Monday, June 21, 2010

managing personal finances


Last week, VentureBeat reported that Tesla Motors CEO Elon Musk personally running low on cash, a fact he disclosed in court papers as part of his divorce proceedings. We asked if the company, which is seeking to go public, should have included those facts in its filings with the Securities & Exchange Commission. Now, the company has responded, by way of a revised S-1 form filed today.


In an article crediting VentureBeat’s reporting with prompting the newly amended filing, the Wall Street Journal points to language added to address Musk’s finances:


“While Mr. Musk has historically provided a significant amount of the funds required for our operations, we have not received any funding from Mr. Musk in the past 12 months and are no longer dependent on the financial resources of Mr. Musk to fund our expected growth given the funds available under DOE Loan Facility [the $465 million in low-interest loan provided via the Advanced Technology Vehicle Manufacturing program] and the expected proceeds of this offering and the concurrent private placement with Toyota. We do not believe that Mr. Musk’s personal financial situation has any impact on us.”


In that same section, the S-1 delves into Musk’s divorce proceedings, which, as we have previously reported, could potentially reduce his holdings in Tesla as well as his other ventures, SpaceX and SolarCity:


“Mr. Musk is currently engaged in divorce proceedings and previously entered into a post-nuptial agreement which provides that the holdings of the trust, including Mr. Musk’s shares of our capital stock, shall remain solely his property. This post-nuptial agreement has been upheld by the Superior Court of Los Angeles though such decision may be subject to an appeal. However, we do not believe that Mr. Musk would have to liquidate a significant percentage of his holdings in order to satisfy any settlement reached in connection with such proceedings.”


The company’s “we do not believe” statement might not be a strong enough assurance for shareholders. Right now, Tesla’s success appears to hinge on the $465 million loan it received from the U.S Department of Energy. Drawing down that loan is how the company plans to buy the NUMMI automotive plant in Fremont, Calif., needed to manufacture both its Model S sedan and future vehicles it may build in tandem with Toyota, one of the plant’s current owners. But this loan is dependent on Musk being able to retain at least 65 percent of his current stake in Tesla. If he doesn’t, the company defaults on the loan.


“If the DOE loan is dependent on Musk retaining a certain percentage of Tesla, there is no guarantee that this won’t happen due to the divorce settlement,” says Dallas Kachan, managing partner of cleantech consultancy Kachan & Co. “Investors should bear that in mind.”


This is the type of information that could impact potential shareholders’ decisionmaking, Kachan says. And this type of personal disclosure isn’t all that uncommon in SEC filings, when potentially relevant to shareholders.


What may concern shareholders more than whether Musk can continue to personally keep Tesla afloat is that he is currently actively running two companies, Tesla and SpaceX, while also remaining involved in SolarCity, dealing with a personal cash crunch and navigating a rocky divorce. That’s a lot to be juggling at any one time.


Incidentally, the S-1 notes that under Tesla’s agreement with Daimler, a major Tesla investor and partner, if Musk decides to step down from his post at Tesla — an event that seems unlikely for now, then Daimler will have veto power over the company’s selection of a successor as Tesla CEO.


Tesla Motors couldn’t comment directly on its decisions to update its filings, due to SEC rules for companies planning an initial public offering. In the meantime, however, it’s to the company’s credit that it decided to clarify all of these issues in writing.


Next Story: Facebook promotes Bret Taylor to CTO less than a year after FriendFeed acquisition Previous Story: Swingvine launches location-enabled photo app



Women are becoming more knowledgeable about finances, becoming more confident managing their own investments and talking more openly about moneywith their kids, colleagues and peers. This, according to new research conducted by Citi's Women & Company.



I recently chatted with Lisa Caputo, president and CEO of Women & Co, and she says that it's about the recession and its aftermath. "Women are ushering in this new era of responsibility. They're stepping into the role of 'Chief Financial Officer' and building quality lives for themselves and their families."



They're going to graduate school. Starting companies. Becoming breadwinners. Even outgrowing the number of men in the workforce -- for the first time in American history. "We're taking the financial lead," says Caputo, "and becoming more empowered."



Here's how you can do it -- at any age:







In Your 20s

Time is on your side - use it to build a solid financial foundation.Start living on a budget, identifying financial goals and putting a plan in motion, and most importantly, setting aside income, says Caputo. Ideally, aim to set aside 15% of your gross salary. Not possible? This money doesn't have to come out of your pocket so it's not be as painful as it seems. For example, say you're single, and making $50,000 a year. If you have just $250 a month of pretax dollars automatically deducted from your paycheck, and deposited in your company's 401K plan, and if your company matches those contributions (50 cents on the dollar up to 6% of your salary), you're already more than halfway there!



In your 30s


Set up an emergency fund (ideally, 6 months worth of living expenses), max out the contributions, and "define your investment strategy and structure a well diversified portfolio," says Caputo.That may require your working with a financial advisor, particularly since you're probably having a tough time budgeting given your new status (married? kids?). You can find one through napfa.org.



In your 40s

You may be juggling the needs of a growing family and aging parents, but don't take a break from retirement savings. And think about protecting your legacy, says Caputo. "We're talking wills, naming guardians for small children, and getting life insurance if you have dependents."



In Your 50s

This is when you want to get serious about crunching the numbers -- specifically, estimating your retirement expenses and your projected income.There are calculators on the web to help you do this. Once you're age 50, you can add an extra $5,500 in catch-up contributions to your 401(k); IRA savers can throw in another $1,000. Take advantage of this. Caputo says you should also rebalance your portfolio, and review your life insurance coverage at this age.



In Your 60s

You're eligible to collect Social Security benefits beginning at age 62 -- the median retirement age -- but if you can wait a few years the payouts will be bigger. In fact, every year you delay drawing Social Security between age 62 and 70 increases your eventual payout by about 8% a year. Just something to think about, says Caputo, who also suggests you go back to budgeting basics as you learn to live on a fixed income, and that you additionally update your estate plans.
penis enlargement

Managing your finances while you are between jobs is tough. You have to consider the overall economy, the reason for your unemployment, your skill set, and estimated length of unemployment. The economy is a determining factor since you may apply for unemployment benefits via your state. The estimated time frame is 24 weeks with the possibility of extension for an additional 24 weeks but if the economy has a high unemployment the probability for an extension is limited.

The reason for your unemployment is important. For example, if your company was part of a well-known, massive layoff/acquisition you may have received a generous severance package. You would be able to maintain fixed expenses such as rent/mortgage, property taxes, and insurance using your severance while keeping your unemployment separate for postponed/variable expenses such as dining out, entertainment, and travel.

On the other hand, it is rare to obtain a generous package so your unemployment may be your only income for both fixed and variable expenses. Remember, it will run out. While searching for a new job, check with an unemployment expert to see if you can go back to school for a short-term certificate in a promising field such as computers, technology, education, and medicine. Also, check with your state to determine if you can start a homebased business for minimal costs instead of searching for a traditional job.

Your skill set is critical. For instance, if you are a registered nurse who lost her job because of a merger you will obtain a job offer sooner because of the national shortage of good nurses and you may receive better pay/benefits/work-life options. You may still choose to enjoy an expensive two week vacation. However, a low-skilled clerical worker who has enormous competition needs to forego a vacation and hit the books.

Managing your household income will be a challenge and it may take time to establish a new budget. However, you can change your unemployment budget based on your personal needs.


Arrowheadlines: Chiefs <b>News</b> 6/21 - Arrowhead Pride

Good morning boys and girls. An early edition of Arrowheadlines today so I can hit the road (pretty much the case all week). Here's today's Kansas City Chiefs news (tweet-free). Enjoy!

What makes a nonprofit <b>news</b> org “legit”? Here&#39;s one six-fold path <b>...</b>

Back in February, I posted an essay in this space posing the question: What makes a nonprofit news organization legitimate? It's a question that nonprofits and.

Balloon Juice » Blog Archive » Entertainment <b>News</b>

totally OT but I am in Costa Rica watching the Colombian news channel and the military guy Santos, heir to Uribe, just won the election. I just find it freaky that he has the whole military contingent on stage with him. Very creepy. ...






























No comments:

Post a Comment