For most business owners, an Exit Strategy is something that signifies success and transition when you're ready to retire or move away from the day-to-day activity of the operations, but how smoothly this works depends on your personal goals when starting the business. To be more specific, identify which of the following questions best reflects your situation:

1. Are you building a business that will generate income for you now and for future generations of your family?
2. Are you looking at building business equity that adds to the value when you sell the company in the future?

Depending on which question best described your situation, it will likely impact how you organize your day-to-day functions. If this venture is something you hope to carry-on in future generations, you'll likely need to review your estate plan and make sure that appropriate plans are in place for your successors. If you're considering your business as an investment, then you have several options to consider, including...

• A Straight Sale – Likely the most common strategy, this simply means that the seller receives cash in exchange for all the assets of the company. The hardest part is deciding upon the value of the company. In this case, obtaining one or more independent appraisals may be beneficial to be fair to all parties involved.
• Merger – A merger is when two companies combine assets to create one new company. If one or more of the companies have stock holders, ironing out all the details can take time, so if you're looking for quick cash return a merger may not be the best course to take since this can be a lengthy process.
•  IPO (Initial Public Offering) – This means that you're opening up shares of your company to the general public. This is typically recommended only for larger companies (with over $50 million in revenues) who can afford the legal and accounting fees to organize this process. You have no control over the market when your release your IPO so it's a gamble on exactly what the final offering will be making this a more risky option for some.
• Buy Out – This is more common for small-to-mid-sized businesses particularly within a similar industry. For the purchaser, it's a way to quickly expand on their assets and achieve a greater market share. This type of situation is directly related to the performance of the business both before and after the merger. The seller will best benefit when the buyer pays them upfront instead of leveraging future cash earned by the company to pay the seller. Again, having good legal and financial counsel in this situation is highly recommended.
• Liquidation of Assets – Success on this option depends on the current debts you also hold as those will need to be paid first before any profit can be counted. This also depends on the value of your assets and finding the appropriate buyers. With this strategy, you're likely receiving the smallest amount for your investment. Think of it like a Garage Sale for your business. The fact that you're selling your assets screams to other business owners, "you're done!" so they're likely just looking for a deal.

In short, you're looking at your business as an investment in your future; it's a good idea to have a conversation with your financial advisor to help you consider your exit strategy options and create some goals that help keep you on track.

Estate Planning helps you decide how your estate or personal belongings are managed upon your death. With today's "blended family" lifestyle, it's common to find that step kids can easily slip through the cracks of estate disbursement if not properly handled. The reason is that typical family beneficiary refers to those within your immediate bloodline. So what options do you have to protect your new family?

• Consider Adopting Your Step-Children – Adoption legally writes the child into your bloodline so if you die and any beneficiaries refer to your spouse and children, the step-children are also included in "children" otherwise it will default to your blood relatives only.
• Review Beneficiaries on All Accounts – It's best to review the listed beneficiaries on all your financial accounts on a periodic basis to be sure they're accurate – especially if divorced. You may want to make sure your new spouse is covered and list all of your children on the forms to ensure those whom you feel are necessary, are included.
•  Establish a Living Trust - Another option is to set-up a Living Trust where you'll have more control on the disbursement of all parties. This allows you to be specific with who gets what instead of blanket equal among all parties.

To get further assistance with a Living Trust or if you have questions on financial beneficiaries, give us a call and we'll be happy to answer your questions or assist you.

A hot topic on most financial sites recently has been the Debt Deal – the speculations, the pros and the cons from both parties, and now the final details signed into law. Now we await the selection of the six Democrats and six Republicans who will have the tasking job on how to reduce over 1.5 trillion dollars by the end of November. Although there is much fall out yet to come, here's a start on who and where we may see the quickest impacts...

• Working Adults – The current Debt Deal did not extend the payroll tax cut passed in 2010, so unless something changes in a separate legislation, it's likely that paychecks will be reduced by 2% beginning in January.
• Retirees – For those who rely on Municipal Bonds for income, there is concern that a reduction in federal spending will equate to less aid for states and local government putting a further burden on those states already struggling. If you or someone you know is in this situation, it might be best to consult a Financial Advisor to review their specific situation.
• College Students – Right now, subsidized loans are still available for the Undergraduate Students; however, the Graduate Students are not so lucky. This benefit will be going away as of July 1, 2012. Another thing to watch is the Pell Grant program which still faces an enormous deficit. What's currently being considered to off-set the debt is to reduce the eligibility for the grants from 18 months to 12 months or by increasing enrollment requirements.
• Housing Market – If you're currently shopping for a house, you might consider sealing the deal sooner than putting it off simply because there is still so many unknowns of how this will all shake out. Right now you know what incentives are on the table and you're able to qualify for. In another six months, those could all change.
• Medicare – With the daunting task of finding another $1.2 trillion in savings in health care costs, Medicare likely faces some changes. The first will be a decrease in payments by 2% which means consumers may find doctors and hospitals revisiting their Medicare policies. Right now, there have been hints of adjusting the Medicare eligibility age to 67 or increasing co-pay amounts.

These are just a few things that consumers may want to follow to see how things work out. If you're at all concerned with your retirement allocations and how any of this impacts your portfolio, please feel free to call our office at 636-240-5055 and we'd be happy to schedule a meeting to review any of your questions.

In State Treasurer, Tax and Controller offices across the country are working to return unclaimed or lost money to its rightful owners. You see, many state laws require banks, insurance companies, and other businesses to turn over assets to the state when a customer has no documented transactions or contact for five years of more. These assets can include the content of safe deposit boxes, cash from bank accounts, stocks and bonds, utility refunds, etc. Individually, the amounts range from pennies to one noted case in New York claiming $1.7 million. All in all, the National Association of Unclaimed Property Administrators declares that $33 billion in "dead money" remains unclaimed.

Recently, the Missouri State Treasurer's office of Clint Zweifel spent over $656,000 to send post cards to last known addresses and post advertisements in both the St. Louis Post Dispatch and the Kansas City Star with a list of these accounts hoping to get the attention of families of those on record with these claims. In the past year, they have been successful in returning $83 million but his office still claims to have over $600 million in unclaimed assets for more than 3.5 million accounts at the end of their fiscal year which was in June. To check if anyone on your family has an account, visit the Missouri State Treasurer's Office website and enter the name of each adult in your family in their search form – particularly those who are diseased or have died within the past 5-10 years.

As mentioned earlier, this is a National situation, so if your loved ones lived outside Missouri, be sure to check their state office as well to see if they have an unclaimed account. This link from Missing Money provides quick access to various offices for your convenience.

If you have any questions about investing any hidden treasures you may find from your family, please contact me and I'd be happy to help! Good Luck!

With the pending merger of AT&T and T-Mobile, the Cell Phone market is facing some uncertainties. In a brief review, AT&T has typically been a leader in package cost while T-Mobile has offered more economical plans. On the other hand, T-Mobile has ranked higher in Customer Service where AT&T has been known for hidden charges and weak network. So, if you're an AT&T or T-Mobile Customer or simply out shopping for a new smart phone, what can all of this mean? Expect to see higher rates in the long run, no matter what the case. So, if you're a family that relies on cell phones – like most of us - what can you do to reduce costs?

• Know What Features You Really Want or Need from a Mobile Phone. Walking into a cell phone store and aimlessly browsing is dangerous. The sales person will always show you to the more expensive (higher commissioned) products that would be cool or would be nice to have, but is it really necessary? How much are you really going to surf the net on your cell phone? Are you really going to check your email from your phone? Ask someone who has these features to see how small this information comes across and you might reconsider the value of this feature.
• Don't Let Your Kids Weigh Your Mobile Phone Purchase Decision. Parents just want to make their children happy, and kids are all about the latest and greatest technologies, but they're likely not the one paying the bills! The benefits for your children to have a phone is for their security and ease in family communications. As long as they have a phone with Text Messaging and Talk capabilities, that's really all they need unless they have a job and will contribute to the features and equipment they want to have. This also adds to the value they place on the equipment and they take better care of it.
• Check your Employer or Clubs to see if they have Corporate Discounts with Mobile Phone Carriers. As a benefit extension, Mobile companies have negotiated "corporate discounts" that can benefit not only the company and the phones it supplies specific employees, but it may have the opportunity to extend this benefit to its employees and their families. Typically this benefit saves 15-20% on your overall bill; but in some cases this can be up near 35%
• Buy Your Mobile Phone Equipment Online. You'll find many online resources selling quality cell phone equipment – both new and refurbished. Before you hit "Buy Now" make sure it's compatible for your Service Provider. You'll also have to manage transferring the data yourself, but it you're technically inclined, you'll likely come out ahead.

This is a competitive market even without the AT&T / T-Mobile merger, so always continue to shop for opportunities. Just be aware of your contract expiration and how much it will cost to "buy out" if you bail early. You'd be surprised what a Mobile Phone carrier might offer to get your business!

The recently developed "Affordable Care Act" has created a number of changes in health care including a recent change in how old you can be to remain covered under your parent's plan. In the past, the age limit was 19 unless the child could show verification that they were a full-time student. Now, most health plans must make coverage available to children up-to the age 26 – student or not. This is just one of many changes in the works, but so far, a beneficial measure to those students graduating with heavy debt from loans.

Another relief is the suggested list of Vaccines or Preventative services that have been recommended to be covered. This means that families can receive a number of preventative care vaccines or services without any out-of-pocket expense to them or their employer. You can check the CDC website for a complete list of immunizations as recommended for adults and children in 2011. A list of recommended Preventative Services can be found on the HealthCare.gov website.

As the new Benefit Election cycle comes around this fall, be sure to note any specific changes that your provider covers or not. In some cases, there a few exemptions regarding coverage for some providers. If they're not offering a particular service or vaccine mentioned above, then it's likely you'll soon see it included, so be alert and compare your elections to your families needs so you can stay healthy and save!

When it comes to investing, the typical concept of "bigger is better" may not always apply – especially in today's economy. Following the Russell 2500 index shows you that many of the "middle children" in the economic family are actually contenders for doing great things!

The Russell 2500 index reports the activity on small and midsize firms, which has experienced a 150 percent growth since its low in March 2009. Some of these have even shown a higher growth pattern than the larger companies that dominate the Russell 1000. With this growth, the financial market is not only curious as to why the growth has been so impressive, but more importantly – will it continue?

Taking a look at why these firms are doing well, theoretically, is that they've survived the challenges of being a 'start-up' company and likely worked out a few of the bugs in the process to be focused on a growth strategy that is fueling their success. Those invested in these companies also experience a nice return.

As far as their continued growth – well for some, many not be exactly what they thought. Big businesses are also watching their growth. As these smaller-to-midsized companies continue to grow, it's not uncommon to see these firms being acquired by larger companies seeking to add a quick boost their bottom lines. Right now, with the ability to borrow money cheaply, bigger firms have become seasoned shoppers.

The moral of this story is that big or small, profit is impressive; however, it's still the quality of the performance that will always prevail.

Banks have had a rough spot the past couple of years. Between mergers and changing fees structures, consumers are searching for a solution that they can trust. It can be very confusing keeping track of who's doing what to determine the best choice for you, but here are some key points to consider that might be helpful in making a decision:

• Evaluate Your Needs – Do you need online banking? Do you have direct deposits? How many transactions do you typically make in a month? How much of a balance do you typically carry?
• Is "Small Local" Better Than "Large National?" – If your financial needs require more personal communication, than you might consider a local credit union or institution instead of a large chain.
• Don't be Swayed by Give Aways or Specials – Realize that these are only temporary and that initial offerings will likely have limits. Be clear on what happens when the initial offering expires.

For additional resources on institutions, you can always check the Federal Deposit Insurance Corporation (FDIC) regarding information about deposit insurance and consumer protection or the Consumer Financial Protection Bureau (CFPB), at consumerfinance.gov.

Cash After College

Graduating college debt-free has nearly become a myth. With prices set so high on everything a college education requires- books, tuition, a computer, etc. - it is almost impossible to escape with both a diploma and spare change. Why must it be so difficult? It doesn’t have to be. It all comes down to good habits. By taking control of your money now, you can create habits that will last you a lifetime of financial stability.

What's in Your Wallet

The best place to begin is making a budget. Budgeting can be as simple as setting aside $60 for food every week. When you set limitations for your spending, you have less of an urge to splurge. Finding the will to be true to these limits will be the hardest part, but you must keep your eye on the prize. For example, $30 spent on red bull the week of your exams may turn into $3,000 debt down the line, simply by telling yourself that it’s okay to be free with your funds. Old habits die hard, and financially good habits are certainly the ones to be content with keeping. Now, if you are asking yourself if you even have enough money to budget $60 a week for food, perhaps you should start with a log of what you spend now. That way, you can see what you are able to cut from your blind spending. Anything that you may think is essential might just be a habit gone wrong.

What's in Your Vault

Once you have a budget in place, you will start to see just how far your money can go. The next thing you should add to that budget is savings. There are two types of savings- The “Big Purchase” fund and the “Emergency” fund. Of course, the Emergency fund sounds more important or even scary, but it should really be thought of as a safety net. The beauty of the emergency fund is that it doesn’t have to be thousands of dollars hidden away where no one would ever find it. It just has to be enough money to pay for the commonly unexpected. This could be anywhere from a flat tire on the way to class to a broken laptop on exam night. And as far as that Big Purchase fund goes, just know that if you blow that money, you can’t get it back. Ultimately, the Big Purchase fund is to discourage credit card use. If you are on the fence about using any of your saved money, unsure that it is truly an appropriate choice, just go back to the rules of budgeting. What would your life be like with the object? What would your life be with out the object and that money still in your savings? Is it worth it?

Workforce Development

Everyone knows that jobs are an odd commodity in these times. The secret isn’t finding a new job, it’s creating one. Take what you excel at and turn it into a business. Bring back the art of trade. In college, everyone around you is going through the same things- school, a job, socialization, and establishing themselves. Offer the people what you know they need. It might be a tutor, an intern, a connection, someone to rehearse with, a study partner, a baby sitter, a dog walker, or even just a friend. Something as simple as making a friend or two can turn into a connection to your future career. So just get out there and do what you do best, whatever that might be.

Buying a Car is a Big Decision

This is considered to be one of the largest purchases anyone can ever make. Some say it is one filled with the most regret, since its value goes down the second you drive it off of the lot. But to buy a car with confidence is an achievable goal for the informed spender. As you will soon find out, the key to making big purchases are the big ideas behind them.

When considering a new car, it might not be in your best interest to go straight to the dealership. Why? 1. Because you are human and may get distracted by the sleekness of the latest sports car and 2. You may get suckered into buying a vehicle that is entirely wrong for you by those smooth-talking salesmen. Trust me, it has happened before. Start with an online search of what car would fit your needs. Are you looking for a car to hold a family? Or do you just need a car with a high mile per gallon highway to get to work across town?

Understand Your Purpose for Buying A Car

Once you decide on a purpose, then you can decide on New or Used. All cars’ values go down once they have been driven off the lot, so you may be smart to buy a year old car at a significantly lower price. It would be nearly the same condition, but a fraction of the price. Don’t get me wrong, new cars have perks. Keep in mind though that those perks have expenses. Also, when looking at a cars perks and gadgets, realize that everything will break or wear with time. Sure, a sunroof may be a luxury, but paying for it to be fixed in a few years won’t be. Whether you buy new or used, make sure you are finding something in your price range. Be sure to stay true to your budget- you will inevitably be rewarded in the future.

Now that you have the specific car in mind, then you should go see it in person. After looking at it on a computer screen for so long, calculating it’s worth to you from every angle, it won’t seem so big and bad in real life. Be confident in your research, and most importantly, remember what you want this vehicle for. That thought alone will give you the push you need to purchase with pride.