May 30, 2008
Years ago, before I ever entered the field of marketing, I saw one of the greatest sales presentations I have ever seen, only I, and most of the 200 plus people in the auditorium weren’t aware that’s what was happening.
And it worked like a charm!
In fact, what made it most effective was that we weren’t really aware that we were being sold to. That in fact we were the targets of a carefully planned and executed marketing campaign that worked mainly because of that fact.
Since that time, I have used the technique myself in many different disguises and in more than one medium, but the marketing technique remains relatively constant.
In mail order marketing, it used to be called the two-step technique. My wife has another, more descriptive, name for it, but we’ll save that for later.
Here’s how it went down. It was the late 80’s, and I had completed 13 years of active duty in the army and was in the Texas Army National Guard, working full time as a federal purchasing agent at Camp Mabry in Austin, Texas. Periodically, the powers that be would hold what were referred to as “Town Meetings”. All the offices would leave someone to answer the phones, and all the employees would meet for question and answer periods, procedure updates, or sometimes, informational briefings. When you got everybody in the room, there were a couple of hundred or more.
One day, a Town Meeting was held, and we were all told we were going to receive a briefing on personal safety. A professionally dressed lady was presented to us, and she gave an excellent, humorous yet fact-filled presentation on defending yourself, or better yet, avoiding placing yourself in dangerous situations. She covered many means of self defense and ways you could fight off or escape from an attacker. She gave special attention to the situations in which a woman might be accosted while shopping or on her way to her car, for example.
The presentation was very valuable, and I saw several people even jotting down her recommendations and cautions.
During a question and answer period that followed, one of the women present asked the lady where some of the items she had mentioned, and shown, during the presentation, such as Mace or pepper spray, could be acquired.
Funny she should ask.
You guessed it. As it happened, the lady represented a company which sold those types of items. She had some free handouts, and she had a table with samples of various self defense items on a table in the back, and a catalog for those who wished to take it home and look at it. She was prepared to take orders for things she did not have with her.
Before the last person left the building, she had sold almost everything she had brought, and had taken orders for several hundred dollars more.
My wife calls it “giving something away”, in order to make a sale.
As I stated above, it has long been known as the “two step” method. In the heyday of mail order, a free report was offered, and, when ordered, arrived with informational material on other, similar items. If the person bought from that presentation, they were offered more items. This procedure had two valuable results. It gave the marketer a growing list of people who responded to that type of presentation and were willing to purchase those sorts of items, and it helped establish a trust relationship between buyer and seller.
I can wave the world’s greatest product around all day, and offer it at reduced rates, but I will make many more sales if I am waving it in front of people who are interested and motivated to buy that sort of product, and…in front of people who already trust me!
Sometimes it is easier to lead the customer to choose the product than to sell the product to the customer.
The author is retired from the Army after 21 years of service. He has worked as an accountant, purchasing agent, optical lab manager, restaurant manager, instructor and long-haul, over-the-road truck driver. He has been a member of Mensa for several years, and has written and published poetry, essays, and articles on various subjects for the last 40 years. He has been an active internet marketer since 2000, and now makes his living online. He has blogs on the subjects of Internet Business and Marketing, Health and Weight Loss, and Real Estate Investing.
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May 16, 2008
Subliminal persuasion? It is simply influencing people at a level below their conscious recognition. Many people don’t even realize they are being influenced by a smile, making even that a subliminal technique. Here are two more subtle methods.
Subliminal Persuasion Using Inflection
It is easy to assume that a sentence like “I can’t promise you that price.” has only one meaning. In reality, though, inflection provides much of the actual meaning. Look at the each of the sentences below, each with a different word emphasized, and followed by the implied meaning.
I can’t promise you that price. (But maybe someone can.)
I CAN’T promise you that price. (There’s no way.)
I can’t PROMISE you that price. (But maybe you’ll get it.)
I can’t promise YOU that price. (But I can promise someone else.)
I can’t promise you THAT price. (But maybe a good price.)
I can’t promise you that PRICE. (But I can promise something.)
The meaning of our statements is determined by which words we emphasize, and it is a subtle process. If you can’t promise him that price, you can tell him “I can’t promise you that PRICE,” and he may still feel good about the situation, especially if you immediately follow with what you can promise him. You probably know what you want to say. Understanding the subtle and often subliminal power of inflection will mean you actually say it.
Subliminal Persuasion Using Their Own Words
Restate what a person has said they want, and then show them how you can give them that. We all need to have some internal consistency, so we don’t like to act against what we say. This is why, as long as you have what they need, this technique works well. For an example, we’ll suppose you are selling a prospect a vacation.
After listening to what they want, you find something that fits their needs, and then say, “If I remember right, you said you wanted a warm beach, under $2,000 for the week, and with nearby nightlife. I think we’re in luck. Both of the packages we just looked at fit your criteria, so do you like Cancun or the Bahamas better?”
It is tough for someone to say they are not interested when you just found exactly what they said they wanted, and reminded them of their words. They probably won’t even notice that you are using their exact words. They’ll just feel uncomfortable contradicting what they said, and find it easier to agree. That’s subliminal persuasion.
Steve Gillman has been hunting down obscure knowledge and useful secrets for years. Learn more subliminal persuasion techniques, and get a free gift at: The Secret Information Site (http://www.TheSecretInformationSite.com)
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May 14, 2008
Imagine an office without a desk, or lights, a computer, or even something as simple as a chair. When the architects and designers started planning a building or office space they knew they would have to make concessions for these items during each of the building activities. As marketers, we take part in many activities, much like a builder or designer does.
Of these activities, there is one that precludes each of these; the annual planning and budgeting process. One part of planning often gets left out though, measuring the effectiveness of the activities we plan. Yet plans without metrics are like offices without chairs, conference rooms without tables, or buildings without a foundation. Parts of each exist, but there is a major component missing.
Recently surveys have concluded that 55% of business to business marketing executives face the challenge of measuring marketing’s effectiveness. A recent survey conducted by Unica made this statement: “However, survey respondents also said they faced numerous challenges, chief among them measuring marketing effectiveness, which was cited by 55% of respondents.” It was also stated that many executives don’t believe marketing is measurable. And 63% of them don’t consider marketing to be measurable. So it should be no surprise to learn that as many as 57% of marketing plans overlook metrics and that plans are more about counting activities rather than measuring the impact on business outcomes as was determined the fifth Business Readiness Survey conducted by VisionEdge Marketing.
Can we measure marketing’s effectiveness? Does it really make a difference?
It certainly does for many companies. One company in particular, VCON, found incorporating a metrics framework into their planning process to be extremely valuable. Founded in 1994, VCON develops and manufactures collaborative communication solutions that include videoconferencing and audio conferencing products. VCON’s entire portfolio is integrated together with a suite of management systems and development tools, providing a unique and fully integrated conferencing experience for the user. The company relies on an indirect channel to sell their solutions worldwide. For the past decade, VCON has consistently been the first to market with innovative products and technologies, both in the conferencing market and in the solutions needed to manage and deploy conferencing systems.
The marketing team realized that securing a larger marketing budget would require taking a more metrics-related approach as a means to demonstrate the marketing organization’s contribution to the company. So when they realized the need for a metrics-based approach, they hired VisionEdge Marketing to help them develop the right set of metrics. VCON turned to an outside resource to help create a framework for their plan. They chose VisionEdge Marketing because the company’s metrics expertise and a model ties marketing metrics to the goals of the company.
Laura Shay, VCON’s Global Product Marketing Manager, wanted an approach that went beyond tracking results from a variety of marketing activities, such as metrics associated with web site visits, click-throughs, and participants at a webinar. Rather she wanted a way to connect the marketing initiatives to the company’s market share, partner development, and up-sell objectives. “We had a good idea of the adoption process for our technology and we were monitoring dozens of activities and outcomes. What we didn’t know was whether these were the right things to be monitoring and how to tie activity tracking to the success of our marketing objectives and strategies,” added Laura.
VCON’s limited marketing resources were overwhelmed with the number of things that were possible to track. The challenge was getting the team out of the weeds of tracking various marcom activities and more focused on identifying metrics that would really indicate whether the marketing initiatives were moving the needle for the business.
Prior to the metrics development and framework session, VisionEdge Marketing examined the metrics currently being used by the company and the company’s business objectives for the coming year. “This preparatory stage was very helpful,” commented Laura. “It enabled us to start thinking about tying our marketing initiatives to very specific business outcomes such as market share, order value, and repeat business.” The business goals were used as a framework for the plan. By understanding the specific business outcomes, the session could focus on where marketing could make an impact and how to measure this impact. Within a half day or so the marketing department was able to develop a manageable set of metrics. A key part of the process was to clarify what outcomes have real impact on the business.
The metrics focused on two primary areas: The channel’s role in VCON’s success, and a goal of achieving 25% quarter-to-quarter growth from new products across all sales regions. Three metrics were selected: revenue/partner, qualified leads/region, and new products sold vs. previous product sold. Key indicators were defined for each of these and appropriate objectives and strategies were then incorporated into the annual plan. A side benefit was that the planning session was far more productive. “We didn’t get bogged down in discussing the nuances of each region and why tracking certain activities would or wouldn’t work. We could keep our eye on the larger picture and each region could address its individual differences,” added Laura.
The process enabled the VCON team to achieve two important outcomes:
1. A set of key metrics that crossed markets and regions
2. A plan and budget the management team could evaluate based on business outcomes
Of course the best outcome was the team was able to deliver a plan and a budget request the management team could relate to. “We were more successful in securing faster approval and a better budget, because the plan very clearly connected the dots between marcom activities and business outcomes,” said Laura.
VCON has learned the importance of a complete marketing plan and have already reaped the benefits by securing a higher marketing budget. They have learned the importance and ability of metrics to measure the effectiveness of marketing to show how their efforts impact business goals.
Since working with VCON, VisionEdge Marketing has continued to educate companies and individuals on the importance of metrics to a marketing plan and communicating marketing’s effectiveness to the company. By using VCON as an example, they are able to show how completing the planning process pays off for the company, as well as the marketing department; just as adding all components to a building, makes it complete.
To learn more about strategic metrics that align marketing with business goals, check out VisionEdge Marketing’s latest book, Measure What Matters by Laura Patterson, President of VisionEdge Marketing.
VisionEdge Marketing is a strategic marketing consulting firm that helps organizations develop metrics-based marketing strategies and processes that create a competitive advantage designed to attract, secure and retain profitable customers to maximize the value of the organization.
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May 10, 2008
Some speakers say, “I could never use humor in my speech; I just don’t feel comfortable with it.” I believe that anyone can use humor and that it is a valuable tool in speaking. Appropriate humor relaxes an audience and makes it feel more comfortable with you as the speaker; humor can bring attention to the point you are making; and humor will help the audience better remember your point. It can break down barriers so that the audience is more receptive to your ideas.
First, let me make it easy for you to use humor. The best and most comfortable place to find humor for a speech is from your own personal experience. Think back on an embarrassing moment that you might have thought not funny at the time. Now that you can laugh at the experience, you understand the old adage “Humor is simply tragedy separated by time and space.” Or think of a conversation that was funny. Remember the punch line and use it in your speech. Probably the least risky use of humor is a cartoon. The cartoon is separate from you and if people don’t laugh, you don’t feel responsible. (Be sure to secure permission to use it.) You’re not trying to be a comedian; you just want to make it easy for people to pay attention and to help them remember your point.
Here are some suggestions on using humor to make your next speech have more impact.
1. Make sure the humor is funny to you. If you don’t laugh or smile at the cartoon, joke, pun, one-liner, story, or other forms of humor, then you certainly cannot expect an audience to do so. A key to using humor is only using humor that makes you laugh or smile.
2. Before using humor in your speech, try it out with small groups of people. Do they seem to enjoy it? Even if your experimental group does not laugh or smile initially, don’t give up on the humor, because the problem might be in the way you are delivering the joke or quip. I often use this line in talking about the importance of listening. “We are
geared to a talk society. Someone said, ‘The only reason we listen is so we can talk next!’” When I first tried that line, people did not smile; but I worked on the timing so that I paused and smiled after “listen” and that seemed to work. I was rushing through the punch line and did not give people time to be prepared for the humorous part. It took practice to get comfortable with the piece of humor. Only use humor in a speech after you are comfortable telling it from memory and have tested it.
3. Make sure the humor relates to the point you are making. Do not use humor that is simply there to make the audience laugh. The humor should tie in with some aspect of your speech. For example, I tell about my experience of getting braces at age 46 and how difficult it was for me to get used to the wires and rubber bands in my mouth. After I tell the story I make the point that you may have not had the braces problem I had, but we all have challenges in communicating well, and what we want to look at today are ways of making it easier for us to be more effective in speaking. The audience enjoys the story but also remembers the point that I’m making. If you don’t tie your humor to your presentation, the audience may like the humor, but will wonder what point you are attempting to make.
4. Begin with something short. A starting point might be to summarize a cartoon and give the caption as your humor. A thought-provoking yet clever line about a point you are making is another way to get started. For example, when I talk about creativity and getting out of your comfort zone, a line I found that worked well was, “Orville Wright did not have a pilot’s license.” In your reading, look for lines that make you smile; consider how they might be used in your next speech. Be careful about launching into a long humorous story–audiences are quick to forgive a single line that may not be funny, but they do not have much patience with a long anecdote that isn’t worth the time. So start out with brief bits of humor.
5. When possible, choose humor that comes from people you interact with. You do not have to worry about people having heard it before, and you will feel more comfortable with what has happened to you. Find such experiences by looking for a humorous line or situation. For example, I was making a bank deposit recently at a drive-in window. When I asked to make a second deposit, the teller said solemnly, “I’m sorry, sir, but you’ll have to go around the bank a second time to make a second deposit.” We both laughed and I may have a line to work into a speech. If you have small children, listen for something they say that might be funny to an audience as well. Art Linkletter made a great living on the notion that “Kids say the darndest things.”
6. Don’t preview by saying, “Let me tell you a funny story.” Let the audience decide for themselves. Look pleasant and smile as you launch into your funny line, but if no one smiles or laughs then just move on as though you meant for it to be serious. This approach takes the pressure off as you relate the humor. Remember you are not a comedian entertaining the audience; you are a serious speaker seeking to help the audience remember and pay attention by using humor as a tool.
Humor is simply another way of making a point with your audience, and it can help you be a more effective speaker. Look at humor as a tool in improving your speech in the manner of attention devices, smooth transitions, and solid structure. Remember, “A smile is a curve that straightens out a lot of things.”
Stephen D. Boyd, Ph.D., CSP, is a professor of speech communication at Northern Kentucky University in Highland Heights, Kentucky. He works with organizations that want to speak and listen more effectively to increase personal and professional performance. He can be reached at 800-727-6520 or visit
http://www.sboyd.com for free articles and resources to improve your communication skills.
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April 30, 2008
This article relates to the Coworkers competency, commonly evaluated in employee satisfaction surveys. It tells the story of a coworker whose performance consistently facilitated effective cooperation, collaboration, and communication between the employees within one organization. While the Team Dynamics competency focuses on relationships within a single group, this competency targets coworker topics spanning the entire organization over multiple work units. This competency investigates your organization’s ability to successfully work in partnership on projects with one another and between groups to reach the common goals of the organization.
This short story, Coworker and Caretaker, is part of AlphaMeasure’s compilation, Tales From the Corporate Frontlines. It illustrates how one coworker’s knowledge, compassion, and dedication to the common goals of her company made getting the job done a joy for her entire work team.
Anonymous Submission
Every workplace has one. The employee who keeps the operation moving, the “go to” person who can always be depended upon to know the answer to any question. The person who always has time to hear your thoughts, and everyone in the office feels comfortable talking to. In short, the exceptional coworker.
Mary Ann retired from our office last week after 40 years of faithful service. She knew every client, sales rep, contact and associate of the company and in particular, her manager. She knew her own job duties completely, and was acquainted with the responsibilities of every other employee in the office.
Mary Ann was not management material, it was said around the office. I don’t believe that statement was true. I think she could have done anything she wished, and quite successfully. But she didn’t want to lead. She seemed quite content to do her part to keep things running smoothly - behind the scenes. She was the office “mom” - the birthday celebration organizer, the office supplies coordinator, the interior decorator. Her work was always finished, flawlessly, and she made herself available to train new employees and help them fit into the office family. Mary Ann put together lunches when coworkers retired or moved on, and always did a major part of the holiday party planning.
Always even-tempered, even under stress, she consistently had a good word for everyone who stopped at her desk. She could be depended on for a dose of common sense and practical wisdom. Whenever a crisis came up, and there was mass panic or chaos in the office, Mary Ann would enter and bring calm to the situation with her mere presence. She’d assess the facts, make a few suggestions, and everyone would begin to get back to reality and set about making things right again. “The Voice of Reason” we called her, and rightly so.
She will be missed. It will be interesting to see how our office gets along without her, and if anyone will move into her position. Any volunteers?
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© 2005 AlphaMeasure, Inc. - All Rights Reserved
This article may be reprinted, provided it is published in its entirety, includes
the author bio information, and all links remain active.
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Measure. Report. Improve your organization with AlphaMeasure employee surveys.
Josh Greenberg is President of AlphaMeasure, Inc.
AlphaMeasure provides organizations of all sizes a powerful web based method for measuring employee satisfaction, determining employee engagement, and increasing employee retention.
Launch your employee engagement survey with AlphaMeasure.
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April 20, 2008
My husband and I recently returned from a trip to Austin, Texas. It was beautiful and refreshing. We also left the kids at home.
The reason I was able to leave the kids behind is because they have ROUTINES and a regular schedule.
Therefore, my close family members could read the 5 page printout of instructions I had prepared because the routines were easy to follow and continue.
You can incorporate routines into your schedule. When I say regularity, I do not mean rigid tight schedules.
Here is an example that may or may not work for you.
1. Go grocery shopping on the same day each week. I recommend going Tuesdays because the beginning and end of the week are usually busy.
2. Designate 2 days a week for laundry. I do not worry about the piles of laundry on any other day except Sunday and Wednesday. That way I don’t stress out about it until the regularly scheduled days.
3. I like to grocery shop Tuesday morning and then come home and cook it all Tuesday afternoon. I buy loads of fresh foods and then I freeze it after my cooking fest!
You can create a time map for yourself by listing all of your responsibilities and then plugging them into hour increments. So for me, a list would include- laundry, cooking, shopping, website editing, exercise, newsletter writing, etc.
Then, I plug all of these responsibilities into some hour of my weekly schedule. I try to make that hour the same every week. It’s easy to remember.
Think of what your responsibilities are-they probably do not change much from week to week- and create routines. You can even call it a “ritual” or “event”. Those words are more celebratory and make it fun.
So my “laundry day parade” on Sundays and Wednesdays is somewhat fun. (I try to spice up my life as much as possible)
What are your ideas?
Rebekah Slatkin is a professional organizer with a website full of information dedicated to getting you organized. Check it out at http://www.best-organizing-products-superstore.com The organizing product reviews and ezine are very helpful!
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April 6, 2008
In Part One, I described the importance of establishing deep, human connections with people you lead. I said there were three ways to do that, by communicating information, by making sense, and by having your experience become their experiences. By far, the most important and most effective way, is the latter.
Now I’ll show you how to make that happen by developing and communicating a defining moment.
Write down three to five of your EXPERIENCES that made a strong impression on you. Describe each in a few sentences or paragraphs. That’s it. Do no more. The important thing now is to deliberately walk through the sequence of defining-moment development. It’s easy to get off track, but once you take the trouble to go through the process, you’ll have it for life.
For instance, an experience that defines much of what I do in leadership happened when my father lay on his deathbed. He and I had struggled for years over conflicting views of my career path, but when he got cancer, the terrible disease led to a healing in our relationship, and for the first time in years, we were able to talk with affection and no recriminations. During a long discussion one afternoon a few weeks before he died, I told him that I felt I had run out of opportunities in my life.
His thin hand, which had been so broad until he became ill (He came from a family of hulking carpenters.) closed around mine, and he said, “Brent, how can you say that? Everyone has opportunities all the time. Look at me. Even me, here, on this bed even I have opportunities!”
I didn’t think much about what he said until after he died, and then his words kept coming back to me. Sort of breaking open in my mind like psychological time-release capsules and releasing bits of understanding. I came to understand what he really meant. And I took that understanding into my life and work.
Since then, I have never lacked for opportunities simply because my father had me see that opportunities are never lacking nor have I allowed the leaders I’ve worked with to lack opportunities.
“Even I have opportunities” is a defining moment, an experience, one that led to profound awareness and purposeful action not for my sake, but for the sake of the leaders I’m consulting with. For the defining moment’s purpose is not to illuminate what you can do, but what they can do.
Now that you’ve written down some defining experiences, you can begin to change them into defining moments. The experience is the raw material; the defining moment is the instrument, shaped from the raw experience, that enables you to reach into the hearts of the people you speak to and motivate them to take action to get results.
1. Select an audience to speak to. It can be one person or many. It can be someone at work, in your family, or in your social circle. This should be an important interaction. You don’t simply want to communicate but to have a communion with the audience.
Don’t expect the defining moment to automatically generate that communion. Often, it simply marks a small step you’re taking in that direction. But that step is the very core of the right beginning.
2. Identify the needs of the audience. This is absolutely crucial to using the defining moment. The defining moment is all about human relationships, and you cannot have a rich relationship with someone unless and until you understand their needs.
3. Once you’ve chosen an audience and identified their needs, go back and select one of the EXPERIENCES you wrote about.
At this point, don’t try to connect that experience to what you are going to say to your audience. We’ll make that connection later. Many speakers try prematurely to make the connection. In doing so, they short-circuit the power of the defining moment. Hold off on making the connection until we’ve gone through a few more steps.
4. Take each experience and identify the physical facts that gave you the emotion. In my father’s case, it was his hand squeezing mine and his smile and gentle words, “… even I have opportunities.”
5. Have the experience be a solution to the needs of your audience. That solution lies in the lesson the defining moment teaches.
Here is the secret: The defining moment exists not for you to point out what you did, but for you to point out what the audience can do. In other words, your defining moment must become their defining moment. If it doesn’t become their defining moment, it doesn’t work.
Take, for example, my defining moment with my father. All the leaders I’ve worked with need to get more results than they’re presently getting. In fact, the leader who is satisfied with the results he or she is getting doesn’t need my help. My methods are not for the satisfied leader. To an audience that needs to get more results, I talk about opportunity, the opportunity to get results. Results are limitless!
When I talk to audiences about such opportunities, I use that defining moment. I say, “What I’m about to tell you isn’t so much about me as it is about you and the unlimited opportunities to get results.” That introduction is vital. It confirms that our interaction is about them and not about me. When my father’s words resonate with their deepest needs, the defining moment works. Otherwise, it’s a waste of their time.
6. Speak to your audience about your defining moment. Make sure it holds a solution to their needs. Don’t have your defining moment stick out awkwardly in your interaction. Have it be a spontaneous, seamless communication said in a natural, relaxed way.
As a leader, you do nothing more important than get results. And the best way for you to get results is not to have people respond to your orders but to motivate them to be your ardent cause leaders. We never know how good we are as leaders unless we are motivating people to be better than they think they are. The defining moment goes a long way in helping make that motivation possible.
2005 © The Filson Leadership Group, Inc. All rights reserved.
PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to publish is appreciated but not required: mail to: brent@actionleadership.com
The author of 23 books, Brent Filson’s recent books are, THE LEADERSHIP TALK: THE GREATEST LEADERSHIP TOOL and 101 WAYS TO GIVE GREAT LEADERSHIP TALKS. He is founder and president of The Filson Leadership Group, Inc. - and for more than 20 years has been helping leaders of top companies worldwide get audacious results. Sign up for his free leadership e-zine and get a free white paper: “49 Ways To Turn Action Into Results,” at http://www.actionleadership.com
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April 1, 2008
Based on years of experience in the employment field, and augmented by the inexhaustible sources of information from numerous resources, I offer you a review of RETIREMENT PLANNING that you can consider and compare against whatever retirement efforts you may have already undertaken. In this review, we’ll identify the real advantages and details of sound retirement planning elements that many millions of employees and self-employed individuals rely on as a regular part of their workplace experience.
Those elements below will be in the form of questions and queries about your current status relating to the elements. Your answers will reveal how effecient, or not, your retirement planning has evolved. If your answers are lacking, then the questions themselves expose a map to implement a sound retirement strategy to fit your circumstances.
To start, lets consider PRIMARY ACTIONS one should consider for a secure retirement:
1. Create your individual retirement needs list.
2. Begin a step-by-step plan for reaching those retirement goals.
3. Assess your current assets.
4. Begin to build up savings.
5. Find good professional financial advisers
6. Learn about how to make the most of tax strategies
Let’s look closer at what the government has to say about it; from the Pentagon Federal Credit Union: “Now more than ever before, Americans are changing employers, indeed careers, several times during their lifetime. To adequately prepare for your future, it is important for you to establish, and manage, your own retirement plan. With the secure days of drawing from a hefty pension plan from one company gone, you may find that you must rely on several sources of income during retirement. These sources may include a company pension, Social Security, investment income, savings, part-time work, the sale of assets, and others. The sooner you begin planning for and contributing to your retirement, the better off you will be. Only you can determine whether your retirement will be spent counting pennies or living life to its fullest.”
Now, let’s consider some SPECIFIC CONSIDERATIONS that will affect your retirement: For instance, at what age will you retire? Or… how many years do you have for creating retirement savings? The answers to those two questions help to form much of your retirement strategy.
Next, put the results down on paper - actually create a retirement worksheet from which you can refer to as you make your way through the other elements you should consider. There are some free resources that you can access to help you create such a worksheet. For instance, the Pentagon Federal Credit Union web site offer a retirement worksheet. Go to Google search and input the keywork-phrase “Planning your retirement.” Resource Center: Planning for Your Retirement is typically the 7th or 8th link on the first page of search results. In that article, there is a link on the first page to the Retirement Planning Worksheet.
Some of the starting points to consider are: Your company’s Retirement Plan and what it offers. Often your 401K IRA (usually with company matched contributions) will give you the most for your money. Contribute what you can afford.
Other company choice often include Annuities and Mutual Funds. If you don’t have a company plan, or you’re maxed on your contributions, you would do well to consider Annuities and Mutual Funds. Annuities feature fixed annual return rate, and are considered by many the most secure investment. Many insurance companies sponsor annuities. Mutual funds feature higher returns, but they are more volatile, therefore more risky. Many investment professionals consider Mutual funds in the same risk category as stocks. A good strategy for minimizing the risk when investing in mutual funds, is to spread any investment across a number of different funds. Both annuities and mutual funds pose some risk to your initial capital investment. You should always bear in mind, that financial risk is inherent in any investment venture.
Another choice is to set up an Individual Retirement Account (IRAs). Traditional IRA accounts are well known. Traditional IRAs are considered Low risk. To begin with, they are federally insured. IRAs also carry significant tax advantages. Another choice is a Roth IRA. Roth IRAs are available to many who do not qualify for Traditional IRA because of participation in a company retirement program or because of income considerations. You may contribute to a Roth IRA until age 70.
As you continue to consider your personal Retirement Plan, remember to assess your financial state. There are a number of factors to be considered in making that assessment. For example, the amount of money you have in your savings; your net worth; what Real estate you may own; your stock portfolio, if you own any stocks; Bonds; Insurance policies; Valued possessions; your combined Income totals.
Don’t forget to establish your retirement goals. At what level do you want to live in retirement? Most folks require a 25-30 year budget for you total retirement dollars; but that doesn’t fit all needs. Be specific and rational.
Another important step is to determine how you will manage your assets. Investment asset management falls basically into three categories: budgeting and growth and savings.
Budgeting. Your retirement must be as much a priority as food and bills. Financial considerations and decisions must be viewed from the perspective of the potential impact on your retirement.
Growth. With retirement security as a major driving force, active management of assets becomes important. Consider finding a personal financial adviser you trust.
Building Up Your Savings. Savings are the best “hedge” against the future - there’s nothing like cold, hard cash. A savings plan is very helpful - For example, budgeting a certain amount from every paycheck to be deposited in your savings, and insuring that the deposits are made on a regular basis. Savings can also be a ready resource for further investing at any time.
Now let’s consider: Finding Professional Financial Help. There are thousands of financial firms that cater to individuals. You should research, reliable, well-known firms and interview their people to find one you trust.
And what about creating customized Tax Strategies? Each of the avenues we’ve discussed has tax advantages and/or liabilities. The laws are many, and can be confusing. Consider an independent class on retirement planning to educate yourself, so you don’t have to rely blindly on professionals who live on commissions for their advice.
Creating a Retirement Plan - Creating a Retirement Plan can be a daunting task. It can seriously impact the quality of your life in your golden years. Consider continuing education courses, to stay on top of strategies, trends and legislation that will impact your retirement investments. Such courses are offered through Community Colleges and online organizations (many offering Continuing Education Units).
By addressing the aspects of retirement planning and management reviewed herein, one can determine the value of their current retirement situation, or verify some alternative avenues for retirement that may fit a specific circumstance. Don’t neglect your retirement or put it off till later in your career. There are choices available for all levels of income. The information reviewed here could help to start you on a path towards a secure retirement.
Mark Baber has 20 years experience as an Executive Search recruiter, with placement background in many industries, including: Retail, Manufacturing, Sales, Accounting/Finance, MIS/IT, Petro/Chemical, and others; enjoying client relationships with firms like WalMart, OfficeDepot, Texaco, CircleK and other national and international firms. Mark has written many articles and books on recruitment and other topics, like Marketing strategies, Sales psychology, Training and other business related subjects. He studied at the University of Texas, focusing on Communications, Marketing, and Journalism. Later became Managing Editor for “Treatment Today Magazine,” a publication focused on psychology, psychiatry, counseling, and drug treatment. Mark Baber is Recruit Consultant to http://www.JobNewsRadio.com where Jobseekers access 2 Million job transactions monthly, and can submit their Resumes Free and have them distributed freely to Employers they choose by industry, vocation, City or Region. Or submit your resume directly via: http://www.mcbaber.com
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