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Category: Management

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Management Operations Strategy

How to Create Better Training Programs for Younger Millennial Workers

Two young entrepreneurs or businesspeople are working together to brainstorming analyze investment data in documents and laptops.in planning the company's profitability and dealing with the recession

The so-called millennial generation (also called “Generation Y”) includes people born between 1980 and 1998.  Many older millennials, now in their early to mid-30s, are already established in their careers. Chances are that many of them are already working throughout the ranks of your organization. They have taken part in your training, maybe even designed parts of your training, and chances are very good that you already understand their learning preferences well.

Let’s take a closer look at younger working millennials – people born between about 1990 and 1995. These are the younger workers who might be applying for their first “real” post-college jobs with your organization right now.  They’re young and fresh-faced, yet if you’re a a generation or two older than they are, chances are that you’ve hit some roadblocks when creating training programs that work well for them.

Key Traits of Younger Millennials

Although generalizations tend to be flawed, here are some attitudes that we have found to be shared by significant members of this cohort.

  • An entrepreneurial mindset – They want to stake out a business identity and space for themselves – even in larger companies.
  • Risk tolerance – Many are self-confident and are willing to help their employers take risks.
  • A love of technology – They tend to be highly mobile and like to access information and training on smartphones and tablets.
  • Social consciousness – They tend to be compassionate and respond positively to working for companies that embrace and support social causes and “doing good in the world.”
  • Openness – Many welcome being part of diverse workforces. Furthermore, they are more welcoming of alternative lifestyles than preceding generations were.
  • Career mobility – Many do not have a lot of company loyalty – they will change jobs often as a way to achieve personal goals and success.

Critical Steps to Take when Training Millennials

As you develop and improve your training programs, here are some ways to make them more compelling and effective with younger millennial workers:

  • Keep it short – Present learning lessons and modules in small “digestible” chunks that millennials can absorb quickly. They are a fast-moving cohort and often become uninterested as soon as training seems irrelevant.
  • Use animations, WAV files and other moving images to deliver key concepts. They work better than words or text to convey big concepts to millennials.
  • Deliver training on platforms that millennials prefer and already use, including smartphones and tablets. They are the mobile-friendly generation.
  • Ask for their ideas and suggestions during training, because millennials think like entrepreneurs, value autonomy, and like to shape the content of their jobs.
  • Express your company values in your training. You can explain, for example, that your organization is trying not just to generate profits, but to support employees and do good in the world. When younger millennials see that their work supports those objectives, they are more likely to believe in company leaders and initiatives – and more likely to experience levels of satisfaction that make them want to continue working for you in the long term.
Categories
Advice Best Practices Culture Entrepreneurship Growth Human Resources Leadership Management Operations Personal Development

Rise To The Challenge: How Business Owners Navigate Expectations

 

Business owners across the world wake up every morning to confront a new day filled with new and increasing challenges and opportunities.

The dawn of the digital age has not only transformed the way we live but has also revolutionized the very fabric of the modern workforce. As such, the time for mastering the art of adapting to new workforce expectations has finally arrived and it doesn’t appear to be go away any time soon.

 

Mastering the Art of Adapting to New Workforce Expectations:

Long gone are the days of the yellow pages, fax machines, and life-long employees. The world we live in today is vastly different from what it was just a few decades ago. Technological advancements and the advent of interconnectedness have spawned a generation of employees who possess unique aspirations, desires, and ambitions that can be both obstacles and opportunities for modern employers.

Traditional notions of job security and stability have given way to a quest for purpose, fulfillment, and work-life integration. If we want to find and keep a talented workforce engaged, the evolution in employee expectations demands a complete reevaluation of the employer-employee relationship, while adopting a flexible and compassionate approach to attract and retain new talent.

In this era of rapid change, we must learn to first recognize the importance of fostering a culture of continued learning and growth within our organizations. Employees now seek more than just a paycheck; they crave opportunities for professional development and personal enrichment.

As business owners, it falls upon our shoulders to cultivate an environment that nurtures curiosity and constant pursuit of knowledge. Embracing this paradigm shift not only enhances the skill sets of our teams but also empowers them to face future challenges head-on.

Moreover, the changing dynamics of the workforce demand a departure from the traditional hierarchical structures that once defined organizations. Today’s employees desire a sense of autonomy, empowerment, and purpose in their roles. As leaders, it is imperative to align your company’s values and objectives with the individual aspirations of your employees. And, to successfully extract the best of every team member every single time.

 

Unlocking the True Potential of Your Workforce:

The rise of the gig economy and remote work has further reshaped the expectations of today’s B2B workforce. Flexibility and work-life integration have become paramount in the pursuit of professional happiness. Every business has adapted their policies and practices to accommodate these shifting dynamics. Embracing remote work options, implementing flexible scheduling arrangements, and leveraging technology to foster seamless collaboration in meeting the evolving expectations of a global and digital work environment.

However, it’s also important to note that navigating this complex landscape is not without its challenges among the mountain of other demands we all face on a daily basis.

One of the biggest obstacles we face is resistance to change, skepticism, or even apprehension from employees accustomed to the traditional ways of working. This is where you need to ensure everyone’s onboarding by fully aligning your mission, vision and values with your overall strategy, goals, and outcomes. Share your vision of where you want to be and empower each team member to make decisions.

If they’re wrong, so what? No one will die.

If they feel empowered to act, instead of forced to do something, you will have moved them from a negative viewpoint, to a positive, more productive one.

 

How to Use Your Secret Weapon:

Communication, transparency, and understanding are key in appeasing the concerns of potential new hires and current employees. By clearly articulating the vision and path forward, engaging in open dialogue, and involving employees in the decision-making process, you can build a culture of trust and resilience that will withstand the test of time.

Rising to the challenge requires embracing change, adapting your strategies, and nurturing a workplace environment that values growth, purpose, and flexibility.

By recognizing the unique aspirations of your employees, fostering a culture of continual learning, and reimagining traditional structures, you can navigate these evolving expectations with ease and ingenuity. Remember, the path to success lies not in resisting change but in harnessing its transformative power to create a workplace that is both fulfilling and prosperous for all.

Here are a few effective ways to attract and retain top talent.

 

Embracing Workplace Flexibility: The Power of Choice

One of the most significant shifts in workforce expectations revolves around the increasing demand for workplace flexibility. According to a New World of Work survey, almost half (45 percent) of businesses cited staggered or flexible work schedule as a major change in their operations. The traditional 9-to-5 is a thing of the past.

Nowadays, individuals seek a better work-life integration and greatly value the ability to have more control over when, where, and how they work.

It is mission critical to recognize the benefits of embracing workplace flexibility. By offering flexible work arrangements, such as remote work options or flexible hours, you can enhance employee satisfaction, boost productivity, and attract a broader pool of talent. By placing trust in your employees and focusing on outcomes rather than rigid work hours, you create an environment where individuals can thrive and achieve their best work.

Cultivating a Culture of Continuous Learning

Another vital aspect is emphasizing continuous learning and professional development. Today’s employees highly value opportunities for growth, expanding their skill sets, and staying ahead in a fast-paced and competitive market.

Encourage employees to pursue professional development opportunities, provide access to training programs, and support their desire to learn and acquire new skills.

By investing in their growth, you not only empower your teams to reach their full potential but also demonstrate your commitment to their long-term success.

 

Prioritizing Diversity and Inclusion: Building a Stronger Team

Diversity and inclusion have emerged as integral components of workforce expectations in recent years. People now value organizations that prioritize diversity and inclusion and actively create an inclusive work environment where everyone feels valued, respected, and heard. The key word is inclusion. Include your team on making some of the big decisions and bring more ideas to the table so they feel heard and appreciated.

It is critical to use diversity and inclusion to gain a competitive advantage. Actively seek diverse talent during recruitment processes, implement policies that promote equal opportunities that foster an inclusive workplace culture. By embracing diversity of thoughts and ideas, you can tap into a wealth of perspectives, experiences, knowledge, and ideas that drive innovation and ultimately lead to better business outcomes.

After all, adapting to today’s digital world, takes an ‘all hands on deck’ approach.

 

Adapting to Technological Advancements: Embracing the Digital Age

Technological advancements continue to reshape the way we work, and businesses must adapt to remain competitive. From automation and artificial intelligence to cloud computing and data analytics, the digital age offers a multitude of opportunities for businesses to streamline operations, improve efficiency, and drive growth.

Staying informed about the latest technological trends and identifying ways to leverage them to your advantage is what will help us thrive. Let’s add embracing digital transformation, investing in a robust IT infrastructure, and providing your employees with the tools and resources they need to succeed – that’s the formula for success.

Embracing technology to optimize processes, unlocks new possibilities, and positions your business as a forward-thinking industry leader.

Also, promote your organization’s forward thinking, modern digital approach in your job listings. This will attract the type of talent you want on your team to create long-term success.

Last but not least, look after the well-being of your team. Being a manager is not just about giving orders, it’s about taking care of your people.

 

Nurturing Employee Well-Being: The Key to Sustainable Success

Amidst the changing workforce expectations, one critical aspect that should never be overlooked is employee well-being, both mental and physical. Your employees are the lifeblood of your organization and your most valuable asset. Their well-being directly impacts the overall success and productivity of your business.

Take a proactive approach to prioritize employee well-being. Implement initiatives that support work-life integration, mental health, and physical wellness. Encourage open communication, provide opportunities for relaxation and rejuvenation, and create a supportive and inclusive work environment.

 

Conclusion

In conclusion, the world of business is in a perpetual state of flux, driven by technological advancements and the changing expectations of the modern workforce. As a business owner, rising to the challenge requires embracing change, adapting your strategies and business models, and nurturing a workplace environment that values growth, purpose, and flexibility.

The path to success lies not in resisting change but in harnessing its transformative power to create a workplace that is both fulfilling and prosperous for all.

 

 

 

Categories
Advice Entrepreneurship Growth Leadership Management Skills Strategy

Leading Through Future Uncertainty

 

It’s often said by thought leaders and business gurus that “it’s never been easier to start a business than today”. While that may be true it’s also never been more confusing time to run one in today’s uncertain business climate.

Running a business is a thrilling journey filled with highs and lows, triumphs and challenges, joys and stress. Business owners experience stress of all kinds. When it comes to stress, you can say we’re experts at it.

But there is one kind of stress I want to talk about today – dealing the stress of uncertainty.

The Massive Elephant in Every Boardroom: Uncertainty

It’s widely acknowledged that uncertainty is a common concern among business owners. And for good reason. Market fluctuations can come out of nowhere like a tornado and destroy us at any time. Regulatory changes and technological advancements are forcing everyone to digitize every aspect of their organization as fast as possible just to stay one step ahead of getting left behind.

If that weren’t enough to worry about, competitors are breading and populating like rabbits. Not to mention the giant Microsoft sized looming recession-fueled financial crisis and rising interest rates.

Uncertainty is everywhere, and left unchecked, it can destroy even the most seasoned business leaders and teams.

Time and again, I have witnessed doubt, uncertainty, and fear. They possess the capability to annihilate a company and, at times, even an entire industry. What prevents companies from making the necessary changes crucial for their prosperity?

In the world of business, failing to act at all, is the riskiest move one can make.

Throughout history, countless companies have vanished because their leaders were reluctant to embrace change when clear warning signs were evident. Fear, apathy, and a lack of personal accountability, these fundamental human flaws can transform a promising company into a lifeless entity. Ultimately, it all boils down to the cancerous nature of uncertainty.

This is why it is imperative to address the elephant in the room…

The unknown can be overwhelming and emotionally exhausting, that’s why it is vital to take time to develop effective strategies to navigate the stress of uncertainty so you can conquer it before it conquers you and potentially your business.

 

Mastering Uncertainty: 10 Foolproof Steps to Secure Your Business’s Future

Uncertainty is an inherent part of entrepreneurship. The future is unpredictable, and as a business owner, it’s essential to acknowledge and accept this reality. Moreover, uncertainty can take an emotional toll, leading to unwanted anxiety and stress.

By addressing the emotional challenges associated with uncertainty, you can build resilience and find opportunities even in the face of ambiguity.

 

9 Steps to Master Uncertainty:

1. Acknowledge the Uncertainty as a Friend Instead of a Foe

The first step in dealing with uncertainty is acknowledging its presence. Understand that the future is not set in stone, and unexpected events can occur. By accepting this reality, you can shift your focus from trying to predict the future like some Nostradamus but rather develop strategies that can adapt to any scenario life throws at you.

Embrace the Socratic idea that uncertainty is not a hindrance but an invitation to innovate and grow. Life would be boring without uncertainty and continual growth.

 

2. Embracing a Growth Mindset

To navigate uncertainty successfully, cultivating an abundance, growth mindset is the only way to overcome self-doubt. A growth mindset enables you to view challenges as opportunities for learning and development. Embrace the belief that you can adapt, learn, and improve, regardless of the circumstances keeping you up at night. By fostering a positive attitude towards change, you can remain agile and resilient in the face of indecision.

Remember, the most dangerous move in business is the failure to make a move at all. It’s better to make the wrong move quickly and move on that wait too long to make the right decision. It comes down to mindset.

 

3. Dig a Mote Around Your Business Foundation

Build a solid fortifications around your business like the enemy is about to siege your castle. Dig a mote, build more weapons, and get your team ready for battle war. Conduct thorough market research to gain a deep understanding of your target audience, industry trends, and competitors, and software to make you more operationally efficient. This knowledge will allow you to make informed decisions and adapt your business strategies accordingly. Deeping your relationships with your existing customers. Keeping your current customer base during hard times can be easier than ignoring them and trying to find new ones. Having a clear roadmap in place will provide guidance during uncertain times.

PS. For more details on how to navigate your business during a recession, access my free eBook here.

4. Diversification and Flexibility

When uncertainty raises it’s ugly head, diversification and flexibility are become your secret weapons like a playbook out of The Art of War. Expand your product or service offerings to cater to a broader customer base. By focusing on diversifying your revenue streams, you can mitigate risks and adapt to changing market conditions. Explore new markets and customer segments to tap into untapped opportunities. Being open to change and willing to embrace new ideas will help you navigate uncertainty with confidence.

For Example, An IT consulting firm: During a uncertain economic times, businesses may scale back on IT infrastructure investments. To diversify its product offerings, a small IT consulting firm could expand into cost-effective solutions like cloud computing, software-as-a-service (SaaS) implementations, or cybersecurity services. This diversification allows the firm to offer more flexible and budget-friendly IT solutions to businesses looking to optimize their operations.

Don’t get stuck in a corner, have a plan b ready before you even need one.

 

5. Establish and Build a Strong Network

The strength of your network is the heart of your business. Building a network of mentors, advisors, and like-minded business owners can provide valuable support during uncertain times. Connect with experienced individuals who have successfully navigated similar challenges. Their insights and guidance can offer you a fresh perspective and help you make informed decisions. Collaborating with other business owners can also lead to partnerships and opportunities for mutual growth.

For help building your professional network look for private networks like the C-Suite Network where you can gain new connections and insights on your business from other seasoned executives.

 

6. Continuous Learning and Innovation

In a rapidly evolving business landscape, continuous learning and innovation are key to survival. Stay updated with industry trends, advancements, and technological developments. Encourage your team to engage in professional development and provide them with opportunities to enhance their skills.

By fostering a culture of innovation, you can adapt quickly to changes and seize emerging opportunities by multiply the brainstorming of innovation to your entire team and alleviate some of the pressure off your shoulders.

 

7. Effective Risk Management

Uncertainty often brings along potential risks. Identifying and managing these risks is crucial for business owners. Conduct a thorough risk assessment to identify potential threats to your business. Develop contingency plans to mitigate these risks and ensure business continuity.

Regularly review and reassess your risk management strategies to adapt to changing circumstances.

 

8. Seeking Support and Guidance

During uncertain times, seeking support and guidance can make a significant difference. Join business associations and communities where you can connect with fellow entrepreneurs facing similar challenges. These networks provide opportunities for collaboration, sharing experiences, and seeking advice. Additionally, don’t hesitate to seek professional help from consultants or business coaches who can offer objective insights and help you navigate uncertainty effectively.

 

9. Emphasizing Self-Care

Running a business amidst uncertainty can be a mental and emotional rollercoaster. It’s vital to prioritize self-care to maintain your well-being. Manage stress and anxiety through activities such as exercise, meditation, or spending time with loved ones. Maintain a healthy work-life balance to prevent burnout.

Taking care of yourself allows you to approach challenges with a clear mind and renewed energy.

 

Conclusion

Uncertainty is an unfortunate coast of doing business an owner or executive . But acknowledging any self-doubt and embracing a growth mindset, you can navigate the unpredictable future with resilience and adaptability. Hell, you might even learn to love it.

Building a solid foundation, diversifying your business, establishing strong networks, and continuously learning and innovating are key strategies to thrive amidst uncertainty. Effective risk management, seeking support and guidance, and emphasizing self-care are also essential for maintaining emotional well-being and achieving long-term success.

In my book, Running the Gauntlet, Essential Lessons to Lead, Drive Change, & Grow Profits I put the following in the Dedication:

“To all the naysayers, opportunists, and obstructionists who do their best to stop the progress of change in an organization. Note: We will beat you.”

While we are living in uncertain times, remember that these are the moments when people need leaders to step up the most.

 

Categories
Advice Best Practices Management

 Can a Corporation or LLC build its own Credit? 

Starting a business can be a daunting but exciting task. There are countless things to consider before taking the plunge; from creating a plan and budget, to finding the right investors, vendors and employees. One of the most important aspects of starting a business is building your credit, which is often one of the biggest hurdles entrepreneurs face. Fortunately, corporations and Limited Liability Companies (LLCs) have the ability to build their own credit in order to access financing for their business endeavors.

Having multiple corporations or LLC’s gives you more borrowing power than if you only had one entity. Having several entities also allows you to diversify your funding sources and manage credit risks better as well as gain benefits that come with doing business with multiple lenders. For example, lower interest rates can be accessed when dealing with several creditors instead of just one. Additionally, having several corporations or LLC’s mean that you have more options when it comes to loan types such as lines of credit or term loans that best suit your purposes for different projects.

While having multiple entities may seem like a complicated structure, it does not have to be difficult when done correctly. You should work closely with an experienced team who can help set up each company in accordance with state regulations as well as recommend tax strategies that fit your individual situation. It’s also helpful to establish an ongoing relationship with lenders so they become familiar with your businesses and recognize their value; this helps build credibility which makes it easier to obtain funding when needed. Not only will this increase your chances of getting approved for loans but also provide access to more flexible terms and lower interest rates over time.

Ultimately, understanding how corporations and LLC’s work together will give you an advantage when seeking funding for business endeavors; having multiple entities gives you more borrowing power while also providing added financial flexibility through different loan types and terms offered by various lenders. Working closely with experienced advisors who understand both corporate structures as well as financing options can help ensure success in leveraging all available resources in order to build strong foundations for long-term success in business ventures.

Schedule a call today with one of my experts http://www.calendly.com/Stephan-controllers or call my office for a complimentary consultation at 775-384-8124. 

 Much Success, 

Scott L. Arden, CEO Controllers, Ltd www.controllersltd.com 

Categories
Advice Growth Leadership Management

Fight Complacency

A confident businessman standing in red boxing gloves on his hand in front of blue wall background with drawn strength lines illustration concept.

An excerpt from my new book, Ingaged Leadership Meets the Younger Generation

Complacency comes in a variety of forms. You can recognize it in statements like:

  • “Business is good—I’d like it to keep going well, so I don’t need to do anything.”
  • “If it ain’t broke, don’t fix it.”
  • “I’m making enough money; I don’t need to make more.”

I actually had someone tell me, “I don’t need to raise my margins. I’m making enough money. I’d rather just give more to my customers.” On the surface that sounds noble, but it isn’t. Profits might seem like greed, but they’re not. They’re about growing and investing in your business. They’re about protecting your job and your employees’ jobs. Every business needs profits.

If you’re suffering from this pitfall and believe your business is so good that you don’t need to grow it, I urge you to shake things up a bit and shift your perspective.

Unfortunately, your competitors probably didn’t get that same message that they are doing well enough. They are innovating and growing their businesses. That is one reason why you constantly have to work to make your business better.

Another temptation to become complacent:

Some people seem to believe that if they work harder, they will destroy their work-life balance. I am a very big believer in establishing a good work-life balance, but the reality is that you want your business to achieve all it can achieve. I like to remember that even in a company that has become wildly successful, it is still possible for people to enjoy time with their families.

To summarize, work-life balance doesn’t mean your business goes on hold so you can attend to personal pursuits. The reality is if your business is on hold, your business is going backwards; some other company is going to outperform you. You will then have a serious issue when your business encounters problems in the future. Leading an enterprise that is going downhill will have a way of doing more harm to your work-life balance than you believed possible.

Cultivate the Ability to “Eat Elephants”

You have probably heard the old question, “How do you eat an elephant?” The answer: “One bite at a time.”

The answer to that question is a good one to keep in mind every day as a leader and a manager. Instead of feeling overwhelmed by the enormity of certain critical initiatives or processes that you would like to tackle, simply get started by taking a small step—in effect, by “taking one small bite at a time.”

Those big elephants are the projects that seem so complex you tend to put them off. One could be writing a business plan for a new company or division that you would like to launch, so that you can obtain funding. Another might be studying the efficiencies of the outsourced call centers you are using so that you can decide whether to open an internal call center of your own. 

When we are faced with tasks like those, “taking a first bite” is critically important. That bite could be creating an internal task force to explore an issue or calling some of your contacts to ask for input.

The first bite can be small, but here’s one piece of advice that I can offer: Whatever that first bite will be, try to take it soon. Do it today, if possible.

Categories
Capital Leadership Management

UNLOCKING YOUR ULTIMATE HAPPINESS: THE TWO SURPRISING FACTORS YOU NEVER KNEW EXISTED!

If I could show you a way to be much happier, incur no out-of-pocket cost, and you can start to receive benefits much faster than an Amazon Prime delivery, would you be interested?

Just practice Gratitude and The Love of Learning.

Gratitude. Being grateful takes up space in the brain that might otherwise be occupied by fear. Being fearful happens to be one of the root causes of many mistakes. Once that space is filled with gratitude, certain things begin to happen

Gratitude also leads to feelings of optimism. Optimists outperform pessimists by 31 percent. 

Gratitude leads to better thinking. 

Gratitude reduces stress. When you’re under stress, your body releases cortisol, a hormone that decreases your creativity, problem-solving capacity, and life span.

Many studies have shown people receiving pensions are much more grateful and outlive people who live off the ups and downs of their market portfolios.

Staying grateful is the best way to overcome life’s challenges.

What can you be grateful for right now? Even the simple things like your cup of tea or coffee this morning will work. Having a family member or friend or just waking up today. The list is endless, so make yourself a checklist!

Love of learning is the other key factor in personal happiness.

We’re dealing with continuous change and overwhelming information, which is not slowing down. So, when confronted with a problem, we may need to learn something new. This new situation forces some of our brain’s warning lights to go on for many of us, alerting us that we are in new territory and trying to get us back to the comfort zone that worked before.

Once you realize that your current level of knowledge is not insufficient for a solution and your mind is working against you, the Love of Learning will allow you to learn these new things by overriding the brain’s comfort zone. Instead of stressing, you can calmly approach the concern and not be deterred by the brain’s warning lights. Now it’s full steam ahead as you confidently approach the problem because you love to learn. 

For more Healthy Money Tips Listen to our PodCast “Money 911”

Subscribe to my Youtube channel youtube.com/@healthymoneyhappylife

Sign up for a Financial Fitness Strategy Session at Meet with Kris Miller – Financial Fitness Strategy Sessions

Go to my website https://healthymoneyhappylife.com/

Email me at Kris@HealthyMoneyHappyLIfe.com

Call me or text (951) 926-4158

Categories
Advice Management Strategy

UNLOCKING THE MYSTERY PART 1: THE ESSENTIAL GUIDE TO UNDERSTANDING THE VITAL TOOL ALMOST 50% OF PEOPLE OWN, YET FEW TRULY GRASP – A MUST-READ FOR HR AND BUSINESS OWNERS!

Hey, what’s almost 50? Many people own one, and everybody wants it, yet very few understand it, including HR and Business owners.

It’s the IRA and its slightly younger cousin, the 401(k).

The IRA and Section 401(k) were established as part of the Employee Retirement Income Security Act (ERISA) of 1974 to help people save for retirement. Also, part of the Act is section 404(c), which applies responsibilities to HR and employers to maintain employee education. Your account growing tax-deferred each year was a great idea; therefore, more of your money grow because less is going to the IRS. Two years later, the 401(k) was added to the tax-saving marketplace, and this new plan became the new pension for many workers.

Tax savings was welcomed back in 1971-1980; the highest marginal Federal Income Tax rate was 70%. With that in mind, everybody started pouring money into these accounts and took advantage of the tax deduction for faster growth. Another benefit we were told of was that taxes during retirement would be lower because retired people have lower incomes.

People were so stuck on tax savings and poured trillions into these accounts. Sadly, these trillions hastened the ending of many guarantees in traditional pension plans.

Several flaws have developed or worsened over the last few decades with the 401(k) and IRA, yet we were so stuck with what we were doing already that it was hard to see the truth.

Flaw #1 Believing a 401(k) plan is a pension plan.

What is a 401(k) plan? We will tell you what it is not to get to the point. Contrary to what many believe, it is not a Pension Plan-it is a Retirement savings account. And that is very different.

A pension plan guarantees that you will receive a specified sum for your and or your partner’s lifetimes, and a 401 (k) does not have that protection. If the market crashes or your investment decreases in value, there is no floor, and you’re on your own. There is no guarantee of how much income you will get or how long it will last.

To safeguard the guarantee of income for life in pension plans. The US government created an insurance company called the Pension Benefit Guarantee Corporation (PBGC). The PBGC guarantees you will get your monthly pension up to its legal limits even if the company you worked for goes belly up or the market crashes, depleting pension assets.

Was The PBGC ever used? In 2021 the PBGC paid monthly retirement benefits, up to legal limits, to nearly 1.5 million retirees in over 5,000 employer plans that ended. That’s a lot of protection you do not have with a 401(k)!

Flaw #2 Believing you will be in a lower tax bracket

That high 70% marginal tax rate that was used in marketing only affected a tiny percentage of the population, and the great majority paid much less. It is a very good possibility that taxes will rise and not be lower. I mention this because, in the long-term, the only way to deal with the National Debt, deficit, Social Security, and Medicare trust funds will be to increase tax rates. We can safely say that taxes will not be lower in the future!

Flaw #3. The New Jersey double tax.

Many people are surprised to learn that New Jersey does not allow a deduction for contributions to IRAs and 403(b) plans, even if they are deductible for federal income tax purposes. With that in mind, preserving your tax records showing your deposited amount each year is critical. Keeping old tax records is challenging enough. However, if you cannot show how much you put

  1. Then every dollar you take out will be taxed again. Wow, paying taxes again on the money you already paid taxes on. Therefore. It is critical to permanently maintain tax records to determine how much of the account has been taxed. These records are vital for our beneficiaries of your retirement accounts, who will be clobbered if unavailable.

Flaw #4 Believing your retirement savings plans can pass tax-free.

Most people realize that you can leave a large estate without having estate taxes due. However, retirement dollars like IRA, 401K, 403(b) will always be subjected to income taxes at the state and federal levels. Estates of 6.5 million and more for a couple will pass estate tax-free to beneficiaries. Income taxes will be due, and the beneficiary tax rates from the first dollar.

Flaw #5 For certain people, an additional tax is due – NJ. Inheritance taxes.

Yes, NJ has both an estate tax and an inheritance tax. New Jersey residents must be aware of the effect of the Inheritance Tax, which is applied to 100% of the balance in these accounts. Luckily, spouses, children, grandkids, and even your parents are exempted and charities.

Everyone else is like brothers, sisters, nieces, nephews, cousins, and close friends. Inheritance Tax rates range from 11% to 16%, depending on the beneficiary’s relationship with the account owner and the estate’s value. For these reasons, planning for these accounts is essential and should not be delayed.

Flaw #6 Believing the family can continue these accounts.

IRS took away a great family IRA planning tool. The/Stretch IRA, as it was referred to, allowed an IRA owner to continue payments to their children, grandkids, and even great-grandkids over their lifetimes (spouses are exempted). Sometimes, this wealth-producing engine could last 80 years after your passing. Passing wealth over many generations was what the super-wealthy were for generations.

Sadly, the IRS decided you no longer could use what the rich were doing. Even though it is your money, you are being denied the ability to continue payments for decades. They decided that the inherited IRA must have some distributions taken yearly and must be emptied entirely by the end of the ten years. Decades of deferred tax growth are lost forever. I joke; the tax rules are written in pencil – easily and frequently changed.

The Six Flaws will be addressed in a little more depth over the next few days.

 

For more Healthy Money Tips Listen to our PodCast “Money 911”

Sign up for a Financial Fitness Strategy Session at Meet with Kris Miller – Financial Fitness Strategy Sessions

Go to my website https://healthymoneyhappylife.com/

Email me at Kris@HealthyMoneyHappyLIfe.com

Call me or text (951) 926-4158

Categories
Advice Body Language Growth Management

THE ART OF CONCENTRATION: HOW TO DEEPEN YOUR FOCUS AND ACHIEVE YOUR GOALS

Low productivity is a focus problem.

If you keep feeding your distractions, you can’t make real progress. If you are trapped in a wealth of online distractions, you must start thinking about a different approach to work.

Focus, a valuable commodity for getting real work done, is increasingly becoming a lost art.

If you’re trying to be more productive, don’t analyze how you spend your time. Pay attention to what consumes your attention.

If how you work is not working, design a different system that makes progress possible every day, increasing efficiency and output.

Your present life and career total everything you’ve focused on. If you are unhappy with your productive life, change the system that drives it.

New tools and technology are meant to help us work better, faster, and more intelligently, but they often distract us.

Many productivity apps are meant to improve our lives, but they get in the way of deep and accurate work.

You can’t stop responding to those notifications. The zero-email mindset is a productivity trap that keeps you constantly responding to emails.

How can you get real work done when you can’t stop reacting to almost every notification?

“Feed a cold and starve a fever.

To gain productivity, feed your focus and starve your distractions.”

“It’s not that I’m so smart; it’s just that I stay with problems longer.” Albert Einstein once said.

Many people have a real plan to get important stuff done — they are not necessarily lazy and don’t know how to stop feeding their distractions.

Attention distraction is one of the biggest obstacles to getting real done. “Focus is the art of knowing what to ignore.

People who cultivate their ability to concentrate without distraction will thrive:

To feed your focus, start separating your urgent work from essential tasks. And most importantly, identify your distractions and how they starve your focus. Knowing your distractions can help you understand how you spend your attention.

For every focused work you want to do, identify the potential distractions, and stop them before you get in the focus zone.

Deep workers often find that notifications, no matter how important the message, takes their deep focus away from the task, and it takes twice as long to get back to focus mode again.

To produce at your peak level, you need to work for extended periods with total concentration on a single task free from distraction. 

To feed your focus, create healthy work boundaries that allow you to concentrate on essential tasks fully. Build a system that starves distractions. Create intentional constraints that will enable you to assume focus mode.

When you’re ‘on,’ be entirely on — use headphones, and when possible, hide your phone, turn it upside down, or block notifications. Block internal and external distractions.

The ability to focus for about 30/40/60 minutes is the only difference between truly productive people and those who struggle to get things done.

Measure your work and find the most suitable focused time that works for you. Your degree of focus determines how fast you make progress.

Structure your day in chunks of focused work to make in-depth work sessions work. Start your day with intention. What is the one thing you have to accomplish today? Start your focused sessions with that task.

Set up your environment to support your focus mode. And plan purposeful breaks in-between deep work sessions. (Pomodoro method)

One final insight about prioritizing involves getting disciplined about what you don’t put on the stage. This means not thinking when you don’t have to, becoming disciplined about not paying attention to non-urgent tasks unless, or until, it’s genuinely essential that you do,

Deep work is a habit and working for long stretches at a time takes time to develop. You can start today. Do more focused work daily, and it will become a habit that helps you get real work done weekly. Better routines are the personal habits of highly efficient people.

What do you do to become more productive?

 

For more Healthy Money Tips Listen to our PodCast “Money 911”

Meet with Kris Miller – Financial Fitness Strategy Sessions

https://healthymoneyhappylife.com/

Kris@HealthyMoneyHappyLIfe.com

(951) 926-4158

Categories
Best Practices Management Personal Development

Employing Your Children

As the IRS website states: “One of the advantages of operating your own business is hiring family members.” That family member can be a spouse, sibling, parent, or even a child (between the ages of 3-18). In fact, while hiring a child may not seem like a top- of-mind move for many businesses owners, if you play by the rules there can be a surprisingly broad array of tax benefits to doing so!

With the Tax Cuts and Jobs Act increasing the Standard Deduction up to $12,200.00 (in 2019), children employed in a family business can earn that much in income and enjoy a zero-tax rate on their income. In addition, many states will also permit children employed in the business to avoid unemployment (FUTA) taxes and children working for their parents’ sole proprietorship, partnership, or LLC, may also avoid employment (FICA) taxes as well , which can be a material tax savings for many families, especially those with high-income parental business owners. This allows you to reduce the amount of income you need to take home personally by $12,200.00 per child which results in paying less in personal taxes.

Furthermore, employing a child in the business also creates earned income that can qualify the child to make a Roth IRA contribution, and/or qualify the child for other employee benefits. This means that you can take $6,000.00 of the $12,200.00 and place it in a Roth IRA, which will grow completely tax free until your child is able to withdraw it at the age of 59.5 years of age. Just one of the many ways to create Generational Wealth.

With the remaining $6,200.00, it can be put into a children’s bank account with parental control and used to cover things like, Sports, Band, Dance, and other hobbies your child or children may enjoy. When you personally cover these expenses, they are not tax deductible to you as an individual. 

Although the caveat is that employing a child in the business still requires that he/she d o bona fide, age-appropriate work in the business for a “reasonable” wage. The work must also comply with the Federal Fair Labor Standards Act (FLSA) rules which fortunately are flexible for parents employing their children in their own wholly-parental-owned business and state child labor laws as well. 

Let me qualify the above. If your LLC or Corporation is taxed as a “C” Elected or “S” Elected company, you will need to withhold taxes just like any other employee. 

Let’s discuss how you can implement this in your business, contact our offices at 775-384-8124 or send an email to contact@controllersltd.com. 

Much Success, 

Scott L. Arden, CEO 

Controllers, Ltd. 

www.controllersltd.com 

Categories
Advice Capital Leadership Management Women In Business

CHAINED CPI AS AN ALTERNATIVE FORMULA TO THE CONSUMER PRICE INDEX, AND THE COST THAT COMES WITH IT

The government wants to reduce expenses by using a different CPI version of the (Consumer Price Index). Their new attempt, known as chained CPI (Consumer Price Index) (aka C-CPI-U), this alternative formula reflects how consumers change their purchasing habits when prices rise or fall for a broad range of services, including food, housing, clothing, and medical expenses. 

The Congressional Budget Office (CBO) estimated that government spending on Social Security, Medicare, and other benefits would decline by about $300 billion over ten years if this less-generous index were in place.

The idea of switching to a chained CPI has garnered bipartisan support to rein in entitlement spending. But at what cost? There will be plenty.

Many elements of the federal tax code — including tax brackets, personal exemptions, standard deductions, limits on contributions to 401(k) plans and similar accounts, and critical parameters of the earned income and child tax credits — are also adjusted annually for the CPI. According to the CBO, switching to the chained CPI would raise an additional $150 billions of tax revenue through 2026.

The chained CPI grows on average by about 0.3 percentage points per year more slowly than the official CPI (which is weak at best gauge to the actual cost of living). The Social Security actuaries, in their projections, assume the gap between the two CPIs will continue to average 0.3 percentage points per year in the future. 

The Chained CPI will chain you to a lifetime of higher taxes. According to Congress’s Joint Committee on Taxation, if individual income taxes had been indexed to the chained CPI starting July 2013, by 2022, 69 percent of the gains in revenue would come from taxpayers with incomes below $100,000, while those in the highest income brackets would barely be affected. In other words, raise the taxes on the middle class while leaving the rich alone.

Higher taxes are coming; start planning now!

For more Healthy Money Tips Listen to our PodCast “Money 911”

Sign up for a Financial Fitness Strategy Session:  Meet with Kris Miller – Financial Fitness Strategy Sessions

You can reach me at Kris@HealthyMoneyHappyLIfe.com, (951) 926-4158