Poked@MiamiHerald.com

The South Florida multi-cultural community is well known for the size of our hearts and willingness to give and organizations like the Urban League and Alonzo Mourning Charities are responsible for improving the lives of many deserving members of our community. According to the Florida based Council on Foundations, its 2000 members have estimated assets of $276 billion and made charitable grants of over $15 billion in 2006 with Florida rated tenth nationally. Foundations have always been integral to the art of giving, unfortunately, many of us aren’t ready to devote the time or able to afford the costs associated to administer our own foundation. With respect to Bill and Melinda Gate’s multi-billion dollar foundation’s the average person’s option to philanthropy? Quickly becoming the new philanthropist’s vehicle of choice are donor advised funds. A donor advised fund is a charitable vehicle set up under the tax umbrella of a sponsoring charity. An individual, family or corporation makes an irrevocable, tax deductible contribution of personal assets that includes cash, publicly traded stock, real estate and other assets like closely held stock and life insurance to the sponsoring charity. At any time thereafter, the person, group or corporation can recommend grant distributions to qualified charitable organizations. The donated funds are invested in the financial market, so they have the ability to appreciate. According to the National Philanthropic trust, donor advised funds are the fastest growing charitable giving vehicle, with more than 100,000 donor advised accounts established holding over $17.5 billion in assets. If you’re like many upwardly mobile professionals in South Florida that believe in the importance of giving but wouldn’t mind certain tax advantages while doing so, a donor advised fund is a great place to start. They’re easy to set up and most funds allow you to contribute as low as $10,000 to start and unlike foundations, can be set up very quickly and there are no set up costs. Rod Kemp, Director of The Real Estate Investment Group states, donor advised funds helps us to be more resourceful, allow us the privilege to make a difference in society, start a legacy of giving and enjoy certain tax advantages. The funds qualify as public charities, so you get an immediate deduction on the fair market of the investment. If you would have elected to start a private foundation, the tax deduction would be limited to your cost basis. Assets in the fund are not subject to estate taxes and appreciate tax free so you’ll hopefully have more time to give to your favorite charities in the future. You can also reduce year end pressure by separating the decision process of obtaining a tax deduction then selecting a charity. Many of us want to take our time when selecting a charity to donate to. DAF’s allow you to take an immediate tax deduction and then take the time to research before selecting the charities you wish to contribute. An added benefit of donor advised funds is the use of a transmittal letter. For those of you who wish to benefit the community without the concern of being overwhelmed with charitable solicitors, the letter allows you to instruct the recipient to acknowledge the grant to the donor advised fund instead of the donor. The Gates’ may be inundated with requests but you won’t have to. For questions or more information on donor advised funds, please contact Bernard Lee Managing Director, Laurus Wealth Management, or call 1-877-LAURUS-6. Securities and Investment Advisory Services offered through H. Beck, Inc., Member FINRA/SIPC. Laurus Wealth Management and H. Beck, Inc. are not affiliated.

The Miami-Fort Lauderdale metropolitan area moved up five spots to rank as the seventh-best place to launch a new business in 2010, according to a new Portfolio.com/bizjournals study.

Miami-Fort Lauderdale placed 12th last year.

Rankings were calculated through a formula that took account of population, employment and small-business growth. Austin, Texas, topped the list, followed by Baton Rouge, La.; Raleigh, N.C.; Charleston, S.C.; and Portland, Maine.

The highest scores in the study went to areas that have prosperous economies, are expanding rapidly and are densely packed with small businesses.

Among the top 10, South Florida stands out for the sheer number of small businesses and its ratio of small businesses to population in Bizjournals six-part formula that looked for the places that are most conducive to the creation and development of small businesses. South Florida’s 175,917 small businesses ranked first among the top 10 metro areas on the 100-city area scorecard. The region’s rate of 32.62 small businesses per 1,000 residents, based on 2007 data, trailed only Portland, Maine.

Still, the study does give indications of the economic stress in South Florida.

The region finished first in January 2006 before the recession. The latest report shows the region’s ranking was hampered by a 0.3 percent drop in private-sector employment from 2004 to 2009 and a relatively low 3.26 percent growth in population from 2003 to 2008.

In 2006, No. 1 South Florida was followed by two metros that were attracting record numbers of tourists, Las Vegas and Orlando. Markets that are heavily dependent on tourism don’t fare well in recessions.

The most promising region for entrepreneurs is the South, which is home to 12 of the 20 best metro areas for small businesses. Orlando ranked 17th; Tampa-St. Petersburg, 51st; Daytona Beach, 17th; and Lakeland, 86th.

The 100 metro areas in the Portfolio.com/bizjournals study group had a combined population of 199.1 million as of mid-2008, accounting for 65.5 percent of the national population of 304.1 million. Those same areas contained 4.99 million small businesses.

Last place in the small-business vitality rankings again belongs to Detroit, which continues to pay the price for the decline of the domestic automotive industry. The Detroit area lost 298,000 jobs during the past five years – an employment decline of 16.3 percent, easily the worst in any metro area. It also experienced short-term drops in population and the number of small businesses.

Portfolio writer G. Scott Thomas contributed to this report.

TALLAHASSEE – Governor Charlie Crist today announced that Florida’s decade of educational progress continued this year with a jump to 8th in the nation on the 2010 Quality Counts: Fresh Course, Swift Current report. Issued annually by Education Week, the report tracks state policies and performance across key areas of education and assigns each state with an overall point total to signify their education standing in the nation. This year’s increase follows continuing trends of improvement that saw the Sunshine State ranked 10th last year and 14th in 2008, up from 31st in 2007.

“Even in the face of difficult financial conditions, Florida’s education system has proven that a solid foundation and committed teaching force can make improvement a possibility under any circumstances,” said Governor Crist. “Progress in the face of uncertainty can be an overwhelming prospect, but Florida’s teachers and school leaders have clearly shown that they are up for the challenge.”

Similar to previous years, the 2010 edition of the report grades states based on their performance and policies in six main education areas: the Teaching Profession; Standards, Assessments, and Accountability; Chance for Success; School Finance; Transitions and Alignment; and K-12 Achievement. This year’s report updated scores in four of those areas (Teaching Profession, Standards, Assessments, and Accountability, Chance for Success, School Finance), and combined it with previous scores for the remaining categories. The overall point total assigned to each state is the average score for all six categories.

“Florida has spent more than a decade implementing progressive education reforms that are grounded in the successful outcome of every single child,” said Education Commissioner Dr. Eric J. Smith. “Quickly climbing to 8th in the nation is a clear sign these efforts are paying off, and I am proud of our teachers and schools for the excellent work they continue to do on behalf of students.”

Highlights of the 2010 report include:

• Florida remains 4th in the nation in the Teaching Profession category.
• Florida moved up seven spots to 5th in the nation in the Standards, Assessments, and Accountability category.
• Florida remains 7th in the nation in K-12 Achievement.
• Florida improved 8 places to 31st in the School Finance category.
• Although not a part of the overall ranking, Florida was ranked 9th in nation in terms of math progress and was tied with New York for 1st in closing the math poverty gap over the last seven years.

To view more details about Florida’s performance on the 2010 Quality Counts report, visit http://www.edweek.org/ew/qc/2010/17src.h29.html?intc=ml.

Approximately 200 Greater Fort Lauderdale/Broward County business and community leaders heard about the six drivers that can prepare South Florida for accelerated economic growth at the Florida’s Future Summit on February 5, 2010. The Summit was presented by the Greater Fort Lauderdale/Broward Economic Development Alliance (formerly The Broward Alliance) and its Partner Council. The drivers, which include the categories of workforce, innovation, infrastructure, global competitiveness, civic and government systems, and quality of life, were adopted in October 2009 at the Future of Florida Forum, organized by the Florida Chamber of Commerce. Also called the six pillars, they serve as a visioning platform for moving Florida toward 2030 in creating sustainable job growth and success.

Governor Charlie Crist pointed out that several economic factors are showing improvement in Florida in recent months including higher sales tax revenue, increasing home sales and a positive in-migration of people moving to Florida. The Governor commended those in attendance for taking a leadership role in proactively setting the stage for Florida’s future success by addressing the issues that will contribute to its economic competitiveness now and in the future.

Dr. Dale Brill, who was recently named president of the Florida Chamber Foundation, stated that there will be an additional 5-7 million residents of Florida by 2030 and that the six drivers must be focus areas of Florida’s business and government leaders if the state is to have prosperity and high paying jobs, vibrant communities and be able to compete globally. Dr. Brill had previously served as the Director of the Florida Governor’s Office of Tourism, Trade and Economic Development.

Bob Swindell, interim president and CEO of The Alliance, talked about the need for South Florida’s business community to rally behind the six pillars for Florida’s Future. “If we focus on these six categories of business and economic development, as a state and locally, we can have the greatest impact in attracting the types of jobs and capital investment that will contribute to a strong economy in Broward County and the entire state in the future,” said Swindell.

In addition to Governor Crist and Dr. Brill, other business leaders who participated in the conference as panelists and speakers included Amy Evancho, president and CEO of the Florida Economic Development Council; Gloria Katz, executive director and founder of the Broward Smart Growth Partnership; Mason Jackson, president and CEO of WorkForce One; and Stella Tokar, president and CEO of the Miramar Pembroke Pines Regional Chamber of Commerce.

Ray Ferrero, Jr., chancellor of Nova Southeastern University, who served as host of the Summit, welcomed the participants and talked about the significant improvements that have been made in the K-20 education system in Broward County and statewide. Talent supply and education are key factors in a business’ decision to relocate. Chancellor Ferrero said it is imperative the business leaders in attendance know about the improvements that have been made in education, as well as letting those companies who may be considering Greater Fort Lauderdale as a location for their business know about the strengths of our diverse workforce and our PreK-20 education system.

What would happen to your business and your family should you become disabled or die unexpectedly? Do you have key employees for family members who could step in and run the company in your absence?

Business Continuation Basics It is essential to the future of your business and your family to have a succession strategy in place. In order for your business to maintain continuity, you need to implement a succession strategy that coincides with your goals and objectives. Your strategy should be flexible enough to handle changes within the company and its related industry(ies). However, one of the keys to a succession strategy is determining who or whom your successor(s) will be.

Deciding on, and preparing a successor may require years to familiarize him or her with the finer points of the business. Thus, it is important to select a replacement as soon as possible in order to maximize the possibility of a successful transition. In smaller businesses, it is not uncommon for one or more family members to be at the top of the list of potential successors.

If you wish to pass your business on to future generations, you will need to make an honest assessment of the respective needs of your family and business, the qualifications of any interested family members, and whether the family and business would be best served by a continued relationship. Communication with family members is extremely important in order to better ascertain overall interest or concern.

You can prepare yourself by honestly evaluating and reflecting on the necessary components of a well-thought-out succession strategy. Here are some points that may require further elaboration:
a thorough job description of each position, including details regarding areas of responsibility and delegation of duties; a management/organizational plan;
Assuring the availability of cash to meet the demands of federal and/or state estate taxes;
a list of potential successors to your ownership, taking every candidate’s job experience and academic background into consideration; and a mechanism to ensure extensive on-the-job training for the successor(s).

Other Considerations:
A succession strategy may also include a buy-sell agreement funded by life insurance. More than likely, your successor may not have the cash, or the ability, to borrow at the time of successor ship. Under such an agreement, the death benefit proceeds of the life insurance can be used to provide the cash necessary for a successor to purchase an owner’s share of stock in the event of his or her untimely death.

In addition, it may be prudent to explore how your unexpected disability could affect not only your plans for successor ship, but also your financial well-being. Under a disability buyout arrangement, a disability buyout policy provides a successor with cash to purchase shares in the event of the owner ’s untimely disability.

You should consult with your insurance, legal and tax professionals to devise a plan of action that provides security for your business and your family. With proper planning, your objectives for business succession and securing your family’s future can be met.

This article is for general information only and is not intended to provide specific advice or recommendations for any individual. You should consult with your advisor, attorney or accountant with regard to your individual situation.

Pursuant to IRS Circular 230, MetLife is providing you with the following notification: ‘The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.

By Tunde Ogunlana

Divorce and Retirement Plan Proceeds

Unfortunately, divorce is increasingly common in our society. Because divorce entails the dividing of assets, some of which have tax implications, it is important to be aware of potential tax traps when you begin planning. One such trap in the area of retirement plan assets is the existence of vested account balances.
In the past, with traditional defined benefit plans, the plan participant was promised a retirement benefit, but he or she had no vested retirement account balance. However, with the shift toward defined contribution plans, vesting for employee contributions is immediate, and vesting for employer contributions builds quickly. Consequently, as more Americans participate in 401(k) plans and other defined contribution retirement plans, dividing vested retirement plan assets in divorce situations has created complex financial issues.
Protect Yourself with a QDRO
A qualified domestic relations order (QDRO) is a judgment or order that involves child support, alimony, or property rights pertaining to a spouse, former spouse, child, or other dependent. A QDRO can be used to establish one spouse’s right to part or all of the other spouse’s retirement plan(s) and to ensure that the recipient spouse pays the tax.
To be protected through a QDRO, it must specify the following:
1. The name and address of the plan participant and the alternate payee (typically, the participant’spouse).
2. The name and account number of each retirement account involved.
3. The percentage (or dollar amount) of each plan that is to be paid to the alternate payee.
4. The period of time or the number of payments covered by the QDRO.

The QDRO must be a part of the divorce decree or a court-approved property settlement document. The decree should also specify that a QDRO is being established under Section 414(p) of the Internal Revenue Code (IRC) and the particular state’s domestic relations laws. Intent to establish a QDRO is insufficient; it must be spelled out in the divorce papers.

Getting divorced can be taxing enough, but it need not be made more difficult by mishandling the division of assets in a retirement plan. And, although this particular decision does appear to provide room for straying from the precise wording of the statute, applying the proper language in a divorce decree may help ease some of the inevitable complications that can arise, facilitating a smoother transition for all involved. Qualified legal advice should be obtained to help ensure that any desired planning actions are worded and structured properly.

By Tunde Ogunlana

Copyright © 2009 Liberty Publishing, Inc. All Rights Reserved.

By Dr. Robert Wallace

One of the cornerstones of my views on minority entrepreneurship is that it must be viewed simply as a means to an end. The end that the minority and female community should be trying to realize is the accumulation of power. Power, plainly defined, is simply the ability to achieve purpose. While the African American community has labored in building it is overall power structure, it is the accumulation of economic power that has especially eluded the community. In my opinion, economic power can be summarized as the accumulation of Land, labor, capital Intelligence, open access to markets, no matter how we define it, power is the only thing that matters in America or in any other society, particularly a society based upon the economic principles of capitalism. Consequently, if you have no power in America then you are invisible. When you become invisible, you become a nonperson and to all intents and purposes you cease to exist. When you cease to exist, social and economic policies of the society in which you live begin to reflect your invisibility. Incidents like the Rodney King beating, the waving of the Confederate flag in South Carolina’s capital, and the attacks on affirmative action reflect a flagrant disregard for those fighting to be recognized. Unfortunately, social freedom without economic undergirding is like building your house on sand instead of rock. When the strong rains and high tide come crashing into your house, it will be unable to withstand the constant pounding of these relentless forces. Without sufficient undergirding the house will eventually collapse and its members will be scattered across the vast ocean. Our figurative house as a group has been beaten upon and its foundation compromised. The conservative movement, which has historically been an enemy of minority and female rights, has been emboldened by a recent string of successful skirmishes whose intent is to completely dismantle all governmental efforts to assist minorities and females in their transition into the economic mainstream of America. Most notably was the passing of Proposition 209 in the state of California. This proposition had the dubious effect of abolishing affirmative action completely. Since Proposition 209, other states have begun to follow California’s lead. Even more disturbing attacks on minority and female business programs continue to be launched unabated. Not only are minorities and females under siege from the legislative maneuvers of those in the conservative movement, but information is coming forward that suggests that some corporations are solidifying the proverbial glass ceiling purposely impeding the progress and advancement of blacks and other minorities. The nation was shocked when it learned that senior executives with Texaco Inc. bantered comfortably among themselves, plotting the destruction of documents demanded in a highly visible discrimination case and berating the firm’s minority employees with racial epithets. We can only speculate on what effect this type of racism has had on the development and implementation of key corporate policies that would dramatically impact thousands of Texaco employees across the nation.

Each one of us has a mission or purpose that we are to fulfill while here on this terra firma we call earth. This mission was woven into the very fabric of your being prior to your birth. We were equipped with gifts and talents to complete this mission. Our job is to develop those gifts and utilize them for the fulfilling of our mission and not for its destruction. While many of us recognize that we are called according to God’s purpose for a divine assignment we labor endlessly, unable to birth our destiny because we don’t know how to set our mission in motion. Here are some practical steps you can follow to move to the next level. First, you must clearly and succinctly clarify who you are, what you do, who you plan to serve, and what makes you unique. This is your personal mission statement and it will guide your continuing efforts.

Secondly, you must spell out your purpose or what you believe God wants you to accomplish. This is your raison d’etre or your “reason for being.” Your purpose will always be associated with your passion. How can you use what you love to do for God’s divine purpose in your life?

Thirdly, you must create goals or detailed steps to accomplish your mission. This may include goals such as create a business plan, finish a degree, develop a talent or gift, save money, deepen your spiritual life, read more, network, learn a computer program, etc. Your mission is too important to ignore, therefore you must do the work required to step into your destiny.

I have heard the statement “A mother can’t be her daughter’s best friend and be her mother at the same time.” I disagree. I feel that being my daughter’s best friend deepens and broadens the bond in our relationship. I can’t imagine my daughter going to anyone asking for advice or sharing her thoughts in fear of my reactions to her thoughts. No one should know you better than your mother.

As an only child, I was very close to my mother and her to me. I can remember the wonderful times when my mother and I would lie on the bed and talk for hours. She would always start the conversation with “How was your day?” That would get me started and I would just go on and on, because I could see the interest and love in her eyes, and that would motivate me to share even more.

I understand that as a human being there are certain things we choose to keep to ourselves and that is natural. However, over the past few years of facilitating Mother and Daughter Bonding workshops I have seen many mothers and daughters all struggling with the same issue, a lack of honest communication.

As mothers and daughters began to share their intra-conversations (on-going conversation in their heads) they started having honest, loving, trusting, and open communication that was needed to strengthen their bond and create the breakthrough for a better relationship.

How can you be your daughter’s best friend? Recapture that moment when you first looked into her eyes. Start by looking in to her eyes, giving her lots of hugs and, spending at least one hour of quality time a week together. These three things start an energy force that creates a trusting relationship between a mother and her daughter(s) and help you to develop an honest mother and daughter relationship.