One of the biggest themes of this year’s exciting campaigning has been change. While used in different contexts by different candidates, experts agree that regardless of who wins the 2008 election, changes in tax rates are all but inevitable. The following quickly summarizes the specifics on how each candidate plans to modify tax policies should they be elected (source: Barron’s 2/11/08 Special Report: Tax Planning). Note that the current highest capital gains and dividends rate is 15% and the highest marginal tax bracket for ordinary income is 35%.
 
Barack Obama looks to raise taxes for the wealthy to fund tax credits for the low and middle-class workers. He plans to raise the capital gains rate to 24% while granting tax exemptions for start-up companies to encourage job creation and would increase the highest marginal rate to 39.6% (the pre-Bush rate).
 
Hillary Clinton plans to raise capital gains rate to 20%, to tax dividends as ordinary income and to also raise the highest marginal rate to 39.6%. She will raise taxes on oil companies to promote efforts to build an environmentally healthy infrastructure.
 
John McCain plans to uphold Bush’s tax cuts and keep the 15% capital gains and 35% ordinary income rates. He hopes to create a tax code that is “simpler, fairer and flatter.” While this strategy aims to avoid change and its associated tax hikes, the Bush tax cuts are set to expire in 2010. With democrats most likely controlling both the House and the Senate, a stalemate will result in a return to pre-Bush rates of 20% capital gains and dividends and 39.6% ordinary income.
 
Thus regardless of November’s election results, tax rates are most likely on their way up. And most experts agree that the increases will occur in the next year or two. Now is the time to take advantage of our current low rates!  This is especially true for investors holding a concentrated position in a single asset. It may be a good idea to reduce risk and diversify the portfolio efficiently by selling a portion in 2008 to take the capital gains at the 15% rate. Be sure to talk to your accountant or financial planner about how tax increases might affect your portfolio and financial future. And continue do your homework on who (and what kinds of changes) you are voting for in November!

The other day EWN held it's January Kickoff Event to a Sold Out crowd of amazing professional women from all ages, back grounds, professions, lives, etc. It was a sight to see ~ when only yesterday we didn't exist?  The power of women to connect and support each other amazes me.  The strength in their resolve to do what's right and make an impact is remarkable.  Over the last 6  years we have built Trust among our members and guests and have created the largest professional women's organization in the MIDWEST by FAR! It just so happened that the other day I read an article about the "Ten Ways to Build Trust" and I realized these are the ways we are building our organization. Here goes:  1) Keep your promises and follow through with commitments; 2) Realize that Trust is up to you; 3) Trust people who are different from you; 4) Forgive and move on; 5) Tell the truth; 6) Communicate openly and honestly; 7) Be a good listener; 8) Work at building trust when there is problem; 9) Learn to recognize whom to trust, 10) Trust yourself 1st and foremost to do the right thing at the right time! 
I hope that if you read this note you will also take the time to "click" on one of the EWN Radio Topics so you to can hear what we accomplish at our monthly meetings. Isn't it time for YOU TO GET CONNECTED with EWN?  Georgia Dudley, Founder, Empowering Women Network, Inc.

Last week, the American Dialect Society convened at the Hilton Chicago for its 18th annual voting upon the Word of the Year. I must have heard the news story repeated a half dozen times: the newly elected 2007 Word of the Year is sub-prime. It was probably an obvious choice given the widespread publicity of the recent “credit crunch.” Nevertheless, I was slightly bothered to learn that the gloomy real estate term was chosen to best represent this past year’s American culture. I see the choice as a testament to the strength of the media and its drastically negative outlook on the economy and beyond.
 

The sub-prime mortgage crisis has certainly dominated headlines over the last several months. And accompanying these stories of rising foreclosure rates has been news of soaring gas prices, the weakening dollar, and an impending recession. To be clear, I’m not making the argument that these troubling issues aren’t valid and newsworthy. It’s just that the bearish media has been so relentlessly focused on the negative aspects of the U.S. economy that it’s been easy to forget that there have been and still are plenty of positive attributes to keep in mind.

The S&P 500 returned 5.49% in 2007 - the fifth year in a row of positive performance in the market. Interest rates, inflation, and unemployment are relatively low. Stocks are not overpriced as they were in 2000. Exchange rates affected by the weak dollar have raised demands for U.S. goods worldwide. It’s an election year and 17 of the last 20 presidential years have produced positive total returns for the S&P 500. While we head into what looks to be a volatile new year in the markets, keep in mind we are not in the doomsday scenario the pessimistic media leads you to believe.  Smart investors should stay calm, disciplined and focused on the long-term while being wary of media reports whose primary objective is to sell the news!

Following is the last decade of America’s favorite trendy words (see http://www.americandialect.org for full definitions).

2007 - subprime
2006 - plutoed
2005 – truthiness (of the Colbert Report jargon)
2004 – red state, blue state, purple state
2003 – metrosexual
2002 – weapons of mass destruction (WMD)
2001 – 9-11
2000 – chad
1999 – Y2K
1990’s Decade – web
20th Century – jazz
1998 – “e-”
1997 – millennium bug
 

In Gail Evans book "Play Like a Man Win Like a Woman", Chapter 6 "Six Things Men Can Do at Work That Women Can't" she lists those six things she believes men can do in the work place that women can not!  Let's take number one because it's been in the news this last week and addresses Hillary Clinton's tearful episode the day before the New Hampshire primary. Gail Evans writes - They Can Cry. You Can't.  She goes on to say "Men can get away with tears because it's unexpected. Men believe powerful people don't cry. If they do, they must have an excellent reason.  Women on the other hand are expected to cry.  And when we do, men think it's because we're giving in to a natural instinct or worse, they think we're using tears as a game prop, a tool to manipulate them into feeling guilty."  So the question is why did Hillary cry?  Whether Gails theory is true or not what is true is that perception is reality and in Hillary's case it seems that most of the men interviewed do indeed see her tears as manipulative.  I have watched that clip over and over again...and believe she was "feeling" what she was saying. Perhaps she's been trying to HOLD BACK those tears for a very long time because she's read Gail's book and knows it's something she shouldn't do? I wonder what Gail thinks? When you think about it the impact of that moment may have even given her an edge the next day and ultimately the WIN in New Hampshire.  What do you think?  Come back next week for #2....Georgia Dudley, Founder, Empowering Women Network, Inc.

HAPPY NEW YEAR! As we bid adieu to 2007, become adjusted to writing 2008 on documents, wonder what lies ahead, and make New Year resolutions, what are you thankful for last year?
1. Think of at least one hurdle in your career and personal life that you jumped last year. 
Before we can move forward we need to be grateful for the past. What are you thankful for in your career? Perhaps you and/or your team reached the department’s goals. Maybe you took a risk and asked your boss for a raise. Or, followed your intuition and passion, took the leap and started your own business this year, like several non-members I met at the holiday (speed networking) program. I am sure they sprung at the chance to join the best women’s group, EWN.
Are you thankful of the fact that you enrolled in a Masters Degree program? You have delayed this decision due to the cost and commitment factors on you and your family. But, after researching your field you discovered that obtaining this magnificent achievement would put you ahead, or in line with your colleagues.
How about your personal life? What are you pleased that you accomplished? Congratulations on meeting your 2006 goal of learning how to dance like on “Dancing with the Stars”, even though you know you will never tango with celebrity winner and two-time Indianapolis 500 champion driver, Helio Castroneves. Who cares that you step on your partner’s toes and forget the steps time to time. It is the fact that you make a commitment and followed through.
We are all thankful of our health. Even though we are a year older, hopefully, a year wiser, without good health we would have difficulties managing our career, personal life, and family. So, no matter what 2007 brought you, be thankful of the challenges and opportunities.   
2. Invest in Yourself First.

You have heard financial experts tout paying yourself first - and saving it - well the same goes for your career and personal life. I am sure you know a woman who has a wonderful family, a great job, and volunteers on a plethora of boards, and obviously does not have time for a bubble bath or a massage. Maybe that person is you. For many women it is easy to give to others. Somehow we were raised that way. Maybe it was the unwritten rules. The house must be clean and straightened – even if you have a cleaning lady. The laundry basket must never overflow. …and the list goes on. What is on your responsibility list? Write down what, or how, you can have “me” time.  Whether it is an hour a week or daily you be the judge. Stretching yourself thin will lead to burn out.

 
3. Underpromise to Overdeliver.
When creating your New Years Resolution or goal(s) for the New Year, instead of reaching for the moon, reach for the telescope first. Forgo the all or nothing thinking too. Why make an unreasonable resolution? Would you make an offer your client or customer that you knew you could not deliver? Of course you wouldn’t. So, avoid doing it yourself. Instead of giving up sweets entirely, reward yourself to one serving size once or twice a day, as long as you eat healthy the rest of the day. (Yes, you have to carefully read the label.) As you time progresses alter your goal. For example, you want to obtain 12 new clients this year, and then cut the goal down into smaller increments. Define your strategies to publicize your company, and then set monthly and weekly goals to make it more achievable.
4. Tell and Lean on Others.

Don’t keep your goal(s) a secret. Tell your family, friends, co-workers, and hire a coach if need be. (You can find one through EWN.) Why tell someone? These people are your cheerleaders and coaches. If you share your resolutions and the value of your goals with others the more likely you will meet the finish line.
5. Create a Plan B.
Just like in business you need a back up. Have a strategy in place if you break your goal. That way you will have a game plan to jump back on course. Remember it is just a set back. Learn from it and move on.
6. Celebrate the Accomplishments Along the Way.
As you reach closer to each goal reward yourself. It doesn’t have to be your favorite food or beverage; it could be downtime to see the symphony with a friend, or a massage from your spouse. Celebrate – because YOU’RE WORTH IT!

Has anyone else found themselves amidst the annual disbelief that Christmas – and hence the end of 2007 – is already right around the corner? While our thoughts go foremost to shopping and party-planning, it may be in everyone’s best interest to take time out of our hectic holiday schedules to focus on year-end finances. The following are a few easy ways to potentially lower your tax bill if you take action before January 1st.
 
Look for losses
Take a hard look at your investments and if you have significant capital gains this year, then it may be smart to sell select securities for a loss. Capital losses effectively negate capital gains and are deductible up to $3,000 per year to the extent that losses exceed gains. With all of the recent volatility in the markets, now is a great time to look for these opportunities to take some strategic losses.
 
Avoid Capital Gain Distributions
Actively-managed funds often have significant capital gain distributions in the month of December. Whether or not you’ve owned the fund all year, you will still be liable for taxes on the distribution. Be sure to avoid buying into these funds prior to the distribution. It may even be beneficial to sell out of an existing fund holding to avoid the distribution.
 
Maximize your retirement savings
While you have until the April 15th deadline to make your 2007 contribution to an IRA or Roth IRA, the opportunity to contribute to your employer-sponsored plan ends December 31st. It’s important to make sure that you’re taking full advantage of your employer match (free money!) and that you are making efforts to max out your 401(k) savings. The 2007 contribution limit is $15,500 with $5,000 additional catch-up contributions allowed for those over the age of 50.
 
Pay off deductible expenses
Take some time to brainstorm ways that you can increase your itemized deductions. You might want to pay off your state and property taxes early to accelerate your federal deductions. It might be a good idea to make an extra mortgage payment in order to deduct the interest.
 
‘Tis the season to give a little - or a lot!
There’s no better way to simultaneously support the important people and organizations in your life while significantly improving your tax situation!  In 2007, you can gift up to $12,000 per donee with no tax consequences or reporting necessary.  In general, all gifts made to charities by December 31st are deductible for 2007.
 
The New Year will be here before we know it, with tax season soon to follow! Taking some time out in the next two weeks to consider year-end tax issues now could pay off handsomely in April. I hope that you all have a wonderful holiday season – looking forward to seeing you in 2008!

At this time of year most of us are thinking about the upcoming Holidays, all the things we have to do and whether it will get done.  Well, I would like to share the importance of balancing your professional and work life with your precious personal life during this amazing time of year. Specifically, setting boundaries and knowing when it’s time to stop working and GO HOME!  Whether you are traveling to see relatives this Holiday Season or simply spending your Holiday at home going home is the answer!

I have found one of the 
keys to success is knowing your limit and setting boundaries for yourself. Be aware of what you can and cannot do! If you never stop working and continue to take on more and more, you will start spinning because there will not be enough time to do it all.  When you start spinning, time becomes a warped image and there’s never enough of it and you will start "chasing butterflies". You will feel like you are working harder yet you will see that you are accomplishing less.
 

Our mind, body and soul need rest this holiday season.  Most of my best ideas have come while walking my dog Daisy. This season I hope each of you take time to GET UP and GET OUT.  Reward yourself for all the hard work you've done in 2007 with a long walk, spa day or a movie with family and friends!

See you in 2008 – I have to go now, Daisy is calling! 
Happy Holidays!  -Georgia Dudley, Founder and President, EWN

With the official beginning of the Christmas Holiday Season underway, it is a good time to remember the importance of keeping your credit card information secure.  With just a few basic pieces of information such as your social security number, driver's license number, address and one credit-card number; a thief can create an entirely new persona.  The initial theft is often done the old fashioned way - a thief steals a wallet or goes through mailboxes or dumpsters.  Once he/she has these above key data, new loans, insurance and/or credit cards can be taken out very easily.
 
The main prevention is to reduce access to your personal information.  Remove your name form marketing lists of the three major credit reporting bureaurs to limit the number of credit offers coming to you.  The opt-out number is 888-567-8688.  Do not have your social security number on your checks or as your drivers license number.  Do not leave bills with checks as payment in your home mailbox.  Shield your hand when entering PIN numbers at ATM machines to avoid spying by video cameras or binoculars.  Review your monthly bank and credit card statements for unauthorized use and then shred them.
 
Check your credit through each of the three credit bureaus once a year:
 
Equifax Information services 800-685-1111
Experian (TRW) 888-397-3742
Trans Union 800-888-4213
 
If you so suspect someone may be using your identity, contact your state's Attorney General's office to start the process of cleaning up the mess.
 
I have known a few people that have credit cards opened in their name.  Luckily, they were able to quickly identify the issue and completely resolve it after a fair amount of effort. Does anyone have an identity theft story to share?
 
 

One last post-script (P.S.) for all you fellow road-warriors out there: the recommendation about getting to the airport two hours earlier than your flight seems extreme, but I found out it's a pretty good idea.  I was moseying along last week, thinking I had plenty of time to drive to O'Hare, park in the main parking lot and zip over into the terminal, with adequate time for getting through security in order to catch my flight to Detroit.  I usually take a car service, but this trip was only an overnight, so the daily parking fee seemed like a better alternative.  Alas, the parking lot next to the terminal was full!
 
Not only was that one full, but the valet parking was closed as were all the long-term parking lots except Parking Lot F.  "F" stands for.... far, far away.  I was pretty sure I could see the Wisconsin border from where I parked.  After getting onto the bus which took me to the tram which took me to the airport, I did indeed miss my flight.  Thankfully, I had plenty of work to do while waiting to get onto the next flight on stand-by (hallelujah! I made it).  I was told by my fellow road-warriors that Wednesdays and Thursdays are the busiest at O'Hare and it isn't uncommon for the main parking lot to be full.  So my last tip about business travel?  Either arrive at the airport very, very early so you can park in the hinterlands, or call me and I'll give you the name and phone number of Bob, my limo driver.