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. ?