Below is another very helpful tax missive from our friends at Kovarik and Kim CPAs detailing many of the anticipated tax changes coming our way at the end of this year.  You might remember that the Bush-era tax cuts will be expiring on 12/31 if Congress doesn’t act before then.  In addition, the new Healthcare Reform legislation signed into law by President Obama will also usher in another slew of tax changes (read “increases”).  The real impact will be on the higher income and wealthier individuals. 

The high points in summary are as follows:

1. When fully phased in, the top long-term capital gains rate could climb from 15% to 23.8% including applicable surtaxes, and ordinary dividends will no longer have preferential treatment.
2. Regular marginal tax rates will increase from 35% to 39.6%.
3. Shifting income into 2010 could be an interesting tax planning strategy to review in light of the changing future environment. Continue Reading »

Each one of us has weaknesses to accompany our strengths, and blind spots to offset our well-honed skills and abilities.  Wealth creators are no different here, and in my experience the missteps often fall into two categories: Not planning, or not planning effectively.  Here is a list of the top 10 foolish mistakes that wealth creators make:

Not planning:  It’s painful, it’s not a priority, it’s not exciting.  It’s the “ostrich” approach (head in the sand)!  “Not planning” can sound like…

1.  “Why plan? It seems like I have plenty of money.”

It’s common for people to underestimate the amount of assets required to create financial independence. Overspending is a risk at all wealth strata, especially in the U.S.  Lifestyle costs keep increasing over time without any restraints, and this can rapidly deplete your resource safety net. This has been especially pronounced during the financial market declines we have witnessed during the past decade. So, be aware of lifestyle costs and choices, and know what level of spending your wealth supports.

2.  “I don’t have wealth management needs because I don’t have liquidity.”

This is the other side of the coin, and it is just not true, plain and simple.  Yes, you need liquidity at some point to pay for lifestyle and to enjoy your life, but many of the same planning issues need to be addressed regardless of whether you have a certain level of liquid assets.  Wealth creators, whether liquid or illiquid, need thoughtful wealth management. Continue Reading »

As I was thinking of last month’s post about leaving a legacy I thought but what if all I had was today?

If you knew you only had today to live, how would you spend your time?  What things would you choose to do?

My guess is that you would make sure to spend time with people you love and you might even go do something super fun, or see something that really mattered to you.  As I contemplated it myself, I think the day would be marked as much by the things that I wouldn’t do as by the things I would choose to do. 

For example, I wouldn’t get frustrated or angry with someone but instead would laugh often; I wouldn’t worry about rushing from place to place but instead would focus on staying present in each moment; I wouldn’t focus on mundane tasks and busyness in favor of meaningful conversations and relationship; I wouldn’t worry so much and waste time on fear-based thinking but instead explore life.

The reality is that we really don’t have any control over how much time we have on this planet.  The funny thing is that planning for the future is critical to what we do at Highland, and it’s very important, but it can give a false sense of control.  Living fully present in each moment and focused on today is all we really have for sure.

Try this simple exercise: Before you do the next thing in your day, ask yourself, what if today was my last?  How would you choose to live it?  My suspicion is that you might need to make some adjustments or different choices about how you’re going to spend your time.

This doesn’t mean that you don’t go to work (nice try), but instead use it as a way to evaluate if you are doing the things that bring meaning and value to your life, even at work.

We all have things we have to do but maybe don’t want to, but the key is to minimize these types of items and instead of stubbornly doing all of them regardless, use this screening mechanism to evaluate what needs to change today.

What would you do if today is all there is?

What if you could add 12 to 15 plus years to your life?  Or, instead, what if you could extend the enjoyment of your passions well into your 80’s and even 90’s? 

These were the statements that caught my attention at one of the sessions at the Family Office Conference I attended last week in Newport, Rhode Island.   Watch my short video to hear more.

The organization is The World Clinic and they provide 24/7 medical care and assistance anywhere in the world.  This is obviously for executives and other people who travel internationally on a frequent basis and who need access to more sophisticated healthcare than is available in many parts of the world. 

Taking care of our best wealth creating tool–our health and specifically our brain–is what will allow us to wealth create later in our lives; for many of us this can bring tremendous opportunity and life satisfication.   

According to World Clinic, if you really want to “nail” your health, add to the list keeping your cholesteral and blood pressure in healthy ranges and this will really enhance your ability to keep on creating and enjoying the life you’ve chosen.

About a month ago, the Wizard of Westwood, John Wooden died after a storied life of triumph.  He was arguably one of the greatest coaches and leaders of all time, indelibly influencing the game of basketball forever with his focus on basic skills, team greatness, and individual commitment.

After his death, I watched hours of ESPN programming about his life, his philosophy, his relationships, and his legacy.  I was amazed by how many people he influenced during his life, even long after he stopped coaching, and I presume for many years to come.

Over the past decade I have read several books about John and his life.  I have even used some of the elements of his Pyramid of Success approach in my own business team development and vision.  I shared some of that in a previous post on our internal strategic planning.

As a part of my own personal visioning process, I asked myself the question:  At my funeral, what do I want people to say about me?  Obviously, this really unabashedly pokes at the issue of legacy and the true meaning of my life. 

I had never done this before and decided to take a stab at it. So, one afternoon I got out my notebook and pen and started a list. 

It was interesting that it took me a while to get past the small items and performance based things like work success, awards, etc. and get to the essence of who I am and what I want to be remembered for (good father, husband, deep friendships, loyalty, compassion are a few of mine).  I plan to spend more time refining the list and processing what I wrote down over the next few months as I continue on this journey.

Some of the items are quite personal and in a recent conversation with a friend who was asking me about my list, I found myself getting very uncomfortable.  This tells me I also have some work to do on being more authentic with who I am—and who I want to become. 

What do you want your life to be about?  If you don’t know, it might be time to think about it and start moving towards it.  This exercise might come in handy, “My Life Story.”  It’s a five step exercise that helps represent expression of the “choices” you are making about your life.

If you want to know more about my experience going through this process, please feel free to reach out and I would be happy to share more of my story.

I ran across this article when I was doing some research on barefoot running. I absolutely love it and the application to live a fulfilling life, with clarity and control! (Warning: it’s a tad long but I promise that you won’t be disappointed if you read the entire thing).

These are a few points that came into focus for me as I read the article:

• I am becoming more and more aware of how important it is to live my life authentically and how often I let fear and controlling behaviors stop me from expressing my true self.
• I am also learning that it takes a great deal energy and work to protect myself from the pain of life, and by living in my authentic self, life can be lived easier and more simply. (I didn’t say pain free, however).
• By embracing the courage to truly experience the highs and the lows of life, and not living in the protected “safe” range of mediocrity, we can have the richness of life that flows naturally without having to worry about it.

What points of the article challenge you to live a fulfilling life?