Test Magazine Title March 2013 | Page 3

page three The Power of Networking t he term “networking” often conjures up visions of highsociety hobnobbing at cocktail parties. But, networking is not just for those with an abundance of leisure time; it is for any professional who would benefit from building relationships with clients and other professionals. services your clients are likely to receive, positioning yourself as a source of trusted knowledge and advice. It is also important for your professional development to keep in touch with peers in your industry, who can be a sounding board in good and bad times. As a business owner, building a thriving company necessitates getting the word out about the quality and range of products and services your business has to offer. Regardless of your industry, you likely rely on other professionals and members of the community for referrals, and for support and advice in resolving common issues and concerns. Professional and industry associations, both local and national, are often useful starting points for networking. These groups typically organize conferences and other events where colleagues meet and exchange experiences. You may also want to make use of your alumni network to maintain contact with your peers. To meet a wider range of area professionals, get involved with local chambers of commerce and business clubs. Keeping in contact with other professionals can bring many benefits, such as getting and receiving referrals for new clients. When you know a professional and his or her business specialty well, you can be more confident of the quality of products and Instead of relying solely upon existing networks to make professional contacts, reach out to other professionals in your local area by hosting receptions and open houses, or educational sessions on industry topics. Consider organizing meetings with other business owners in related industries to share expertise on your individual areas of specialty. In some cases, it may even be possible to forge alliances with other businesses to order supplies in bulk or partner in charitable activities. If your business is large enough, you may want to hire a marketing professional who can serve as a liaison to the wider business community. Whatever strategy you choose, keep in mind that to build and maintain a successful business, you need to reach out to others. Regardless of talent, no one could run a company without the help and support of friends, family, other professionals, and the community. As John Donne famously reminded us long before the term “networking” had been coined, “no man is an island.” ? life insurance: policy ownership considerations continued from page one Keep in mind that if the transfer is done within three years of your death, the policy proceeds are generally still considered part of your estate, regardless of ownership. Thus, proper planning is necessary to help ensure that you achieve your desired results. Ownership of individual and, in most cases, group insurance can generally be transferred to anyone who is old enough to handle money. Depending on your particular circumstances, it may be advisable to transfer a policy directly to a beneficiary or, in the case of a minor, to a trust that is designed for the benefit of a child. Before signing away insurance, it is important to carefully review the consequences. Gifting insurance may have gift tax consequences if the transfer is to anyone other than your spouse. In 2011, the annual gift tax exclusion is $13,000 per gift to any single donee and $26,000 for gifts made jointly by husband and wife. For specific guidance, consult your qualified tax and legal professionals. For those in higher tax brackets, one useful technique to shelter large policies from estate taxes—and to protect the interests of minor beneficiaries—may be to transfer ownership to an irrevocable life insurance trust (ILIT). When you die, the trustee named by you can distribute income to your beneficiaries or, if necessary, use the proceeds to pay estate taxes. Again, be sure to consult with your tax and legal professionals for specific guidance. The decisions you make regarding policy ownership are no less important than the decisions you make regarding what type of policy and how much insurance you need to fulfill your objectives. When planning your insurance program, take care to cover all the bases. ?