Upgrading Great Plains Dexterity Customization – switching to new technologies:

This article is for intermediate Great Plains Dexterity developer. It describes the directions to phase out Dexterity functionality and replace it with newer technologies.
Microsoft Great Plains and its current programming language Dexterity should still be considered seriously by developers community. However Microsoft Business Solutions announced switching to new technologies, mostly .Net, where all the MBS applications will be arranged into suites (Microsoft Financials, Microsoft Distributions, Microsoft Manufacturing, Microsoft Human Resources) and integrated into so called Microsoft Business Portal. Looking into the future we recommend you to analyze Microsoft Great Plains Dexterity customization for replacement it's portions with Microsoft SQL Server stored procs, Crystal Reports, direct C#/VB.Net web publishing, eConnect
1. Replace Dexterity cursor with SQL Stored Procedure
Dexterity was designed as multiplatform technology (primarily Btrieve, Ctree, SQL Server, potentially Oracle). Dexterity data retrieving mechanism is based on Range start, Range End, Get First and Get Next clauses. It is in fact similar, however a little bit slower to cursors in Transact SQL. Long ranges in Dexterity are good candidates for replacement by SQL stored procedures with update clause.
For example, consider to replace following Dexterity code:
Range clear SOP_HDR_WORK. Clear ‘SOP Type’ of table SOP_HDR_WORK. Clear ‘SOP Number’ of table SOP_HDR_WORK.
Range start table SOP_HDR_WORK. Get first table SOP_HDR_WORK. While errEOF do If ‘Salesperson ID’ of table SOP_HDR_WORK = “ERIC” then Edit table SOP_HDR_WORK. Set ‘Salesperson ID’ of table SOP_HDR_WORK to “BILL”. Save table SOP_HDR_WORK. End if. Get next table SOP_HDR_WORK. End while.
With the following SQL code
Update SOP10100 set SLPRSNID=”BILL” where SLPRSNID=”ERIC”
Bringing new data into a table in Dexterity is based on change/edit table clauses, in SQL they are equivalent (by performance) to inserting one record at the time.
When having long cycle of change/edit table in Dexterity, consider replacement by SQL stored procedure with Insert Into clause.
2. Use Crystal Reports, call them from via VBA in Modified form
The easy way to call Crystal Report from your VBA code from your modified form:
Const RPT = "D:\Clients\TheClient\Invoice Status.rpt"
Public crwApplication As CRPEAuto.Application Public crwReport As CRPEAuto.Report
Private Sub Print_BeforeUserChanged(KeepFocus As Boolean, CancelLogic As Boolean) If SalesTransactionInquiryZoo.Type = "Invoice" Then
If crwApplication Is Nothing Then Set crwApplication = CreateObject("Crystal.CRPE.Application") End If
Set crwReport = crwApplication.OpenReport(RPT) crwReport.ParameterFields(1).SetCurrentValue (DocumentNo)
crwReport.Preview
End If
3. Use Direct .Net Web Publishing from Great Plains Database
The easiest and safest way is to use eConnect - SDK with VB samples, created for eCommerce programmers and web designers to call the functionality in Microsoft Great Plains. If your company can not afford eConnect - create your own set of stored procedures to address Great Plains database and go ahead with Visual Studio.Net to do the web publishing

Have New Technologies Improved Solo Business Travels?

In the last 10 to 20 years, advance in technology has transformed many aspects of business travel; from the way we book our hotel rooms to staying in touch with relatives left at home.
However it seems that it has not changed one aspect of it: the feeling of loneliness faced by a majority of business people while travelling and in particular, while dining and drinking in the evening at hotels.
The latest Barclaycard Business Travel Survey that, whereas 95% of businessmen and women travel solo, 45% of them have felt lonely during their business trips.
Technology has only help to reduce the time spent travelling. The survey tells us that nights way from home have decreased to 4.1 nights per month from 4.4 last year. Technology such as video-conferencing has reduced the need for face-to-face meetings. It has not made it easier staying alone in far away cities.
Women seem to be even more affected by the negative aspects of solo travel. Up to 61% of women have said feeling uncomfortable drinking at bars on their own and 34% didn’t like dining on their own.
So are business travellers doomed to feel lonely, depressed or uncomfortable when away from home? Well, there are some tips one can follow to try improve this situation:
Try to talk to people who are waiting to be seated at the restaurant. If they are alone, they will probably be very happy to share their table with you, and enjoy a much more relaxed evening.
Try to arrange to meet with somebody you know in town, or somebody you have met the same day at work or elsewhere.
Ask for a table near a people-watching window. If you eat alone, at least you can look at what is going on outside.
Go to the restaurant early. Very often, restaurants have a more romantic setting at later times, something you want to avoid if you are alone!
Finally use networking clubs to contact other people who live locally. You may then meet with them (important: always do so in a public place)
New technologies have improved the way we can plan and organise business travels. However, when it comes to it, only old-fashioned tips will make your solo journeys a better experience

The Old MBA Urgently Claim For the New Business Technologies

A report from the Association to Advance Collegiate Schools of Business, the primary accrediting body in North America lambasted its members for maintaining a 60-years old curriculum that is out of touch with modern business practices.
CRM: Managing sales data and processes can be simplified using today´s business technologies software solutions. These products automate nearly all of the tasks that salespeople and their support staffs once performed manually. As a category, these products are generally referred to as Customer Relationship Management CRM solutions.
CIO: Part of the Chief Information Officer CIO responsibility is on the Information Technology IT side, but it also was to change an organization in all the business fields.
PM: Project management focuses on the management of specific, discreet projects. A project is “any undertaking with a defined starting point and defined objectives by which completion is identified". The project manager has to have decision-making authority to keep the objectives, schedule, and resources in balance. In reality, this may be difficult to achieve, but a project manager should at least have a written statement defining his authority and which manager they should go to for decisions beyond the scope of this authority.
CI: To obtain reliable answers, you need the ability to create customer intelligence from the mountains of disconnected customer data you collect on a daily basis.
And the ERP, SCM, BI, VOIP, BPM, Workflow and tenths of others that the old MBA executives think as ITs responsabilities.

5 New Communication Technologies To Supplement Email

Every business relies on effective communication with its customers. Communication doesn't just convey information, it inspires trust, builds credibility, stimulates involvement and generates loyalty. But in today's global, hi-tech, rapidly changing business environment, how do you ensure you're communicating effectively? THE BENCHMARK - FACE-TO-FACE There's no doubt that face-to-face communication is the most effective method for most people. Why? Because of its two-way nature. It's about dialogue. Listeners are not passive participants. When someone talks to us, we send a continuous stream of responses back to them. Some are verbal, but many/most are not. These responses have the power to actually change the message being disseminated by the talker. What's more, they have the power to change how other listeners' interpret that message. (Similarly, other listeners have the power to change your interpretation.) Unfortunately, however, the global nature of business makes it impossible to conduct face-to-face meetings for every communication. So what are the alternatives? Specifically, what are the alternatives offered by technology? EMAIL - THE STARTING POINT The benefits of email are numerous and well known, and include (but are not limited to): •Email is an excellent mechanism for distributing information to people. It is fast and cost effective. •It is incredibly convenient - you can readily communicate across time zones. •It provides a useful electronic paper trail. •It can save a great deal of time because most of the fluff surrounding a phone call (the social niceties) are seen as unnecessary in email. •It allows recipients to read and respond to messages in their own time. •The wording, grammar and punctuation in an email can be considered and edited before finally sending. But email does have its limitations: •Its lack of social niceties is a double-edged sword. Without the benefit of other communication cues, it's sometimes hard to interpret the tone of an email, and this can make some messages ambiguous. •It isn't ideal for critical communication. For many people, emails are not 'real-time' communication. We all have that unaddressed email sitting at the bottom of the list. Because emails are so easy to ignore, they're also easy to forget. •Ironically, email's dissemination effectiveness has been one of the major impediments to its communication effectiveness. It's so easy to send emails - and they're so anonymous - that our inboxes are now flooded with SPAM. Consequently, emails are viewed with some suspicion. It's sometimes hard to identify legitimate emails, but it's very easy to just hit Delete. •Because email senders are typically geographically (and often culturally) distant from their recipients, they have no immediate visual and aural cues to help them tailor the message as they type. But there's no need to 'throw out the baby with the bathwater'. Email is an excellent solution to many communication needs. And for those it is ill-equipped to handle, there are newer, more appropriate technologies that are built for the job... WEB 2.0 TECHNOLOGIES - THE PERFECT SUPPLEMENT Web 2.0, a term coined by O'Reilly Media (an American media company) in 2004 refers, to a second-generation of internet-based services that let people collaborate and share information online in new ways. Web 2.0 technologies are well defined in www.wikipaedia.org, which suggests that these sites allow the users of the sites (members) to create and share content, including exploring and discussing ideas, opinions, initiatives and issues. Web 2.0 is all about communication. It is the evolution of the internet from an endless library of static pages to an endless world of conversations. These pages can be restricted to particular individuals (eg the executive), or open to all members. The only difference is that the interaction takes place in cyberspace, and those taking part can be sitting behind a keyboard just about anywhere on the planet. Importantly, a reader's understanding of the message in a Web 2.0 communication is determined, not just by the publisher, but also by the responses (e.g. comments) of the audience. What's more, the publisher's actual message tends to be far more fluid as it, too, is informed by the responses of the audience. In other words, Web 2.0 services are far more like face-to-face conversations than any communication technology before them. So what are these emerging technologies that we should be keeping an eye on? The two most notable are 'Wikis' and 'Blogs'. The following definitions are from http://www.wikipedia.org, an online encyclopaedia developed as a wiki. •Wikis - A wiki is a type of website that allows users to easily add, remove or otherwise edit and change content. This ease of interaction and operation makes a wiki an effective tool for collaborative authoring. Examples include Wikipedia (wikipedia.com) and wikiwikiweb (http://www.wikiwikiweb.com). •Blogs - A weblog, which is usually shortened to blog, is a type of online diary or journal which allows one to voice their opinion on something. Blogs often provide commentary or news and information on a particular subject. A typical blog combines text, images, and links to other blogs, web pages, and other media. Blogs are usually text based, but they can include photographs, videos or audio (podcasting). Blogs can be presented in a way that creates a conversation between users. As an example, see the Sydney Morning Herald travel blog (http://blogs.smh.com.au/lostintransit/). THE USES OF WEB 2.0 As with face-to-face social gatherings and forums, online get togethers attract a broad spectrum of participants eager to engage, entertain, befriend, advise and lecture. It was reported in The Australian (Tuesday 8 August 2006) that the social computing element of Web 2.0 has recently been embraced by the US Government. The US State Department has started including blogs and other Web 2.0 concepts to deliver public information to citizens. It is also using wiki style services to improve information by permitting small expert communities to improve advisory services. The same article advised that Australia’s leading information advisory body, the Australian Government Information Management Office, had begun experimenting with the use of blogs, wikis and other Web 2.0 technologies. As new online social networks mushroom, they are becoming increasingly focused on niches, ideally suited to membership based organizations and the NFP sector. Examples of general public social networks include My Space (http://www.myspace.com), Classmates (http://www.classmates.com) and Bikely (bikely.com). OTHER USEFUL TECHNOLOGIES •SMS - Short Message Service (SMS) is a service available on most digital mobile phones (and other mobile devices, e.g. a Pocket PC, or occasionally even desktop computers) that permits the sending of short messages between mobile phones, other handheld devices and even landline telephones. •Podcast - Podcasting is the method of distributing multimedia files, such as audio or video programs, over the internet using syndication feeds, for playback on mobile devices and personal computers. •Webinars - Web conferencing is used to hold group meetings or live presentations over the internet. In the early years of the internet, the terms "web conferencing" and "computer conferencing" were often used to refer to group discussions conducted within a message board (via posted text messages), but the term has evolved to refer specifically to "live" or "synchronous" meetings, while the posted message variety of discussion is called a "forum", "message board", or "bulletin board". A webinar is a seminar which is conducted over the World Wide Web. It is a type of web conferencing. In contrast to a Webcast, which is transmission of information in one direction only, a webinar is designed to be interactive between the presenter and audience. A webinar is 'live' in the sense that information is conveyed according to an agenda, with a starting and ending time. In most cases, the presenter may speak over a standard telephone line, pointing out information being presented on screen, and the audience can respond over their own telephones, preferably a speakerphone. Whilst not necessarily considered Web 2.0, Webinars can also be a useful mechanism for information distribution and discussion amongst membership based organizations and SMS can provide important or urgent confirmations. CONCLUSION Email is - and will continue to be - an incredibly useful and convenient communication tool. In fact, with the emergence of new technologies that are either more direct, more immediate, or more like face-to-face communication, email is improved. As businesses supplement their email usage with other communication technologies, email will be increasingly reserved for those communications to which it is ideally suited.

How To Recognize And Avoid Risky Investments

The patterns of any particular investment will detail the relative risks and rewards undertaken with each investment. Risks can be defined as "the chance or possibility of injury, damage or loss." Risk focuses on the future and our ability to forecast that future. In turn, the ability to predict the future is largely dependent on what you've learned from the past. The best you can do is to study the record and draw on experience - your own and that of others.
On the surface, the relationship between risk and return seems straight forward. In general, you will find that risk and return move in the same direction. In other words, if you accept a higher risk, it is possible to achieve higher returns. High-risk investments invariably promise a high return.
But equally important, where it is possible to win big, you can lose big. And the odds are always with the "house" (the provider of the risk-return). If all it took to create instant wealth was assuming high risks, then you could assure yourself of millionaire status simply by attending the race track every day and betting all your money on the long shots!
Avoiding Risky Investments
No other advice on investing is complete without a few important warnings. The investment industry has its share of unscrupulous people who, at best, will mismanage your investment, and at worst, steal you blind.
They'll come at you with Ponzi schemes, pyramid deals, real estate that's never been any good and never will, and telephone offers or email offers of stock or funds or oil leases or gems or precious metals, etc., that offer large and easy returns with no risk.
These salespeople play on a universal desire to "get something for nothing" and to "get rich quick." Most of us are not immune to a good pitch. However, by just taking the simple precaution of thoroughly investigating an investment offer yourself or through a trusted accountant, lawyer, financial adviser, etc., you'll greatly minimize the risk. The best caveat to bear in mind is: "if it sounds too good to be true, it probably is."
Watch out for the Ponzi and Pyramid.
In their eagerness to make a lot of money quickly, many people and millions of dollars every year are sucked into Ponzi schemes and pyramid deals. In the former, expect to lose your money, and in the latter there's a very high probability that you're wasting time and money.
In the 1920s Charles Ponzi invented a simple, alluring investment fraud that's still practiced today. In its simplest form, a swift-talking promoter will ask you to give them, say $5,000 to invest in a spectacular, usually secret, investment to which the promoter has access. They promise a spectacular return of, say 20 percent in three months.
At the end of the three months, they offer to deliver $6,000 (your investment plus your return) but suggests that you let it all "ride" for an even better return in another three months to six months. What you don't know is that there is no investment. The promoter is simply gathering as much as they can from as many suckers as they can convince. Then they have to pay Peter, it comes from Paul. Eventually, the promoter disappears with the bulk of the "investment" money.
A Pyramid scheme is an illegal type of multilevel sales- except usually there is no product sold. You are asked to pay ($500, $1,000, $10,000 etc.) to become part of the pyramid. The amount of your payment to the promoter determines your position level in the pyramid and "allows" you to promote the pyramid to others. The more people you bring into the pyramid, the higher you rise and the closer you get to the big payoff.
Financial Risk
For most investors, financial risk is the most immediate one. It centers on the simple question, "If I put my money into this investment, will I at least get my money back?"
Your best protection against financial risk is to explore any investment to the point where you understand the factors that risk and/or secure your principle. When you buy a common stock, for example, the financial risk is tied to the credit and operating histories of the company issuing the stock.
So you analyze the firm's financial capacity (ability to generate income). A firm that can't pay its debts or has a low financial capacity and a comparatively high financial risk. A company with earnings high enough to pay fixed costs many times over is thought to pose a lower financial risk.
Generally, such vehicles as certificates of deposit, commercial short-term paper, federal savings bonds and Treasury securities are considered of low financial risk. Whenever you evaluate the risk inherent in a given investment, ask yourself:
1. What kind of risk is involved?
2. What is the extent of this risk?
3. Is the potential return worth this risk?
By first learning a set of criteria with which you can evaluate an investment, and then considering those objectives in light of your personal factors, you've begun acting like an inve

4 tips to spot fake high yield investments

High yield investments are things that produce a yield of more than 2 percent per month. You can find some good mutual funds that produce 30% or higher in any given year, and they would fit the description of a high yield investment.
Unfortunately, mutual funds will never produce these stellar results consistently. Their good performance will cause a flood of money to come knocking on their door, and with a lot more money, it becomes harder to produce big returns.
Online, there are thousands of places that offer high yield investments. As you might expect, the vast majority are scams - simple ponzis set up to look like elaborate operations.
Once you have enough experience with high yield investments, you can usually spot the scams with relative ease, but even the best people still get caught in elaborate scams.
Here are the things professional investors look for when looking into high yield investments:
Fixed returns. If a program guarantees a time-based return (2% per day, for instance), then it is almost certainly a scam. No one has a crystal ball, and in the high yield community, uncertainty is the major force that prevails. So any one skilled at foreign exchange trading or options trading would never predict they would make 2% each and every day.
No contact information. The high yield investments that are real will always let you know who is behind it, and what they do. In the normal investment world, there is a prospectus for each offering, which describes what the venture is about, and how they make money. A real high yield investment would always give you the name and resumé for the principal people behind the operation. If you don't get a name, phone number and address, it is a scam.
No registration. All high yield investments will create profit, and be subject to taxation by some government somewhere in the world. If the persons offering a high yield investment have not bothered to register the venture, then it is most certainly a scam.
No Contract. The high yield investments that promise great things should put things into writing, and have you agree to the terms before they begin to earn you an income. If you find a high yield investment that does not require you to sign a contract, you can be sure they will disappear eventually - along with your money.
The SEC publishes a short description of what to look for, and it is well worth a minute to review it.
You should be aware that investor fraud is at an all-time high, and if you ever find yourself a victim of financial fraud, there is very little chance you will ever see your money again. Governments around the world are overwhelmed by the scams and victim complaints that pour in daily, so the best you can do is file a report, and be happy knowing you reported it.

Real Estate Investments and How to Make Them

Mistake # 1. Spending thousands of dollars buying books, tapes and attending seminars and then putting all of that information on a bookshelf and never looking at (or using) it. Comment: I’m continually amazed at the number of “would be” investors who have spent a bundle of money attending seminars, getting an education and then never using it to start their investment program. Not only is it a waste of thousand of dollars but it could be the biggest financial mistake you can make. Mistake # 2. Failure to learn the basics of real estate investing. Comment: The other extreme to Number 1 above, are potential investors who realize real estate is the best way to accumulate wealth and venture into the purchase of properties without knowing the basics of real estate investing. Those investors are almost certain to get into financial trouble. Mistake # 3. Fear of making a huge financial mistake Comment: We all fear making mistakes, especially a large financial one. If you follow the advice in Number 2 above, you won’t have to worry about making a financial mistake. Mistake # 4. Not looking at enough properties Comment: Don’t fall in love with the first property you look at. Too many investors buy properties because they “look nice” or they are just to lazy to see what else is currently on the market that may be better. Part of sound real estate investing is in giving yourself a choice so you can select the best one, financially. Mistake # 5. “A better deal may be just around the corner” syndrome Comment: This is the opposite mistake of Number 4. This investor never starts his or her real estate investment program because they always hope a better deal may be out there somewhere if they just wait...and wait...and wait. Mistake # 6. Thinking that real estate investing is strictly a complicated game that only the wealthy can play. Comment: First of all real estate is NOT complicated if you learn how to do it first. Did you know that even professional investors use a simple nine step process to analyze the financial feasibility of an investment property? Here's a brief idea of the nine simple steps they use in analyzing any type or size investment property. A Basic Financial Property Analysis 1. Scheduled Gross Income (Income if 100% leased) = $ 26,000 2. Less: Allowance for vacancies (5% of Gross Income) -1,300 3. Operating Income before expense & Mtg. Pmts. $ 24,700 4. Less Operating Expenses (Taxes, insurance, utilities, repairs and maintenance etc.) 40% - 9,846 5. Equals: Operating Income (Income before Mtg. Pmts.) $ 14,854 6. Minus: Mortgage Payments: -12,863 7. Equals Cash Flow 1,991 = 6% 8. Plus: Mortgage Principle Payment +1,697 9. Total Return: $ 3,688 = 10% There's a lot more to it than that, but you just read the basic nine step procedure most professional investors use when analyzing any income producing investment property. Mistake # 7. Falling in love with a property Comment: Once you get your feet wet and become a real estate investor, you’ll wonder why you waited so long to begin. Now you’ll face another problem. Many investors fall in love with their property. They have seen how well it is doing, cash flow has been going up each year, and they have fallen in love with their tenants (not literally). Two big mistakes are made here. First, never fool yourself into thinking your property is doing too well to sell or trade up because your cash flow is considerably higher than when you purchased the property. The second part of mistake number 7 is getting so friendly with your tenants that you fail to maintain rental standards based on what the market will bear. This greatly hinders your growth potential. . Mistake # 8. Failure to plan your financial goals Comment: Before you purchase that first property, which, of course, you financially analyzed, determine what you expect from your investments…your financial goals. It's known as "The 'time vs. money’" concept. The more you have of one the less you need of the other in order to reach your financial goals. Mistake # 9. Trying to purchase properties that the seller is not motivated to sell Comment: I’ve seen potential buyers continually try to purchase investment properties that are not really on the market. This includes property owners with the attitude that “Sure, it’s for sale… for a price”. Unfortunately the ‘for a price’ part usually means it will make no financial sense for a buyer. Mistake # 10. Believing you can get rich quick overnight with no money invested of your own. Comment:. Getting rich overnight will not happen . . . (regardless of what some of the so called "experts" tell you). It takes some time, effort and knowledge of real estate investing to do it with minimum financial risk. The important thing to remember is that YOU can do it, too. You can join the millions of investors who create sizable incomes by investing in real estate. Mistake # 11. No money down investing usually isn’t. Comment: Somewhere, somehow there will be some money required to put a transaction together and make it profitable. It may be closing costs, repairs or upgrading, whatever. But somewhere, some money will be needed. There are ways around this problem without getting into a high risk situation. You may be able to finance every dollar you need, but it can come back to haunt you in the form of mortgage payments you cannot afford to make. Again, learn what you are doing first. Mistake # 12. Not financially analyzing a potential investment property. Comment: This is the most serious mistake an investor, or potential investor, can make. I've seen a few pros in the business rely on a "worthless and inaccurate" rule of thumb to make a huge financial decision to purchase, with total disregard for how well the property will perform. Oh, yes, there is one more major mistake many investor make: Mistake # 13. Thinking it's important to pay off your mortgage as soon as you can because mortgages are a 'necessary evil'. Comment: First of all as a real estate investor, mortgages are good and not a necessary evil. You must learn why this is true. You must learn how, in the right situation, a second or third mortgage can be a good thing. Second: mortgages are one of the keys to creating wealth in real estate. You must learn how to use financing as one of the keys to creating your own financial estate, without concern for it being "risky".

529 Plan Rating Helps Make Better Investments

The 529 plans, though already very popular, are too new to make any definite practical revelations yet. Some financial agencies are pursuing their progress and trying to come up with some 529 plan ratings, made on a state-wise basis, but we must take them with a pinch of salt. Anyways, the 529 plan rating providers have come up with ideas on how better savings can be made on the plans. The 529 plan is a tax-advantaged savings or prepaid scheme for college education. Parents, or any other family adult, can make an account with these plans for children and then pass on the amounts to pay for the child's college education. Already the 529 plan ratings show the significant benefits of these schemes over traditional plans like Coverdell. With a 529 plan anyone can make the investment, the account can be closed or the amount can be withdrawn with minimum penalty, the account is transferable from one beneficiary to another, and there is a good deal of tax savings. These are the prime benefits that are making the 529 plans popular. Here are the tips on savings that are provided by people who make the 529 plan ratings:- Plan for gift exemption - A 529 plan, which is to the tune of $60,000 a year, is equivalent to five equal annual gifts made to the beneficiary. That means, if the accountholder makes no other gifts to the beneficiary in the span of these five years, then the amount invested in the 529 plan will remain free from gift tax. The best benefit here is that the total gift exemption of the accountholder towards the child will not diminish. Plan for saving withdrawal penalties - Withdrawal penalties come into the picture in many situations with 529 plans. One of this situation is when the accountholder withdraws the funds from the investment plan for a reason other than paying for the tuition fees of the beneficiary. This can happen if the beneficiary does not attend college, or if he or she gets a scholarship that pays for the tuition fees. Money withdrawn for reasons other than paying for tuition fees is called as unqualified withdrawal. Such unqualified withdrawals will attract income tax and a 10% penalty on the amount withdrawn. However, with a 529 plan, these penalties can be avoided by the simple act of transferring the benefit from one beneficiary to another. So, if the original beneficiary does not want the investment for paying tuition fees, you can pass it on to another relative, and keep enjoying all the tax benefits. Plan for saving tax - Accountholders of 529 state plans can direct the benefits to their own accounts, to the accounts of the beneficiaries, or even directly to some educational institution. There is good choice here. Hence, the accountholder can decide which of these options will have to pay the least tax. If the beneficiary's marginal tax rate is lower, the benefits can be passed on to the account of the beneficiary.

The 8 Biggest Mistakes When Designing Portfolios - and How To Avoid Them

Are you as good an investor as you think? Do you consider yourself a well-informed investor able to anticipate and avoid nearly all pitfalls associated with investing? Chances are, you are making one of the common errors that could cost you hundreds or even thousands of dollars, or worse yet, your financial independence, control and security.
“I see people making the same costly mistakes over and over,” says Scott Frush, CERTIFIED FINANCIAL PLANNER and author of Optimal Investing: How To Protect and Grow Your Wealth With Asset Allocation (Marshall Rand Publishing; available by calling 1-800-247-6553). ”But small leaks can sink great ships.”
Scott Frush is president of Frush Financial Group and editor of the Journal of Asset Allocation. Discover some of his investment secrets in the free report, 15 Golden Rules for Building Optimal Portfolios, available at www.AssetAllocationExpert.com.
Here Scott Frush shares eight common, yet costly, mistakes investors make when designing their investment portfolios and reveals how to avoid them.
1. OMITTING APPROPRIATE ASSET CLASSES AND ASSET SUBCLASSES. Numerous landmark studies have concluded that how you allocate your portfolio, rather than which investments you select or when you buy or sell them, determines the majority of your investment performance over time. As a result, make every effort to allocate your portfolio to all appropriate asset classes and asset subclasses.
2. SELECTING INAPPROPRIATE ASSET CLASS WEIGHTINGS. By selecting inappropriate asset class weightings a portfolio may earn a lower return and experience greater risk than expected. Consequently, be careful not to over or under weight any asset class, thus enhancing your portfolio’s risk and return trade-off profile.
3. UNDERESTIMATING THE IMPACT OF INFLATION. Inflation can erode the real value of your portfolio over time, thus placing your future financial security at risk. As a general rule, the longer your investment time horizon, the more you should allocate to equity investments. For shorter investment time horizons, emphasize fixed-income and cash and equivalent investments.
4. NEGLECTING THE EFFECTS OF PORTFOLIO MANAGEMENT EXPENSES. Over time, the compounding effect of portfolio management expenses can be quite large, thus depriving you of better returns. For this reason, you should focus on minimizing portfolio management expenses, specifically trading costs, advisory fees and taxes.
5. MAKING INACCURATE RETURN FORECASTS. Forecasting is the single most difficult task with designing portfolios. Although not a perfect solution, using historical returns rather than making forecasts is generally considered more appropriate for individual investors.
6. OVERESTIMATING THE LEVEL OF PORTFOLIO DIVERSIFICATION. Diversification is one of the ten cornerstone principles of asset allocation and is key to reducing risk, namely company-specific risk. To properly diversify, you should hold sufficient quantities of not-too-similar securities with comparable risk and return trade-off profiles. Consider broad-based index funds for a quick and easy solution.
7. MISJUDGING THE IMPACT TAXES HAVE ON NET RETURN. Taxes can have a severe negative impact on your net return. As a result, balance tax and investment considerations, but remember that suitability and appropriateness of an investment take precedence over tax consequences. Never hold an inappropriate investment.
8. CONFUSING DIVERSIFICATION WITH ASSET ALLOCATION. Many investors mistakenly believe that a properly diversified portfolio is a properly allocated portfolio. This is the leading misconception of asset allocation. Properly allocate your portfolio among the different asset classes first and then diversify the investments within each asset class.
By avoiding these biggest mistakes you will design an optimal portfolio that provides the best opportunity to achieve and protect your financial independence, control and security