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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 Strategy Women In Business

SEEING THE BIG PICTURE: HOW CAN YOU SEPARATE THE BIASES FROM REALITY WHEN CONSIDERING RETIREMENT PLANNING?

The majority of people think they’re better-than-average drivers, and mathematically, not everyone can be above average. Being optimistic is excellent, and too much may impair your judgment on many things, especially when planning for your financial future.

Being optimistic is valuable as we live our life. Frequently, overconfidence bias leads quickly to confirmation bias, and both of these biases are problematic, especially when combined.   However, sometimes our abilities begin to skew toward unrealistic, which can impair decision-making behavior.

Either alone or combined, these biases are often linked to us believing we can avoid negative things from happening to us. When it comes to retirement planning decisions, you need to separate your biases from reality; this can present a challenge.

Overconfidence in your retirement planning may cause you to overlook potential risks, underestimate the time spent in retirement, and misjudge how long your income will last. Seeing the bigger picture through another set of impartial eyes is crucial and will help you sidestep the influence of biases. Finding ways to work around these biases will allow you to see the value of long-term planning. 

Let’s be realistic about the financial future:

Over 50% of retirees retired before they planned; the most common reason was health problems. Illness can occur at any time and may lengthen your retirement requiring savings to stretch farther than planned. 

50% of retirees said their health care costs were higher than expected. 

Almost 40% said all other expenses were more than they thought. 

It’s essential to understand no one can avoid retirement risks; however, careful planning can help mitigate them.

While overconfidence can undermine the success of a long-term financial plan, clients who are secure in their decisions will likely be satisfied customers. It would be best if you found a balance between an optimistic yet realistic approach to planning.

 

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

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Growth Leadership Negotiations Networking Personal Development Skills Strategy

The Art of Networking – Bedros Keuilian’s Masterclass Video

Long John Silver’s is the #1 fast food seafood restaurant in the United States.

But, they’ve been struggling for decades. Long John Silver’s has lost over half their franchises since their peak.  Here’s why…

The Real Reason Long John Silver’s is Struggling:

The original premise for the chain sounded good, at least on paper. During a family, vacation, businessman and restaurateur, Jim Patterson had a flash of inspiration:

Bring the sunny seaside fish and chips eating beach experience from the coast, to families nationwide.

When the chain first started, Long John Silver’s made an effort to impart each location with a seafaring theme reminiscent of the company’s vacation-inspired roots.

The company’s heyday was a ten-year period from about 1979 to 1989, during which it grew from a footprint of one thousand units to an all-time high of 1,500 locations.

Watch the full story on this episode of Company Man.

WATCH:

 

Then a String of Devastating Decline in Market share…

The chain has been on a decline since at least 1989 when, in response to mounting debt, it first took its business private. In the three decades since, it’s been handed off from one unhappy owner to another.

They’ve also been plagued with bad marketing (often self-inflicted).

For example, in 2017 they’re marketing team posted a video of a hostage being beheaded with a swordfish in an attempt to “go viral”…

They were forced to issue an apology:

Graphical user interface, text, application Description automatically generated

On top of some marketing flops, probably the biggest failure is their lack of vision against the original mission to bring people into a coastal dinner experience.

 
Long John Silver's

You know that feeling you get when you have a craving for fried cod, but you also  want a root beer float and a chili dog? Apparently, not too many other could relate either…

In addition to loosing half their franchises since their height, they lost 300 locations over the last 5 years alone and another 60 during the 2020 COVID lockdowns.

While millions of Americans enjoy the convenience of fast food, it appears for Long John Silver’s target audience, they preferred the original quality experience and cheap burgers over fish sandwiches.

Categories
Biography and History Branding Case Studies Marketing Operations Strategy

WATCH: The Real Reason the Long John Silver’s Business is Sinking…

Long John Silver’s is the #1 fast food seafood restaurant in the United States.

But, they’ve been struggling for decades. Long John Silver’s has lost over half their franchises since their peak.  Here’s why…

 

 

 

The Real Reason Long John Silver’s is Struggling:

The original premise for the chain sounded good, at least on paper. During a family, vacation, businessman and restaurateur, Jim Patterson had a flash of inspiration:

Bring the sunny seaside fish and chips eating beach experience from the coast, to families nationwide.

When the chain first started, Long John Silver’s made an effort to impart each location with a seafaring theme reminiscent of the company’s vacation-inspired roots.

The company’s heyday was a ten-year period from about 1979 to 1989, during which it grew from a footprint of one thousand units to an all-time high of 1,500 locations.

Watch the full story on this episode of Company Man.

 

WATCH:

 

Then a String of Devastating Decline in Market share…

The chain has been on a decline since at least 1989 when, in response to mounting debt, it first took its business private. In the three decades since, it’s been handed off from one unhappy owner to another.

They’ve also been plagued with bad marketing (often self-inflicted).

For example, in 2017 they’re marketing team posted a video of a hostage being beheaded with a swordfish in an attempt to “go viral”…

 

 

They were forced to issue an apology:

Graphical user interface, text, application Description automatically generated

On top of some marketing flops, probably the biggest failure is their lack of vision against the original mission to bring people into a coastal dinner experience.

 

Long John Silver's

You know that feeling you get when you have a craving for fried cod, but you also  want a root beer float and a chili dog? Apparently, not too many other could relate either…

In addition to loosing half their franchises since their height, they lost 300 locations over the last 5 years alone and another 60 during the 2020 COVID lockdowns.

While millions of Americans enjoy the convenience of fast food, it appears for Long John Silver’s target audience, they preferred the original quality experience and cheap burgers over fish sandwiches.

Categories
Marketing Personal Development Strategy Technology

Why We’re All Media Brands Now

In 2006, Wired Magazine sold to Condé Nast for $25 million.

Later that year, one of the original founders of the magazine, John Battel, was recognized as being one of the first media executives to point out a simple fact – That for the first time in history, there’s absolutely nothing stopping companies from being media brands to attract the audiences we all need.

We all have access to the same tools and platforms.

The New Barrier to Entry For Every Business Moving Forward

When consumers can choose from limitless amounts of content, on their own terms and on their own devices, the battle for their attention has now become the barrier to entry for any business competing online for the same audience.

Companies have recognized these developments overtime and are reaching towards the same conclusion:

We are all now in the media business…

 

 

Remember the Yellow Pages?

Before the internet, brands had to rent consumer attention by interrupting someone else’s audience.

Today, brands are focusing on creating content to attract the audiences they want. We’re now behaving a lot more like media companies.

Overtime brands have been gradually moving away from interruptive advertising to creating a digital network of potential buyers.

Building an audience for your business starts with creating content they actually want to consume.

Why We’re All Media Brands Now

On average, US adults are now spending more than 11 hours a day (which is two-thirds of their waking time) consuming media in some form or fashion. Pretty crazy right?

Think about it, if you weren’t reading this right now, you’d be consuming information somewhere else.

The brands who are succeeding now are the one’s creating content to

dominate their industry category.

 

Ready or not, we’re all in the media business (we just happen to be selling products and services).

Digital media is changing the world. We can either watch it happen or use it to become the biggest digital brands in our industries. Just as it was in broadcasting.

Welcome to the media business.

 

Take Action!

Want to learn the strategy to operate as a media company? We created a comprehensive overview, where I can teach you how to operate your business as a media brand in 32 pages.

Download a copy HERE  <– Download

Categories
Biography and History Economics Entrepreneurship Industries Mergers & Acquisition Personal Development Strategy Taxes Technology Wealth

Vusi Thembekwayo Describes the 3 Types of Businesses

How well, do you really know the market you serve? It sounds like one of those dumb, cryptic, things marketing people like to ask.

But according to Vusi Thembwayo, most companies don’t really know who they’re actually competing against. Or who we should be.

Who is Vusi Thembekwayo?

In short, Vusi is widely regarded as one of the most disruptive and influential forces in venture capital in Africa.

He was amongst the youngest directors of a publicly listed company in South Africa and now serves on several corporate boards.

Currently, he’s the CEO of a boutique investment & advisory firm in Africa. Leading by example, his firm forces medium, large and listed businesses into much needed, often painful, always lucrative new directions.

Having graced the covers on Entrepreneur Magazine, Forbes and Inc500, his social media engagement often mirrors that of a Rockstar dressed in a $3K suite.

Professional accomplishments aside, he’s also more informally known as Aftrica’s biggest champion for spreading entrepreneurship on the continent.

He Hosts a Popular MasterClass on YouTube

Vusi has become famous to entrepreneurs around the world because he hosts an insanely valuable Masterclass. They tackle the hardest challenges facing entrepreneurs today. For free. 

He broadcasts the videos to YouTube to allow anyone interested in honest feedback on how to grow a business.

The most common comments on his channel are: “I actually can’t believe this content is free.”

You can follow him on YouTube here.

Media personality Vusi Thembekwayo.

This Will Change How You View Your Industry

During on of his Mastermind events, Vusi shared that most entrepreneurs compete at an entry level way. Because we assume that our market, is the literal niche marketplace we’re currently selling to.

There is however, another way of looking at your business to scale better, and faster. 

To understand what level this is, and how to get there, one needs to understand the value chain of their industry.

WATCH:

For a full explanation you can watch this lesson from Vusi himself in his MasterClass. Just skip to minute 5:06 to get to the good stuff.

Meet the 3 Different Types of Business Owners

The biggest lesson to learn from Vusi is how to move up the value chain to “own” more of the supply chain and not just compete inside of it.

Vusi explains there are 3 types of business owners, and most of us are trained to think like 1st and 2nd time business owners.

The First-Time Business Owner

The first-time business owner focuses all of their efforts on improving and perfecting the product. But what the first time business owner doesn’t know is that the product worth nothing if you can’t actually sell it in mass.

Second-Time Owner

The second-time business owner having already experience this focuses instead on marketing and distribution, dramatically increasing their chances of success and survival.

Create Wealth By Owning the Value Chain!

But what the second-time business owner still doesn’t know, is that even if they got really good at distribution, they still work the third-time business owner.

The Third-Time Owner

The third-time business owner doesn’t focus on product or distribution. They move even farther upstream and provide a majority of all of the core goods and services the first 2 business owners needs to be operational.

Overtime by owing part of in the supply chain the third-time business owner can afford to buy business owner 1 and 2 (and all of their competitors).

This will show you why the biggest brands in the world, don’t have to do ANY marketing.

This Might Actually Blow Your Mind!

Oxfam created a pretty shocking infographic on the consolidation of the food industry industry a few years go.

In it you can get a sense for how massive the scale of production is to be a controller of the inputs to the products that are sold at mass. If you can afford it, it’s far more lucrative to sell core goods to the market than compete as a brand inside of it.

These 10 Companies Alone Make All the Food We Buy


Holy Nestle That’s a Lot of Cash

Nestle, the quant little Swiss multinational food and drink conglomerate is now the largest food company in the world pulling in an annual revenue of around $91.4 billion.

How did they afford to buy all these brands? The built the largest dairy company in the world and bought them.
Nestle company

Meet the Brands that Generate $64.66 billion for PEPSICO 

PEPSICO was founded in 1965 when Pepsi CEO Don Kendall, and Frito-Lay CEO Herom Lay, sketched the deal on the back of a napkin to agree to combine companies in order to take get take over the growing larger snack industry.

PepsiCo's billion dollar brands

They unlocked a new brand new market long before Blue Ocean Strategy became a thing.

Pepsi-Cola CEO Don Kendall and Frito-Lay CEO Herman Lay sketch out a deal to birth PepsiCo

Unilever’s Little $51 Billion Empire

Unilever started in on September 2, 1929 wither the merger of the Dutch margarine producer (Margarine Unie) and a British soap maker (Lever Brothers). Rub the names together and you get Unilever.

Joining forces they were able to increasingly diversified and supply a bigger market.

6: Unilever Multi-brand Strategy

Conclusion

Know all the players in your business. This means you should understand the whole process, or the entire value chain.

For long-term planning, how can you partner with acquire a new business to put you into a much larger marketplace?

Visit your venders and get to know their business. This is a sign of a seasoned entrepreneur – they build great networks.

 

 

 

Categories
Marketing Networking Personal Development Strategy

The Rise of Thought Leaders

Business is booming! The knowledge-based service industry is now a $355 million dollar per day business. $129 billion billed annually to subject matter experts, trainers, consultants, authors, coaches, speakers, masterminds, webinars, e-courses and more.

The good news is the demand for information and thought leaders is at an all-time high. The bad news? So is the increasing supply and it’s becoming difficult to stand out from the crowded room of other experts.

There’s a growing rate of increase in competition for subject matter experts.

Seriously, subject matter experts are everywhere. Based on a simple search on LinkedIn based on titles, there are:

  • 12 million authors
  • 6 million Experts
  • 550,000 Consultants
  • 300,000 Coaches
  • 300,000 Trainers
  • 40,000 Speakers

That’s a lot of competition!

Just think, if you started a retail business you would have just a handful of competitors in your space. In the knowledge field, it’s fair to say that competition is high.
But where are they all coming from? Why are there so many experts right now?

The rise of professional services & knowledge delivery:

Ever since the 1970s, the American economy moved from a manufacturing to a service-based economy. Today the service business in the US represents 80% of the US private-sector GDP at $10 Trillion annually. The professional service sector consists of agencies, consultants, and specialists championed by individual industry experts.

As the service businesses emerged the brand promise transferred from product quality to specialized knowledge expertise and skill. This led to the rise of individuals as brands.

The Brand Called You! You Can’t Move Up if You Don’t Stand Out!

In 1997, Fast Company recognized the necessity for individuals to develop individual personal brands to compete in the cut-throat digital economy. The key to getting ahead in the services market is directly linked to establishing your personal equivalent of the Nike swoosh. “It’s that simple, that hard, and that inescapable.” At least that’s how Tom Peters put it in this classic branding piece.

Fast forward to today. Because anyone can be positioned as an expert. Everyone is.