What is Financial Planning All About
It may seem a bit far fetched, but some investors have butterflies in the stomach when they hear about financial planning. There is no doubt that planning one's finances is a very necessary and beneficial practice, but what does the plan really entail? I feel strongly that a good answer can help to calm the fears of investors.
Financial planning basically involves making decisions in five main areas: budgeting, liquidity management, management of large purchases, long-term investment and insurance.
In budgeting, the investor is supposed to decide how much of his income will be saved and how much will be spent. When income exceeds expenditure, there is saving, and hence an increase in assets. When the reverse occurs, there is negative saving, or a rise in liabilities. The excess of assets over liabilities represents the net worth of the investor.
Saving broadly relates to three different time horizons. Short-term saving such as saving for day to day expenses has a connection with liquidity management which will be soon discussed. Medium-term management deals with saving for items such as a car, or deposit towards buying a house, and borders on financing large purchases. Long-term saving is needed to achieve long-term investment.
Liquidity stands for cash that can be readily spent. Generally speaking, the more liquid a financial instrument is, the lower the returns it provides. Examples of very liquid instruments are bank notes, and chequeable accounts. These instruments pay little or no interest. Bank and building society deposits are slightly less liquid instruments that pay some interest but with some amount of limitation in accessibility. Stock market securities such as shares and bonds provide much higher returns but are equally much less liquid. It is necessary for an investor to decide how much of his saving should be in very liquid form and otherwise, in order to maximise returns.
Some form of money management is needed. For example, the high dealing cost involved in the purchase and sales of shares will make it unreasonable to embark on a share investment, when one is saving towards a holiday. A deposit or chequeable account will be more suitable. Liquidity can also be maintained via the use of credit cards, except that this form of credit attracts high interest. One must decide as to how much of liquidity will be provided by credit cards, through credit management.
When considering large purchases such as buying a car or house, one can use his own savings, borrow or combine both savings and borrowing. It pays to bear the interest as well as duration of repayment in mind when borrowing. Allowance should be made for possible hikes in interest, and a resultant rise in the size of the loan, and regular payments.
Returns increase more than proportionately with time, and risk increases less than proportionately with time when considering investment in shares. In other words, shares are more suitable for long-term investment than many other securities. There is time diversification which means that losses are evened out by gains with the passage of time. Another benefit of employing shares in long-term investments is their ability to nullify the negative effects of inflation. Shares have been proven to provide returns that are proportionately higher than inflation in the long-term.
Insurance is also considered in financial planning and essentially means paying money to an insurer for financial protection. Life insurance protects the beneficiaries in the event of the death of the policyholder. In fact insurance can be taken out to cover various assets such as car, property, and so on. It can provide protection against eventualities such as critical illness, sickness, income continuity during death and so on. Certain insurance policies such as endowment and whole-of-life combine both features of savings and life insurance in one package. It is wise to decide during planning whether it is better to keep savings and life insurance apart.
Financial planning should be demystified. It is like any other plan, except that it relates to finances. As long as one stays focused and methodical, and touches on the aforementioned decision zones there shouldn't be any anxieties. The plan is for a particular individual to use and it is crucial that decisions are made to suit the unique financial situation and circumstances of the person under consideration.
Thursday, March 15, 2012
Venture Capital - When You Need MORE Than MONEY!
Venture Capital - When You Need MORE Than MONEY!
If you are looking for setting up firms in technology, medical and retail sectors and you are lacking finance to invest or start up, don't worry. The simple answer is 'Approach VC.'
Venture capital is money provided by investors to privately held companies with perceived long-term growth potential.
Professionally managed venture capital firms generally are limited partnerships funded by private and public pension funds, endowment funds, foundations, corporations, wealthy individuals, foreign investors, and the venture capitalists themselves. (Source: - Ventureglobe.com)
Venture Capital firms invest in private companies that need capital to develop and market their products. In return for this investment, the venture capitalists exact a price significant ownership of the company and seats on the board of directors.
Venture capitalists raise money from institutional investors, state pension funds and high-net worth individuals, usually in the form of partnerships. Investors should look at the venture capital firms track record and expertise when evaluating an IPO.
Does VC mean only Finance?
No. David Hsu wrote in the article 'What Do Entrepreneurs Pay for Venture Capital Affiliation?' in Journal of Finance, "If a company borrows from a bank and the terms are similar, it does not matter what bank it gets the money from. In seeking venture capital investment, however, a company is hungry not just for cash but also for the venture firm's reputation and access to a network of relationships with customers, suppliers, investment bankers and other important constituents in the universe that the entrepreneur cares about"?
Key Decision Factors
There are three key factors analyzed by VC while investing funds in business.
1. Values of your business,
2. Rate of Return of the Investment and
3. Exit strategy
Jargons of Venture Capital Funding
Basically in either of following forms, Venture capitalist invests.
1. Sweat Equity - Lawyers, accountants and other professionals will often work for free for a start up in return for handling their business, if successful, or for a small equity stake.
2. Pre-used funding - This is the earliest stage of funding. It allows an entrepreneur to explore an idea and prepare a business plan. Universities generally do for students.
3. Self-funding - This early stage funding allows the entrepreneur to prepare a prototype of the product and assemble a management team. Seed investors expect to provide business advice and possibly even office facilities.
4. Start up funding - This entails the commitment of significant funds so the business can complete product development and start initial marketing. Soft starts need to demonstrate a product with a competitive advantage. Hard start companies e.g. pharmaceutical or biotech needs to show detail research. Start up investor also helps in recruiting key personnel and customers for business.
5. Development Funding - This is financing provided to companies that have completed product development and are commencing operation and sales. Investors closely monitor cash flows, head count and sales revenues.
6. Mezzanine Funding - Large stage financing that typically combines debt and equity and is used jus prior to Initial Public Offer.
7. Expansion Funding - The capital is provided for growth and expansion of an established business. Investors expect to monitor financial performance. But no solution is offered.
8. Mergers and Acquisitions, Management By-Outs and external Management Buy-Ins are forms of late stage financing.
Other than above jargons in Venture capitals, following types of funding are provided by Venture capitalist.
1. Revolving credit lines
2. Secured bridge financing
3. Purchase order financing
4. Acquisition financing
5. Inventory loans
6. DIP and Exit financing
7. Cash flow loans
8. Real estate financing
9. Loan guarantees
10. International real estate
11. Conventional factoring
12. Asset based loans
13. Letter of credit financing
14. Funding for healthcare providers
15. Equipment financing
16. Equity participation
17. Construction loans
18. Unsecured loans based on personal credit of principal
19. Mezzanine financing
20. SBA loans
(Source: Ventureplan.com)
Countries and Venture Capital Associations
You can however approach to following association for venture capital to be invested in your business.
Country Association or Firms Visit at
Australia Australian Venture Capital Association Limited
Belgian Belgian Venturing Association
British British Venture Capital Association
Canadian Canadian Venture Capital Association
Dutch Dutch Venture Capital Association
Europe European Investment Fund
Europe European Private Equity & Venture Capital Association
Finnish Finnish Venture Capital Association
Finally
Yes, finally, before approaching to any VC, you must know your mind better, your plan much clearer and before convincing other ensure you are convinced for your venture.
"The key to a leader's impact is sincerity. Before he can inspire with emotion he must be swayed by it himself. Before he can move their tears his own must flow. To convince them he must himself believe" said Winston Churchill.
If you are looking for setting up firms in technology, medical and retail sectors and you are lacking finance to invest or start up, don't worry. The simple answer is 'Approach VC.'
Venture capital is money provided by investors to privately held companies with perceived long-term growth potential.
Professionally managed venture capital firms generally are limited partnerships funded by private and public pension funds, endowment funds, foundations, corporations, wealthy individuals, foreign investors, and the venture capitalists themselves. (Source: - Ventureglobe.com)
Venture Capital firms invest in private companies that need capital to develop and market their products. In return for this investment, the venture capitalists exact a price significant ownership of the company and seats on the board of directors.
Venture capitalists raise money from institutional investors, state pension funds and high-net worth individuals, usually in the form of partnerships. Investors should look at the venture capital firms track record and expertise when evaluating an IPO.
Does VC mean only Finance?
No. David Hsu wrote in the article 'What Do Entrepreneurs Pay for Venture Capital Affiliation?' in Journal of Finance, "If a company borrows from a bank and the terms are similar, it does not matter what bank it gets the money from. In seeking venture capital investment, however, a company is hungry not just for cash but also for the venture firm's reputation and access to a network of relationships with customers, suppliers, investment bankers and other important constituents in the universe that the entrepreneur cares about"?
Key Decision Factors
There are three key factors analyzed by VC while investing funds in business.
1. Values of your business,
2. Rate of Return of the Investment and
3. Exit strategy
Jargons of Venture Capital Funding
Basically in either of following forms, Venture capitalist invests.
1. Sweat Equity - Lawyers, accountants and other professionals will often work for free for a start up in return for handling their business, if successful, or for a small equity stake.
2. Pre-used funding - This is the earliest stage of funding. It allows an entrepreneur to explore an idea and prepare a business plan. Universities generally do for students.
3. Self-funding - This early stage funding allows the entrepreneur to prepare a prototype of the product and assemble a management team. Seed investors expect to provide business advice and possibly even office facilities.
4. Start up funding - This entails the commitment of significant funds so the business can complete product development and start initial marketing. Soft starts need to demonstrate a product with a competitive advantage. Hard start companies e.g. pharmaceutical or biotech needs to show detail research. Start up investor also helps in recruiting key personnel and customers for business.
5. Development Funding - This is financing provided to companies that have completed product development and are commencing operation and sales. Investors closely monitor cash flows, head count and sales revenues.
6. Mezzanine Funding - Large stage financing that typically combines debt and equity and is used jus prior to Initial Public Offer.
7. Expansion Funding - The capital is provided for growth and expansion of an established business. Investors expect to monitor financial performance. But no solution is offered.
8. Mergers and Acquisitions, Management By-Outs and external Management Buy-Ins are forms of late stage financing.
Other than above jargons in Venture capitals, following types of funding are provided by Venture capitalist.
1. Revolving credit lines
2. Secured bridge financing
3. Purchase order financing
4. Acquisition financing
5. Inventory loans
6. DIP and Exit financing
7. Cash flow loans
8. Real estate financing
9. Loan guarantees
10. International real estate
11. Conventional factoring
12. Asset based loans
13. Letter of credit financing
14. Funding for healthcare providers
15. Equipment financing
16. Equity participation
17. Construction loans
18. Unsecured loans based on personal credit of principal
19. Mezzanine financing
20. SBA loans
(Source: Ventureplan.com)
Countries and Venture Capital Associations
You can however approach to following association for venture capital to be invested in your business.
Country Association or Firms Visit at
Australia Australian Venture Capital Association Limited
Belgian Belgian Venturing Association
British British Venture Capital Association
Canadian Canadian Venture Capital Association
Dutch Dutch Venture Capital Association
Europe European Investment Fund
Europe European Private Equity & Venture Capital Association
Finnish Finnish Venture Capital Association
Finally
Yes, finally, before approaching to any VC, you must know your mind better, your plan much clearer and before convincing other ensure you are convinced for your venture.
"The key to a leader's impact is sincerity. Before he can inspire with emotion he must be swayed by it himself. Before he can move their tears his own must flow. To convince them he must himself believe" said Winston Churchill.
The UK Endowment Mortgage Scandal - Millions Left with Shortfalls May be Entitled to Compensation
The UK Endowment Mortgage Scandal - Millions Left with Shortfalls May be Entitled to Compensation
During the 1980's and 90's a new concept of property mortgaging arrived in the UK. Endowment mortgages became extremely popular with homebuyers who wanted a secure but affordable method of repaying their mortgage debt. Most large financial organisations were happy to offer these products and they were sold by large banks, building societies and high street brokers.
The general concept of an endowment mortgage was that the customer would make regular installments into an investment fund managed by the endowment provider (the big financial organisations). The investment would eventually generate enough money to pay off the mortgage debt in full and usually the customer would be left with an extra amount or bonus at the end. In addition to this the customer would also have the benefit of life insurance for the duration of the investment period with cover provided up to the value of the endowment maturity value. The overall financial package of a combined insurance and savings product linked to lower mortgage payments, was almost too good to be true.
As a result there are currently around ten million active endowment policies in the UK.
Like most things that seem too good to be true, endowment mortgage policies have sadly proven to be extremely disappointing for the vast majority of customers. These investment products are closely linked to the worlds stock markets but with the recent 5 year global recession and sharp downturn experienced by most countries, the anticipated return on investment is proving to be far less than the endowment providers anticipated.
It is estimated that 80% of all existing endowment products will fail to meet the projected target amount and some will have considerable shortfalls. This means that potentially as many as 8 million people in the UK will fail to reap any bonuses from their plans but worst of all may completely fail to pay off their mortgage debt by the time their plan matures.
It was not long before the consumer groups began asking serious questions about the credibility of endowment policies and the regulatory body in the UK Financial Services Authority (FSA) was forced to act following complaints about widespread misselling.
It has since become apparent that millions of endowment policies were mis-sold in that the individuals or organisations conducting the sale, failed to follow the rules and notify the customer of certain key features relating to the advantages and disadvantages of the endowment products. Far too much emphasis was placed on the benefits of the products with little or no discussion about the risks involved with potentially erratic investments that were linked to the stock market. The message was that the plan simply could not fail and this was a flawed and misleading sales pitch.
The FSA have devised a scheme that allows endowment policyholders to make a formal complaint about possible misselling. The rules allow for such a complaint to be made once a "warning" letter has been received from the endowment provider indicating that the plan will more than likely fail to meet the projected target amount (this is known as a policy shortfall). If the complaint is upheld, the endowment provider or the salesman / selling organization must make an offer of compensation to the customer. The average compensation award is thought to be in the region of 5000.
Whilst it is possible for customers to complain personally, the FSA process is regrettably complex and many customers will need assistance from "professional claims handlers" in order to pursue their complaint effectively. Many endowment providers corrupt the process by using technical jargon and complex rules. They have also introduced "Time barring" arguments which have been allowed by the FSA. The rule here is that you have generally three years from the date of your first warning letter to make your complaint. This serves to confuse customers and many complaints that are pursued direct without professional assistance will simply fail. The majority of customers do not even bother to complain because of the complexities involved.
Summary:
Thanks to consumer groups and professional claims handling bodies the UK's endowment misselling scandal is gathering a head of steam and victims are now more aware of the issues.
The important aspects for customers to remember are:
oYou only have a limited amount of time to complain - 3 years from the date of your first letter from the endowment provider warning about a possible shortfall.
oYou must complain now to ensure that any shortfall in the projected target value of your policy is recouped. You may not recover the full shortfall amount but your compensation will go some way to bridging the gap.
oYou must also seek financial advice on your mortgage situation because if a shortfall has been highlighted, the endowment plan you have is NOT going to meet your mortgage debt on maturity
If you currently have an endowment mortgage policy you must act now to ensure that you and your family's future remains secure. Be aware of the issues, be aware of the need to correct the misselling that you have been the victim of and most importantly be aware that only YOU can change the position that you now find yourself in.
For more information on making ">endowment compensation claims contact The Claims Connection managed by Winston Solicitors a regulated UK law firm.
During the 1980's and 90's a new concept of property mortgaging arrived in the UK. Endowment mortgages became extremely popular with homebuyers who wanted a secure but affordable method of repaying their mortgage debt. Most large financial organisations were happy to offer these products and they were sold by large banks, building societies and high street brokers.
The general concept of an endowment mortgage was that the customer would make regular installments into an investment fund managed by the endowment provider (the big financial organisations). The investment would eventually generate enough money to pay off the mortgage debt in full and usually the customer would be left with an extra amount or bonus at the end. In addition to this the customer would also have the benefit of life insurance for the duration of the investment period with cover provided up to the value of the endowment maturity value. The overall financial package of a combined insurance and savings product linked to lower mortgage payments, was almost too good to be true.
As a result there are currently around ten million active endowment policies in the UK.
Like most things that seem too good to be true, endowment mortgage policies have sadly proven to be extremely disappointing for the vast majority of customers. These investment products are closely linked to the worlds stock markets but with the recent 5 year global recession and sharp downturn experienced by most countries, the anticipated return on investment is proving to be far less than the endowment providers anticipated.
It is estimated that 80% of all existing endowment products will fail to meet the projected target amount and some will have considerable shortfalls. This means that potentially as many as 8 million people in the UK will fail to reap any bonuses from their plans but worst of all may completely fail to pay off their mortgage debt by the time their plan matures.
It was not long before the consumer groups began asking serious questions about the credibility of endowment policies and the regulatory body in the UK Financial Services Authority (FSA) was forced to act following complaints about widespread misselling.
It has since become apparent that millions of endowment policies were mis-sold in that the individuals or organisations conducting the sale, failed to follow the rules and notify the customer of certain key features relating to the advantages and disadvantages of the endowment products. Far too much emphasis was placed on the benefits of the products with little or no discussion about the risks involved with potentially erratic investments that were linked to the stock market. The message was that the plan simply could not fail and this was a flawed and misleading sales pitch.
The FSA have devised a scheme that allows endowment policyholders to make a formal complaint about possible misselling. The rules allow for such a complaint to be made once a "warning" letter has been received from the endowment provider indicating that the plan will more than likely fail to meet the projected target amount (this is known as a policy shortfall). If the complaint is upheld, the endowment provider or the salesman / selling organization must make an offer of compensation to the customer. The average compensation award is thought to be in the region of 5000.
Whilst it is possible for customers to complain personally, the FSA process is regrettably complex and many customers will need assistance from "professional claims handlers" in order to pursue their complaint effectively. Many endowment providers corrupt the process by using technical jargon and complex rules. They have also introduced "Time barring" arguments which have been allowed by the FSA. The rule here is that you have generally three years from the date of your first warning letter to make your complaint. This serves to confuse customers and many complaints that are pursued direct without professional assistance will simply fail. The majority of customers do not even bother to complain because of the complexities involved.
Summary:
Thanks to consumer groups and professional claims handling bodies the UK's endowment misselling scandal is gathering a head of steam and victims are now more aware of the issues.
The important aspects for customers to remember are:
oYou only have a limited amount of time to complain - 3 years from the date of your first letter from the endowment provider warning about a possible shortfall.
oYou must complain now to ensure that any shortfall in the projected target value of your policy is recouped. You may not recover the full shortfall amount but your compensation will go some way to bridging the gap.
oYou must also seek financial advice on your mortgage situation because if a shortfall has been highlighted, the endowment plan you have is NOT going to meet your mortgage debt on maturity
If you currently have an endowment mortgage policy you must act now to ensure that you and your family's future remains secure. Be aware of the issues, be aware of the need to correct the misselling that you have been the victim of and most importantly be aware that only YOU can change the position that you now find yourself in.
For more information on making ">endowment compensation claims contact The Claims Connection managed by Winston Solicitors a regulated UK law firm.
Selling Life Insurance Policies - Selling Term VS Whole Life Insurance Coverage Plans
Selling Life Insurance Policies - Selling Term VS Whole Life Insurance Coverage Plans
Over the last 50 years, the debate on selling life insurance policies has only gained fire. Is selling term vs whole life insurance coverage plans killing agents and enriching clients? Look at the dilemma ignited and fueled by low rate cheap internet term life versus whole life insurance with high commissions.
In excess of 600 companies selling life insurance compete unfairly, having their agents compare apples to oranges to lemons. Every conceivable mishmash of term and life insurance is blended into an easily digestible lemonade combination. Einstein could not finish high school let alone taking on the greater task of developing a formula for comparing life insurance rates.
That is because instead of one true formula, there are 2,400 formulas. Each life insurance company has at least one formula for comparing its best selling term to other insurers, plus a formula showing why there best selling whole life insurance coverage is the best. Then they have an illustration how their top selling term coverage beats out buying whole life from any competitor. Last, they have an illustration why buying their whole life insurance plan is superior to purchasing any insurance providers cheap term.
The policy scramble name game. First you have whole life insurance coverage, and then you have life insurance policies called, "straight life", "life endowment at age 100", simple life, and ordinary life. Four more plans for selling the exact same whole life policy. Numerous options exist for an agent selling "all risk", no cash value", term life insurance. The term could be straight term, annual renewable, 5 year renewable, 10 year renewable, straight decreasing, mortgage decreasing, and many more. The 6 term types mentioned here could the same company, and all at selling at different premium rates offer all.
Each year there are new crossbreds added to heap. Some pay cash dividend values, others provide none. Popular derivatives like Universal Life when introduced were going to end all the term vs whole life insurance confusion. You could make your own pie, with a certain amount of pure risk term, grouped in an orderly process with cash value whole life. This did not end the controversy, as now there was another selling choice that agents heavily promoted.
Commission is no longer a factor, at least among independent agents. Career company agents are typically paid 15 to 20% less commission to sell term insurance policies. The whole life policies, more profitable to their home office, gave them a higher incentive to sell. Today you can find independent life insurance carriers that provide various forms of whole life, universal life, and term insurance all at a high first year commission.
Individual policy rates are no longer a factor. You cannot judge an insurance policy by looking at its rate. However a very short time ago, one of the largest term life insurance companies (with AIG) as its first three letters got into a earth destructing bind by combing the lowest rates with absolutely some of the highest commissions. With 99.5% of insurers not so greedy, how do you compare apples to apples? Rates, company age, commissions, overhead, financial investments, policy riders, mortality tables, and underwriting requirements can be researched, and you still will not know which apple you should be selling or buying.
The proper way of buying or selling life insurance policies Insurance is a matter of total risk, and only so many dollars exist to cover only these seven major risks. These are for providing risk plans for sufficient life insurance, car, homeowners, major medical, disability, retirement, and long-term care. How many insurance agent sellers, and policy buyers sit down, and at one time figure out the entire picture. They don't. Insurance is mainly bought by either price (like cheapness), commissions, or by what a prospect is solicited with.
Try this. Come to my house, and I will show you my risks and assets. I have a bank check for $10,000 and tell you to handle all my insurance needs. I would then tell you that you are in competition with 2 others, and I will take the most logical plan. Do you think this is fair? I am giving you a vast selling opportunity, and testing your integrity. Should I care if you increase the cash value of my life insurance policy to provide more retirement benefits or assets? Likewise does it matter if I get some cheaper term insurance so a mortgage disability income plan could go into effect?
Insurance agents have not got their act together in over 100 years. In this information age, they do not have another 20 to wait. People do not need an extreme education on insurance. Insurance agents need to become extremely educated on adapting to their client needs on a total insurance concept.
Over the last 50 years, the debate on selling life insurance policies has only gained fire. Is selling term vs whole life insurance coverage plans killing agents and enriching clients? Look at the dilemma ignited and fueled by low rate cheap internet term life versus whole life insurance with high commissions.
In excess of 600 companies selling life insurance compete unfairly, having their agents compare apples to oranges to lemons. Every conceivable mishmash of term and life insurance is blended into an easily digestible lemonade combination. Einstein could not finish high school let alone taking on the greater task of developing a formula for comparing life insurance rates.
That is because instead of one true formula, there are 2,400 formulas. Each life insurance company has at least one formula for comparing its best selling term to other insurers, plus a formula showing why there best selling whole life insurance coverage is the best. Then they have an illustration how their top selling term coverage beats out buying whole life from any competitor. Last, they have an illustration why buying their whole life insurance plan is superior to purchasing any insurance providers cheap term.
The policy scramble name game. First you have whole life insurance coverage, and then you have life insurance policies called, "straight life", "life endowment at age 100", simple life, and ordinary life. Four more plans for selling the exact same whole life policy. Numerous options exist for an agent selling "all risk", no cash value", term life insurance. The term could be straight term, annual renewable, 5 year renewable, 10 year renewable, straight decreasing, mortgage decreasing, and many more. The 6 term types mentioned here could the same company, and all at selling at different premium rates offer all.
Each year there are new crossbreds added to heap. Some pay cash dividend values, others provide none. Popular derivatives like Universal Life when introduced were going to end all the term vs whole life insurance confusion. You could make your own pie, with a certain amount of pure risk term, grouped in an orderly process with cash value whole life. This did not end the controversy, as now there was another selling choice that agents heavily promoted.
Commission is no longer a factor, at least among independent agents. Career company agents are typically paid 15 to 20% less commission to sell term insurance policies. The whole life policies, more profitable to their home office, gave them a higher incentive to sell. Today you can find independent life insurance carriers that provide various forms of whole life, universal life, and term insurance all at a high first year commission.
Individual policy rates are no longer a factor. You cannot judge an insurance policy by looking at its rate. However a very short time ago, one of the largest term life insurance companies (with AIG) as its first three letters got into a earth destructing bind by combing the lowest rates with absolutely some of the highest commissions. With 99.5% of insurers not so greedy, how do you compare apples to apples? Rates, company age, commissions, overhead, financial investments, policy riders, mortality tables, and underwriting requirements can be researched, and you still will not know which apple you should be selling or buying.
The proper way of buying or selling life insurance policies Insurance is a matter of total risk, and only so many dollars exist to cover only these seven major risks. These are for providing risk plans for sufficient life insurance, car, homeowners, major medical, disability, retirement, and long-term care. How many insurance agent sellers, and policy buyers sit down, and at one time figure out the entire picture. They don't. Insurance is mainly bought by either price (like cheapness), commissions, or by what a prospect is solicited with.
Try this. Come to my house, and I will show you my risks and assets. I have a bank check for $10,000 and tell you to handle all my insurance needs. I would then tell you that you are in competition with 2 others, and I will take the most logical plan. Do you think this is fair? I am giving you a vast selling opportunity, and testing your integrity. Should I care if you increase the cash value of my life insurance policy to provide more retirement benefits or assets? Likewise does it matter if I get some cheaper term insurance so a mortgage disability income plan could go into effect?
Insurance agents have not got their act together in over 100 years. In this information age, they do not have another 20 to wait. People do not need an extreme education on insurance. Insurance agents need to become extremely educated on adapting to their client needs on a total insurance concept.
Publish a Book With Other People's Money
Publish a Book With Other People's Money
After months or years of squeezing in time to write, you've finally finished your manuscript. You had already decided self-publishing was your best option. However, you are now wondering where to find money to publish a book. The good news is money is available to finance the production and promotion of your book. The bad news is you have to find it--because money is not looking for you. Let's explore a couple of options.
Grants, Awards and Contests
Grants, awards, and contests are another way writers finance book projects. Although grants may not be the fastest way to fund your book project, numerous organizations are available to help you. If you meet their guidelines, many foundations are willing to give grants to writers.
Often, writing awards have cash components that can be used to publish a book. The grand prize for some writing contest is the actual publishing of the book. If you can link a book to the mission of a foundation, they may be willing to pay the costs to print the book. All of these options require much effort on your part; however, the potential payoff is you get your book published for free.
Other sources may be found through Internet search engines using keywords such as grants for writing books, writing grants, writing contests or writing awards. The Literary Market Place is another resource available in the reference section of your local library or online at Your local librarian is also an excellent source for assistance. Also, check with the National Endowment for the Arts at
Alter Tax Withholdings
Starting a publishing business entitles you to several business deductions. These deductions may reduce your tax liability. This is done through your employer by altering your W-4 form. This extra money can be used to publish a book. Before you pursue this option, you should check with a tax specialist or tax accountant to verify your business project warrants this approach. Additionally, an accountant can advise you on how to alter your withholdings. A word of caution is in order. If you use this option unwisely, you could find yourself with a tax bill you cannot pay.
Special Market and Premium Sales
Special market sales involve finding niches or nontraditional ways to sell books. A premium sale involves giving away books as part of a marketing promotion. Suppose your book subject is parenting. You have a manuscript and a sample book cover design. You know the director of a local hospital. All you have to do now is negotiate a deal where the hospital gives the book to new mothers. The hospital later agrees to purchase 1,000 books for $7,000. Your deal requires 50 percent down and 50 percent upon delivery of the books. With the $3,500 you receive from the hospital, you have enough money to print 2,000 books.
What is the net result of your deal? You have just financed 1,000 books for you and 1,000 for the hospital. Although this example is probably easier said than done, it does illustrate how you can use nontraditional ways to print your books. Think of how you may apply this concept with book clubs, catalogs, associations, etc. You just may be pleasantly surprised with the outcome.
After months or years of squeezing in time to write, you've finally finished your manuscript. You had already decided self-publishing was your best option. However, you are now wondering where to find money to publish a book. The good news is money is available to finance the production and promotion of your book. The bad news is you have to find it--because money is not looking for you. Let's explore a couple of options.
Grants, Awards and Contests
Grants, awards, and contests are another way writers finance book projects. Although grants may not be the fastest way to fund your book project, numerous organizations are available to help you. If you meet their guidelines, many foundations are willing to give grants to writers.
Often, writing awards have cash components that can be used to publish a book. The grand prize for some writing contest is the actual publishing of the book. If you can link a book to the mission of a foundation, they may be willing to pay the costs to print the book. All of these options require much effort on your part; however, the potential payoff is you get your book published for free.
Other sources may be found through Internet search engines using keywords such as grants for writing books, writing grants, writing contests or writing awards. The Literary Market Place is another resource available in the reference section of your local library or online at Your local librarian is also an excellent source for assistance. Also, check with the National Endowment for the Arts at
Alter Tax Withholdings
Starting a publishing business entitles you to several business deductions. These deductions may reduce your tax liability. This is done through your employer by altering your W-4 form. This extra money can be used to publish a book. Before you pursue this option, you should check with a tax specialist or tax accountant to verify your business project warrants this approach. Additionally, an accountant can advise you on how to alter your withholdings. A word of caution is in order. If you use this option unwisely, you could find yourself with a tax bill you cannot pay.
Special Market and Premium Sales
Special market sales involve finding niches or nontraditional ways to sell books. A premium sale involves giving away books as part of a marketing promotion. Suppose your book subject is parenting. You have a manuscript and a sample book cover design. You know the director of a local hospital. All you have to do now is negotiate a deal where the hospital gives the book to new mothers. The hospital later agrees to purchase 1,000 books for $7,000. Your deal requires 50 percent down and 50 percent upon delivery of the books. With the $3,500 you receive from the hospital, you have enough money to print 2,000 books.
What is the net result of your deal? You have just financed 1,000 books for you and 1,000 for the hospital. Although this example is probably easier said than done, it does illustrate how you can use nontraditional ways to print your books. Think of how you may apply this concept with book clubs, catalogs, associations, etc. You just may be pleasantly surprised with the outcome.
Prosperity is God's Will
Prosperity is God's Will
God's Will is prosperity.
"Beloved, I wish above all things that thou mayest prosper and be in health, even as thy soul propereth" 3 John 2
The programme of God above all things is that you should prosper. Not above some things or few things but above ALL things. This is God's ultimate desire for you. Prosperity is God's will. That is His agenda for all believers including you. God is eternally committed to your prosperity. And the good news is that the devil cannot do anything about it...
"The counsel of the Lord that shall stand"Pro. 19:21 " For the Lord of host hath purposed who shall disannul It? And His hand is stretched out, who shall turn it back?Is 14.27
God has purposed that you should live a prosperous life. That is His counsel for you. It is time to rise up and lay hold on God's ultimate for your life.
He said concerning you "wealth and riches shall be in his house". Ps. 112:3
This is His plan for the righteous. And you are that righteous person once you are washed in the blood of Jesus. To make this plan good in your life. He has also put in place strategies that will help you achieve this.
The beloved, there is no Naira, no dollars in heaven, all the money you desire is here on the earth. Money will never fall from the sky or heaven. That is not how God prospers. God has planned that you should be wealthy, but you must work out His plan for it to become a reality.
"But thou shall remember the Lord thy God, for it is He that giveth thee power to get wealth, that He may establish His covenant which He sware unto thy fathers, as it is this day". Deut 8. 18
God gives power to get wealth. In helping you to realize your destiny and heritage of prosperity in Christ, God gives you power to get wealth. The word power here connotes-ability. Inside every child of God is the ability to prosper.
"For the kingdom of heaven is as a man traveling into a far country, who called his own servants, and delivered unto them his goods.
And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey. Then he that had received the five talents went and traded with the same, and made them other five talents. And likewise he that had received two, he also gained other two.
But he that had received one went digged in the earth, and hid his lord's money. After a long time the Lord of those servants cometh, and reckoneth with them.
And so he that had received five talents came and brought other five talents, saying, Lord, thou deliveredst unto me five talents: behold, I have gained beside them five talent more. His lord said unto him, well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy Lord..." Matt. 25:14-30.
There is a deposit of heaven in every believer that should make him or her a prosperous personalty on the planet earth. "He gave to every man"
"He gave", God has given you. There is something on your inside that will change your financial world for better. He has empowered you to prosper. What you do with the empowerment will determine what happens at the end of the day. He has given you gifts and talents. There is no untalented or ungifted person in the kingdom of God. Your God-given gifts and talents are your high way to a prosperous life.
They are there. God will never take it away from you. "For the gift and calling of God are without repentance" Rom. 11:29.
God has strategically programmed your prosperity to the use of your gifts and talents. There are what I call "3 Ds" of prosperity, which will help you make the most of God's deposit in your life.
THREE "Ds" OF PROSPERITY
Discovery:
Recovery in finances begins with a discovery. Those who are willing to discover will recover. No matter what you have lost, this time you will recover all in Jesus' name. You need to take time out to discover what God has put in you. The gift of God is there deep in the inside of you. There is a gift God put in you that should make the world seek after you. You have something to offer the world, for which they will be willing to pay you in return. There is something the world is waiting to benefit from you that will cause money to come your way. Money comes essentially to people for solving problems and meeting needs.
There is a gift in you that will meet somebody's need, solve a problem for somebody. That will make them give you their money. Money will come your way in exchange for services and goods that you can deliver. Are you gifted in the area of music, acting, fashion designing, teaching? Or yours could be in sales. As you deliver these services money will come to you.
"A gift is as a precious stone in the eyes of him that hath it: whithersoever it turneth, it prospereth". Pro. 17:8.
Nothing opens doors of prosperity like gifts, it will take you to high places.
"A man's gift maketh room for him, and bringeth him before great men" Pro. 18:16
Your gift will make room for you in the world of prosperity. It is your highway to a world of prosperity and abundance. You will not miss your place in life in Jesus' name.
Many are struggling today in vocations and careers they are not gifted for. Many are in certain business they should not be, some should not even have anything to do with going into business because they are not gifted in this area. This is the reason many are frustrated. Can you imagine a woman that can't stand the noise of children going out to open a Day Care Centre for children; she would end up a frustrated person. Friend you are a champion in your area of gifting.
Your gift is the natural endowment in you, this is your point of strength. You operate without much effort in your area of gifting, its just part of you. Make the discovery, it is worth it.
Development
Once you have succeeded in discovering your gift, it is wisdom for you to develop yourself along this area so as to make the most of it
"Wherefore I put thee to remembrance that thou stir up the gift of God which is in thee" 2 Tim 1:6
Talented footballers and musicians spend hours practicing to perfect their skill. Train, study and know all you need to know. Basketball legend Larry Bird became an outstanding free throw shooter by practicing 500 shots each morning before he went to school. The secret of success is found in our daily agenda Champions don't become champion in the ring, they are merely recognized there. The secret of success in life is for a man to be ready for his time when it comes.
DISTRIBUTION
"Neglect not the gift that is in thee" 1Tim.4:14.
Whatever gift God has blessed you with, it's for you to bless others with. It is in using your gift to meet the needs of others, and to solve people's problems that money will come into your hands. Wealth does not fall on people, it is created. You are to use your gift to create yours. From the scripture quoted in Matt.25. Those that prospered and profited from what was given them, went and traded with same.
Trade the same not another person's gift, don't try to be somebody else. Don't wish you were gifted in some other areas. Your gift is good; it can take you places if you give attention to it. The problem most of the time is not what we don't have but what we are doing with what we have.
Do something with what you have. Stop looking around to other people's gift and wishing "if I had that sister's gift, life will be more comfortable". Comparing yourself with others is not wisdom. Be yourself. You're unique. Trade what you have. Don't just go around the town talking about it. Do something worthwhile with it.
As a gifted singer there is somebody waiting to be blessed by your music, who will in exchange pay you for it. People pay so much to watch footballers play. Go out and put your gift to work. There is a market for it. Don't let what you studied in school lock up your destiny. Some study certain courses they are not gifted for, as a result they do jobs they are not enjoying and therefore can't really be effective. And that is why they are poor.
Finally responsibility is the price for greatness. You need to wake up and look inward. Discover what God has put on the inside of you. It's a pointer to what you can do effectively and successfully. Discover it! Develop it! And distribute same for a prosperous life. It is truly your hour of prosperity in Jesus name.
God's Will is prosperity.
"Beloved, I wish above all things that thou mayest prosper and be in health, even as thy soul propereth" 3 John 2
The programme of God above all things is that you should prosper. Not above some things or few things but above ALL things. This is God's ultimate desire for you. Prosperity is God's will. That is His agenda for all believers including you. God is eternally committed to your prosperity. And the good news is that the devil cannot do anything about it...
"The counsel of the Lord that shall stand"Pro. 19:21 " For the Lord of host hath purposed who shall disannul It? And His hand is stretched out, who shall turn it back?Is 14.27
God has purposed that you should live a prosperous life. That is His counsel for you. It is time to rise up and lay hold on God's ultimate for your life.
He said concerning you "wealth and riches shall be in his house". Ps. 112:3
This is His plan for the righteous. And you are that righteous person once you are washed in the blood of Jesus. To make this plan good in your life. He has also put in place strategies that will help you achieve this.
The beloved, there is no Naira, no dollars in heaven, all the money you desire is here on the earth. Money will never fall from the sky or heaven. That is not how God prospers. God has planned that you should be wealthy, but you must work out His plan for it to become a reality.
"But thou shall remember the Lord thy God, for it is He that giveth thee power to get wealth, that He may establish His covenant which He sware unto thy fathers, as it is this day". Deut 8. 18
God gives power to get wealth. In helping you to realize your destiny and heritage of prosperity in Christ, God gives you power to get wealth. The word power here connotes-ability. Inside every child of God is the ability to prosper.
"For the kingdom of heaven is as a man traveling into a far country, who called his own servants, and delivered unto them his goods.
And unto one he gave five talents, to another two, and to another one; to every man according to his several ability; and straightway took his journey. Then he that had received the five talents went and traded with the same, and made them other five talents. And likewise he that had received two, he also gained other two.
But he that had received one went digged in the earth, and hid his lord's money. After a long time the Lord of those servants cometh, and reckoneth with them.
And so he that had received five talents came and brought other five talents, saying, Lord, thou deliveredst unto me five talents: behold, I have gained beside them five talent more. His lord said unto him, well done, thou good and faithful servant: thou hast been faithful over a few things, I will make thee ruler over many things: enter thou into the joy of thy Lord..." Matt. 25:14-30.
There is a deposit of heaven in every believer that should make him or her a prosperous personalty on the planet earth. "He gave to every man"
"He gave", God has given you. There is something on your inside that will change your financial world for better. He has empowered you to prosper. What you do with the empowerment will determine what happens at the end of the day. He has given you gifts and talents. There is no untalented or ungifted person in the kingdom of God. Your God-given gifts and talents are your high way to a prosperous life.
They are there. God will never take it away from you. "For the gift and calling of God are without repentance" Rom. 11:29.
God has strategically programmed your prosperity to the use of your gifts and talents. There are what I call "3 Ds" of prosperity, which will help you make the most of God's deposit in your life.
THREE "Ds" OF PROSPERITY
Discovery:
Recovery in finances begins with a discovery. Those who are willing to discover will recover. No matter what you have lost, this time you will recover all in Jesus' name. You need to take time out to discover what God has put in you. The gift of God is there deep in the inside of you. There is a gift God put in you that should make the world seek after you. You have something to offer the world, for which they will be willing to pay you in return. There is something the world is waiting to benefit from you that will cause money to come your way. Money comes essentially to people for solving problems and meeting needs.
There is a gift in you that will meet somebody's need, solve a problem for somebody. That will make them give you their money. Money will come your way in exchange for services and goods that you can deliver. Are you gifted in the area of music, acting, fashion designing, teaching? Or yours could be in sales. As you deliver these services money will come to you.
"A gift is as a precious stone in the eyes of him that hath it: whithersoever it turneth, it prospereth". Pro. 17:8.
Nothing opens doors of prosperity like gifts, it will take you to high places.
"A man's gift maketh room for him, and bringeth him before great men" Pro. 18:16
Your gift will make room for you in the world of prosperity. It is your highway to a world of prosperity and abundance. You will not miss your place in life in Jesus' name.
Many are struggling today in vocations and careers they are not gifted for. Many are in certain business they should not be, some should not even have anything to do with going into business because they are not gifted in this area. This is the reason many are frustrated. Can you imagine a woman that can't stand the noise of children going out to open a Day Care Centre for children; she would end up a frustrated person. Friend you are a champion in your area of gifting.
Your gift is the natural endowment in you, this is your point of strength. You operate without much effort in your area of gifting, its just part of you. Make the discovery, it is worth it.
Development
Once you have succeeded in discovering your gift, it is wisdom for you to develop yourself along this area so as to make the most of it
"Wherefore I put thee to remembrance that thou stir up the gift of God which is in thee" 2 Tim 1:6
Talented footballers and musicians spend hours practicing to perfect their skill. Train, study and know all you need to know. Basketball legend Larry Bird became an outstanding free throw shooter by practicing 500 shots each morning before he went to school. The secret of success is found in our daily agenda Champions don't become champion in the ring, they are merely recognized there. The secret of success in life is for a man to be ready for his time when it comes.
DISTRIBUTION
"Neglect not the gift that is in thee" 1Tim.4:14.
Whatever gift God has blessed you with, it's for you to bless others with. It is in using your gift to meet the needs of others, and to solve people's problems that money will come into your hands. Wealth does not fall on people, it is created. You are to use your gift to create yours. From the scripture quoted in Matt.25. Those that prospered and profited from what was given them, went and traded with same.
Trade the same not another person's gift, don't try to be somebody else. Don't wish you were gifted in some other areas. Your gift is good; it can take you places if you give attention to it. The problem most of the time is not what we don't have but what we are doing with what we have.
Do something with what you have. Stop looking around to other people's gift and wishing "if I had that sister's gift, life will be more comfortable". Comparing yourself with others is not wisdom. Be yourself. You're unique. Trade what you have. Don't just go around the town talking about it. Do something worthwhile with it.
As a gifted singer there is somebody waiting to be blessed by your music, who will in exchange pay you for it. People pay so much to watch footballers play. Go out and put your gift to work. There is a market for it. Don't let what you studied in school lock up your destiny. Some study certain courses they are not gifted for, as a result they do jobs they are not enjoying and therefore can't really be effective. And that is why they are poor.
Finally responsibility is the price for greatness. You need to wake up and look inward. Discover what God has put on the inside of you. It's a pointer to what you can do effectively and successfully. Discover it! Develop it! And distribute same for a prosperous life. It is truly your hour of prosperity in Jesus name.
Executive Director Job Description
Executive Director Job Description
Every organization has definite goals and aims, and several people work together and complement each other to meet those goals. Planning, organizing, managing, controlling, and sustaining are the keys for organizational growth and development. At the departmental level, these tasks are done by the supervisory level people and the junior management. But who is the person taking care of the overall planning and management at the organizational level? Well, he is the executive director of the organization! An executive director is also known as the chief executive officer of an organization, or the managing director, who looks after the management of administration, production, marketing, operational, quality, and many such aspects which constitute the business structure of the organization.
Planning and managing work in liaison with the board of directors is the core duty of the executive director. It is along these lines that the executive director performs all the other tasks and responsibilities. We will now move on to get a fair idea of the executive director job description.
Job Description of an Executive Director
The executive director's role is an important one. He is among the key members of an organization, and every decision made by the executive director has a large impact on the overall business of the organization. The following are the duties of an executive director.
Cost-effective running, maximum productivity, and maximized profits are the main areas of concern of a managing director.
The first task of an executive director is to formulate strategies and developmental plans for the welfare of the organization.
He needs to coordinate with the board of directors, vice president, senior vice president, etc., for the development and implementation of such programs.
To lead the entire organization is the most important responsibility of the executive director. As a leader, he has to focus on all the core functions of the organization.
He needs to ensure that the developmental programs are designed in a way to meet the organizational goals and objectives.
An executive director has to look after the overall management of the human resource department, quality, and operations department.
He needs to work on the of the organization, to make sure that a capable management is in place to handle all the work efficiently.
He also needs to maintain various official as well as higher management and confidential documents, and produce them when necessary to the board of directors.
The executive director needs to be informed and be in control of everything in the organization, from assets, budget, planning, profit/loss, finance, training, technological advancements, etc.
He will be required to chair all the top-level meetings, and report to the chairman of the board of directors.
Last but not the least, he needs to possess excellent leadership qualities and set a fine example to the staff of the whole organization. Executive Director Salary Range
After getting an idea of the job description of executive directors, let us now look at their salary range. Executive directors work under a lot of pressure, as every single decision taken by them matters a lot to the whole company as well as its stakeholders. Being from the top management level, executive directors earn a handsome salary. Those with less than 1-year experience earn around $50,000 - $70,000, whereas those with about 1 - 5 years experience earn about $65,000 - $75,000. Executive directors with 5 - 10 years experience are paid in the range of $75,000 - $100,000, and the ones who have worked for anything between 10 - 20 years (or more) at the planning and management level, earn somewhere around $100,000 - $150,000. These are just the approximate salary ranges, the overall average for the United States being around $120,000. The exact salary depends upon the experience, size and type of employer, performance, and most importantly the educational qualifications, which is mostly a master's degree in business administration and management.
Although executive directors are not directly involved in the operational and quality work, they have a large influence on the working and functioning of these departments. This is because, managing, preparing developmental plans, and the overall organizational control is in their hands. There are tremendous career prospects in this field, as every organization needs logical thinkers, sensible planners, and efficient managers to propel them to greater heights. However, as an executive director, you need to be qualified and capable enough to handle large responsibilities, which is never an easy thing.
Every organization has definite goals and aims, and several people work together and complement each other to meet those goals. Planning, organizing, managing, controlling, and sustaining are the keys for organizational growth and development. At the departmental level, these tasks are done by the supervisory level people and the junior management. But who is the person taking care of the overall planning and management at the organizational level? Well, he is the executive director of the organization! An executive director is also known as the chief executive officer of an organization, or the managing director, who looks after the management of administration, production, marketing, operational, quality, and many such aspects which constitute the business structure of the organization.
Planning and managing work in liaison with the board of directors is the core duty of the executive director. It is along these lines that the executive director performs all the other tasks and responsibilities. We will now move on to get a fair idea of the executive director job description.
Job Description of an Executive Director
The executive director's role is an important one. He is among the key members of an organization, and every decision made by the executive director has a large impact on the overall business of the organization. The following are the duties of an executive director.
Cost-effective running, maximum productivity, and maximized profits are the main areas of concern of a managing director.
The first task of an executive director is to formulate strategies and developmental plans for the welfare of the organization.
He needs to coordinate with the board of directors, vice president, senior vice president, etc., for the development and implementation of such programs.
To lead the entire organization is the most important responsibility of the executive director. As a leader, he has to focus on all the core functions of the organization.
He needs to ensure that the developmental programs are designed in a way to meet the organizational goals and objectives.
An executive director has to look after the overall management of the human resource department, quality, and operations department.
He needs to work on the of the organization, to make sure that a capable management is in place to handle all the work efficiently.
He also needs to maintain various official as well as higher management and confidential documents, and produce them when necessary to the board of directors.
The executive director needs to be informed and be in control of everything in the organization, from assets, budget, planning, profit/loss, finance, training, technological advancements, etc.
He will be required to chair all the top-level meetings, and report to the chairman of the board of directors.
Last but not the least, he needs to possess excellent leadership qualities and set a fine example to the staff of the whole organization. Executive Director Salary Range
After getting an idea of the job description of executive directors, let us now look at their salary range. Executive directors work under a lot of pressure, as every single decision taken by them matters a lot to the whole company as well as its stakeholders. Being from the top management level, executive directors earn a handsome salary. Those with less than 1-year experience earn around $50,000 - $70,000, whereas those with about 1 - 5 years experience earn about $65,000 - $75,000. Executive directors with 5 - 10 years experience are paid in the range of $75,000 - $100,000, and the ones who have worked for anything between 10 - 20 years (or more) at the planning and management level, earn somewhere around $100,000 - $150,000. These are just the approximate salary ranges, the overall average for the United States being around $120,000. The exact salary depends upon the experience, size and type of employer, performance, and most importantly the educational qualifications, which is mostly a master's degree in business administration and management.
Although executive directors are not directly involved in the operational and quality work, they have a large influence on the working and functioning of these departments. This is because, managing, preparing developmental plans, and the overall organizational control is in their hands. There are tremendous career prospects in this field, as every organization needs logical thinkers, sensible planners, and efficient managers to propel them to greater heights. However, as an executive director, you need to be qualified and capable enough to handle large responsibilities, which is never an easy thing.
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