Thursday, September 5, 2013

Q: What do these companies all have in Common?

A: They all Utilized the Cash in their High Cash Value Policies to Start Their Companies or Maintain their Cash Reserves

Wednesday, September 4, 2013

Note!! We Suggest you set aside a few minutes to watch the Important and Valuable Video Below!

This information is not meant to alarm or frighten you, just to give you more choices in making astute and sound financial decisions about your future plans

“It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.”

Mark Twain quotes (American Humorist, Writer and Lecturer. 1835-1910)

We have been encouraging everyone to become aware of the changes in the economic and financial system that may be working against your sincere efforts to successfully steward your retirement and personal funds. The Public Banking Institute is at the forefront of the efforts to educate citizens, municipalities and state governments on the need to setup Banks that are not subject to these new pressures and devastating circumstances. We Highly Recommend and Encourage you to watch the following video, and read or watch any other educational material the Institute has provided to help you in your efforts to protect and steward your funds. As you know, we are helping individuals, families, and companies to protect and grow their holdings with Privatized Savings and Loan or Private Reserve Banking programs, something which the Wealthy have been using for over 150 years to address their needs, and now are proving to be ahead of their time in dealing with todays problems.

Please Watch This Video Now! http://safeshare.tv/w/jkbxcFMkyu

http://www.worthangroup.com/privatized-family.html

http://www.worthangroup.com/contactus.html

Thursday, August 29, 2013

Value Your Business!

Value Your Business! (Ask for Discount Code)

Knowing the Value of Your Business has many Business Benefits. Now you can save Thousands of Dollars $$$$

We are offering a Trial, and also a Discount to Use The Best, Patented, User Friendly Software for CPA's, Attorneys, and Business Owners.

1. Giving them more control and saving time

2. Saving Thousands on a Costly Time Consuming Process

3. Gives you access immediately to Needed Information

4. Gives you a Full Report for Multi Use Business Valuation

This is a Great Article on Business Valuation Rule of Thumb, Recommended Reading for Busy Professionals

http://www.summittrust.com/professionals/bizequity/valuation-rules-of-thumb

After Reading we Suggest You Watch the Informational Videos on THE Business Valuator

Online Business Valuation: The BizEquity Solution

By Scott Gabehart, Certified Business Appraiser and Vice-President of Valuation Support and Services for BizEquity

The recent article by Mark Cohen in the New York Times titled “Do You Know What Your Business is Worth? You Should” contained a number of relevant insights related to the valuation of privately-held companies – including the “commanding” title itself. Interestingly, the first part of this title happens to be our primary tagline at www.bizequity.com.

Singlemost Important Piece of Advice

Cutting to the chase, my analysis led to the conclusion that the primary or singlemost important sentence in the piece was:

“….it helps to have at least a basic understanding of the valuation process.”

The implication was, it seems that many business owners do NOT have a basic understanding of the valuation process.

Enter BizEquity

Pioneered by experienced entrepreneurs and valuation experts alike, there is now a tool available which can help the business owner to “Optimize, Optimize, Optimize” as Mr. Cohen puts it convincingly in his final comments. Importantly, the employees of BizEquity are devoted to the development and implementation of a comprehensive suite of business valuation methods which will allow the user to generate a credible, reliable and accurate estimate of fair market value on a going concern basis – from the perspective of both an “asset sale” and “stock sale” paradigm.

Why Do Online Tools Disappoint?

There are several online valuation tools or calculators which can be located via the internet which run the gamut from extremely basic calculators with 3 or 4 entries to complex discounted cash flow applications based on Excel spreadsheets and the Capital Asset Pricing Model complete with “beta” and a staggering number of assumptions stemming from modern portfolio theory. Neither of these options can truly help the typical small business owner determine value or understand what truly determines business value.

The primary reason why a business broker (such as Barbara Taylor in the Cohen article) using many of the current online tools (calculators are a better description in many cases) would be disappointed in the valuation estimate is their inability to properly gauge cash flows for valuation purposes (whether in the form of “discretionary earnings” or “net cash flows” or “after-tax profits”). Even those tools which fall in between the two extremes just identified are unlikely to “hit the mark” for this key metric.

Unless the valuation algorithm specifically addresses owner or officer compensation in a robust manner, the results will be more than disappointing. More specifically, the earnings stream most suitable for a small company is reflective of a “return on the owner’s labor” as opposed to a “return on investment” perspective. Most specifically, it must reflect the “pretax, cash equivalent financial benefits available to a single owner working on a full-time basis” in order to pass “the smell test”.

Such a tool must also be able to account for other “outliers” so to speak, ranging from a variety of non-recurring or non-operating expenses/revenues to the imputation of a market level rent burden if the subject company happens to own the underlying real estate. Without these adjustments, valuation results based on pretax profits or an unadjusted EBITDA will almost always fall short of what would be deemed a “credible” estimate. Contingent liabilities and net operating loss carryforwards are examples of balance sheet adjustments which must be captured in order to derive a credible estimate of “equity value”.

Through literally years of trial and error, BizEquity has managed to work all of these key valuation elements into their algorithm. By accurately determining the proper earnings/cash flow amount, other key value determinants can be utilized to build the proper valuation multiple or capitalization/discount rate. Factors such as size, expected growth and profit margins, customer concentration, importance of owner-operator to business performance along with other financial statement ratios can be used to assess areas such as liquidity, solvency and activity as compared to industry benchmarks.

Second Most Important Piece of Advice

The second most important piece of advice from Mr. Cohen’s article, in my opinion, reads as follows:

“But some are starting to treat the act of valuing their business as an integral part of running it.”

Naturally, treating the valuation process as part of day to day and strategic planning requires the “basic level of understanding” referred to earlier. BizEquity wants to do more than just provide a bottom line number. The unique and patented user interface allows the user to visually note how a changing variable can impact the final estimate of value – in real time.

In addition, the firm is in the process of publishing a series of blogs which, from start to finish, will educate the owner on key concepts related to business valuation. These blogs will, in part, be incorporated into a new book that Mr. Gabehart and Mr. Carter are currently writing called “Valuation 2.0”. This unique book will be the formal link between the business owner and their quest for knowledge in the valuation realm. Beyond providing a user-friendly overview of the business valuation process, this book will also give the readers added insight into how to use the online tool – both in general and with respect to maximizing business value over the long run.

Final Comments

As noted by Mr. Cohen, it is certainly true that small business owners are, almost without exception, extremely preoccupied with “the day-to -day demands” of their companies. And yes, there are many instances when there is “something to be said for having a real person trained at valuations”. As I have duly noted in my blogs, it is clearly the case that “there’s an art to doing a valuation.” Finally, I have no doubt that there are many online tools which would produce different results from what a hands-on and experienced business broker would surmise as being the correct value. Even “reasonable” professional appraisers would admit that a given company’s value can easily range up or down by 10% to 15% around some hypothetical average or probable value.

Despite these admissions, I have seen firsthand that we can assist business owners with efficiently (but steadily) learning about business valuation and how it relates to both their day to day operations and long term planning. After four years and literally millions of dollars in invested capital by the former credit card giant Advanta and now the new owner Mr. Michael Carter, we have introduced an “online tool” which we hope will become more of a “way of thinking” than a once in a while application. Our forthcoming book will deal with this in detail as we delineate the finer points of what we term “Enterprise Value Management”. In short, all roads lead to “value”.

Based on my experience as an internal auditor, business broker/middle market specialist, real estate agent, securities agent and certified business appraiser, I have spent most of the past two decades immersed between buyers and sellers of privately-held businesses of all types and sizes. Along the way, I have written two major books (covering business brokerage and business valuation) and developed/taught an MBA level course on private firm valuation for the highest ranked international MBA program in the entire country. All of this experience is being incorporated into the development of BizEquity with the ultimate goal of teaching business owners how to value their most precious assets – and how to “optimize” this value.

Contact Us at Worthan Group for a Confidential Discussion of your Needs, and a Trial Account for The Business Valuator. We also offer Business Succession Services, Retirement, and Executive Benefits

970.744.4626

http://www.worthangroup.com/contactus.html

Saving Money and Time for Doctors!

Saving Time and Money for Doctors!

Get 21 hours of Category 1 CME credit !!

|Wes Dye and Worthan Group offer:

Earn 21 Hours of Category 1 Continuing Medical Education (CME)

 The Doctor’s Wealth Preservation Guide

The 7th Edition 2011

To Order a copy of The Doctor’s Wealth Preservation Guide – WITH CME CREDITS

for the price of $50.00 (more than 50% off retail), contact us, info below.

Doctors have been clamoring for Category 1 CME credits on issues that will help them, protect their assets from creditor, become more business savvy, reduce income, capital gains, and estate taxes, and grow wealth in a secure manner for retirement. You can stop wondering why no accrediting body has been able to approve a book on such issues because now one has.

The Doctor’s Wealth Preservation Guide has just been approved for 21 hours
Now doctors can learn something new and useful instead of taking the same typical CME courses that everyone loathes taking. You can now earn Category 1 CME and not feel like you are wasting your time fulfilling your continuing education requirements.

Making money in the medical profession is hard enough, keeping it is an entire other matter.

Roccy shows you how to avoid being a target of litigation, retire wealthy, move money to the next generation, all in tax efficient manner.

What are people are saying about this book:

“The Doctor’s Wealth Preservation Guide is the new physician’s financial bible. No physician should practice medicine without one.”

Kathryn Serks from The American Academy of Physician and Surgeons.

“Roccy – A well–earned thanks for greatly simplifying my life with a much improved proper corporate structure.

Separate well-earned thanks for your expert yet understandable tax and asset protection planning. This will make a huge difference for my family.

And finally, I literally owe you my financial life, for helping me escape from Xelan.

Thank God I read your book.”

Tim Kriss – Neurosurgeon

Wealth Preservation Guide is now APPROVED for continuing medical education.

REVIEW THE TABLE OF CONTENTS
To view the Table of Contents of the book, please click here.

Asset Protection – Learn how to protect your personal and business assets from disgruntled patients, creditors and divorce through the use of domestic and offshore planning tools.

Estate Planning – Learn how to avoid the most common estate planning mistakes that could cost your heirs $500,000 – $3,000,000 or more and learn how to avoid the 70-83% tax trap.

Income Tax Reduction – Learn how to reduce your income taxes by $25,000 – $200,000 annually while avoiding the tax avoidance shams in the marketplace.

Financial Planning – Learn how to protect the principal of your investments while still giving yourself the opportunity for upside growth if the stock market performs well.

Office Management – Learn several practical and easy to implement solutions that will help you run a more efficient and financially sound medical practice.

Roccy DeFrancesco, JD

Author and lecturer Roccy DeFrancesco, JD has spent the better part of a decade helping doctors keep their hard earned money. His doctor’s book should be on the shelf every person connected to the medical profession. Contact Us now, Sign up for Your Continuing Education.

Wes Dye, CWPP, Chartered Trust Officer, State Representative, Asset Protection Society

http://www.inthesafe.com 970.744.4626

http://www.worthangroup.com

Saving Time and Money for Doctors

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Get 21 hours of Category 1 CME credit !!

|Wes Dye and Worthan Group offer:

Earn 21 Hours of Category 1 Continuing Medical Education (CME)

 The Doctor’s Wealth Preservation Guide

The 7th Edition 2011

To Order a copy of The Doctor’s Wealth Preservation Guide – WITH CME CREDITS

for the price of $50.00 (more than 50% off retail), contact us, info below.

Making money in the medical profession is hard enough, keeping it is an entire other matter.

Roccy shows you how to avoid being a target of litigation, retire wealthy, move money to the next generation, all in tax efficient manner.

What are people are saying about this book:

“The Doctor’s Wealth Preservation Guide is the new physician’s financial bible. No physician should practice medicine without one.”

Kathryn Serks from The American Academy of Physician and Surgeons.

“Roccy – A well–earned thanks for greatly simplifying my life with a much improved proper corporate structure.

Separate well-earned thanks for your expert yet understandable tax and asset protection planning. This will make a huge difference for my family.

And finally, I literally owe you my financial life, for helping me escape from Xelan.

Thank God I read your book.”

Tim Kriss – Neurosurgeon

Wealth Preservation Guide is now APPROVED for continuing medical education.

REVIEW THE TABLE OF CONTENTS
To view the Table of Contents of the book, please click here.

Asset Protection – Learn how to protect your personal and business assets from disgruntled patients, creditors and divorce through the use of domestic and offshore planning tools.

Estate Planning – Learn how to avoid the most common estate planning mistakes that could cost your heirs $500,000 – $3,000,000 or more and learn how to avoid the 70-83% tax trap.

Income Tax Reduction – Learn how to reduce your income taxes by $25,000 – $200,000 annually while avoiding the tax avoidance shams in the marketplace.

Financial Planning – Learn how to protect the principal of your investments while still giving yourself the opportunity for upside growth if the stock market performs well.

Office Management – Learn several practical and easy to implement solutions that will help you run a more efficient and financially sound medical practice.

Roccy DeFrancesco, JD

Wes Dye, CWPP, Chartered Trust Officer, State Representative, Asset Protection Society

http://www.inthesafe.com 970.744.4626

Wednesday, July 10, 2013

Why Making Purchases With a Life Insurance Policy Loan Makes Sense

Let me tell you about Jim.

Jim is 55, and Jim is pretty mad.

I just got done reading an email from him and, he was in a fury, a bit humorous, but the angry overtones were definitely there. He’s mad at himself and the world that he didn’t understand the concept of compound interest and how to make purchases years ago.

Warning: The concept I’m about to teach you may change your life (or make you angry).

You see, Jim, like everyone else, had to buy cars to live. He’s older, so he has been buying cars for the last 25 years. And he is just now realizing how much money he has lost because he didn’t put compounding interest on his side. He’s been paying cash because he was told “it was the best thing to do.”

But, the question is, What do the wealthy do differently?

Quickly, if you don’t understand, The Basics of high cash value permanent life insurance, you need to get the Free Wealth Ebook on our home page, and watch the videos by clicking here.

Life insurance offers us a place to store our money where it can grow and provide us with benefits. We have access to that money through policy loans.

However, often times I feel my greatest disconnect with people I meet with comes when we begin to talk about policy loans. People start to wonder, “if it’s my money, why would I ever want to take a ‘loan’ from the life insurance company?”

It’s a good question, and one that can be difficult to understand in a phone call.

But there is a reason, and a very strong reason, why letting your money compound, and taking a policy loan, is much better for you in the long run.

And especially better than paying cash.

I’m a numbers guy, so let me start with some numbers. I’m using a 35 year old who wants to save up $25,000 over a 5 year period to buy a car.

What he wants to do is this: buy 1 car every 5 years; starting at year 5 (after he has saved up the initial $25,000).

What are his options? He can save money into a savings account, and buy his car with cash, or, he can save up money in a cash value life insurance policy, and take a loan.

Now, the first scenario, the savings account scenario, he won’t pay any interest, but he won’t earn interest (maybe 1% taxable) on that money either. So, at the end of his life, he hasn’t paid any interest, but he has no money to show for it.

(It’s important to note that, even though he isn’t paying interest, he is still making a monthly payment of $416.66 a month to save up the $25,000 dollars to purchase each car.)

In our second example, it will cost him more money, of course. Today, life insurance policy loan rates are at 5%. His monthly payment will be $471.78 a month. Over the lifetime of the loan, he will pay $3,306.85 in interest payments.

I’ve run an actual illustration for today. The point of all this is, “am I going to make more money than I put in?”

The answer is, yes (or why would I post about it?).

Why are you going to have more money? Because you have compound interest working for you. As time goes on, interest compounds on interest.

Here are the illustration numbers. (We’ll start at year 10, after we have paid back the first car loan. Remember, it took us 5 years to save the money initially. And obviously, this needs to be a properly structured high cash value whole life insurance policy to make sense.

_Car #_	_Year_	_Cash Value_	_Interest Paid_
Car 1	10	$30,929	$3,306
Car 2	15	$41,803	$6,612
Car 3	20	$56,225	$9,918
Car 4	25	$75,202	$13,224
Car 5	30	$99,893	$16,530

I just want to make it clear that this is all based on only $25,000 dollars going into this life insurance policy one time, and compounding from there. There is no new money going into this policy after the initial contributions.

The real difference is the fact that your money is compounding, uninterrupted, inside your life insurance policy. Sure, it takes some time to build. But during this entire time it’s also providing you a death benefit.

When this guy from our example is 70, and time to retire, he now has $131,803 in his cash value.

Compare that to the guy who paid cash. He has 0 dollars, because he saved and spent it all 5 times.

It’s a huge difference. Yes, it costs you a little more. But can $16,500 really be viewed as a cost if, when it’s all over, you have $106,803 extra for retirement?

But in reality, it all boils down to human nature. Parkinson’s law says, “expenditures rise to meet income.” The opposite is also true. If your car payment goes up another 50 dollars a month, your expenses will adjust to match. The reality is, sure, if you are going to force yourself to put 50 extra dollars into a savings account every month, you will be better off. But the fact is, no one does.

Be Sure to Watch this Video from Truth Concepts, The Auto Calculator to show you the numbers:

http://ezwp.tv/VWfHId7

Wes and Susan, CWPP, MDRT