How Long Should You Keep Receipts and Bills

Receipts and bills are commonly issued by service and utility providers as an acknowledgement towards payment of dues and charges by you. Some recurring bills and receipts go on piling up in heaps every month. Many people are actually confused with how long they need to keep these bills and receipts and so, they go on retaining them for years together. Suddenly they realize that, the receipt pile is occupying a major part of their drawer or filing cabinet. This space could have otherwise been used for storing other documents. Well, my article will help you deal with this very problem. Read on...

Valid Duration of Receipts and Bills

Gas and Electricity Bills
These documents make for a good proof of payment as well as proof of address. If there are any kinds of disputes pertaining to these bills, they ideally get solved in less than a year's time. However, I suggest that these bills should be retained by you for not more than 2 years at a time.

Credit Card Bills
Credit card payment bills and receipts can usually be disposed off within a period of 50 days to 3 years time. These bills are important if you can expect a rebate on the bills from your organization in the next few years. Make sure to keep a copy of the payment check along with the receipt.

Bills for Purchases
There are numerous number of purchases that you make throughout the year. E.g. jewelry, home appliances, cars, etc. As far as vehicles are concerned, these receipts clearly state the purchase value and therefore can be of use at the time of depreciating the asset. For items like jewelry, such bills are crucially important in case your jewelry gets stolen. They are essential for submitting jewelry valuation report to insurance companies. I suggest that you retain these bills along with the guarantee or warranty cards for as long as you hold these assets in your possession.

Insurance Premium Payment Receipts
These receipts are one of the most crucial documents of your investment portfolio. Ideally, you need to keep these receipts and copies of payment checks permanently. On rare occasions, when your policy lapses or expires, retain the papers for another couple of years just in case you can revive the policy.

Rent Receipts and Home Purchase Documents
All payment receipts received by you when purchasing a new house should be retained permanently. These documents act as proof of payment and ownership of your house. If however, you happen to have a rented apartment, you need to maintain the rent receipts along with your rental agreement for maximum of 6 years. Maintain your purchase or sale agreements and apartment rental agreements permanently.

IRA Receipts
IRA stands for Individual Retirement Accounts. Any receipt pertaining to these contributions should be maintained by you permanently.

Tax Receipts
The Internal Revenue Services (IRS) usually hold audits for short tax payments within a span of three years from the actual payment year. Similarly, the IRS authorities might check your tax returns filing within a span of five to six years on suspected underreporting of your annual income. In such a case, it is ideal to maintain your tax payment receipts along with a copy of your tax returns for a period of at least 6 years.

Home Loan Receipts
These receipts are ideally to be maintained permanently along with your bank loan confirmation document and house purchase agreement.

Simplifying the Maintenance Process

Most of you realize the importance of these receipts and bills and yet view their maintenance as time-consuming and boring activity. Here are few simple ways to keep your filing cabinet in order.

• Yes! Reserving a cabinet or a specific drawer for filing purpose is essential. It helps you to keep a track of your important files all the time. In case of any emergencies like a fire, you might run to this cabinet and just pick up all the files and folders in one shot and carry them away to a safe place.
• If you have never done this maintenance ever before, then segregate your pile of receipts and bills as per their nature. E.g. all credit card receipts should be stacked together and same goes for other receipts too. Now segregate these receipts chronologically. Pin up receipts for a particular year along with copies of every payment check.
• Buy some piano-styled folders with multiple compartments that go for different types of bills. Now place the segregated bills in separate sections as per their nature and tag the compartments appropriately. E.g. in a folder earmarked for year 2010, use one compartment just for credit card bills and the compartment next to it for utility bills.
• Make separate files for major assets like houses or vehicles. Place all documents pertaining to their purchases and consequent payment like rent receipts in their chronological order.
• Try to retain soft copies of certain important documents like tax return receipts and payment checks before you destroy them.

The above suggestions will not only help you put your documents in order, but will also help you recover them when they are wanted urgently. You might have to take time off from your schedule once in a while to place fresh receipts in these files whenever you get them. Also, make sure to check and clear your files annually for those documents which are not required to be maintained anymore. Sounds easy isn't it?

Corporate Team Building Events

United we stand and divided we fall, is a thumb rule which applies in all walks of life. But as rules are defied more than they are followed, all of us need a constant reminder about working as a team. This holds especially true in corporate houses, where group effort is more important than individual achievements. Corporate team building events are one way of inculcating a sense of team spirit, leadership and the importance of being a team player amongst your employees. As people come together for the purpose of winning in a fun way, their perspective towards each other change, setting in a renewed verve of teamwork.

Corporate Team Building Activities

Office Olympics
The grand sporting event of Olympics, brings together sportsmen from all around the world to compete against each other in the right spirit. Copy the model and basic concept to host Office Olympics. High on energy games, will require the participants to come up with winning strategies, plans and showcase their leadership qualities in a way that is never seen before. You can host games such as swimming competitions, double badminton matches, relay races, football matches and other typical team building games. Towards the end of the games, the participants would have learned the art of bonding, interaction with each player (despite biases), participation and some serious fun!

Amazing Race
Take these events outside the office for more fun and frolic. This team building game is a prototype of the actual Amazing Race. The whole idea is to have a treasure hunt all over the city. The clues have to be about the city's history and current affairs. Take away their cell phones, money, cars and all the other frills. Hand them a small budget so that they can use the local transport facilities, reach to their final destination. This is an excellent game to hone communication, leadership, negotiation, strategy skills and the art of managing all of this within strict time frame.

Cluedo
If you are looking for indoor team building games for corporates, then Cluedo fits the bill. Divide the players in five team, with ten members each. Hand a police file stating the facts and inferences about the murder (fake one of course!). The file will also have to state instructions about solving the murder mystery such as time limit, what to do and what not to. The instruction file, will also hand them the first clue to begin solving the murder mystery. Each clue will lead them to another clue, which will eventually help them solve the mystery. The solution to the problem will have to be presented with a logical explanation. This game will help your employees under the basics of project management, problem solving, importance of secrecy within the teams, communication and logic.

Oscar Goes To
A movie making activity is a great way of motivating your employees to be a part of a creative challenge. Divide all the participants in teams and ask give them a topic to film. Pick slightly abstract topics that affect your work environment and ask each team to make a five minute film on the subject. A film that brings out the point in absolute clarity, will take home the Oscar!

Team events make participants come out of their shells, drop their egos, and play games that are pure fun. These are crucial ingredients of team building that go a long way in building a positive work environment, that learns to take criticism, constructively. Team building games, allow employees to learn new things about their colleagues, which bridges gaps and makes a freeway for communication, making them stand by each other in times of crisis and support one another when needed.

How to Plan Financially for the Future

Well, living in today is alright but we also have to think about tomorrow and hence, it is important to plan for the future. Since there is apparently only one thing that seems to control the world, that is money, one has to plan his or her finances wisely to have a secure future after retirement. Though, everything that one needs to 'live' cannot be bought with money, certain things that one needs to 'survive' have to be bought in exchange for money. So, one has to carry out meticulous financial planning for the future. If you are also of the same opinion, then you must read this article further.

Financial Planning for the Future

Well, there are many things one needs to consider while planning for the future in terms of finances. Given below are some of the factors you need to look into:

Current Economic Status: You must analyze your current economic status including your annual income. It will give you a direction towards financial planning for the future.

Expenses: You must also consider the expenses you make on a yearly basis. It is suggested to make a list of your 'needs' and 'wants' and determine how you decide your priorities and make expenditures accordingly.

Asset Analysis: Yes, this is one of the important aspects of financial planning. You must know and ascertain the number, or quality, of your assets before you start financial planning.

Liabilities: Liabilities are as good as expenses. So, you must pay attention regarding how you would deal with liabilities, and how you would manage and sustain them.

These were some of the crucial factors one has to consider when it comes to financial planning for the future. Now let's take a look at some of the ways and ideas that can help you plan well for the future.

Financial Planning Ideas

Given below are some tips cum ideas that would answer how to plan financially for the future, take a look:

• Saving is one of the most important steps to ensure a prosperous future, especially when you carry out financial planning for the future. The early you start saving the more time you give to your money to grow. It is never too late, so start saving as early as possible.
• Once the significant savings are there in your account, there are many things you can do to invest these savings wisely. You can either buy gold, or invest money in assets that guarantee continuous income in the future as well. You can also think of investing money in stocks and bonds too, for long term benefits.
• Learning to plan a budget for daily day-to-day expenses is a key to financial planning for the future. You must try to balance between the income and expenses every month so that you save a certain amount.
• Along with a budget, one has to plan one's lifestyle as it can have a major impact on your financial planning. You must learn to alter your lifestyle according to a stipulated amount every month and save the rest of the extra money for unexpected financial expenses in the future.
• Insuring important assets is also an important aspect of financial planning. Health insurance and car insurance are some of the must have insurances for greater security in the future.
• Another interesting way of investing in future is working after retirement. Yes, you can think of starting your own small business after retirement that guarantees income even after retirement. It can help you earn not only money but it would also help you kill the boredom and time, which many retirees are faced with.

These were some of the tips and ideas that can help you plan your finances well for the future. Go ahead and implement the aforementioned ideas and tips, and have a financially secure future.

Skimming Fraud

Credit cards, ATMs indeed revolutionized the way transactions were carried out. They not only provide you with a convenient gateway to pay your bills or make purchases, but also significantly cut down your transaction time. You no longer have to battle long queues just to withdraw money from a bank, nor do you need to deal with harried employees at bill payment counters. However, all this hi-fi technology has also offered newer avenues for unscrupulous people to conduct nefarious activities. Skimming fraud is one such white collar crime which is often in news for its sophisticated mode of crime.

What is Skimming Fraud

Skimming fraud is any fraud in which the card information is illegitimately obtained and used without the knowledge of the card holder. It can be of various forms depending upon the nature and extent of the crime. Equity skimming fraud which involves siphoning equity from the homeowner by the lender or investor at the cost of a small down payment is common in real estate industry. However, credit card skimming and ATM skimming are amongst the most common types of skimming frauds. More often than not, these crimes involve sophisticated skimming devices which read protected information from your card and transfer it to the skimmers. However, sometime credit card skimming can be accomplished with a mere pen and paper. How? Let us see.

When you hand over your credit card to a waiter at a restaurant, do you ever think that he could misuse it? Probably not. However, the misuse of your credit card at the hands of a waiter is very much possible. In fact, it is one of the most popular modus operandi of skimmers. The waiter (or any other person for that matter) surreptitiously swipes your card into a skimming device which records all the information of your card. Alternatively, he may note down the details of your card with a pen and paper. This information is then used to make a counterfeit card by the skimmers, who can then use it in number of ways. Credit card frauds are more prevalent at stand-alone point-of-sales, kiosks, gas stations and similar places which offer little or no surveillance.

In ATM skimming, mostly hi-tech devices are used for the purpose of skimming. Oftentimes, a fake keypad is installed over the real one, which records your keystrokes when you type your PIN. It may also include a compact gadget on the card slit which reads the information on your card and then transmits it to a skimmer. This information is used to make a duplicate of your card. Sometimes, a pinhole camera may be installed at innocuous places on the ATM. This camera overlooks the keypad and screen to pick up vital information about your card.

How to Protect Yourself from Skimming Frauds

Skimming frauds are very difficult to detect immediately. This is because most users are unaware about the misuse of their card, since the card never leaves their possession (except for unsuspected brief moments at restaurants, point-of-sale etc.). To avoid this, keep a close watch on all the transactions where manual handling of your card takes place. Similarly, avoid transactions at unguarded kiosks, gas stations, etc. In case of ATM transactions, choose ATMs located outside banks, since they are likely to have more security and surveillance. Check for any unidentifiable objects, devices on the ATM. If you suspect anything, inform the bank authorities and select a different ATM for your transaction. In case you fall prey to any such crime, make sure you educate yourself about credit card fraud penalties which may provide you some relief.

Skimming fraud can be brought into light sooner if you frequently monitor your accounts. This will enable the law enforcers to nab the culprits at the earliest.

What Credit Score is Good?

Having knowledge of the good credit score rating is essential for all employed and self-employed people. The good credit score ranges are fixed and one needs to make maximum efforts to bring one's credit score in that range to avail the maximum benefits. Before we know what is considered a good credit score, let us know about the importance of having a good credit score in the next section.

Importance of a Good Credit Score

Knowing what is a good credit score rating is essential for all people who wish to seek loans from banks or financial institutions at the best possible interest rates. The credit score of an individual is prepared by taking into consideration his past loan repayment history. Banks consider loaning money to those people who have a bad credit score as unsafe and hence taking concentrated efforts in this regard is essential for us. By having an excellent credit score you can get a good and flexible debt repayment program. So, paying your credit card bills on time, avoiding acceptance of debts on multiple cards and maintaining high level of financial discipline is what you should focus on. Right kind of financial planning and management is extremely essential along with realization of one's loan repayment capacity. Improper financial planning can lead to bankruptcy and this has a big negative impact on the total credit score of a person. Recovering the credit score after bankruptcy is very difficult and hence one needs to be responsible of one's actions to avoid unnecessary trouble. The content on credit score scale and what is a good credit score in the next section will help you know things better.

What is a Good Credit Score?

The credit score rating scale can help you know how much credit score you should have in order to easily qualify for a loan. Those who wish to know what credit score is good should understand that any credit score between 500 and 579 would make it extremely difficult for you to seek credit. On the other hand, a score between 580 and 619 is also a poor credit score, but might just get you a loan - that too at a high interest rate. A score between 620 and 659 is considered to be an average score and will help you get loans from some banks. Any score between 660 and 699 can be sufficient to get loans at attractive and competitive interest rates. Those people having a credit score between 700 and 759 will not have trouble in securing credit at all, while those having credit scores in the range of 760 to 849 would have 'excellent scores'.

For your information, the average credit score in the states of Alaska, Arizona, California and Colorado are believed to be the highest. All these states have an average credit score above 680. Consulting a financial planning expert on how to improve your credit score can help debt ridden people to a great extent. You can also take help from credit counseling services to help you come out of debt as soon as possible and raise your credit score.

Getting a perfect credit score would be possible if you consider the above facts seriously. So, hoping that this article on what credit score is good will help you actually, I would like to sing off here. Good luck!

How to Calculate Dividend Yield

The inherent value of a stock and its future potential can only be determined by studying the fundamentals of the holding company. It's therefore essential that every stock investor be well versed in the art of security analysis. Among the many financial parameters that come under the scanner while studying a stock's performance, one of the most important is 'Dividend Yield'. Ergo, it's essential that a beginner stock investor knows how to calculate dividend yield. That's exactly what is discussed in this Buzzle article, which also offers a ready-to-use online dividend yield calculator, which you can use right away. Those among you, who are clueless about what dividend yield is and its calculation procedure are advised to keep reading ahead.

Dividend Yield Calculator
Enter Annual Dividend Value Per Share in USD
Enter Current Trading Stock Price in USD
Dividend Yield =

What is Dividend Yield?
Many public listed companies offer a share of their annual profits in to their shareholders. The share of profits received is known as a 'Dividend'. Depending on the quarterly profits of every company, its dividend value varies. Also, subject to company performance and market whims, its stock price rises and falls on the stock market. A dividend yield value correlates the company's annual dividend paid per share with its current stock price. In fact, when you divide the annual dividend per share, by its current stock price, what you are left with, is the dividend yield. Here is the formula used for dividend yield calculation.

Dividend Yield = (Annual Dividend Value Per Share) / (Current Stock Price Per Share)

Dividend yield is a ratio is often expressed in percentage. The higher the value of the annual dividend, more profitable will be the acquisition of the stock.

Dividend Yield Calculation
From the company financial records offered online, you can compute the value of dividend yield, if you know the current stock trading price and the annual dividend value per share. Let me illustrate the calculation, through an example. This ratio offers you a direct measurement of the return on investment, which you might expect through purchasing of the stock.

Consider that a stock is trading at a value of $25 and it yields an annual dividend of $4 per share, then what would its dividend yield be? Using the calculator presented above, the answer can be easily computed. In this case the result would be as follows:

Dividend Yield = ($4/$25) = 0.16

This value means that 16% of your money invested in buying the share would be eventually recovered through dividends. If you find an actual stock which can provide a 16% dividend yield, I would recommend that you buy it. However, the yield rarely tends to be this high and is usually less than 10%. Using the calculator provided above, you can easily computer the dividend yield value for any stock. Visit any one of the online services which provide live stock data. My suggestion would be that you use Google Finance site, which offers complete information about any stock trading on NYSE, NASDAQ and AMEX.

As you might have already realized, computing the dividend yield value is a simple task, once you know the annual dividend share value and the price at which the stock is currently trading. Companies that have been in business for long and especially blue chip companies like Google or Microsoft will always have a greater dividend yield percentage, compared to others.

Stocks with rich dividend yields are investments that can provide you with a high return on investment in the future. Consider all the factors which determine the value of a stock like earnings per share, company's P/E ratio, debt to equity ratio, past revenue records and other factors in totality, before deciding to make a share purchase.

Average Total Cost

For any commerce or economics student, accounting is the core subject of study. Concepts like cost, revenue, taxes, assets, margins, etc., are significant to make them understand the cost and pricing structure of a company as also the larger picture in the financial field. For any company, the concept of average total cost (ATC) helps in determining its profit and loss structure, the variables affected, distribution and marketing strategies, and hence the money to be spent on them. Any change in the ATC has a bearing on all these factors.

What is Average Total Cost?

Average total cost (ATC) is the total cost per quantity produced. For instance, if the total cost of producing 1000 units for an XYZ company is $10,000, then average total cost is $10 per unit. ATC is made up of two quantities, namely, average fixed cost (AFC) and average variable cost (AVC). Also, there's another major cost concept called marginal cost (MC), which we'll see in the later part of the article. Average fixed cost is fixed cost per unit quantity, which is the total of money spent on fixed entities like rent, salaries, electricity, water, insurance, etc. AFC never changes even if there is a rise or fall in production depending on the demand and supply. On the other hand, average variable cost is variable cost per unit quantity, which is the dynamic spending on overtime pays, marketing, advertisements, maintenance of machinery, cost of tools and labor, indirect materials, payroll taxes, etc. This cost undergoes a change every day, and hence it can have a major bearing on the profit margin. ATC is, basically, the addition of AFC and AVC.

The best way of knowing the profit is calculating the difference between the average total cost and the price of the product. For instance, if a company manufactures a shirt at the ATC of $50 and sells it to a garment store for $70, it makes a profit of $20 per shirt. If the ATC goes up, the profit will lower and vice-versa. Thus, ATC has a lasting effect on the entire revenue structure of the company.

Average Total Cost Formula

For determining the ATC, first we'll need to find out the total fixed cost and total variable cost. Then, the AFC and AVC, and hence ATC are calculated with the following formulas.

AFC = Total fixed cost Quantity of output produced.

AVC = Total variable cost Quantity of output produced.

ATC = AFC + AVC.

Or, ATC is simply calculated as, ATC = Total cost Quantity of output produced. Now, when we plot the ATC curve on a graph with the quantity of output produced on the x-axis and average total cost on the y-axis, we get a U-shaped curve. It decreases exponentially as the quantity produced increases until it achieves a lowest point and intersects the marginal cost curve. Marginal cost is the cost required to produce one more unit of output and calculated as dTC/dQ, where TC is the total cost of production and Q denotes the quantity. It tells us the required cost to produce the next unit and the point where the MC curve and ATC curve intersect denotes the 'capacity', which is the quantity which minimizes average total cost. At this point, the ATC is minimum and hence the profit is maximum, with the company being at the most efficient level of production. After this point in the graph, the law of diminishing returns takes over and each quantity produced after that has a higher per unit cost, hence increasing the average total cost. Thus, the negatively sloped portion denotes the decreasing ATC and increasing marginal returns, and the positively sloped curve denotes the exact opposite.

Average total cost and marginal cost curves, thus, help a company in deriving the entire profit-loss arrangement once they have a detailed idea of demand and supply structure. ATC calculation paves a way to ascertain a future strategy to maximize the profits and optimize the company's work-fabric and efficiency. Also, if you are an economics student, this concept will come up every now and then in the accounting problems. I hope this article thoroughly clarified this concept. All the best!

Debt Issuance Costs

The term debt issuance is also known as cost of capital, or cost of debt or loan. Basically the term originates from the act of raising capital from various sources and cost incurred therein. Micro-economists such as Adam Smith advocated that wealth flows from one source to another by the way of payment to the factors of production. The four factors of production, being land, labor, capital and enterprise, receive, rent, wages, interest and profits respectively, for their participation in the process of production.

About Debt Issuance Costs

From a layman's point of view, costs of debt issuance, or as some may put it, cost of capital, is basically an expenditure that is incurred as a consequence of borrowing. In modern economics, money is basically treated as a commodity the use of which is charged with money. Thus basically you are renting out money for a specified interest or cost, this cost is generically termed as cost of debt issuance.

For the sake of explanation, let us consider the capital raising process of businesses. Businesses raise their capital from 2 major sources, namely, from stock capital or from debt loans. Here's how the entire transaction goes:

• The companies issue a specified debt instrument, which is also often termed as a security, against an investment, in order to raise capital. Instead of shares, often bonds, promissory notes and debentures are also issued. In such a case, a dividend is paid as the debt issuance cost against the capital borrowed. This premium is paid on a yearly basis, out of profits to all stakeholders.
• The second type of debt is of course the loan. The debt costs of loans, consists of interest and closing costs which are sometimes also known as origination fees. The interest is paid for a prolonged time, as opposed to the closing costs that are paid in a single installment.

Treatment of Debt Issuance

During financial planning and accounting, debt costs are treated in a different manner. The following are come of the common conventions and standards that are followed by the people and business to treat debt issuance.

• Accounting considers all debt related costs to be long term expenditures and just like interest costs, the closing and one time costs are treated as long term expenditures.
• The debt cost amortization is a process where all cost relating to issuance of debt are phased out over a few years time. In such a case if the closing costs, amount to $5,000 for a loan of 5 years then $1000 is paid every year, or the company accounts are adjusted accordingly. In such cases, this accounting treatment is also termed to be deferred debt costs.
• The issuance costs tax treatment is different and, as per the Internal Revenue Service (IRS), most of the issuance costs are tax-free, especially the interest.

The debt issuance costs often depend upon the standing of the credit ratings of the individual or business, especially the costs that are incurred during the loan borrowing. Hence, make sure that you improve those before applying for a loan. Share-related costs are however quite less and are aimed at profit-sharing, though in some cases companies opt not to issue a dividend.

Federal Tax Brackets for 2012

Tax experts assemble each year, around this time, to envision how the income brackets will look like, by assembling inflation data. This is done so that the tax rates are abreast with the rising inflation. The year 2010 saw some complexity due to the Bush-era tax cuts, but the matter was resolved and 2011 tax brackets showed a slight change from 2010 tax cuts. This time around, all one can see is minor changes in the tax brackets and standard inflation deductions.

2012 Federal Income Tax Brackets

Just like the tax brackets for the year 2011, common federal tax brackets for the year 2012 which have been updated, are divided into four filing categories; viz.,

• Single filers
• Married and filing separately
• Married and filing jointly
• Head of household

The regular deduction provisions, namely the standard and itemized IRS tax deductions list have also not changed much. Compared to last year (when the rise in inflation averaged 1.48%), this time i.e., over the last one year, the rise in inflation averaged 2.43% (higher than 2011); however, this average is still low if we compare the inflation statistics over the past 20 years. Although the tax brackets for 2012 have come up, most citizens are not too worried with the figures until next year. Come April and you will need to look into the tax brackets, if you have to file your 2011 returns.

IRS Tax Brackets: 2012

Apart from the aforementioned minor changes, no significant changes have been mandated. The IRS tax rates and the basic rules for filing and standard deductions have remained the same. For 2012, there will be six tax rates: 10%, 15%, 25%, 28%, 33% and 35%. Here are some tables depicting federal tax brackets for 2012. The first one is for the tax deductions for individuals, which are standardized in nature. They are followed by tables for the current tax rate brackets.

Standardized Tax Deductions

Status	Standard Deduction in $
Tax payers filing as singles (married or unmarried)	$5,950
Married tax payers filing jointly	$11,900
Head of household	$8,700

Unmarried Individuals

Income Amount	Tax Implication and Applicable Rate
more than $0 but not more than $8,700	10% of taxable income
more than $8,700 but not more than $35,350	$870 (+) 15% applicable for amounts exceeding $8,700
more than $35,350 but not more than $85,650	$4,867.50 (+) 25% applicable for amounts exceeding $35,350
more than $85,650 but not more than $178,650	$17,442.50 (+) 28% applicable for amounts exceeding $85,650
more than $178,650 but not more than $388,350	$43,482.50 (+) 33% applicable for amounts exceeding $178,650
more than $388,350	$112,683.50 (+) 35% applicable for amounts exceeding $388,350

Married but Filing Separate Returns

Income Amount	Tax Implication and Applicable Rate
more than $0 but not more than $8,700	10% of taxable income
more than $8,700 but not more than $35,350	$870 (+) 15% applicable for the amounts exceeding $8,700
more than $35,350 but not more than $71,350	$4,867.50 (+) 25% applicable for amounts exceeding $35,350
more than $71,350 but not more than $108,725	$13,867.50 (+) 28% applicable for amounts exceeding $71,350
more than $108,725 but not more than $194,175	$24,332.50 (+) 33% applicable for amounts exceeding $108,725
more than $194,175	$52,531 (+) 35% applicable for amounts exceeding $194,175

Married and Filing Jointly

Income Amount	Tax Implication and Applicable Rate
more than $0 but not more than $17,400	10% of taxable income
more than $17,400 but not more than $70,700	$1,740 (+) 15% applicable for the amounts exceeding $17,400
more than $70,700 but not more than $142,700	$9,735 (+) 25% applicable for amounts exceeding $70,700
more than $142,700 but not more than $217,450	$27,735 (+) 28% applicable for amounts exceeding $142,700
more than $217,450 but not more than $388,350	$48,665 (+) 33% applicable for amounts exceeding $217,450
more than $388,350	$105,062 (+) 35% applicable for amounts exceeding $388,350

Heads of Households

Income Amount	Tax Implication and Applicable Rate
more than $0 but not more than $12,400	10% of taxable income
more than $12,400 but not more than $47,350	$1,240 (+) 15% applicable for the amounts exceeding $12,400
more than $47,350 but not more than $122,300	$6,482.50 (+) 25% applicable for amounts exceeding $47,350
more than $122,300 but not more than $198,050	$25,220 (+) 28% applicable for amounts exceeding $122,300
more than $198,050 but not more than $388,350	$46,430 (+) 33% applicable for amounts exceeding $198,050
more than $388,350	$109,229 (+) 35% applicable for amounts exceeding $388,350

Make sure that you follow all the instructions for Form 1040 schedule A, while filing your income tax return. When in doubt about the income tax brackets, confirm with the IRS website or with the instructions that are attached to your form. The Bush-era tax cuts got a two-year extension which is supposed to cease in 2012; so let's see what lies ahead in 2013 for us.

Ways to Invest Money Wisely

The term investment means giving money to receive returns at a later stage. Investing your money is always a genuine concern for you as a salary in the bank account does not 'grow' even if you keep it there for several years. Some minor interest will just accumulate on it. Hence investment of some proportion of income is necessary. Life in the modern world has become increasingly difficult and a need to make indemnity provision is a must. Today the common man is concerned about three important things, one financial security throughout life, two kids education and well-being and three unanticipated expenditures in life.

Blame materialism, blame society, blame the modern culture, but the fact remains that we are scared and the fear, that we feel promotes us to ask the repeated questions, 'what are the best ways to invest small amounts of money', or 'how to invest money wisely'. As a student of economics and finance, I want to state some realities in front of you:

1. the amount that you earn is never going to be enough for you, hence curb temptation and wants, make compromises and adjust your expenditures
2. no investment is a gold mine, every investment has an average rate of return over investment, to get the advantage of a couple of dollars or percentages, make some simple rate of return formulas
3. now if you have to make an investment, you need to have a certain income and expenditure planning, hence again, make sure that you calculate , plan and stick to the plan

The psychology behind investing is deep and in order to get the gist of it better, you need to calculate three things, namely, how much you will have to pay per month, can you afford that much payment a lastly, how much will you earn per month.

Funds, Plans and other Securities
In the following funds, all you would have to do is invest on an annual and monthly basis and then enjoy the benefits. In many cases you will be able to invest more than prescribed, and the company will share the extra profit with you.

• Life Insurance: The first great option is a life insurance policy. When you invest make sure that the policy has a return on investment, which is regularly placed plus a death benefit.
• Annuity : An annuity plan is more over like the life insurance and if you chose to you will be able to control. You will also have the freedom to investment more than the installment, if you feel that the market is going to rise. Some annuities are subject to market risks.
• Mutual Funds: A mutual fund is a fund where the company shares all the profit with you and your funds are subject to market risks, though there is an assured sum of return.

Accounts and Deposits
There are several random accounts where you can just deposit money on a monthly and annual basis and let the interest on the sum grow. There are some tax benefits of many of these accounts with your deposits being totally tax-free in certain circumstances. There is also no lower limit for your deposit, though there is an upper limit that be set.

• IRA: The individual retirement account is an account where finances can be deposited on a monthly or annual basis, with the entire amount being tax-free. Problem is you can't withdraw the amount before you reach a certain age, though you can withdraw it with a penalty. Apart from that there are also some specific situations such as a medical expenditure where you can withdraw the amount without penalty. Advantage is that there is no lower limit for deposit.
• Payable on Death Accounts: A payable on death account is a similar one to an IRA and there is no lower limit, which makes it a considerably advantageous policy for many people. It's great way to invest for your family.

Market Based
Now there are some assured ways to invest money wisely, but you will have to participate in a specified market. Such investments are basically involve purchase and sale of securities or instruments and the function demands your daily attention. Apart from that, you are on your own in such a situation and bearing the probability of loss is your duty.

• Stock or Shares: The first option is stock investing, through stock markets, this of course requires total attention and you will have to keep an eye on the market everyday and dedicate at least an hour to the activity. There two ways in which you can make money, one you can make money by selling a stock that you purchased at a lower cost or you can just enjoy the dividend that is paid on an annual basis.
• Forex Market: The Forex market is also known as the currency market and it is again a bit risky to deal in such a market due fact that a single time investment is high and the returns are high, but the probability of loss is also high. Apart from that there is no annual divided in this market.
• Corporate securities: Apart from stocks, there are also several other securities such as debentures and asset backed securities that are issued by the companies. These securities tend to have a certain date of maturity when you can get back the investment plus returns. Alternatively you can also trade certain securities on the stock exchange.
• Stock Investments: There are certain stock related collective investment schemes where bulk stock investments are managed with the help of professional experts for a said period of time.

There are some substantial investment channels such as governmental bond investments, real estate or land investment, gold investment which have a sure shot return. The initial investment, however, is quite high.

Winner's Curse Explained

With respect to an auction, I believe we used the word fate before the term winner's curse was established. Almost every common value auction has a victim of the winner's curse. This term first came into existence in the second half of the 20th century, when oil companies were bidding for offshore oil fields. The oil companies who won the auctions by bidding aggressively, ultimately realized that they had overestimated the value of the offshore oil fields, thus they had made a loss even after winning the auction. A common example of winner's curse is, when a bidder overestimates the value of a car in a luxury car auction, and ends up buying the car for a higher price. It can be stated that, the winner's curse often leads to a paradoxical situation, where a win leads to a loss!

What is Winner's Curse?

In common value auctions, every bidder has an estimate of the value of the good being auctioned, but he does not know the exact market value of the good. The ignorance about the market value makes the bidder overestimate the intrinsic value of the object. The bidder with the highest overestimation wins the auction hands down, but his victory is accompanied by a loss, as the highest bidder has overpaid for the good. Let us consider the following examples to understand the winner's curse:

The Envelope
A, B and C are 3 people who are bidding for an envelope. They were told that the envelope contains money. Finally, after observing, the envelope A, B and C bid, $10, $50, and $1, respectively. B won the auction as he was the highest bidder, and he opened the envelope just to realize that it contained a $1 bill! You can easily calculate the loss that B made, he was a victim of the winner's curse.

The Coin
A, B and C went for another auction. This time a very old coin was up for grabs. Once they were done observing the coin, they were asked to bid. This time, A and C bid $50 and $100 respectively, but B bid $500! The coin now belonged to B. A and C were sure that B was a victim of the winner's curse once again, but they did not know that B had contacts in an antique market outside the country, where the coin would fetch over $2000!

The Explanation

The first example clearly depicts the winner's curse in a common value auction where the bidders have incomplete information, while the second case shows how it can be avoided if you possess complete information. You can easily infer from the above examples that, you can avoid winner's curse if you have complete information about the valuation of the good being auctioned.

One thing that you should remember is, the value of a particular good is very subjective. Something that is priceless for you may be worthless for someone else. When your bid is driven by emotion rather than the need for monetary gains, you are immune to the winner's curse! Thus, private value auctions are not affected by winner's curse.

A way to avoid the winner's curse even in the state of incomplete information, is to bid less than the value that you estimate (this technique is often used by intelligent bidders all over the world). By using this method, you reduce the chance of overestimating. It is also believed that the probability of overestimation increases with the number of the bidders, as, if one bidder overestimates, the others tend to follow.

Winner's curse is not a very bad thing, it is a inseparable part of auctions, so do not lose hope if you are a victim of this curse once. You will surely learn from your mistakes, and improve with experience that you gain at each auction.

Land Investment Advice

It must be noted that land investment does not mean investment in property. Land investment means investment in real estate and land without any construction over it. The piece of land or real estate that has certain construction or structure on it has been classified as property. Mark Twain jokingly once said that, one should buy land, its production has been stopped. In a literary sense the statement is hilarious and from the point of view of economics it is a fact. Land which is one of the most important resources, is needed for the simplest purpose - human existence.

Demand and Supply Analysis of Land

Land has an inelastic and non-growing supply and at the same time it has an infinite and ever-growing demand. In simple words, the total area of land in the world is limited, whereas the available land that people can buy is always going to be limited, save some small projects such as land reclamations. In short, higher demand and limited supply of land has escalated the land prices throughout the world. There are several reasons such vicinity to amenities, utilization resources, cultivable characteristics of land, or other such features tend to escalate the cost of land even more. This is also the reason for the different price levels in the different parts of the country. The rule of thumb is the more convenient and resourceful the land (i.e. more number of uses mean the land is more resourceful) the more is demand for it and vice versa. More demand means that the price of the piece of land is going to steadily rise. Hence, as an investment, you will need to hunt for a piece of land that has very good value projections. To do so, you will have to conduct some market research and analysis. While researching, there are a couple of channels such as realtors and estate planning experts who you can approach if you are dealing in a mammoth investment.

Locations and Features of the Land

The best pointer to the value projection of a particular piece of land is its features. When you decide to invest in land, you will have to look up and research the different features of land. First, the geographical and geological characteristics have to be observed such as is it an industrial, barren, agricultural or mountainous piece of land. Usually the barren and mountainous piece of land would not get much of a high price projection. The second aspect is the significance of the surroundings. For example, if the plot of land is situated on one of the main roads of the city, then the projection is magnificent, if it is situated near an industrial belt then you got a lot of returns, if it is barren and still next to or in the vicinity of an urban region, then again there is good chance that you have struck gold there. The features of the land itself and even the ones of the surroundings is a great pointer so as to learn how much will the value of land will increase. Your analysis should thus be precise and in detail. Hollywood Boulevard is one of greatest examples of how the features of land and its surroundings affect its price. Reading more and more real estate investment tips, land for sale columns, and land investment advice that appears in the newspapers, magazines and websites will certainly help you a great deal.

Mortgages and Loans

One of greatest worries of buying a plot of land is the financial consideration. There are three things that you can do to make the investment a really rewarding success. Point number one get in touch with banks and public lenders and get pre-approval of the real estate loan. Calculate the installments, closing cost, add up potential interest rates and then, compare the same with your research. If you feel that the investment cost is much lesser than the sales costs that you are anticipating, then the purchase is worth it.

The best thing about land investment is that the demand and price are always going upwards, and there is going to be no dearth of potential customers once you decide to sell the land. There are many options that you can execute even before selling the land, for example you can develop the land, or construct an entire set of buildings or some houses, or some commercial place before selling. Developing a farm or any other commercial place before selling that one piece of land is also a great idea to have a side business till you decide to sell the place.

Bankruptcy Rules - Chapter 7

Filing bankruptcy under Chapter 7, gives the debtor an opportunity to make a fresh start in life by accepting the individual's inability to discharge most debts. However, the petitioner will still be liable for loans that were incurred for paying alimony and child support. The debtor is also liable to pay certain taxes, repay loans availed for higher education and loans disbursed or guaranteed by a government entity. Debts, that are a result of criminal offense or negligence on the part of the debtor, also have to be requited. One may delve into the eligibility criteria for filing bankruptcy; the procedure and the monetary cost of filing in accordance with bankruptcy Chapter 7 rules; the schedule of exempt and non-exempt assets and the role of the trustee for a better understanding of the Chapter 7 bankruptcy rules.

Eligibility Criteria: Seeking relief, by filing bankruptcy under chapter 7 of the US Bankruptcy Code, is subject to an individual or a sole proprietor qualifying the Means Test for bankruptcy, irrespective of the extent of debts and the solvency of the debtor. A petitioner, whose prior bankruptcy petition has been dismissed during the preceding 180 days, on account of the debtor's willful failure to appear before the bankruptcy court or comply with court orders, is not eligible to file under Chapter 7. Voluntary dismissal of the previous case, due to creditors seeking relief from the bankruptcy court to recover debts, also disqualifies the debtor from filing bankruptcy. Credit counseling should have been sought by the debtor at least 180 days before filing bankruptcy, if not earlier, unless the debtor has been exempt on account of emergency situations or the trustee, appointed by the court, has determined the dearth of approved agencies to provide the requisite counseling. Any debt management plan, that is developed during the required credit counseling session, must also be filed with the court.

Procedure: The debtor is expected to file a petition, a schedule of assets and liabilities, a list of contracts that can be executed and details regarding unexpired lease. One needs to provide additional documents in case of consumer debts. Couples may file a joint petition or individual petitions. Filing a bankruptcy petition includes filling out Official Bankruptcy Forms and providing details regarding creditors and their dues, the frequency of income, assets, monthly living expenses and any anticipated increase in income and expenses. In case of couples, the income and expense of the non-filing spouse is used to evaluate the financial position of the debtor.

Monetary Cost of Filing Bankruptcy: The monetary cost of filing bankruptcy works out to $299. The break-up of the cost is as follows: $245 case filing fee, $39 miscellaneous administrative fee and $15 trustee fee. Debtors may pay in installments of 4 provided the duration between paying the final installment and filing the petition does not exceed 120 days. In case the debtor does not pay these fees, the case may be dismissed by the bankruptcy court. If the debtor's income is less than 150% of the poverty level, the court may waive the requirement for paying fees.

Exempt and Non-exempt Assets: The debtor is required to file a list of exempt assets with court since the Bankruptcy Code allows an individual debtor to protect certain assets. People living in Washington D.C or individuals residing in one of the following 14 states may opt for Federal bankruptcy Chapter 7 exemptions over state exemptions since certain provisions, in the Bankruptcy Code, allow states to adopt their own laws in place of Federal laws regarding exemptions: Arkansas, Connecticut, Hawaii, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont and Wisconsin.

Role of the Trustee: After 20 days of filing the petition, the trustee is expected to hold a meeting with the creditors and the debtor. The latter is put under oath and is expected to answer questions regarding his/her financial position. Couples, who are filing jointly, are expected to attend the meeting and answer relevant questions posed by the trustee as well as other creditors. The trustee is expected to reach a conclusion regarding the debtor's eligibility to file under Chapter 7 within 10 days of the creditors' meet. The meeting has to be held within 40 days of filing the petition although a 20 day grace period is customary in case of unavailability of trustees. The trustee also ensures that the debtor is aware of the consequences of seeking bankruptcy discharge under Chapter 7. The impact on credit history, the ability to file a petition under a different chapter, the effect of receiving a discharge, and the effect of reaffirming a debt are also impressed upon the debtor.

Chapter 7 bankruptcy rules make the trustee responsible for liquidating nonexempt lien-free assets, or exempt assets with liens, provided the value of the liens against the property is worth more than the money owed to the creditors. The trustee also has the power to obtain additional money by using the avoiding powers conferred upon him/her and may operate the debtor's business for a limited period of time, provided doing so enhances the returns to unsecured creditors. Generally, debtor's filing under chapter 7 do not have any assets. Hence, the creditors need not file proof of claim. If the debtor has assets, the unsecured creditors are expected to file a claim within 90 days of the proposed creditor's meet. Government entities would need to file the claims within 180 days.

Filing bankruptcy has a number of negative consequences. It reduces the ability of the borrower to avail loans and mortgage for buying a home. It impacts a person's standing in society since bankruptcy public records carry detailed information regarding bankruptcy. Moreover, a bankruptcy remains on record for 10 years from the date of filing and it results in a person's credit score declining by as much as 300 points.

Different Types of Clients and How to Deal with Them

Rule 1

The customer is always right.

Rule 2

If the customer is ever wrong, re-read Rule 1.
Stew Leonard
Every customer wants you to treat him like a king. However, different types of clients have different types of personalities. Hence, utilizing the same behavior while dealing with different types of clients may not impress them.

You need to understand the personalities of these people before interacting with them. For example, if you are dealing with a 'perfectionist', then you cannot deliver shoddy work which lacks in quality.

You will have to understand the expectations of the various types of clients and cater to them. Here are a few types of common client personalities which will help you to deal with them better.

The Whatever Works Client

ClientWhy do you want me to fill the briefing form? I don't have time to do all this clerical work. Use your own imagination.You
It would really help us save time if we knew what you are expecting from us.
ClientLook, this is not your first assignment with us. You should come up with an innovative concept for our new range of solar products. I know you will be able to do it easily.
This client allows you to exercise your creative freedom. He is disinterested in any kind of work and expects you to come up with innovative concepts on your own. One benefit of this type of client is that he is not recklessly determined on getting the work done in his own way, and can also pay you well if he likes your work.


Personality Traits
He will give you least amount of input which may cause many re-works.
He will accord you a lot of creative freedom.
He is completely disinterested in the work.
He will be unresponsive to your queries.
He will always cite lack of time to avoid giving you a briefing.


Dealing With Him
You will have to push this client to get him to respond.
Help him by providing creative options.
Note down cues for work that he gives away in casual conversations.
Being on good terms with this client will be highly helpful to you.
If you 'salvage' him by providing good ideas, he will like it.
Have as many interactions as possible with this client.
The Perfectionist Client

ClientI don't care if you have to re-print the brochure. I already mentioned that I wanted the book to be printed in dark gray CMYK combination and you used just gray instead.You
But it hardly makes any difference. And I think this option is really making the brochure stand out from the rest.
ClientOh no, are you going to change the brochure or do I have to change the agency?
Like the character of Sheldon Cooper from 'The Big Bang Theory', this type of client thinks that he knows better than you. He likes it when you work according to his ideas and beliefs. He may nit-pick even the smallest of details in the work and crib about them. There are chances that the harsh words of this client can make you lose your confidence.


Personality Traits
This client complaints constantly if you do not deliver as he pleases.
He expects you to deliver exactly as per his specifications and will suggest many changes.
This client is a perfectionist and will be very hard to impress.
He will get into every small detail of the work.
You will hardly hear any words of appreciation.


Dealing With Him
The best way to impress this client is to deliver exactly what he has asked for.
Maintain the quality and quantity of work.
Detach yourself from the project, to avoid getting hurt by the words of this client.
Sometimes he will try to look down upon you, do not get affected by this.
Don't doubt your skills if he does not agree with your work.
Practice patience and keep calm while interacting with him.
The Know-it-all Client

ClientI want the design to look dynamic. You can use lots of hard-hitting text with a compelling visual.You
But that will not serve the purpose in our campaign. We should let the image speak for itself with minimum amount of text.
ClientIt will, I have 20 years of business communication experience. I know exactly what works and what doesn't.
This type of client can be very difficult to deal with as he has a huge ego. He thinks that he knows anything and everything regarding your work. The most irritating habit of this client is that he will try to teach you your own work. However, you need to keep patience and practice tact when dealing with him.


Personality Traits
He is always over-confident.
He likes to show-off of his intelligence.
He is rigid when it comes to new ideas.
he tries to throw his weight around.
He is often delusioned about the work.


Dealing With Him
Give him credit for the work.
Boost his ego from time to time.
Use keywords like, 'What an idea!', 'We will follow your idea', 'You are right', etc.
Carefully suggest changes to his idea, don't negate him altogether.
Compliment him, but never criticize.
Sugar coat your words when you have to put across something which he may oppose.
The Tough Taskmaster Client

ClientWhat do you mean, it's a national holiday? You will work when I ask you to. Now, have a look at the briefing that I have emailed you.You
I really do understand that it is an emergency, but I am out of town with my family. Besides, there is no one at the office to respond to this matter now. Can we get additional time till 12 pm tomorrow?
ClientWell, how you manage is your concern. I want the work ready by 9 am sharp tomorrow morning.
Like Miranda Priestly's character from the film 'The Devil Wears Prada', this client is a highflyer in his career who has a lot of decision-making powers. He is well aware of the 'power' he owns. He does not consider if it is a public holiday or the fact that you are out of station, he wants his work completed anyhow.


Personality Traits
Exudes a sense of self-confidence.
Likes to be in control of situations.
Wields power in the workplace.
Is a tough taskmaster and you must work as he wants.
Makes it a point to threaten you by hiring someone else.


Dealing With Him
Be stern while putting your foot down in case you need more time.
Do not become a doormat when he starts to say nasty things to you.
Try to gain his trust and confidence.
Explain to him if the work requires more time.
Stress on the keywords like, 'quality work', 'more impressive options', 'innovative ideas', 'best solutions', etc.
Try to handle things professionally with this client.
The Unassertive Client

ClientIt's okay, I understand that you were busy yesterday. Can you please complete it in the next two days at least?You
Good, you understand. I am not sure, but I can definitely try.
ClientPlease try to complete it. I have already received a memo because of this. I have an ultimatum of two days for this work.
This type of client usually settles for less than perfect work and does not assert his power or opinion when it comes to work. He prefers to sit and wait for the work to be completed, and does not exert pressure on you to complete the work. However, this should not lead you to deliver shoddy work.


Personality Traits
Lacks confidence.
Easily extends the deadline for you.
Likes and accepts the work easily.
Does not give suggestions.
Does not get into arguments with you.


Dealing With Him
Don't take advantage of their generous nature.
Discipline yourself to meet his deadlines.
Treat him well, don't take him for granted.
Encourage him to give his opinions.
No matter what, respect him.
Do not compromise on quality when delivering to him.
The Friendly Client

ClientYou have done a great job with the exhibition display. I must say that everyone liked it.You
I wish we had more time, I would have been able to add some more design aspects to the structure.
ClientWhatever you rolled out in a matter of few days is highly commendable.
You should thank your stars if you have a friendly client. Not only is he easy to get along, but also values the good work which you deliver. He also encourages you to deliver better quality of work, thus raising the bar of your work.


Personality Traits
Appreciates your work.
Can extend the deadline if you are delivering quality work.
Understands your work pressure.
Motivates you to do better every time.
Happily makes your payment on time.


Dealing With Him
Deliver on time and give many options.
Suggest new trends in the market.
Ask for an advance if you want it.
Be friendly and cordial with him.
Ask for his inputs wherever necessary.
Don't get too comfortable and deliver repetitive work.
The Shoestring Budget Client

ClientCome on now, I am looking for a five-year contract with you. And you are still not ready to compromise on the prices.You
It is really not possible for me to cut down on the cost of printing. If I do so, I will have to spend from my pocket. I have already given you a considerable discount on the design.
ClientWell, then perhaps you can give us further discount on the designing aspect, or you can give us a 100% discount on it.
Like the character of Uncle Scrooge from 'A Christmas Carol', the shoestring budget client is extremely penny-pinching. He expects you to give him heavy discounts. He thinks that he has done a favor by giving you work, and getting it done at minimal cost is his rightful privilege.


Personality Traits
Has a money-pinching attitude.
Gets extremely happy at the mention of the word 'discount'.
Looks for ways to get more and pay less.
Is an expert at bargaining.
May even lead you to pay out of your pocket.


Dealing With Him
One way is to hike the cost so that the client will bargain and get it to the actual cost.
Include a fixed cost in the contract itself.
Mention the limit of the discount in the contract.
Withhold the work, citing cash flow problems, and get an advance.
Convince him that a discount beyond a certain amount is not possible.
Threaten legal action, if payment is not done as per the agreed terms and conditions.
The Unrealistic Dreamer

ClientI want the launch of this product to be a grand one. I want a Hollywood celebrity to attend this program. Hire a football ground if you want, but this product should be the talk of the town.You
I understand that you want to make a media splash with this launch, but you have to understand that the product is a mechanical product used by a niche technical base. It does not require FMCG kind of publicity.
ClientIf you can't do this, then at least hire a helicopter for the Hollywood celebrity to make an impact.
The unrealistic dreamer is an amusing and curious client. He has elaborate and crazy ideas about different things related to work. Not only does he frustrate you with his bizarre ideas, but he can also take up your valuable time by indulging in long, fruitless discussions.


Personality Traits
He is very hyperactive.
He has big dreams and aspirations.
He is very talkative.
He has futuristic ideas, but they are not feasible.
He is very curious and takes up a lot of your time.


Dealing With Him
Set a time limit for your meeting.
If the meeting is extending, tell him you have another appointment.
Give him logical reasoning and bring him back to reality.
Tell him that his ideas are good but are not currently workable.
Offer him your paid consultancy services for discussing his innovative 'ideas'.
When he digresses, make it a point to bring him back to the topic of work.
The Indecisive Client

ClientI liked the color and the elements of the design, but I am not too sure that it goes with our corporate theme. Wait, I will show it to our team and get back to you.You
Okay, I will wait for your call.
ClientI consulted many people in our communications' team. They think that the design is okay, but we need some serious changes in the color, content, and copy.
The indecisive client lacks the confidence to take decisions which will work in the favor of the organization. He consults several people even for the smallest detail, and suggests many changes before giving you a go ahead. Hence, it takes a lot of time to complete tasks.


Personality Traits
Does not know which idea or concept will work.
Is not confident about the choices he makes.
Lacks decision-making capability.
Consults others for every small decision.
Makes too many changes in the work and takes a long time to respond.


Dealing With Him
Give him a limited number of options.
Pursue him to see your mails and respond quickly.
Boost his confidence by saying that he always makes the right choices.
Convince him that too many cooks will spoil the meal.
Create an urgency to finish the pending work at your end.
Get an official go ahead on the work before finalizing it.
Some of the other types of clients are the 'Hands-on Client', the 'Tough Nut Client', the 'Forever Urgent Client', the 'Skeptical Client', the 'Legally Obsessed Client, the 'Non-technical Client, etc. Always assess their personalities before dealing with them. This will help you to design an interaction which will work in your favor.