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Tag: leverage

As the President of a charity, I wish more people would buy life insurance.  Not because I got my start in financial services selling it, but because it is a great tool.

If someone dies with life insurance, they have more money.  That does 2 things: it decreases the strains on charities because then they pay out less to support widows and orphans, and as such can focus on having greater impact on people than just surviving.  It also means that the families have more money, meaning that they can potentially make gifts of dollars or time to the organizations.  These are both really good things for the charities and Society as a whole.

The other thing as the President is that if someone gives an insurance policy, whether a brand spanking new one or one they’ve had for decades, it creates stability and leverage for the charity.  The current cash value becomes an asset to the organization that we can tap if need that is non-correlated to the market and will give well better than money market internal rates.  And when there is a death benefit paid we are sad for the loss of the benefactor, but can cntinue some of their works and beliefs because we have the financing to do so.

If I could wave my magic wand, I would have every single person associated with the Foundation I run have a policy owned by the organization on them.  Even if they are small ($10k or so), the net effect of them would be absolutely tremendous, and allow me to do even greater good.

So consider life insurance as a technique to enhance your charitable works: it works!

So anyone that knows me knows that I am a big fan of outsourcing work if possible.  My reasoning is simple: someone can do something else way better and faster than I can, it makes good financial sense normally to do so.  An example is having the lawn guy with the huge tractor cut our 2 acres: he can do it in under 2 hours, it would take me 10 + with my push mower.  I have to work one to two hours to generate the revenue to cover the cost, the other 8 hours I get with my kids.  Not a tough choice.

I extend this to the business too.  If I can do things that only I can do (like calling on financial leaders I know and trying to sell books and training to them), and I outsource things like book keeping (even though I did well in accounting I really don’t like it and it takes me too long to do right), it is just a better overall use of time.

So why am I discussing this now?  Well, one thing is that I still buy recommend that people outsource professional services like financial planning, accounting, and work to experts.  But the big thing is: I am looking at hiring a literary agent.

My reasoning is simple: they can get my book in more places, hence to more people, faster than I can.  Even with the standard fee of 15% (little high, but each book is an unique creation of the author so understandable), the time it would save me to focus on the areas that I really do well in is worth it.  Hiring an agent will allow me to leverage my time and abilities to reach more people and have more impact.