I Am Experience!

Some “rich guys” just won a $250K lottery.  It’s all over the news.  So what?!   They don’t deserve it?

Is that what life is all about?  Blame the rich for your problems or do you have the guts and resilience to earn a living?  Make money, maybe lots of money.  If you have the guts, you will make mistakes.  New mistakes, mind you.  You can’t afford muck it up over and over again.

Lord knows I make mistakes!  I live for the entitlements I deserve.  To live free.  To choose to make mistakes, without the fear of reprisal.  To act upon my own convictions within the law

I managed a large sales organization for NCR Corp.  I told my salespeople, “lose more orders!”  It took a little getting used to the idea but they learned, “I am experience.”

If I could reach into my bag of mistakes and pull out just one success, I might be one of those “rich guys” or just maybe who I am.  I like to think I’m still living my life.  If you ask me who I am, I will tell you, I am experience.

How about the day ahead of me?  When will I step over the line and where will that line be drawn?  If I step over the line, I will have to choose, success or failure. There is no middle ground.  I am experience.

Mistakes are getting old, if you’re like me… old.  I grow weary of the next opportunity.  There was a time, when I was  hungry. A hunter.  I would seek opportunities to be successful.  I have since learned the definition of success.  If you make enough mistakes, opportunities seek you.  I am experience.

I have already left yesterday’s mistakes behind me.  Today’s opportunities beckon me back.  Give me a tomorrow, whatever I was doing and wherever I have been.  I can make tomorrow, a better future.  I am experience!

And if I had yesterday back, if I had spent a buck and if I had bought the winning lottery ticket, I’d have to say, I’m one of those “rich guys.”  Where’s the crime in winning the lottery?  maybe they should charge millionaires more? How about $2 a ticket?

Most rich guys are portrayed as useless money grubbers. I’d bet my bottom dollar on the rich guys, because most “rich guys” can say, I am experience.

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Roth IRA, Invest to Pay Less Taxes

by John Holland, South Shore Investment Advisors, Charleston, WV

Social Security was intended originally to be a tax free benefit for retirees in America. Over the years this has changed for the majority of us.

Income Thresholds
There are two separate income thresholds for filers that will determine whether they have to pay tax on their Social Security benefits. Here is a breakdown of the categories:

Income Percentage of Social Security Taxable
Single, Head of Household, Qualifying Widower and Married Filing Separately
(where the spouses lived apart the entire year)
Below $25,000 All SS income is tax-free
$25,000 – $34,000 Up to 50% of SS income may be taxable
$34,000 and up Up to 85% of SS may be taxable
Married Filing Jointly Below $32,000 All SS income is tax-free
$32,000 – $44,000 Up to 50% of SS income may be taxable
$44,000 and up Up to 85% of SS may be taxable

When calculating your income you must include ½ of your social security benefit and all of your interest and dividend income. This includes tax exempt interest from municipal bonds and distributions from IRA’s or 401k retirement plans.

As an example, let’s say Jim Johnson withdrew $19,500 from an IRA and had $2,000 of interest income. He received $16,000 from social security and had $1,500 of gambling winnings. ($19,500 + $2,000 + $8,000 + $1,500 = $31,000). Jim is single so his social security benefit will be 50% taxable.

You can see that if you’re married and your spouse receives social security as well as distributions from a retirement plan, your tax liability will start eating up your social security benefit pretty quickly.  If both husband and wife receive just $2,000 a month from an IRA they will easily be in the upper threshold paying taxes on 85% of their combined benefit.

There is currently a loophole that exists called the Roth IRA. If you’re over 59 ½ and your Roth has been established for at least 5 years, you can take tax free distributions from it. Under current law these distributions don’t count when calculating your social security taxability. You can take a distribution of any size from a Roth and owe zero taxes on it and zero taxes on your social security. Let’s do another example.

John Doe has a Roth IRA with a balance of $1,500,000. He’s 65 years old and the account has been established for more than five years. He starts taking a $100,000 annual distribution and he receives $24,000 each year from social security. His income tax will be zero. The Roth IRA distributions are tax free and don’t count towards his social security income threshold. John will receive $124,000 annually in retirement benefit with zero tax liability. Of course these tax laws could change in the future, but today a Roth IRA is the best retirement vehicle available.

If your single and make less than $107,000 you can make a full contribution to a Roth and if you’re married the limit is $169,000. If your annual income is higher than these limits you can still convert a traditional IRA to a Roth. Of course you have to pay taxes in the year you convert the assets and I believe you should do this while the Bush tax cuts remain intact. I believe these tax cuts will be repealed in 2013 and replaced with higher marginal rates.

If you are an equity partner in a small business, this might make even more sense if we let your company pay the taxes (as an executive bonus or alternative form of compensation) on the money you move out of our existing retirement accounts into a Roth IRA.  It can be done gradually dictated by cash flow coming from the business.  If it is done before we lose the tax breaks it could make sense.

No matter if you’re 25 years away from retirement or 5 years away you should consider a Roth IRA for at least a portion of your retirement income. The tax free benefits in retirement are too great to ignore.  

John Holland e-mail: hollandzjr@aol.com

Good advice for the younger generation, especially with all the hype over social security.  If you’re a small business owner and you’re worried about higher capital gains taxes into your retirement years, there’s some good advice for you here as well.  Subscribe – Comments welcome. Pass it on.  : http://wp.me/p1nHZg-Dr

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Find What You Love,” Steve Jobs’ at Stanford University

A young Steve Jobs

A “cat” with at least 3 lives!  What a great message for our future leaders of this great country!  Worth the time to read and let this message sink in!  A great commencement address by Steve Jobs!

Steve Jobs, who stepped down as CEO of Apple Wednesday after having been on medical leave, reflected on his life,
career and mortality in a (YouTube video) well-known commencement address at Stanford University in 2005.

Here, read the text of of that address:

I am honored to be with you today at your commencement from one of the finest universities in the world. I never graduated from college. Truth be told, this is the closest I’ve ever gotten to a college graduation. Today I want to tell you three stories from my life.  That’s it. No big deal. Just three stories.

The first story is about connecting the dots.

I dropped out of Reed College after the first 6 months, but then stayed around as a drop-in for another 18 months or so before I really quit. So why did I drop out?

It started before I was born. My biological mother was a young, unwed college graduate student, and she decided to put me up for adoption. She felt very strongly that I should be adopted by college graduates, so everything was all set for me to be adopted at birth by a lawyer and his wife. Except that when I popped out they decided at the last minute that they really wanted a girl. So my parents, who were on a waiting list, got a call in the middle of the night asking: “We have an nuexpected baby boy; do you want him?” They said: “Of course.” My biological mother later found out that my mother had never graduated from college and that my father had never graduated from high school. She refused to sign the final adoption papers. She only relented a few months later when my parents promised that I would someday go to college.

Journal Community

And 17 years later I did go to college. But I naively chose a college that was almost as expensive as Stanford, and all of my working-class parents’ savings were being spent on my college tuition. After six months, I couldn’t see the value in it. I had no idea what I wanted to do with my life and no idea how college was going to help me figure it out. And here I was spending all of the money my parents had saved their entire life. So I decided to drop out and trust that it would all work out OK. It was pretty scary at the time, but looking back it was one of the best decisions I ever made. The minute I dropped out I could stop taking the required classes that didn’t interest me, and begin dropping in on the ones that looked interesting.

It wasn’t all romantic. I didn’t have a dorm room, so I slept on the floor in friends’ rooms, I returned coke bottles for the 5¢ deposits to buy food with, and I would walk the 7 miles across town every Sunday night to get one good meal a week at the Hare Krishna temple. I loved it. And much of what I stumbled into by following my curiosity and intuition turned out to be priceless later on. Let me give you one example:

Reed College at that time offered perhaps the best calligraphy instruction in the country. Throughout the campus every poster, every label on every drawer, was beautifully hand calligraphed.  Because I had dropped out and didn’t have to take the normal classes, I decided to take a calligraphy class to learn how to do this. I learned about serif and san serif typefaces, about varying the amount of space between different letter combinations, about what makes great typography great. It was beautiful, historical, artistically subtle in a way that science can’t capture, and I found it fascinating.

None of this had even a hope of any practical application in my life. But ten years later, when we were designing the first Macintosh computer, it all came back to me. And we designed it all into the Mac. It was the first computer with beautiful typography. If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts. And since Windows just copied the Mac, it’s likely that no personal computer would have them. If I had never dropped out, I would have never dropped in on this calligraphy class, and personal computers might not have the wonderful typography that they do. Of course it was impossible to connect the dots looking forward when I was in college. But it was very, very clear looking  backwards ten years later.

Again, you can’t connect the dots looking forward; you can only connect them looking backwards.

So you have to trust that the dots will somehow connect in your future. You have to trust in something — your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.

My second story is about love and loss.

I was lucky — I found what I loved to do early in life. Woz and I started Apple in my parents garage when I was 20. We worked hard, and in 10 years Apple had grown from just the two of us in a garage into a $2 billion company with over 4000 employees. We had just released our finest creation — the Macintosh — a year earlier, and I had just turned 30. And then I got fired. How can you get fired from a company you started?  Well, as Apple grew we hired someone who I thought was very talented to run the company with me, and for the first year or so things went well. But then our visions of the future began to diverge and eventually we had a falling out. When we did, our Board of Directors sided with him. So at 30 I was out.  And very publicly out. What had been the focus of my entire adult life was gone, and it was devastating.

I really didn’t know what to do for a few months. I felt that I had let the previous generation of entrepreneurs down – that I had dropped the baton as it was being passed to me. I met with David Packard and Bob Noyce and tried to apologize for screwing up so badly. I was a very public failure, and I even thought about running away from the valley. But something slowly began to dawn on me — I still loved what I did. The turn of events at Apple had not changed that one bit. I had been rejected, but I was still in love. And so I decided to start over.

I didn’t see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me.

The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life.

During the next five years, I started a company named NeXT, another company named Pixar, and fell in love with an amazing woman who would become my wife. Pixar went on to create the worlds first computer animated feature film, Toy Story, and is now the most successful animation studio in the world. In a remarkable turn of events, Apple bought NeXT, I returned to Apple, and the technology we developed at NeXT is at the heart of Apple’s current renaissance. And Laurene and I have a wonderful family together.

I’m pretty sure none of this would have happened if I hadn’t been fired from Apple. It was awful tasting medicine, but I guess the patient needed it. Sometimes life hits you in the head with a brick. Don’t lose faith. I’m convinced that the only thing that kept me going was that I loved what I did. You’ve got to find what you love. And that is as true for your work as it is for your lovers. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle. As with all matters of the heart, you’ll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don’t settle.

My third story is about death.

When I was 17, I read a quote that went something like: “If you live each day as if it was your last, someday you’ll most certainly be right.” It made an impression on me, and since then, for the past 33 years, I have looked in the mirror every morning and asked myself: “If today were the last day of my life, would I want to do what I am about to do today?” And whenever the answer has been “No” for too many days in a row, I know I need to change something.

Remembering that I’ll be dead soon is the most important tool I’ve ever encountered to help me make the big choices in life.

Because almost everything — all external expectations, all pride, all fear of embarrassment or failure – these things just fall away in the face of death, leaving only what is truly important.  Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.

About a year ago I was diagnosed with cancer. I had a scan at 7:30 in the morning, and it clearly showed a tumor on my pancreas. I didn’t even know what a pancreas was. The doctors told me this was almost certainly a type of cancer that is incurable, and that I should expect to live no longer than three to six months. My doctor advised me to go home and get my affairs in order, which is doctor’s code for prepare to die. It means to try to tell your kids everything you thought you’d have the next 10 years to tell them in just a few months. It means to make sure everything is buttoned up so that it will be as easy as possible for your family. It means to say your goodbyes.

I lived with that diagnosis all day.  Later that evening I had a biopsy, where they stuck an endoscope down my throat, through my stomach and into my intestines, put a needle into my pancreas and got a few cells from the tumor. I was sedated, but my wife, who was there, told me that when they viewed the cells under a microscope the doctors started crying because it turned out to be a very rare form of pancreatic cancer that is curable with surgery. I had the surgery and I’m fine now.

This was the closest I’ve been to facing death, and I hope it’s the closest I get for a few more decades. Having lived through it, I can now say this to you with a bit more certainty than when death was a useful but purely intellectual concept:

No one wants to die. Even people who want to go to heaven don’t want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because Death is very likely the single best invention of Life.  It is Life’s change agent. It clears out the old to make way for the new. Right now the new is you, but someday not too long from now, you will gradually become the old and be cleared away. Sorry to be so dramatic, but it is quite true.

Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma — which is living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.

When I was young, there was an amazing publication called The Whole Earth Catalog, which was one of the bibles of my generation. It was created by a fellow named Stewart Brand not far from here in Menlo Park, and he brought it to life with his poetic touch. This was in the late 1960’s, before personal computers and desktop publishing, so it was all made with typewriters, scissors, and Polaroid cameras. It was sort of like Google in paperback form, 35 years before Google came along: it was idealistic, and overflowing with neat tools and great notions.

Stewart and his team put out several issues of The Whole Earth Catalog, and then when it had run its course, they put out a final issue. It was the mid-1970s, and I was your age. On the back cover of their final issue was a photograph of an early morning country road, the kind you might find yourself hitchhiking on if you were so adventurous.  Beneath it were the words: “Stay Hungry. Stay Foolish.” It was their farewell message as they signed off. Stay Hungry. Stay Foolish. And I have always wished that for myself. And now, as you graduate to begin anew, I wish that for you.

Stay Hungry. Stay Foolish.

Thank you all very much.

Like Fine Wine…

Silver Oaks Vineyard

The unemployment jobless rate has jumped for those over 55 from 3.2% to 6.8% since the 2007 recession began.

This is an opportunity for small businesses looking to reduce the risks normally associated with hiring.

As an employer, you might consider “like fine wine, the over 55 candidates should be getting better with age.”

Rule Number One: “Ready to drink.”  Most wines available today are ready to drink (0ver 90%).  If the price is right drink it now.

Heard recently from someone over 55, unemployed, highly qualified and experienced in their line of work.  Someone whom I hold in high regard,

“I feel like I’m letting my wife, my kids and my grandkids down.”

This alarming revelation from someone heretofore has exuded confidence, success in; and dedication to; his family and his career like none other.

Over 55 and unemployed, most workers are eager to reenter the workforce.

Rule Number Two: “Taste it.”  There are many experts out there that will tell you what wine to drink and when.  My local wine shop agrees to a point but is adamant about one thing, “it comes down to you and your own personal tastes and preferences.”  The expression, “look good on paper (label)” is a common misnomer.

If you are hiring and you are a “seasoned professional” yourself, you don’t have to look over your shoulder twice to find someone with whom you can relate in the over 55 crowd.  Put these new hires through a probationary period.  They will understand they need to “earn their stripes.”

Rule Number Three: “Preservation of a good wine requires proper resources and planning.”  If you can’t afford to wait and don’t have the proper means to store your wine, drink it now.

In business, when hiring I like to use the expression “hit the deck running.” If you can’t afford to mentor, shadow, train or hire an apprentice or wait for a new hire to become productive, generate revenues, replace intellectual property, hire experience.

Rule Number Four: Price doesn’t dictate taste or value: There are winemakers out there ranging from Cameron Hughes (CH) to garage winemakers who produce excellent wine at excellent values. Famous high end growers in Napa, Sonoma and other areas sell their surplus to winemakers like CH who produce great wines at great values.

Look for experience first. College degrees, certifications, etc… is no substitute for the real deal. Many of the over 55 crowd have been “through the war.” “The proof of the wine is in the tasting.”

Some great reference sites:

http://www.staythirstymedia.com/201107-059/html/201107-sipprelle-washington.html

http://www.staythirstymedia.com/201107-059/html/201107-cavaliere-starting-over.html

http://politicalcalculations.blogspot.com/2010/08/teens-vs-geezers-in-us-job-market.html

Paint yourself with abandon!

Like an artist’s stroke of the brush, you are a Rembrandt or a Van Gogh.

You will never be a copy. You will never be a failure. You will always be a work of art, an interpretation.

How many times in your life have you said to yourself and nobody else, “I can’t do this anymore?”  If you’re still breathing you have asked yourself the question many times.

How many times have you “answered the bell” sucked it up and did what you thought you couldn’t do?

The answer defines you.

It matters little if you can’t do something you are physically incapable, totally unprepared, poorly trained or simply uneducated to do.  What matters is when there is that defining moment.  You can do it.  You’re in the moment.  You have summoned all your strength, including mind and spirit.  And you succeed.  That’s what defines you.

Some might view you as a success.  Others may view you as a failure. What’s vital is how you view yourself?  You will never be a copy. You will never be a failure. You will always be an interpretation.  You decide.

To illustrate I have included a poem I wrote for my dad who has recently passed away, a victim of Alzheimer’s.

 
If I Was An Artist
Father, patriarch, dad
And if I could paint
Mature, senior citizen , old man,
I would paint the portrait of a man
Provider, benefactor, success
Each word to describe him
Contrary, obstinate, cussed
Would be a different stroke from my brush
Non-conformist, contestant, maverick
Each phrase a different shade
Creative, inventive, colorful
From the palette of his life.
Environmentalist, naturalist, crusader
I would present him his portrait
Integrity, honesty, candid
With pride, his life a work of art.

You too are an artist. Paint yourself with abandon!

Rejection wasn’t my strong suit!

The difference between Fred and myself?
Fred knew when he was lying.

My first job out of college was to work for ACME Forms.  My Dad owned ACME. Dad was the only full-time employee.   Business was good.

I joined my Dad as a sales rep in 1974. We were a force of two.  My Mom was the part time administrative support person and the mother of six.   I was the future.   It was a shaky start.  My job was to get new business.  I used the phone to solicit appointments.  I can remember my voice quaked and my message was ill-prepared.  After exhausting all legitimate leads I was proffered, by phone, I hit the road.

My first cold call, “cold “ being the vernacular used for an unsolicited visit on an unsuspecting business to make a sales pitch.  I was a major contributors as to why there are so many “No Solicitors” sign on doors.

Like the polyester plaid I was wearing, rejection isn’t my strong suit.  I have to admit there were days I could not face the day ahead without becoming physically ill, cramps and vomiting, anticipating the rejection that inevitably lay ahead.

For better or worse, most of the businesses I “solicited” on the south side of Chicago, were unaccustomed to a 21 year old young man in polyester and a “pleather” briefcase showing up at their door.  My first “sales call” and I use the term loosely, required considerable surveillance.  I drove around the block several times. In the end, it was a relief to just to be dismissed.  To hear a simple “no thanks” was a victory, of sort.  I had broken the sound barrier.  I had made contact with the other side.  Soon, I was making 20 cold calls in a day.

Thankfully gas was 30 cents a gallon!  My father would get a call from someone I had visited and he would say, “Yes, that’s my son, he’s like manure, he’s spread all over the place.”  The message was loud and clear, I needed to take the next step, get to the next level.

Speaking of manure, here’s a great joke from Ronald Reagan, only takes a minute, during one of his speeches.  Precious really.  Good clean fun!

I needed to convince my prospects I wasn’t just another pretty face in plaid polyester.  My contacts were bewildered, annoyed, amused, indifferent or thankfully, on rare occasion, sympathetic to my pitch.  It’s simply amazing.  I became accustomed to the word“no”.   I managed to solicit a cadre of variations   theme to the extent I began to expect and anticipate the response.  I learned to take a “no” and solicit another.  As my skin thickened and the manure piled higher, I was able to garner a “maybe” here and there and occasionally a yes!  It was the “ying and the yang” thing, “Yes means No” to the extent a Tibetan monk would have been proud.

Later, as a regional director at a large corp. at the sage age of 28 years, where I managed more than 70 neophyte sales reps in 10 states, I became well known for the expression, “lose more orders”.  My mantra was the more orders you lose, the more opportunities you have to win.  Spread that manure!  Well not exactly…

Anyway, my dad fired me.  he put me out of my misery!  His too.  He said I needed more experience.  He was right.  I was keeping him too busy  spinning his wheels.  At the time, I was devastated.  I finished the blueberry pancakes my Mom had made me.  I left town to seek employment.  I stayed with the in-laws while looking for work.

I painted their house for $70 bucks, but I painted their windows shut, so we were even.  I found a job right before I was evicted.  But there’s more to the story…

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Ka-Ching! Well not so much, but every little bit helps…

One less Reg to deal with.

July 21, 2011 is the date you can negotiate an interest rate on your business checking account based on the Dodd-Frank Act.

A lot of things in the Act address consumer protection but interest on business checking is a plus for us and becomes effective on July 21st.   Treasury Secretary Geithner established the date, so it is highly unlikely that date will be extended.

At one-half of one percent business money market accounts are an unattractive option for businesses.  Couple that with minimum balances and fees they’re simply a nuisance.

Regulation Q goes away and banks can begin paying interest on transaction accounts, principally accounts of corporations, partnerships and other juridical entities. Regulation Q has prohibited banks from paying interest on demand deposits. Don’t ask me why.  Government regulations repeatedly defy logic.   The zero-rate on demand deposits encouraged the emergence of money market funds and other competitive investment vehicles outside of banking.  This could eliminate money market funds and simplify the means in which small businesses manage their cash accounts as we are always juggling funds between accounts, playing the money dance.

Because these are commercial accounts there are no disclosure requirements and banks periodic statements do not have to have the disclosures required by Regulation E and Regulation DD for interest paying accounts.  You should probably contact your bank on July 21 to see what interest rate you will be paying them and how that compares to the bank down the street or online for that matter.

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