For my third book of the year, I chose "Onward" by Howard Schultz, after a client/friend highly recommended it. After somewhat scary revelations of my previous book “Boomerang”, I looked forward to reading “Onward” - an uplifting story of entrepreneurship. 

“Onward” proved to be just that (uplifting) and so much more. This book by Howard Schultz catalogs and follows his re-emergence as “ceo” of Starbucks in January 2008 (according to Schultz all leaders were lower case letters, and all the employees are termed “partners”). What makes this book particularly interesting is the timing of his re-emergence at Starbucks as the recession had officially begun in December 2007. 

After he came back, Starbucks had to deal with things that had never happened to the company before—the closing of hundreds of stores, the laying off of thousands of employees, negative earnings, and negative comps. In the book, you feel like you are there in the trenches fighting with him—as he states: “The crisis was forcing people all along the economic spectrum to come to terms with new realities and redefine how they lived in the world. Starbucks and I were hardly alone in our transformation.” 

By the end of the book Starbucks had turned the corner on the negative economic trends, and as Howard states, “I did welcome a shift from survival to growth mode” (emphasis added). You hear entrepreneurs that first start their business talk about being in “survival mode”, you hear seasoned business owners in the current economic climate speak of about being in “survival mode”—it was very intriguing to hear the ceo of Starbucks discuss the experience of the past two years as “survival.”

In fiscal 2010, Starbucks revenues increased to a record $10.7 billion. As Howard looks at how Starbucks got off-track, I think the following quote is on point: “Growth, we know all too well, is not a strategy. It is a tactic. And when undisciplined growth became a strategy for Starbucks, we lost our way. But no longer are we growing the company the way we did in the past. In short Starbucks today aims to be a very different type of company.”

After reading the book, and the Herculean work that Schultz did to transform his company, I believe this re-emergence as a ceo and leader of the company has been instrumental in Starbuck’s ability to be such a strong brand in the current economic climate. 

In addition to many useful nuggets of insights throughout the book, I also found it interesting and refreshing to read how Howard was influenced by the writings of a small merchant with one store in Italy. To me, it reflected how entrepreneurial mindset applies just as well to a small entrepreneurial company, as it does to this Mega-Company.

In that vein, I look “Onward” to my fourth book of the year—“Founding Rivals: Madison vs. Monroe (The Bill of Rights and the Election that Save a Nation”). I am very excited to finally get the chance to read this book because the author is Chris DeRose, a fellow Pepperdine Law School graduate. Let’s see if he can make the politics of the founding of America interesting (I have already read the first 40 pages or so and am already engaged to read onward).

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In life some things are easier to share than others. If you recently got engaged, married, had a baby, got a promotion or landed a great gig – sharing the news is exciting. You want the world to know.

Your estate plan is different—you don’t want the world to know your wishes (generally while you are alive this is to remain confidential). However, you do not want to be so private about your affairs that no one ever finds out about them (i.e. people digging your backyard to find your will or trust). Thus at some point you do want your affairs to be administered in the way that you direct them to be via proper legal documents.

Most people tend to delay making decisions about their financial affairs or what happens in case of their (gasp) death  even if their internal family dynamic is peaceful and distribution fairly straight-forward (for example, couple has only one child that will inherit everything). If no planning is done, the government has a plan for you it is called probate (you can read about it here).

Planning can be especially important if you don’t have children of your own and if you are not married (or have a domestic partner). The best planning you can do is by having the proper estate planning documents signed in front of witnesses, notary and documents drafted by an attorney, who becomes a trusted counselor. If not done properly or at all, various family members might argue, rightly or wrongly so, that they should be a beneficiary of your estate. Having an attorney draft your estate plan is critically important so that later your family can turn to someone who knew your wishes and can answer questions about your estate. Also, having an attorney allows for this process to stay private and takes the guesswork, confusion for your family and loved ones.  If done properly, estate planning documents can save your loved ones from the probate court and the potential of a lengthy litigation (where beneficiaries can try to interpret your wishes).  

The probate court has many cases when a person without children or spouse/partner suddenly, late in life, wills everything to someone who is not a family member or was unknown to the closest relatives.  Wills in those cases were handwritten, not drafted by attorney, raising suspicions about validity of the Will.  Leaving the estate to a friend or a charity is a perfectly fine choice however,  having an attorney draft those documents, having those documents signed in front of impartial witnesses provide a sense of security that these were truly your wishes. Also attorneys generally hold onto the original Will and give clients a conformed copy—this is to ensure no additional pages are added and that the Original Will is not altered in any way.

Proper planning is a smart choice regardless of how simple or complex your estate or family situation might be, but particularly important for people who are single, without children or immediate family close by to ensure there is no abuse or any fraudulent activity going on. Letting the right people know (your family and attorney) about your wishes should let you sleep peacefully at night.

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My second book for the year is "Boomerang", and given the following article “US Debt Is Now Equal to Economy” on CNBC today, I couldn't have read it at a more appropriate time.  To anyone that is interested in learning more about the world economic debacle that has been going on for the past few years, I highly recommend it.

The book describes the economic events in Iceland, Greece, Ireland, Germany and finally the US, specifically in California.  The way Michael Lewis writes is colorful (aka profanity), humorous, and biting.  The events in Iceland, Greece and Ireland would be hysterically funny but given that Lewis just reports what he finds out, the truth seems at once both absurd and scary.  I found that when he got to the US, he left me wanting much more, but definitely believing that our economic system (and specifically governmental bodies--cities and municipalities) has some serious economic issues ahead—you only have to read the linked article to recognize this is proving to be true (and by other articles put out on a daily basis as to the economic status of the US and other nations). 

 After reading "Boomerang" I find it harder to believe statements from some economists that: “a better measure of the nation's debt is how much the government owes creditors, not counting $4.7 trillion owed to future Social Security recipients and other government beneficiaries. By that measure, the debt is roughly a third less: $10.5 trillion, or nearly 70% the size of the economy.” 

I am not an economist, but this is the type of thinking that underestimates the economic problems in the US (and other countries, too), an underestimation that is extremely dangerous—what are Social Security and Pensions off the Balance Sheet???   You just have to look at Vallejo, where Lewis states:  "Back in 2008, unable to come to terms with its many creditors, Vallejo had declared bankruptcy.  Eighty percent of the city's budget--and the lion's share of the claims that had thrown it into bankruptcy--were wrapped up in the pay and benefits of public safety workers."  I believe economists shouldn't be so quick to list Social Security and retirement plans as an unimportant factor of our debt.

Read the part of the book where Mr. Lewis discusses the financial situation with the mayor of San Jose and see if the following statement from today’s article appears a little scary—“Long-term projections suggest the debt will continue to grow faster than the economy, which would have to expand by at least 6% a year to keep pace.” 

Read this book and see if you have a different view of our economic issues.

Michael Lewis is one of those writers that amuses while he enlightens the reader (the humor, at times bordering being vulgar is appropriately placed).  Even though, some the characters are a bit one-dimensional as Forbes states in their review of the book,  I look forward to reading some of the other books that Michael Lewis wrote, including The Big Short.

Ultimately, our economic problem (yes it is OUR problem, not just America's but every citizen's problem) is as Lewis states it "a problem with the entire society" and all levels of society has played a role:  "from the top of society to the bottom."

Have you read this book? What are your thoughts?  Let me know here or on my Facebook page.

Boomerang, Week 2

I have already downloaded my book for next week (and begun reading it):  “Onward: How Starbucks Fought for Its Life without Losing Its Soul” by Howard Schultz based on a recommendation of my friend. Even by decreasing the font size, my IPAD says I have 596 pages until I finish it—Ouch!!!

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One of my resolutions this year was to read more. One book per week, ideally on my iPad while working out (a bit ambitious, I know).  Books inspire ideas, provoke, educate, delight and motivate. I especially love reading biographies, books about innovation, business and entrepreneurship. 

I am starting the year, re-reading one my favorites “Think and Grow Rich” by Napoleon Hill.  I was introduced to this book by chance, awhile back while studying for my real estate broker’s exam. One of the instructors mentioned it as one of his favorite books and I decided to check it out to add some variety to my medley of law and real estate books at that time. 

Published in 1937, “Think and Grow Rich” summarizes the teachings of Andrew Carnegie, Henry Ford, Thomas Edison and many others on achievement, success and breakthroughs. If you own your own business, or aspire to be an entrepreneur, innovator, self-starter, I think this book would make an excellent addition to your library. I have read this book many times, and every time I get some new nuggets of information that I somehow missed on a previous read.  I also find that reading it at the beginning of the Year can give you a little extra motivation to get some of those goals achieved… Afterall, I agree with Diana Scharf Hunt “Goals are dreams with deadlines”.

*To the left is the version of the book I have purchased many times and given as gifts to friends.

I was lucky enough to find a free version of this book on my iPad, check out iBooks to see if it is still available.

Have you read this book? What are your thoughts?  Let me know here or on my Facebook page.

Think and Grow Rich, Week 1

I have already downloaded my book for next week:  “Boomerang” by Michael Lewis--and I'm curious, if anyone has read it?

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As we approach 2012, it is a great time to look back, see how much we have accomplished in 2011, and set our goals for the New Year.  This time of year is when many of us start writing New Year resolutions to set the tone for what to expect of ourselves.  At times, these resolutions can be a long list of to-do items that can overwhelm rather than inspire. So, for me the trick has always been to add some fun items. 

Every year, in addition to my professional and personal goals, I try to add a few fun things like playing tennis or travel to a new destination to keep me going.  My wife, Ana, for example creates a separate list of mostly fun items that you can see below (surprisingly, she added rising at 5 AM here too, hmmm?)

Over the years, I have noticed that in December, most people tend to review with me their existing legal documents or plan to see me in January to start something new.  So, I thought it would be great to share with you an essential list of legal documents everyone should have, regardless of how much money or assets they have.  Also, I added a few items (not legal documents) that are good to review every year to ensure they reflect your wishes. 

Essential Legal Documents

·     Power of Attorney: In case of your incapacity, you can assign someone to act on your behalf for your financial or other accounts.  This document can authorize someone you trust to pay your bills, take care of your utilities and any other financial affairs.

·     Healthcare documents: These documents designate your wishes for the end of life procedures (think of the Terri Schiavo case). Also, these designate who gets your healthcare documents, or who can make health decisions for you. These documents include:

1. CA Advance Healthcare 
2. Living Will
3. HIPAA

·     Will and/or Trust: In case something happens to you, a Will or Trust designates who will be an executor or trustee of the estate, and how your assets are distributed. Talk to your attorney to find out whether a Will or Trust best suits your needs.  I am a big proponent of a Trust as it avoids probate (you can read more about this topic here). A Trust Package plan should also include a Pour-over-Will and all of the other documents mentioned. It is best to discuss your personal situation with a trusted attorney.

·     Guardian Instructions: If you are the parent of a child under 18 years old, creating guardian instructions is very important to ensure people you trust to take care of your child in case something happens to you. You can also include specific instructions about your views on education, religion or any other matters, such as medical conditions or food allergies. 

Additional Items to Review:

It is a great idea to review beneficiary designation forms from time to time to be sure they reflect your current wishes. If you were recently married, divorced or had more children, look into the following policies/plans to verify they reflect your wishes. 

·     Beneficiary designation(s) on your  life insurance policy

·     Beneficiary designation(s) on your  retirement plans

·     Beneficiary designation(s) on your investments accounts 

You may consider adding a few of these recommendations to your New Year resolutions. It will give you peace of mind that you took care of some essentials.  

Wishing you a happy, healthy and prosperous 2012!

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I hope you had a nice Thanksgiving holiday whether it was with family, friends or some R&R alone. I spent mine with my family and mom, here in the Desert, amazed at the gorgeous weather we had that day. You can see the picture of my daughter and me on a boat ride we took at the Desert Marriot during the Thanksgiving break. I love Thanksgiving as we really tend to focus on what’s the most important to us - simple joys of being around your loved ones and remembering all those things we are grateful for.  

As I had a bit more time Thanksgiving morning, I briefly looked over news sites and found quite a few articles mentioning Steve Jobs. His legacy and impact is certainly felt in a way we do things every day. I am able to write this, listen to music, watch movies and let my daughter play piano on a device he created. But the article that caught my eye was not about Steve Jobs & Apple –it was about Steve Jobs’ $4.6B in Disney shares. It was announced in this brief article $4.6 billion worth of shares in The Walt Disney Co. are now in a trust run by his wife, Laurene Powell Jobs. 

Back in October 2011, Forbes Magazine stated Steve Jobs has most likely protected his estate with a living trust, but the extent of all of his planning is most likely to stay private as living trusts provide privacy protection (another strong advantage of the trust).

Use of a living trust to carry stock or financial accounts might have made news in Steve Jobs case, given the celebrity status and the sizeable amount but it is frequently used as an estate planning tool. You certainly don’t need to own millions in stock accounts to use this tool to protect you from probate court. 

Over the last few years, I have seen that this time of the year people start to think about creating a trust or restating the one they currently have to better reflect their situation. If you own stocks at this time, or a sizeable amount in financial accounts, you might want to consider putting them in the name of the trust. Check with your financial advisor as to how your account is titled and then, if appropriate, ask for recommendations on how to go about creating a trust. You can read about the advantages of creating a living trust here.

Have a great week everyone!

Daryl

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One of many reasons, I love living in the Desert is the sense of community. Whether it is volunteering, donating big or small, almost everyone I know is involved in some sort of giving with a local school, shelter, church or other charitable organization. Here, in the Desert, it seems, general attitude is one of generosity.

I had my own gut feelings that perhaps maybe, just maybe, amidst all the bad news about the economy that struggling non-profits on our local level might be more resilient and doing better than expected.   Personally, I have attended quite a few fundraising events since the beginning of the year and was struck by generosity of everyone attending.   Events like 2011 Palm Springs Film Festival and Zoobilee benefiting the Living Desert brought in more money than expected. Even fundraising efforts of local schools, like my daughter’s school, reported record breaking numbers this year.  Is it possible that things are not as bad as expected, or better yet, are we doing better? I was curious to find out more.

Sandra Viden-Martins from the local Animal Samaritans SPCA said “Animal Samaritans continues to be challenged by a need for additional charitable contributions to support its programs and services. We are pleased, however, that an increasing number of caring individuals have chosen to include the organization in their estate planning. As well, our “Men of the Desert” fundraiser in January was well attended and helped introduce Animal Samaritans to a number of new supporters.” 

Photo from the recent 2011 Walk for the Animals -Animal Samaritans SPCA

Jasenka Sabanovic, serving on the board of Women Leaders Forum and Shelter from the Storm said: “Many organizations are looking for different, more creative ways to raise money, like Bachelor Auction (benefiting Shelter from the Storm). If someone has to choose, they will always go for more entertaining and fun event. Also, event planning is cutting on cost a lot, so it seems that we are raising more money. It is a good thing, that way more money goes to charity, versus the event decorations for example.”

Some interesting data came from the recent Desert Estate Planning Council Meeting where the topic was charitable giving. CEO of the Living Desert said that while it was too early to be optimistic, he is encouraged to see that despite downward trend of dollar value of gifts that number of gifts is steady or trending upward. 

Also at the same meeting, Raúl Bustillos, SVP & Inland Empire Market Manager from Bank of America presented the findings of Nonprofit Finance Fund 2011 Survey and 2010 Bank of America Merrill Lynch Study of High Net worth Philanthropy researched and written by The Center of Philanthropy at Indiana University. He presented these findings with preface that we, here in the Coachella Valley, might be better off than others due to more diverse population. 

According to Nonprofit Finance Fund 2011 Survey “America’s Nonprofits struggle to meet fast climbing demand for services and 87% of nonprofits say the recession has not ended.” Below are some findings from this survey that I found interesting. 

    "2011 will be another tough year for non-profits and the people they serve

• 85% of organizations expect an increase in service demand in 2011; just 46% expect to be able to fully meet this demand.
• 60% of organizations have three months or less of cash on hand; 10% have none.

            Yes, there are signs of hope:

•  44% of nonprofits reported ending 2010 with a surplus, a move in the right direction from 35% who had surplus in 2009.
• 25% of organizations added to reserve funds in 2010.
• 35% of organizations raised more revenue in 2010 than anticipated.
• “Lifeline” organizations that provide critical services to people in need are finding it     particularly hard to meet the demands in their communities

    Nonprofits are coping with the “new normal” of fewer resources…Over the past 12 months: 

• 55% added or expanded program and services
• 49% increased the number of clients served
• 47% partnered with another organization to improve or increase services offered
• 39% reduced annual expenses
• 36% relied more on volunteers. "

Some of the more interesting parts of the 2010 Bank of America Merrill Lynch Study of High Net Worth Philanthropy include the following ( please note that findings reflect data compiled by the end of 2009

" High net worth households continued to support charitable organizations at levels seen in 2005 and 2007 (98.2 % of high net worth households donated to charity in 2009)

• Average charitable giving by high net households between 2007 and 2009 dropped 34.9%.
• A few subsectors saw increases, between 4% and 21%, in the average amount given by wealthy households including arts, environmental/animal care, international causes and to giving vehicles. Other subsectors saw more significant declines from 2007, with giving to health experiencing a 63.7% decline, education a 55% decline, and combined purpose organizations (such as United Way, United Jewish Appeal, or Catholic Charities) experiencing a 44% decline.
• The more high net worth individuals volunteered, the more they gave.
• Over half of high net worth individuals gave their largest gift in 2009 to fund the general operations at nonprofit organizations. Approximately, 36% of high-net households gave their largest gift to fund a particular program, and 23.5% gave to support the growth of the organizations. Households were less likely to give their largest gift to support capital gifts (e.g. construction of a building or to purchase equipment) in 2009 (14.2%) than in 2007 (23.6 %). 
• The top three reasons why donors reported they stopped giving to a particular charity is because

o    They were too frequently solicited or asked inappropriate amount (58.9%)

o    They decided to support other causes (34.2%)

o    Their household circumstances changed (29.4%)"

”

As an estate planning attorney, I am personally interested in this topic as charitable giving is something many of my clients think about as they plan their estate. The most common vehicle they use is leaving certain percentage of their cash estate to the charity in their trust or will, but also giving specific assets such as jewelry, paintings, unused land is viable option for many.

If you are interested in donating your time or money, check with your favorite organization what you can do to help. Each organization will most likely have their forms on how to donate cash or specific assets in your trust and will. Besides money or volunteering, many organizations need professionals on their Board who have business acumen, specific industry experience or can provide their professional insight how to raise money.

As a final thought, I sense that cautious optimism many non-profits feel about economy and charitable giving is backed by knowledge that we are fortunate that we live right here, in the Coachella Valley, where philanthropy is responsible for building so much of our community, and the spirit is the one of generosity.

If you have a thought on this subject or work with the local non-profit I am curious to know your opinion. Please comment below or message me privately at daryl@binkleylaw.com.

Photo below: My wife Ana & I @ 2011 Zoobilee 2011 benefiting Living Desert 

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As anyone that knows me can attest to, I love entrepreneurs. My wife would tell you I was an entrepreneur since I was in diapers...

Today, I am surrounded by a good number of them, and many of them are friends. I work, network and support that entrepreneurial spirit in others...So when a networking group of entrepreneurs I am involved in (current Vice President of the BNI Desert Professionals--Rancho Mirage Chapter)  was thinking about charitable giving I was particularly interested in supporting young entrepreneurs.
 
So this year, I am pleased that our group of 17 business owners awarded our first Rancho Mirage BNI Chapter Entrepreneurial Scholarship of $1,750.00 to Jensen Bryant of Palm Desert High School.  He is an amazing young man--Eagle Scout, extremely high academics, and has an entrepreneurial spirit!

I see only blue skies and a bright future here.  Congrats Jensen!  As a member of the scholarship committee, he made our selection process much easier. 

As a father of a 5 year-old, I feel strongly about education and the need for scholarships to qualified candidates that my law office gave $500.00 to the scholarship fund.  Our chapter overall gave $500.00 from its "kitty" and a few other business owners in the group combined contribution was the other $750.00.  I hope that this is just the beginning of our new tradition. 

At the Senior Scholarship Awards Ceremony -- Miramonte Resort in Indian Wells, CA on May 17, 2011
Pictured from the left: Maria Dobkin (co-owner of Mr. Rooter Plumbing Palm Desert) Ana Radisic (Law Office of Daryl Binkley) Jensen Bryant (winner of BNI Desert Professionals 1st Entrepreneurial Scholarship) Daryl Binkley, Attorney & David Dobkin (Owner of Mr. Rooter Plumbing Palm Desert)

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Amid all the bad news about economy, I love hearing the good news about entrepreneurs and start-ups making their own mark and taking charge. Just recently released report by Kauffman Foundation ranks California among the nation's leaders in start-up businesses. According to the recent article, “More people hung their shingles and started businesses in 2010 than at any time in more than a decade.” Most of them started business with very little or no help/employees as this Inc. article points out.

We caught up with Yon, the owner of the recently opened Tutti Frutti of Palm Springs to chat about yogurt, business and favorite places in Palm Springs.

 Q: How did you decide on starting this venture?

A:  I decided to open my own frozen yogurt store after working many years in the Real Estate and Mortgage industry.   When the mortgage melt-down and the economy went bad, things got very stressful. I had well-qualified clients I couldn’t get the loan for, while others had to give up their homes. I wanted to get out of that and go into something that was fun, made people happy and could still pour my energy into. I was always happy when I visited self-serve yogurt shops in Long Beach area with my kids.  I really enjoy being my own boss and make customers happy as they have their first bite of my fresh creamy yogurt.

 Q: What is your business motto or philosophy?

A: Always put the customer first

 Q: Your favorite places to hang out in Palm Springs?

A:  Personal favorites include looking down from the Aerial Tramway or The Grind and casting for lunch over at Fisherman's.

 Q: It turns out indulging in yogurt is healthy--can you tell me a bit more about health-benefits of yogurt?

A:  Tutti Frutti is a healthier desert choice than many other treats because it is non- fat, you can control the portion size and you can  top it off with some of our fresh fruits or nuts.

Q: And the most important question- what is your favorite flavor?

A:  My favorite flavor is one of the tart based ones mixed and blended with fresh fruits like Mango, or a vanilla based one like Taro and or Pistachio

 To learn more about Tutti Frutti check out their website http://tuttifruittips.com/

Photo of Ribbon Cutting Ceremony at Tutti Frutti Palm Springs
Yon Pictured on the Left Side of the big Scissors

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