NPL Publishing Consultants

Well…some things in the news motivate me to remind you to circle the wagons… watch the women and children… make sure your underwear is tightly in place… keep your powder dry and ready (which includes a current passport)… and watch your wallets.

They are at it again. Yes, THEM.

First they villify Mr. Rick Wagoner. You remember him,,, CEO of the ‘old’ GM. Useless executive… replaced by Mr. Obama who is now in partners with the Auto Workers Union to run GM… into the ground… Beep Beep! (New advertising slogan for GM: Buy a GM… we’re gonna make you pay anyway, so might as well get something for your money!) Ousted for his ‘capitalist’ way of thinking…you know, profits and all. The government didn’t like him and the union didn’t like him. I hope they like going out of business better.

Anyway, to gild the lilly and make their case, the media made hay with the golden parachute of $20 mil for old Mr. Wagoner. By the way, officially, there is no parachute… as you’ll see in a minute. Some wanted his head, others his parachute, still others, to tax him 90% on it. Bad news guys… as it turns out, in a fit of media hyperbole… there ain’t 20 Mil in the account to pay him… so when GM goes bust, he LOSES 19 Mil of the deal. Flat out, gone, unsecured creditor.

Ohhh but let’s not shed crocodile tears for him, so sayeth the government now that they have been ‘outed’ as to their scheme to make Mr. Wagoner out to be an AIG/Lehman clone. He still gets roughly $69,000 a year for life in his retirement plan. Read it again. CEO of a major company for 7 years, 31 years with said company, 31 years with one company!… 69K for 31 years with the company! Many of the workers in the CEO Workers Union… oh, I mean Auto Workers Union, will also get 69K a year in pension. And all they ran were picket lines.

Hey, what’s fair is fair. From each according to his abilities… to each according to his needs. Oops…wrong credo!

Anyway, what does THIS have to do with publishing? Plenty.

When combined with the upcoming Part II… it makes for a scary scenario. No, I’m no trying to scare you… the government is already doing THAT. My point here is to let you know who is reaching into your pocket, and what you can do about it, before it is too late.

Keep a close watch on your business. Cash out whatever benefits you have and YOU be in control of them. Many company based retirement plans allow you to take out pieces or the whole thing, to be transferred into an IRA, tax free. Called a rollover… check with your tax person before doing this trick… then YOU are in control (until the government seizes your IRAs and 401Ks). Deferred benefits, deferred compensation… NOW!

Pay the tax while taxes are still low! In fact, if you have plans of dying, do it before the end of 2010. The tax thing, seriously, is an issue. The plan is to raise taxes BACK to Clinton levels next year… not now while we are all in trouble, but once everything is all better. When will that be… whenever the media says so, that’s when.

Pile your ‘take’ into the wagon now. Pay the tax. Then push those funds out the door… somewhere safe. Hong Kong… anywhere in Canada… Switzerland, yes, of course, you’re not doing anything wrong… declaring your interest and investment income… just keeping it out of US banks and away from the… sticky hands of the US G. What they can’t touch, they can’t seize.

I noticed something neat just now trying to do an anagram for IRS… Obama has Mao inside it… how appropriate.

If you own a small or mid sized publishing company or any company for that matter, in the US… and you have a plan (exit strategy) at some point to either sell it or die in the chair… listen carefully. There is a way… quite legal… to ensure most of the profit on the sale vaporizes. No, no, not being bought out by the government, or having your money in US dollars… but by planning for the event maybe as long as five years before, while the company is worth far less. In fact this is a good time to do it, since your company is probably worth bupkis right now anyway! Structuring it carefully, legally, and then poof! If and when, big if and big when, everything appears to be back to capitalist system, you can repatriate the money, pay some tax on it… or can bring in a fixed amount each year through a vehicle like a Swiss annuity or other program, legal, pay the tax on what comes back. Leave the rest alone for the future… not your problem.

No, I am not joking… things have to get worse before they can get better. The government has told us that. Taxes ARE going up. Estate taxes ARE going to change. 401K and IRA funds may be seized to balance the Social Security books. These are NOT jokes despite my light way of approaching this subject.

Don’t believe me? Answer this, honestly: Who EXACTLY do you think is going to pay the SEVEN TRILLION DOLLAR bill that has been racked up in the last year? Remember my motto, if you can’t see the sucker at the poker table… it’s probably YOU.

If I may be of help, drop me an email.

Otherwise, as always, you are free to comment on my writing, and if it is printable, I will.

Keep your powder dry, your stick on the ice, and your hand firmly on your wallet.