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A guest post from Crystal –

You only have so much time in the day to manage your eCommerce store. You need to learn to delegate certain duties to your employees so that you can focus on the things only you can handle. Delegation does not come easily for many people. You can make it more effective through implementing certain strategies.

Create a Team Mentality

One of the most effective ways to start effectively delegating is to create a team mentality. Make it clear that your business depends on your employees. You can do this also by noticing their contributions and giving them positive encouragement. Constructive criticism must be given, and you may have to institute disciplinary actions in certain situations. However, you can still maintain the team perspective by providing positive feedback and opening the floor for your employees’ perspectives. Remember that they will be more inclined to give their best if they feel that their actions matter and that they have something to offer.

Delegate Whole Responsibilities

One of the biggest mistakes that business owners make is to simply delegate tasks. They tell their employees to just handle specific items on the to do list. Instead, it’s more efficient to delegate responsibilities. While this may seem somewhat nerve wracking, it’s the only way in the long run you can achieve some free time to focus on the matters only you can tend to. This does not mean that you have to delegate all of the responsibilities for the product manufacturing or the eCommerce marketing plan to one of your employees. However, you can delegate the responsibility to update the social media feeds or to brainstorm new client retainment methods to an employee.

Keep the Work Broken into Stages

Make sure though that in the delegation that you do not dump too much. You can actually breakdown a very promising employee by giving too much responsibility. Whether it’s handling online inventory, redesigning the website, or handling some other aspect of the eCommerce business, it’s important that you break the work into stages. At each stage, check in with your employee to make sure he is handling it well. This will also ensure that if something goes wrong, you can address it before it’s too late.

Reward Initiative with More Responsibility

If one of your employees starts demonstrating initiative with your eCommerce store in a productive way, make sure that you reward that. You should reward this with positive encouragement and increased responsibility. Just make sure that if it is appropriate you include monetary rewards as well. Creativity and initiative should be encouraged as much as possible.

Understand Mistakes Happen

When you start delegating responsibilities, bear in mind that mistakes happen. People forget. Misunderstandings occur. Depending on the severity of the problem, it’s best to address the issue and then evaluate it in the light of that employee’s conduct as a whole. Don’t blow it out of proportion. Remember that some mistakes are just a part of the growing and learning process, and if an employee provides good services, you will want to turn it into something productive rather than something that makes the employee leave or breaks his spirit.

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A Guest Post from Ryan –

Being in college, the whole money-management and doing your own taxes thing can feel cumbersome. You may get the “final exam” feel while doing it, but the difference here is that this test involves money. However, with a bit of research and preparation from your end can make things easy and help you make the most out of this “test”. So how do you go about making this tax exam easier? Let’s find out:

#1: File

Don’t make much money? It still makes sense to file even if you don’t have to. Not having a lot money shouldn’t stop you from filing because if you have had cash withheld from past paychecks then you will see a refund coming your way. This might seem like a simple tip but it will work in your favor in the long run.

#2: Begin Early

Don’t worry if you haven’t got your W-2s yet. You’ll find the needed tax information (how much you earned and how much was withheld) with your final pay stub. If you feel like you need a helping hand then you may want to check with your college’s account department. There you should find students offering to help with taxes for free to gain practice in “real life” returns. Don’t wait too long for seeking on-campus help because the closer April 15th gets, the more difficult it is to find help.

#3: Take Your Time

It’s a good idea to give yourself a weekend to fill out your forms. Will it take that long? No, of course not. But the ample amount of time you have on weekend will give you the space to take breaks when and if needed and double or triple check everything before you mail your return. If you want to take a safer route, do your returns on a leisurely weekend, then seek outside help/ask any questions the following week and then finally send it the next weekend after checking your numbers one last time.

#4: Practice on Paper

If you choose to file taxes online, it is better to go through the paper forms, fill them out and get rid of any bugs before taking the final step. Your aim here is to ensure that the whole filing process goes smooth without any obvious mistakes that can be avoided with some practice. Remember, clarity is the key to getting things right the first time.

#5: Know About Your Family’s Financial Picture

Talking to your parents about money and finances is not easy for any college student. But then it’s important that you learn about their financial situation in order to plan who should be claiming as their dependent and using your education deduction or credit. Keep in mind that if your parents are taking care of fifty percent of your expenses, then you can be listed as a dependent on their taxes.

Every college student knows the importance of money, and so should you. But what’s more important than that is understanding how to manage your finances and get them in order so that you can study with peace of mind.

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Golden Troubles

The gold bugs are an interesting breed. They use misleading rhetoric such as “a storehouse of value” and other argumentum ad passiones to  convince you to buy. Those who caught any good part of the recent run-up from ’05 to ’12 sure are happy, but only if they sold. Buying gold at the wrong time can leave you with a bad investment for the rest of your life. Gold’s record high was in January 1980, at $875. Inflation alone would put the price at $2400 today. What storehouse of wealth? We are exactly at half that price. If you buy gold in the form of small bars or coins, you pay a dealer premium, and the buy/sell spread can be 5% or more. For those who wish to buy gold, I’ve mentioned GLD, the gold ETF. It started out as trading as .1oz of gold per share, but as with any ETF, there’s an annual expense, .40%, so the 10 GLD shares that represented a full ounce in 2005, now, eight years later, is closer to .97 ounces. The prospectus for GLD states this clearly.

[T]he amount of gold represented by each share will be reduced over time, from an initial 1/10th of one ounce of gold. Because the expenses of the Trust will be offset by the sale of Trust gold, the amount of gold backing each share (Ounces Per Share) will decrease gradually. Each share will initially represent 1/10th of one ounce of gold, but this will decline over time. This reduction in ounces per share will be reflected in the NAV of the Trust.

GLD did not exist in 1980, but if it did, the ounce you held would be .88 ounces, and today, not worth the current $1200, but about $1050. The question isn’t how long it will take the 1980 investor to simply break even, but whether it will ever happen at all. In 20 years, his .88 ounces will shrink to .81 ounces, and the $2400 target will inflate to $4335 given an average 3% inflation rate. Not impossible, just not guaranteed. When stocks are involved, time is on your side. Even if the S&P or DOW index is flat for a time, the dividends will increase your holdings, and you will be ahead long term. You bought at the 1987 high, just before the crash? Less than 3 years later, you were ahead. January 2000, the S&P at 1500? The 13 years of dividends put you ahead even as the index had a tough decade.

gold0613The gold bugs are happy to point out how gold helped their owners get through the stock crash of ’09. And they may have been right, but click to expand this chart to see how they’ve done since. Gold up 30%, the S&P up over 140% (remember to add dividends.)

The responsible fee-only advisor might suggest that gold is not meant to be used to buy a huge amount and hold for the apocalypse, instead, one should have say 10% in their portfolio, and through the reallocation process, some gets sold in years the S&P outperforms gold, and gets purchased in years the S&P outperforms. I’m working on a study to understand how such a mix would have performed compared to a stock/bond mix or 100% stock investing.

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A Post DOMA Roundup

Let’s start this week with Roger Wohlner’s post at The Chicago Financial Planner, Understanding Your Bond Fund’s Duration. Bonds feel safer than stocks, or at least that’s the impression I get listening to how people reference bonds. The issue? Bond prices fluctuate, and drop as rates rise. Duration is the explanation of how this happens, a nice primer on the subject.

Joan Otto doesn’t mince her words when she posts at Man VS Debt. This week she told her readers How to Sell Your Crap Using Facebook. I read this with interest as there’s a category of stuff that’s not easy to sell on eBay as the cost of shipping is crazy compared to the value of the item. A nice refurbished desk, anyone? Joan explain how to use Facebook to sell your stuff locally. You won’t get rich doing this, but some pocket money is better than a full trash barrel.

New-Yorker-DOMA

The Investor Junkie asked (and answered) Is Lending Club or Prosper a Risky Investment? With rates so low, and P2P (peer to peer) lending being a higher yield alternative, it’s an interesting thing to consider. I’ve not used P2P myself, but the more I read on the net returns, even after defaults, the more I’ll research and decide if I’d like to get my feet wet in this new (to me) area.

When’s the best age to start investing in an IRA? This was the discussion at Darwin’s Money. The argument for ASAP is compelling. Stories of how those who deposit for some years in their 20’s and stop, will still be way ahead of those who start with the same deposits in their 30’s. The 30’s starter never catches up. On a personal note, my 14 year old just made her 4th annual Roth IRA deposit. Babysitting is pretty lucrative in our neighborhood, with $10/hr being the low end of what people are willing to pay.
At WealthLion, the Lion shared his Retirement Plan. It’s a great plan, and the only criticism he seemed to get was that he clearly has an above average income. I’ll agree, someone whose goal is $3M is above the current median for income. That just reinforces one point, finance is personal. This is the first I’ve seen this blog, a nice find.
Next, you’re aware that DOMA was struck down. This has implications for married same sex couples for their Social Security Benefits, Tax Returns and more. Joe Kristan offers a nice DOMA carnival of his own, sharing links to a dozen blog articles on the subject. Note – the image above is from the next issue of The New Yorker, Sesame Street has issued statements in the past that Bert and Ernie are just friends.
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No mo’ DOMA

DOA

Unless you’re really avoiding all news outlets, you are aware that DOMA, the defense of marriage act, was declared unconstitutional. This sets the stage for same-sex married couples to enjoy all the rights that we opposite-sexed couples enjoy from our tax code. Including the bits of code that still contain a marriage penalty. I’ll be putting together a closer look at what this ruling means, tax-wise.

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