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Building a Sustainable Generation
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Top Latina CFP® , Elaine King, Shares Expertise with Key Media Outlets in the Latino Community
Did you know that 4 in 10 Americans have lost at least part of their income due to the Coronavirus pandemic?  As a result, the US government has sent out several stimulus payments, the most recent one in March 2021. Receiving a stimulus check can be a great boon for families that have suffered financial losses during the pandemic. But, what is the best way to spend your stimulus check? This is a question that many Americans have.  Elaine King, a bilingual financial advisor, has shared her years of experience and knowledge working with families with several media outlets. Through these interviews, she helped spread important knowledge about personal financial planning to the Latin community.  Specifically, she spoke with el Nuevo Heraldo, the leading Miami newspaper, about how to be smart with your stimulus check funds. Some of the advice she gave was:
  • Lower your fixed costs like rent and utility bills as much as possible.
  • Save automatically before spending. Make it a habit to save!
  • Avoid using credit cards for wants. Instead, use debit cards so that you can only spend money you already have in your bank account.
  • Make clear financial goals and write them down.
King was also featured in Telemundo, the most popular Spanish media company in the country. In this news segment, the financial planner with expertise in families suggested that if possible, families should put aside some of the stimulus money for their children’s education. Other good uses include investments in a small business or in education. However, if you have crippling debt at high-interest rates, putting some of your stimulus money to pay it off is also a good move, she said.  Do you need some help making smart financial decisions for you and your family or your team? Consider signing up for a course that will teach you sound family finances so that you can succeed and achieve your financial personal and professional goals. 
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Leading Latina Finance Expert, Elaine King, Promotes Financial Education for the Latinx Community and Women

Did you know that in many parts of the world, laws at the beginning of the 1900s didn’t allow women to inherit property, vote, or get a loan?

Women have come a long way in terms of legal rights. However, there are still hurdles standing in the way of success for women, and one that Elaine King sees is financial knowledge. As she mentioned in a recent podcast, women know less about retirement than men. Similar barriers are present in the Latinx community. 

Elaine King, a bilingual Certified Financial Planner Professional and expert in family business, is on a mission to change all of this. In an ideal world, women and the Latinx community would have better access to education and resources that would help them become successful financially. Elaine King is contributing to make that world a reality!

 

Recently, she partnered with Intuit Turbo Tax to provide Latino youth with access to educational content. As part of the program, Intuit and the Hispanic Heritage Foundation gave higher education scholarships to Latino students. Specifically, Elaine King, alongside Miguel Burgos, CFP, led a webinar to educate the youth and parents on family and money matters. From budgeting to understanding credit and financial and tax planning, the webinar prepared Latino youth for success. 

 

Intuit also featured Elaine King on their blog, where she told the story of two successful women who inspired her growing up. Through telling these stories, King hopes to inspire other women in their journeys to financial success. 

 

Additionally, the Hispanic financial planner was a guest on the Breaking Money Silence podcast, where she highlighted the need for more financially successful women and Latinx role models. In this podcast, she outlined some of the things you should look for in a money mentor. Some of the key aspects include:

  • Find a mentor who shares your values

  • Your mentor should be at peace with money and not complain about it

  • It should be someone who has their own finances in order

Discover more by listening to the full podcast! 

 

Do you want to partner with Elaine to bring financial knowledge to women and the Latinx community? Contact her today!

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Elaine King, Latina Financial Expert, Launches New Book for Family Enterprises
Did you know that Elaine King has helped over 100 family businesses achieve success in their finances, and in passing on family values? The bilingual financial planner, who also has an MBA in International Business, believes that passing values on to the next generation is more important than passing down money. Yet, she admits that if you can manage to pass on both things, you’ll create something powerful for your family and society.    These, and others, are some of the lessons that Elaine King offers family businesses in her brand new book, 10 Mandamientos de las Familias Empresarias. Endorsed by leading family business founders, Ines Temple and Rolando Arellano, you won’t want to miss this book! According to Temple, bestselling author of Usted, S.A., “The book is useful, practical, easy to read, and comes from the heart.” Published by the leading Spanish language publisher, Grupo Planeta, the book is ideal for any family business looking to achieve both business and familial success. The book officially launched at an event at Planeta de Libros. It is available for purchase here In a recent column in the prestigious Peruvian financial newspaper, Gestión, Elaine King shared other gems of wisdom for family businesses. Specifically, she explored the importance of women in family businesses. While in the past, women were often overlooked for leadership positions, King asserts that women have a lot to offer to the family business. However, involving women in the family business takes a concerted effort. Social norms must be set to the side. In addition, you should consider your daughter’s gifts and interests and find ways for her to use them either in or outside the family business.  Want Elaine King to help you and your family business? Elaine King can help you with family governance, succession, creating a family foundation, and more! Contact her to discuss your needs today!
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How to Keep Your Family Business Together, But Separate from the Family
As Jay Hughes says, a family is like a mosaic. Each individual person is their own color, but together, the pieces make up a beautiful piece of art.  Despite this beautiful artwork that can be created by the family, a family business should be kept somewhat separate from the family. Why? Imagine that you have two children. They both work at the family business, one of them on the sales floor, and the other in the office. However, they constantly fight and argue over who will be the CEO one day in the future. It’s like a modern-day Cain and Abel, that could also result in the tragedy of a broken family.  In this family, some organizational tools are needed to keep these family conflicts from creating problems in the family business. 

Tools to Separate the Family from the Business

Family and business should be together, but separate. How? With family governance to outline the responsibilities and roles of each member of the family. Some of the key points include:
    • Having a succession plan. This helps clear up misunderstandings and avoid squabbling among children. 
    • Managing finances. There should be separate business and family accounts. Plus, a percentage of earnings should be re-invested in the business, while another portion goes to stakeholders. 
    • Holding regular meetings. Hold regular meetings to discuss family concerns and business concerns separately. 
    • Exit plans for family members who want out. What if a family member no longer wants to be involved in the business? There should be a clear exit plan so that there are no hard feelings when this happens. 
    • Strong corporate and family governance plans. There should be separate plans for running and organizing the business and the family. 
With these and other strategies, you can help make sure the lines don’t get too blurred between business and family. 

Signs Your Family Needs to Separate the Family from the Business

Answer these three “Yes or No” questions:
  1. One person or a small group of people make the big decisions in my family’s business.
  2. The priorities of the family business override your own priorities.
  3. Your equity is made up of more than 75% of your business and your personal cash flow depends on the company.
If you answered “yes” to 2 or more of these questions, you probably need help separating the family from the family business.  With the knowledge of an expert in family businesses, you can turn this situation around and get the necessary help to ensure each piece of your family mosaic shines with all their strength.  Need help with your family business’s policies? Follow Elaine King on Facebook, Youtube, Instagram, and Twitter for more strategies for intergenerational family businesses. Or, set up a consultation today!  
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Peter Buffet: A Lesson in Responsibility to Grow on Your Own
Son of famous investor genius, Warren Buffet, Peter Buffet has a very different gift from his dad’s: music. Instead of spending his time analyzing stock markets and investment trends, Peter dedicates himself to composing songs and playing instruments.  Believe it or not, in his own way, Peter Buffet is supporting the family business! The ultimate goal of every family business is to grow into the future. However, not all family members are destined to take an active role in the business itself. 

An Apple That Fell Far from the Tree

When I met Peter Buffet in London on a trip, he told me a funny story about his youth. When he was 19, he received $90,000 worth of Berkshire Hathaway stock - something that today could be worth over $200 million - he cashed in. He used the money to support himself as he sought to begin his career as a composer. He dropped out of school and moved to San Francisco with the goal of becoming a professional musician. After a lot of hard work and effort, it paid off and he got his first big break with MTV.  Peter Buffet certainly didn’t follow in his father’s footsteps and fell quite far from the apple tree. However, that doesn’t mean he didn’t succeed! All children should be given the chance to pursue their dreams as Peter Buffet did. 

Every Member of the Family Is Unique

Every member of the family has their own unique skills, interests, and abilities. Find your role in the business, whether you’re a cheerleader from afar or the CEO. Know your gifts, strengths, and weaknesses and use them for the good of the family business.  Some family members support the business by going to work at outside companies and learning there. They can bring an important outside perspective back to the family business.  Others support the work of the family foundation or simply participate in family meetings.  

Nepotism Has its Drawbacks

Each person who takes an active role in the family business should be highly qualified for the role. Rather than offering positions based on family connections, require family members to apply for jobs within the business just like anyone else would. This way, the success of the family business comes first.  Nepotism creates a whole host of problems for the business. Here are just a few:
  • Low morale and dissatisfaction due to perceived favoritism and unfairness in the workplace.
  • Loss of productivity due to poor work performance. When family members aren’t qualified for the positions they hold, it holds everyone back.
  • Increased risk of lawsuits. Although there aren’t so many laws directly prohibiting nepotism, it may be perceived as discrimination or a hostile work environment. 
Instead, put rules in place that guard against nepotism so that you can ensure the prosperity of the family business.  Need help with your family business’s policies? Follow Elaine King on Facebook, Youtube, Instagram, and Twitter for more strategies for intergenerational family businesses. Or, set up a consultation today!  
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The Gates Divorce: A Lesson in Always Being Prepared for Conflict
News of Bill and Melinda Gates’ divorce shocked the world. After 27 years of marriage and running an impressive foundation together, the couple has called it quits.  However, I’m rarely surprised by news of a split. I’ve seen even the happiest families torn apart over any number of disagreements.  That’s why, as a certified financial planner specializing in family enterprise, I always tell families to be prepared for conflict.  Conflict in the family is inevitable. It doesn’t always lead to divorce or splits among siblings, but even minor disagreements can lead to financial repercussions. 

Preparing for Conflict with Family Governance

Strong family governance can help mitigate conflicts. What does this mean? Family governance is a management and organizational plan for the family. Just like you might have corporate governance for a business, you also need one for your family.  One of the key aspects of family governance is communication. If you don’t organize meetings to discuss conflict as it comes up, it will fester. Gossip will run rampant and it will be impossible to discuss things calmly. However, if there is a regular space and process for discussing problems, you can keep conflicts in check.  There are three separate areas that require communication:
  • Family
  • Management
  • Ownership
Create separate meetings for these groups of people and make space to talk about relevant concerns. Be sure to set an agenda for each meeting and ask for input from all of the attendees.  Some common topics for family meetings include:
  • Succession
  • Inheritance
  • Roles and responsibilities
  • Education funds
  • A Family Foundation and its work
  • Conflict resolution
  • Preparing the next generation
Also, remember to bring in a mediator when necessary. A trained family mediator with expertise in family business can help resolve conflicts and create plans to navigate even the most difficult situations.  Looking for a mediator? Elaine King is a mediator of the Florida Supreme Court and a certified Family Business Consultant by the Family Firm Institute.

Make an Exit Strategy

You may think that you’ll never be the one to get a divorce or that your children will always want to be involved with the family business. However, we can’t see into the future! For this reason, I always advise clients to create clear exit strategies. For example, what if one of your children wants to sell out their portion of the family business? There are a number of questions to consider:
  • Can the child sell it to anyone or will the family make a rule that they sell it to another family member? 
  • How long in advance should the child give notice that they’ll be selling their portion?
  • Can the asset be broken into pieces or must it be sold as a whole?
Other concerns to consider include the death of an owner. Does the spouse inherit the asset? Or should it be passed on to one of the children? Or, in the case of divorce, will the assets be split 50-50? How will the children be affected by this outcome? By answering these questions ahead of time, you can avoid a lot of conflicts. Instead of haggling over the details, you can simply move forward because all of the details have already been decided ahead of time.  Remember, even the strongest, most tight-knit families run into conflicts now and then. Be prepared for them so that you can work through them successfully.  Do you want to learn more? Follow Elaine King on Facebook, Youtube, Instagram, and Twitter for more strategies for intergenerational family businesses. 
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How Receiving Inheritance Is Like Getting a Goose that Lays Golden Eggs
Imagine that from a young age, you knew that, someday, you’d inherit some of your grandparents’ great fortune. Inheriting intergenerational capital can be a great gift. However, it also comes with responsibility. It’s kind of like the story of “The Goose & the Golden Egg.”  Do you know that story?

The Goose & the Golden Egg

A countryman once found a wonderful goose that laid a golden egg every morning. The man took the eggs to the market to sell them. With time, he started growing rich. However, he was also an impatient man. Why did his goose lay only one egg every day? He wanted more! Finally, he was struck with an idea. If he killed the goose and cut her open, he could get all of the golden eggs at once! After cutting the goose open, he was very disappointed to see that there were no eggs inside.  Receiving an inheritance is like receiving a goose that lays golden eggs. If you try to get all the eggs out at once, it won’t get you very far. You’ll realize that you’ve spent all the money and have nothing left. However, if you take a different approach and try to grow the farm (and make more golden geese), you can build financial stability for a lifetime.  To do this, follow the one golden rule for receiving an inheritance. 

The Golden Rule for Receiving Inheritance

The rule is: You must care for and grow the financial capital you’re given in your own way.  What does this mean? It means you have to find a way to grow the goose farm. What you shouldn’t do is squander the financial capital by spending all of it on items that won’t appreciate in value and grow your capital. Instead, these examples create an excessive risk of loss.  For example, avoid:
  • Buying a car
  • Spending the money on living expenses
  • Using the money to travel the world
These examples won’t help you grow your capital. Cars become less valuable the moment they’re driven off the lot, and money spent can’t be gotten back. These examples are akin to cutting the goose open to try to find the golden eggs. You’ll end up without ANY golden eggs. So, what should you do?  Some of the things you could do with the wealth to build it and invest in your future are: 
  • Pay for a college education
  • Invest in the stock market
  • Use it as start-up money to start your own business
  • Invest in real estate
  • Save strategically
  • Expand the family business
All of these examples are great money-making activities. For example, if you get a college education, you’ll get a better job that allows you to make more money. Or, if you invest in real estate, you can rent out or sell buildings, again making money. Investing in the family business to add a new location, create a new product, or launch your online store, are other great ways to put your capital to work.  In families who hope to transfer intergenerational wealth, it’s important to teach the upcoming generations how to use the wealth in a smart way. We must teach them not to kill the goose, but to grow the farm and get more geese that lay golden eggs. This way, you can ensure that the family’s wealth will benefit many generations and the community in the future.  What will you do with your inheritance? Do you want to learn more? Follow Elaine King on Facebook, Youtube, Instagram, and Twitter for more strategies for intergenerational family businesses.
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Want To Invest? 3 Critical Things You Should Know Before You Put Your Money To "Work"
Are you ready to invest in the stock market? Whether you have $1000 or $1M to invest, there are a few simple rules that you should follow before going wild on the stock market.  If you don’t follow these rules, your investment experience could easily go on a downward spiral, leaving you in a bad position. So, what do you need to know?

1. Invest in Your Passion and What You Know

Do you know about the risks and possible gains involved in the medical sector? Or perhaps you’ve noticed news stories about green energy? But, before investing in these sectors, you should be familiar with the current trends and possible risks in these sectors.  A robust understanding of the sectors and areas you want to invest in will help you assess the possible gains and risks you obtain through your investments.  One way to invest in areas you know about while also helping the world is through impact investing. Through impact investing, you contribute to environmental change, support social and corporate change, and more, all while also growing your wealth. Impact investment involves investing in your passion or something close to your heart. For example, if you’re passionate about education, you could invest in new education technologies. Or, if you’re passionate about the environment, you could invest in green energy technology.  

2. Diversify Your Portfolio

While some stocks soar, others may plummet. Even out your risks by purchasing a variety of stocks.  For example, some experts recommend that to be truly diversified, you need at least 100 stocks. Another option might be to purchase a fund.  As Keynes said in the 1930s: “Markets can stay irrational longer than you can stay solvent.” In other words, markets don’t always behave as we expect them to.  So, for this reason, it’s best to purchase stocks across a variety of sectors and industries. That way, if one area doesn’t perform well, it may be evened out by better performance in another area. 

3. Know What Money to Invest

One question people often ask is how much money they should invest in the stock market. The answer to that question depends on how much cash you have available and how you plan to use it. For investing, you should only invest money you don’t expect to use in the next few years.  For example, let’s imagine you are saving money for a down payment on a house. You plan to purchase a house in about two years. So, it’s best you save that money in a savings account so that it will be easily accessible when you need it for the down payment. However, let’s imagine you want to save money for your retirement. You are 40 years old now and you plan to retire at age 65. In addition to your retirement account, you want to save some additional money. Because you won’t need this money for about 25 years, this is money that you could consider investing in the stock market to potentially obtain better returns. 

Create an Investment Policy Statement

In addition to following the above three rules, you should also create an investment policy statement with your investment professional.  This policy statement will help you outline what you’re comfortable with or the rules for play with your investment professional. For example, the statement will identify:
  • The level of risk you’re comfortable with (low risk, medium risk, high risk)
  • How much you will invest
  • Your annual loss tolerance limit
  • Your return goals (usually a percentage, for example 6%)
  • The responsibilities of your financial advisor
  • Portfolio guidelines (fixed vs. stock assets)
With these rules and your investment policy statement, you can be on your way to making sound investments toward a brighter future!  Do you need help making wise investments for your future? Contact Elaine, an expert financial advisor with 20 years of experience, for an appointment to discuss your investment plan.  Looking for more great investment education? Follow Elaine King on Facebook, Youtube, Instagram and Twitter.
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How to Involve Your Daughter in the Family Business (And Why it Matters)
Angelina Perryman is the new face of Perryman Construction, a building and construction services company in Philadelphia, PA. Representing the third generation in their family business, she is the first woman to take on a leadership role in the company.  More and more, women are beginning to take on essential leadership roles in multigenerational family businesses. Does the next generation of your family business include young women?  If you want to include your daughter(s) in the future of your family business, it will require you to intentionally make an effort to include her.  So, how can you do that and why should you?

Benefits of Women in Family Business

Women are the backbone of many family businesses. How so? There are many wonderful benefits that women can bring to the family business. According to the KPMG report titled The Power of Women in Family Business, women:
  • Bring emotional support to help their businesses and families succeed
  • Are holistic managers and leaders
  • Bring a diversity of views which leads to greater resilience and adaptability

How to Involve Your Daughter in the Family Business

Are you ready to enjoy all of the above benefits in your family business? Here are some ways you can work to make sure the female members of your family can join in and lead in the family business:

Throw Out Social Norms

Traditionally, boys are prepared to lead the family business through everything from family dinner conversations to schooling, and mentorship. Give these same opportunities and treatments to your daughters. For example, Angelina Perryman of Perryman Construction recalled in an interview how her father began involving her in the family business at a young age. For example, after school one day, her father showed her various logos and asked her opinion on them. Later, when she was older, her father asked her to type up contracts and read through them. Through these and other conversations about the family business, Angelina slowly became more and more involved and invested in her family’s business. After attending college, she took her current position as Vice President of Administration.

Choose Successors Based on Merit 

When you’re choosing the next leaders in your family business, make the choice based on merit and interest rather than other factors. According to Yashodhara Basuthakar, as quoted in the KPMG report, “While family traditions and social norms often impact the choice of women as successors, the research suggests that next-generation leaders will increasingly choose their successors based purely on merit.” For example, it can be useful to set up clear job descriptions and requirements and then choose the successor based on the best viable candidates. Remember, it’s possible to find a place for all of your children in the family business if they have the skills and desire to be involved. 

Validate Her Skills 

Support your daughter in her skills, both on the business side and on the emotional side. Let’s face it. In society, we often overlook skills that are traditionally attributed to women such as nurturing others and emotional labor. However, as you can see in the above benefits that women have to offer, these skills are also important to family businesses. So, it’s important to encourage and validate women’s skills in these areas to help them grow into leadership roles and use these skills for the benefit of the family business. Bring the best out in your family business by involving the young women of the next generation! Do you need help creating a succession plan? Make room for the women of the next generation with the help of Elaine King! She’s been working with multigenerational family businesses for over 20 years. Make your appointment with her today! Follow Elaine King on Facebook, Youtube, Instagram and Twitter.
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