IPSSA RETURNLINE

Region 7 Review

A monthly publication for the members of IPSSA, Inc. – Region 7

Volume 1, Issue 12 January 2001

IPSSA, INC. REGION 7

Board Officers

Rick Bishop, Region Director (760) 730-3116
Gordon Pithart, Region Treasurer (760) 631-2388
Don Wall, Region Secretary (619) 579-9336

Director’s Corner

Well, pack it up, tie it down, and ship it out! The 2000 Year is over and a new year and a new millennium have begun. Blow out those red and green colored candles, pack Santa’s fat behind into that storage box, and finish that last gulp of eggnog in the fridge. It’s time to ready ourselves for a successful 2001! It’s time to evaluate what we did last year and make improvements. The dawn of the New Year is the time we awake to new challenges in our personal and business lives.

1. It’s too late to offset your income with deductions for business purchases for the 2000 tax crunch, but there is time to contribute to a retirement fund. With the exception of Social Security, a self-employed individual doesn’t have someone deducting earnings from their pay for their retirement. We have to invent our own strategy for a comfortable retirement. An IRA plan is an important tax-savings vehicle that everyone should consider. Designed for small businesses, contributions are fully tax deductible and earnings grow tax-deferred. An IRA offers higher contribution limits to most other retirement plans and is available to the self-employed.

2. Upgrade equipment. It’s a good time to look for ways to invest in the way we do business in 2001. There are
lots of technical gizmos to help you to perform your business functions with ease and a competitive edge. Take a look at the collection of components that we use on any given day, e.g., telephone, calculator, computer. Do you need to upgrade to a better model or maybe acquire a fax machine for those last minute proposals to impatient customers?

Keep in mind that these purchases are tax deductible against your profit that makes these purchases a win/win for you and your business. I hear people say that they are tired of buying new computers, cellular phones, and copy machines, but without these deductions Uncle Sam would have a lot more of our profit and we would be back in the Dark Ages hand writing statements to each customer and calling them at night to answer calls they made to us during the day. Thank goodness for cell phones, computers, and all their accessories. They make business easier and more profitable.

3. Get organized. It’s very simple but many people avoid this issue in their personal and business life. The lack of organized behavior usually proves critical when missed appointments and lost business leads happen regularly. Telling a potential customer that you missed the appointment because you lost their telephone number and appointment date doesn’t make for a great first impression. How we organize our paperwork is also important for referencing during the course of any business year. One never knows when the wrath of the IRS could "reach out and touch someone."

4. Find ways to streamline business operations. Create new ways to service your customer needs. We live during an age when credit cards from customers for repairs and monthly service fees allows them the freedom from writing you a check each month, and you have their money in your account the very next day ready to use. Publish a newsletter to your customers highlighting "specials" and explaining seasonal care techniques. Customers love to feel that they are informed and that you care enough to tell them.

5. Collect what is yours and be strict with your decisions. Keep your account receivables in order and current. Find new ways to collect from late payers (for instance, getting statements printed in a bright pink color to gain their visual attention. Be direct and firm when collecting what is rightfully yours. Keep a system for collection, with a specific date each month for payment and with "past due," "final notice," and "off service" notification documented and delivered.

6. Enjoy what you are doing and find a way to cope with the stresses that come with operating your own business. If we don’t "chill out" once in a while, we are doomed to "burn out." Every year I hear people talk about how they are going crazy during the summer trying to get to everyone and do all of the repairs from A to Z. Try to find some help with those tasks that don’t pay you a lot and concentrate on those that are more profitable. You’ll have more time to earn "smart" money and still service all of your customers’ needs.

Don’t get left behind in 2001 – be around for 2002!

Strategies for Financial Success

Money Saving Strategies for the New Millennium

by Pamela Laue, Independent Life Agent

Eighty percent of all Americans worry most that they will outlive their financial resources. What should you do NOW to avoid running out of money in your later years?

1. Take advantage of the power of Tax-Deferred Compounding. Whether you are self employed or have a 401K through your company, your best bet for high performance of tax-deferred savings is a Roth IRA. It’s still not too late -- you can open up a Roth IRA or contribute for the year 2000 all the way until April 15, 2001.

2. If you choose to convert your traditional IRA to a Roth IRA, you may never pay federal income tax on the earnings.

3. The High Price of Procrastination -- the earlier compounding begins, the more your money grows.

4. Take advantage of as many tax-sheltered savings vehicles as you possibly can -- just to invest in an open mutual fund or stock account is not taking advantage of the full POWER of your money and offers you or your business no protection in the event of an unforeseen accident.

5. Now that the market is down, it’s the best time to buy! You’ll see higher growth when you buy low.

Pamela Laue is an Independent Life Agent. She is available to speak at IPSSA Region 7 chapter meetings or for free portfolio consultation. She may be reached at (760) 598-3772.

Calendar Of Events

Tues., Jan. 23, 7:00 p.m. Region 7 Board Meeting, Amber’s Restaurant, San Diego. Bring your B. K. Taylor Award nominations.
Tues, Jan 30, 8 a.m. to 4 p.m, Compool, Practical Hydraulics, Scottish Rite Center, 1895 Camino Del Rio South, San Diego.
Feb. 8, 9, 10, 23rd Annual Western Pool & Spa Show, Long Beach Convention Center, 800-787-7727.
Sat., Feb. 17, 8 a.m. to 5 p.m., Advanced Water Chemistry Seminar, Holiday Inn Select, 9335 Kearney Mesa Road, San Diego.
Sat., Feb. 24, 13th Annual Installation Dinner Dance, Radisson Hotel, Newport Beach.
Sat., March 3, San Diego Table Top, Scottish Rite Center, San Diego.

New Postage Rates

Just a reminder – as of January 7, 2001, new postage rates are:

First class: 34¢ (from 33¢)
Additional ounces 21¢ (from 22¢)
Postcards: 20¢ (no change)
Priority mail: 1# $ 3.50, 2# 3.95
Express mail: ½# 12.25

Check out the Postal Service’s web site at www.usps.com for further information, as well as to find zip codes, calculate rates, change address, locate post offices, track/ confirm shipments.