Success Secrets of CEOs:

By Natalie Pace, CEO, NataliePace.com.

The Business Women We Love: Q&A With The Apprentice's Carolyn Kepcher and fellow 2004 Compass Award Winners, Marie Wilson (Co-Founder/President of the White House Project), and Valerie Red-Horse (Founder, Chairman and CEO, Red-Horse Securities, LLC).

From Kiwis to Ikea and The Apprentice, the hottest brands on the planet are crafted in the capable hands and minds of some of the most admired and well-liked women in North America. Ikea North America's President is Pernille Spiers-Lopez. Frieda Caplan, founder and Chairman of Frieda's Inc., introduced kiwis and other exotic fruit to North America. Carolyn Kepcher, star of The Apprentice and Executive Vice President of the Trump Organization, gets nothing but respect from the Donald when she says, "Actually, I couldn't disagree with you more." And get this; Carolyn is not just respectable, intelligent and beautiful. She's also just 35 years old, and she was only 26 when she became the General Manager of Trump Golf Course.

Carolyn Kepcher, star of The Apprentice, with Andrea March and Leslie Grossman, co-founders, Women's Leadership Exchange Photo credit: Leroy Hamilton

What's the secret to their success? Marie Wilson, co-Founder and President of The White House Project and author of Closing the Leadership Gap, has made it her business to research what makes us love certain businesswomen more than others. She sums up the essential qualities of a great businesswoman, saying, "One of the hardest things for women in politics and business is that you have to be tough as nails and warm as toast." Though women are advised to keep crying out of the boardroom, femininity, it turns out, is an asset for women executives, as is humor. Picture Carolyn Kepcher's grin to "the Donald" as she disagrees with him, or Oprah blushing as she interviews Denzel Washington. The businesswomen we love are decidedly female (even when they are gay, like Ellen DeGeneres). They embody beauty, charm, wit and humor, while standing strong in their business, positions and convictions.

Okay, great, you think! I'll practice my jokes and coy grins in the mirror, but how the heck do I get the expansion capital that I need for my business? What's the best online marketing tool? How do I edge out the competition and turn a profit when health care costs and employee taxes eat up 30% of my profits? Why am I stuck at the same revenue plateau and how can I break through to the next level?

The founders of the Women's Leadership Exchange, the organization that awards the Compass Awards and puts together business conferences across the United States, has a mission to answer those questions for women executives and business owners. Last month, on August 3^rd, in Long Beach, California, more than 700 women came together to learn best marketing strategies, how to get venture capital and/or loans to start or expand their business, branding tips and much more. Self-described "serial entrepreneurs" and co-founders of the Women's Leadership Exchange, Andrea March and Leslie Grossman believe that if a woman can build her business to the $750,000 level, she can also reach sales of $25 million or more. The key, according to Grossman and March, is to get out of the office and get the management skills necessary to expand. Toward that end, the WLE has recruited a permanent group of "Growth Gurus" who have distinguished themselves as business owners, corporate leaders, speakers and/or authors to speak around the nation in their conferences.

Speakers at the Long Beach conference included Pernille Spiers-Lopez, president of Ikea North America. Ms. Spiers-Lopez has not only led Ikea to explosive growth in the US, she has also won awards for her worker-friendly policies. Working Mother awarded her their Family Champion Award and singled out Ikea as one of the 100 best companies for working mothers. Other experts included Beth Polish, the founding CFO of iVillage, Frieda Caplan, the woman who changed the way America eats by introducing kiwi, spaghetti squash, mangoes and other exotic fruit and veges to our culture and Maria Contreras-Sweet, the former Secretary of Business, Transportation and Housing for the State of California under Governor Gray Davis. It is hard to imagine a more elite group of power hitters available to business owners for the affordable conference price of just $175.

Though each breakout session was so valuable it was hard to choose which to attend and the keynote speakers were not to be missed, the highlight of the day was the WLE Compass Awards Luncheon. At this luncheon, Compass award winners Carolyn Kepcher, Marie Wilson and Valerie Red-Horse freely shared their success secrets with the audience, with local morning news personality Michaela Pereira moderating. These standout women offered up the essential power tools for the executive toolbox of any woman serious about building her dream career. If you missed the Long Beach Women's Leadership Exchange conference, there are still two other WLE conferences this year. More information on registration can be found at the end of the Compass Awards winners Q&A.

Q&A with Carolyn Kepcher, Marie Wilson and Valerie Red-Horse, with Michaela Pereira asking the questions:

Andrea March, Leslie Grossman, Marie Wilson, Valerie Red-Horse, Carolyn Kepcher, Michaela Pereira and Jennifer Ingram (VP, Marketing OPEN: The Small Business Network from American Express) Photo credit: Leroy Hamilton

Michaela: We know success isn't always pretty. What's one mistake that you'd like to share with the audience.

Carolyn-- We have a project to build several million-dollar homes. Trump had asked me to take over and hire people. I wanted someone local. One woman came in; she had sold homes at $750,000. Our homes start at $2.5 million. She had such energy, and she truly was so impressed by the property. She was local to the area, but she didn't have the price point I was looking for. I interviewed other people who sold $7.5 million in the area, but I took a chance with this woman. A few people downtown criticized my choice. One day, I got the phone call from Donald. It was on the speakerphone, and a good amount of executives were in the office. They questioned my choice. I said, "It is still in the winter months." High season is March or April. We went back and forth, and finally Donald said, "Don't you agree that perhaps she's not the right person for this job." I said, "Actually, I couldn't disagree with you more." He took that in, and said, "We'll see how it goes."

In March, April and May, we had 16 villas and 67 condo units available, starting at $2.5 million. In three months, she [the salesperson I hired] has sold 14 units. It was a gut instinct. Whew!

Michaela: Valerie, have you ever made mistakes? Taken risks? Second-guessed yourself?

Valerie: I changed my approach. When I started the investment bank, I came from the entertainment industry. People told me that the financial business was a big boy's club. They warned that certain men will have the perspective that you can only make movies, and you will be attacked [in the financial arena]. My husband played with the Oakland Raiders. He said, "If you're going to play, you have to play hard." I said, "No, as a woman, I'm tender." I'm now a woman who is known as a ball buster. I've just had to É I haven't taken risks with people's money, but I take risks with my reputation.

Michaela: Marie, you've said that men have an advantage when it comes to doing business. How do you walk that line between being a tough ball buster and possessing the uniquely feminine qualitiesÑsoftness and the ability to communicate?

Marie: I was going to tell you all of my mistakes! I've never done anything that people didn't tell me I'm crazy for doing. One of the hardest things for women in politics and business is that you have to be tough as nails and warm as toast.

We studied the best ads in the country, about how you portray yourself this way. The woman who did it best is Ann Richards [the former governor of Texas]. She's the perfect blend of humor with toughness. It is very difficult. We have to solve this. We haven't reached enough women in Congress and business so that's it's normal. Until we have numbers, you'll be looked at like a woman first.

NataliePace.com Note: As an example of Ann Richards tough humor, she is quoted as describing how to be a good Republican, saying, "You have to believe that the nation's current 8-year prosperity was due to the work of Ronald Regan and George Bush, but yesterday's gasoline prices are all Clinton's fault."

Michaela: Look at the criticism directed toward Teresa Heinz Kerry recently. Martha Stewart, was she made an example of?

Valerie: I agree about critical mass. I'm not going to go into the guilt or innocence on Martha, but do you know how many men do that everyday?

Michaela: Ambition knows no gender, but success does.

Marie: Ambition knows gender. It is still not okay for a woman to be openly ambitious. A part of what we're dealing with is that the cultural ideal of woman is still wife and mother. When you veer from that, you have to have a reason. That is the reason we don't have more women in politics. 38% of men say, "I want to run for office." They wake up, look in the mirror and say, "I want to run for president." (Marie turns to Valerie Red-Horse) "Have you ever considered running for office? You'd be great!" You have to say to women, would you consider this! Carolyn, when you're finished with The Apprentice, we can run you anywhere. Women have to be invited in. That whole idea of ambition is holding women back. Unless we relate [our ambitions] to our children and family, we can't say, "I want. I need. I know."

Michaela: Will I see a female President in my lifetime?

Marie: Absolutely. We are at such a tipping point. In the next election, if we're good at what we do, we'll get two or three women running. In the next ten years, we are going to have a woman President.

Valerie: There are some wonderful men in this room. We want to make it clear. Where women are achieving places in business and politics, there are supportive men. It's not about gender hating and fighting. I want to make that clear.

Wilson: When you work with young women you say, "You have to be for women. Not against men."

Michaela: Back to the personal. I want to know motivation. Is there a mission statement, a mantra, a one driving goal in your life, something that you come back to and say, "Yes, I'm on track."

Valerie: I'm an active member of the Bel Air Presbyterian Church. I keep myself on track if I know that what I'm doing is something that the Lord has in mind to make a difference for my children and my community [Native American]. I saw such a need in my communityÑwith high suicide rates and alcoholism. When you look around and you don't see the government and business providing opportunities, the only path left is to start those paths and opportunities. I look upward to make sure that I'm on the right track outward.

Marie: I watched my mother, who was completely uneducated, who made sure I got an education. I think about her life. I think about her as a feisty girl who stayed alive with no money. If my mother had had one bit of education, she would have been running countries. I appreciate Nell Merlino, who did Count-Me-In, who helped me create Take Your Daughters [and Sons] to Work. That was a miracle. I think what motivates me more than anything else is girls. If I keep focused on them and what is good for them, what they want--whether to be president of their own lives or the dreams they have--if I check with the girls and listen to them, that's it.

Michaela: Carolyn, what do you come back to to keep your compass focused north?

Carolyn: My children. I want them to look back and say, "This is my momma. Look at what she accomplished." Before children, I started out young in the business field. Between the ages of 15 and 25, I had a variety of bosses and managers. In my early to mid 20s, I was faced with two different managers. One managed by the seat of his pants, and didn't give directions to his staff. That bothered me. Other managers I've had managed by fear instead of motivation. As an employee, motivation goes down. Everyone is afraid to think for themselves. They don't want to go to work. This truly bothered me. I became General Manager of Trump Golf Course when I was 26. I wanted to motivate staff and make them feel important. I have a big staff now, but it started with 30-50 people. It's about motivation, leadership and respect. Now I have 250 on staff, with 40 people whom I look to, whom I trust in the world. That's my biggest accomplishment.

Michaela: What do you think are the key ingredients you bring to the table?

Carolyn: I think listening is huge. I think not enough managers listen. I enjoy people's comments. Not enough people give credit where credit is due. If someone on my team fouls, I foul. We hire people to replace us because we are only going higher.

Valerie: I think having four children, 6-19, I've learned to be honest and to be a disciplinarian with love. Indian nations are actual governments. I have to come in as a financial advisor and, unlike non-Indian folks, I don't come in with a false sense that "You are sacred." We need to shape up with social reform. I bring that communication, that relationship of honesty, talking about realistic situations.

Michaela: Being real, that's an asset.

Marie: This country is hungry for authentic people. That is huge. People think that [leaders like] Shirley Chisholm do things out of courage. It's more than that. You do things despite the fact that you're terrified. I wanted to establish micro-enterprises for low-income people. Everyone said, "You will marginalize low-income women." I said, "They're starving." They said, "Low -income can never do a business." People from the Women's Organization didn't speak to me about this project. Going beyond your community, and being courageous. I love what I do. Have passion and move through fear. These are hard, but good things.

Michaela: One last question. Give us one or two other women in your life who have been significant forces to get you where you are today.

Carolyn: My mother, without a doubt. She was a mother of 4 children. She stayed home to raise us until the last one was in school. She is now an executive. She is semi-retired. She never stops. She'd come home late. She'd put her time in. She would come home and cry on my grandmother's shoulder. We've all done that, but don't do it at work! The 2^nd person is Donald Trump's personal assistant, Norma, who has been with him for 30 years. She has pushed me and she has saved me at times. There were times when I wanted to give up. I'd call up Norma and say, "I'm done." She'd say, "Don't let them knock you down." She'd give me a motivational speech.

Valerie: My mother and oldest daughter. In the Indian community, life isn't linear. It is a circle of life. My mother is 84. She's all natural and was instrumental in starting my natural hair care line. She's healthy and full of energy. My oldest daughter is 19. We had major issues when she was 17. She just finished her first year at Stanford. I read her essay and it was all about how she wanted to be like her mom. I cried, especially when I got the bill from Stanford! Some of our mentors are so close to home that you don't appreciate them.

Marie: I'm supported by a lot of women! I mean we fight, but mostly I get a lot of support. It is wonderful when a woman in the top of your field protects you. The President of the Ford Foundation, Susan V. Berresford, has stood up for me. She's such an ally of mine. My two daughters are quite wonderful. They are quick to tell me when I'm wrong. They are also very moving. Sometimes they are my biggest critics, but watch out if you come after me! Having kids who love you is the best thing in life.

If you missed the Long Beach, CA. conference, you can still take advantage of the two more conferences in 2004 - Atlanta on Sept. 22nd

and New York City on Nov. 12th. Go to www.WomensLeadershipExchange.com. Speakers include Carolyn Kepcher, Jane Fonda, Cicely Tyson and other respected female leaders. Don't miss it! The information you receive could be just the ticket to explosive expansion in your business. At minimum, you'll have a very inspiring day, networking with other dynamic business leaders, and yes, there are a few brave, wonderful men milling around.

EASY MONEY:

By Natalie Pace, CEO, NataliePace.com.

A Baker's Dozen Ways to Make Money More Fun.

Natalie Pace, CEO, NataliePace.com

This month, I've heard more complaints about money! While all of us want to get rich quick, almost no one wants to open his or her 401Kstatements! And the bills! Piles and piles of bills each month, which become a mountain of paper to sort for days at the end of the year. While getting surly, ripping envelopes and snarling at your mate only makes things much worse, that is what comes very natural when you don't have a system. Frustration is never pretty.

Here's the good news. Getting a system really makes things so much easier that you might actually find yourself ENJOYING bill paying and monitoring the investments you own. Further, the tips below do not require tons of organizing time and money. You will not have to spend hours boring yourself to tears with flow charts and reading up on systems theories. Take ten minutes to read this list. Buy a few folders. Consider getting a filing cabinet. Before you know it, you may find yourself falling in love with finances and kissing your lover spontaneously when the brokerage statements arrive!

The Stock Market Ostriches
"I hate stocks! I'll never learn about them. I don't want to look at charts and a bunch of words that I really don't understand. I give up!" This was a message we received at NataliePace.com last week from a frustrated investor.

Giving up doesn't mean that you aren't still invested in the stock market. It likely just means that you'll continue to lose money on every dollar that you put in your retirement plan. Since January 2000, putting money in your 401k can mean cutting every dollar in half. NASDAQ is still down -55%, S&P500 is off -25%, the Dow Jones Industrials are under -10%, Nortel is still in negative territory at -100%. The Toronto Stock Exchange is off -2.8%. Over 50% of Americans are invested in the stock marketÑmost through their retirement plan. So, if you are an ostrich, sticking your head in the sand instead of figuring out a more profitable plan for your future, know that when you finally pull your head out, your retirement account may well have blown away in the sand storm.

If you aren't educating yourself, pruning the losers out of your portfolio and taking your profits after mini bull runs, then most likely your portfolio is still losing money, as it has been since January of 2000 (with the exception of 2003's outstanding year). The Roaring 90s are over. Most sophisticated market minds are estimating a conservative 6-8% annual return in the stock markets (considering dividends). Bonds were the worst performing asset in the second quarter of 2004, producing negative returns. Alan Greenspan is speaking before Congress on whether or not the real estate bubble is ready to pop. Where is your money safe?

Below are thirteen easy tips that will improve the performance of your portfolio. Trust me, gains and profits make monthly statements a lot more fun to look at! And there are smart investors out there who are improving their portfolio performance by picking good stocks and being selective about their buy-in and profit-taking strategies. You do not have to add a lot of risk to outperform the markets. You just need to start educating yourself.

1. Meet with your broker twice a year. First of all, you want to make sure that you keep your portfolio diversified according to a carefully laid out asset distribution plan. If one asset class has had a great year, take some profits and redistribute the money according to your formula. If another asset class is entering a downturn (think bonds), trim back your exposure BEFORE you lose the money. Tips: January is, historically, the top performing month for stocks, while September is typically the worst performing month. These may be the best months for your semi-annual broker meeting.
2. Diversify your assets! A good rule of thumb is to have the same percentage as your age in a safe asset class. Bonds are not a safe asset class in a rising interest rate environment. Stocks are never a safe asset class. Cash, CDs and savings are relatively safe, except in the case of fire, theft and Armageddon (in which case you'll have much more important things to worry about).
3. Trim back on bonds and bond funds. In a rising interest rates environment, bond values go down and can turn negative. As Pete Colhoun says, "Bond values go down if interest rates rise, and one must be alive at the maturity date to get face value." For more information on how and why bonds were the worst performing asset class in the second quarter of this year, read Paul Woods' article, "Global Gas and Summer Heat," from NataliePace.com issue 51.
4. September BACK TO SCHOOL Stock Sale. The markets are down. Fuel prices are skyrocketing. Terrorism alerts continue to be high. The natural feeling is PANIC! You might be tempted to sell everything (for a loss) and head for the hills. Here is where you can take comfort in some statistics. September is typically the worst performing month of the year. Trading volume (the amount of people buying and selling) goes down during the SUMMER DOLDRUMS while everyone is on vacation. Think of September as a great time to pick up companies you like at a bargain. (Yes, September is a great month for one of your semi-annual broker meetings!) See below for a chart of market returns by month.
5. January profit taking. January is the top-performing month of the year, and a great time to do your profit taking. Investors who took their profits last January (2004) are pretty happy about it. 2003 was a great performing year. Nortel advanced +325%. TSE + 24%. NASDAQ +50%. S&P500 and Dow Jones were up 25% and 22% respectively. Investors who "let it ride" have seen some of their gains disappear. Nortel took a haircut of 250%. NASDAQ has lost 8% since the beginning of the year. Additionally, when there has been a good run-up in stocks (or any other asset class), if you don't take some profits and realign your portfolio, you have more money at risk in one asset class than you've planned for. Your best protection against market corrections is to realign your portfolio regularly and be sure to lock in some of your profits!
6. Pick some individual stocks. In addition to what you have on autopilotÑsay payroll deductions that roll into your 401KÑtake a little money to learn and play in more risky maneuvers. You don't want your entire stock portfolio to be individual stocks if you have never picked stocks before, but it is a good idea to take some money and start making your own stock investments, so that you start learning about the market fundamentals. Limit that investment to money you are willing to lose. (This is your learning experience.) In the beginning, find a stock-picking guru and invest in the companies s/he recommends. Pick the companies from their list that make the most sense to you as a consumer. Stock picking gurus include Louis Navallier, the Motley Fools, NataliePace.com and Investor's Business Daily, to name a few. As you follow their guidance and wisdom, you'll gain enough knowledge to start venturing out with stock picks of your own.
7. Dinner with friends. An investment club will help you to start building a new income stream AND improve your social life at the same time. There are a few tricks to starting a club. You can order an investment club startup kit with NataliePace.com that will save you lots of time and money. (If you set up the wrong kind of partnership, you'll pay hundreds of unnecessary taxes. The kit will help you avoid that.) One big tip: start the club with people whom you respect and would love to hang out with more. Call 866.NataliePace.com for more information.
8. NEVER USE CASH! The best tip I ever received from any financial professional was to use credit cards for all purchases. (SHOPAHOLICS get professional help and get on this program because this system saves days off of financial organization!) Credit card companies, once you are gold status or above, send you annual statements that are organized by category! They do all of the accounting organizational work for you, making your tally for the accountant a breeze! Additionally, you can earn points toward airfare and vacations. Not only will you save time, but you'll also save money and REWARD yourself at the same time!
9. File folders. Take five minutes to label file folders. Insert credit card statements once you've looked them over for errors. Insert bank statements in a different file. File utilities and other statements in a separate file. Remember, you shouldn't have to look at any statements other than your credit card and bank statements at the end of the year if you've paid all of your bills and made all purchases by credit card. This saves DAYS, perhaps even weeks, of your time!
10. Educate yourself! Start with Peter Lynch's books. To follow are three. Amazon and Overstock have them for under $12.00. One Up On Wall Street: How to Use what You Already Know to Make Money in the Market. Beating the Street. Learn to Earn: A Beginner's Guide to the Basics of Investing and Business.
11. Get a fixed rate on your mortgage. Interest rates are the lowest that they've been in 40 years, but they are on the rise. Greenspan has hinted that he will be aggressive about raising rates if inflation warrants it. Lock in your low rate now. It will save you thousands of dollars over the next few years.
12. Consider a home equity loan. If you are near retirement, it may be far more advantageous for you to ignore this one, unless you have credit card debt that you are paying off at a high interest rate. If you are employed and under 50, money right now can be borrowed for almost free. Freeing up some cash could help you in many ways. Most importantly, liquidity allows you to invest should a fantastic buying opportunity come along. It might allow you to expand your business or pay down credit card debt. Don't be in a hurry to invest the money, until you figure out a solid plan that has a high probability of good returns. Oftentimes that means waiting for a great buying opportunity. Most importantly, don't risk your cash on something that you don't know or understand! Don't trust hot tips. As Peter Lynch says, "Investing without research is like playing stud poker and never looking at the cards."
13. Ditch your SUV! Here's a new flash. Gas and oil prices are not expected to go down anytime soon because supply is limited and China has begun consuming like there is no tomorrow. You can cut your gas bill IN HALF by giving up your SUV and going for an economy or hybrid car. Better yet! Going economy these days doesn't mean giving up style. BMW, Ford and Volvo have cars that have almost zero emissions and are great on gas. For a list of "green" cars that will cut your gas bill in half, click here.
    Sting and other stars went to the Oscars in a Toyota Prius, courtesy of Global Green USA's Green Cars Red Carpets Campaign. Photo courtesy of: Www.globalgreen.org

Monthly Market returns:

Monthly returns from March 1971 through October 2003.
Data provided by Odyssey Advisors.

So, friends, in short we're saying read a little. Meet with your broker twice a year. Put everything on credit card and stop using cash. Write some words on a few file folders. Take the plunge and buy stock in at least one company (in September), so that you can start educating yourself about the seasons of the market and how to buy companies at a good value and sell the stock for a profit. (We highly recommend buying stock in a company that you know, understand and love their product and/or service. This will increase your odds of success tremendously.) Ditch your gas-guzzling car! None of these recommended changes require days of filing torture or deciphering charts or watching financial news 24/7. Starting on a new path of planned prosperity and disciplined abundance is truly as easy as making these few, simple adjustments. As your assets grow, you will need to expand the system, but by that time you'll be so thrilled with your financial success that you'll actually ENJOY finding new ways to count all of your money.

Yes, part of the problem nowÑthe main reason you avoid your bills and financial statements--is that you think of those pieces of paper as BAD NEWS. Things definitely change when your financial statements are bringing GREAT NEWS about how hard your money is working for you, while you are off vacationing on all of those mileage points you've accrued.

Invest in your mind and watch your assets grow.

To your prosperity.

Natalie Pace, CEO, NataliePace.com

For a limited time only, Natalie Pace is making herself available for private abundance coaching sessions. Members receive half off of her normal rate (value: $600, members pay only $300/hour.) Whether you want to know the Success Secrets of CEOs, market trends or the Investment Strategies of Billionaires, Natalie is up to date on all of the latest. She is not a broker, but is a successful investor, a respected television and media financial commentator and an experienced executive. Call 866.NataliePace.com or email npace@NataliePace.com to book your private consultation (and start on your path to financial freedom) NOW.

LIVING WEALTHY:

Your chance to have four seasoned financial advisors give you a personal money makeover. In this issue, a burned out corporate executive wants off the treadmillÉ before her health crashes.

Carista Luminare-Rosen, Ph.D.,( Educational Director of Inner Securities and Holistic Wealth Consultant, Stu Zimmerman, Chairman & CEO, Inner Securities, Gregory Wendt, CFP® Money Manager and Certified Financial Planner® and Judith Green, Mortgage and Real Estate Financial Advisor, offer strategies for Jane Dough, a divorced single mother, to start on her path toward financial freedom and to get off the treadmill of feeling drained from "working so hard all of the time."

Profile of this month's LIVING WEALTHY CANDIDATE: Jane Dough (not her real name).

Name- Jane Dough
Age - 43
Married- Divorced
Children - 2 teenagers, 13 and 14
Profession - Corporate Executive
Annual Income - $150,000 plus bonus  
Net Worth- $545, 000
Asset Allocation ( mutual funds, annuities, bonds, stocks, 401-K, IRA accounts) -diversified in 7 mutual funds, 1 bond fund, an annuity, plus a 401-K Plan with $123,000.
One Year Life Goal - After being refreshed from at least a year off from work,, I want to become a successful private consultant.
Five Year Life Goal- Married to a wealthy man where working is an option.
Ten Year Life Goal- Kids have graduated from college without any financial burden on me.
Deepest Heart's Desires - I want relief from feeling so drained--working so hard all my life.
Greatest Fear/Insecurity about Money - I will have to work all my life at the expense of my health.

Worn Out With No Support or End in Sight. Jane, in her own wordsÉ
I am a corporate executive, and I am burned out after over two decades of being a single working mother and working beyond what anyone would consider healthy. I am exhausted. I am scared to leave my job because I am afraid I will not be able to get back into the work force at the same level. I fear I will have to live off my capital and use it to send my two teenagers through college and not have any excess money to build my retirement fund or enjoy life. I need a big break from working.

Jane's Living Wealthy Question:
Can you help me to measure the risks and rewards associated with leaving my job and taking an indefinite break without damaging my finances?

Dear Jane,

Thank you for sharing your challenges about balancing your work commitments and health concerns, which is a life dilemma shared by so many working professionals. Here are four perspectives offered by our - Living Wealthy Team.

Carista offers constructive, emotional/attitude changes:
It takes a lot of courage to consider leaving your job after so many years of basing your sense of security and wealth on your financial assets and professional achievements. Have you considered that investing in restoring your whole health is building an "inner wealth" asset that is priceless and will improve your quality of life equal to your true weight in gold? By restoring life balance, you will create more inner resources to generate outer wealth in the future.

It sounds like you are feeling a lot of fear in making this life change, and your being able to articulate your anxieties is the first step in transforming them. In our Inner Securities and Infinite Wealth approach, we have found that becoming more aware of your insecurities, fears and limiting beliefs about money actually opens up greater possibilities to create the life of your dreams.

Specifically, consider listing 3 specific fears/insecurities that you feel are high risks in leaving your job. For instance: "If I leave my job, I will lose all my money and have to take a crummy, low-paying job if I'm not homeless by then."

After writing these down, ask yourself, "Are they true?" If so, write down what each of those fears needs to feel safer to take the risks to make your desired life changes. If the fears are unfounded, are you willing to let them go?

Now, write down 3 rewards that you feel you will benefit from by leaving your job. For example, "If I leave my job, I will have time and energy to renew my creative passions and rise like a phoenix out of the ashesÉ and feel like a million bucks while making an even better career for myself as well. "

Do the rewards have equal value or more than the financial security you are risking? Consider writing a paragraph describing why your health care is becoming such an important investment in your wealth management. I wish you vital health renewal to boost your lifelong wealth.

Carista Luminare-Rosen, Ph.D., Director of Education, Inner Securities, Inc. She can be reached at Carista@Innersecurities.com or visit the website www.innersecurities.com.

Stu offers career advice that keeps Jane's income flowing:
Jane, our goal is to help you live the life your heart desires, right here and now. First things first. Let's prioritize your life goals and start with the one that is most immediate and heartfelt: your need to revitalize your energy. Without life force, you are unable to fully appreciate your life.

It sounds like you need some personal down time from work. Does it need to be "all or nothing?" Take some time alone and self-reflect on what you really want and need right now. Consider all the "win-win" possibilities, because by being burned out, you probably aren't as engaged or productive at work as you could be. Supervisors and colleagues have a way of detecting your state of being.

Talk to your immediate supervisor. Share your appreciation for all the rewards you have enjoyed through your tenure at the company. Then, speak your truth compassionately, and let them know what you need and find out what they need. Maybe you can negotiate a sabbatical or leave of absence with or without pay. Or, perhaps, as you know the company so intimately, you can create a consulting arrangement on a part-time basis so you don't have to go a full year without pay. Once you are clear on what you really want, you are so much more likely to be living it.

Stu Zimmerman, Chairman & CEO, Inner Securities. Stu can be reached at Stu@innersecurities.com or visit the website www.innersecurities.com

Greg offers a financial planning perspective:
Jane, the first thing to consider is to organize your goals and identify them in the order of

priorities along the lines of the suggestions that you received from Carista and Stu. Once you are clear about what is most important to you, start quantifying the amount of money it will cost to fund your desired life path. Think of it as a "financial roadmap" of the next 5-10 years for the directions that seem to be the clearest for you.

Here are some suggestions to get you started in the process. They may help you find clarity about what decisions are the most sensible to you as you embark on this journey.

(1)   Prepare a budget for what you are spending now and use that as a base of what you estimate you may be spending over the next 5-10 years.

(2) If you identify financial constraints, evaluate if you are able to adjust your spending habits and lifestyle to achieve your goals. Brainstorm different ways to either maintain income while achieving your priorities, or maybe you can find creative ways to reduce your spending.

(3)   Regarding College Funding for your kids. Make sure that this goal is in alignment with your other priorities. Keep in mind that beyond you writing a check, there are many ways to pay your child's education: there are grants, scholarships, student loans and loans for parents. Additionally, your kids can work through college to help bring in extra money.

(4) You can begin to re-evaluate your investment portfolio only after you have clarified your plans. Until you know what you need your money to do for you, how can you know how to invest it? As a general rule of thumb, money you need to spend in the next 7-10 years should not be in long term investments that can drop--like the stocks, stock mutual funds or long-term bonds. . After you have a better sense of your financial plans for the next 10 years, the question of how your investments should be allocated and managed will be easier to answer.

(5) As there are many details and options available to you, going through these steps are just the beginning of your money makeover process. Use professional feedback and advice about all the issues you are facing. Seeking the advice of an experienced and caring financial advisor can provide you a wealth of information and much needed perspective.

Gregory Wendt, CFP, www.gregwendt.com, (310)227-8050 X 122
Comprehensive Financial Planning
Investment Portfolio Management
Socially and Environmentally Responsible Investing

Judith gives a real estate perspective:
Jane, you don't mention whether you rent or own your home. While savings and budgeting are valuable money tools, many people overlook the contribution a house makes to their overall asset picture. In 1998, statistics from the Harvard University Center for Housing revealed that homeowners age 55+ had median net worth of $177,400, with $80,000 in home equity, whereas renters had median net worth of $5500, with, of course, zero home equity.

If you presently rent, consider shifting that rent money into house payment money. While there is no guarantee of home appreciation (although house values in some areas of the country have increased more than 25% just in the past year), you are guaranteed to NOT have appreciation working for you as a renter. Mortgage lenders understand this dynamic, and have no-money-down strategies, so that you don't even need to tap your liquid resources for a down payment. You can then budget against your existing cash reserve if you choose to take time off.

If you continue to work, you have the tax write-off of your mortgage interest--which is likely the equivalent of your non-deductible rent payment. Consider these advantages as you project your financial life into the next five years, and note that the house might grow the money to replenish the cost of your time out of the job market.

Judith Green, a mortgage and real estate financial advisor, specializes in problem solving for clients with more complex or non-traditional lending and credit issues. She can be reached for comments or to request a consultation at createmoney123@netzero.com.

If you want to be considered as a candidate for this Living Wealthy column, go to www.innersecurities.com and click on "LIVING WEALTHY."  Fill out the "Living Wealthy Profile" and "IS Quiz" and return to wealth@innersecurities.com.

To experience the power of Living Wealthy in person, join Stu Zimmerman and Carista Luminare-Rosen in Los Angeles, September 18 and 19, for a dynamic weekend intensive, 'Your Business, Money and Inner Security." For more information , visit www.innersecurities.com or call 707-425-2360.

Stock Report Card.

By Natalie Pace, CEO, NataliePace.com.

Chip Makers. Ante up and cash in, but should you bet on Intel or Advanced Micro Devices?

Robert Noyce Building, Intel's Santa Clara Headquarters

If you missed the incredible buy-in opportunity of October 2002, when Intel was trading at less than $11/share, July's semiconductor sell-off may be the next best buy-in opportunity for your favorite semiconductor. The sector got the wind knocked out of it in July, during this year's summer doldrums, when Intel reported that inventories of unsold and unfinished chips were stockpiling more than anticipated. While Intel's CFO, Andy Bryant admits that "it will take [Intel] the rest of the year to work through" their inventory issues, he's optimistic about the overall prospects. Speaking on CNBC on July 13, 2004, Mr. Bryant said, "We've seen worldwide sales come in right where you expect it. At this point we see nothing that concerns us about the second half."

Sellers, however, punished Intel on the news. Intel's price dropped more than 10% in July, knocking off $18 billion of Intel's market value, according to Reuters. Intel is trading 35% off from its January 2004 high of $34.60.

Just how low can semiconductors go?
The chip industry has a well-established seasonal trend. Summer heat and vacations cool orders, while back-to-school, year-end corporate spending and holiday shopping launch sales to the moon. In August, iSuppli Corporation (an independent research company) reported that chip inventories had ballooned to $827 million, from just $12 million in May. Intel's stockpile is at 90 days, whereas their normal inventory build is just 65 days. Three years ago, ballooned inventories nearly wiped out the industry, and, as evidenced by the sector sell-off mid-July, skittish investors have their radars up for warning signs. But is the stockpile as bad as it seems this time around? Will year-end spending by corporations, back-to-school buying by consumers and explosive demand in China and India eat up the surplus and more in the seasonally strong last quarter of the year?

If you believe Mr. Bryant, all works out in the mix by year's end, but Merrill Lynch cut Intel's rating to "neutral" from "buy." Smith Barney analysts, Glen S.P. Yeung and Craig A. Ellis, had "hoped for a [semiconductor] rally in second half 2004," but are less optimistic now, given the Intel inventory builds." NataliePace.com favorite analyst, Tobias Levkovich, Chief Analyst for Smith Barney, is not positive on semiconductor stocks, although he admits that their valuations have become more attractive in the recent panic sell-off. He's not bullish on a 4^th quarter rally, the seasonal time for semiconductors. In his view, it is critical that Intel and other chip companies scale back on 2005 capital spending. John Lau, Banc of America Securities analyst, believes that semiconductor prices will go lower in the next few months, saying, "Although stock prices have come down significantly and currently appear to be inexpensive, we would not be aggressive buyers yet given that estimates for 2005 will likely be revised downward over the next few months."

Many analysts are weighing in conservative on the semiconductor sector with a "wait and see" approach, but Gartner Inc., a research firm, forecasts a 27.4% increase in 2004 global chip revenues to about $226 billion, up from a February forecast of $217 billion. Spokespersons for Gartner aren't concerned about the chip surplus in the current climate of increasing demand, saying, "Had the increased inventory been accompanied by a flat or even falling semiconductor market, it would have been of grave concern. In a rising market, increasing inventory levels are normal." Seasonal demand, according to Gartner, is expected to rise at the end of the 3^rd quarter and start of the 4^th quarter. Additionally, in a recent interview with American Way magazine, Dell Computers CEO, Kevin Rollins, reports that PC sales are "torrid" with consumers worldwide and that businesses are expected to upgrade to support new technology and to ensure that productivity gains continue. "If you look at worldwide growth for the past five quarters, it's been growing, and in the fourth quarter at a pretty torrid pace. That comes from consumer upgrades, which tells you that consumers are not doneÉ The whole digital home will continue to evolve. And so this spurt is not the last one, either," according to Mr. Rollins.

Ante Up on Chips NOW
Looking back through time, the Santa Rally (November, December and January) is almost flawless for chipmakers, even during the years of overproduction and stockpiled inventories. Investors who buy semiconductors at a low price in October and sell at a high between November and late January have been consistently rewarded with gains up to and beyond 45%. Even in 2000, a terrible year for technology stocks, investors who bought low in the fall could have cashed out for 25% gains in the first quarter of 2001.

This year with capital spending back and consumer spending still strong on the back of healthy housing markets, low interest rates, increasing employment and strengthened corporate balance sheets, back-to-school and year-end computer and technology equipment buying is expected to be outstanding. With the proliferation of broadband, both businesses and individuals have a powerful need to upgrade their computers to keep up with the power and speed of the high-speed connections.

As analysts tend to be conservative and report on news AFTER it hits the earnings reports, NataliePace.com is in the camp with the insiders (Dell Computers) and the researchers on this conundrum. If it looks like a chip rally, smells like a chip rally and everyone is reporting "torrid" PC sales, you can bet now, without too much risk, that the analysts will be pleasantly surprised at the rapid inventory correction and that investors will buy in on the news. Be there first, and be in line for the best gains.

Stars in the Chip Galaxy
Everyone knows Intel, but Advanced Micro Devices has been the happy archrival of late, as Intel stumbles over delays of key new chip releases and an over-inventory. AMD's market capitalization of $4.285 B is almost directly in line with its annual sales, whereas Intel's market capitalization of $146.6 B, compared to $32.71 B in annual sales, leaves little room for investor disappointment. Certainly, there is little probability that a stable giant like Intel will continue to disappoint investors in a climate of rising demand, but AMD seems positioned for more aggressive growth. Why?

BUYING OPPORTUNITY
AMD has been winning awards and opinions in the tech world, including Windows and SQL Server Magazine's Best of TechEd and PC World's Product of the Year. CNBC Contrarian Bill Fleckenstein believes that AMD has "swooped Intel on the high end." (7.5.04). 2Q 2004 sales were up 96% from 2Q 2003, to $1.236 billion with income of $45 million, from $645 million and a net loss of $140 million one year ago. That kind of growth is on par with the exploding biotech, energy and metals sectors, all of which have seen their share prices triple in the last year. In fact, the biggest reason that AMD is such a good buy right now is because its share price has been dragged down with the rest of the semiconductor sector. Otherwise, the news coming from AMD would mean share price gains, and should as the news on the sector as a whole turns positive.

Bottom Line: NOW is an excellent time to buy into Advanced Micro Devices. Look to take at least some of your profits in the first quarter of 2005. It's not that we don't believe in the company's long-term appeal. The markets over the next few years are predicted to stay in the same trading range, with extremely volatile peaks and valleys. Short-term investors stand to gain a lot more than long-term investors in that climate. Savvy investors will seal in profits, while still keeping a longer-term investment in the company.

CLICK HERE TO ACCESS THE SEMICONDUCTOR REPORT CARD!

Which Mutual Fund is Right For My Portfolio?

Paul Woods, CEO, Odyssey Advisors, tells you which funds yield the highest reward with the lowest risk.

By Paul Woods, CEO, Odyssey Advisors, www.OdysseyAdvisors.com

Closed-end funds have fewer hidden fees than mutual funds. Now you can diversify without the sales charges!

Closed-end Funds: What Are They?
A closed-end fund is a publicly traded investment company registered under the SEC Investment Company Act of 1940. Capital is raised through an initial public offering, and the proceeds are then invested in securities that meet the investment objectives in the fund's charter. The shares trade on the New York Stock Exchange or American Stock Exchange just like stocks.

A closed-end fund has a fixed pool of assets and a fixed number of outstanding shares. The price of the fund fluctuates according to market demand and may not necessarily reflect the underlying net asset value. The difference between these and the mutual funds being sold by brokers is that mutual funds are open to new investment and trade at a net asset value.

Another big difference is that brokers generally like to be paid for selling mutual funds. This sales charge is also known as a load, and it is most commonly 5.5% of the net asset value. This means that your mutual fund actually has to appreciate by 5.8% for you to break even, which is the return on 94.5 cents getting back to $1. What your broker may not tell you is there's little reason to pay this sales charge, as there are plenty of cheaper alternatives that are just as good if not better.

There are also no-load mutual funds, which are funds without the sales charge. However, that doesn't mean they have no fees. The managers of all mutual funds and closed-end funds also like to be paid, so there are usually administrative expenses and management fees taken out. These combined charges are known as the expense ratio, and are usually a bit over 1% annually. No-load funds, because they don't carry a sales charge, usually make up for it with a higher expense ratio.

Closed-end funds are comparable to no-load funds without the minimum investment or extra paperwork. For smaller investors looking for diversification, these are ideal. They have no sales charges, although investors will pay a commission identical to buying a stock. Expense ratios tend to be similar to no-load funds. This is a painless way for anyone with a brokerage account to diversify a small amount of money while keeping expenses under control.

Market Index Funds
Investors should have at least one fund of larger companies or "blue chips". Funds that mirror the broad stock market averages are a good choice. To help decide which one, consider the following:

This is an easy one. The Dow Jones Industrials have produced a higher return with less risk than their counterparts since 1972. The appropriate closed-end fund is the Diamonds Trust (symbol DIA) that mirrors the Dow Industrials.

Market Segments
We've recently received information from Ibbotson Associates on returns produced by various sectors of the stock market since 1972. The following sectors have produced higher returns than the broad stock market averages during this period:

Capitalization refers to a company's shares outstanding multiplied by the stock price. In other words, it's the total value of all shares outstanding. In the stock market, small companies consistently produce higher returns than larger companies over extended time periods, so the smaller the better.

For reference, value stocks are companies with low valuations that are undervalued relative to the underling assets. Growth stocks are companies whose earnings are growing at above-average rates. Value stocks usually benefit from periods of higher inflation while growth investors usually do better when companies have trouble raising prices. Inflation has been above average since 1972 and is also coming back now, so we'd tilt toward the value camp in our funds selection.

Closed-end funds that correspond to the above categories includeÉ

Vanguard Small Cap Value (symbol VBR)
Royce Micro-Cap Trust (symbol RMT)
Royce Value Trust (symbol RVT)
Neuberger Berman Real Estate Securities (symbol NRO)
Vanguard Small Cap Growth (symbol VBK)

What to Avoid
Ever wonder why banks and trust companies have trouble producing even average returns? They're stuck in the wrong part of the market. Decades ago, they tied their fortunes to large growth stocks and bureaucratic inertia has done the rest. These have produced the worst return over time of any major segment of the equity market while also showing above-average risk.

Foreign stocks are another segment to avoid. They're touted as a great diversification tool, but reality is that foreign stock markets mostly move with the U.S.. Returns over time are dismal, and risk is among the highest of any equity category. The real reason they're still being touted is that their management fees tend to be significantly higher. With a combination of high fees, high risk, and lousy returns, these are probably the worst choice available.

NataliePace.com note: Large Cap Growth and Foreign Stocks, as shown above, have the worst returns and the highest risk of any class listed in this article.

Conclusion
Closed-end funds offer the ability to diversify relatively small pools of money without paying sales charges or excessive fees. Since they're listed on the NYSE and ASE, the ideal way to invest would be to open an account with a discount broker in order to minimize commissions. For more information on these, go to http://www.cefa.com/default.asp.

Information has been obtained from sources believed to be reliable, however Odyssey Advisors LLC does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this material and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.

High Flying Success:

4 Tips on How to Wow Your Customers Even When Times are Rough.

By Kim Castle, Co-founder BrandUª

When building a business as a brand it's important to avoid a myopic view. For many entrepreneurs who are just starting out or have been flying solo for any amount of years, the future is often inconceivable when they are struggling to grow. There are four things you should do now that will enable your company to have a big future.

When working with entrepreneurs and businesses of all sizes, I often stress the need to create a brand experience for the customer from every point of contact. Never was this point hit home so beautifully... and so fun than on a recent business trip.

On a recent trip from Los Angeles to Orlando I experienced a flight of fancy beyond anything I have ever felt before. When I booked through Delta airlines, I was issued a ticket on a company I had not heard of before, called Song. I thought it odd but nothing beyond that. That all changed from the moment I got to the gate.

Waiting for the plane to board, I sensed a light buzz flowing thorough people at the gate. They were actually thrilled to be waiting. I thought that happy gas had been pumped into just this section because across from us was another group on another airline waiting to board who were not feeling the same thing. Then the pre-boarding began.

A male Latin voice came over the intercom and began the boarding withÉ a jokeÑ a different experience. He then went on to announce the boarding procedure with so much joy that I couldn't wait to get in line. I wasn't even in a hurry to get on the plane. When I got to the door, the woman taking my ticket greeted me as if I arrived at her home for a partyÑ a very different experience.

I walked on the plane and heard upbeat music, saw the colorful comfortable seats, and was greeted by fashionably dressed flight attendants. By the time I sat down, the first thing I said to Nanci, a perky brunette from Atlanta, was, "How can I invest in Song?" The plane hadn't even taken off yet!

Let's breakdown my desire to invest in this company just from just a single contact in four points of connection we humans can relate to.

One, most airlines are scrambling to cover losses and willing to slash prices to get people flying againÑ Delta included. As they scramble to react, new airlines were capturing market share with lower price points. With Song, Delta made the decision to expand rather than dilute Delta's existing brand and value proposition. They needed to go in another direction and create something completely different to join the battle. Now I wasn't there to observe this personally, but it seems to me they responded like a nimble entrepreneur eyeing a market opportunity, not a giant digging in. To make big advances, bold steps are needed.

Two, from the very beginning they had me emotionally. From the moment I was at the gate through when I stepped off the plane, they touched me. I got to choose from a menu of great food and I got to choose my entertainment. The music selection was better than a record store. I felt so good I didn't even think I was in the air. No emotional detail was spared. They nailed it big time. It was all planned down to the detail. I wouldn't have been surprised if the Captain came on to introduce Cirque du Soleil (the famed performers from Canada) as the next bit of entertainment. Song had me fromÉ the first joke. Create an experience and I'll buy more than a ticket.

Three, they were able to make this emotional impact on me because the airline itself came from a deep place of belief. After the unfortunate events of September 11^th, the airline industry was reeling. Delta employees knew they had to do something to capture the hearts of flyers, or cutbacks and layoffs were on the horizon. They believed they had to deliver an exceptional service never before experienced at a price that the public would pay. No more doing business as usual. They had to create something that they personally would want to experience. They took the big business of flight and made it deeply personal. They were able to get me emotionally because of their deep belief.

Four, as a smart investor I knew that if Song was able to keep up this level of experience for their customers in a dependable fashion that it would indeed become "the airline of choice" for me. I also knew there are lots of me's in the world. At this rate of experience, it would be no time at all before they expand their routes and create a powerful brand presence in the marketplace. A smart investor knows to follow their own instincts and invest in more than just the numbersÑ what they experience as valuableÑ what they believe in.

And all of this was woven together with the CEO's passion of music, hence the name. This was by far the best branded experience I have ever witnessedÉ noÉ experienced!

If customers (and potential investors) look at businesses from this viewpoint, then shouldn't you as a business owner do the same?

Whether you are a small business owner or a new entrepreneur, develop your brand by focusing on "experience." Doing so will undoubtedly put your business closer to your customer AND closer to a brighter future. And you will also enjoy the journey!

Kim A. Castle is the Co-founder of BrandU™, Co-Author of Why Brand: Big Business Success No Matter Your Size, and BrandU™ Bible, the only step-by-step workbook for developing your business as a brand. Kim Castle's one-day BrandU™ Workshop shares the process used by major corporations to create mega-brands and perfected in this immersive and interactive day.  The One-day BrandU™ Workshop will begin the journey of uncovering your brand from the inside out. Purchase the book or sign-up by going to the BrandU™ One-Stop Shop at www.whybrandu.com

"Command with your brand and be in demand! Read Why BrandU and learn how to experience profitability beyond belief."

 - Mark Victor Hansen,  America's Leading Expert on Human Potential and Co-author of Chicken Soup for the Soul and One-Minute Millionaire.

Retire While You're Young Enough to Enjoy It..

By Les Abromovitz

After the bear market clawed investors' nest eggs in the early years of the 21^st century, many people gave up their goal of retiring early. Some even gave up the goal of retiring at all. With a bearable budget and smarter investing, you can still retire while you're young enough to enjoy it.

It is helpful to plan for early retirement in two stages, the years before age 59 and the years after age 59. Age 59 is the date when you're able to tap most retirement savings plans without a penalty. You should attempt first to secure the post-age 59 stage of retirement.

Social Security benefits aren't enough for most people to live on and your full retirement age is 67 if you were born in 1960 or later. You can still collect at age 62, but your benefits will be reduced significantly. In addition, fewer companies offer pensions, so most workers are on their own to save and invest for retirement.

To secure the post-age 59 stage of retirement, your primary investment vehicles are Roth IRAs and 401(k) retirement savings plans. You should increase the amount you're putting away and take advantage of higher caps on how much you're permitted to save. If you're age 50 or older, there are even higher caps on contributions to IRAs and 401(k)s. Although there are ways to withdraw funds from retirement accounts without a penalty before age 59, keep your hands off of them for as long as you can.

As you edge closer toward retirement, increase the amount you're putting away. This serves two purposes. You increase your retirement savings and get used to living on less. Your nest egg doesn't need to be as large if you cut the cost of your retirement lifestyle.

Make sure your IRA and 401(k) investments are well diversified and you don't have too much money in one company's stock. Consider investing in a target retirement fund in which investments are selected based on when you expect to retire. Assets are shifted toward less risky investments as your retirement age approaches.

NataliePace.com note: For more guidance on diversifying into mutual funds and closed ends funds, read Paul Woods excellent article in this month's NataliePace.com ezine.

When you're ready to retire, make certain you keep at least three years of living expenses in liquid investments. Otherwise, you may be forced to cash in stocks during a bear market to cover living expenses.

Annuities are another way to generate income during the post-59 stage of retirement. You also need to think about a part-time job or a second career after retiring as a way to make money and stay active. Ideally, you'll be working in a field that's always intrigued you, not working at a job you hate because you're desperate for money.

Retirement before age 59
Once you've secured the post-59 stage of retirement, you can look at retiring even earlier. That's going to be extremely tough, especially with low interest rates and health insurance premiums going through the roof.

A good starting point is to look at ways to cut the cost of your anticipated retirement lifestyle. Whether you retire early or not, owning a home with a paid-off mortgage makes your lifestyle easier to sustain. Even if you have a low-interest mortgage, you get a guaranteed rate of return by putting money toward the principal or paying off the mortgage. Remember also that the mortgage interest deduction isn't as valuable, because tax rates are lower and the standard deduction is higher.

If and when you're ready to downsize to a smaller home, you may be able to put away money for the pre-age 59 stage of retirement. If you make a profit on your current home and trade down to a less expensive one, you can put away enough money to cover a few years of living expenses until you're ready to tap traditional retirement accounts at age 59. Even better, the profit on the sale of your primary dwelling escapes federal taxes, provided it's less than $500,000 if you're married and $250,000 if you're single.

Most retirees plan to work in retirement, whether they retire early or not. Start thinking about a post-retirement career and make sure job opportunities exist in the area where you're planning to live.

Many people dream of opening a small business in retirement to keep busy and earn extra income. If you own a small business, you might be able to deduct the cost of your health insurance. Assuming you retire before you're eligible for Medicare, make certain you nail down a comprehensive health insurance policy before retiring.

No matter how old you are, it's important to begin planning now. If you plan properly, the next bear market shouldn't put your goal of early retirement into hibernation.

Les Abromovitz, an attorney, is the author of PROTECTING AND REBUILDING YOUR RETIREMENT (Amacom 2003). He and his wife split their time between Boca Raton, Florida, and Pittsburgh, Pennsylvania. You can purchase Les' book at www.Overstock.com, www.Amazon.com, or your favorite book store.

Book of the Month:

Ready the Eight, by Jae Gordon, former litigator and consultant to two Consuls General of Israel. If you're interested in learning more about the terrorist mind, this is an edge-of-your-seat must-read.

FYI: Jae Gordon is an NataliePace.com memberÉ Support her creative genius by recommending her book for your Book Club! This is an intensely gripping and informative read. If you are inspired, submit a review to NataliePace.com at: npace@NataliePace.com!

PROLOGUE

Jordan, September 1998
Six comrades boarded half a dozen flights to the same number of cities.

They set out from Ramallah, Jenin, Nablus, Akbat Jabbar, Jericho and Abu Jibril, crossed the Jordan River and headed for Amman. From there, the six devotees, unknown to one another, set off on a common mission guided by a master plan, fueled by an unshakable faith in Allah and unswerving loyalty to his messenger, a man they called Al Rasuul, the Deliverer.

The voice over the loudspeaker announced the flights.

"Final call for TWA flight 842 now boarding for Rome at gate 41."

"American Airlines flight 33 now boarding at gate 35 for New York."

"Swissair flight 003 now boarding for Paris," British Airways to London, TWA to Los Angeles and Tokyo.

As the six comrades boarded their flights, a customer seated at a rickety table in an East Jerusalem cafe crushed out his cigarette in an iridescent tin ashtray and a young man stood at the edge of an old quay in Jaffa, meditatively inhaling the night salt air of the Mediterranean Sea just below him.

Eight comrades. Eight cities. Eight martyrs. One cause.

Stage IV had begun.

Pentagon, 2:00 AM
The handler's head jerked up as his computer beeped, rousing him from a heavy slumber. Glancing at the clock, he sighed with relief. He'd slept only ten minutes. He took a swig of cold coffee from the mug set on the desktop beside the computer, rubbed his eyes and peered into the monitor.

The gentle beep, alerting him that a message had been retrieved and decoded, was unexpected. It had been months since anything had been picked up.

"Good morning, Darlin'," he said softly, almost coaxing, as he scanned the screen. "What'cha got for me here, hon?" In the darkened room, unfurnished but for the oversized gray metal desk and swivel chair, the letters on the computer monitor glowed bright.

He read the message, hit the Print button, then read it again. Now fully awake, chills crept down his spine like swarms of advancing insects.

"Oh, shit," he swore to himself.

In one swift move, he grabbed the printout, stuffed it into a manila folder marked "Top Secret" and shot out the door.

CHAPTER ONE

Jerusalem, May 1998

As she ran, she felt a tug at the muscle of her inner thigh.

"Not yet," she whispered to herself, only three miles into her evening run. The air was hot and her limbs felt heavy. The hamsin had arrived early this year and its pervasive dry heat threatened to cut her workout short. She raised her eyes from the track in front of her and focused instead on the treetops above. Immediately, her lethargy lifted off and she propelled herself into a steady, comfortable stride.

Half an hour later, evening gave over to the cool mountain night, infusing the air with a sudden chill. Soaked with sweat, the crisp breeze made Nadine shiver. She sprinted past the eight-mile mark, then slowed into a lope, inhaling deeply and slowly, acutely aware of her racing pulse. She walked briskly around the track until the blood pounding through her veins quieted, then dropped to the ground. Body taut, hands firmly planted on the grass directly beneath her shoulders, she quickly counted out twenty-five push-ups.

Back on her feet again, she raised her arms high over her head, took a long, slow breath and pulled on a sweatshirt discarded earlier in her run. Satisfied, she headed up the hill towards Fouad's kiosk for a cool drink before he closed up for the evening. Their rendezvous had become a nightly ritual and the old Arab was waiting as she approached.

She raised her hand in greeting and slid onto a stool next to a counter overstocked with candies, nuts and chocolates.

"Ahalan, Fouad," she said, smiling as he handed her a Gatorade.

"Salaam aleichem, Nadine," Fouad responded in greeting.

Nadine was always amused by the incongruity of seeing him whisk the all- American sport drink from the small cooler tucked between Middle Eastern pastries and a rack filled with periodicals printed in Hebrew, Arabic, French and English.

"Shukran," she added, offering Fouad her thanks.

Nadine raised the can in salute, then drained it of its contents and lightly tossed it into a plastic bin behind the counter.

"What's the trouble, Fouad? You don't look so good."

"I made the mistake of reading the newspaper," he complained, handing it to her. The lead editorial decried the round of terror and retaliation that had rocked the tiny country the week before.

He studied her for a moment before responding to her questioning gaze. "I am an Arab, Nadine. My family has lived on this land for five generations. It is my home. I am also an Israeli, a citizen of this country. I vote for my representatives and I carry an Israeli passport. So who am I?"

She finished her drink in silence, stilled as much by her friend's personal dilemma as by the realization that there was no simple solution to this conflict.

Fouad turned off the lights and together they stepped outside. With a wave, Nadine trotted off in the direction of home while Fouad turned to secure the metal shudder that rolled across the front of his kiosk. She spied the flat that she shared with her two boys in a new neighborhood just southeast of Jerusalem's Old City. Perched on the summit, it overlooked the Judean Hills and on a clear day, she could see the Dead Sea glittering in the distance from her terrace.

Nadine took the stairs two at a time up to their apartment. She couldn't wait to get into a hot shower. She pushed open the door only to hear the phone start ringing at that same moment. Whoever it was had better be brief, she mumbled to herself as she picked up the handset. She had started to shiver despite the heavy sweatshirt she wore, as her body temperature readjusted after her run.

"Did I call at a bad time?" the caller inquired in response to her abrupt greeting.

A wide smile creased her unlined face. "It's never a bad time for you, Brad," Nadine responded, happy to hear the familiar voice. Since Jeremy's death, his mentor, General Bradford McKenzie, called often.

"Couldn't help thinking of our friend today. I was nearly clipped by a chopper carrying a load of Washington VIPs. My immediate thought was that this has got to be another one of Jeremy's practical jokes." Brad paused. "He was probably looking down at me with an ear-splitting grin on his face, watching me squirm."

Nadine could only laugh. It beat crying. It seemed that Brad missed Jeremy almost as much as she did.

A short silence filled the space between them before Brad ventured further. "You know, Nadine, we still need you here. There aren't too many with your expertise."

Nadine bit at her lower lip. She knew the ropes. She couldn't do that. Not yet.

Her voice dropped. "I'm sorry, Brad."

Nadine gently placed the phone on its cradle. The U.S. Department of Defense did quite well before Dr. Nadine Kanner came along, she rationalized, and would continue to do so from now on. With that, she headed for the shower, determined not to give the conversation another thought.

******

Dr. Sami Nasser unlocked the door to his apartment on Central Park West and headed straight for the study. The light tapping sound of his shoes on the polished wood floor ricocheted off high ceilings as he strode down the long hallway towards the back of the flat. Without pausing, he passed through the study door, dropped his jacket and briefcase on the soft leather couch to his right and sat down at the desk opposite. Despite its expanse, the antique desk topped with leather inlay was adorned with only one item - a computer. Behind him, floor to ceiling leaded glass windows displayed the grayish brown city beyond. He did not bother to turn on the lights and the room was illuminated only by the murky evening dusk.

Dr. Nasser flipped on his computer and waited impatiently as it whirred and beeped into readiness. A few moments and several keystrokes later, he'd retrieved the document he needed. With his right hand ever so gently yet skillfully caressing the trackball, Nasser clicked on a series of icons, abandoning the orb only momentarily to type in the secret password that gained him immediate access to the Internet. He knew exactly where he wanted to go in that virtual universe of information and web sites. Another series of clicks and he was there. Hooked up to a site in the Middle East, he attached the document retrieved only minutes earlier and hit the SEND button. Before he could blink, confirmation flashed on the screen.

Nasser exhaled as he leaned into the high back of his leather swivel chair and rotated to gaze out at the New York City skyline, now ablaze with a myriad of tiny lights.

*****

Ready the Eight is a riveting, fast-paced thriller that not only entertains but informs the reader how terrorist networks came to be and operate. Stunning and intriguing. Intensely gripping. iUniverse Editor's Choice.

Jae Gordon is Associate Director of Communications at the Milken Institute, a nonprofit, economic think tank in Santa Monica, CA , a former litigator and consultant to two Consuls General of Israel. She is a writer and editor in Southern California, now working on her second novel.

Ready the Eight is available at www.amazon.com, www.bn.com, www.powells.com, www.booksamillion.com, and through many other online booksellers. Or order it through your favorite bookstore.

Companies in the News:

News highlights, as reported by the most respected sources in the world. Alphabetized for easy reference.

GoldCorp. The Canadian gold mining company, Goldcorp (NYSE: GG) is producing gold at under $100/ounce and selling it for $400, according to CEO & Chairman Rod McEwen, in an appearance on Kudlow and Cramer this month. Gold historically does well in an inflationary environment, but just how high can it go? Mr. McEwen's crystal ball says $850 within six years because "when the market stalls or goes backwards, gold does well." Go to the archived ezines to read NataliePace.com's feature article on GoldCorp in issue 40. GG was trading at $12.10 on 8.16.2004, off of its 52-week high of $18.50.

Google. Google's IPO shares were priced at $85, at the bottom end of a lowered pricing range, after the IPO was hit by a string of missteps and lackluster market conditions. IPO investors should be happy with the 8.31.04 trading price of $102.69, however! How does Google compare with closest competitor Yahoo? See below. FYI: Yahoo's business plan is considered to be slightly more diversified and robust, and the management team more experienced. Additionally, Yahoo has a billion more in sales and three times the income of Google. Google, on the other hand, has great technology, fresh energy, pop appeal and growth momentum on their sideÉ

Intel's share price tumbles, but executives aren't worried. "Microprocessors, our core business, behaved perfectly normally, down 4%É We built too much inventoryÉ The mistake was that we got more good parts out of the factories than we expectedÉ The microprocessor business is seasonal. We look at the back half and we're comfortable with itÉ We've seen worldwide sales come in right where you expect it. At this point we see nothing that concerns us about the second half." Andy Bryant, CFO, Intel, speaking on CNBC, 7.13.2004

Possis Medical Inc.: Shares of Possis Medical Inc. (POSS) tumbled as much as 41 percent on Tuesday (8.24.04) after the company cut its earnings outlook due to the failure of its AngioJet blood clot treatment to help heart attack patients in a key trial. In June, Ernst & Young LLP named Robert G. Dutcher, CEO of Possis Medical, as the 2004 Minnesota and Dakotas winner of their Entrepreneur of The Year(R) award for Life Sciences. In May, Possis received approval from the U.S. Food & Drug Administration (FDA) to market the rapid exchange version of its XMI Rheolytic Thrombectomy Catheter--the XMI-RX--for coronary indications.

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