Vision

Many define vision as the ability to see something to come. In business, that definition in my opinion is very limited.

To me, vision as related to business, has a two dimensional definition: (1)the ability to look in the intangible and see something tangible; while (2) having the ability to either position oneself in a variable manner to take advantage of it or be cushioned from it.

What good is it to know what's coming without positioning yourself in a manner to be protected or to benefit from it? In business we must have this ability or bring someone on board who has this ability. You could be in an industry that is on the brink of drying up! A new invention, fraud, a new law or regulation can greatly impact any industry.

What would you do if the industry where the majority of your income comes from dried up today?

Most people unfortunately can't answer that question. Take some time to think about this.

Hypnotized

Have you watched the news lately? If not, let me inform you of a current issue the news is reporting. The US economy is in the midst of a recovery and the recession is over.

Can someone explain this to me? How is that possible? On what basis is this being substantiated?

National unemployment is at a high. This is the highest rate it has been in quite a while. Housing still has yet to hit its bottom. Every time the government stops the mouth to mouth resuscitation, the economy begins to “flat line” again. True economic recovery manifests itself in several ways, not simply by the Dow Jones Index rising. Some of the components of true economic recovery are listed below:

New job creation – people go back to work and earn income which they slowly begin to spend thus beginning to turn the economy.

House prices hit bottom and then stabilize – Most US markets have not witnessed a bottom point in housing. There is still some type of invisible inflationary component attempting to maintain housing prices. We currently observe this is New York City.

New home purchases – new homes are purchased not due to government incentives but because people are back to work.

Small business lending – banks would embark on giving small businesses loans again, in an attempt to sure-up the back bone of the American economy.

Retail sales would increase – keep an eye on the big retailers around the holiday season. When things are well people shop. However, when things appear not to be well the public becomes frugal.

Although these things are not currently being experienced it does not mean that you should pull back from your financial plans. It simply means that you should be aware of what economic season you are in. Wearing summer clothes outside in the winter is not customary, but that wouldn’t negate you from going outside.
Be careful of what you accept as truth. Just because it was reported on the news or even in this blog doesn’t mean it is true. Explore topics and learn the truth for yourself, don’t be hypnotized.

DNA of the Rich

A recent article in Forbes entitled, “A Recipe For Riches” spoke of similarities of those on the Forbes 400 list. Forbes findings were that the following attributes were the most common amongst most of the list: (1) many of their parents had a high aptitude for number crunching, (2) many were born in the fall season, (3) many of the self made billionaires never started or finished college, (4) some on the Forbes 400 list have graduate degrees from the top three graduate schools and finally (5) many have worked for Goldman Sachs or one of its subsidiaries.

Sometimes we can look at something like this and believe that we don’t fit this criterion and can never be rich. Although the Forbes article is not stating this, it is easy for one to interpret it like this. We should interpret this by realizing that there are things about ourselves that we must improve in order to position ourselves for wealth. The recipe for wealth creation is 45% the ability to retain wealth, 35% the ability to generate revenue and 20% of the intangibles. The ability to retain wealth has to do with improvement.

The challenge for the next ten days is to identify everything that you want to change about yourself. Make a list. This could be weight loss, economic status, relationships, etc. Once identified, now it is time to select two of the items on your list. Create a plan detailing how you are going to improve these two items. Constant improvement is the key to wealth creation. Whatever we weren’t born with we can improve on, wealth is not innate.

If you need assistance with identifying what you should improve about yourself - here is a free tip – ask three or four close people to you what these areas are.

The Door

You might have noticed this, when you walk into a room in your home or your office, the door is not as large as the room. This sounds silly but this will progress somewhere shortly. When you are in the room, the door itself is not significant, is it? Of course not, the door is only essential when you are on the outside of the room.

What if I told you that in business that there is a particular door that each of us has overlooked or disregarded at one time or another? The door to wealth for many middle class people is network marketing. That’s right I said it, network marketing. How is that the case and why should I get involved?

Network marketing has received a bad reputation over the years due to a few unscrupulous people pushing an unscrupulous agenda that only benefits them. The industry has also received a poor reputation because many people are not teachable. This is not an article to explain the “how-to’s” of network marketing but it will explain why.

The benefits of network marketing are endless. First, there is usually a small start up fee which is not a strain to most people. Second, there is always training in the local market during the evening which makes it easy to learn and expand your business. Third, many network marketing team have additional training via conference call in the evening as well. Fourth, marketing materials and tools have already been professionally produced for your benefit. This shortens the learning curb about the product. Fifth, the infrastructure for your success is also in place already – you don’t have to recreate the wheel. Sixth, you can operate YOUR business on a part time basis without troubling your lifestyle much. Seventh, the rate of return on your investment is limitless. Eighth, YOUR business comes with a pre-installed support staff – there are those around you who want to see you do well. Ninth, you are continually around an atmosphere that breeds success. Tenth, and my favorite and key to this article, you can use the profit you produce from this business to invest in other vehicles that will produce money for you.

Opportunity

The Merriam Webster’s Dictionary defines the term opportunity as a favorable juncture of circumstances and a good chance for advancement or progress. Life is full of opportunities, of which some people take advantage of them while others let opportunity pass by.

What makes a person allow opportunity to pass them by while others take advantage of it? I believe there are at least four elements that play a part in being able to take advantage of an opportunity.

The first element is mindset. We must be prepared mentally to recognize an opportunity.

The second element is location. We must be in the right place to be introduced to the opportunity.

The third element is association. Soil is the most conducive place for a plant to grow. In like manner, our associations are potential breeding grounds for introduction to an opportunity.

The fourth element is equity. Almost every business opportunity I have ever seen required some sort of equity – cash, skill or some other asset. We must be in a position to have some available funds or access to an asset that can be leveraged.

The fifth element is vision. Where do you see this opportunity taking you? What can you imagine? Whatever that is, then that is achievable.

Remember every challenge presented in life offers an opportunity. We must be prepared to identify the opportunity and take advantage of it.

The Enemies of Your Wealth

In life there are always opposition, in like manner while you and I are building wealth, we face oppositions called, “The Six Enemies.”

The first enemy is bad relationships. These relationships rob us of our time and precious energy. In some cases many are robbed of more than that. My advice is to select your relationships wisely. Spend less time with people who have a different mindset than you. They will only deplete your strength.

The second enemy is bad health. I am a fan of Jim Kramer. The following is an excerpt from a blog he recently posted. He states “One illness, a couple of hospital visits – they can destroy the capital you have.” This is very true. Let’s stay as healthy as we possibly can.

The third enemy is poor information. We must do our due diligence when it comes to building wealth. Check the opportunity, the investment, the asset meticulously – whatever it is. We want to ensure that the vehicles we select to drive our wealth building are conducive to the current financial environment. I am not saying to become overly anxious, simply explore your options.

The fourth enemy is lack of personal development. Everyday there must be time set aside to engage in personal development. Read a book or listen to a CD. This allows for the mind to focus on success or sets the atmosphere for success. If we don’t do this the negativity of the world around us will interrupt success every time. Personal development also defeats the fear factor in our lives.

The fifth enemy is the lack of a guide or coach. We all need someone to assist us navigate the mountain of success. I suggest that you select a coach or a guide. Yes you may have heard stories where some have found success on their own. Far more however used a coach or a guide or a team to experience success.

If you are seeking a success coach or guide send an email to info@frederickotowles.com for assistance.

Positioned to Overcome

We now have access to the best financial information via the Internet. No longer are we subjected only to financial advisers who urge us to invest in items that will give us minimal gains at best. In turn, the commission received for misleading us takes care of their personal monthly financial obligations. However, sometimes there is so much information to process, what does one do?

I suggest we develop an investment strategy instead of looking to discover a financial vehicle to garner the greatest return. Are you looking to invest long term, maybe three to five years or longer? Are you seeking a quick fix? Or maybe you are looking to position yourself to recover just ahead of the market. Whatever it is, I suggest taking some time to think about what you, that’s right – YOU, are looking for.

In any event, a strategy must be developed so that your personal financial goals can be reached.

Underutilized

Underutilized is a term not heard very often in the American market, however many times it is actually a great observation of many families and entrepreneurs! What does it mean? The term simply refers to something that has failed to be utilized fully. Let’s think about that for a second!

Recently, I heard a story about a real estate deal gone wrong. Nothing new to those of us who keep our ears to the ground, right? Nonetheless, now the building is in limbo as there is a substantial amount of money of money due on a note. While listening to this story my question was simply, is the building being utilized to its optimum capacity? After a few minutes of quiet thought the reply was, “no”.

Like this story, many of us have underutilized our business opportunities and are suffering because of it. There are some very creative ways to generate revenue that probably escapes you now. One of my success mentors says, “sometimes you have to slow down in order to speed up”. Could it be, as an entrepreneur or potential entrepreneur you are going so fast that you are missing other opportunities? Maybe you think that you have too much on your plate and let other opportunities pass you by? Take some time to think about this!

Whatever the case, allow me to assist you with identifying opportunities and create new streams of revenue for your family. Send an email to me at info@frederickotowles.com and I will assist you with this. Don’t let another opportunity or hidden revenue stream pass you by.

Retirement Thoughts

As you probably know if you were born after 1960 the retirement age to receive for full Social Security benefits was raised to 67. What you may not know is that on average Americans live until age 78. This means on average people live about 11 years after their retirement date. So what, why is this important? It is important so you can develop a retirement plan early.

Eleven years after retirement is equivalent to 4,018 days. Let’s take that number (4,018) and multiply it by 100. This would result in 401,800. Why is this number important? I suggest that this is a good starting point for the target amount you and I will need for retirement. Does $401,800 seem like a lot of money? It would unless you begin to plan for your retirement today. As I said this number is simply a starting point for the amount you and I will actually need. Speak to your financial professional today to begin planning for your retirement.

Yes We Can?

A recent radio address from President Obama suggested that Americans need to save more for retirement. Treasury Secretary Timothy Geithner also disclosed “working Americans should be able to retire with dignity and security,, but nearly half o the nation’s workforce has little or nothing beyond Social Security benefits to get by on in old age.”

One of the new incentives on the table to counteract this is to allow tax refunds to be directly deposited into retirement accounts or used to buy savings bonds.

This is something we all may want to consider during this upcoming tax season. Don’t let Social Security be your only source of income when you retire. In like fashion, don’t allow your job to be your only source of income now either.

The Best Opportunity Is Now

It has been said that, “character is developed through the trails of life.” This is a true statement. In like manner, I would like to submit to you that, “business opportunities are sweetest when the financial climate is at its worse.”

Let’s take a look at what is happening in today’s financial climate:

(1) Banks are attempting to bail out many homeowners who are overextended.
(2) Economists are predicting their will soon be a tsunami of home foreclosures.
(3) The government is spending a great deal of cash to get the economy to turn around.
(4) Eighty one banks have failed so far this year.
(5) There are 150 – 200 more banks expected to fail during this banking crisis.
(6) Banks may have to set aside 25% of their profits in 2010 to pay for these failed banks.

With these conditions affecting the market, it is the best time, in my opinion, to launch your business. When we look back in history, financially depressed environments have always created new business opportunities and the next generation of millionaires. Some companies and individuals prosper during recessions. You might have to re-think or re-create yourself but prospering during these tough times is possible.

Could the next generation of millionaires include you? Of course it can, but you have to be in a position for this to happen.

Allow me to assist you with discovering the best opportunity for you. Send me an email at info@frederickotowles.com.

Less on Less

You may have already heard that there will not be an increase of social security payments for the 2010 and 2011. This will account for the first time since 1975 that this automatic increase will occur. In addition the Social Security Administration reports that nearly 6 million Americans will see a slight decrease in monthly payments in the coming years. This decrease is due to the slight increase in medical costs for those that have payment for medications deducted from their Social Security payments. What does this mean for those individuals who depend on Social Security?

Well it primarily means that we must discover more options. This should also serve as a notice to those who are ten or more years away from retiring. The message to you is to make sure you focus on saving for retirement now. What should those who are currently receiving Social Security payments do, here are a few things:

(1) Develop a solid budget immediately. There is something about writing out a plan or budget on paper. It makes the budget or plan realistic. Make sure you include everything in your budget, even the least expensive items. The budget should be on a monthly basis.

(2) Adjust your expenses. Cut any expenses that you can do without. We are creatures of habit. If you begin now to eliminate a particular expense, although it will be tough in the beginning, it will become easier to do without in the next thirty days.

(3) Increase your income if possible. After creating a budget and assessing your expenses you should examine your income options. Is there anyway of increasing your income without risking a decrease in Social Security benefits? If so, you may want to purse those options.

(4) Stick to your “new” lifestyle for the next 365 days. It is important to stick to this new plan for the next year. I would reassess the plan every four months to ensure that it is working. Adoption is one of the largest things for adults to deal with. Hang in there I know you can do it.

Maybe you know someone in this situation or maybe you are in this situation. There is hope for you. It is never too late to create the lifestyle you desire as long as you still have the desire to change your lifestyle!

Back to School Blues

This is a great time of the year for many parents. For teachers and students alike this may be a time of transition. However, this time of the year reminds me of something very important to business. This season breeds learning new things and getting back to the disciplines of life. Your business as well as mine needs this to occur periodically.

The current entrepreneur and anyone considering entering into the entrepreneurial world should take this time of year as an example. During this time the entrepreneur should reload on their personal development library; schedule to attend educational events (i.e. teleseminars, conferences, etc.) and network with other entrepreneurs in your area.

In addition you must know your learning style. I am an Aural learner. Therefore I order many audiobooks instead of purchasing the actual to read. These are convenient for me as I can download them to my computer or mobile audio player and listen to them in the car or in the office. Teleseminars are also a great fit for my hectict schedule can be. What is your learning style? Whatever it is, begin to educate yourself through books (audio or text) and attend seminars.

Networking with other entrepreneurs in your area is another great source of encouragement. It is important to build a team around you. Some times this team will need you and other times you will need the team for encouragement.
Accomplishing these points can greatly contribute to the success of any entrepreneur.

What Can I Do To Produce More Money?

In today’s economy many people find themselves asking this very question. However there are numerous ways even in this distressed financial market to earn additional income. Here are five options to consider:

(1) Clean out your home of unwanted items and sell them on Ebay. There is old saying that “one man’s junk is another man’s treasure.” Why not rid yourself of unwanted things and make a profit at the same time.

(2) Turn your hobby into a business venture. Hobbies are not considered business by the IRS mainly because people are not engaged in hobbies to make a profit. What hobbies do you currently engage in? Could there be a market for this service or product? If so launch your business before the end of this year.

(3) Cut your expenses. Take some time in the next two or three days to write down your weekly and monthly expenses. Examine the list, is there anything that can be scaled back or eliminated? Usually entertainment related expenses like cable television, video games and movies can be scaled down or eliminated altogether.

(4) Change your withholdings on your job. If you are a W2 income earner and you usually receive a rather large tax refund you are able to receive that refund early. You may ask how? Sit down with a tax professional to examine your W4 status. By changing your W4 status it is possible to receive a raise from your job.

(5) Enter the direct sales industry. The direct sales industry is booming! Millionaires are literally being created by this industry every month. This industry is perfect for those with limited time and a limited budget. If you are eager to be successful and very teachable then this might be the option for you. Some direct sales companies maybe a better fit for you than others, so take a close look at these companies before selecting one.

These are just five very simple ways to earn additional income. There are others that you may think of as well. The bottom line here is to identify a stream of income and begin to work on it. Your success is directly linked to your activity, not luck or fate!

Are Things Really Improving?

If you have been watching the news of late you will realize that many of the Wall Street professionals are “willing” the market upwards. Can it be said that the market is on an upturn simply because a few companies have announced profits during the first two quarters of 2009? Definitely not! There are several factors that alert us things are really not improving: (1) unemployment is still high, (2) house prices are still dropping in many markets and (3) the government is intervening in this “apparent” upswing a bit too much.

At best the upswing is artificial. It’s designed to convince the general public that it is safe to come outside and spend, spend, spend! After your family’s monthly obligations are met do you have excess income? If so it is best to invest in something that will produce income, whether short or long term. Opportunities may include a business venture or some other type of investment.

With Christmas coming, this artificial upswing will seem to be real. The goal here again is to get the public to spend money in order for the economy to turn. Be wise you’re your spending in this upcoming holiday season.

Direct Sales May Have A Bull’s Eye On Its Back

The direct sales industry has received a bad wrap over the years because of some of the unscrupulous people who have taken advantage of others. However this industry is touted by many as being the key to success for middle class America. Many may or may not agree with either of these statements. Nonetheless, the direct sales industry as well as other entrepreneurial industries may be the next target of the IRS and state tax authorities.

Members in the direct sales industry must be sure to keep all of their receipts for the year. With the current economic downturn the IRS and state tax departments will be looking to generate revenue. These entities generate revenue by auditing returns – taking a closer look at things.

Here is what I suggest to protect you from audits:

(1) Be sure you are in business to make money and not just for a tax deduction. The best way to do this is to be active in your business, generate some revenue.

(2) Keep all receipts. Take them out of the shoe box. Develop a system where you are able to scan your receipts and develop a short narrative for each receipt.

(3) Seek a professional to prepare your tax return. Don’t try to compute your return on your own. You might find that it will cost you more to prepare your own return in the long run. I recently had a person prepare their own return, to save money. The person made a mistake and they now have to pay for the amended return to be prepared along with owing the IRS and their state more money. In addition your preparer might be able to recognize deductions that you aren’t able to.

(4) Engage in your business. More than likely your activity will produce income and it will also produce tax deductions as well.

(5) Engage in tax planning with your preparer, if that service is offered. You are in business so you should plan for taxes just like you plan for a vacation. Many of my clients know exactly what their tax status is several months before the end of the year.

Investing In a Turbulent Market

Brokers are begging you to leave your money in their suggested funds or investment instrument. Financial planners advise you not to take your out of the market. Fear of losing every dime you invested runs through your mind. What is the best advice when looking to invest in a turbulent market? The best advice in my opinion is to invest together.

This is the new “hedge fund”. Likeminded people should form an investment group and pool their monies together in order to get ahead in this turbulent market. Would you rather risk $100K on some investment that might bottom out and never recover or would it be better to team up with none other people that will invest $10K each in the same investment.

Investing together with likeminded people can “hedge” your money and theirs as well. Of course investing together isn’t always easy but it can be worthwhile and lucrative. In a few months I will be opening a company similar to what is stated here where likeminded people can invest and potential make some money in this turbulent market.

It is something for you to think about with your family and friends. Also be sure to seek the advice of an attorney and accountant before entering into something of this nature. Stormy weather always creates fertile ground!

A Life Lesson From The Hudson

I am a believer that a lesson or insight can be retrieved from just about anything.  This past week in NYC a plane crashed in the Hudson River moments after taking off from the airport.  The cause of this crash is reported to be birds, geese to be specific.  Almost 200 passengers were at risk. Where is the lesson in that?

It is the small things that can interrupt and even stop your progress.  The plane out weights the flock of geese and the plane is much bigger.  But when the plane is launched it is subjected to almost everything because the pressurized cabin makes it "lighter than air" enabling this metal monster to maneuver through the air. You and I must realize when we are launching out to reach our goals that there are some small things that can hinder us.  

Who would have though a flock of geese would be responsible for a commercial jet to crash? No one.  The lesson be very aware of the small stuff in your air space.  It might make the difference between success and failure.  The small stuff matters.  

What small stuff in your business have you left unattended?  What small stuff in pursuing your goals has been neglected?  

The Plane, the plane!


Many of you probably remember the short gentleman on Fantasy Island that shouted, “The Plane, the plane!” That should bring back memories for many, but there is a valuable lesson about your finances in that statement.

A plane does what is should physically not be able to do. The wings of a 747 weigh 95,000 pounds. The passenger potion of the plane weighs 53,000 pounds (this does not include the weight of the passengers, flight crew and luggage). The 747 plane stands at a height of 63 feet and 8 inches, which is the equivalent to a six story building. Yet the 747 is still able to fly from destination to destination with little effort.

Big deal, you know that where is the financial lesson?

I am elated that you asked!

From time to time between destinations the plane experiences an irregular atmospheric motion which is an issue known as turbulence. Turbulence can be annoying and frightening to the passengers. The passenger may sometimes act a bit out of character but the pilot always keeps calm and attempts to find a way to fly above or below this atmospheric shift. If he can not climb from or descend out of the turbulence, he has only one option – go through it.

Right now many are going though turbulent times with their finances. In turbulent times remember the following:

Like the airplane it does not appear, on the surface, that you should fly but you have been conditioned to fly.

Remain calm the turbulence will only last for a little while longer.

Resist the urge to bail out. If the plane doesn’t fair well in turbulence how well will you fair?

Resist the urge to act out of your character although those around you are doing so.

You can succeed in turbulent times.

Change Your Language

Language is very important as it is language that is a mirror of one’s attitudes, thoughts and insights. You can tell where most (if not all) people are financially by listening to their language about money. Let’s take a peak and tell me if my conclusion is correct or not:

An immature financial person will say something like “I can’t afford this”.
A mature financial person will say “I must budget a little more for this in order to acquire it”.

An immature financial person will say “I make the money but I don’t have anything to show for it”.
A mature financial person will say “I can account for every dollar was spent”.

An immature financial person will say “I wish I had what he or she has”.
A mature financial person will say “I can have that but I need to develop a quality financial plan in order to obtain it a little later”.

An immature financial person will say “I am broke”.
A mature financial person will say “I don’t have the money I need right now but I will obtain it shortly”.

Language reveals a person’s mindset, character and what one is trying to hide. Which person are you, the financially immature or the financially mature person?