Long Term Care and a Living Trust

As I discussed in my previous post, “Business Succession and Long Term Care,” the financial independence component of business succession planning has become more complicated with the growing concern about long term care. However, with the accumulation of wealth, there is reduced concern regarding the availability of resources to pay for long term care, if appropriately addressed. Based upon historical data, in current dollars, $500,000 of cash earning 4% gross income should provide sufficient liquidity to easily satisfy the average private pay cost for almost twice as long as the average stay in a nursing home. Assuming probabilities and mortality, for a married couple $750,000 should easily do it. However we have reviewed previously that long term care is not a simple issue because you may not be capable of making the “when”, “where” and “how” decisions regarding the various forms of graduated care, the quality of care and the timing of your ultimate enrollment in the nursing home of your choice. To read the end of this blog, click here.

Business Succession and Long Term Care

Personal financial planning is a critical component of business succession planning. The general subject of personal financial planning is broken down into four components:  wealth development and financial independence, estate planning, credit continuity and exit strategy. Within the topic of wealth development and financial independence is sufficient personal income to facilitate independence from the continued success of the business. The presumption is that if you are dependent upon the business you will logically never release management control.  Consequently, you will never be able to genuinely determine if successor management is prepared to assume the responsibility of ongoing leadership and management.  To read the end of this blog, click here.

Employee Appreciation-Motivation - Unexpressed Gratitude Communicates Ingratitude

At the risk of sounding like I’m contradicting my first two posts, I don’t believe that the business owners, their children, and their employees who all benefit from one another’s contribution are completely ungrateful..  I do believe they suffer from the same thing I suffer from, and perhaps that you suffer from; they are thankful, but just haven’t expressed it. Maybe they are unsure how or they have communicated to everybody their gratification, except for the person that made the contribution. To read the ending to this blog, click here.

Effective Leadership - How to Express Gratitude and Impact Lives

In my first post on this topic I discussed a dangerous trap that many business owners fall into of “ungratefulness.” As the business owner, you were likely the holder of the big idea, capital, cutting edge strategy, or great leadership skills, however; no matter the great skill you may possess, your empire was most likely built by a team of people who bought into your mission.  Where business owners generally find themselves in trouble, is when they begin to think that they’ve gotten where they are by themselves and fail to express gratitude to the people upon whose shoulders they are standing.  In this post I will address the other side of the coin,  the recipients of a generous and humble business owner who recognize their people are their biggest asset. To read the end of this blog, click here.

You Didn't Get Where You Are By Yourself - The Importance of Employee Appreciation

One of the ugliest words in the English language is “ungrateful.” Nobody wants to be ungrateful. 2010 was a particularly busy year for succession planning. Many business owners capitalized on the opportunity to transfer assets to their children at deep discounts due to de-valuations and low interest rates in this struggling economy.  Subsequently, I have had the opportunity to  coach people in expressing gratitude.. Looking back at last year has me in a contemplative mood about giving thanks.  In the next few posts, I want to address this issue in the context of family business. To read the end of this blog, click here.