 2011
Tax Reprieve For Spouses
The Internal Revenue Service just made it easier for some individuals to free themselves of liability for a spouse's tax debt. Last week, the IRS eliminated a rule that disqualified taxpayers from the "innocent spouse" relief program if more than two years had passed since the agency first sent collection notices to their spouses.
But there are some caveats. Read MoreFor more information on the innocent-spouse rule, see IRS Publication 971, Form 8857 or news release IR-2011-80
Five Reasons Why We Procrastinate and What To Do About It
Procrastination is something that most people do. There are things to do, important things and mundane things, and for some reason it is put off until the last minute. Is it the adrenaline from delivering at the last minute?. What amazes me is the people that make jokes about it and feel proud of their procrastination, the ones that pride themselves of being a world class procrastinator, telling everyone that sure, you could finish that project right now if you wanted to but (yawn) you’re just going to do it tomorrow. Procrastination in simple terms is when we put a task off until a later time, either due to carelessness or habitual laziness. The procrastinator postpones or needlessly delays accomplishing something –just because. Maybe they don’t start getting ready until it’s nearly time to leave or they move so slowly that by the time they should leave for the event, they’re still way behind schedule. Why do we let things slide until we’re in a time crunch and the deadline is looming and we’re not even CLOSE to being finished? Why do we procrastinate?
The behavior of procrastination affects almost everyone at one time or another in their life. However, for some it is a continuous habit, it is like part of their DNA, for others it may be a situational thing and doesn’t affect too many events in their life. Most of the times it is a choice, people put off things they don’t want/like to do. After pondering on the question, why do we procrastinate, I came up with five potential reasons.
1. Fear - No one likes to admit that they fear something, but fear might just be the reason you put off doing what you know you should do. For example the fear of failure. Fear is a paralyzing emotion. It has the ability to stop us in our tracks-literally.
2. Priorities - Many times we procrastinate because we don't think it is that important. We don’t place a high enough priority on the task at hand, it’s not vital and so it’s not worthy of you beginning that task. We know that the task needs to be done and we may already have decided that we are the one who must do it. However, we always find something else more important on our to-do list that keeps bumping that particular job back to the bottom.
3. Not Enough Information - Other times we do not act on a task, because we don't know enough to do it. Instead of asking (fear of rejection) we decide to put it off. You may procrastinate starting a project because you simply don’t know enough about the project/goal in order to complete the task.
4. Distractions - We have jobs, commitments and our lives are filled with noises and distractions which many times get us out of focus.
5. You Just Don’t Want To Do It - Everyone is faced with jobs in life that they simply don’t want to do. They’re either disgusting/mundane, like having to clean toilets, or they’re dangerous, like climbing up on the roof and cleaning the leaves out from the rain gutters. We put off doing the task at hand because we simply do not want to do it. Period. There is no underlying psychological reason for putting it off. It’s that recalcitrant two-year old in us coming out to say “I don’t wanna and I’m not gonna”.
How Can You Change This Behavior?
How are you going to stop procrastinating? Taking a good hard look at why you don’t file your important documents or wait to complete your tax return until the night before it’s due, or why you put off cleaning those rain gutters is the first step in learning how to change that behavior. Below are a few action steps to help you stop procrastinating. Not every tip will work for every person, so take what you can from this list and see what works for you.
1. Take an Inventory - Do you hear a little nagging voice in your head telling you that you need to do something? Can you see a visual in your head about the task you’re avoiding and are you feeling the physical and emotional consequences of what will happen if you don’t complete this task? Look at the clues that tell you just when and how you’re procrastinating and you’ll be able to see that you are indeed putting something off. Sometimes it’s difficult to tell when you’re procrastinating because you’re attempting to avoid thinking about it but if you piece together the clues you’ll be able to pinpoint your behavior in order to get a handle on it.
2. Learn How You Procrastinate - Do you think if you ignore the job at hand it will eventually go away and not bother you? I tried that once with a speeding ticket and nearly lost my license due to procrastination. Ignoring the problem/job won’t cause it to disappear in a puff of smoke.
3. Make Yourself a Productive Environment - For example, if you work from home, create a home office where there’s no distraction from your work. Sure, that baseball game is playing but you don’t have time to watch it because you have a deadline with a client. Removing temptation to do something other than what you NEED to do will help you put a stop to procrastination.
4. Throw Out Those Procrastination Myths - “I work best under pressure” That’s one myth that keep a lot of people from accomplishing their goals. Once you believe that you can only work under pressure, you’re giving yourself permission to procrastinate. This can snowball and create serious problems for you if you have several deadlines looming. “I can’t do this unless I have five uninterrupted hours” This is simply another stalling technique that master procrastinators use for telling themselves it’s ok to not start the project because they won’t have time to finish it. Hello? If you don’t start the task you’ll never finish it. "I can’t do this unless it’s perfect". The problem that most procrastinators have is that we are too hard on ourselves, demanding perfection where perfection is impossible. If you think you can’t start your term paper until you have THE perfect opening sentence, then you have once again given yourself permission to put it off.
5. Break Down the Job - You have a job to do and it looks like Mt. Everest. You could never, ever complete a job that big, so why even start? If that’s your mindset, then you probably won’t finish the job. In order to combat this kind of thinking, break the job or task down into small, manageable chunks. Your kitchen is a disaster, it’s too much for you to handle. Start on one end and clean off one counter. Take baby steps and soon you’ll see that the entire task has been completed.
6. Change Your Attitude - Often times we don’t begin something we have to do because we condition our minds to postpone the task. We fill our minds with the "pain" that the task will bring to us. With this behavior we give ourselves permission to avoid beginning the task at hand. We do not enjoy pain, thus avoid anything that will bring pain to us. When you hear yourself doing this, change your attitude. Be like the Little Engine that Could and tell yourself that you CAN do this, it’s not that difficult. It’s all a matter of mind over matter. If you think you can, you can.
7. Make sure you don’t over-schedule your time and under-estimate the time you’ll need finish a project - Did you know that world class procrastinators have unrealistic views of the time it takes to accomplish something? They will tell themselves that a certain task will only take three hours to complete, so you really don’t have to start it right this minute. What you may fail to realize is that other things can happen along the way to distract you and stretch that three hours into six and pretty soon you’ve missed that deadline. Starting now is a good best option.
8. Make a List - Making a list can also be a useful tool in helping you avoid procrastinating. Write down a list of what you need to accomplish. Put it in order of importance, highest to lowest. Next, start with number one and work your way down the list, checking off items as you go. Not only will this help you be organized, but putting those little check marks next to items you’ve finished will give you a mental boost and help you feel successful.
Basic human nature will always play a role in procrastination. Pleasurable activities are infinitely more enticing than painful or dull ones (pain-pleasure principle). We seek out what makes us feel good and attempt to avoid the things that annoy or bother us. Consciously determining why you procrastinate will help you change your behavior. Don’t expect to transform your habits over night, but do take small steps in the right direction and you’ll eventually get there. If you reward yourself for your little successes in this area, you just might make non-procrastination more pleasurable than full-blown-avoidance-procrastination.
The behavior of procrastination affects almost everyone at one time or another in their life. However, for some it is a continuous habit, it is like part of their DNA, for others it may be a situational thing and doesn’t affect too many events in their life. Most of the times it is a choice, people put off things they don’t want/like to do. After pondering on the question, why do we procrastinate, I came up with five potential reasons.
1. Fear - No one likes to admit that they fear something, but fear might just be the reason you put off doing what you know you should do. For example the fear of failure. Fear is a paralyzing emotion. It has the ability to stop us in our tracks-literally.
2. Priorities - Many times we procrastinate because we don't think it is that important. We don’t place a high enough priority on the task at hand, it’s not vital and so it’s not worthy of you beginning that task. We know that the task needs to be done and we may already have decided that we are the one who must do it. However, we always find something else more important on our to-do list that keeps bumping that particular job back to the bottom.
3. Not Enough Information - Other times we do not act on a task, because we don't know enough to do it. Instead of asking (fear of rejection) we decide to put it off. You may procrastinate starting a project because you simply don’t know enough about the project/goal in order to complete the task.
4. Distractions - We have jobs, commitments and our lives are filled with noises and distractions which many times get us out of focus.
5. You Just Don’t Want To Do It - Everyone is faced with jobs in life that they simply don’t want to do. They’re either disgusting/mundane, like having to clean toilets, or they’re dangerous, like climbing up on the roof and cleaning the leaves out from the rain gutters. We put off doing the task at hand because we simply do not want to do it. Period. There is no underlying psychological reason for putting it off. It’s that recalcitrant two-year old in us coming out to say “I don’t wanna and I’m not gonna”.
How Can You Change This Behavior?
How are you going to stop procrastinating? Taking a good hard look at why you don’t file your important documents or wait to complete your tax return until the night before it’s due, or why you put off cleaning those rain gutters is the first step in learning how to change that behavior. Below are a few action steps to help you stop procrastinating. Not every tip will work for every person, so take what you can from this list and see what works for you.
1. Take an Inventory - Do you hear a little nagging voice in your head telling you that you need to do something? Can you see a visual in your head about the task you’re avoiding and are you feeling the physical and emotional consequences of what will happen if you don’t complete this task? Look at the clues that tell you just when and how you’re procrastinating and you’ll be able to see that you are indeed putting something off. Sometimes it’s difficult to tell when you’re procrastinating because you’re attempting to avoid thinking about it but if you piece together the clues you’ll be able to pinpoint your behavior in order to get a handle on it.
2. Learn How You Procrastinate - Do you think if you ignore the job at hand it will eventually go away and not bother you? I tried that once with a speeding ticket and nearly lost my license due to procrastination. Ignoring the problem/job won’t cause it to disappear in a puff of smoke.
3. Make Yourself a Productive Environment - For example, if you work from home, create a home office where there’s no distraction from your work. Sure, that baseball game is playing but you don’t have time to watch it because you have a deadline with a client. Removing temptation to do something other than what you NEED to do will help you put a stop to procrastination.
4. Throw Out Those Procrastination Myths - “I work best under pressure” That’s one myth that keep a lot of people from accomplishing their goals. Once you believe that you can only work under pressure, you’re giving yourself permission to procrastinate. This can snowball and create serious problems for you if you have several deadlines looming. “I can’t do this unless I have five uninterrupted hours” This is simply another stalling technique that master procrastinators use for telling themselves it’s ok to not start the project because they won’t have time to finish it. Hello? If you don’t start the task you’ll never finish it. "I can’t do this unless it’s perfect". The problem that most procrastinators have is that we are too hard on ourselves, demanding perfection where perfection is impossible. If you think you can’t start your term paper until you have THE perfect opening sentence, then you have once again given yourself permission to put it off.
5. Break Down the Job - You have a job to do and it looks like Mt. Everest. You could never, ever complete a job that big, so why even start? If that’s your mindset, then you probably won’t finish the job. In order to combat this kind of thinking, break the job or task down into small, manageable chunks. Your kitchen is a disaster, it’s too much for you to handle. Start on one end and clean off one counter. Take baby steps and soon you’ll see that the entire task has been completed.
6. Change Your Attitude - Often times we don’t begin something we have to do because we condition our minds to postpone the task. We fill our minds with the "pain" that the task will bring to us. With this behavior we give ourselves permission to avoid beginning the task at hand. We do not enjoy pain, thus avoid anything that will bring pain to us. When you hear yourself doing this, change your attitude. Be like the Little Engine that Could and tell yourself that you CAN do this, it’s not that difficult. It’s all a matter of mind over matter. If you think you can, you can.
7. Make sure you don’t over-schedule your time and under-estimate the time you’ll need finish a project - Did you know that world class procrastinators have unrealistic views of the time it takes to accomplish something? They will tell themselves that a certain task will only take three hours to complete, so you really don’t have to start it right this minute. What you may fail to realize is that other things can happen along the way to distract you and stretch that three hours into six and pretty soon you’ve missed that deadline. Starting now is a good best option.
8. Make a List - Making a list can also be a useful tool in helping you avoid procrastinating. Write down a list of what you need to accomplish. Put it in order of importance, highest to lowest. Next, start with number one and work your way down the list, checking off items as you go. Not only will this help you be organized, but putting those little check marks next to items you’ve finished will give you a mental boost and help you feel successful.
Basic human nature will always play a role in procrastination. Pleasurable activities are infinitely more enticing than painful or dull ones (pain-pleasure principle). We seek out what makes us feel good and attempt to avoid the things that annoy or bother us. Consciously determining why you procrastinate will help you change your behavior. Don’t expect to transform your habits over night, but do take small steps in the right direction and you’ll eventually get there. If you reward yourself for your little successes in this area, you just might make non-procrastination more pleasurable than full-blown-avoidance-procrastination.
July 26, 2011
Will vs Living Will vs Health Care Power of Attorney; Which one to choose?
Let me start by clarifying that a living will is not the same as a will. They have different purposes and they become effective at different times. A will is effective after your death, but a living will applies while you are alive. A health care power of attorney gives medical decision power under specific situations. Let me save you some time and tell you that as part of your estate planning you need them all.
A will is a legal document that you create during your lifetime.
1. become effective AFTER your death.
2. You can decide how your assets will be distributed after your death.
3. You appoint an executor who will be responsible for winding down your financial life.
4. You can appoint a guardian who will be responsible for caring for your children.
While the living will is also created during your lifetime, it serves a different purpose. The Living Will only becomes effective when the patient is unable to make decisions for him/herself. In other words, the document is only effective when the person becomes incapacitated. Before the living will is implemented, there must be a necessary and appropriate certification from a doctor that the person is truly suffering from a terminal condition or that he is permanently unconscious. With a living will you can accomplish the following:
1. Medical professionals will follow the instructions outlined in your living will.
2. You are able to outline your desires for certain treatment options and procedures (i.e. deciding whether you want to remain on life support)
Your health care power of attorney is effective when your doctor determines that you are not cable of making medical decisions. You may be unconscious, highly medicated, or otherwise unable to comprehend the medical issues at hand and communicate about them. Basically the health care POA covers the period in between the living will and the will.
It is important the proper planning for you elder care parents. You need to have the proper legal documentation to prevent medical dilemmas like the following:
1. If the person suffers from a heart attack, the living will is not yet implemented because the condition is not possibly terminal. The patient could still recover and decide clearly for himself. Unconsciousness in such a condition is also not permanent yet. The person could still be resuscitated, despite terms in a living will that he does not want to undergo life prolonging procedures. In other words, the medical professionals could still proceed to their main goal of saving the person's life or instantly reviving him. The living will would only take effect if in case ultimate recovery gets hopeless.
2. In situations when the person is unable to speak for himself but his health condition is not that dire, the living will still does not take effect. In such a case, the health care power of attorney becomes effective.
The care of your elderly parents is a serious matter and should be handle on time. You must talk to your loved ones about the care they want and how to handle those difficult medical dilemmas.
A will is a legal document that you create during your lifetime.
1. become effective AFTER your death.
2. You can decide how your assets will be distributed after your death.
3. You appoint an executor who will be responsible for winding down your financial life.
4. You can appoint a guardian who will be responsible for caring for your children.
While the living will is also created during your lifetime, it serves a different purpose. The Living Will only becomes effective when the patient is unable to make decisions for him/herself. In other words, the document is only effective when the person becomes incapacitated. Before the living will is implemented, there must be a necessary and appropriate certification from a doctor that the person is truly suffering from a terminal condition or that he is permanently unconscious. With a living will you can accomplish the following:
1. Medical professionals will follow the instructions outlined in your living will.
2. You are able to outline your desires for certain treatment options and procedures (i.e. deciding whether you want to remain on life support)
Your health care power of attorney is effective when your doctor determines that you are not cable of making medical decisions. You may be unconscious, highly medicated, or otherwise unable to comprehend the medical issues at hand and communicate about them. Basically the health care POA covers the period in between the living will and the will.
It is important the proper planning for you elder care parents. You need to have the proper legal documentation to prevent medical dilemmas like the following:
1. If the person suffers from a heart attack, the living will is not yet implemented because the condition is not possibly terminal. The patient could still recover and decide clearly for himself. Unconsciousness in such a condition is also not permanent yet. The person could still be resuscitated, despite terms in a living will that he does not want to undergo life prolonging procedures. In other words, the medical professionals could still proceed to their main goal of saving the person's life or instantly reviving him. The living will would only take effect if in case ultimate recovery gets hopeless.
2. In situations when the person is unable to speak for himself but his health condition is not that dire, the living will still does not take effect. In such a case, the health care power of attorney becomes effective.
The care of your elderly parents is a serious matter and should be handle on time. You must talk to your loved ones about the care they want and how to handle those difficult medical dilemmas.
July 21, 2011
Six Productivity Killers
Due to the challenging times we are facing today, many small business owners are looking for productivity tips that can help them get more done. Today I decided to address an aspect that gets overlooked; Productivity Killers. Many times we waste time looking for the "new tool" that is going to "all of the sudden" make us more productive. However, we do not look closer to our own actions to determine the time leaks that are costing us hours of wasted time and money every day.
Small business owners wear many hats; office administration, marketing, sales, bookkeeping, etc. The amount of tasks to complete seems to be growing and they need to make more time for themselves and their families. The challenge for the small business owners is at time hard to accomplish and in some cases impossible. However, developing a reputation as the "go-to-person", the person who can be counted on to get things done is one of the best advertising you can have, and that can mean greater contracts, increased revenues and better opportunities. I suggest that you focus on looking and actively eliminate time leaks from your daily work schedule. This is the most effective way to increase your productivity and do more with less. Here is a list of six common productivity killers:
1. Lack of Planning - “Measure twice cut once” — English Proverb. Simple, if you don't know where you're going, any path will take you there. The problem is that many times the unknown path will not be the most effective one, many times causing you to have to do things twice or more. Stay focused by periodically re-evaluating your objectives.
2. Time Wasters - In today's society filled with gadgets and technology toys from Ipads to Iphones and Blackberries, we are constantly inundated with information and sounds that take our mind away from the task at hand. We are all guilty of this occasionally:
* Making unnecessary phone calls
* Visiting or talking with others in the office
* Spending more time getting organized than actually doing work
* Scheduling or attending unnecessary meetings
* Playing computer games or browsing the Internet
* Reading a magazine or book
* Taking an extra long break or lunch
Become aware of the way you are spending your time and be completely honest with yourself, identify the time wasters and start addressing them one at a time.
3. Disorganized Work Environments - Distraction is the result of scattered thoughts, chaotic surroundings, or lacking clarity. Many times the distraction is caused by the surroundings of your work area; your office view to a park filled with people walking their dogs or to a golf course. While having offices with beautiful views is great, they can become a distraction in our goal to accomplish our tasks. Bottom-line, when you are distracted you are not working productively. The best way to handle distractions is to find a quiet place where you can think, plan, and organize your thoughts by writing them down in an action plan (to-do list). Another major productivity killer is disorganized/chaotic work environments. This will drain you and make the best of entrepreneurs look unprofessionals in front of your customers. Did you know that disorganization costs the average worker at least one hour of productivity each day? Can you afford to lose five hours a week? Of course not! Keeping your desk, files, and work area clean and organized makes you more productive. You'll be more focused on the task at hand, find the things you need more readily, and feel more in control of your life.
4. Unreasonable and Demanding People - These are what I call "Productivity Vampires", just being around them sucks your positive energy, your plans towards accomplishing your goals, etc. They are demanding, irritable, needy people who constantly distract you from your task at hand. They are impossible to please; they focus on negative aspects of situations and events; they are constantly victimizing themselves; they find fault with things you do and say (because of course they do everything right); and they generally make you feel like you're constantly swimming against the current. The simple solution to this situation is to avoid them completely. However, if these people are your family members, co-workers or close friends, the situation becomes a bit more complicated. You cannot shut down your needy brother/father and move to a mountaintop somewhere to avoid them. This situation requires strategies for coping with them more effectively. One solution is limiting your time exposure with them (what I like to call "love them from a distance"). Second, try to get to the bottom of their behavior, they probably don't act that way just to cause you grief. In most cases, they have some deep-rooted emotional issues that make them miserable.
5. Lack of Delegation of Tasks - Whenever possible you should delegate tasks that another person can perform for you, which frees your time to address other areas of the business where your expertise is a must. The hallmark of a successful entrepreneur is the ability to delegate. You're not an expert at everything! Give the job to the real experts. They can do it more easily and cost-effectively, and you can get back to doing what you do best. Hire a bookkeeper to handle your accounting, instead of pretending that you can do the accounting for your business and never doing it. Hire a contractor to do the property remodeling, instead of you pretending that you can "save money" in your new rental property if you do it yourself or hire a bunch of cheap and inexperienced kids to do the work. Whenever in doubt, apply the Pareto's Principle- The 80/20 Rule. This rule states that 20 percent of your activities produce 80 percent of your results. So, in prioritizing your to-do list,determine which tasks are in your top 20 percent by assessing their value to your life. When you've identified the activities that generate the most income, you'll know which tasks to delegate.
6. Poor Health Habits - Most people do not consider their health in looking for solutions in improving productivity. Poor health habits can have a negative impact on your productivity. For example, lack of sleep/rest, and poor nutrition will drain your body of the needed energy to function at an optimal level! When you deprive your body from the needed fuel you end up feeling fatigued, cranky, and distracted. Therefore, you must make it a priority to get adequate sleep each night, schedule in time for exercise and proper meal-planning. Another aspect that need to be addressed is time for family, fun, recreation and personal time. I know that it seems counter-intuitive, but taking rest and recovery breaks during the day will make you
more productive than if you work non-stop.
As you read through the list above, be honest with yourself - how many of these productivity killers are currently affecting you today? If you relate to any one of the time wasters above, pick one that you feel would make a positive difference in your life and develop a plan of action for this week to start stopping that time from going down the drain. What other energy or time wasters do you deal on a daily basis? Share them, I would like to hear from you, what are the time wasters and how you were able to stop the waste.
Small business owners wear many hats; office administration, marketing, sales, bookkeeping, etc. The amount of tasks to complete seems to be growing and they need to make more time for themselves and their families. The challenge for the small business owners is at time hard to accomplish and in some cases impossible. However, developing a reputation as the "go-to-person", the person who can be counted on to get things done is one of the best advertising you can have, and that can mean greater contracts, increased revenues and better opportunities. I suggest that you focus on looking and actively eliminate time leaks from your daily work schedule. This is the most effective way to increase your productivity and do more with less. Here is a list of six common productivity killers:
1. Lack of Planning - “Measure twice cut once” — English Proverb. Simple, if you don't know where you're going, any path will take you there. The problem is that many times the unknown path will not be the most effective one, many times causing you to have to do things twice or more. Stay focused by periodically re-evaluating your objectives.
2. Time Wasters - In today's society filled with gadgets and technology toys from Ipads to Iphones and Blackberries, we are constantly inundated with information and sounds that take our mind away from the task at hand. We are all guilty of this occasionally:
* Making unnecessary phone calls
* Visiting or talking with others in the office
* Spending more time getting organized than actually doing work
* Scheduling or attending unnecessary meetings
* Playing computer games or browsing the Internet
* Reading a magazine or book
* Taking an extra long break or lunch
Become aware of the way you are spending your time and be completely honest with yourself, identify the time wasters and start addressing them one at a time.
3. Disorganized Work Environments - Distraction is the result of scattered thoughts, chaotic surroundings, or lacking clarity. Many times the distraction is caused by the surroundings of your work area; your office view to a park filled with people walking their dogs or to a golf course. While having offices with beautiful views is great, they can become a distraction in our goal to accomplish our tasks. Bottom-line, when you are distracted you are not working productively. The best way to handle distractions is to find a quiet place where you can think, plan, and organize your thoughts by writing them down in an action plan (to-do list). Another major productivity killer is disorganized/chaotic work environments. This will drain you and make the best of entrepreneurs look unprofessionals in front of your customers. Did you know that disorganization costs the average worker at least one hour of productivity each day? Can you afford to lose five hours a week? Of course not! Keeping your desk, files, and work area clean and organized makes you more productive. You'll be more focused on the task at hand, find the things you need more readily, and feel more in control of your life.
4. Unreasonable and Demanding People - These are what I call "Productivity Vampires", just being around them sucks your positive energy, your plans towards accomplishing your goals, etc. They are demanding, irritable, needy people who constantly distract you from your task at hand. They are impossible to please; they focus on negative aspects of situations and events; they are constantly victimizing themselves; they find fault with things you do and say (because of course they do everything right); and they generally make you feel like you're constantly swimming against the current. The simple solution to this situation is to avoid them completely. However, if these people are your family members, co-workers or close friends, the situation becomes a bit more complicated. You cannot shut down your needy brother/father and move to a mountaintop somewhere to avoid them. This situation requires strategies for coping with them more effectively. One solution is limiting your time exposure with them (what I like to call "love them from a distance"). Second, try to get to the bottom of their behavior, they probably don't act that way just to cause you grief. In most cases, they have some deep-rooted emotional issues that make them miserable.
5. Lack of Delegation of Tasks - Whenever possible you should delegate tasks that another person can perform for you, which frees your time to address other areas of the business where your expertise is a must. The hallmark of a successful entrepreneur is the ability to delegate. You're not an expert at everything! Give the job to the real experts. They can do it more easily and cost-effectively, and you can get back to doing what you do best. Hire a bookkeeper to handle your accounting, instead of pretending that you can do the accounting for your business and never doing it. Hire a contractor to do the property remodeling, instead of you pretending that you can "save money" in your new rental property if you do it yourself or hire a bunch of cheap and inexperienced kids to do the work. Whenever in doubt, apply the Pareto's Principle- The 80/20 Rule. This rule states that 20 percent of your activities produce 80 percent of your results. So, in prioritizing your to-do list,determine which tasks are in your top 20 percent by assessing their value to your life. When you've identified the activities that generate the most income, you'll know which tasks to delegate.
6. Poor Health Habits - Most people do not consider their health in looking for solutions in improving productivity. Poor health habits can have a negative impact on your productivity. For example, lack of sleep/rest, and poor nutrition will drain your body of the needed energy to function at an optimal level! When you deprive your body from the needed fuel you end up feeling fatigued, cranky, and distracted. Therefore, you must make it a priority to get adequate sleep each night, schedule in time for exercise and proper meal-planning. Another aspect that need to be addressed is time for family, fun, recreation and personal time. I know that it seems counter-intuitive, but taking rest and recovery breaks during the day will make you
more productive than if you work non-stop.
As you read through the list above, be honest with yourself - how many of these productivity killers are currently affecting you today? If you relate to any one of the time wasters above, pick one that you feel would make a positive difference in your life and develop a plan of action for this week to start stopping that time from going down the drain. What other energy or time wasters do you deal on a daily basis? Share them, I would like to hear from you, what are the time wasters and how you were able to stop the waste.
July 12, 2011
Consequences of Not Raising the Debt Ceiling
Warren Buffett thinks that our government is playing a dangerous game of Russian roulette. While the country continues to struggle during our recent financial difficulties, our politicians in Washington continue stuck on their differences related to taxes and spending cuts creating a political impasse between Republicans and Democrats over what used to be a no-brainer: raising the statutory annual debt ceiling so the U.S. Treasury can meet the federal government’s ever-expanding financial obligations. With the deadline approaching both sides remain far from an agreement.
It is truly silly that our government continues to waste time on this matter, in past governments this would not have been such a long battle. For example, Congress raised the debt ceiling seven times during the George W. Bush administration. Now our politicians are using it as a hostage to get their way. Understand that the United States does not have to default on its obligations as long as we honor the interest on our obligation, the United States will be able to issue new bonds to replace those that come due without breaching their commitments. The Treasury itself still holds about $100-billion worth of mortgage-backed securities from Fannie Mae and Freddie Mac, as well as close to $400-billion in gold that it could sell or swap with the Federal Reserve, to raise emergency cash.
Failure to raise the debt ceiling would not trigger a major crisis on a short term. However, in the longer term, any kind of U.S. default will create a lack of confidence among investors regarding our financial instruments.
Worst-Case Scenario
1. Congress doesn’t raise the $14.3-trillion debt ceiling by Aug. 2.
2. U.S. Treasury is unable to make a $30-billion debt payment due on Aug. 4.
3. The U.S. credit rating is cut, and investors demand higher interest rates to hold U.S. debt.
4. The government is forced to pay billions more to borrow money.
5. Government spending is reduced, slowing the economy.
6. Consumers and businesses, forced to pay higher interest rates to borrow money, cut back.
7. Foreign investors flee U.S. securities, the dollar devalues, and inflation soars.
8. Stocks plunge amid a widespread loss of confidence.
What do you think we should do?
It is truly silly that our government continues to waste time on this matter, in past governments this would not have been such a long battle. For example, Congress raised the debt ceiling seven times during the George W. Bush administration. Now our politicians are using it as a hostage to get their way. Understand that the United States does not have to default on its obligations as long as we honor the interest on our obligation, the United States will be able to issue new bonds to replace those that come due without breaching their commitments. The Treasury itself still holds about $100-billion worth of mortgage-backed securities from Fannie Mae and Freddie Mac, as well as close to $400-billion in gold that it could sell or swap with the Federal Reserve, to raise emergency cash.
Failure to raise the debt ceiling would not trigger a major crisis on a short term. However, in the longer term, any kind of U.S. default will create a lack of confidence among investors regarding our financial instruments.
Worst-Case Scenario
1. Congress doesn’t raise the $14.3-trillion debt ceiling by Aug. 2.
2. U.S. Treasury is unable to make a $30-billion debt payment due on Aug. 4.
3. The U.S. credit rating is cut, and investors demand higher interest rates to hold U.S. debt.
4. The government is forced to pay billions more to borrow money.
5. Government spending is reduced, slowing the economy.
6. Consumers and businesses, forced to pay higher interest rates to borrow money, cut back.
7. Foreign investors flee U.S. securities, the dollar devalues, and inflation soars.
8. Stocks plunge amid a widespread loss of confidence.
What do you think we should do?
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