Monday Morning Coffee

Hello all,

“2011 = 2012”

I was talking with Mark about business planning for 2012 (more to come on that next week) and he was pointing out the time to start planning for next year is now. Traditionally Lisa and I would start looking at her business plan for the following year around the end of November or beginning of December. After hearing his reasoning for starting now I took his advice, Lisa and I sat down with a glass of wine over the weekend and got to work. After doing an initial review one thing stood out, (which is the point of the coffee this week) for two reasons it looks like a lot of the business she generated this year will be moving to 2012 closings which I imagine is a trend throughout the office. The first reason of course is short sales, between the 2 office we have 57 short sales under contract. This is business that we generated in 2011 and in a traditional market would have closed this year. However being short sales we do not know when they will close, it looks like they will move into the first quarter of next year. The second reason is consumer confidence, many clients have started the process but pulled back a bit because they are not sure of the economic future. The short term angst of course is closings will be down for the end of the year, however if we keep our eye on the big picture it sets up well for 2012. If we do all of things we are suppose to do now, business planning, marketing, hitting our sphere, taking the new Buffini course in February… Plus you add in the overflow business moving to the first quarter next year we could pick up a lot of momentum for the year. So let’s keep the foot on the peddle, finish the year strong and out work the competition.   

INSPIRATION FOR TODAY:

"If your riches are yours, why don't you take them to t'other world?"
 

- Benjamin Franklin

LEAVE A LEGACY!

In one of William Bennett's books, he tells a story about Ben Franklin's death. It seems that old Ben made a special gift in his will. In it, he left 1,000 pounds to the cities of Philadelphia and Boston with specific instructions. They were to set up a program of loans to young men under the age of 25, married, and who had successfully completed an apprenticeship, needing startup money for a trade or business. The money was to be loaned at 5% interest. The loan program was to continue for 200 years.

At the end of 100 years, the two cities were to withdraw $100,000 each for public projects, and continue lending the balance as stated above. At the end of 200 years, the fund was to be split between Philadelphia, Pennsylvania, Boston, and Massachusetts. In the year 1990 there was $6,500,000 in the fund. For 200 years, Ben Franklin helped young men get started in business by making those funds available, and had $6.5 million left over.

Just think of the many ways you and I could benefit our families, the community, or the lives of total strangers if we just took the initiative exhibited by Ben Franklin. By setting up a similar fund that earns just 5%, it would contain $17,292,581 at the end of 200 years. The purpose could be educational loans for family members.

Set aside $1,000 now and add just $100 per month to it for ten years, earning 5% on loans made from the account, and the fund would have $17,157. After the ten-year period of adding $100 per month, no more money is added and it continues to be loaned at 5% for the next 190 years. At the end of 200 years, the fund would contain $181,141,192. At that point, it could be converted to an outright "grant" program to which family members could apply for education funds.

Instead of focusing on just your immediate family, think about the legacy you could leave by planning much further into the future. Thanks to the "future value of money" concept, you could provide valuable support to many future generations. It's just a thought, but why couldn't we give it a try?