Archive for the Business owners Category

Whitney Houston’s Estate is not BROKE!

Many reliable sources on the internet have label Whitney Houston’s estate as BROKE and in a financial bind.  Sources say that Whitney Houston was already on the brink of a financial calamity even facing bankruptcy.  Music Industry Insider Wayne Russo gives a full break down of Whitney’s liability to Sony Music Group, and why it may be a long time before her Estate would reap any of her music royalty wealth. (Read article here) But music royalty wealth is only one piece of a very big pie that heirs of Whitney Houston can profit from to continue her legacy.

Postmortem Riches

Celebrity wealth in death is not a new topic, and until Michael Jackson’s death in 2009, Elvis Presley reign as the highest paid dead celebrity.   Keep in mind that the bulk of wealth that is deriving from Elvis Presley is not music royalties.  Presley’s postmortem earnings come from Graceland admissions, licensing and merchandising and a Cirque du Soleil.  Licensing and Merchandising is a billion dollar industry and the advisors to these dead powerhouses know it; that’s why Elvis Presley Enterprises, Inc. (not to be confused with his estate) gross proceeds for 2011 were in the billions.

Whitney Houston’s Legacy & Deja Vu

Although the Estate of Whitney Houston maybe in debt to the Sony Music Group, for music royalties. Nothing is stopping the heirs in creating a new company that will continue to keep Whitney Houston’s legacy alive and bring in some of those postmortem riches. Let us not forget that when Michael Jackson died, once again reliable sources on the internet said is estate was in debt to AEG for $30-35 million, fast forward  2 1/2 years later, Forbes listed him as one of the highest paid dead celebrities in 2011.

© 2012, Lorillia Brown-Phillips.  All Rights reserved.

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What is this a 1099-K?

If you a business owner or service provider of any sorts, you should be familiar with the 1099 form, especially if you are an independent contractor.  Starting this year in 2012, any gross amount of income that you received in 2011, that was settled by a  third party network for example eBay’s PayPal, Google Wallet, or Amazon will now be reported on a new tax form called the 1099-K Merchant Card and Third Party Payments form.  This new 1099-K tax form has been considered a way for the IRS to flag upcoming audits.  Read more here.

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8 Steps to Keep your Holiday Season Debt Proof

Borrowing money for the holiday season is no misnomer for many American families.  American families are constantly being bombarded with retailer’s advertisements of buying, and fighting the buying temptation can be difficult.  Statistics show that nearly 1 in 10 families borrow money to spend on Christmas gifts and those same families are unable to pay their bills at the end of month in December.  Read the rest at Your black world

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Are you creating derivatives?

Before I begin to write about how to create and develop derivatives, I first want to ask you do you know what a derivative is?  If you think the derivative I’m talking about is some exotic financial instrument traded on Wall Street then your wrong.  The definition of a derivative is a byproduct or substance that can be created by another product.  The root word for derivative is derived.  So let me illustrate for you an example of a derivative; let’s use an apple.  An apple is a derivative of an apple tree; apple sauce, apple juice, and apple cider is a derivative of an apple.  Do you see my point, the example that I gave you were two examples of byproducts of another, which in turn created derivatives.

As a business owner or entrepreneur you too should be creating your own derivatives; that derivative could be a book, an online course or a coaching program.  The derivatives that a business owner creates become byproducts for that business, and when you create your own derivatives you create infinite income or passive income for yourself.  Your business derivatives become assets created by you, and when you create your own assets; your assets create passive income.  See most business owners concentrate on generating earned income, for example how can I get more business or get more clients.  But when you concentrate on creating earned income, the asset side of your balance sheet is empty and it has zero assets.  In order to create passive income you have to build your business assets which in turn are your derivatives.  When you begin to create derivatives the asset side of your balance sheet builds up, which will create passive income on your profit & loss statement.  Remember in business it’s important to have a profitable balance sheet as well as a profitable income statement.  So what are you waiting on get started on that book, put together that online course, or start that coaching program.  Remember when your begin creating financial wealth your only using 10 percent of your time and living on 90 percent of what you created.

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My first E-book, yippee!!!

We’ll after investing in a book writing course to prepare me for writing my first personal finance book, I have made one accomplishment and completed my first E-book “75 Common Tax Deductions for Small Business Owners”.  Although this is not the big kahuna which is my Personal Finance book this is a start, and it’s getting me in the writing spirit.  I know your wondering why I chose this topic as my first E-book, well the reason is simple I often get bombarded with questions from clients and prospects on what’s tax deductible.  So instead of rehearsing the same answer over and over again, I can now point individuals to the source of information for FREE.  This E-book is an informative read if you’re wondering what you can and can not deduct.  I used youpublish.com to upload my E-book for download; there is no fee for the service.  The website is user friendly so if you have basic computer skills like myself uploading the PDF version of the book will not be a problem for the most novice computer.  Again check the E-book out and tell me what you think.

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Why are you so Broked?

 

 

 

Recently on LinkedIn I came across a post regarding the difference between Wealthy and Broke people.  The title of the article is named “Being Broke Is a Waste of Life”  it was written by Luther Thompson a professional I connected with on LinkedIn.   This article clearly defines the difference in characteristics between a Wealthy person and a Broke person.  Please read the article below, and tell me what you think:

BEING BROKE IS A WASTE OF LIFE!

Why are you still tired, broke and enslaved?

The following is a list of the Top 20 principles of the wealthy. It is not meant to be specific financial advice, however it is a bright-red warning flag to help you avoid financial trouble.

1. The Broke think everything is too good to be true, while the wealthy think that getting a job sounds too bad to be true.

2. Broke people give up when things don’t go their way; a few disappointments and they are onto something else, saying things like “it wasn’t for me.” The wealthy work harder and become more determined when things go bad, and understand that you have to take the bad with the good to make it.

3. Broke people always have an excuse. Wealthy people say “my fault” and refuse to make excuses.

4. Broke people think that not getting what they want is OK. Wealthy people are disgusted at the thought of not getting what they want and will do whatever it takes.

5. Broke people always have to talk it over with their broke friends to make sure no one will make fun of them if they make a decision. Wealthy people think for themselves and could care less what their broke friends think.

6. Broke people are never coachable and teachable. Wealthy people are always learning, even when the money starts coming in, they never stop learning from those who were there first.

7. Broke people are scared of others. Wealthy people entrust in others and know that other people are crucial for their success.

8. Broke people are always procrastinating; they would rather talk about it, read about it, think about it, but never seem to do anything. Wealthy people hate doing anything but getting it done.

9. Broke people are glad when the day is over. Wealthy people love when the day begins.

10. Broke people think Wealthy people are lucky. Wealthy people put themselves into a position to be “lucky,” and then work hard to make the “luck” show up.

11. Broke people work by the hour. Wealthy people work by the month.

12. Broke people want to know that after 1 hour of work they have something to show for it. Wealthy people find broke people who think like that and make them their employees.

13. Broke people get excited they just got hired. Wealthy people think it is funny that someone could be fooled that easily; they are just making the wealthy person wealthier.

14. Broke people complain a lot. Wealthy people are thankful that no one shot at them today, they didn’t have to fight in a war, and that they don’t have a job.

15. Broke people are too concerned about what other people are doing. Wealthy people are only concerned about what they can be doing to get more done.

16. Broke people think that if no one is doing something, it must suck. Wealthy people think that if no one is doing something, it means more money for them.

17. Broke people think that if everyone (all 200 people at the meeting in a city of 1 million) is doing something, it must be saturated. Wealthy people think that broke people aren’t too bright.

18. Broke people think it is OK for other people to live where they want to live, drive what they want to drive, and do what they want to do.

19. Broke people are OK with the fact that they can’t do these things. Wealthy people get sick just thinking about being average.

20. Broke people think that other people’s opinions are worth more than their dreams. Wealthy people know that their dreams are worth more than other people’s opinions.

I have learned to be wealthy. You must learn from the broke and do not do what they do nor think how they think.

To your success,

Luther Thompson, Jr.
Luther Thompson, Jr. & Associates
PO Box 1026
Atlanta, Georgia 30156-1026
Voice mail: 866.485.7373
Email: lutherthompsonjr@bellsouth.net
Blog: http://lutherthompsonjr.wordpress.com/2010/05/11/profits-are-better-than-wages/

 

 

 

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Recognizing African-American Business Professionals

Since tomorrow will be the last day in the month of February for Black History Month.  I wanted to pay homage and respect to twenty African-American business professionals who have paved the way for our present and future.  I have read and studied these business professionals accomplishments and accolades, and my goal is to share their successes with all of you:

1.)                Paul Cuffe

2.)                William Leisdesdorf

3.)                Fredrick Douglass

4.)                Booker T. Washington

5.)                Madame C.J. Walker

6.)                AG Gaston

7.)                Bruce Llewellyn

8.)                Reginald Lewis

9.)                Oprah Winfrey

10.)            Catherine L. Hughes

11.)            Dennis Kimbro

12.)            Earl G. Graves Sr.

13.)            John H. Johnson

14.)            Russell Simmons

15.)            Berry Gordy

16.)            Robert L. Johnson

17.)            Shelia Crump Johnson

18.)            CH James

19.)            David L. Steward

20.)            Percy Miller (Master P)

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Retirement Plan Options for Business Owners

Retirement planning is an important part of wealth accumulation, many business owners are aware of the Traditional 401(K), but are unable to meet the requirements of administering the retirement plan. Here is a list of six of the most widely used retirement plan options for business owners to consider.

 1. SEP-IRA. A retirement plan where the business owner makes contributions on behalf of the employee and his/or herself. The tax advantage of having a SEP-IRA is the contributions made for both the business owner and employee are tax deductible on the business owner’s personal tax return. The contribution limit for the business owner is either $49,000 or 25% of compensation.

 2. SIMPLE IRA. A small business with 100 or fewer employees can offer a retirement plan to the business. The employer (business owner) can get a tax deduction on his or her personal return. Employers share the cost of the contributions with employees. The match is 3% of annual compensation.

3. SOLO (K). Also referred to as a Single (K), Unit (K) or Personal (K), this retirement plan is best suited for business owners with no employees. If the business owner has family members who are employee’s contributions can be made by them as well.

4. Profit Sharing Plan. This plan allows the employer each year to determine how much to contribute to the plan, which is based on the company’s profit. The employer contributions are tax deductible, and the employee contributions are immediately vested.

5. Safe Harbor 401(K). Similar to a Traditional 401(k), employer (business owner) is required to make contributions on behalf the employees. The match is 100% of the first 3%.

 6. Employee Stock Ownership plan (ESOP). A deferred contribution plan that is invested primarily in employer’s company stock.

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