Sometimes people buy life insurance before performing a financial needs analysis. they might choose an amount that seems comfortable, without actually taking into account all the potential expenses their families might face in the event of an untimely death. If they did make an objective assessment of the possible economic consequences, they would be doing what is called a financial needs analysis.
In order to determine how much cash is needed following the death fo a spouse, take a look at these potential cash needs and assign a dollar amount to each:
1. IMMEDIATE MONEY FUND. This includes the total cost of possible medical and hospital expenses, outstanding bills, burial costs, and attorney/executor fees.
2. DEBT LIQUIDATION. Your debt may be in the form of credit card bills, school and auto loans, unpaid notes, outstanding bills, etc.
3. EMERGENCY FUND. Unexpected bills not readily payable from current income could included major home and car repairs, or even medical emergencies.
4. MORTGAGE/RENT PAYMENT FUND. How much would you need to pay off your mortgage or provide for at least ten years' house or apartment rent should one spouse die?
5. CHILD/HOME CARE FUND. Expenses may be created as a result of the death of a spouse who had been performing child and/or home care duties; be sure to estimate the cost of hired help needed to substitute your spouse's duties.
6. EDUCATION FUND. Be sure to include the cost of funding a four year undergraduate education or comparable vocational training for your children.
The steps noted above are a simple way for a family to figure out how much life insurance is really needed. Circumstances vary from person to person and from family to family. Analyzing your financial needs in detail is an important step toward determining the right coverage for you and your family.
We here at JM GetMoore Insurance & Financial Services have some ideas regarding this subject. Contact us at (956) 928-1811 for more information.
Tuesday, June 2, 2009
Friday, May 8, 2009
Business Tips For Small Business Owners
We have worked with small business owners in the McAllen area for over 10 years. We see many trends that are having dramatic impacts on the way small business owners are rethinking their business retirement plans. In a series of articles we are going to discuss these trends, their impact and some possible solutions.
Trend:
Business owners looses a key employee after 30 years of service.
Impact:
Sudden loss of income for the business
Owner has to re-think his retirement
Owner has to suddenly cancel the long-awaited vacation
Owner's valuable time loss for re-hiring and re-training
Confusion and loss of production from other employees
Increased stress among yourself, your family and other
employees.
Possibilities:
Sell the business
Bring in family members to help out
Re-organize and re-structure with under-qualified existing
employees
Solution:
Key Employee Insurance
Most small business owners do not realize the financial impact that the sudden loss or disability of a key employee can have on their business. For more information on how to protect your business contact Jeff Moore at (956) 928-1811 or jeff@getmooreinsurance.com
Tuesday, April 21, 2009
The Benefit of Targeting an Industry Niche
Targeting an industry niche is a very effective, yet underutilized, marketing strategy in any service industry. Let’s start with my definition of targeting an industry niche: Targeting an industry niche is positioning yourself as an expert in a target industry as it relates to your products or services, and then leveraging that expertise and reputation with appropriate marketing techniques so people in the target industry will think of you first –and refer you first. Marketing is all the activity that makes the sale possible. Marketing makes people aware of your product or service and puts them in a position to meet you so the sale becomes possible. Marketing is what gets you to the client’s door in the best possible light.
Remember the often repeated statement ‘Birds of a feather flock together.’ People associate and communicate with other people like themselves. For instance, people in the same type of business or profession join together in an association. The advantage is that by segmenting your marketing into niches in this way, you can reach out to prospects that associate and communicate with each other.
There are at least three compelling reasons for targeting an industry niche:
1. Word of mouth is easier to create because people within industry niches have specific formal and informal ways of communicating with other – conferences, newsletters, trade publications, industry associations, etc.
2. Referrals are easier to obtain. People within industries usually have many friends and colleagues to whom they can refer you. When they know you are concentrating your efforts on their industry, they are usually more willing to help you extend your influence.
3. Cold calling within an industry niche is usually a much warmer proposition. Once your reputation is established, there’s a good chance your prospect may have heard of you. If she doesn’t know you, it’s still easier to warm up the call because you know her challenges, speak her language, are an expert in her industry and you truly have more value to bring to her than someone with no specialty.
Practicing these principles of niche marketing is like trying to move into a different lane while waiting at a traffic light. If you begin to inch over, trying to squeeze your car into the small space between neighboring vehicles, you may not get in. However, if you just catch the eye of the driver of the car you wish to cut in front of, he or she will almost always wave you in. Establish some recognition, and you’ll be let in. The same is true in sales. If people have heard of you, even if they’re not sure from where they heard it, you can get past the gatekeeper and your voice mail messages get returned. A widespread reputation overcomes barriers.
Targeting an industry niche is all about added value. When you target an industry niche, both your perceived and actual value increases. When you get to know an industry, you can bring more value to the relationship with a new prospect more quickly than if you know little about his or her industry. When you target an industry niche, reputation is everything, so you need to go the extra mile. And you can’t burn bridges, because word-of-mouth spreads faster within specific industries. Every transaction, every encounter, has to be handled with the utmost professionalism. Within the niche, everyone is always a prospect, at least in the sense of helping you build your reputation. If a company or individual doesn’t fit your profile, you still must maintain an attitude of service. Even people in your target industry who aren’t prospects should be treated with professionalism and dignity.
There is no better time to re-evaluate your current situation than the present. Jeff Moore is president of JM GetMoore Insurance & Financial Services L.L.C. He can be reached at
(956) 928-1811 or by e-mail: jeff@getmooreinsurance.com. Don't forget to visit his website http://www.getmooreinsurance.com for further information as well as read some insightful articles.
Remember the often repeated statement ‘Birds of a feather flock together.’ People associate and communicate with other people like themselves. For instance, people in the same type of business or profession join together in an association. The advantage is that by segmenting your marketing into niches in this way, you can reach out to prospects that associate and communicate with each other.
There are at least three compelling reasons for targeting an industry niche:
1. Word of mouth is easier to create because people within industry niches have specific formal and informal ways of communicating with other – conferences, newsletters, trade publications, industry associations, etc.
2. Referrals are easier to obtain. People within industries usually have many friends and colleagues to whom they can refer you. When they know you are concentrating your efforts on their industry, they are usually more willing to help you extend your influence.
3. Cold calling within an industry niche is usually a much warmer proposition. Once your reputation is established, there’s a good chance your prospect may have heard of you. If she doesn’t know you, it’s still easier to warm up the call because you know her challenges, speak her language, are an expert in her industry and you truly have more value to bring to her than someone with no specialty.
Practicing these principles of niche marketing is like trying to move into a different lane while waiting at a traffic light. If you begin to inch over, trying to squeeze your car into the small space between neighboring vehicles, you may not get in. However, if you just catch the eye of the driver of the car you wish to cut in front of, he or she will almost always wave you in. Establish some recognition, and you’ll be let in. The same is true in sales. If people have heard of you, even if they’re not sure from where they heard it, you can get past the gatekeeper and your voice mail messages get returned. A widespread reputation overcomes barriers.
Targeting an industry niche is all about added value. When you target an industry niche, both your perceived and actual value increases. When you get to know an industry, you can bring more value to the relationship with a new prospect more quickly than if you know little about his or her industry. When you target an industry niche, reputation is everything, so you need to go the extra mile. And you can’t burn bridges, because word-of-mouth spreads faster within specific industries. Every transaction, every encounter, has to be handled with the utmost professionalism. Within the niche, everyone is always a prospect, at least in the sense of helping you build your reputation. If a company or individual doesn’t fit your profile, you still must maintain an attitude of service. Even people in your target industry who aren’t prospects should be treated with professionalism and dignity.
There is no better time to re-evaluate your current situation than the present. Jeff Moore is president of JM GetMoore Insurance & Financial Services L.L.C. He can be reached at
(956) 928-1811 or by e-mail: jeff@getmooreinsurance.com. Don't forget to visit his website http://www.getmooreinsurance.com for further information as well as read some insightful articles.
Wednesday, April 15, 2009
Salary Continuation Plans For Business Owners
A business owner may be confronted with a major problem if either they or one of their key people ever become disabled. Most company group disability plans only replace 60% of the covered person’s salary (and usually up to a maximum of $5,000) and do not include bonus payments. Not only would losing 40% or more of one’s income be a crisis, but also many business owners pay themselves a salary and then supplement it with quarterly or yearly bonuses based on company profits. These supplemental payments, as well as salary above your group limits, are not included under group disability plans.
Occasionally, some business owners feel that if they were disabled, the business could just continue to pay their salary or pass on profit payments when needed. However, this poses two problems. First, few businesses can afford to pay two people for the same job. And even if they could, the IRS says that for payments to be considered salary, they must be made for providing services for the business. Otherwise, payments must be considered dividends and dividends are not tax deductible. That’s a problem!
Is there a better way? Yes! The IRS allows a business to establish a wage continuation plan for the benefit of the owner and if desired, key people whom the owner wants to include. These people can be chosen at will, and can be added or deleted, but the plan must be established before a disability occurs. The plan is initiated by creating a company resolution and future benefit payments can then be regarded as salary – not dividends.
Interested in more details…possibly a sample resolution to review? Disability is a serious matter. And having a resolution in place is an easy remedy to a serious problem.
Occasionally, some business owners feel that if they were disabled, the business could just continue to pay their salary or pass on profit payments when needed. However, this poses two problems. First, few businesses can afford to pay two people for the same job. And even if they could, the IRS says that for payments to be considered salary, they must be made for providing services for the business. Otherwise, payments must be considered dividends and dividends are not tax deductible. That’s a problem!
Is there a better way? Yes! The IRS allows a business to establish a wage continuation plan for the benefit of the owner and if desired, key people whom the owner wants to include. These people can be chosen at will, and can be added or deleted, but the plan must be established before a disability occurs. The plan is initiated by creating a company resolution and future benefit payments can then be regarded as salary – not dividends.
Interested in more details…possibly a sample resolution to review? Disability is a serious matter. And having a resolution in place is an easy remedy to a serious problem.
Friday, April 3, 2009
6 Ideas That Will Make 2009 a Record Year
Are you looking for some inspiration for your business plan? Listed below are seven action items that will help you make 2009 a record year…
1) Make a Commitment to Business Planning
If you want to have a record year in 2009, you should make a commitment to business planning (an ongoing activity) rather than just writing a business plan (a one-time event). Business planning is a process that consists of developing, monitoring and adjusting a strategy for your business. When you enter into business planning mode, it’s like going up in a helicopter and looking down on your business. This high above view allows you to see the forest down below. Most people spend the vast majority of their time working on the tactical aspects of their business and not the strategic. Here’s a tip: make time for planning by building strategy sessions into your calendar.
2) Organize Your Team around Functions
Your business has certain core functions that must be performed (marketing, portfolio analysis, client service, etc.). When you organize around function, you are basically assigning each function to one or more individuals. This is the best way to achieve true togetherness on a team. The alternative (which is the model used by many people) is to organize around products or services (managed money, retirement plans, insurance, etc.). The biggest flaw with this model is that the people who make up the team are responsible for performing all of the core functions; this cannot be done. The end result is often a group of people who are operating their own business (ineffectively) instead of belonging to a single, cohesive practice.
3) Make Room to Grow
If you want your business to grow faster, it must have room to grow. In order to grow your business, you need to have time to market. You must also have time to process the new clients and service the ones you have. Here’s a tip: market data is more important than product data. Marketing, which is the engine that drives your business, is a function that requires you to be proactive. You create room to grow by minimizing the barriers that are keeping your business from achieving its full potential. This includes having too many clients, trying to be all things to all people, and asking the wrong people to perform certain functions. The bottom line is that you have to have some “running room” if you want to increase the growth rate of your revenue line.
4) Develop a Professional Brochure
If you want to be successful in attracting new clients, you need to position yourself as someone who is serious about serving your ideal market. The best way to do this is to invest in a professional brochure for your business. Once you have developed your brochure, the first thing you should do is get several copies into the hands of your key clients and centers of influence – anyone who is in a position to refer you the types of clients you should be working with.
5) Implement a Seminar Campaign
After all these years, seminars are still one of the most effective ways to attract new business. Keeping this in mind, you have to be creative if you want to stand out from the crowd. For starters, try calling them something else like workshops, symposiums, briefings, etc. Link your topics to target markets that you are trying to attract. Finally, select unique venues. Rather than using the same old hotel, try a local art gallery, museum or historical property. Here’s a tip: hold quarterly seminars and invite appropriate clients and prospects. Mail out wedding style invitations and use a caller to follow up. This will be much easier and more effective than straight cold calling.
6) Implement a “Four Seasons” Client Appreciation Campaign
Many people view their marketing seminars and client appreciation events as one in the same. You will achieve better results (and avoid potential conflicts of interest) if you keep them separate. A client appreciation event should be just that. This should be an event that you set up as a way to appreciate those who appreciate you. You should appreciate and thank your clients for their loyalty and trust in doing business with you. Make these appreciation events annual traditions and try, if possible, to implement an event during each of the four seasons: Winter, Spring, Summer, Autumn. Match client invitation list to event type and encourage clients to bring friends and family.
Remember that it takes money to make money. Treat your business like a real business. If you want your business to grow faster you should plow some of your profits back into making it grow. There is probably no better investment you can make than to fund the future growth of your own business. If you don’t believe that, it may be time to retire or embark on a new career.
There is no better time to re-evaluate your current situation than the present. Jeff Moore is president of JM GetMoore Insurance & Financial Services L.L.C. He can be reached at (956) 928-1811 or by e-mail: jeff@getmooreinsurance.com
1) Make a Commitment to Business Planning
If you want to have a record year in 2009, you should make a commitment to business planning (an ongoing activity) rather than just writing a business plan (a one-time event). Business planning is a process that consists of developing, monitoring and adjusting a strategy for your business. When you enter into business planning mode, it’s like going up in a helicopter and looking down on your business. This high above view allows you to see the forest down below. Most people spend the vast majority of their time working on the tactical aspects of their business and not the strategic. Here’s a tip: make time for planning by building strategy sessions into your calendar.
2) Organize Your Team around Functions
Your business has certain core functions that must be performed (marketing, portfolio analysis, client service, etc.). When you organize around function, you are basically assigning each function to one or more individuals. This is the best way to achieve true togetherness on a team. The alternative (which is the model used by many people) is to organize around products or services (managed money, retirement plans, insurance, etc.). The biggest flaw with this model is that the people who make up the team are responsible for performing all of the core functions; this cannot be done. The end result is often a group of people who are operating their own business (ineffectively) instead of belonging to a single, cohesive practice.
3) Make Room to Grow
If you want your business to grow faster, it must have room to grow. In order to grow your business, you need to have time to market. You must also have time to process the new clients and service the ones you have. Here’s a tip: market data is more important than product data. Marketing, which is the engine that drives your business, is a function that requires you to be proactive. You create room to grow by minimizing the barriers that are keeping your business from achieving its full potential. This includes having too many clients, trying to be all things to all people, and asking the wrong people to perform certain functions. The bottom line is that you have to have some “running room” if you want to increase the growth rate of your revenue line.
4) Develop a Professional Brochure
If you want to be successful in attracting new clients, you need to position yourself as someone who is serious about serving your ideal market. The best way to do this is to invest in a professional brochure for your business. Once you have developed your brochure, the first thing you should do is get several copies into the hands of your key clients and centers of influence – anyone who is in a position to refer you the types of clients you should be working with.
5) Implement a Seminar Campaign
After all these years, seminars are still one of the most effective ways to attract new business. Keeping this in mind, you have to be creative if you want to stand out from the crowd. For starters, try calling them something else like workshops, symposiums, briefings, etc. Link your topics to target markets that you are trying to attract. Finally, select unique venues. Rather than using the same old hotel, try a local art gallery, museum or historical property. Here’s a tip: hold quarterly seminars and invite appropriate clients and prospects. Mail out wedding style invitations and use a caller to follow up. This will be much easier and more effective than straight cold calling.
6) Implement a “Four Seasons” Client Appreciation Campaign
Many people view their marketing seminars and client appreciation events as one in the same. You will achieve better results (and avoid potential conflicts of interest) if you keep them separate. A client appreciation event should be just that. This should be an event that you set up as a way to appreciate those who appreciate you. You should appreciate and thank your clients for their loyalty and trust in doing business with you. Make these appreciation events annual traditions and try, if possible, to implement an event during each of the four seasons: Winter, Spring, Summer, Autumn. Match client invitation list to event type and encourage clients to bring friends and family.
Remember that it takes money to make money. Treat your business like a real business. If you want your business to grow faster you should plow some of your profits back into making it grow. There is probably no better investment you can make than to fund the future growth of your own business. If you don’t believe that, it may be time to retire or embark on a new career.
There is no better time to re-evaluate your current situation than the present. Jeff Moore is president of JM GetMoore Insurance & Financial Services L.L.C. He can be reached at (956) 928-1811 or by e-mail: jeff@getmooreinsurance.com
Tuesday, March 31, 2009
Survival of the Fittest
The survival of the fittest is the ageless law of nature. But, the fittest are rarely the strong.
The fittest are those endowed with the qualifications for adaptation,
the ability to accept the inevitable and conform to the unavoidable
and to harmonize with existing or changing conditions.
Dave E. Smalley
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