Utah Business Blog

by Dave Young, President of Paragon

A 20-year study by Dalbar concluded that between 1987 and 2007 the average investor only earned 4.5%. During that same period of time the S&P 500 returned 11.8%. We all know it is tough to make money during bad markets. But why, even during the best of times, do the majority of investors suffer from poor performance?

One of the reasons is that they don’t stick with their investment strategy during difficult markets. When markets go up, investors are attracted to the market and stay invested easily. When the market starts to go down, most investors still stay invested. It’s usually after the market has fallen significantly that panic sets in and investors bail out. They usually bail out close to the bottom right before the market starts to rebound. This pattern repeats itself over and over with the result being that most investors are constantly buying high and selling low.

If your investment risk tolerance is set too low, you won’t generate the returns you should. If it is set too high, when market conditions become difficult, you will likely sell your investments and miss out on superior long-term returns. Setting your risk tolerance and then aligning your portfolio with it allows you to reduce your portfolio volatility to a level that you can live with.

Before you invest, you need to ask yourself how you will react if your portfolio drops five percent. What about 10 percent? What about 20 or 30 percent? At what point would you want to sell out of your investments and run for the hills?

Once you answer that question, then your portfolio should be invested so you never hit the point that will force you to sell at the market lows. That will allow you to follow your investment strategy over the long-term and be invested when the best opportunities present themselves. It will also allow you to generate the best possible returns over the long-term.

Over my 23 years of wealth management experience, I believe that determining your risk tolerance is one of the most important steps an investor should take.

If you are married, both you and your companion should take the questionnaire and compare the results. Since identifying your tolerance can be difficult, Paragon Wealth Management created a short risk tolerance questionnaire to simplify the process.

Click on this link- risk tolerance survey, to complete a short questionnaire to help you identify your investment risk tolerance.

Paragon Wealth Management is a provider of managed portfolios for individuals and institutions.  Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy.  All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice.  This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.  Past performance is not a guarantee of future results.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By Clark Roundy, Luxul Wireless VP of Marketing

As we kick off the new year, it’s a good time for organizations to take inventory of last year’s marketing programs to evaluate what has been working and what needs to change. In many cases tweaks will be made—in others, a complete overhaul may be in order. Regardless, it’s safe to say that in the new economy most marketing managers are being forced to look at more creative ways to deliver their key messages.

Luxul Wireless is no different. Some of our 2009 programs have been tremendously successful and we will look to expand upon and improve them. At the same time, there are other marketing activities we will certainly reconsider and perhaps discontinue. After all, every program has a cost—even the “free” ones. And, with limited resources and a competitive market, it’s important that we focus on those activities that will deliver the best results.

As a company that sells primarily through distribution channels, much of our marketing effort goes towards leveraging channel partner programs. These programs consist of everything from advertising in channel publications to participation at tradeshows to providing sales training. Each of our channel partners has any number of marketing opportunities, some of which have been fantastic in helping to build Luxul product and brand awareness.

Nevertheless, we can never underestimate the importance of independently building the Luxul brand—a strong brand inspires confidence and is critical to the success of channel and partner activities. However, traditional brand development activities such as advertising and tradeshows aren’t a significant part of the plan. Rather, to further carry out our brand development efforts, we will be looking to complement our channel programs with targeted media relations activities, website optimization, social media marketing, educational webinars, and opt-in email campaigns. Doing more with less is a key Luxul product message that also epitomizes our business philosophy.

Personally, I’m glad to have 2009 behind us and am looking forward to the start of this new year. Overall, 2009 was a solid year for Luxul. More importantly, it was a year in which we positioned the company for high growth. In executing our 2009 strategies, some interesting markets and applications were identified that have lead to new product developments and some fantastic partnership opportunities. These opportunities will further alter some of our marketing strategies, messages, and programs. In my experience, that’s the best news of all—if those things aren’t evolving, then the company is dying. So stay tuned for some significant and exciting Luxul announcements in the coming months.

For many marketing managers with shrinking budgets, 2010 will be a year to show just how creative and resourceful you can be. As you evaluate your marketing strategies and budgets, be sure to explore online marketing, PR, and other tactics that can replace or supplement some of the more costly traditional programs. As we continue to adapt to this new economy, may we all enjoy a successful and prosperous year in Utah business!

About Clark Roundy, Luxul Wireless VP of Marketing

Clark Roundy is VP of Marketing at Luxul Wireless. Throughout his 20 year career, he has worked extensively with early stage and emerging companies to identify core competencies and implement key growth strategies. Mr. Roundy has held key executive positions at Linux Networx, Penguin Computing, Parvus Corporation, Alta Technology, and the Eyring Research Institute. His roles have included sales and marketing leadership, strategic planning, international business development, product management, and professional services program development. In his role at Luxul Wireless, Mr. Roundy is responsible for marketing strategy and oversees all outbound marketing programs as well as product and brand management.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

Continued from Financial Life Planning Part I…and adapted from articles:  Financial Life Planning:  What do you want to be? By Diliberto and Anthony and 20 Tough Questions for an Easier Future by Liz Pulliam Weston

George Kinder, in the goals-setting portion of his “Seven Stages of Money Maturity” distinguishes between having, doing and being. What do you want to have? What do you want to do? What do you want to be? Americans have put who they want to be on hold for what they can have. The fact that so many people wish they were doing something else cannot be good for individuals, the family, the workplace or society as a whole. Change can be brought through a meaningful dialog around client goals.

For example, someone who thought he wanted an early retirement may find instead that the most important thing to him is spending time with his young children. He may decide to throttle back on his career and retire later so that he doesn’t miss out on his kid’s formative years.

Or a physician who focused on working harder and creating a more aggressive portfolio in order to retire earlier, when what he really wanted was to get out of medicine because he felt the stress was killing him. The doctor’s fear of stress was creating much more stress. Ultimately, he decided to work half-time and reallocate his portfolio to be slightly more conservative, which reduced stress in his life.

The real work comes in trying to figure out how to change your life to reflect your values. Here are some questions to help accomplish this task:

* What’s standing in between me and what I want?

* What’s my plan for overcoming each of these obstacles?

* What do I have, in terms of personal strengths and outside resources, that will help me deal with these obstacles?

* What skills and knowledge do I need to add to accomplish this change?

* Are there other people I can call on for help in overcoming these obstacles?

* How can I make these changes happen sooner?

* Do I need my family’s support for making this change?

* If so, how can I rally that support?

* How can I evaluate and monitor my progress toward my goals?

It is important to not only discover your goals in regards to retirement, funding college educations, estate planning and family protection, etc., but also discover what your desires are. Instead of the obvious “I want to retire in five years”, “I want to double my money in 10 years”, etc., you should ask yourself about you core values and what is most important in your life. This begins a dialog that results in a process that will help merge your money with your life.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By John Pilmer, President of PilmerPR

Big buzz surrounds the comments of BYU QB Max Hall and the reported bad behavior of University of Utah fans. On the opposite sidelines is alleged mistreatment of Utah coach Whittingham’s daughter by BYU fans. As an alumnus of both schools in question, my thoughts about the infractions in question have covered a lot of yardage defining the problem and suggesting a solution. So, here goes nothin’. Hut! Hut! Hut!

The challenge is not solely the bourgeois behavior of fans or a rude comment by an athlete. After further review from a business communications perspective, the problem is that high profile customers gave these schools a failing grade as a host.

The company (university) challenge is creating a safe environment and a positive buying experience for customers (fans)—both home and visitor. One could easily make a case that sports tourism, whether from city to city or nation to nation, has a huge impact on school, city and state revenue. Some states allocate funds to ensure they get their piece of the tourism pie through sports. In addition to tourism, think about the legal risk for a school for out of control fans.

It is estimated that the recent MLS All-star game played in Rio Tinto stadium is to have generated about $3.5 million in economic impact for the state of Utah according to Laura Shaw, marketing director at the Utah Sports Commission.

If we can agree that each fan deserves a safe and positive purchase experience, win or lose, then perhaps all universities share the challenge and the opportunity to communicate with fans and potential customers to attract the maximum number of fans (customers).

Here are some areas to cover in such a public policy statement:

• Appreciation to fans for their attendance and support
• Value of athletic competition to the school, students and the community
• Commitment to providing safe and enjoyable atmosphere for all fans, including visitors
• Zero tolerance policy for behavior that does not create this atmosphere

(See sample public announcement)

Regardless of our school colors, or if we have more than one allegiance, I believe we can “root, root, root for the home team” without giving offense to others.

About the Author

John Pilmer, APR is the founder and president of PilmerPR, LLC. In its 6th year, the award-winning PilmerPR team provides enterprise-level expertise at a small business price. The company is a 2008 recipient of the Provo/Orem Chamber of Commerce Arthur V Watkins award for excellence. PilmerPR was recently recognized at the National Press Club in Washington, DC for its work in Corporate Social Responsibility (CSR). Also, see the KSL Channel 5 interview of the author regarding crisis communications.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By Dave Young, President of Paragon Wealth Management

Adapted from articles:  Financial Life Planning:  What do you want to be? By Diliberto and Anthony and 20 Tough Questions for an Easier Future by Liz Pulliam Weston

A new school of thought among investment advisors and financial planners is “financial life planning.” Financial life planning takes an in-depth look at the bigger picture– not only considering a client’s investment goals, but a client’s investment goals in conjunction with their life dreams, values and happiness. Instead of isolating only the monetary side of things, the life planning approach is more holistic and considers a client’s most deeply-held values.

The objective is to assist clients in visualizing their goals, then home in on what’s really most important in their lives. With the core values identified, an investment plan can be built to help make the dream an eventual reality, while helping the client incorporate those ideals into day-to-day living.

While writing the book, “The New Retirementality” by Mitch Anthony, Anthony would gather groups of professionals and half-kidding ask, “What do you want to be when you grow up?” He was always amazed at how many of these individuals, many in their fifties, dreamed of doing other things–of being something other than what they currently were.

An accountant talked about being a consultant. A consultant talked about being an investment advisor. A marketing executive talked about being a creative director, and a creative director talked about being a speaker and trainer. A speaker and trainer talked about going into television. A television personality talked about going into sales. A sales professional talked about being an executive coach.

When these people, who said they weren’t fully engaged, were asked why they didn’t just do what they dreamed of doing, without fail, they cited money issues as the reason. How many people have mortgaged who they are in favor of what they could get, and later wished they had made a more informed decision? Some estimate that it may be as much as 70 percent of our society. If it is indeed a money issue holding an individual back from his or her ultimate dream, then it may be permission from a financial professional that helps them move forward.

To be continued…

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By Clark Roundy, Luxul Wireless VP of Marketing

For the past week I’ve been traveling in the land of the Gaucho, Che, and Evita. As anyone that has visited beautiful Argentina can attest, it certainly has its allures. It is a country extremely rich in culture, diverse landscapes, and vast resources. With so much going for it, it’s hard to understand why Argentina hasn’t become more of a player on the world stage. Interestingly enough, some decades ago Argentina was recognized as one of the wealthiest nations and considered an emerging world power—neck and neck with the United States. So what happened?

While the answer to that question is far too complex for a single blog entry, the simplest answer comes down to leadership and bad management. Truth be known, Argentina has made bad management an art form that starts with government policy and leaches into everyday life. If you want a good look at how government meddling in the free market and imperious leadership can impact the psyche and culture of an entire nation, Argentina is the perfect case study.

Argentina is renowned for producing some of the best beef in the world. The conditions are also favorable for virtually all kinds of agricultural production. With the right focus and mindset, Argentina is capable of feeding the entire world. Yet, bizarre government restrictions, unclear regulations and high taxes on many agricultural exports act as a deterrent to export many products to other countries. Government meddling in the ranching industry has kept beef prices low, while forcing many cattle ranchers to look elsewhere to make a living. When it comes to imports of technology products, high taxes have made modernization a real challenge. Likewise, outrageous taxes on items considered to be luxuries can mean double the price for an automobile that would hardly be considered a luxury in the U.S.

These governmental idiocies have had a trickle-down effect on Argentine business, society, and culture. Farmers have been known to burn their crops, rather than sell at government regulated prices. Argentine banks are magnificent architectural specimens, yet simple transactions can take hours due to bureaucracy or outdated methods and technologies. Labor strikes are commonplace—happening pretty much on a weekly basis. During another recent visit, I traveled to Rosario, a city of some 1.5 million residents located 150 miles northwest of Buenos Aires. Upon arrival, I immediately noticed something peculiar—there was not a single taxi to be found. Apparently, all the taxi drivers were on strike because a driver had been assaulted the night before. Are you kidding me? Welcome to Argentina, where nonsensical leadership has produced a citizenry where common sense is not always so common.

As business leaders, it’s important to remember that corporate culture starts at the top—YOU set the tone. Corporate culture is more a reflection of leadership style and policies than of the individuals that make up your team. Your leadership style will show in the culture you create—and will ultimately be reflected in the bottom line.

About Clark Roundy, Luxul Wireless VP of Marketing

Clark Roundy is VP of Marketing at Luxul Wireless. Throughout his 20 year career, he has worked extensively with early stage and emerging companies to identify core competencies and implement key growth strategies. Mr. Roundy has held key executive positions at Linux Networx, Penguin Computing, Parvus Corporation, Alta Technology, and the Eyring Research Institute. His roles have included sales and marketing leadership, strategic planning, international business development, product management, and professional services program development. In his role at Luxul Wireless, Mr. Roundy is responsible for marketing strategy and oversees all outbound marketing programs as well as product and brand management.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By Allen Bostrom, CEO Universal Accounting

In December, every retailer in Utah is focusing on sales for the holiday season.  Forecasts are predicting another uncertain holiday spending season, but retailers can take steps to bolster volume and revenue per capita.

The key to a successful holiday retail season is to have an established plan complete with daily goals and targets.  In particular, retailers should consider the following tips to enjoy a successful 2009 holiday season:

1. Use sales numbers from past holiday seasons as a milestone to create a plan based on specific sales, volume and net income goals.

2. Share daily and weekly performance goals with all staff and provide incentives and rewards for achieving those goals.

3. Compare sales performance goals to actual performance on a daily & weekly basis & review with employees.

4. Focus on strategies to increase store volume and revenue per customer (free offers such as free shipping, gift wrapping, gift with $100 purchase, complementary product packages, etc.)

5. Promote your gift card program. Estimates indicate more than 10% of holiday sales will be for gift cards.

Retailers should know their accounting numbers from the previous two seasons, and track and compare daily figures to stay on top of their organization’s ongoing progress and objectives.

Allen Bostrom is the CEO of Universal Accounting and an expert in business management. He is the author of In the Black, and Red to Black in 30 Days.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By Dave Young, President of Paragon Wealth Management

When is debt okay?

If it is used to purchase an appreciating asset such as a home, an education, a business, a car (to provide transportation to work), etc.

When is debt NOT okay?

When spent for any depreciating asset. This includes just about everything except what is listed above. Any time you are going into debt for something you don’t need and don’t have money for, it is NOT okay.

The key to staying in balance is the issue of NEEDS versus WANTS. Everyones needs and wants are different depending on your financial situation. Only you can determine specifically what your needs and wants are and your flexibility.

Four Steps to Help you Stay out of Debt

Step 1- Put together your personal budget with serious attention to identifying your needs versus your wants.

Step 2- After your bills are paid and a portion of your income is put into savings, determine what you have left to spend. This is called your discretionary income.

Step 3- Make a list of wants or things you would like to purchase.

Step 4- Prioritize your list of wants and then only purchase those things that you actually have cash to use. Do not go into debt by spending money you don’t have.

Never spend money you don’t have. It sounds simple. It is simple, but it takes discipline. Mastering the proper use of debt is one of the seven steps to building wealth.

About the Author

Dave Young, President and founder of Paragon Wealth Management, started Paragon in 1986. Today he continues to invest and research ways he can improve his business to serve his clients better. His methods have attracted national and local attention. He has been interviewed by BusinessWeek, CNBC, the Wall Street Journal, the Deseret Morning News and other national and local media. He has also written articles for Utah Valley Magazine, Paragon’s blog, Money Managers Live and others.

Paragon Wealth Management cannot guarantee the accuracy of information from other sources. Opinions are as of the dates indicated only. This report is not a solicitation for any security. Past performance is not a guarantee of future results.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

By John Pilmer, President of PilmerPR

What does Wal-Mart and the United States government have in common? Answer: buying power. According to USAspending.gov, the U.S. government spends more than $500 billion in products and services each year from roughly 230,000 different companies. It is the world’s largest buyer of goods and services. Wal-Mart is the world’s largest consumer products retailer, buying roughly $300 billion each year in products it sells in retail stores from more than 100,000 different companies.

The U.S. government and Wal-Mart’s buying power are influential in setting the stage for corporate social responsibility requirements. According to Information Management, the U.S. government and Wal-Mart will begin phasing in corporate social responsibility requirements for their suppliers and vendors over the next few years.

The move comes as no surprise with Obama’s current emphasis on the environment. In fact, Obama went so far as to put in effect an executive order. The environmental goal is to “reduce greenhouse gas emissions, increase energy efficiency, conserve water, reduce waste and use environmentally responsible products and technologies.” This is intended to benefit taxpayers through “substantial energy savings and avoided costs from improved efficiency.”

If your organization plans or wants to do business with large companies or the government in the future, then careful planning and preparation should start now. A corporate social responsibility plan will be vital for business approval.

Organizations can no longer ignore social responsibility. Whether you love humanitarian, green or goodwill causes or not, companies are increasingly required to account for sustainability and corporate social responsibility practices. Wise companies communicate with their publics on these issues and they work on “being good, before talking about being good.”

Precision Castparts located in Portland, Oregon is the perfect example. Portland prides itself as a green Mecca, but the largest company based in the city, Precision Castparts Corp., is not exactly part of the green family. Newsweek recently scored Precision Castparts as 466 out of the nation’s 500 largest and greenest corporations. They were also the lowest ranked among 21 companies in transportation and aerospace.

When the corporate office was contacted in regards to the reports not one reporter got an interview. Corporate spokesman Dwight Weber even said the company has no interest in rebutting the Newsweek report and prefers to remain low-key. However, Weber did mention they actually do have sustainable practices like, recycling waxes and reusing scrap metal for other products.

Even though Precision Castparts may be doing great things to “clean up their act” regarding the environment, they treated communication with their publics lightly in a city known for its green ways. Communication is key. As you make goals and plans for 2010 consider your corporate social responsibility plan, consider how you can prepare your organization for contracts with those who require strict social responsibility adherence.

About the Author

John Pilmer, APR is the founder and president of PilmerPR, LLC. In its 6th year, the award-winning PilmerPR team provides enterprise-level expertise at a small business price. The company is a 2008 recipient of the Provo/Orem Chamber of Commerce Arthur V Watkins award for excellence. PilmerPR was recently recognized at the National Press Club in Washington, DC for its work in Corporate Social Responsibility (CSR). Also, see the KSL Channel 5 interview of the author regarding crisis communications.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.

by R. Brent Bennett, Partner, Spectra Management

It’s one of the touchiest issues in the healthcare debate: would a public healthcare option decimate the employer-based health insurance system now used by more than 160 million Americans, of whom some 80 percent are claiming satisfaction?

Democrats who support the controversial legislation say no and adhere to the position it will actually create more competition, lower costs, and foster quality care. Others disagree.

Opponents believe the 1,900-page healthcare reform bill loaded with government mandates and a public option, light restrictions on state-centric insurance monopolies, and weak attempts at tort reform would ultimately put private insurers out of business, subsequently forcing Americans into a public-option that offers less choice, more control and restriction, and higher costs for taxpayers.

According to a recent CNNMoney.com story, the “pay or play” requirement currently still a part of the ever-growing healthcare reform bill would require businesses to pay the government $750 per full-time worker per year ($375 for part-timers) if they don’t offer health coverage, or if they offer “qualified” coverage but pay less than 60 percent of workers’ premiums. Small businesses that employ fewer than 25 workers would be exempt. The “pay or play” mandate is also geared toward individual Americans who can choose not to purchase insurance and is expected to be carried out in the form of an annual excise tax.

A key component for business, and specifically Spectra Management clients, is not just if the employer offers benefits but the mandate that 60 percent or more must be paid toward the cost of benefits by the employer and the implications this mandate could have on future businesses hiring and being forced to lay off employees.

Whether for or against healthcare reform, the “pay or play” requirement comes down to whether you believe government has a say in how business owners run their businesses.

Many in the business community contend the “pay or play” mandate would make it harder for employers to maintain a payroll with decent wages as well as the required benefits. James Gelfand, senior manager of health policy for the U.S. Chamber of Commerce, contends that the free market offers the best mechanism for sustaining employer-based insurance. According to Gelfand, “Market forces say if you want the best employees, you offer the best insurance you can.”

A recent study by the National Federation of Independent Business Research Foundation concluded that an employer mandate could eliminate 1.6 million jobs over the course of five years and reduce GDP by around $200 billion.

Moreover, CBSNews.com reporter Stephanie Condon also concluded that opposing reports make it clear that the success or failure of an employer mandate will depend on both how the employer mandate would be set up and how the rest of the healthcare reform package is structured.

R. Brent Bennett of Spectra Management is a Registered Representative of and offers securities products and advisory services through Royal Alliance Associates, Inc. Member FINRA/SIPC,
a registered broker-dealer. Spectra Management is not affiliated with Royal Alliance Associates, Inc. This information is not intended to be a substitute for specific individualized tax or legal advice. Please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.

The content of this  blog reflects the views and opinions of the author, and not necessarily those of Utah Business.