Make the New Year Prosperous

Start by reviewing your 2009 income and expenses. Tools you can use include Mint.com, Quicken® or a simple spreadsheet. Go through your bank and credit card statements and categorize your sources of income and expense. Expense categories include things like mortgage, utilities, dining out, groceries, health care, beauty care, etc. Separate your expenses into needs and wants. Take a big picture look at your 2009 habits from this perspective. What do you see?

Next set your 2010 goals. Do you want to go on a summer vacation? Buy a new refrigerator? Pay for your grandchild’s private school? What is really important to you as your prioritize your money?

Prepare a budget for 2010. Start with your needs and add in your goals for 2010. If your expenses exceed your income first look for ways to eliminate unnecessary spending, like brown bagging your lunch instead of eating out. Next look for ways to reduce spending, for example, having your hair cut every six weeks instead of every four. Look at behaviors or habits that cause you to spend money. Do you consider shopping recreation? If so replace that habit with another such as a walk in the park, visit to the local library, game night with your friends.

Many people fail to build an emergency fund. We all need at least 90 days of spending stashed away in a savings or money market account for those unexpected rainy days. If you aren’t there yet, be sure your 2010 budget includes a line item for building your safety net.

Budgeting is essential to take charge of your financial life. If you budget, you are choosing what you want. You are rowing your own boat in the direction you want to go. If you failed to budget, you are leaving your goals to chance, going wherever the river will take you. You may get what you want and you may not. Empowered people budget and plan. Join the budget crew today and create the life you want.

As you plan, remember to think past 2010. A solid financial future is built by saving and increasing your net worth. Review your 401(k) or other employer plan and be sure you are participating at least a level to get the full match. If your budget allows, contribute more. Pay down your credit cards, starting with the smallest one first. Celebrate your victory (without using your credit card) and proceed to the card with the highest interest. Prepare a quarterly net worth statement and give yourself regular at a boy/girls for growing your wealth!

May prosperity be yours,

Mackey McNeill, CPA/PFS
President and CEO, Mackey Advisors

www.CultivatingProsperity.com
Mackey@CultivatingProsperity.com

COBRA Premium Subsidy Program Extended

On December 19, 2009, President Obama signed into law the Department of Defense Appropriations Act, 2010 (DOD) which extends the 65% COBRA premium subsidy to February 28, 2010.

The American Recovery and Reinvestment Act of 2009 provided a government subsidy of 65% of the cost of COBRA coverage for employees (and their eligible family members) who lost their health insurance coverage due to involuntary termination of employment in 2009. The subsidy was to last for up to 9 months. The DOD extends the subsidy to 15 months and includes eligible employees (and their eligible family members) who lose their jobs in January or February of 2010.

How to Stay Fit on a Budget

by: Sheryl Nance-Nash
The Faster Times
December 24, 2009


If you’re like many people, you vow to get in shape around this time every year- and find a way to break the vow somewhere between the Rose Bowl and Valentine’s Day. Well, make your own excuses. But after reading this, you’ll have to let go of the idea that working out is too expensive. Working out should shrink your waistline, not your wallet. Here’s how to do it on the cheap.

Cash in on broken promises

Idle workout equipment needn’t remind you of broken promises: it can look like a fresh start. If you have a bench or LifeCycle in your basement, treat it as a free starter kit: if you need to buy one, scoop somebody else’s discarded treadmill or rower on Craigslist or eBay. “If you make smart purchases, a basic home gym can be set up for under $100 and allow you to perform dozens of exercises,” says Brad Schoenfeld, author, Women’s Home Workout Bible.

Go for the video. For even lower expenses, buy about $60 worth of exercise DVDs- or pay nothing to borrow them from the library. “Get a group of friends together to swap tapes weekly to keep it interesting and your body guessing,” says Mackey McNeill, president of Mackey Advisors CPA’s & Wealth Advisors. You can use a video console to work out with friends. EA Sports Active is a $60 customizable, fitness video game created for the Wii that claims to get your heart pumping in just 20 minutes a day.

If you want to expend some shoe leather, you can probably find a free gym or track in your town- at the high school, perhaps, or in an apartment complex that hasn’t sold out its units. “Ask around town,” says Jenny Realo, executive vice president of CareOne Services, a debt relief services provider. You may also find walking or running groups. “Your chances of success are higher if you have someone keeping check on your workout goals,” adds Realo.

If you have your heart set on joining a gym, now is a good time to look for a membership as there are deals waiting on all those who are making the same resolution to get in shape. You can cut the cost of a personal trainer by sharing one. Ask around at clubs that offer personal training if they have small group arrangements. Be smart. Shop around. Don’t be afraid to negotiate. Gyms need members in a recession, as sorely as you need discipline.

Run baby run. Of course, exercise can be free. For little more than the price of running shoes you can run just about anywhere. If winter weather is an issue, you can always do brisk walks in a mall if you do so at hours where there isn’t likely to be a crowd. Just don’t stop to shop!

Find places to add extra walking time, whether it be the distance you park your car at the grocery store or the daily commute to work. “It can also be as easy as adding 10 to 15 minutes extra to the daily walk you have with your pet. A 30-minute walk can shed up to 200 calories,” says Realo.

Take the stairs at work and make it a challenge with your co-workers. “Who can take the stairs the most times in a week or a month?” says McNeill.

That’s right: fitness happens, in 2010, one step at a time. Good luck!

As we close 2009

At Mackey Advisors, Your Prosperity Partner it has been an exciting and challenging year. As we all know, a deep stock market decline began in earnest in October 2008 and continued into early 2009. As wealth advisors, we wish we could control the market, but instead have to rely on discipline and research to make our best judgments for our clients. We did a lot of listening and created many new venues for communication, including webinars, and this new blog.

Mackey Advisors had a few additions for 2009 including:

•The Prosperity Experience®, an integrated wealth advisory program for individuals and businesses that creates a lifelong process for prosperity. TPE was in the creational realm for 3 years. The Wisdom Link, Jon LoDuca, provided the spark to move us into the final phase of development and Mort Nicholson added his wisdom to help craft the final version and align the individual and business processes. Thank you Jon and Mort.
•New team members: Sarah Lee, Administrative Manager; Kathi Baker, CPA and Shared CFO; Katie Kreimer, Staff Accountant; and Grace Mohr, Marketing and Communications Coordinator.
•Many new business and individual clients thanks to our friends and clients who beat the drum and tell their friends and family about our services.

May prosperity be yours,

Mackey McNeill, CPA/PFS
Mackey Advisors, CPA
www.CultivatingProsperity.com

4 Last Minute Holiday Money Tips!

by: Brian J. O'Connor
The Detroit News

The 2009 holiday shopping season has only four days left, but consumers still have time to take a minute to review how their spending is progressing. CPA Mackey McNeill, a member of the National CPA Financial Literacy Commission, offers these tips for a cost-effective holiday:

• Review your budget: Take a moment to review your holiday shopping list to see if your budget is still in check.
Ask yourself: Am I on target with my original budget for the season? Do I need to revise for whom I am buying or what I am buying for them? Do I have any last-minute gifts or people that I did not account for originally?

• In the spirit of giving: Consider making a donation in the name of a family member or friend to their favorite charity instead of, or including, a small gift.
The charity donation will help someone less fortunate during the holidays, and you can take a deduction on your 2009 taxes.

• Cost-efficient holiday ideas: Be creative in your gift giving. Frame a special photograph, for example. If you have a talent that lends itself to personal expression, like knitting or songwriting, make use of it. Gifts like these will have sentimental value and be memorable; not to mention less expensive.

• Do additional research: Once you have reviewed your shopping list, become an educated shopper and compare prices. You may be able to save a few dollars on each gift, which can add up and allow you to stretch your budget even further. Use coupons for additional discounts.

Solstice Prosperity Lessons

What is often needed to create more prosperity in our lives is a change of perspective. Have you ever heard the saying, "It is darkest, just before dawn?"

When there is the least amount of sunlight every day, Winter Solstice, is the day when the earth begins to create more light. We may not notice the new light for several weeks or months, but none the less, it is happening little by little.

If you are in a dark moment of prosperity, remember this saying and hold it as comfort. The light is coming. You may not see it right away, but it is coming all the same.

This year Winter Solstice is December 21st. Why not use this day as a day of gratitude, for the darkness that teaches us about the light?

May prosperity be yours,
Mackey McNeill, CPA/PFS
CEO and President
Mackey Advisors
www.CultivatingProsperity.com

Quit Whining and Get Financially Healthy

Rarely does a week go by that I don't hear about some small business person who cannot get a loan. PLEASE! The main reason we are in the mess we are in now, is that access to credit was too easy. If you could fog a mirror you could get a loan.

Now you have to actually be credit worthy. For a small business owner, that involves going the right things financially, like building equity either from your personal funds or from retaining earnings in the business. It means managing your business. Treating it like a business and not just a job.

Today if you have a healthy balance sheet, you can access credit. If you don't, instead of complaining about it, why not just get busy doing what you need to do to make yourself credit worthy. Lower your debt. Build your equity. Manage your cash flow. Watch your numbers like a hawk. Grow your market share.

Quit whining and get busy!

Mackey McNeill, CPA/PFS
Mackey Advisors
www.CultivatingProsperity.com

Simple Lifestyle Changes that will Save You Money!

The weather outside may be frightful, but here are a few ways to keep the inside delightful and not break the bank. With just a few changes in your lifestyle you can save the planet by cutting down on your energy use and save a little pocket change.

Energy Saving Tips for the Winter Ahead:

• Close up rooms that are not used on a regular basis, like a guest bedroom. Close the vents, turn down the thermostat, and close the door. There is no sense heating a room that is not occupied

• Turn down the thermostat and use space heaters in frequently used spaces. Turning down your thermostat even 1 degree can save you 3% on your energy bill!

• Minimize the use of ventilation fans. A bathroom fan can suck all the heated air out of the average home in little more than an hour.

• Keep your furnace, heat pump, or other heating equipment maintained and running as efficiently as possible. Look into purchasing a maintenance agreement. In the long run it could save your family lots of money.

• Ceiling fans do more than keep you cool during the summer; they can warm during the winter. It’s as simple as flipping a switch to change the direction of the blades, which pushes warm air down.

• Keep the water heater temperature at 120 degrees or cooler.

• When washing clothes always wash full loads and use cold water whenever possible.

• We all love those long hot showers in the winter, but by cutting your shower time in half you can save 33% on hot water costs.

• Let Mother Nature lend a warm hand. Open up the curtains and blinds on all South facing windows during the day and let the sunlight heat the house naturally. But be sure to close them before the sun goes down to keep the heat within the house.

By: Grace Mohr

Focusing on the “Important” and not on the “Urgent”

by Mackey McNeill

Several years ago, my weekly schedule was structured around working in my Covington office three days a week and in my home office two days a week. It was a transformative time for the firm, and it gave me the freedom to work ON my business rather than IN my business, focusing on the important and non-urgent matters of the firm rather than the daily tasks associated with its function. That much focus and attention paid to entrepreneurial, visionary work was time well spent and resulted in a new foundation for Mackey Advisors. In fact, it worked so well that I quit doing it! Maybe you have had a similar experience. Something worked so well, you think you’re finished and you return to an old routine.

My abnormal schedule drew questions from my peers, as its “normal” to go the office five days a week. People would ask me, “What do you do at home two days a week?” I would explain that I spent it working “on” my business by connecting with key customers, reviewing my strategic plan, updating my budget and projections and thinking through new ideas and processes. I would watch as they run my response through their judgment filter, thinking, “Mackey is goofing off two days a week.”

In Stephen Covey’s work, he calls it the Four Quadrants. Click here for the quadrant matrix It is Quadrant 2, focusing on the Important and Non-urgent matters, that allow us to make quantum leaps in our lives. During my work-at-home period, I focused heavily on Quadrant 2 activity, and saw tremendous growth and positive change in my business.

For 2010, I have lots of goals…and one big schedule change. I am ready to return to a regular work-at-home schedule, dedicating focused attention on strategic matters that will continue to define Mackey Advisors as the leader in innovative financial services.

As of January 1, 2010, I am going to schedule one work-at-home day per week. My goal is to be so effective with this strategy as to allow me to reduce my schedule to a four day work week (three in the Covington office and one in my home office) by July 1st 2010. The extra day I create will be used to play, garden, fly fish, and spend time on community projects relative to greening the environment and creating a more sustainable world. Some might see that as “goofing off”, but I prefer to see it as a way to nurture my creativity, to deliver results in additional areas for which I have passion, and to expand upon the legacy I wish to leave for future generations.

The new year is a natural time for new beginnings. Why not take an evening, or just a quiet hour to assess the Important and Non urgent matters in your business and your personal life, especially with regard to your spouse or your children? Find the one big change you will make in your life in 2010 and prepare to leap into a new vision of your life.

Know more about your Food

If you have an interest in local and organic food, grown using ecologically sound principles, consider attending the OEFFA conference this February in Granville, Ohio. OEFFA stands for Ohio Ecological Food and Farm Association.

My husband and I attended the OEFFA conference last year and found it very informative. Some of the topics we learned about where: cooking local food, beekeeping, storm water management, traditional methods of farming and their impact on the environment, starting and growing a CSA.

This years conference features Joel Salatin, author of Everything I Want to do is Illegal.

Learn more at www.OEFFA.org

May prosperity be yours,
Mackey McNeill, CPA/PFS
Mackey Advisors
www.CultivatingProsperity.com

Favorite Holiday Tradition

Several years ago, I began a holiday tradition with my family. I bake them a tin of their favorite cookies, and they give me a list of their Top 10 Best Things of the Year. On Christmas day they read the list out loud, embellishing each item. One the performance is over, they get their tin of cookies.

Not only is this great fun, it makes wonderful memories. I keep all the Top 10 lists in a notebook. I never tire of walking down memory lane with the Top 10 list book.

My daughter always asks for Oatmeal Chocolate Chip. Below is the recipe I modified from my Mother's oatmeal nut cookie recipe.

Enjoy

Sarah’s Christmas Oatmeal Chocolate Chip Cookies
350 degrees, 10 minutes
• 1 C butter
• ½ C brown sugar
• 1 C granulated sugar
• ½ t vanilla
• 2 eggs, beaten
• 1 ¼ c sifted plain flour
• 1 t baking soda
• ½ t salt
• ½ t cinnamon
• 3 C oatmeal
• 1 bag chocolate chips
• ½ c nuts if you like
Turn oven on to preheat. Cream butter and sugar until smooth. Add vanilla and eggs and mix well. Sift flour, baking soda, salt and cinnamon. Add flour mixture to butter, sugar and egg mixture. Beat until mixed, but do not beat longer than what is required to mix. Add oatmeal and chocolate chips.
Drop by teaspoon onto a cookie sheet. Bake at 350 degrees for 10 minutes.

Mackey McNeill CPA/PFS
Mackey Advisors
www.CultivatingProsperity.com

The Top 10 Reasons People Don’t Live a Prosperous Life

By: Sandra Baptist

If it were easy, everyone would do it; everyone would have it. That “IT” is prosperity and we’re all trying to achieve that stage in our lives where wealth, health, success are a daily part of our lives.

So what’s the problem? Why aren’t some of us living a prosperous life? Read on, my friends…

1. Clarity: Many people don’t know what they truly want in life. They have not clarified exactly what they desire and where they want to be within a year, 5 years, or even 3 months. Because they don’t know where they are going they drift along with the daily grind, totally forgetting that they want to attain true prosperity.

2. A Clear Path: There are some that have a goal for their life, yet they do not know how to attain it. They go through the motions daily and never actually make a conscious decision to attain their goal.

3. Struggle: Many are desperately trying to live a life of happiness, wealth and success. They are focused on achieving true prosperity, but yet constantly find themselves struggling to attain it. It is this struggle that actually prevents them from being truly prosperous.

4. Fear: False. Evidence. Appearing. Real. This one four-letter word prevents us from going forward to achieve all that we desire. What will our family think? Will our friends still like us? A very high percentage of persons fear success because of how it will affect us and our relationship with others.

5. Conditioning: As children and young adults our environment affects a great deal of our “conditioning” and has a profound effect on the way we think, act and live. Our environment here could include our parents, our friends, television, politics, religion, school courses and our job. For example, the TV may constantly bombard us with images of prosperous persons as unhappy, as crooks or gangsters or as lonely and selfish. If we really believe this, who would want to lead a prosperous, successful life?

6. The Norm: “I can’t be bothered. This is too much work. It’s too hard” Some people cannot be bothered to achieve prosperity. They live each day in a trance, in a numb existence, going along with the status-quo and have no desire to change their lives for the better.

7. Out-Grow Your Peers: Some people don’t want to change. You may be hesitant to achieve your dreams, goals, your vision because once you do achieve true prosperity it may reduce your inventory of what is actually possible for you. It may mean that you grow beyond your partner, your friends and your family. What will that mean for you?

8. Negativity: Our lives are stuck by the negativity we are drawn to in our daily lives. A large percentage of people want to out do their co-workers or friends with the amount and magnitude of problems that they have. Most of us live our lives in total lack and shortage and that prevents us from achieving true prosperity.

9. Courage: It takes courage to be prosperous. It takes courage to make that change! We need to focus our thoughts towards our vision of true prosperity and hold to that vision. Once we have the courage and the beliefs, there is nothing we cannot achieve.

10. Beliefs: “It can’t happen to us. Prosperity is for other people. They were born with a silver spoon in their mouth”. We are programmed to think that being poor equals happiness. Our belief system totally affects how we live our lives. It is these beliefs that hold us back from our true potential and our true prosperity.

www.hinduwebsite.com

Fiscal Responsibility

Several times a week, I see articles suggesting if Americans don't start spending, then the economy will be derailed. Nonsense! This is akin to saying fiscal responsibility is a bad habit.

This recession was primarily driven my excessive use of credit, compounded by a zero or negative savings rate. This isn't a fiscally responsible way of living, nor is it sustainable.

There is good debt, for home purchases and to grow your business, and bad debt, for consumer spending. It is past time we learned to live within our means. It is also great news that our savings rate is up higher than it has been in 20 years.

Avoid reading articles like this one http://tinyurl.com/yjcsrxb which attempt to scare us back into being hooked on debt consumers. Put your own oxygen mask on first, keep reducing debt and saving.

Mackey McNeill, CPA/PFS
CEO of Mackey Advisors
www.CultivatingProsperity.com

New content added to Mackey Advisors Website

Click here to read an interesting article by Jeff Plungis on credit card companies charging inactivity fees.

Click here to view the PDF of Forefield's 2010 Key Numbers for tax planning. These numbers will help you with:

• Individual tax planning
• Marginal tax planning
• Investment planning
• Education planning
• Retirement planning
• Business planning
• Estate planning
• Protection planning

If you have any questions or would like more information call 859.331.7755

To Roth or not to Roth?

Beginning in 2010 the AGI limit for Roth conversions is lifted. This raises new questions about when a Roth IRA conversion makes sense. It isn't an easy question to analyze. One thing for certain, when you make a conversion you are choosing to pay tax today to avoid tax tomorrow. Voluntary early tax payments are generally not on the top of any one's "fun things to do today" list.

There are some situations where conversions make sense. The key is to analyze your situation very specifically and avoid generalizations.

This is one of the best articles I have seen on the subject from David Loeper of WealthCare Capital Management.

May prosperity be yours,
Mackey McNeill, CPA, PFS, IAR
www.CultivatingProsperity.com

Once again, Mackey has done it again. Enjoy another great article from our November newsletter.

Caution – it’s the holidays!

When I was young, our Christmas celebration consisted of fruit, candy, a practical present or two (like PJs and underwear), and one treasure you really could not live without, like a Barbie doll or a BB gun!

In 1966, when I was eleven, we spent Christmas with my mother’s brother and his family of five children. He was a very successful physician and much more well to do than my family. Not wanting to be outdone, my parents rose to the occasion by increasing their gift-giving. I received a black and white portable television - my own personal TV! At the time, the cost of such an item was about $100, much more than my parents’ normal Christmas gift budget. This was my first taste, and one that has stuck with me all these years, of “keeping up with the Jones.”

The holidays, more than any other time, challenge us with balancing the desire to please and measure up as providers with the sanity of fiscal prudence. We know that the kids will be comparing their presents with their friends. Did they get the latest and greatest cool toy or electronic gadget? Do they have the right clothes to fit in?

Human beings change in one of two ways: either very slowly or in crisis. This past year has created economic crisis for many people. As a country, we needed a change in our money habits. We needed to cure our addiction to debt and get back to saving. And that is exactly what is happening. The economic crisis has reminded us that we need to prepare for the lean times when we are fat and happy, knowing that it is not if something will interrupt our lives but when.

The holidays offer a great opportunity to teach the value of moderation to our children and to help them understand what it means to live on a budget and to make good financial decisions, today and for your and their tomorrow.

Make this upcoming holiday season the best yet. Look over your cash flow and decide on a spending budget. Allocate that budget to all of those for whom you wish to bless with a gift. Shop wisely and stay within your budget. And enjoy the feeling of freedom and comfort that comes from knowing there are no credit card bills coming to haunt you in 2010! Now that is a reason to celebrate the new year!

Personally, my favorite holiday gift is one I ask for every year. I ask my kids to write down and give me one of two things: a short story of their own creation, or the top ten best things that happened to them over the past year. They read the story or list out loud and talk about it on Christmas day. In turn, I bake them a tin of their favorite cookies. While we still have “store bought” presents floating around our house, the cookie and story exchange is by far my most treasured exchange.

Choosing Less

We have been raised in a culture whose message is to choose more. More clothes, more entertainment, bigger homes, more work, more money. There is certainly a great deal to be said about what has been accomplished in the world when we seek more.

What we often miss is the blessing of less. What about less work, less money, fewer possessions and a simpler life? This path isn't revered by our society, yet it is a path that offers great riches.

I have been blessed to work with individuals on both the "more" and "less" path. Both paths can give rise to fulfilling and prosperous lives. Yet my experience is that it is rare to find someone who can walks "more" path in peacefulness and contentment. More likely I find my clients on the "less" path are peaceful and content.

Any choice to live outside the norms set by society, requires thoughtful introspection. My theory is that this required introspection for those on the "less" path leads to the experience of peace and contentment.

Where are you on the continuum of "more" or "less?" Of "peaceful with my lot in life" and "anxious?" Where do you want to be? What new choices are required for you to shift?

Growing through the Recession

At Mackey Advisors we have two main lines of business. Our personal financial planning division and our business services arena offering financial advisory services to small businesses in the area of tax, accounting, Controllership and CFO consulting.

As President of the company, the bottom line is my responsibility, which has been no walk in the park this year. I have updated our revenue forecast and reprojected our budget more times this year than in all the 27 years of my business career combined. As business clients cut back their budgets, some cut their service level with Mackey Advisors. We took that time and repurposed our efforts to marketing.

Having more time to tell our story has paid off. We are now experiencing a higher level of growth than at any time in our 27 year history. Recession? Maybe it is just another word for opportunity.

Mackey McNeill, CPA/PFS
President and CEO
Mackey Advisors
www.CultivatingProsperity.com

Social Security wage base remains at $106,800 for 2010

The Social Security Administration has announced that the wage base for computing the Social Security tax (OASDI) in 2010 remains unchanged at $106,800.

With consumer prices down over the past year, monthly Social Security and Supplemental Security Income benefits for more than 57 million Americans will not automatically increase in 2010. This will be the first year without an automatic Cost-of-Living Adjustment (COLA) since they went into effect in '75. Since there is no COLA, the statute prohibits an increase in the maximum amount of earnings subject to the Social Security tax as well as the retirement earnings test exempt amounts.

The FICA tax rate for employees and employers is 7.65% each—6.2% for Social Security and 1.45% for Medicare tax. For self-employed workers, the FICA tax is 15.3%—12.4% for Social Security and 2.9% for Medicare. There is a maximum amount of compensation subject to the Social Security tax, but no maximum for Medicare.

On a salary of $106,800 (or more), an employee and his employer each will pay $6,621.60 in Social Security tax in 2010, the same as in 2009.

A self-employed person with at least $106,800 in net self-employment earnings will pay $13,243.20 for the Social Security part of the self-employment tax in 2010, the same as in 2009.

The FICA tax rates have remained unchanged since '90.

Intergenerational Wisdom

I remember driving through town with my Mother, passing the Dairy Queen. “Can we stop for ice cream?” I asked. “We have ice cream at home,” was my Mother’s response. My Mother was raised in the midst of the Great Depression, and she knew how to stretch a dollar. Going out to eat anything, even something as simple as an ice cream, was a treat reserved for special occasions.

Most of my media requests are requests for tips for ways to reduce spending. When you get into the specifics, there are so many ways you can cut your spending. However, to be effective for the long term, it begins with changing our perspective and thinking.

We have to learn to think like our grandparents or great grandparents. We have to tap the wisdom of our great aunts and uncles.

The challenge really isn’t finding a new way to save money. The challenge is to find a new way of thinking about spending money in the first place.

Try this on as an opportunity. Make a date with an elder in your family. Sit with them and listen. Ask about their lifestyle, how they spent and saved money. Ask their opinion about debt and how they managed without it. Not only will you garner invaluable wisdom, you’ll warm the heart of someone that really matters in your life. There is nothing like a good listening to, to feel important. So go out there are make someone’s day. And in the process, change your prosperity, forever.

May prosperity be yours,
Mackey McNeill, CPA/PFS IAR

President and CEO, Mackey Advisors

www.CultivatingProsperity.com

Autumnal Equinox

Fall Equinox represents a time when the light and dark exist in sacred balance. It provides you with an opportunity to tune into the balance of your life. As the sun moves into Libra, it also brings the teaching of balance. As teacher of balance in relationships it shows you how to honor another’s point of view, balance opposites, and consider options.

During this time evaluate things that may need your attention in order to come into greater harmony and alignment. Notice if you need to balance anything in your life to more effectively bring your desires into being? Perhaps you need to balance your active outer world actions with more quiet restful energy or balance your time indoors with more time spent in nature. Or maybe you need to focus your actions to get some energy flowing. You can simply ask internally what is it in you that needs to be balanced at this time so you can begin making the necessary changes.

excerpts from Lisa Micheals
Learn more at www.NaturalRhythms.org

Living Green at Red Sunflower Farm

From the Barn to the Boardroom, Sustainability Creates Opportunity

Choice. It’s the single defining characteristic of what makes us human and when we recognize and embrace the power of choice, anything is possible.

We can choose to make the world a better, cleaner, safer place. We can choose to use our gifts, talents and resources wisely; working together to grow them and shepherd into being a world that is better tomorrow than it is today.

This is the choice that Mackey McNeill makes everyday, personally and professionally and we invite you to join Mackey as she talks to Phyllis Parker on Channel 9 WCPO, September 15, 2009, at 8:00pm about how her home reflects her commitment to living consciously and sustainably. Many thanks to Gilkey Windows, Apollo Heating and Air, Potterhill Homes, Towne Properties, and the Household Coalition for Healthier Homes for making the show possible.

Mackey and her husband live on a 21 acre organic farm in Independence, Kentucky. Together, they use the resources it provides to lessen their dependence on traditional energy, water and food sources. “We have geothermal heat and air conditioning; we collect and filter water from rain and snow and use it in cooking and bathing; and we raise organic vegetables. Our home was built with energy efficiency as a primary goal and we’re consistently looking for ways that we can reduce, reuse and recycle,” Mackey explains.

Mackey doesn’t leave her commitment to sustainable living back on the farm come Monday morning. “What sets Mackey Advisors apart from traditional financial management firms is that we truly believe everyone can experience the beauty and richness of life when they start with clarity in their intention, make conscious choices that reflect their values, create with a purpose of sustainability and work toward enoughness, as they define it. Having a client place their trust in us is a privilege and we honor that trust by focusing on our client’s future and helping them build their material wealth in ways that support and strengthen their ideals. Prosperity, from this view, is not just measured by the money you have today, but by your relationship to it, the opportunities it brings and the legacy you create for your future generations,” she said.

Living and working on the farm provides Mackey with valuable lessons that she shares with her clients and they, in turn, inspire her. Mackey describes the two worlds as, “A wonderful partnership in which each supports the other and both preserve the gifts of today and contribute to a more sustainable, prosperous future that impacts everyone.”

Tune into Channel 9, WCPO, Tuesday September 15th at 8:00pm, enjoy the farm and share the inspiration

Focused on your personal net worth, or your banks?

If there was ever a time in history when it paid to budget wisely, it is now. With banks looking to enhance their bottom line, fee income is name of the game. Those steep fees come out of your pocket!

Read more at http://tinyurl.com/m9zn6p

What do you really know about food?

Health is on everyone's prosperity list. With all the debate about health care, what has disappointed me the most is no one is talking food. Yes, food. For so many of our health issues arise out of the high carb, high sugar diet we in the western world have adopted.



The truth is we do no treat food as medicine. If we did, out health care if we did.

It is way past time for us to get in the kitchen and cook for ourselves. Eating at home saves money and if you are educated about food, eating at home can greatly increase the nutritional quality of your diet.



My favorite new source for healthy recipes is Sally Fallon's book, Nourishing Traditions. I spent the weekend making fermented vegetables. Try it out for yourself!



For more reviews, here is a direct link to Amazon.

http://tinyurl.com/ljnna7

Journal idea to shift your prosperity

Take 30 minutes out of this three day weekend and try this exercise.

Journal on this question:
"What must I shift inside myself to feel worthy of ... fill in the blanks.... of what you want"

It is impossible to seperate money from your feelings about it. Sometimes in order to increase the flow of prosperity, you have to shift your feeling of worthiness.

Consider refinancing

If you missed the opportunity earlier in the year to refinance now is the time to look again. Rates have fallen. Read more at http://tinyurl.com/krm4e4

Fun way to create word art

We are using the tool wordle at www.wordle.net to create word art for our clients. Our unique process for life long prosperity, The Prosperity Experience, helps clients identify their values, intentions, purpose and goals for their personal prosperity.

We use the wordle tool to create word art, frame it, and send it to all new clients as a gift to visually reinforce what is really important in their lives.

There are many other uses, for teams, kids, presents, families.... and just fun. Try it out!

May prosperity be yours,
Mackey McNeill, CPA/PFS
President and CEO
Mackey Advisors
www.CultivatingProsperity.com

New Income-Based Repayment (IBR) plan for federal student loans

This caught my eye in the August 13, 2009 Weekly Forefield Alert:

On July 1, the federal government's new Income-Based Repayment (IBR) plan for federal student loans went into effect. Under this program, a borrower's monthly student loan payments will be based on his or her income and family size. More specifically, annual loan payments will be 15% of the difference between a borrower's gross income and 150% of the federal poverty level (the latter depends on family size and state of residence). Monthly payments are then calculated as one-twelfth of that amount. After 25 years of qualifying payments, the principal loan balance may be forgiven.

The program is open to graduates who have a Stafford, Graduate PLUS, or consolidation student loan made under either the William D. Ford Federal Direct Loan or Federal Family Education Loan programs. The loans could be for undergraduate, graduate, or professional studies, as well as for job training. To enroll in the plan, borrowers should contact their lender.

Details are available on the studentaid.ed.gov website.

From:
Alert@forefield.com
Forefield
33 Boston Post Road W
Suite 190
Marlborough, MA 01752
tel: 508-630-1100
fax: 508-630-1164

In Celebration of the Tomato

I just finished enjoying my favorite summertime lunch … a tomato sandwich, made with whole grain bread, a generous portion of Duke’s mayonnaise, and a thick slice of just-picked tomato, with a dash of salt and pepper. It makes my mouth water every time I think of it.

In the spring of 2008, Barry and I purchased and planted a variety of heirloom tomatoes. As autumn approached, I chose the best tomatoes from my favorite plants, diligently removed the seeds, and stored them in a cool, dark, and dry place. In February of 2009, I carefully planted these tiny seeds in small containers filled with rich soil and placed them near a southern window in my home. They did just what seeds are supposed to do, and after five months of anticipation, Barry and I gathered and savored our first tomato from the garden. Now, one month later, we have moved into full scale operations for drying, canning, and freezing an abundance of tomatoes.

This is the rhythm of a garden. From tiny seeds folded into intensely prepared soil and blended with a healthy dose of anticipation, mixed with staying after the bugs and weeds while constantly monitoring moisture, to the joy of picking the first few vegetables, to an abundant payoff in a short, sweet sixty to ninety day period filled with wonder and gratitude.

Bountiful gardens require a lengthy period of time in preparation, tending and monitoring for a brief and glorious display of the abundance of nature.

With all of the complexity that surrounds investing and wealth management, it too is a natural cycle. We prepare, tend, and monitor for many years, and then harvest our abundance for a relatively short period toward the end of our lives.

Even investment cycles, for all their seemingly incomprehensible volatility, follow a harvest cycle. There are long periods of little or negative market return, interspersed with brief intense periods of upward movement. Consider these facts:

• In the 82 years between 1925 and 2007, one dollar invested in the S&P 500 grew to $3,186. If you missed the best 37 months (out of 984) of market movement, your one dollar would have been worth a mere $19.17.
• If you invested $10,000 in the S&P 500 in the beginning of 1980, it would have grown to $286,000 by the end of 2007. If you missed the best ten days, your return would have shrunk to $131,000, a 54% difference for missing ten days out of twenty seven years.

What are the lessons of the harvest? Can we use those lessons to give us more peace and optimism about today and the future?

Planning, patience and persistence pay off when it comes to a garden. Ditto for wealth management and investing.

Studies show that individuals with a financial plan achieve more wealth that those without a plan. Just as in gardening, financial planning pays off in tangible rewards. Patience and persistence are required to be a successful gardener. You cannot hurry a tomato to ripen or wish an ear of corn into its sweetness. Rather you have to care and tend the garden, and the harvest takes care of itself. The same is true for investing. We care and tend by devoting time and energy into developing and researching our investment plan, followed by action and monitoring our results.

Worry, denial, lack of attention, lack of planning, either make our garden less productive or make no difference. The same is true for our financial life. Losing sleep over our portfolio does not make a nickel’s worth of difference. Lack of attention however, means that our results are more like a crap shoot that a targeted result, just as it would be in the garden.

When you look at your own behavior around your personal finances, how much energy do you spend in planning, patience and persistence? How much in worry, denial and lack of attention? Do you need to make a new choice?

If you are not getting the results you want in your money life, and you are spending your energy needlessly on things that make no difference, focus on the activities that matter: planning, patience and persistence. Then wait, anticipate, and enjoy the harvest.

by Mackey McNeill

Money can't buy happiness

Great YouTube video with Matt Weinsteinn, a Bernie Madoff past client, putting it all in perspective.

Thank you, Matt, for a great lesson.

Click below to watch the 8-minute video.

http://tinyurl.com/da87bo

Cincinnati Business Courier Investor Profile

For those of you who don’t have access to the Business Courier’s website, here is a copy of the Investor Profile by Dan Monk I was recently featured in.

Name: Mackey McNeill
Firm: Mackey Advisors
Title: CEO and President
Assets under management: $25 million
Age: 53
Family: Husband, Barry, and 3 children
Residence: Independence
Phone: (859) 331-7755
Web site: www.CultivatingProsperity.com
Performance (balanced through June 30):
Firm/Index
YTD 6.9%/5.5%
1-yr. -23.0%/-26.0%
3-yr. -4.0%/-6.8%
10-yr. 5.5%/2.7%

Mackey Advisors doesn’t just manage clients’ investments. It emphasizes financial planning as a key part of the process. Founder Mackey McNeill likens it to constructing a building. You need a design first to know how you want to set it up. That philosophy helped when stocks tanked last year and earlier this year. “We encouraged people to make rational decisions in an irrational market,” said McNeill, who founded the firm 26 years ago. Now, she’s seeing signs of improving investor confidence, as homes sales and corporate earnings show small signs of life. Small stocks and growth companies should do well in this environment, she said. “It’s like a classic recovery, with small-caps outpacing the market,” she said. “We have a little growth spin to our portfolios.” She’s also leaning towards international stocks. One-fourth of the firm’s allocation to stocks, bonds and real estate is in international investments. Mackey Advisors uses 14 asset classes. It invests using mutual funds or exchange-traded funds. It uses green, socially responsible funds where practical. Plenty of those funds are available in large-cap categories. So the firm uses them in growth, value and diversified large stock investments. The Parnassus Workplace Fund is among the choices in that group. We use green funds where it makes sense, and we’re not sacrificing return,” McNeill said. “We believe how you invest matters. You’re voting with your dollars.” McNeill also aims to lower volatility in client portfolios. She’s using commodities, such as the Claymoor Timber Index (CUT) and the Commodities Power Index (DBC). Those help hedge against inflation.

Thank you to the Business Courier for featuring me this week!

Clock Is Ticking on These Small Biz Tax Perks (from SmartMoney.com)

I recently came across this article on SmartMoney.com by the Tax Guy, Bill Bischoff. I think it's a great heads-up so I'm posting it here:

Clock Is Ticking on These Small Biz Tax Perks

Believe it or not, we are already more than halfway through 2009. For small-business owners, that means the clock is ticking on some favorable tax icentives. If your business is healthy enough to buy equipment or software, the federal income tax perks for doing so are better than ever. Here's what you need to think about before the year is over.

Supersized Section 179 Deduction Privilege Has Short Shelf Life

For tax years beginning in 2009, many small businesses can potentially deduct up to $250,000 of purchased (not leased) equipment and software as soon as these items are put to work. Both new and used assets are eligible. This valuable break is called the Section 179 depreciation deduction privilege, and it’s an exception to the general rule that you must depreciate equipment and software costs over several years.

But to take advantage of this supersized $250,000 allowance, you'll have to act fast. The allowance will fall back to only about $135,000 for tax years beginning in 2010 (the exact number depends on an inflation adjustment we don’t yet know). So if your business uses the calendar year for tax purposes, you only have until Dec. 31 to take advantage of the generous $250,000 allowance (unless our beloved Congress extends it, which could happen). While the Section 179 deduction can be a very sweet deal, there are a few things you need to know before charging out to buy a bunch of equipment and software in hopes of lowering your tax bill.

If a Business Is a C Corporation

A business operating as a regular C corporation cannot claim a Section 179 deduction that would create or increase a tax loss for the year. In other words, the deduction is limited to the amount of corporate taxable income before the deduction. So if your outfit is having a marginal or lousy year, the allowable Section 179 write-off might be little or nothing. On the other hand, if your company is having a decent year (despite the bad economy), buying enough stuff to claim the maximum $250,000 deduction would reduce your company’s taxable income by that amount and save it plenty on taxes. (Beware: some states don’t permit the full $250,000 federal allowance for state income tax purposes.)

If a Business Is a Sole Proprietorship, Partnership, LLC, or S Corporation

In this scenario, business deductions are passed through to you and written off on your personal Form 1040. However, the Section 179 deduction rules are tricky because various limitations can apply at the partnership, LLC, and S corporation level and at your personal level, too. For example if you’re an S corporation shareholder, you can potentially claim a Section 179 deduction on your Form 1040 for your ownership share of qualifying assets acquired by the company. However, you can’t claim over $250,000 in Section 179 deductions on your Form 1040 no matter how many businesses you’re involved with. Also, you can’t claim Section 179 deductions that would create or increase an overall business tax loss on your Form 1040. For this purpose, any salary you earn counts as business income; ditto for salary earned by your spouse if you file jointly. So be sure to check with your tax advisor to find out how the Section 179 deduction rules will play out in your specific situation before making big purchases.

Temporary Bonus Depreciation Break Is Worth More in the Weak Economy

Another big tax break is available for most new (not used) business equipment and software and some leasehold improvements that are purchased (not leased) and put into use by Dec. 31, 2009. For these assets, your business can generally claim first-year bonus depreciation deductions equal to 50% of the cost that’s left over after subtracting allowable Section 179 deductions (if any).

One important point: Unlike Section 179 deductions, bonus depreciation write-offs can be used to create or increase an overall business tax loss for the year -- which can, in turn, create or increase a net operating loss (NOL) for the year.

If you have a personal NOL for your 2009 tax year, you can generally carry it back to 2007 and 2008 and recover some or all of the federal income taxes you paid in those years. Or you can choose to carry the entire NOL forward to the next 20 years (starting with 2010) to offset income earned in those years that might otherwise be taxed at higher rates (possibly much higher rates).

In most cases, essentially the same rules apply if you have a C corporation business that creates or increases a corporate NOL by purchasing assets that are eligible for bonus depreciation deductions. Even better, if your non-calendar year C corporation runs up an NOL in the current tax year that began in 2008 and has not yet ended (for example, a tax year that will end on Oct. 31, 2009), that current-year NOL can probably be carried back for as many as five years. Your company can then recover some taxes paid in those years and use the money to help pay for the very bonus depreciation assets that contributed to the current-year NOL in the first place. Just keep in mind that while Congress could decide to extend the Dec. 31 deadline for taking advantage of bonus depreciation, don’t bet the house on it.

The Tax Guy by Bill Bischoff
Published August 5, 2009
http://www.smartmoney.com/personal-finance/taxes/clock-is-ticking-on-these-small-biz-tax-perks/

Thoughts after seeing Food Inc.

Recently my husband and I went to see the movie Food Inc, which is about America’s industrialized food system and how it affects aspects of our lives that we don’t even think about while we’re cruising down the supermarket aisles—the environment, health, economy and workers’ rights. Actually, this wasn’t new news for me; because of my and Barry’s commitment to sustainability and our interest in green living, I’ve heard all of this before. Regardless, I thought that the movie did a great job of packaging up a lot of information and presenting it to the consumer.

I believe that the average person doesn’t think too much about where their food comes from—suddenly, it’s there at the store, packaged up and piled high in glossy wrappers. The fruit gleams under the rain mist that falls from the sky of the produce shelves. The cereal boxes, adorned with sports stars and cartoon characters tempt with their sugar coatings and colored marshmallows. The rows of steaks, chicken, ground beef and pork roasts snare shoppers with visions of what they could be and how good they could taste, once cooked. Even the deli aisle calls to the consumer with its premade potato salads, crab cakes and battered pork chops that just need to be popped in the oven and reheated to be ready to serve.

What could be easier than this? We’re all busy and want to save time… No one likes to grocery shop. The quicker we can get in and out of the store, the better. But wait! If someone truly is what they eat, then shouldn’t everyone be more concerned about where their food comes from?

Simply put: yes. Even if you do not plan on changing your eating habits, you should still be informed. An informed consumer is a smarter consumer, or at least a consumer who makes choices knowing all of the information. Know the information so you can make your own decisions!

To find out more, visit http://www.foodincmovie.com/ and check it out. For now, I’ll leave you with ten things you can do to change our food system (also from the Food Inc. website):

1. Stop drinking sodas and other sweetened beverages: You can lose 25 pounds in a year by replacing one 20 oz. soda a day with a no-calorie beverage (preferably water).

2. Eat at home instead of eating out: Children consume almost twice (1.8 times) as many calories when eating food prepared outside the home.

3. Support the passage of laws requiring chain restaurants to post calorie information on menus and menu boards: Half of the leading chain restaurants provide no nutritional information to the customers.

4. Tell schools to stop selling sodas, junk food and sports drinks: Over the last two decades, rates of obesity have tripled in children and adolescents aged 6 to 19 years,

5. Meatless Mondays—Go without meat one day a week: An estimated 70% of all antibiotics used in the United States are given to farm animals.

6. Buy organic or sustainable food with little or no pesticides: According to the EPA, over 1 billion pounds of pesticides are used each year in the U.S.

7. Protect family farms; visit your local farmer’s markets: Farmer’s markets allow farmers to keep 80 to 90 cents of each dollar spent by the consumer.

8. Make a point to know where your food comes from—READ LABELS: The average meal travels 1500 MILES from the farm to your dinner plate.

9. Tell Congress that food safety is important to you: Each year, contaminated food causes millions of illnesses and thousands of deaths in the U.S.

10. Demand job protections for farm workers and food processors, ensuring fair wages and other protections: Poverty amond farm workers is more than twice that of all wage and salary employees.

As always, you all are invited to our farm, Red Sunflower Farm, to partake in organic home-grown food and good times! We have an open house the third Sunday of every month. For more information, visit http://www.redsunflowerfarm.com/.

Red Sunflower Farm

I know I usually blog about financial or economic related topics, but today I’m going to take a break from all that and write about some subjects near and dear to my heart—namely Red Sunflower Farm and gardening. After all, it is summer and everyone’s looking to slow down, take it easy and enjoy themselves.

Red Sunflower Farm is a farm owned by my husband Barry and myself. It’s located on twenty-one acres in Independence, Kentucky. We took an existing ranch house and redid it to be more Earth-friendly; for example, we now have a geo-thermal system, a 10,000 gallon cistern, and a wood stove. Barry’s favorite part of the house is his commercial size sink; mine is the food dehydrator that allows us to preserve and enjoy the fruits and veggies we grow in the summer all year long. We are fortunate to have a creek on our property as well as a quarter-acre pond full of catfish and bluegills.

We have a large and bountiful garden. I try to take time each week to step back from my work at Mackey Advisors and clear my mind by gardening. So far this summer I have shared with my friends and co-workers many delicious offerings including fresh vegetables and zucchini bread.

I would like to invite you all to one of our open houses at Red Sunflower Farm. Open houses are typically held on the third Sunday of each month. Barry and I take the time to do farm tours and share with our old friends, family, and new friends our love of our land as well as our insights and experiences with sustainable living. Feel free to bring your children to have fun and play as well—weather permitting, kickball games are often a big hit with our visitors. These open houses are potluck events, so bring something to be shared and enjoyed by all, and have your walking shoes on in preparation for the farm tour and a wildflower walk. Hope to see you there!

Mackey’s Zucchini Bread

2 cups peeled grated zucchini
3 eggs
2 cups sugar*
1 cup vegetable oil
1 tablespoon vanilla
1 teaspoon salt
½ teaspoon nutmeg
2 cups plain flour
1 teaspoon lemon juice
1 teaspoon cinnamon
¼ teaspoon baking powder
¼ teaspoon baking soda
1 cup chopped nuts

Beat eggs, add remaining ingredients. Mix well. Bake in a greased loaf pan for 1 hour at 350 degrees. Let cool; serve while still warm. Enjoy!

*If you don’t like a lot of sugar, feel free to use less; I usually do and the bread has more of a naturally sweetened flavor.

Twitter… Tweet Tweet Tweet All Day Long

As I have previously mentioned in this blog, Mackey Advisors has been keeping up with the latest and greatest social media trends, most recently Twitter. At first I kept hearing about how great Twitter is and how fun it is to tweet…

Ok, I’ll admit it. At first I wasn’t too sure about this whole ‘tweeting’ thing. Tweeting? Is that like texting? Why would anyone want to read something I tweeted about? Then a month or so ago I attended a social media breakfast event at the Mets Center in Northern Kentucky (where we were encouraged to get on our Facebooks, LinkedIns, and Twitters and were told to type ‘#metscenter’ if we were tweeting during the event). The panelists were so enthusiastic about Twitter I decided that it was time to give it a try. I signed up, made a profile, and tentatively offered my first tweet: ‘Excited to be on Twitter!’. Hey—give me a break. I really was excited! Then I attended a webinar where representatives from the AICPA spoke about their use of Twitter, so I signed up to follow them. And ever since then, my Twitter homepage has been full of tweets from the AICPA letting me know about all kinds of new laws and developments in taxes and accounting.

I’ve been doing my best to keep up with my Twitter; I’m up to almost 20 followers (wow!) and I’ve updated my tweets nine times. Okay, so this part of Twitter is what I’m still working on: the whole ‘stream of consciousness/I can update my Twitter 2576367 times I day if I want to’ idea. I’m still adjusting to the idea that a Twitter post isn’t exactly like a Facebook status update. I’ll get there! In fact, I’m soon to be on to my second post in one day (previously unheard of for me!).

While I’m getting adjusted and acclimated to the Twitter environment, I decided to take a look and see how other small to mid-size businesses were making use of their Twitters. Boy did I find out a lot!

For example, a man in San Francisco named Sam Kimball recently started a new business—a crème brûlée cart that he takes around the city. He sells new and interesting flavors of crème brûlée such as lavender and chocolate raspberry. Soon after signing up for a Twitter account he began to notice more and more customers coming to his cart to purchase crème brûlées. Upon inquiring how they heard about his cart they all said they had seen his tweets on Twitter. Now, Sam has over 5,000 followers on Twitter. When he is planning on taking out his cart, he will post the location he is heading to as well as the flavors of crème brûlée he is taking along… And then he goes. And his Twitter followers follow him in real life to get some tasy crème brûlée.

Here in Cincinnati Woodhouse Day Spa uses Twitter to announce weekly specials and discounts on Tuesday. They like using Twitter as opposed to a mass email because Twitter is a fresher, faster way to reach more people. And people are almost guaranteed to read a tweet because it’s fast and easy.

All over the country businesses and individuals are using Twitter to market and drive customers to their business. So far it has proven to be highly effective at communicating the desires and offers of business owners to their clientel.

My question to you is are you on Twitter? What have you used it for? Do you have any Twitter-related business or personal success stories? Please share! And if you’re on Twitter—follow me!!

Resources:
http://www.nytimes.com/2009/07/23/business/smallbusiness/23twitter.html?_r=1&em

Detail or Big Picture? Executives Weigh In

Recently at a small business summit, several different executives weighed in on which they focused on: details or the big picture. Out of the three executives interviewed there were varying responses.

Claudia Chan from Shecky’s Media Inc. who is in charge of the Girls Night Out events talked about trying to let go of one project in order to look at the next big thing. Once she has helped with the development and implementation of a new idea or project, she tries to delegate tasks and step aside so that her employees can work on the nitty gritty details particular to that project while she moves on to something else. However, she said that one problem she has is that it is never really possible for her to let go; that is, she’s constantly turning over the project in her mind even if she’s no longer directly working on the details. Her advice to other business owners was to have a management team that is in-line with the CEO’s vision and the company’s mission that can see a project through to completion.

Lisa Kaplan-Thaler is CEO and Chief Creative Officer at the Kaplan Thaler Group, an advertising firm dedicated to helping companies make the most out of different media arenas. Kaplan-Thaler talked about how important it is to focus on the details, because she said the details can really get you. What if one crucial detail is off? Could this derail your entire project? Perhaps. Her take on it was that details set the tone for the entire brand.

Jim Koch, founder of The Boston Beer Company, producer of the Samuel Adams brand of beer, talked about how stepping down from his company’s CEO position was one of the best things ever for him because someone who actually enjoyed CEO work took over the position. He said that he tries to consider the following questions in dealing with product development: “Where do I add value? What is the quality of my product? What is the culture of my company like, and does this product fit into that culture?”.

In conclusion… Whether you look at details or the big picture often depends on your personality style, but as a CEO or executive it’s important to do both. Begin with the big picture inception of a new idea and then focus some on the details, staying mindful that there will come a time when you will have to leave the detail work to someone else and move on to the next big thing. However, if you’re supported by a confident and hard-working team devoted to the values and goals of the company, you should feel better about letting go.

Eat more… Lobster?

When you think seafood, what comes to mind? All the typical fare—fish, shrimp, oysters, etc. But what about lobster? Most people (including me!) don’t eat too much of this particular crusty critter due to its expensive price tag. However, the recession is hitting people everywhere, and lobster may be more inexpensive than you think.

During times such as these, the demand for all types of luxury goods is down, and that includes lobster. Right now, the price of lobster per pound is cheaper than hot dogs. If you think you read that incorrectly, here it is again: per pound, the current price of lobster ($2.25) is less expensive than hot dogs. Crazy, right? Well consider this: restaurant demand for lobster is down 30-35%. Usually, people only go out for lobster when they have something to celebrate, and people just don’t feel like celebrating right now. Also, the Icelandic banks that have long been lenders to Canadian lobster processors are going under. If no funds are available to the processors, they will not process. This is a big blow to lobstermen, especially in Maine. Canadian processors usually purchase more than half of Maine’s annual lobster catch.

Add this to the fact that the lobster catch this year is bigger than ever, and you have a high supply and a low demand. Enter lower prices! In 2006 at peak price, the price of lobster was $10/pound. Today, it’s $2.25. Of course, buying lobster at a restaurant will cost you more, but purchasing lobster in the store and preparing it at home won’t blow a hole in your budget.

Unfortunately, this news, although good for the lobster connoisseur, is bad for the Maine lobsterman. Not only are they not making the profit on lobster that they used to, but the price of diesel fuel is rising and the price of herring (lobster bait) has doubled since 2007. Lobstermen have actually been losing money on lobster catches.

Some experts predict that the price of lobster will go down even farther as peak lobster season approaches at the end of the summer.

What has to give? Experts say that the industry needs to change the way lobster is marketed and presented to the consumer. One recommendation is offering frozen lobster much like frozen shrimp and salmon instead of making customers buy directly from the tank.

We’re all hoping for an end to the recession, but that doesn’t mean that we can’t enjoy ourselves when something previously thought of as a luxury becomes available at a price we can afford. Instead of eating dinner out, consider preparing lobster on the grill along with corn on the cob, potato salad, and cherry pie—a summer feast! That way, you’ll be able to enjoy yourself by eating something you probably haven’t had for a while, and more lobsters are sold, helping out the lobsterman. It’s a win-win situation… For everyone except the lobster.

Resouces:

http://money.cnn.com/2009/07/17/news/economy/cheap_lobster_bargain.fortune/index.htm?postversion=2009071809

A Password How-To

Social networking is fun, right? We do plenty of it here at Mackey Advisors—Facebook, Twitter, LinkedIn (check us out—look for Mackey McNeill!), and this blog. With all of the excitement about social networking and the fun of exploring something new, a lot of people don’t think about is password security—for example, some workers at Twitter.

Today in the news is an article about Twitter being hacked for the third time since January. As if this isn’t worrisome enough, the hackers were able to gain access to Twitter company documents through guessing an employee’s personal Gmail password and then using that password to access other Google Aps that the employee uses at work—applications such as those used to create spreadsheets and presentations. Twitter is now considering taking legal action against other websites and blogs that are publishing leaked documents, but who knows what will happen with that.

For the average bear (err, person!) the take-away is this: amp up your password security! I know you’ve all heard this over and over again, but read below for some tips for strong passwords (courtesy of Microsoft).

The best password:
-Is long
-Has some combination of numbers, letters, and symbols
-Uses the entire keyboard
-Contain words and phrases particular to you but unknown to others

A 4-Step path to the perfect password:
1. Think of a sentence that you can remember, something like ‘My car is a green Toyta’.
2. If you can use a long phrase, then use your phrase. If you cannot use a phrase, create a password by taking the first letter of each word: ‘mciagt’.
3. Make the password more complex by making a mixture of lowercase and uppercase letters. For example: ‘mCiAGt’ or ‘mY CAr iS A GrEeN TOyoTA’.
4. Use symbols to look like letters , combine words, etc. to make your password more complex. For example: ‘mYKa R7sa9r#3 nT0y04a’ or ‘3Ki59T’.

When making a password, do NOT:
-Use sequences (5678) or repeated characters (yyyyyy)
-Use your login name
-Use common/dictionary words (bean, birdhouse, etc.)
-Use the same password for every account (hack one, hack ‘em all)
-Store your password online

Hope this helps you protect your personal and financial information!!

Resources:
http://www.microsoft.com/protect/yourself/password/create.mspx

Looking to the (Financial) Future

As many recent high profile deaths has reminded us, no one—famous or not—lives forever. It is important to provide for your family so that they can continue to live successfully and happily even after you are gone.

First, be sure that you are properly insured. However, you do not want to be misled by an untrustworthy company with a good advertising strategy. Know the credit worthiness of the company. Also, have the right amount of insurance. It’s just like Goldilocks and the three bears—you shouldn’t have too much or too little, you should have what’s just right for you. Types of insurance to consider include life, health, disability, long-term care, liability, property, and casualty.

Also, be educated about estate planning and wills. Currently, if your estate is worth less than $3.5 million, your family will not have to pay estate taxes after your death (this will change in 2011; then, if your estate is greater than $1 million, your descendants will have to pay estate taxes).

A will directs the flow of your assets and establishes a guardian for any minor children and property and an executor. In a will, you can establish a trust that tells your family what you want to happen with your property, assets, and money. A living will describes acceptable medical procedures, should you be unable to communicate with your healthcare providers due to accident or injury. A living will also allows you to appoint a healthcare proxy to speak in your stead. You can also designate someone to have power of attorney and handle your legal and business needs should you be unable to do so. Wills, living wills, and so on should be updated every three to five years, just to keep things current and clear to anyone reading your documents.

Also, consider arranging and preparing your official documents. It’s often difficult for other people to try to gather and make sense of your personal documents. If you do it for them, not only will you have a neat and orderly filing system during your life but your family will also have the same system after your death.

While this type of event isn’t anyone’s favorite thing to think about, being prepared can allow families to mourn the passing of a loved one with having to worry about the financial end of things.

More Thoughts on Traveling...

Other budget-conscious travel tips:

• Consider traveling in the US! If you don’t want to bother with currency exchange rates and the weak dollar, take a look at the historical sites, national parks, and other attractions near or far from your home.
  
• What you previously considered a one-stop trip can be a two-stop trip or more. For example, a week in San Francisco can easily include a journey to California’s wine country in Sonoma and Napa Valley. A trip to Las Vegas can include a side trip to see the Grand Canyon—the two spots are only about 4.5 hours apart.
  
• If you’re flying somewhere in the US, consider using regional airlines. They may not take you straight to the airport in the heart of the big city, but they will get you an hour outside of your destination (remember to factor in travel time… If you end up an hour outside of New York City, it will potentially take you longer than an hour to get into the city due to traffic etc).
  
• Fly on weekdays instead of weekends. It’s usually cheaper.
  
• If you’re driving, map out your trip. The American Automobile Association has an online resource, TripTik, which will let you lay out your route. Then, a website like gasbuddy.com can help you figure out where the cheapest gas stations along the way are located.
  
• Consider having lunch be your main meal when traveling. Lunch is usually cheaper than dinner. Also, if your family is not big on breakfast, consider saving on breakfast and having a simple bagel or muffin instead of a large breakfast brunch. This will allow you to spend more on lunch and dinner.
  
• Consider having your pet stay with a friend instead of at a kennel while you are gone. This, of course, might require some pet sitting on your part in the future to pay back your friend’s generosity, but if you are responsible and like animals, this shouldn’t be a problem.
  
• Vacation with family and/or friends. Get a rental house instead of a hotel—more privacy and more homey while saving money at the same time!
  
• If you’re thinking about taking a cruise, look online for cruise specials and discounts. They’re everywhere, especially in what has traditionally been considered the off-season for your destination.
  

Travel doesn’t have to be super expensive. And if you’re still worried about costs yet are yearning for a weekend get-a-way, consider a night or two at a bed and breakfast within a four or five hour drive from your house. Not only will you be supporting regional economy but you might discover something you never knew about your state/area!

Internet Sources for Cost-Effective Vacations

A friend of mine recently told me to start checking out sites such as Priceline and Hotwire when shopping around for travel deals, both on business trips and personal vacations.

Some things I noticed while reading:

• Use Priceline to bid on four star hotels to get them cheaper. Unfortunately, you won’t find out the name of the hotel until your credit card has been charged; however, it’s all part of the adventure, right?!
  
• Don’t expect the best room that the hotel has to offer. Sometimes, hotels give Priceline customers less-desirable rooms. Priceline denies this, but there are many common complaints to this effect.
  
• You cannot make any cancellations or other changes once your bid is accepted and your credit card is charged.
  
• The ‘Winning Bids’ tab on the Priceline website or BiddingForTravel.com will give you ideas of how/what to bid.
  
• You can use sites such as Orbitz, Priceline, or Kayak to bid on airplane tickets.
  
• For group bookings, try Priceline’s reverse bidding service, where you specify what city/dates/number of people you want to book, and Priceline gives this info to hotel managers, who come back with their best offers for you. Even if you do not go with one of these bids, the service is still free.
  
  The bottom line? Don’t be afraid to shop around and do internet research before committing yourself to anything. It's summertime and people are looking to GO. Before you join the hordes at the beach, consider going somewhere unique and check out any deals that might be available. Then pack your bags and get ready to relax and have some fun!

See the attached articles below for resources and advice on how to use discount sites.

Things to keep in mind... When checking out Hotwire, bid lower than Hotwire. When booking a trip, consider having a Google map open as well as Tripadvisor and Hotwire/Priceline open at the same time to ensure you are booking in the right location.

http://www.nytimes.com/2009/01/13/business/13road.html
http://buzzmodo.typepad.com/buzznovation/2006/06/business_intell.html
http://current.newsweek.com/budgettravel/2009/02/priceline_is_bloggin.html (my favorite)
http://www.concierge.com/cntraveler/blogs/perrinpost/2008/11/super-hotel-dea.html

Managing Credit

Whether or not you have debt, it’s still important to manage your credit. If you have debt, you certainly don’t want any more, and if you are debt-free, you definitely want to remain that way if at all possible. Back in the day it was simple to manage your credit. There were no such things as credit cards—the proprietor of the town store knew who you were and gave you credit off of your good name. Today, your name won’t get you credit, but it will get you a credit card with a credit limit. The temptation always exists to buy on your credit card and pay later—after your paycheck, at the end of the month, whenever. Don’t fall into the plastic trap!

Tips for managing your credit:

• Have ONE card. I repeat: have one card. Having more than one card can lead to purchases you won’t remember when your bill comes, or to spending too much money or trying to hide purchases. Having a second credit card that you don’t use to build your credit is a myth. If a card sits unused for too long, sometimes credit card companies will cancel it. This isn’t good for your credit, the same as not paying bills on time isn’t good for your credit.
  
• Pay off each month. Strive to pay off the full amount each month. If you can’t, pay off as much as you can, then spend less the next month so you can get caught up and pay month by month, instead of letting interest and unpaid bills pile up each month.
  
• Read the fine print. Don’t get scammed into something that seems like a good deal with low interest rates but after the first few months turns into high interest rates and other charges. Credit card companies are not necessarily your friend—don’t fall into the trap of believing that they are.
  
• Pay ON TIME. Don’t let late fees get you, because they can cripple your payments and finances.
  
• Avoid cash advances. Payday lenders prey on people who have no other options—if you have another option, do not do a cash advance. Interest rates on cash advances are often ridiculous because the people who need them need money right now so badly that they will take anything. Then, when your paycheck comes, you lose a significant chunk of change in interest payments.
  
• Watch limits. Don’t go over your spending limit. Period.
  
• Review your statements. Make sure someone else isn’t using your card without your knowledge, even a partner or child. Make sure you know where your money is going.
  

The bottom line: responsible behavior is the key to having a credit card. Don’t be afraid, but be aware of what’s out there so you can make informed decisions regarding your credit and spending habits.

Finding Your Way Out of Debt, One Step at a Time

Sometimes, people trick themselves into thinking that getting out of debt is easy. All I have to do is pay off my $300 credit card bill, you think. You forget that this month you have to pay your water bill, cable bill, electricity bill. Maybe it is summer and the weather is scorching hot and muggy (sound familiar?) and the air conditioning has been on more than usual. Maybe your son needed new soccer cleats. Maybe you had an unexpected expense pop up. Whatever the case, what previously was something you were going to pay off in total is now something that you can’t afford to pay; this month, you think, I’ll just pay the minimum. NEXT month I’ll pay it all off. Then next month you have a $450 bill, plus whatever is left from this month, plus interest. Uh-oh… what now?

In paying off debt, the thing to remember is that when making money to pay off your debt, you have to make MORE than the debt amount. Debt accumulates interest. This can get expensive. Some things to consider when dealing with debt:

• There is no ‘magic bullet’ that, when shot, will annihilate all of your debt. You got yourself into debt—you are responsible for getting yourself out of debt.
  
• Set a clear intention. You can’t keep putting debt off. Your intention must be focused: this month, I am going to pay off $250 extra on my college loans. Set a goal and stick to it.
  
• Establish a budget. You will not be able to continue living frivolously if you want to pay off your debt. You’re going to have to create a budget… Think about it. A budget doesn’t have to be the end of comfortable life as you know it. Start by seeing what you can eliminate—eat out two times less a month, and put that money towards paying off debt. Instead of getting your hair done every month, go every other month. Instead of hitting the outlet malls with your girlfriends for a shopping spree, go out and hear a live band at a local park for free. Encourage your husband to spend less on pricy electronic gadgets that you don’t really need. Put all the money you would be spending but are not towards paying off your debt. Then look at ways to cut costs. Is it cheaper to buy the supermarket brand than another, pricier brand? Will your family even taste the difference? Probably not. Then use the money you’re saving to pay off debt.
  
• Set yourself up for success. If, in your quest for budgeting, you take away everything you enjoy doing, you will be miserable and resentful and you will fail. It doesn’t have to be like that! Start small and work your way up.
  
• Focus on ONE DEBT AT A TIME. Try to eliminate your SMALLEST DEBT FIRST. This way, you will see your success and say “I can do this!!”. Then you can conquer your other, larger debts.
  
• Celebrate your debt-vanquishing victories (without shopping). Spend an afternoon at the park with your family. Treat yourself to homemade banana splits. Anything fun you can do without spending loads of money is great.

The Savings Game

Although the past decade or two has been marked with a frivolous “I’ll get to it later” attitude towards savings, the current economy has been causing people to take a step back and realize that future financial security is a necessity. In fact, there are many, many excellent reasons to save, including the following:

• Retirement—who wants to have to go back to work after realizing they didn’t save enough to retire? No one. Take steps NOW to ensure that you can enjoy your retirement and plan today for things you want to do then, like traveling, visiting grandkids, etc.
  
• Big ticket items—back fifty or sixty years ago, the attitude was “I save for it… Then I buy it.” Until recently, our attitude has been more “I buy it… Then I pay for it.” This is the wrong attitude to have. Buying everything on credit is not the soundest financial practice. Save up money to buy something, and then you won’t have to take out as big of a loan. And the more you pay upfront, the less interest you pay on a loan. Let’s face it—wouldn’t you rather save the money, pay for something in full, and skip having a loan and interest payments?
  
• Rainy day fund—you can never see the future, but you can prepare for it. Your goal should be to have 3-6 months worth of spending money saved up. However, an ideal situation would be to save and pay off your debt. That way, you can pay off what you owe and provide for your future. If something unexpected happens, you’ll have a little tucked away just in case.
  
• Education—whether it’s for you, your partner, or your children or grandchildren, education is an excellent savings goal. You don’t want your child to get to their senior year of high school and realize that because you put off savings, they are going to be saddled with mountains of debt for years to come.
  
• New house—there are many reasons why you might want to move: new job, new town, new state. The more you have saved, the less you have to borrow.
  
• FUN & FREEDOM!!! There may come a time when you want to buy yourself something nice, or take a second honeymoon, or buy a motorcycle. Who knows! Whatever the case, having the money to treat yourself will make you a whole lot happy and make your dream more realizable. And having money in the bank makes you free… Free to choose what you want to do, where you want to go, what you want to leave your children once you’re gone. Saving is worth it. You want to put together a plan for your future—and then you want to make it happen. Saving money can help you do this.
  
  Some savings tips:
  
• Start small
  
• Get a free 401(k) match—sometimes, employers will match what you put in your 401(k) (up to a certain amount of money). Take advantage of this! One day you will want to retire (although that day may be tomorrow, saving up for it will make it more possible!)
  
• Replace old (bad) habits with new ones—as financial advisors, we cannot say this enough. Stop buying expensive coffee every day and instead buy quality grounds and make yourself a cup at home. Have manicure parties with your girlfriends instead of getting manicures done every week. Don’t buy something on credit; buy it when you have the money to pay for it in full.
  
• No automatic deductions—with automatic deductions, you don’t see how much money you are spending because it magically gets taken out of your account each month. Be constantly aware of your spending habits. Don’t spend more than you mean (or need) to.
  
• Friend challenge—challenge a friend to a savings contest. Go out for ice cream to celebrate, or do something that both of you enjoy. This way, everyone wins.
  
  Savings doesn’t have to be hard. But money will not magically appear in your bank account unless YOU put it there. Begin today to have a happy, secure, and free tomorrow.

Stepping into Financial Leadership

You must be the one to make the decision and take charge of your financial life and well-being because no one else is going to do it for you. However, this doesn’t have to be a scary process! Follow the steps below to ‘feed the pig’ and ensure that you will have a healthy and happy financial life well into the future.

1. Bust the fairy tale myth: no one will come to take care of you. You’re going to have to take the initiative and do this on your own. There is no fairy godmother to lead along the path of financial success.

2. Be willing to learn: in a recent survey of the financial literacy of high school schoolers, 60% of high school seniors failed a basic economic literacy test. Don’t let this happen to you or you family! Take charge of your life and make saving a habit. Start with your children when they’re young so saving will be a life-long behavior for them.

3. Delegate: think about hiring an advisor. However, keep in mind that your advisor should educate YOU. If you have any questions or concerns, you should never feel afraid or intimidated to share them with your advisor. If you are, then you are not with the right advisor. Don’t be afraid to shop around for an advisor. An advisor should be someone you’re comfortable with, not someone who makes you feel scared to ask for advice. Also, make sure the advisor is concerned first and foremost with your goals. You are the most important person in the advisor/advisee relationship. Don’t ever doubt that!

4. Lead by example: be a financial leader, not a follower. Don’t be afraid to share what you have learned with your friends and family. Being a financial leader will not happen overnight, but once others start to notice your helpful financial habits, they will be able to follow your example.

5. Be on PURPOSE: you have to know your financial goal and want to achieve it.

6. Never say never: set your sights HIGH and keep working; don’t worry about a super-strict timeline.

7. Make savings a habit: make small changes. Saving is like dieting—take it slow!! Pick a dollar amount per week that you want to save and then stick with it.

Consider other ways to save money, like drinking from the tap instead of paying for bottled water all the time. See my previous blogs for more savings tips.

And remember… Success breeds success. Start small and see where you end up!

Widening Your Financial Perspective

When thinking about prosperity, it is important not to be too narrow-minded. This will only limit your success and will not allow you to reach your full prosperity potential.

Take a look at the four cornerstones of prosperity:

1. Clarity of intention: you must actively WANT prosperity. Prosperity must be an actualized goal… It cannot be something that you are half-hearted about obtaining.

2. Conscious choice: once you have clarified your intention (to be prosperous!) you must make a conscious choice to invest, NOT spend your money. In order to be prosperous, you must have money available to invest. It may seem simple, but it’s very important to monitor your spending and contribute your money towards your investments and your future prosperity.

3. Sustainability: your money will outlive you. What do you want to leave to your dependants—debt or prosperity? Investing now to become prosperous later could help sustain your family after you are gone. Also important in today’s world is the sustainability of the economy. We must begin to take care of the Earth so that our descendants will have an Earth to live on. What we do today (with our money and with our world) will impact future generations. It is time to begin making wise and healthy choices, and to stop hurting both our financial pocketbooks and our environment.

4. Enoughness: when is there enough? If there’s never an end to our quest for ‘more,’ is there peace? This is not to say that you should stop trying to further yourself and better your circumstances, but there has to be a point where you can relax and be happy. If you never achieve this point, you will always be frustrated and living with a focus only on the future instead of living in the moment and enjoying yourself.

Some of us are trading our life energy for money!! It’s important to take a step back and ask yourself ‘Do I feel good about who I am?’. The answer may not always be what we want it to be, and in that case it is important to take a step back and widen our perspective from just accumulating money—look also at prosperity and happiness. What’s the point in having piles of money if you’re not enjoying your life and are always striving to get more money? Take your time. Enjoy yourself, your life, and your family.

Be a Fox!

There are many different reactions to today’s economy. Three of the most common are listed below (see if you can categorize yourself):

• The ostrich: preserve the status quo and hope for the best
• The bull in the china shop: blindly cut expenses across the board
• The fox: use the downturn to make your business more effective, so you are in better position to move quickly when the economy rebounds.
  
  Ideally, who should you be? The fox! If, instead of resisting the economy and hoping the recession ends soon or panicking and slashing expenses, we all tried to use the recession to make us better business owners and businesspeople, we would all come out of this downturn positioned to get ahead of our competitors.
  
  It is important not to fight the change. Instead, trust the change. Financial markets move in cycles, just like the earth, the moon and the seasons. This is the truth. If you resist truth, you’ll never feel prosperity. Pain fuels change, and truthfully both we and our country have needed to change for some time now. Given this recession, we can look at our past behaviors, see what may have lead to the current state of the economy, and learn to avoid these types of behavior in the future.