30
June
What is This new Networked Economy?
The Historical Work Concept vs the New Networked Employment Model Nowadays, much of the discourse about how the Network Economy is changing the concept of work culture focuses on anecdotes about individuals who are modifying the time-honored model and, most certainly, the ongoing arguements over the benefits of business outsourcing and the emerging online freelance market. Now [...]
Nowadays, much of the discourse about how the Network Economy is changing the concept of work culture focuses on anecdotes about individuals who are modifying the time-honored model and, most certainly, the ongoing arguements over the benefits of business outsourcing and the emerging online freelance market.
Now a larger, more substantial alteration of employment relationships is now just beginning to come about. Companies are beginning to realize that knowledge is advancing and accumulating more rapidly in the latest external network than in the ancient internal closed model. The ability to tap into talent and knowledge streams beyond the bounds of organizational boundaries is becoming necessary for companies striving to remain relevant and competitive. And as a consequence, they are re-thinking their more familiar HR and IP solutions to align with this new business reality.
These implications are even more significant for the individual; businesses, who provide the most established platform on which to build careers, are now re-defining their relationship with talent and knowledge, introducing uncertainty into what previously was a straight path to fulfilling careers and long-term financial well-being. Also, the dynamic of the new idea of the network economy places demands on the pace of knowledge – and experience-acquisition that individuals will find difficult to find in a time tested single employment relationship.
Regardless of uncertainties, these developments are creating real opportunities on both sides of the talent equation. These recently available developments are now creating very real business opportunities for both business and worker: companies need to stay competitive, and will continue to search out and pay a premium for knowledge and know-how that add value and help distinguish their products and services; individuals who want to provide their energies where they will be most effective can bypass the progressively more unsure corporate path and take direct control of their careers.
The development of the network economy has the capacity to develop robust virtuous cycles “repeating sequences of positive events that reinforce themselves through a feedback loop” to develop the interests of both individuals and organizations.
The Maven-link platform weaves together interrelated and mutually reinforcing professional, financial, and social cycles that improve both clients and individuals.
The financial cycle provides opportunities for both clients and consultants to continually increase ROI through more efficient projects and expand revenue opportunities through clearly demonstrated value. For most clients, the success of a project is typically measured initially by the degree to which the project deliverables meet expectations for quality, time, and cost; and in the larger analysis, by their associated ROI. Mavenlink’s built-in project management tools help simplify the business process from proposal to payment. Clients can propose, source, and run simultaneous concurrent projects easily from a single place. As successes accumulate and add value, and ROI compounds, funding for additional projects is easier to sell and close. Internal and External project experience and data also enable clients to gain additional value from past planning and executing future projects.
For consultants, multiple project successes with clients result in improved revenue opportunities through healthier business relationships, greater confidence and credibility. On top of that, consultants can leverage current and past success with one client when seeking new business from an potential client. As time passes, consultants are able to deliver value more profitably through increased information and re-use, generating enhanced ROI for themselves and for clients.
The knowledge cycle explains the cyclical growth in clients’ and consultants’ abilities to access and participate in information streams. Just about every project requires know-how and expertise in a particular domain or set of domains; to the extent that every single project is different, each is an opportunity for developing new knowledge.
With every successive project, consultants gain additional knowledge and skills, or apply existing ones in a new way. Brand New clients, business partners, and collaborators all provide expanded opportunities to exchange knowledge.
Even highly professional skills, which may apply only to one client, contribute to general wisdom that helps consultants refine their “craft” and develop better methods and methods.
Clients gain the specific knowledge and competence that they contract for, but also acquire experience and authenticity that help them recognize and realize additional opportunities. Clients and consultants who work together on successive projects benefit from an increased understanding of certain business goals, client needs, operational tools, organizational structures and personalities.
The reputation cycle is the social-networking aspect of Mavenlink; the virtuous cycle associated with social media is a major reason for its explosive growth. With every collaborative project, clients and consultants have the chance to provide mutual feedback, which becomes part of their living profile. Positive feedback from productive projects enhances your reputation and improvements your presence, which helps you extend your network and attract more business partners.
A favorable reputation helps you connect with high-quality projects and providers, and inspires confidence in both parties, streamlining the development of new associations. In addition to this, your collaborators’ reputations reflect positively on your reputation, helping you to further expand your personal network, collaborate on more projects, and get more favorable feedback.
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“Support Master” Anita N. Botchway Ensures That My Daughter Grows Up With No Daddy
New York Times “Debt Trap” Interactive
Life Insurance Settlement Industry Creates Secondary Market.
Think of a world where buyers are ready and willing to purchase your vehicle at a price substantially more than its trade-in value and you can choose the highest bidder. No advertising, no bargaining, no expense to you. Fiction? Nope. Such a world exists,not for vehicles, but for life insurance policies intended for lapse or [...]
Think of a world where buyers are ready and willing to purchase your vehicle at a price substantially more than its trade-in value and you can choose the highest bidder. No advertising, no bargaining, no expense to you. Fiction? Nope. Such a world exists,not for vehicles, but for life insurance policies intended for lapse or surrender. These owners will receive a settlement before death.
The life settlement industry has given birth to a secondary market for buying and selling of life insurance policies from qualifying life insurance holders, who receive an offer guaranteed to exceed the current cash value of the policy. In 2002, life settlement providers paid about $340 million to buy policies with an aggregate cash value of $94 million.
Life Insurance Policyholders who qualify for life insurance settlements are generally older than sixty five years of age; have deteriorating health, but are not considered terminally ill; and have “ascertainable and limited” life expectancies between two and 15 years. Qualified policies are at least two years old, pay death benefits between $100,000 and $5 million and are issued by an “A” rated insurance company.
A CHANGING INDUSTRY
Relatively new, the life insurance settlement industry evolved from “viatical” settlements, which catered to the specific needs of terminally ill policyholders. Viatical life settlements enable an insured to receive benefits, before death, to pay for the high costs of medical care. Life settlements, also known as senior settlements, do not involve a terminally ill policy holder (less than 24-month life expectancy) but a determinable life expectancy based upon the insured’s age, health and lifestyle.
The life insurance policy’s fair market value is the present value of the death benefit, considering the policy’s duration and carrying costs. Other factors affecting the fair market value include the type of life policy, the policy’s cash value and any loans against the policy.
A life insurance settlement transaction creates a taxable event with two tiers. The first tier is the difference between the cost basis and cash value, most likely taxed as ordinary income. The second tier is the excess of life settlement proceeds over the surrender value.
The IRS has not provided any specific guidance yet, however, whether this money is considered to qualify as a long-term capital gain. The tax treatment of a viatical settlement is markedly different. The Internal Revenue Service considers these tax-exempt accelerated death benefits.
WHEN SHOULD I SELL OR BUY LIFE INSURANCE?
Life settlements are a great option when you can’t afford your premiums. Declines in interest rates on the short end have cut down the cash flow of seniors living on a fixed income. With life insurance settlements, premiums disappear and distressed policy holders receive cash up front.
Potentially the senior citizen has outlived all beneficiaries and the payout of life insurance would create a taxable estate. What if the senior citizen, due to health issues, doesn’t qualify for long-term care insurance. Life Insurance Settlement funds could be used to pay for long term health care.
From a financial perspective, life insurance settlements should be considered when a business is for sale or the owner is retiring. If your client is a non profit, or charity, it may be possible to consider selling donated life policies to realize cash and eliminate future premiums
Why do individuals want to buy life insurance policies? Many life insurance settlement providers are funded by big banks that view life insurance as an asset in a diversified investment portfolio. These financial conglomerates] rely on actuarial and other quantitative data to acquire a favorable life insurance policy that will produce a expected rate of return at maturity. These insurance policies are held in a blind trust that may be used as collateral for a bond offering in a process known as secondary market securitization.
POTENTIAL FIDUCIARY ISSUES
Life insurance products are acquired] for a host of reasons and should be a part of every estate and financial plan. As with any financial vehicle, these policies should be reviewed frequently. Usually they are not.
A good insurance policy at the time of purchase does not mean you have a good policy years later. In today’s low short term interest rate environment, many policies written in an environment when rates were substantially higher might require replacement?
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COBRA Subsidy Will Expire On December 31, 2009