You are currently browsing the monthly archive for July 2010.
Ashlea Ebeling, 05.24.10
An Illinois woman inherited not quite $100 million this year. Estate taxes could consume 53%, 45%, 16% or none of it, depending on whether the federal and/or Illinois estate taxes–which both lapsed on Jan. 1, 2010 are reinstated retroactively. “It’s wacky to have so many scenarios and not know what the tax is,” complains Richard A. Lang, a Chicago partner of McDermott, Will & Emery representing the estate.
You’re not crying for the heiress or her lawyer? Then consider another Lang client, a widow trying to divide her late husband’s modest estate with the children from his first marriage without incurring ill feelings or big lawyers’ bills. The husband’s will was tied to the defunct federal estate tax. Now, by one legal reading the widow gets everything outright. By another, all the assets go into a trust that ultimately goes to the children, with the widow having access to the trust’s earnings (and, if need be, principal) while she’s alive. “This is going to be worked out,” Lang vows.
Lots of families are living in similar estate limbo. Under the crazy terms of the 2001 Bush tax cuts, the federal estate tax expired on Jan. 1, 2010 and then springs back to life on Jan. 1, 2011, with only $1 million in assets exempt from a stiff 55% levy on all assets not left to a spouse or charity. Meanwhile, a long-standing provision, which “steps up” the basis of someone’s assets to their market value at his or her death (allowing them to be sold immediately with no capital gains taxes due), has also lapsed for 2010.
President Obama and most Democrats want to restore the estate tax retroactively to its 2009 state–meaning $3.5 million per estate would be exempt, the tax rate would be 45% and all assets would get a step-up in basis. Republicans want a higher exemption and lower rate. When and how this gridlock will end is anyone’s guess. After all, rational folks (including most estate planners) had assumed the pols would cut a deal before the tax expired. Complicating matters: Any retroactive tax is likely to face an epic court fight from rich heirs, perhaps including those of Texas pipeline tycoon Dan L. Duncan, who died in March with (we estimate) $9.8 billion.
You need to be careful even if you don’t have as much as Duncan. Here are some tips.
Have contingency plans. Make sure your estate plan accounts for a year with no estate tax, as well as a minimal $1 million exemption next year. Typically, a couple’s wills are designed to use each spouse’s estate tax exemption, without leaving a surviving spouse short of funds. When the first spouse dies, the exemption amount goes into a “bypass” trust for the children and the rest goes outright to the surviving spouse. The survivor has access to trust income and, if needed, principal, but the amount in the trust bypasses his or her estate.
With no estate tax such formula-driven plans don’t work as intended, with too little, too much or even nothing left to certain heirs. So far ten states have passed laws saying that an estate’s executor can fund the trust as if the 2009 estate law is in place; Florida has decided to require heirs to go to court to sort it out.
If you have a bypass trust, consult a lawyer now. You may be able to do a cheap fix with a codicil that clarifies how your assets should be allocated if there is no estate tax when you die. Or, if your plan is old and you live in a state with an estate tax, consider a will rewrite that might help your family minimize the combined federal and state tax bite. (Nineteen states and the District of Columbia have their own estate taxes, and these laws are also constantly in flux.)
Get the basis. Track down your cost basis for securities, collectibles, real estate and other appreciated assets. For 2010 deaths the law allows a $1.3 million step-up in basis for property left to anyone, plus an additional $3 million step-up for property left to a spouse. (So a spousal heir can get $4.3 million in total step-ups.) If your property has more than $1.3 million in unrealized gain, your executor will need to allocate the allowed step-up to different assets and heirs–meaning he’ll need to know the basis of each item.
If you don’t die this year, your research won’t go to waste; it will help you avoid the temptation to hold on to a bad investment because you don’t know its basis and to manage your capital gains as tax rates rise.
Reconsider your executor. Maybe the son, daughter or sibling you named as executor because he or she lives close by and “gets along” with everyone is still up to the task. Maybe not. The executor may have to make complicated and delicate decisions–for example, which assets, going to which heirs, get stepped up in basis. “Beneficiaries will start sniping after the fact,” warns Kenneth Brier, a Needham, Mass. estate lawyer. You may want to name a nonheir as executor to reduce potential conflicts of interest. Once you settle on an executor, related or not, consider granting him or her the latitude to make decisions without fear of being sued, suggests Norman Benford, chairman of the trusts and estates practice at Greenberg Traurig.
Give a little. The estate tax uncertainty reinforces the wisdom of giving away some assets while you’re alive–so long as you’re sure you won’t need them. Anyone can give anyone else up to $13,000 a year in cash or assets without having to worry about gift taxes. So you and your spouse could transfer $26,000 a year to each child or grandchild. You can also pay anyone’s education or medical bills, without dipping into the $13,000 exclusion, if the payment is made directly to the school or medical provider.
In addition, each person gets a lifetime gift tax exemption of $1 million. (Once the estate tax comes back, gifts made under this provision will reduce your estate tax exemption dollar for dollar.) Above that $1 million the gift tax rate this year is just 35%. Yes, there’s a risk that Congress could retroactively reinstate 2009′s 45% gift tax rate. But wealthy families are making taxable gifts now, in part because they worry that Congress might crack down later on techniques such as grantor-retained annuity trusts and family limited partnerships. (Both are used to hold down the taxable value of gifts.)
Give a lot. If your spouse is in failing health (and a U.S. citizen) consider giving him or her most of your assets, suggests New York City estate lawyer Jonathan Blattmachr.
Why? Gifts to citizen spouses aren’t taxed, and if your spouse dies this year while there is no estate tax, you can pass down more to your kids and grandkids, free of estate tax. Note: Except where state taxes are relevant, there’s nothing to be gained from giving away the last $1 million.
Why You Should Draft A Will
Glenn Curtis, 07.27.10
Many people believe that when they die, their personal belongings and all of their worldly possessions will automatically go to their next of kin–even if they don’t have a will. Unfortunately, they’re wrong. In fact, if an individual dies intestate (without a will) the probate courts will determine how to distribute that person’s assets. And although the court system may ultimately decide to distribute the individual’s assets in a manner that is consistent with his or her wishes, there is no guarantee that this will occur.
There are other downsides to the probate process (and dying without a will). For example, it could take many weeks or months for the courts to compile an accurate list of an individual’s assets. It could also take a prolonged period of time to identify and locate potential beneficiaries. Unfortunately, until this process is complete, money may not be distributed, even to legitimate and known beneficiaries!
By drafting a will, an individual ensures that his or her belongings will go to the desired beneficiaries. In addition, although some states may still probate/review wills for their validity, the existence of a will can speed up the court review process considerably. In this article, we’ll go over the major benefits of drafting a will.
Wills Can Limit Family Disputes
Courts will allow wills to be contested in very rare circumstances. This usually occurs when there is reason to believe that the will is not totally legitimate–for example, if the person making the will is not of sound mind at the time the will is drafted and was influenced by some opportunistic third party. Although there is no guarantee that a relative won’t contest a will or sue to obtain assets not bequeathed to them in the document, a well-written will can limit family arguments.
Be Specific
The key is to be as specific as possible when leaving an asset to a relative. For example, rather than including statements such as “I leave my rare coin collection to my cousin Jack,” such a provision should read: “I give my entire rare coin collection, which consists of one 1812 United States ‘penny’ and one 1810 American $1 bill, to my cousin Jack F. Kennedy, 100 Main Street, Anywhere, USA 12345.” Again, the idea is to provide as many details as possible about both the asset(s) and the person that should receive the property. Specificity can prevent fighting, so try to lay out your wishes as explicitly as possible.
If you leave a valuable asset to a member of your family, create a follow-up provision stating who will be next in line to receive this asset if your chosen beneficiary dies before you do or is unable to accept the inheritance. Naming a contingent beneficiary is recommended because it will prevent family fights should the initial beneficiary be unable to accept the gift.
Wills Can Outline Personal Preferences/Desires
In addition to bequeathing assets to beneficiaries, a grantor (the deceased) may also outline how he or she would like certain assets to be used in the future. For example, a provision might say something like, “I give my antique 1938 Ford automobile to my son Jeffrey Smith of 123 Oak Street, Anywhere, USA 12345. I hope that my son will sell this asset to pay for his education or for a down payment on a new home.”
To be clear, such a stipulation is not legally binding. In other words, the son would not be legally mandated to sell the vehicle. However, it is considered by some to be a great venue for an individual to convey his or her final wishes in simple terms for both family members and beneficiaries. These types of provisions may also prove to be extremely valuable to beneficiaries and executors who might otherwise be unprepared to handle the administration of an estate.
Wills Make Quantifying and Distributing Assets Easier
Without a will, a probate court might send out letters of inquiry to local banks, brokerage firms and other financial institutions to get a better handle on the deceased’s financial situation. In addition, relatives may be asked to produce financial paperwork such as brokerage statements, stock certificates, government bonds or other similar documents. The logic behind these efforts is that the court first needs to know all of the assets that exist (or that existed), so that it may distribute them in an equitable manner. A will prevents the need for all that footwork and paperwork because it formally outlines the deceased’s assets. It may also quantify what certain assets are worth.
What happens if a certain asset isn’t identified by name in a will? How will it be distributed then?
In order to provide for that contingency, the will may contain a clause indicating that “any remaining assets not previously distributed elsewhere shall be paid to my mother Jennifer Smith, 456 Main Street, Anywhere, USA 56789.” Such a provision will help to ensure that all an individual’s remaining assets (such as assets acquired after the will was drafted) will be distributed. Incidentally, without a will, a court will decide what happens to the asset(s).
Wills Can Name a Guardian for Your Children
Without a will, the state in which you reside will determine who will retain guardianship over your children. While the state might choose someone you approve of, such as a family member, they may also choose an institution or an unrelated party. To avoid this, a will may outline a guardian of your choosing. To parents with young children, this is an invaluable provision that mus not be overlooked.
Providing for Heirs with Special Needs
Suppose that one of your desired beneficiaries is either too young or too immature to manage an inheritance. In such cases a will may, by provision, place these assets in another vehicle known as a trust (upon your death) for the benefit of that individual. Stipulations can then be put in place (within the trust) which limit when and under which conditions the individual can access the inheritance.
For example, a provision might provide for distribution of the assets when the beneficiary reaches the age of 25, or it might allow for the distribution of monies over a period of time. The logic behind such a provision is that the beneficiary will become more financially savvy and more mature over time. Incidentally, provisions may be tailored to care for elderly family members or those with other special needs as well.
Bottom Line
Individuals seeking to prevent family infighting, and who want to ensure that their spouses, children and other relatives are properly taken care of after they die would be wise to consider drafting a will. Due to the very legal nature of a will, be sure to consult an attorney prior to drafting or executing the document. An attorney will tailor a plan specific to your circumstances.
The legendary L.A. Laker’s secret behind a successful sports-to-business transition.
Don Yaeger July 2, 2010
Magic Johnson was in the seventh year of his Hall of Fame career when thoughts of his basketball afterlife led him to the office of uber-executive Michael Ovitz, co-founder of Creative Artists Agency, Hollywood’s most powerful agency. Johnson had watched many former athletes attempt entry into the world of business only to fail, and he was hoping for advice that would allow him to chart a different course.
“Michael dropped the newspaper in front of me,” Johnson tells SUCCESS. “He asked, ‘When the paper arrives, what do you read first?’ I told him I opened the sports section.
He looked at me and said, ‘Wrong answer. From here on, if you want to be involved in business, you have to read business.’ I walked in his office 6-foot-9 and proud. I left feeling 5-foot-tall and stunned.”
And thus began the business career of a man who, just 22 years later, in 2009, was hailed by Ebony magazine as one of the most influential black business leaders in America. Built over the past 23 years, Beverly Hills, Calif.-based Magic Johnson Enterprises now owns or operates gyms, movie theaters and other businesses in 89 cities across 21 states.
“I learned a couple of great lessons there with Michael Ovitz,” Johnson says. “The first is that if you want to be successful, you have to be willing to use every connection you’ve got. It is a funny story how that meeting came about. During a Lakers game the season before, I was standing on the sidelines getting ready to pass the ball inbounds. There were two businessmen I respect—[studio executive] Peter Guber and [recording industry executive] Joe Smith—who were sitting there courtside and were huge fans. I looked over and asked, ‘How do I get into business?’ It probably wasn’t the best place to ask, but they could tell I was honestly looking for help, so later they arranged for me to meet Michael Ovitz.
‘Be Ready to Listen’
“The second thing I learned is that if you want someone to be your mentor, you better be ready to listen and be humbled,” Johnson says. “Michael wasn’t sure about working with me because so many athletes think they can move right into business and never take anyone’s advice. I had to prove to him I was serious and that I would listen.”
That meant changing his reading habits, Johnson says, and he immediately started grabbing business magazines, newspapers and books to take with him on the road.
But reading was just the beginning of Magic’s business education. His next big lesson was “listening.” Johnson says his first foray into the world of business taught him what happens to entrepreneurs who aren’t listening to their customers. In 1990, he decided to begin a chain of retail sporting goods stores called Magic 32 that he intended to take nationwide.
To get the business off the ground, he decided to attend a major sporting goods convention and negotiate for products he’d sell at the stores.
“I didn’t ask a single customer what they’d be interested in,” Johnson says. “I went there looking for products I’d be interested in buying. I had to learn that I was not my customer. Actually, I was taught that lesson by what happened after we opened.”
Among the line of products Johnson chose to carry was a series of $1,500 leather jackets. They fit Johnson’s taste, but not the taste of his customers, as evidenced by the fact they were still hanging on the racks when the initial store closed just a year later.
“I’m sure I’ve made bigger business mistakes,” Johnson says, breaking into his trademark grin, “but I can’t think of one.”
Early Lessons
Johnson’s earliest entrepreneurial influences came from his parents in his hometown of Lansing, Mich. “I grew up in the kind of black family that people today worry is disappearing. Even though there were nine of us, we had what we needed— two great parents, food on the table and time for the whole family to be together,” he writes in his 1993 memoir, My Life.
Both parents worked hard; his dad on the night shift at a GM factory as well as second jobs that included pumping gas and running his own trash-hauling business, and his mother in janitorial and cafeteria work. “My parents believed in work—not only for themselves, but for their children, too,” Johnson writes. The kids had assigned chores around the house and had to earn their spending money. “By the time I was 10, I had my own little neighborhood business. I raked leaves, cleaned yards and shoveled snow. With the money I earned, I could go to the movies and buy an occasional record.”
Johnson’s dad, Earvin Johnson Sr., provided other life lessons, too. Through one-on-one basketball games, his father played tough and not always fair. “But that was the point. Dad was teaching me that I wouldn’t always get the calls, that I had to play above the contact,” Johnson writes. “He taught me to win against the odds, and never to quit.”
Johnson’s basketball career included a national championship at Michigan State, five NBA championships with the Los Angeles Lakers and a gold medal with the “Dream Team” at the 1992 Olympics. He played alongside and against some of the NBA’s best players, including Michael Jordan, Larry Bird, Kareem Abdul-Jabbar and John Stockton.
His new teammates are business partners who include Sodexo, T.G.I. Friday’s, Aetna, AMC Theatres, 24 Hour Fitness and Starbucks. He has carved out a niche, becoming the go-to player for companies hoping to expand into the urban marketplace, using the power of his brand in that space to increase the credibility of businesses desiring a part of the pie in what Johnson calls “underserved and ethnically diverse urban communities.”
There are many different reasons why you might want to have a Trust. You might want to avoid probate; provide for minor children; provide for someone too young or who lacks the ability to manage money; avoid paying federal estate taxes; contribute to charity; distribute real property, particularly if it is located in another state; keep property separate; provide for yourself and your care if you become incapacitated and avoid a conservatorship proceeding, maintain privacy; and decrease the possibility of a legal challenge to the way you want your property distributed. If any of these situations apply to you, you should consider using a Trust as part of your estate planning.
Probate is the legal process where a court oversees the payment of debts and distribution of property under a Will. This can be a slow and costly process if the estate is even moderately large and complicated, and all details of the estate are made public as part of the court proceedings. Several states have summary procedures for small estates, but if your estate doesn’t qualify for a summary procedure, you would be a good candidate for a Trust. If you transfer assets to a Trust while you are alive, when you die, the assets belong to the Trust, not to you, so they are not included in probate, but will be distributed in the way you direct in the Trust documents. The process of distribution will be private and confidential.
Minor children can’t inherit property, but require an adult to manage property for them until they reach the legal age of majority in the state where they live. A parent can nominate a guardian for the child’s financial matters in a Will, but the probate court will have the final say on whether to approve the appointment. If you transfer assets to a Trust that is for the benefit for your children while you’re alive, you can name the Trustee(s) and alternate Trustees who will control the Trust when you die. It’s possible for a court to remove a Trustee you have appointed, but only for misbehavior, so you have more control over who will control your children’s assets.
If you leave children assets in a Will, the children receive full control of the assets when they come of legal age. In most states this is 18, and if the assets are large, an 18 year old may not be ready to manage that amount of money. If you set up a Trust, you can control when the young person will receive full control of the assets, such as at age 25 or 30. Some older adults are also unable to manage money well. This may be because of a developmental disability or just because the person lacks money skills. If you want to leave assets to someone like that, you might want to set up a Trust that will control the assets throughout the life of the Beneficiary. People also want to leave money for the care of pets that survive them, and a Trust is a good way to do that.
If your estate is over the minimum amount for paying Federal Estate Tax ($2 million in 2008, $3.5 million in 2009, no tax in 2010, and a $1 million minimum starting in 2011) Trusts can be used to exempt some of your assets from your taxable estate. This can reduce your total estate to an amount below the estate tax minimum. You can also receive tax benefits during your lifetime by setting up a Trust that makes a donation to charity when you die but keeps the income for you while you’re alive.
Probate laws differ from state to state, so to avoid unforeseen results under different laws, if you own real property in different states you can put that property in a Trust while you’re alive so there will be no change when you die. The Trust will continue to own the property, and there will be no reason for the various states to be involved in how the property is distributed.
If you want to make sure that certain property isn’t divided between beneficiaries, which might result in the property being sold, you can put property in separate Trusts and give separate instructions for distribution. That way, it won’t be possible for a court to decide that the property can be divided and/or sold.
If you become incapacitated from old age or some accident or illness, someone will need to take care of your financial affairs for you. By setting up a Trust where another Trustee will take control of your assets if you become incapacitated, you can prevent someone from filing a petition to be named your Conservator. A court will only appoint a Conservator if no other arrangements have been made, so the court is not likely to grant a conservatorship to someone else if you have already made adequate arrangements for your own care. This allows you to choose who you want managing your affairs and allows you to exercise future control in the way you set up the Trust.
In a conservatorship hearing, all of your affairs are made public, including details of your alleged incapacity. Most of us would not want the details of our private lives to be discussed by others in a public courtroom, so a Trust that avoids this is useful. Trusts can also provide privacy about your assets. If you don’t want all the details of your assets and the assets you are passing to others to be made public, you can use a Trust to preserve privacy.
Finally, if you think someone might challenge a Will because they don’t like how you want to leave your property, you can make such a challenge much more difficult by using a Trust instead of a Will. To prove a Will invalid the challenger has to show that you were incompetent at the time the Will was drafted and executed. A Trust isn’t just drafted and executed at one point in time. Assets are often transferred to the Trust over a long period during the person’s lifetime and the Trust may manage those assets for many years before the death of the Grantor. While you must be legally competent at the time you set up a Trust, it is more difficult to prove such a Trust invalid than a Will, since the challenger has to claim that the person was incapacitated not only when the Trust was set up, but during every transaction that the Grantor carried on during the life of the Trust.
law.freeadvice.com
Mitochondria are called the ‘powerhouse of the cell’. Mitochondria contain a number of enzymes and proteins that help in processing carbohydrates and fats obtained from food we eat to release energy. Read on to know about the structure and functions of the organelle.
Be it the beating of the heart or moving of our hands, every action requires energy. This energy is stored in ATP (adenosine triphosphate) molecules that are produced in the mitochondria by the process of oxidative phosphorylation. Although mitochondria are present in every cell, they are found in high concentrations in the muscle cells that require more energy. Though the primary function of mitochondria is to produce energy, they also play an important role in the metabolism and synthesis of certain other substances in the body.
Structure
Mitochondria are rod-shaped structures that are enclosed within two membranes – the outer membrane and the inner membrane. The membranes are made up of phospholipids and proteins. The space in between the two membranes is called the inter-membrane space which has the same composition as the cytoplasm of the cell. However, the protein content in this space differs from that in the cytoplasm. The structure of the various components of mitochondria are as follows:
- Outer Membrane
The outer membrane is smooth unlike the inner membrane and has almost the same amount of phospholipids as proteins. It has a large number of special proteins called porins, that allow molecules of 5000 daltons or less in weight to pass through it. The outer membrane is completely permeable to nutrient molecules, ions, ATP and ADP molecules. - Inner Membrane
The inner membrane is more complex in structure than the outer membrane as it contains the complexes of the electron transport chain and the ATP synthetase complex. It is permeable only to oxygen, carbon dioxide and water. It is made up of a large number of proteins that play an important role in producing ATP, and also helps in regulating transfer of metabolites across the membrane. The inner membrane has infoldings called the cristae that increase the surface area for the complexes and proteins that aid in the production of ATP, the energy rich molecules. - Matrix
The matrix is a complex mixture of enzymes that are important for the synthesis of ATP molecules, special mitochondrial ribosomes, tRNAs and the mitochondrial DNA. Besides these, it has oxygen, carbon dioxide and other recyclable intermediates.
Functions
- The most important function of the mitochondria is to produce energy. The food that we eat is broken into simpler molecules like carbohydrates, fats, etc., in our bodies. These are sent to the mitochondrion where they are further precessed to produce charged molecules that combine with oxygen and produce ATP molecules. This entire process is known as oxidative phosphorylation.
- It is important to maintain proper concentration of calcium ions within the various compartments of the cell. Mitochondria help the cells to achieve this goal by serving as storage tanks of calcium ions.
- Mitochondria helps in the building of certain parts of the blood, and hormones like testosterone and estrogen.
- Mitochondria in the liver cells have enzymes that detoxify ammonia.
Although most of the genetic material of a cell is contained within the nucleus, the mitochondria have their own DNA. They have their own machinery for protein synthesis and reproduce by the process of fission like bacteria do. Due to their independence from the nuclear DNA and similarities with bacteria, it is believed that mitochondria have originated from bacteria by endosymbiosis.
By Debopriya Bose
Selling/Network Marketing
Brenna Fisher May 28, 2010
In its simplest form, direct selling (aka network marketing) is nothing more than one person promoting or selling a product or service directly to another. Today, an endless variety of products are distributed using the direct selling business model, including vitamins, weight-loss aids, cleaning products, clothing, jewelry, home décor, cookware, legal insurance, travel services, financial products, books, toys, educational and motivational products… and the list goes on. If you have an interest in a particular industry, chances are there’s a direct selling company that supplies products in that category.
Rather than paying for massive advertising efforts and retail outlets, direct selling companies rely on an independent sales force to spread the word about them and their products. Many companies have added social media, print and broadcast advertising campaigns, but most advertising is done person to person, face to face… or Facebook to Facebook.
Perks of becoming a distributor include deep discounts on products and compensation for helping the company attract other distributors. Those who develop a network of independent representatives can leverage their time and maximize their earning potential. Not only are they paid for their own sales, they’re paid a percentage of the sales made by members of their organization (or downline). The more people a direct seller brings into the company, the greater his or her earning potential.
Other benefits can include bonuses and prizes for a job well done. These can include luxury travel, fine jewelry, cash or cars. Beyond the tangible rewards, direct sellers gain other benefits, such as communication and sales skills, greater self-confidence and leadership capabilities.
Getting started as a direct selling representative involves signing on with a company and purchasing a startup kit with brochures, access to online resources and product samples. In many cases, free local training, webinars and teleconferences are available to help representatives learn more. Many companies also hold annual conferences where they offer additional training and recognition.
The Bottom Line
You will need to purchase a startup kit and sign an agreement to become part of a direct selling company. To receive full commissions, you may be required to purchase products on a monthly, bimonthly, quarterly or annual basis, depending on the company.
This type of business can be done in as many or as few hours a week as you choose, which makes it ideal as an income supplement or for building up to a certain level of earnings before leaving a full-time job. That said, to earn a substantial regular commission check, you must commit to treating this opportunity as seriously as you would any other job or business endeavor. You are the boss… your hours are flexible, but not optional.
Is It Right for You?
Recommended skill set: People skills, consistency, self-confidence, drive to grow and market business, belief in the product or service you are promoting.
Risks: With some companies, representatives are expected to stock inventory or receive regular shipments of product. If you do not use or sell the products consistently, you could end up with a garage full of boxes. False expectations are one of the greatest risks.
Potential income: Varies greatly (from $0 to $10,000 or more per month), depending on your level of effort, skill and the company’s compensation plan.
Pros and Cons at a Glance
| 1. Minimal investment | 1. No guaranteed income |
| 2. Easy to fit into an already busy schedule | 2. You may have to regularly place orders to receive commissions |
| 3. Residual income | 3. Overcoming misconceptions about the industry |
| 4. Maximum control over your time and income | 4. It may take months to build to a substantial level of income |
| 5. Built-in personal growth opportunities | 5. Products or services without a unique selling position may be difficult to sell |
Oxygen Bottled and Sold for the Everyday Person By Blair Mathis
Takeaways
- Bottled Oxygen is expensive.
- It can alleviate headaches
- It is useful for athletes.
In the 1980′s, people scoffed in the face of bottled water. Water in a bottle? Why pay a dollar for something that can be gotten free from a drinking fountain? Because it was convenient. Bottled water is as common as the air we breath. Will anything surpass it in popularity? Well….A new trend is brewing in America, and that is bottled oxygen. That’s right, oxygen in a bottle. Sure, it’s free all around you, but…these come in different scents and flavors! Not to mention they cost $50 a piece. So, what is bottled oxygen? It is an aerosol canister that is presurized with 90% – 93% pure oxygen, with the option for a scent/flavor addition. This canister comes with either a spray nozzle, a mouth piece, or an air tube for large cans. You take a long deep breath or two, and then seal it up.
These bottles come in varying sizes. Unlike the ones scuba divers use, which are heavy and are strapped to ones back, these cans are smaller and designed for everyday use. They range in size from large with a weight of several pounds, to being ultra-small, and weighing mere ounces. The typical mouth piece is shaped like a mouth guard. Simply insert into mouth, press a button, and breathe deeply. Oxygen-in-a-bottle is not an entirely new idea. In fact, it is quite old. Oxygen bars have existed for quite some time, giving users a few minutes of oxygen to enhance whatever experience the person hopes to enhance. Likewise, divers have used oxygen canisters for breathing, and mountain climbers have used portable oxygen to survive at high altitudes. So what is the appeal for an everyday person who is neither 14,000′+ feet up a mountain or hundreds of feet down below the ocean? One website selling portable oxygen bottles, BetterThanAir.com, says, “Todays breathable oxygen contains less than 22% oxygen. At one time our breathable air contained more than 50% oxygen…We have adapted, but at a cost….” The website claims that by breathing more oxygen than is available in the environment, we can increase energy, reduce muscle aches, prevent the formation of cancer cells due to oxygen deprivation, sleep better, and endure exercise/athletics longer, among other things. Will bottled oxygen do these things? Anyone who has taken a few deep breaths of oxygen will tell you that it will make one feel relaxed and energized. Likewise, for someone who suffers from chronic headaches, bottled oxygen is often used to alleviate them. As for the claims of helping prevent against diseases and cancers, this is something I can neither confirm or disprove. I, personally, shall take that assertion with a grain of salt. While bottled oxygen may be an intriguing novelty, it is an expensive one, 50x the cost of bottled water. With the average canister costing about $50 and offering between 30 – 150 breaths, depending on brand and size, it can be quite expensive to experiment with this novelty.
There is also a slight danger for the average person to inhale pure oxygen. Oxygen toxicity is a possibility, which will lead to lung collapse. However, one would have to inhale many dozens of these bottles in a row for that to happen. Benefits do exist for the everyday person to use these, mainly for times when more oxygen is needed. Marathon runners can surely benefit from a puff or two of 90% oxygen, and the muscles will be able to endure longer. For mountain bikers, back country skiers, or mountaineers who don’t want to carry a 20lb. canister up a mountain, a small 6inch can can be infinitely useful. Also, for someone who is suffering from an asthma attack, deeply breathing pure oxygen can alleviate it. As bottled oxygen becomes more demanded and common, prices are likely to drop, which will make costs of oxygen for climbing and diving more affordable.
Whether these are useful is up to the person using it. If you want to have some handy oxygen around, then it certainly wouldn’t hurt. Just remember not to ‘breathe’ and smoke at the same time.
alexandersink
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