Richard A. Lindsey, CPA

Lindsey & Waldo, LLC – Certified Public Accountants

  • Jan 20

    In the book Masters of Networking, Don Morgan asserts that there are three ways to increase the power of your network and improve its ability to help you achieve goals. Fortunately, he says, anyone can create this leverage by understanding three fundamental characteristics of human nature. However, he goes on, only those dedicated to becoming master networkers will commit to mastering the arts of friendship, generosity, and character. The person who creates this trilogy of leverage will be on the road to unlocking the full power of networks.

    Friends like to help friends. And at some point in your life, you’ve probably helped a good friend do something that you might not have enjoyed doing— painting a room, helping out with the move–just because he was your friend. You really couldn’t avoid it. If you make good friends of your networking associates, you gain the same kind of leverage.

    How do you turn networking associates into good friends? There’s nothing complicated or mysterious about it, Morgan says. Think back how you and your best friend became friends. You went places together, did things together, talked about things, and one day you realize that you have been best friends for some time without even realizing it.

    That’s what you do with your networking partners. Go places with them, do things with them, help them when they need help. Soon you’ll discover that associates have become good friends. Not all of them, of course, but the more effort you put into it, the more friends you’ll make. And the more powerful your network will be in helping you achieve goals.

    You’re at a party. You’re given several presents. You don’t have anything to give in return. How do you feel? A little less than wonderful, right? It’s human nature to want to give a gift in return.

    The same holds true in networking circles, when you give something to a networking associate- a business referral, emotional support- she’ll want to give you something in return. Perhaps you won’t get a return gift immediately. However, the more you give your networking partners, the more inclined they will be to reciprocate.

    A true gift is an unconditional gift; you give without expecting anything in return. However, usually you get something back anyway. First, you gain the satisfaction of helping a friend. Second, human nature dictates that you will get something in return. When you least expect it, you may receive a gift worth far more to you than the time and effort you expended.

    The most lasting impression others have of you is the first impression: the way you looked and behaved when they first met you. If that’s a bad impression, it may take a long time to overcome and others may be reluctant to get involved with you. A master networker understands this and puts a lot of effort into creating a good first impression by dressing and behaving appropriately at all times.

    However, your long-term image goes well beyond how you look at first glance. Equal in importance, according to Morgan, are three character attributes: responsibility, reliability, and readiness. The group needs some tasks done or problem handled, do you take responsibility? Can you be counted on to come through when the need arises? Are you quick to volunteer your services?

    Above and beyond the first visual impression you make, your responsibility for, reliability within, and readiness to participate in group activities become the most important aspects of your image in the long run. If the group sees you as an asset by virtue of your character, individuals in the group will trust you, rely on you, and enjoy associating with you. And they will feel more comfortable referring their friends and associates to you— and your business.

    In the end, this trilogy of networking leverage comes down to an old principle, known in some parts of the world as the “Golden Rule”. In BNI we just phrase it a little differently: “Givers Gain.”

    To find a BNI chapter near you, visit BNI.com.

  • Jan 6

    A thoughtful estate plan can make your heirs lives easier. But it is your parents’ estate planning that will make your life easier.

    Not every family has fostered the ability to speak openly in love. But if you have begun that process, here is an outline of what grown children need to know about their parents’ business. In fact, adults of any age should update their estate plan every year.

    And, as a parent, if you are willing to share some of this information with your children—especially if one of them is also the executor of the estate— they’ll appreciate having the facts and be more prepared emotionally when the time comes. They will know your wishes ultimately anyway, and good communication will lessen any surprises ahead of time. They will benefit from knowing the answers to the following questions:

    Do you have enough saved for a comfortable retirement? Many financial planners use a safe withdrawal rate by age to make sure the clients will still have enough money toward the end of their retirement. But, this isn’t always the case, and is worth looking into. If your spending is under this withdrawal rate, you have more than enough and probably can leave a legacy to your heirs. But, if you are over this rate, you may run out of money and have to compromise your standard of living abruptly. It may be uncomfortable, even embarrassing, for parents to share their finances with their children, but grown children often want to know how their parents are doing.

    Where are the important documents? The five documents your children should be able to retrieve quickly are: a will; a living will; a power of attorney; a directory of basic information; and the latest end-of-year financial statements.

    The directory of information should list the assets of your estate, along with the account or policy numbers and contact phone numbers. It also helps to indicate your intentions for the distribution of each asset, which will help confirm you have the correct titling and beneficiary designations on every portion of your estate.

    You may have structured your will to divide your estate equally among your children. But, if you have tried to make it easy for one child to access your bank accounts by adding his or her name, you have overridden your estate plan and left that child joint tenancy with complete rights of survivorship. This can be a problem.

    Titling and beneficiary designations are legal estate planning actions. It’s best to review them with your legal advisor. Various types of assets are best designated differently in the estate plan. This is not the occasion for do-it-yourself thrift. It is a rare family that has compiled and reviewed a complete list of estate assets: bank accounts, investment accounts, retirement accounts, real estate holding, life insurance, health savings accounts, and so on.

    Are there any special bequeaths? Any promises you have made should be documented. Your good intentions won’t matter if you aren’t around to implement them. If you have promised money to a charity, and want that obligation kept, document it. If you have promised to loan a child money, document it. If you have promised to help fund your grandchildren’s college education, document it. Without documentation, none of these promises can be kept if you aren’t around to make the decisions.

    Are there plans to remarry? If parents have remarried, intergenerational estate planning is even more critical. Prenuptial agreements and careful estate planning are required in the case of second marriages, to avoid disinherited children or grandchildren from the first marriage. The default is rarely a good option.

    Do you have any prepaid funeral arrangements? Do you want to be buried or cremated? Do you have any preferences for a memorial service? Although it may seem macabre to plan your own funeral, a memorial service takes time and thought. It will be that much more special and comforting to your family when it is filled with your favorite music and readings. Encourage your children’s interest in your estate planning. Most of the time, their intentions are honorable. They may simply want to understand your values and therefore your wishes.