Hardly anyone I know keeps those goals, others simply give up making them. Why is this so?Because most of them talk about it in the future like: “I’m going to grow my income by 40%”, and most don’t break it down into weekly or even daily challenges.

Speaking in the future puts you into a procrastinating mode. How about  changing it to affirmative present tense, with measurable actions:

~  “I increased my income by 40% by focusing on quality referrals and bi-monthly direct mail campaigns”

~ “I outsourced my admin and increased my prospecting activities by 25%”

This affirmative language sets the brain into motion, and attracting people or resources you never knew you had to achieve them.

Take a trip into the future and list down all the goals and achievements you want to see by this time next year. Be specific and give deadlines. List down sales goals, as well as personal, professional development and family goals.

Do it right now, before going any further.

Click Here for a Sample Goal Setting Template

Next you need an action plan to meet your goals. Start by answering these questions:

1. How do I see my business one year from now, what must have had happened? Think about the clientele you are serving, classes of business giving you income, family time you have.

2. In this year, what do I need to do to reach those goals? Think in terms of lead generation, client acquisition, business processes, skills and knowledge needed.

Breakdown the numbers into monthly, weekly and even daily targets. Example: To increase my network, I will join one association and attend at least one weekly networking session in the local chamber of commerce.

3. Because time is finite, where do I focus my attention at? Which areas can I streamline or out-source?

4. What are possible challenges and where can I get help?

Finally, most people leave their goals as it is on paper, and never carry through. Sometimes you just need to have a little push from an external force. Run through the Goals and Action Plans with your accountability buddy or coach. Get them to give you a nudge when you are behind.

Make the most out of your year! Make it the Best Year yet!

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US citizens are taxed wherever they are working on income, as well as interest and capital gains. The taxes are only off-set with valid tax-treaties, which Singapore does not have with US. In effect, a US citizen may be taxed twice.

To see the original article, click here.

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A new law governing insurance nominations came into effect on 1 Sep 09. This law clarifies exisiting uncertainties about nominations and trusts.  New policy holders and existing policies without nominations (not applied retrospectively) can now name beneficiaries and change them when the need arises. What should a Financial Planner know about this law?

Before this law was passed, only Co-operatives like NTUC can nominate and change beneficiaries to be recognised as lawful beneficiaries. All other insurance policy nominations are not recognised. Policy holders had to declare a Section 73 statutory trust which renders the nomination unalterable even if there is a divorce. Policy holders also have to get consent from beneficiaries, whould they wish to loan, cash out or withdraw an amount from the policy even if they are the rightful owner.

As a result of such confusion, insurance companies did away with nominations since 2002.

Under the Insurance Nomination Law, customers have the choice to make a trust nomination or a revocable nomination. A simple table explaining the differences is attached below:

Trust nominations have creditor protection and accrue to a separate estate (minimises estate duties currently zero in Singapore) .

Existing policies without prior nominations or new policies are eligible for this nomination.

So should policy holders go out there and start nominating their beneficiaries?

Without nomination, the proceeds from life insurance upon death will be paid to the estate, thereafter distributed by will or under intestacy rules.  This by itself can be a better arrangement, as you do not have to remember who you nominated for which policy and how much. Example if you have another child, the new child will not have been in the previous trust policy. And you’ll have to change all the nominations if you wish to change the proportions.

This can lead to unnecessary headaches when there are changes to family issues: deceased spouses/children, new child, unfilial children etc.

Just have a valid will that spells out the intention for the distribution of their assets.

Having said that, there are some situations this new law will be useful.

Example:

1. A grandparent buys a policy for the benefit of his grandchild only. A trust will safeguard the monies from creditors, and state clearly the intention of the policy owner that he intends this as a gift for the beneficiary. A revocable nomination can work as well, but will not have the benefit of creditor protection
2. The policy owner has intention to nominate non-immediate family members, firms or associations to policies they implement. (will be revocable but recognised as valid)
3. Any other policies implemented for a specific purpose for specific beneficiaries. In which case, they can use a trust nomination or revocable nomination.

As Financial Advisors, we’ll need to be aware of the two nominations possible and the impacts on control over the policy, creditor protection, estate protection and changing of nominations, so that we advise clients appropriately.

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