Stupidest sales tip ever

Posted on April 17, 2016 by robertjrussellcompanies

The other day, I was listening to a sales webinar as part of my professional development. About a third of the way through, a classic sales adage popped up on the screen. The presenter made the point as if it were a total no-brainer that nobody in her right mind would question: “As we all know—all things being equal—people buy from those they know, like and trust.”

Sounds reasonable enough, right? In fact, I have agreed with this statement for years. But suddenly, it hit me that it was the stupidest thing I’d ever heard.

Why “all things being equal” is wrong. You’re probably thinking “Jill, have you lost your marbles? Everyone knows that that is the way people buy.” Let me tell you what’s wrong with this concept. Unless you’re selling commodities, nothing is ever equal. And beyond that, our job as sellers is to make sure things are unequal.

The truth is it all starts with us, what we bring to the table (our ideas on how prospects and clients can address their issues, our insights into ways prospects can more easily achieve their objectives and the useful information we can share with them on a variety of topics).

Become the better option. Inequality is evident in how we interact with our customers, too. Are we curious about how things are or more interested in pitching our stuff? Can we guide prospects through a complicated decision-making process or help them build a solid business case for change? Or are we more focused on closing the deal?

Your product or service may be pretty equal to your competitors’, but there’s no reason you have to be. Your job is to stand out from your competitors, to be an invaluable resource they can’t live without. Of course, that means you’ll have to do a little more work to turn yourself into a competitive edge. But let me tell you something: Every single minute you spend doing that will pay off.

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The Power of Beer and Cheap Houses

Posted on April 16, 2016 by robertjrussellcompanies

Usually I try to limit my reviews to books, but every once in awhile I’ll find an excellent real estate nugget inside a long-form article that I can’t help but share. That happened this week while reading the March 2016 issue of The Atlantic. In it, one of the magazine’s national correspondents, James Fallows, described what he learned about resilience after spending the last three years visiting small towns and modest cities around the United States in a single-engine plane.

Wil Stewart, 2015 | Unsplash

Wil Stewart, 2015 | Unsplash

In the dark days that lead up to a presidential election—wherein candidates inevitably benefit from pointing out all the ways in which our country is failing—it can be tough to see the path to better times. That’s not the case for Fallows, however. He says that while many ordinary Americans he met were similarly pessimistic about the country at large, they generally felt their particular communities could claim a bright future ahead.

So why, at a moment when Americans are feeling rather low, are small towns and cities thriving? In the course of his 54,000-mile journey, Fallows compiled an impressive list of traits that marked successful places, or at least areas that were on the mend from some pretty difficult circumstances. I encourage you to read the whole piece, as many of the patterns he picked out are both surprising and encouraging. But for our purposes, let’s look at just two of my favorites, shall we?

The first, perhaps unsurprisingly, is real estate. Specifically, homes that are in the affordable range. Here’s what Fallows has to say about the effect that has on a community:

A great, underappreciated advantage of “everywhere else” in America: The real estate is cheap. In New York, San Francisco, in a half dozen other cities, everything about life is slave to hyper-expensive real estate. In Sioux Falls, South Dakota; in Allentown, Pennsylvania; in inland California; across the south, costs are comparatively low. This has an effect—on how much you have to work, on what you think you need, on the risks you can take. Every calculation—the cash flow you must maintain, the life balance you can work toward—is different when a very nice family house costs a few hundred thousand dollars rather than a few million.

…In Fresno, Heather Parish, the publicity director of a successful arts festival called the Rogue, said that cheap real estate would be the basis for the city’s artistic future. “Fresno is the bohemia of California,” she told us when we visited. “That’s because you can afford to live here!”

Of course, this revelation is nothing new for the real estate industry. But coming from a publication that has established itself as a deep thinker on the future of cities, I take it as a good sign. Perhaps it will give some permission to tone down worries over slow home price appreciation in their individual communities and appreciate the silver lining of affordable homes.

And how about the gold lining I promised in my headline? Yes, the very last—and perhaps most certain, if you read it closely—of Fallows’ “11 signs a city will succeed” is related to beer. And as a homebrewing author myself, I couldn’t let that pass without note:

One final marker, perhaps the most reliable: A city on the way back will have one or more craft breweries, and probably some small distilleries too… A town that has craft breweries also has a certain kind of entrepreneur, and a critical mass of mainly young (except for me) customers. You may think I’m joking, but just try to find an exception.

 

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29 things winners don’t do

Posted on April 15, 2016 by robertjrussellcompanies

Everyone wants to be a winner. Here’s a list of 29 things a winner never does (and neither should you).

1. Winners don’t make excuses for their mistakes. They learn and grow.

2. Winners don’t whine when things don’t go their way. They work on figuring it out.

3. Winners don’t copy what other people are doing to be successful. They do their own thing.

4. Winners don’t stay down on the ground when they fall. They come back stronger.

5. Winners don’t shirk from the hard work that success demands. They sweat, fight and bleed.

6. Winners don’t adopt the thinking of the status quo. They think for themselves.

7. Winners don’t ignore their own weaknesses and bad habits. They fix them.

8. Winners don’t pretend they’re perfect. They’re maniacally focused on improving.

9. Winners don’t look down on others who aren’t winners. They push them toward greater achievement.

10. Winners don’t overlook the details that drive better results. They are deliberate about being better.

11. Winners don’t care that other people aren’t encouraging them. They find inner motivation.

12. Winners don’t spend time correcting everyone else’s perceptions about them. They focus on being awesome.

13. Winners don’t run faster than their support team can keep up. They’re team players.

14. Winners don’t let money make them arrogant or take stupid risks. They stay financially disciplined.

15. Winners don’t complain about things that are outside their control. They focus on action.16. Winners don’t waste their time doing things that don’t matter. They prioritize how they expend their energy.

17. Winners don’t try to be good at everything at the same time. They do one thing well at a time.

18. Winners don’t give up when things get tough. They do the hard things that success demands.

19. Winners don’t listen to the doubters, critics or skeptics. They stay mentally disciplined.

20. Winners don’t participate in mediocre activities. They focus their energy on activities that matter.

21. Winners don’t gossip, gab or talk badly about other people. They’re kind.

22. Winners don’t forget to follow up and follow through on what they have promised. They deliver.

23. Winners don’t think about defeat or success as final. They continue to set bigger goals.

24. Winners don’t blame other people for their own mistakes. They take responsibility for lives.

25. Winners don’t become complacent about past success. They push themselves each day.

26. Winners don’t let current chaos distract them from future success. They get things done regardless.

27. Winners don’t put their egos ahead of achieving epic results. They work on staying humble.

28. Winners don’t lose sight of why they’re doing what they’re doing. They stay inspired.

29. Winners don’t think of themselves as anything other than winners. They reject negativity.

Improve your chances of success by adopting these winning mental habits.

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3 Surprising Paint Colors Home Owners Hate

Posted on April 14, 2016 by robertjrussellcompanies

Home owners say they like color in their homes but they definitely have some hesitations in using it to decorate their spaces, according to a new survey by Better Homes and Gardens of nearly 400 home owners.

The survey found a general consensus that these three colors, in particular, home owners remain the most hesitant about in their decorating:

  • Orange is “WAY too loud for me.”
  • Red is “too overpowering.”
  • Green is “too institutional.”

The survey found that 58 percent of respondents say orange is the color they are least likely to decorate with, followed by black (43%) and violet (42%).

So what do they like? Sixty-two percent of respondents say they are most likely to use shades of blue in decorating when it comes to color. However, in general, most home owners say they prefer neutral interior walls and pops of color through accessories and furnishings.

If they were to use color, home owners say they are most likely to use it in the family or living room (63%), kitchen (53%), and bathrooms (52%). The areas where they are least likely to use color are in the foyer (36%); dining room (24%), and adult bedroom (24%).

Home owners show some of the most willingness to use color for their front door. Forty-eight percent of survey respondents say their front door is painted a color – such as blue, green, red, brown, or gray.

Home owners may be hesitant about color because they just can’t decide on the right color. Twenty-four percent of respondents admit to having no eye for using color, and 40 percent say they fear that any color they did choose they would quickly grow tired of.

FOR THE COLOR PHOBIC …

Color, however, can transform an otherwise dull, forgettable room into an eye-popping, memorable one (in a good way, when used correctly!).

Accessories and accents may be less of a commitment for those scared of color. Sixty-percent of respondents say that adding throw pillows and blankets is one of the top ways they could bring color into a room; flowers are another way.

Or, for those who want to try some paint but are unsure of a palette, Better Homes and Gardens offers some help. BHG just released its Color Issue, along with its annual Color Palette of the Year. Here are their top picks for colors for 2016:

BHGcolorpalette

Photo credit: Better Homes and Gardens

  • PINK: Use it as a neutral paired with blues, blacks, and metallic accents. (Example: Benajmin Moore/Gentle Blush 2084-70)
  • BLUE: Try this midtone blue, which offers a “big, gregarious personality.” (Example: Pittsburgh Paints/Smoke Bell PPG451-5)
  • GRAY: Show off a classic and contemporary look. “The popular new kid on the color block isn’t going away anytime soon.” (Example: Dunn-Edwards/Foil DE6360)
  • GREEN: Mix it with a hint of silver to give a space a modern retro vibe. (Example: Ralph Lauren Paint/Smoke Bekk RL1599)
  • ORANGE: Love it or hate it, an energetic orange can pack some serious punch. (Example: Sherwin Williams/Tango 6649)
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Does DOL fiduciary rule comply with Obama executive order?

Posted on April 13, 2016 by robertjrussellcompanies

President Barack Obama speaks to media during the Democratic Governors Association Meeting Feb. 19; Sec. of Labor Perez is seated far left. (Photo: AP)

The Investment Company Institute has requested a meeting with a chief administrator at the Office of Management and Budget regarding the Department of Labor’s regulatory impact analysis of its proposed fiduciary rule.

That request comes as OMB is likely entering the final stages of its review of the DOL proposal.

Some predict OMB will release the rule as early as the second week in March; most are calling for a release by the end of March.

How will the DOL fiduciary rule’s primary proposals affect the retirement industry? DST kasina survey reveals RIAs will benefit, for…

The DOL’s rule intends to redefine who a fiduciary is as it relates to advisors to most of the country’s defined contribution plans, and all advisors to IRA owners.

The regulatory impact analysis the DOL provided as part of its proposal does not justify the “massive overhaul of the retirement marketplace that the rule as proposed would impose,” according to the letter ICI sent OMB requesting a final meeting.

The ICI, which represents the interests of mutual funds and investment managers, and other stakeholders have previously made public their concerns over DOL’s regulatory impact analysis in comment letters posted to the DOL.

But this time the ICI’s letter brings specific attention to Executive Order 12866, and does so as Republican Senate staffers have produced a report suggesting the DOL willfully ignored recommendations from the Securities and Exchange Commission to conduct a more thorough cost-benefit analysis of the proposal.

That report, produced by the majority staff to the Committee on Homeland Security and Governmental Affairs, also notes Executive Order 12866, which was issued by President Clinton in 1993, as well as Executive Order 13563, which was issued by President Obama in 2011.

Executive Order 12866 says regulators “shall assess both the costs and the benefits of the intended regulation” and that a regulation be adopted “only upon a reasoned determination that the benefits of the intended regulation justify its costs,” according to a copy of the order.

President Obama’s executive order is said to reaffirm the principals created in EO 12866, according to a summary of the orders by the Environmental Protection Agency.

EO 12866 also requires regulators to identify “available alternatives” to proposed regulation.

In the Republican staffers’ report, communications between regulators reveal that SEC staff urged DOL to “consider quantifying the costs and benefits of all the alternative approaches we considered and rejected,” the report says.

But a DOL official rejected that recommendation, writing in a communication to SEC that, “we think this would be extraordinarily difficult and would appreciably delay the project for very little return,” according to quotes provided in the Republican committee staffers’ report.

The question of timing has of course loomed large in the debate over the proposed fiduciary rule.

Proponents of the rule and the Obama Administration have argued that legislative attempts to make the SEC the lead regulator in crafting a fiduciary rule, and other efforts to require Congress to approve a new rule, amount to stall tactics.

Opponents of the rule say DOL is racing to finalize a rule by the end of President Obama’s final term.

In its letter to OMB requesting one last chance to make its case, ICI retreads several arguments that it says prove the inadequacy of DOL’s regulatory impact analysis.

The often-cited claims that investors lose $17 billion annually to conflicted advice are “just wrong,” the ICI letter says.

ICI also argues that brokers earnings on commission-sold products are often less than fees fiduciaries charge for advice, a recognizable argument to those familiar with the long debate over the DOL’s rule.

Moreover, ICI says DOL’s regulatory impact analysis fails to account for the societal harm that would result from reduced access to investment advice for low and middle-income savers, an unintended consequence of the proposal, argue its opponents.

A request for comment to the DOL as to whether or not the proposed fiduciary rule complies with Executive Orders 12866 and 13563 was not returned.

A request to the ICI as to whether OMB will agree to meet the trade group was not returned before going to print.

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AARP Strives to Improve Community Livability

Posted on April 12, 2016 by robertjrussellcompanies

The choices people make when deciding where to live tend to be driven by their current circumstances, such as their income, health, and whether they have children, but people tend to avoid thinking about how things will change as they get older and their needs evolve.

That issue is at the heart of an effort by AARP to encourage communities and individuals to plan for the future when they make decisions about their homes and neighborhoods. The organization’s Public Policy Institute is working to help local leaders identify issues that may make it hard for people to stay as they move through different life stages or encounter unforeseen obstacles.

As part of the initiative, the institute has developed an online index that rates communities using a variety of factors, including the availability of accessible housing, public transportation, quality healthcare and good schools.

“People don’t necessarily understand what they may need years from now,” said Rodney Harrell, the institute’s director, livable communities. “We need to actually help people think about that, because nobody wants to get older.”

What makes a city livable?

The type of housing in a community—and its affordability—is particularly important to determining how livable it is, Harrell said during a recent REALTOR® University presentation at NAR’s Washington office, because the type of home that suits a person or family will change as their lives evolve.

Transportation options are also critical, he said, because people used to driving need to have other options for getting around if they are no longer able to get behind the wheel.

Harrell said that while many communities offer a range of features that make them appealing, no one city in the country has the perfect mix of livability characteristics. In addition, many communities work particularly well for certain people even as they are challenging for others, he added.

For example, a car-dependent suburb without public transit may be fine for people who are able to drive and can afford a vehicle, but challenging for those without the ability to drive, he said. Similarly, an area without many homes that can accommodate people in wheelchairs may not be a concern for a young person without physical limitations but could pose a problem if a family member suddenly finds it hard to climb stairs.

Another challenge for communities is that people have individual preferences about where and how they want to live—and those preferences will also change over time and are affected by factors  such as cost and availability, Harrell added.

“When you take those sets of preferences and those limitations, you end up with where people are,” he said. “A large part of our work is around building awareness [among] individuals and policy makers around how communities are structured and how that can impact the preferences of the people that are there now and will be there in the future.”

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Update on State Farm

Posted on April 11, 2016 by robertjrussellcompanies

State Farm Mutual Automobile Insurance Co., the largest U.S. property-casualty insurer, said 2015 profit rose 48% on investment gains tied to pharmaceutical holdings.

Net income increased to $6.2 billion from $4.2 billion in 2014, the Bloomington, Illinois-based company said Friday in a statement on its website. The 2015 results included a $3 billion increase in capital gains as the insurer booked profits when Actavis Plc completed its takeover of Allergan Inc., and Merck KgaA acquired Sigma-Aldrich Corp. State Farm had stakes in both of the target companies.

The insurer is one of the largest investors in companies including Walt Disney Co., Johnson & Johnson, Exxon Mobil Corp. and Wells Fargo & Co., and counts on long-term stock gains to overcome losses from car coverage. State Farm’s auto underwriting loss widened to $4.4 billion in 2015 from $3.4 billion a year earlier, as claims costs rose.

Chief Executive Officer Michael Tipsord is seeking to protect market share from rivals such as Geico and Allstate Corp. while contending with an industrywide increase in claims costs for auto policies. Insurers are concerned that, in the long term, car ownership will decline, squeezing insurance sales. The more immediate pressure comes from lower gas prices, which encourage drivers to spend more time behind the wheel, increasing the frequency of car accidents.

Related

For Auto insurers, the rate is there but where’s the profit?

The number of claims are increasing along with the cost per claim. And this trend shows no sign of slowing…

CEO transition

Tipsord was promoted last year to the top post from chief operating officer. He replaced Edward Rust, who oversaw the insurer’s expansion during three decades as CEO. State Farm also sells home insurance and life policies.

Rust’s compensation climbed 3.7% last year to $13.3 million, said Dave Phillips, a spokesman for the insurer. The figure is tied to results spanning three years, including metrics of financial results, growth, customer retention and employee satisfaction, he said in a phone interview. State Farm won’t release Tipsord’s pay until 2017, according to the spokesman.

Net worth, a measure of assets minus liabilities, climbed to $82.7 billion on Dec. 31 from $80 billion a year earlier.

The results at State Farm compare with a 24% decrease at Allstate, which posted 2015 net income of $2.17 billion. Tipsord’s company, which is owned by policyholders and has no publicly traded debt, reports results once a year and uses state accounting rules for insurers. Publicly traded insurers must use U.S. generally accepted accounting principles, making comparisons inexact.

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Are lenders misleading borrowers?

Posted on April 10, 2016 by robertjrussellcompanies

National Mortgage News recently spotlighted ways some mortgage originators unintentionally –or intentionally — mislead borrowers. Here are a few things to be on the lookout for.

1. The big deal. Lenders violate the Consumer Financial Protection Bureau rules if they advertise lower rates than they actually provide.

2. Doctor’s note required. Lenders cannot tell applicants with disabilities that they will need to provide a doctor’s note in order to qualify for a Federal Housing Administration loan. Applicants are not required to do so. In fact, the request is considered a prohibited form of discrimination.

3. Hidden kickbacks. Lenders cannot refer borrowers to other parties but then fail to disclose to the borrower that they have an arrangement involving payments for referring clients to the third-parties. CFPB considers that a deceptive marketing practice.

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Retirement and Life Insurance

Posted on April 9, 2016 by robertjrussellcompanies

Many younger people never consider how life insurance could be important to them until it is time for retirement. We will explore how life insurance and retirement go hand in hand.

If retirement is on your horizon, consider the many uses of life insurance in your golden years.

When people buy their first life insurance policy, the goal is often straightforward: to help protect their beneficiaries from economic hardship if they were to pass away.

But as life goes on, income replacement may become less of an issue, and the use of life insurance can expand and change to address retirement-related goals. According to Marty Flewellen, chief distribution officer of Transamerica’s Life & Protection division, permanent life insurance can help to maximize retirement income for an insured or surviving spouse. Alternately, it can function as an efficient estate planning vehicle, transferring liquid assets to beneficiaries, generally tax-free.

The Sweet Spot: Age 50-55.

If you’ve recently joined the over-50 club, “Now is the perfect time to schedule a policy review with your insurance agent or financial advisor,” says Flewellen. “Fifty-five is the sweet spot, but when you look at the numbers and see how much people have saved for retirement, it’s clear they’re not getting around to it soon enough. I encourage people to review their retirement position anytime between 50-55, while there’s still time to make course corrections.”

“Also, for insurability purposes, physical impairments can increase after 50, and for some, life insurance can become less affordable. If you think you’ll need more insurance, it’s better to buy it sooner rather than later.”

What to Ask During a Policy Review.

In this age bracket, your existing life insurance coverage may consist of any number of policies — term life insurance, permanent life insurance, group or even executive compensation packages. Your insurance agent can assess your current coverage with an eye toward your future needs, and help you address your retirement and post-retirement concerns.

As a former insurance agent himself, Flewellen says he would start with two questions. “First, I would look at it from an income standpoint in pre-retirement. Have you accumulated enough wealth to replace income and keep your family in the world you want them to be in?” As part of this discussion, he suggests identifying any existing or upcoming coverage gaps, and looking at how to address any remaining needs.

“Second,” he says, “I would be looking at post-retirement need for income replacement. Will there be enough assets to keep you, and if applicable, your spouse, financially secure over both your lifetimes?”

It’s a good time to review any existing permanent policies intended to provide supplemental retirement income, to make sure they are still on track.

Flewellen also recommends exploring how a new permanent life insurance policy could help maximize retirement income. “Life insurance,” says Flewellen, “can play a very significant role in protecting against the risk of outliving your assets.”

For example, at retirement some people have a pension plan option to take a single life distribution in a higher amount, or a lower distribution that covers a surviving spouse as well.

“Life insurance death benefit proceeds can supplement retirement income for a surviving spouse in that scenario,” Flewellen explains. “You could opt for the higher, single-life pension amount, allowing both spouses to enjoy the higher amount together. After the first insured dies, the life insurance death benefit would be paid directly to the surviving spouse, providing the income that would have come from the survivor’s pension.

The key, says Flewellen, is that any new permanent life insurance coverage should be looked at for the death benefit, rather than cash accumulation potential. “Although permanent life insurance policies can be designed to provide supplemental retirement income, there must be sufficient cash value in the policy to do so — and that’s something that can often take decades to achieve,” he says.

A Lasting Legacy: Using Life Insurance for Estate Planning.

Once retirement income needs have been adequately addressed, consider the role life insurance can play in meeting estate tax obligations and passing wealth to heirs efficiently.

People with considerable wealth may have significant non-liquid assets, such as real estate holdings. Upon death, the liquid nature of a life insurance death benefit can prevent a forced sale of non-liquid assets to meet an estate’s tax obligations.

No matter your financial standing, life insurance proceeds are paid directly to your beneficiaries tax-free, avoiding the probate process to which even middle-class estates are subject.

“It’s those proceeds,” says Flewellen, “that can help beneficiaries directly, including grandchildren just getting started in life, adult children who may be struggling financially, even favorite charities.” And while death benefit proceeds are typically paid out in a single lump sum, Transamerica now offers its Income Replacement Option, or IPO rider. This rider allows the policyholder to structure the payout in a series of monthly payments, or a combination of lump sums and guaranteed monthly payments, creating an ongoing safety net for the policyholder’s beneficiaries.

“I think there are a lot of people in my generation who have done well, realizing their children are probably not going to have the same kind of financial success that we’ve had in our lifetimes,” says Flewellen. “Life insurance can help to create financial security for the next generation.”

The Importance of ‘Mission Control.’

Once you’re in retirement, Flewellen, along with many financial experts, advises annual financial checkups with your advisors, to ensure your plans remain on track. Flewellen likes to use the analogy of flying a rocket to the moon. “It’s actually on track 1% of the time — that’s why there’s mission control. They’re there to make adjustments, and keep as close as possible to plan. There are so many variables, even in people’s personal lives, that even the best-laid plans require mission control.”

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Tax Deduction for Renters

Posted on April 8, 2016 by robertjrussellcompanies

A new bill hopes to provide some relief to renters who are faced with skyrocketing rental costs – by giving them a tax break.

If approved, the bill would allow renters to deduct what they pay for rent from their federal tax

Rep. Alan Grayson, a Democrat from Florida — who introduced the bill — cites the following example: Average taxpayers paying about $1,500 a month – or $18,000 a year – could possibly save $4,500 annually through the deduction if they fall in the 25 percent tax bracket.

Home owners can deduct on their taxes the interest they pay on their mortgages as well as their property taxes. For a home owner in the 25 percent tax bracket who is deducting $10,000 of interest that could add up to $2,500 in savings.

“Renters should be able to share in the tax savings,” Grayson argues. “This is a tax benefit that would go primarily to people who need it.”

But critics to the bill argue that providing tax incentives to renters would take away a strong incentive for buying a home. Also, they say many states already have their own tax credit programs for renters, such as ones geared to helping low-income or elderly residents.

Linda Couch, senior vice president for policy at the National Low Income Housing Coalition, says she doesn’t think the bill has much chance of being signed into law. But if it did, she says it could actually boost home ownership.

“It could help renters who are looking to become home owners, because it will lower their housing costs,” Couch says. “That savings could be put toward a down payment.”

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