A Plan for Managing Stock Sales: 10b5-1s and SEC Rules

Corporate insiders at publicly traded companies are privy to information that can have a major impact on the share price, such as a Federal Drug Administration (FDA) approval or rejection of a new drug. As a result, corporate trading policies restrict the number of days corporate insiders can buy or sell shares. Often, these policies limit the number of open trading windows to less than 60 days per year.

Overall, insider trading restrictions include blackout periods and exposure to material, non-public information (MNPI).

These trading constraints hamper corporate executives’ ability to manage their holdings, posing a stock concentration risk within their overall investment portfolios.

There is a solution to this problem: Rule 10b5-1

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GMB Episode #126: Pulling the Wisdom From Jeff Bezos’ Investor Letters With Steve Anderson

 

It’s an undeniable fact that Jeff Bezos did some exceptional work to develop Amazon into the e-commerce giant it is today. What if you could discover Amazon’s secrets and translate them into your business? Our guest today took on the task of analyzing every investor letter addressed by Jeff Bezos to Amazon shareholders dating back to 1997. Steve Anderson, Co-Founder & CEO at Catalyit™, and the author of the international bestseller, The Bezos Letters, joins us to dive into the 14 principles that created the Amazon that we know today.

 

 

Show Notes

[02:52] Summary of Letters – Steve starts the conversation with a synopsis of the letters, as well as what we can take away from them as we manage our own businesses.

[05:08] Beginning of Amazon – Steve explains Jeff Bezos’s background, how his childhood inspired him, and how he ended up launching Amazon.

[11:14] Becoming a Tech Giant – Steve dives into the growth of Amazon from its IPO in 1997 to current day.

[24:38] Four categories– Steve discusses the four categories mentioned in his book, and provides an excellent explanation of the 14 principles.

[31:44] High-Velocity Decisions – Steve explains how Jeff Bezos used a unique decision-making process to accelerate Amazon’s growth.

[45:56] Amazon’s Culture – Steve expresses his thoughts on Amazon’s culture.

[54:40] Steve’s Background – Steve shares his background, his career as an entrepreneur, and how he came to produce his phenomenal work.

 

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GMB Ep #124: Managing Burnout As An Entrepreneur With Bunny Young

 

As an entrepreneur, wearing too many hats can quickly lead to burnout. This week on Grow Money Business, we talk about how and why it is so important for entrepreneurs to monitor their mental health and wellbeing. Bunny Young, a business consultant, former therapist, and third-generation entrepreneur joins us today to discuss what burnout it, how to prevent it, and some valuable lessons she has learned along the way.

 

 

Show Notes

[02:40] Levels of Burnout – We start the conversation with different levels of burnout and how to cope.

[05:38] PTSD –Bunny shares some signs that suggest we might be experiencing post-traumatic stress disorder.

[10:17] Burnout & PTSD – Bunny compares the signs & symptoms of burnout against that of PTSD and shares how businesses can help their staff approach mental health in a positive way.

[14:00] Preventing Big Burnout – Bunny shares her thoughts on how we can prevent a small burnout from snowballing into a big burnout.

[18:00] Workweek Patterns – Bunny gives her thoughts on why our centuries-old 40-hour workweek is no longer efficient and how entrepreneurs can make it better.

[26:00] Making Good Decisions – Bunny shares her advice for making objective and logical decisions while experiencing burnout.

[31:28] Business Background – Bunny is a third-generation entrepreneur. We talk about the businesses her parents and grandparents developed.

[38:31] Bunny’s Journey – Bunny shares her own entrepreneurial journey, and some of the career pivots she made along the way.

[53:15] Consulting – Bunny talks about her consulting firm and how they help family-centric small business owners spend more time with their loved ones.

 

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GMB Ep #123: Tax Efficient Crypto Gifting With Pat Duffy

 

The world of cryptocurrency is innovative and ever-expanding. In today’s episode of Grow Money Business, we are joined by Pat Duffy, a cofounder of The Giving Block. The Giving Block is a platform that enables non-profit organizations to receive cryptocurrency donations. Throughout the episode, Pat and Grant dive deep into the tax benefits related to crypto donations, and discuss how The Giving Block is changing the future of charitable giving.

 

 

Show Notes

[03:14] The Giving Block – We start the conversation with a brief look at what The Giving Block does and how it helps donors and non-profit organizations.

[07:10] The Process – Pat walks us through the process of what happens when someone interested in crypto gifting signs up with The Giving Block.

[10:00] Donor Advised Funds – Pat explains the process of donating via a Donor Advised Fund.

[16:33] Why Crypto? – Pat shares his take on some of the reasons why non-profit organizations may want to take crypto donations.

[19:05] Barriers – Pat discusses some of the challenges non-profit organizations face when starting to accept crypto donations.

[27:30] Getting Traction – Pat shares with us what it was like at the beginning of his service and what it took to get enough traction for the service.

[31:30] Business Model – Pat shares with us how the business model of the Giving Block works and some of the areas the platform will be expanding into in the near future.

[36:52] Managing Growth – Pat dives into their strategy of managing their growth.

[42:54] Shift4 – The Giving Block was recently acquired by the payment processing solutions company, Shift4. Pat shares what opportunities and possibilities this acquisition will open up.

[49:10] Tips for Donating – Pat shares some advice for those who own crypto assets and want to make a crypto donation.

 

Resources

GMB Ep #122: How to Retain Top Employees Amid the Great Resignation With Jeff Kortes

 

In today’s day and age, it takes more than just money to keep top performing employees from moving on to better opportunities. Jeff Kortes joins us today to discuss employee retention amid the Great Resignation. Jeff possesses a wealth of experience in this subject, and spent ten years in human resources before resigning and establishing his consulting practice. Throughout the episode Jeff shares the importance of workplace culture, as well as tips for hiring and retaining the right people for your business.

 

Show Notes

[02:51] Great Resignation – Jeff describes the Great Resignation and how the COVID-19 pandemic has affected the workforce.

[05:41] Shifts in the Workforce– Jeff explores the implications of younger workers seeking other opportunities or relocating within an industry.

[06:36] Give Your Employees C.R.A.P – Jeff discusses the correlation between workplace culture and employee retention, and shares a few ways that businesses can kill employee loyalty.

[13:33] Jeff’s Work – Jeff describes how his practice helps companies diagnose the underlying cause of their issues.

[17:52] Employee Retention Problems-  Jeff describes how he determines whether a business has undetected or misdiagnosed staff retention issues.

[20:30] Strategy and Correction – Jeff shares their top strategies for correcting issues they find along the way.

[27:35] Finding the Right People – Jeff provides his perspective on how to know that you are hiring the right type of individual for your company.

[34:19] The Future of Work – Jeff discusses the recent shift in the workplace, and how this will affect future generations’ work habits.

[36:17] Virtual Connection – Jeff and Grant discuss how to develop and sustain culture in the day and age of remote work.

[44:04] Jeff’s plans – Jeff shares his future plans and how people can connect with him.

 

Resources

Buy-Sell Agreements: Ensuring Smooth Business Transitions

Building a business is all about the day-to-day decisions. But what happens to the business if the primary decision-maker isn’t there? Creating a continuity plan that outlines transition planning should be part of the foundational documents of a business at any stage. Valuing the business, codifying the steps that will be taken and planning for transfer of ownership can help protect both the business and the interests of everyone involved – including family.

When partners start a company, they may document how to maintain its management and control if a partner dies, becomes disabled, or leaves the company. A well-designed, buy-sell agreement, or buyout agreement, is a legally binding agreement between co-owners of a business that stipulates the procedures if a co-owner dies, chooses to leave the firm, or retires.

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GMB Ep #120: A CFO’s Perspective on Managing Cash, M&A, ESOPs, & the Changing Business Environment

 

Have you ever heard the saying that revenue is vanity, profit is sanity, and cash is reality? Today’s guest, Robert E. Bendetti, is the CFO at Life Cycle Engineering. He holds a master’s degree in accounting and financial management and an MBA specializing in small business management and entrepreneurship, as well as being a certified public accountant. Throughout the episode, we cover several key concepts that help business owners grow their businesses and adapt to ever changing markets.

 

 

Show Notes

[03:21] Background – Robert shares his background and the company’s operations.

[05:20] Cash Flow Management – Robert emphasizes the importance of cash flow management and gives his perspective as a CFO on appropriate cash management for small enterprises.

[08:48] Cash Conversion Cycle – Robert discusses approaches to optimize the cash conversion cycle, emphasizing the importance of timely invoicing, collection challenges, and the smoothness of the payment process.

[11:50] Tips – Robert shares an approach for reducing turnaround time and illustrates a simple mechanism to increase collection rates.

[20:29] Profitability – Robert points out how to convert cash to profit, describing what balance sheet and income statement items need to be monitored.

[23:25] Paying Yourself vs. Reinvesting – Robert outlines how to decide whether to invest additional funds to boost profitability and future growth or pay yourself.

[31:41] Transition – Robert addresses what individuals approaching retirement or transition should consider 18 months before leaving a firm.

[40:25] Employee Stock Ownership Plan – Robert dives deep into ESOP and related topics.

[51:31] Global CFO Council – As President and Founder of Global CFO Council, Robert mentions what he hopes to accomplish through the organization.

 

Resources

GMB EP #119: Lessons on Fraud Prevention From the Former Iowa Lottery CEO

 

Ever wonder what it takes to scam the state lottery? Terry Rich joins us on the podcast this week to discuss fraud and how to prevent it in small businesses & other organizations. Terry is the former CEO of the Iowa lottery, and helped uncover a multi-million-dollar fraud before it was paid out. 

 

 

Show Notes

[02:35] Terry’s Story – Terry begins the conversation by sharing his backstory.

[09:46] Underlying Reason –Terry dives deep into three key reasons why people commit fraud.

[13:19] Remedies – Terry shares his thoughts on how to identify fraudulent activities and deal with scammers, and ultimately avoid becoming victims.

[17:02] Iowa Lottery Fraud – Terry tells the fascinating story of resolving the largest lottery fraud in the United States.

[38:48] Adjustments – Terry discusses the improvements made after the fraud was discovered and addressed.

[48:25] Entrepreneurial Spirit and Creativity – Terry explains how he preserves entrepreneurial spirit and creativity.

 

Resources

Connect with Terry:

Website: terryspeaks.com/

LinkedIn: linkedin.com/in/terich/

 

Mentioned in the Episode:

Ep #117 – A Top Economist’s Take on Personal Finance With Dr. Laurence Kotlikoff:

The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life: Before 8AM:

Iowa Lottery Fraud:

Value Your Business Like it’s Your Retirement Plan, Because it is.

Building a successful business can take decades. While working to grow, it’s common to use all available assets above the salary you pay yourself to fund future expansion. Where does that leave you on the retirement side of things? For most business owners, the retirement plan is some form of exit and monetization of your investment.

As you get close to a transition, valuing the business is paramount. The value comes first, and then the sale, and only then do many business owners think about how the sale proceeds will fund retirement.

There’s a better way. Start with the amount of money you need to live the retired life you want. That’s your benchmark of the value you want to get for your business. Then work from there to create the value you need.

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GMB Ep #118: DeFi State of Affairs With Matteo Binfarè

 

Decentralized finance (DeFi) is an emerging system of financial products and services built on blockchain technology. It utilizes secure distributed ledgers similar to those used by cryptocurrencies. In today’s episode of Grow Money Business, we have an insightful conversation with Matteo Binfarè, a professor at the University of Missouri. He teaches his students about investments, pensions, endowments, and decentralized finance. Throughout the conversation, Matteo imparts his insight and years of experience in decentralized finance and cryptocurrency.

 

 

Show Notes

[02:33] Decentralized Finance – To kick off the conversation, Matteo defines decentralized finance and discusses its current state.

[07:13] Cryptocurrency – Matteo shares his thoughts on the impact of cryptocurrency.

[10:34] Asset Class – Matteo shares his thoughts on whether cryptocurrency deserves its own asset class.

[13:28] Web 3.0 – Web 3.0, the next avatar of the internet’s world, is a technology capable of understanding and interpreting the concept of data on its own. Matteo explains Web 3.0 is and how it works.

[19:11] Governments and Bitcoin – Matteo discusses a variety of government viewpoints and regulations surrounding bitcoins.

[23:49] Smart Contracts – Matteo defines a smart contract and outlines its potential applications and benefits.

[26:25] Matteo’s Story – Matteo shares his background and journey thus far.

[32:03] Asset Allocation – Matteo expresses his thoughts on whether or not cryptocurrency deserves a place in most people’s portfolios, as well as how much an individual should consider allocating to it.

[43:47] Institutions – Matteo explores how institutions are approaching cryptocurrency and allocating resources.

[47:43] Research and Studies – Matteo discusses his research studies and plans to study cryptocurrencies and DeFi formally.

[24:59] Hazards – Matteo points out some key risks to consider while investing in cryptocurrencies.

 

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