• SELLING OF BODY PARTS IS ON THE RISE for many Americans who haven’t experienced the ‘recession is over’ political hype, and thanks to internet search engines and exchanges making connection easy. Hair, eggs, breast milk and even kidneys are among the top Google searches, many with daily ask & bid prices. Nearly 75% of breast milk sold online is tainted with high-level bacteria – even frozen milk – but sales are strong; Hair is priced around $35 to $50 per inch depending on quality & length; Egg donors can be compensated up to $50,000 for contributing six cycles; and, while kidney sales are risky and illegal in the U.S., they’re priced in the neighborhood of $15,000- so the fact “that people even explore it indicates still a lot are worried about their financial outlook.” [BLOOMBERG BUSINESSWEEK – Oct 21, 13]
  • WEALTH PROTECTION IS ABOUT “SAFEGUARDING ASSETS FROM CREDITORS AND PREDATORS.” Structuring an effective shield involves simple steps, like (1) Obtaining ‘umbrella’ liability insurance at relatively nominal cost; (2) Setting up an Irrevocable Trust, typically combined with estate planning; (note: the customary Living Trust utilized for probate avoidance does not provide asset protection); (3) Maintaining ‘separate property’ status for inherited or pre-marriage assets; (4) Setting up joint and ‘informal partnership’ accounts to preclude joint liability risk; (5) Creating legal entities for business activities and real estate properties (especially rentals) to preclude personal assets from becoming ‘at risk.’ DCG has decades of experience in these areas – where failing to plan is often planning to fail. [GERBER & CO. NWSLTR – Oct 16, 13]
  • AMERICA IS THE ONLY ADVANCED COUNTRY THAT TAXES BASED ON CITIZENSHIP RATHER THAN RESIDENCE and chases people who live abroad for taxes on their worldwide income. Starting next year, beyond ‘reporting’ any foreign accounts holding $10,000, new regulations – FATCA (Foreign Account Tax Compliance Act) – require a 65-page tax filing, plus another 30-pages if one happens to be a foreign corporate Director. “Designed to catch tax dodgers, FATCA has made overseas financial firms (particularly banks & brokerages) “wary of serving even honest Americans,” and many are simply closing the accounts of U.S. citizens rather than risk hassle of dealing with IRS pursuits. Meanwhile, so far this year, nearly 2,000 citizens have given up passports or green cards and renounced U.S. citizenship simply to escape the hassle, risk and cost of filing – even though “most of the more than seven million living abroad end up owing nothing” because they get credit for payments to those foreign jurisdictions. [THE ECONOMIST – Oct 12, 13]
  • INSANITY HAS BEEN DEFINED as “doing the same things over and over again, expecting different results.” For many smart people, this is exactly what happens – utilizing the same tactics for people management, budgeting process, resource allocation, etc, and every year essentially achieving the same non-optimal results. Among the ‘refocus’ strategies which successful companies utilize to increase performance & profitability are: (1) Strategic Planning sessions which envision a ‘new startup’ business – considering whether previously/presently allocated resources would still be appropriate if the division/sector/ product/investment were not already in place; (2) Changing the “strategy setting rhythm to share unrefined direction early on, rather than wait to issue a more complete plan that may arrive too late to make a difference; and (3) Building flexibility into the process… by adopting a ‘rolling budget,’ a discretionary pool that can be allocated over the year rather than at a single point on the calendar… allowing flexibility in volatile emerging circumstances.” DCG has decades of experience helping organizations to implement strategies more effectively and to overcome inertia. [McKINSEY QUARTERLY – Oct 13]
  • “READING FICTION ENABLES BETTER UNDERSTANDING OF OTHERS’ FEELINGS AND PERSPECTIVES… helping one become a nicer, more empathetic person.” According to a study by psychologists at New School Social Research, after reading as few as ten pages of literary fiction, versus others who read non-fiction articles, ‘emotional intelligence’ was heightened – enabling readers to “look at pictures of peoples’ eyes & faces, and then tell what emotions were being felt… likely because fiction forces the reader to contribute personal interpretations to reconstruct the mind of the character… which, in turn, facilitates better empathizing with others and navigating complex social situations in real life.” [THE WEEK – Oct 25, 13]
  • THOUGHT FOR THE WEEK: “The essence of success is that it is never necessary to think of a new idea. It is far better to wait until somebody else does it, and then copy him in every detail except his mistakes.” – satirist Aubrey Menen