Paradise Found: Exploring the Ethos of an Angel Investor

As the news cycle spins with tales of start-ups and their founders’ good fortune, most of us find ourselves stunned by the speed with which these companies accelerate from zero to sixty-million-dollar valuations.

However, what frequently goes unmentioned in these stories of bedeviling success is the role that angels play — angel investors, that is — in enabling many young companies to grow from idea, to capitalized venture, to viable — and sellable — commercial enterprise.

The Angel Capital Association estimates that there have been roughly 225,000 angel investments made in the US during the past two years, and that the number of angel investors has to potential to grow to four million in the coming years.

Sounds like reason to rejoice, doesn’t it? Well, if you count yourself an entrepreneur, a potential investor, or just someone interested in finance and industry, you probably agree.

We certainly do, which is why creative.reconstruction sat down with Linda Holliday, a serial entrepreneur and member of the New York Angels — the nation’s most active group of its kind — to learn more about the spirit of angel investing.

CREATIVE.RECONSTRUCTION: For starters, how would you define “angel” investing? What are its distinguishing features, and how might it differ from venture-capital investing?

LINDA HOLLIDAY: Angels are amateurs and VCs are professionals — meaning that they have raised funds from outside partners and are running an organization that vets and manages investments. Angels are often individuals; VCs are essentially committees.

In my experience, it’s also the case that angels are more emotional, and get connected to ideas and entrepreneurs. VCs at least try to make more financially driven decisions. As an angel, you’re usually with your companies for several years, helping to navigate follow-on rounds [of funding] and business hurdles. And sometimes, as an angel, you just fall for an entrepreneur and become a coach and mentor as well as an investor. It can be very satisfying to help them through some of the inevitable challenges and to watch them succeed.

In truth, both groups of investors can be very trend driven — always looking for the next Pinterest or Uber, etc. That makes it much easier to get an iterative idea funded than an original one.

At what stage of a company’s life cycle is it most advisable to approach an angel investor? Can it ever be too soon or too late for an angel?

Unfortunately, as the options for early financing increase with platforms such as Kickstarter, and the competition for seed money gets more and more intense, most angels now want quite a bit of “de-risking” before investing. So that often means that the product has been built and or tested with some users. It’s usually only too late to approach an angel if you’ve already pushed the valuation for the company beyond seed level ($3M–$8M pre-money), but even that is flexible and changing. You should definitely have a good team together, and enough assets in place so that you can convince strangers that you can pull something off. When I teach my class on entrepreneurship, the first day I come in I ask the students to give me $1,000. That kind of underscores the importance of persuasion.

Is angel investment more advantageous than borrowing as a means for companies to finance growth? Why or why not?

It’s extremely difficult to obtain debt financing for seed companies, but if you can get it, it would prevent significant dilution. I learned business the old-fashioned way: that selling equity was very expensive; that you should do everything you can to hold equity. Alternatively, given the high failure rate for startups, many entrepreneurs might be nervous to finance significantly with debt.

Many entrepreneurs are relatively inexperienced, and if they have the commitment of some experienced angels it can make a big difference as to whether they succeed or fail. In an ideal world with lots of choices, angels would be selected for that experience.

What have you found to be some of the more common misconceptions held — or mistakes made — among entrepreneurs who seek angel-investor support?

Most entrepreneurs are shocked to find out just how much equity they have to sacrifice to raise angel funds. If you look at the investment class and do the math: If one-third to one-half of funded companies fail, and one-half of the remainder are essentially flat, it means that last portion has to generate a huge multiple for an investor to break even. It’s not uncommon for an angel to seek a multiple of 10x or greater on their investment — of course that doesn’t mean they get it.

It really is a buyer’s market for investors. Entrepreneurs will only have one shot at an investor. You really have to have everything buttoned up — everything. And unfortunately, that often means having a serial entrepreneur with a successful exit on the core team; it’s the greatest predictor of success.

For me, I look for domain expertise, or at least that a lot of research has been done. We’re in a moment now where having no experience is somehow seen as a disruptive advantage. Wake me when it’s over!

What tools or metrics have you found to be the most reliable means of evaluating a company’s investment-worthiness? What would you consider to be the three most critical characteristics of an investment-worthy venture?

It’s hard to trust metrics too much, since really all you’re buying is a story that happens in the future. That being said, some metrics, like referrals or time spent with the product, can have strong predictive value.

When I evaluate an entrepreneur, I ask myself the question, Would I hire this person to run, say, a $10M department? For five years? Unsupervised? That’s the level of confidence you need to have in somebody. For me, that clears things up pretty fast.

Three important invest-ability characteristics would be: An idea that’s riding one more important tech trend; an entrepreneur that is plausible with a well-considered game plan; and a concept based in a sector that I would consider myself qualified to evaluate.

Are there any particular business sectors, scenarios or needs for which you feel angel investment is best-suited? Why or why not?

There are many ways to be an angel investor: The tech sector is obviously very hot; so is e-commerce. Being an angel in those areas could lead to a vibrant professional life. You may also want to stay close to the industries you understand most, or that most interest you. Many angel investments will require follow-on rounds. It’s a good idea to think about what the life-cycle for the company is and whether not you have the patience, or as we say, the “powder,” for it.  Many angels are looking for investments that will exit relatively quickly. (A $2M valuation now for a $20M exit in two years is one desirable formula.) Other angels are looking for a “Hollywood hit,” and want to make many bets. If the sector you’re looking at doesn’t have a history of raising follow-on rounds of investments, it’s probably too risky as an angel unless you think that company can get to break-even on seed money.

Do you feel that there’s value in angel investors having a clear and guiding investment philosophy? Or is it best to evaluate each opportunity on its own merits?

It all depends on one’s motives: If you don’t start from a financial point of view, you’ll probably end up losing money. But even if you do start with a purely financially driven evaluation process, there are plenty of interesting companies to choose from in every sector. All young companies are risky and it’s always advisable to diversify your portfolio.  If you want to make money it’s probably a good idea to think about investing in 10 to 20 companies at a minimum.  It’s easy to fall in love with ideas, but it is really execution that makes the difference between success and failure.  Past execution is a good predictor of future execution. That’s why angels are always looking for entrepreneurs who’ve had a successful exit. Angel groups are super-important, too. Doing enough due diligence as an individual is pretty onerous. The group can perform that role en masse, or as an individual investor you can follow behind groups of more seasoned angels who have done most of that activity.

In what ways — be it through marketing, efficient, debt profile or product/service focus — can an entrepreneur make her company or concept more appealing to an angel investor?

Angels always want a clean balance sheet. We want to know that the money’s going towards future value creation not paying down past value creation. Maybe that’s not logical, but it’s true.

Entrepreneurs really need to be out there, stirring the water, making a splash, trying to crescendo a bunch of attention at the closing of a round. Of course, this is very hard to do — especially without the benefit of expensive communications professionals. Thus, most entrepreneurs are on the hunt for product demonstrations and promotional ideas that create a lot of buzz for very little money.

Watch what other entrepreneurs do. Goldie Blox [the company that makes engineering-themed toys for girls] was particularly brilliant this year: They capitalized on negative stereotypes about girls as engineers and provoked a lot attention with their aggressive use of copyright-protected music in promotional videos. The controversy actually landed them a sponsored spot in the Super Bowl. That’s a 10!

In your years as an angel investor, which would you count as your most memorable and your most forgettable experiences — and why? 

Most memorable? Giving a young CEO high-end advice on how to handle a predatory partner. It was a life or death moment for the company in a conflict over rights and rates. The entrepreneur just took the advice, executed perfectly and saved the day. He’s a natural. You make lots of little saves and lots of introductions and all of them are satisfying and memorable. In that way it’s kind of like being a parent, I guess.

Most forgettable? The “repetitive-stress injuries” one suffers with inexperienced executives who don’t take coaching very well; they almost always fail. It’s a really tough balancing act. Stubbornness isn’t confidence, but they can look very similar.

Are they any parting words of advice or wisdom that you would offer to current or prospective entrepreneurs? What about prospective angel investors?

To the entrepreneurs: I would say that every day is a struggle to separate the important from the urgent. It’s incredibly hard to keep doing the most important work when one is faced with such a seemingly endless amount of work.

To the angels: I would say read my friend David Rose’s new book “Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Start-ups.”  If I’d read it five years ago, I might not have had more fun, but I definitely would have made more money.

For more information on becoming or finding an angel investor, visit the Angel Capital Association or the New York Angels. 

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A edited version of this article was originally published on Learnvest.com and Forbes.com in November 2015.

Madame Candidate: MacDella Cooper’s Quest for the Presidency of Liberia

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In 1980, on the heels of the violent overthrow of a democratically elected leader, Liberia, West Africa — a small, theretofore peaceful and prosperous nation with strong diplomatic ties to both Europe and the United States — fell gradually into a three-decades-long spiral of social unrest, political instability and upheaval that would undermine its standing around the world and cast the nation’s future in doubt.

The abuses and corruption of the military regime that controlled the government during the era inspired numerous coup attempts before the close of the decade — conflicts which, though ultimately thwarted, weakened the regime and emboldened other factions to rise up and threaten the political order.

By 1989, two separate rebel insurgencies had launched attacks on the government and thrust the nation into a devastating civil war that would persist, in some manner or form, until 2003, when a bloc of West African nations, exhausted by the regional impact of the continued conflict, intervened to impose a cease fire and send Charles Taylor, the infamous warlord and Liberia’s titular leader, into exile.

In 2006, following three fitful years of relative stability, Liberia held its first democratic election in more than a generation, and installed Ellen Johnson Sirleaf as president — the first woman to be so elected in the continent’s history.

By UN estimates, more than 250,000 Liberians were killed and more than one million displaced in the course of the conflict — triggering a refugee crisis that flooded neighboring countries, and nations around the world, with individuals and families displaced by the war. Among those seeking asylum abroad was a rootless, teenaged girl named MacDella Cooper.

Granted clearance to come to the US in 1993, where she was reunited with her mother and sisters after more than three years apart, MacDella Cooper was able to overcome the traumas of her early life and thrive — earning a full academic scholarship to college, and building a successful (sometimes controversial) career as a fashion model and event planner in New York City.

Driven by a desire to help those left behind in her native country, Ms. Cooper created the MacDella Cooper Foundation: a non-profit dedicated to the protection and empowerment of Liberian women and children displaced in the aftermath of the war. However, despite the success of her foundation, Ms. Cooper is inspired to do more — much more.

This year, as the Sirleaf administration nears the end of its second term, a pool of eight candidates have emerged to succeed her as president and contend with the issues — widespread illiteracy, deep-rooted traditions of patriarchy and tribalism, endemic mistrust of government, inadequate infrastructure, anemic tax revenues and the residual impact of the Ebola outbreak — that continue to afflict the nation. Among them is MacDella Cooper — who, at age 40, is the youngest presidential candidate in the 170-year history of the republic.

“Madame Candidate,” a feature-length documentary film, will chronicle the final weeks of Ms. Cooper’s campaign. Through interviews; “in-the-field” coverage; and impromptu Q&As with candidate Cooper, regional leaders, public officials and expert commentators from the international community — as well as the outgoing president — the film will seek to capture greater insights into Cooper’s motivations for running, her fears and anxieties with respect to the undertaking (particularly in light of the violence and instability that have historically plagued the office), her vision for the country, and her preparation — personal and professional — for the immense challenges she faces as a candidate, and would continue to face as head of state: key among them being to the extent to which the gender and the complex legacy of sitting president Ellen Johnson Sirleaf bears on Ms. Cooper’s fortunes as a politician.

Furthermore, in witnessing her reception among “everyday” Liberians, as well as members of the nation’s ruling elite; in detailing the views and opinions of supporters and detractors (including her challengers); and in documenting the range of struggles, triumphs, victories and defeats encountered on the campaign trail, the film will document Cooper’s attempt to journey from daughter of Liberia to elected leader of the nation.

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This concept summary is excerpted from an original treatment conceived, written and designed by me in 2017. (“Madame Candidate:…” is registered with the WGA West, Inc.)

Handicapping the Job Hunt: A Talent Recruiter Shares Tactics to Stand Out

As the economy emerges from the shadows of the so-called “Great Recession,” a great number of us — employed and unemployed, alike — have allowed ourselves to exhale and our focus to shift from the dire uncertainties of the last five years, to the promising signs that dot the road ahead.

In an ironic twist, however, the collective breathing-out of stress is followed by a collective breathing-in of those no-longer-dormant anxieties linked to the process of job-seeking — especially now in our increasingly digitized, globalized and high-velocity economy.

According to a recent report issued by the Bureau of Labor Statistics, unemployment nationwide has fallen to a five-year low of 6.1%, with the U.S. economy absorbing roughly 290,000 new employees in the month of June 2014 alone. The upward trend in hiring is particularly sharp in the fields of professional and business services, which have witnessed a 25% rise in employment during the same period.

This is all comforting news, to be sure — but that’s just part of the story. For just as prospective employers must now compete for new talent, prospective employees must now compete for new jobs. And standing at the threshold of this business battlefield are the ranks of talent recruiters — those men and women tasked with identifying, recruiting and vetting qualified applicants.

Who are these gatekeepers, what exactly do they seek, and how might candidates distinguish themselves from the pack? If you’ve ever contemplated any these questions, you’re not alone. That’s precisely why creative.reconstruction sat down with Abby Kohut, a seasoned staffing professional, author of “Absolutely Abby’s 101 Job-Search Secrets” — and career consultant with roughly 25 years of experience — to better understand the art, science and intangibles of employee recruitment.

CREATIVE.RECONSTRUCTION: For starters, how would you define “talent recruitment,” and in what ways might it differ from the functions performed by headhunters?

ABBY KOHUT: Talent recruitment is a strategic approach to identifying, attracting and onboarding top talent to efficiently and effectively meet dynamic business needs. Headhunters, by slight contrast, provide a supplemental service — augmenting the work of in-house corporate recruiters who may be having difficulty in filling particular positions. When both parties work together, the end result is frequently top-notch candidates are placed into top-notch companies.

What are some of the standard metrics that recruiters use to evaluate a candidate’s suitability for a given opportunity — both pre- and post-interview?

In my experience, the key recruiting metrics for larger and more formal employers tend to be more related to factors like allotted recruitment time-frames, the costs associated with filling particular positions, the general characteristics of the applicant pool of applicants, etc., and aren’t necessarily related to qualifications of the individual candidates, per se.

At what point in the evaluation process can you confidently determine whether a candidate might be a good fit for a specific role or organization? Is that generally a factor of your intuition, the actions of the candidate — or both?

It’s usually intuition, and it usually happens within the first few minutes of meeting a candidate. That being said, however, a good recruiter will not be biased by their intuition, and will continue the interview to determine if it was in fact correct. After the interview, a candidate’s actions also come into play. If they follow up too aggressively, or not enough, a recruiter and hiring manager may make determinations about fit from their actions. For example, if a candidate uses emoticons and “LOL”s in their follow-up emails, a hiring manager might deem that person too casual for the company culture.

What are some strategies or tactics that a candidate can use to enhance her appeal — and effectively differentiate herself from others under consideration — in the eyes of recruiters?

Differentiating yourself is about being able to demonstrate capabilities and skills by providing concrete past examples or stories. But in order to get to that phase, you have to find a way in the door. These days, the candidates who have the strongest networks are recommended to hiring managers and essentially bypass many of the earlier steps. Building your network via LinkedIn is absolutely critical to your success in this job market. At the same time, forwarding your résumé to a hiring manager by (e)mail, or just dropping it off at company headquarters, can also differentiate you from the competition.

In evaluating candidates, how much of a premium do you place on an applicant’s ability to “fit in” at a given organization? To the extent possible, should applicants themselves be mindful of that concern and self-select accordingly?

My recommendation to job seekers is to apply to jobs where they match or possess at least 70% of skills articulated in the given job description. Everything beyond that is culture fit, personality, chemistry and sometimes even personal interests. A recruiter is always responsible for evaluating culture fit. You should certainly do intense research on the company and the interviewers to be sure that you are making the right choice for yourself. Being miserable in a job because of a poor fit can be worse than having no job at all. It can affect your health, your happiness and your work history should the employment terminate prematurely.

What are among the most common errors of judgment, communication, or self-presentation that you encounter among job candidates during the vetting process? What are the three most critical things for any applicant to get right during the process? 

I could literally write a book about this — and did!

Résumés often include formatting, grammatical, and spelling errors. Cover letters are fairly generic and are addressed to “Dear Sir or Madam,” or to “Dear John Doe,” instead of to “Dear John,” or “Dear Mr. Doe.” During interviews, candidates frequently have difficulty answering basic interview questions because they may be insufficiently prepared, or are getting incorrect advice.

The three most critical things for any job candidate to get right are:

• A positive attitude;
• An ability to accurately describe your strengths and value; and
• An ability to network with peers and professionals in your field.

Overzealousness or underzealousness — which do you tend to encounter more frequently, and which is the more problematic tendency for a job seeker?

In truth, they are both problematic, and they both seem to be happening quite a bit these days — albeit for different reasons.

Some job seekers have no idea how to sell themselves. They don’t want to come across as bragging so they omit details about their strengths and positive attributes. If job seekers speak with confidence and competence, it doesn’t come across as bragging.

Overzealousness is frequently a response to the challenges of the job market. Job seekers are feeling somewhat desperate, and as a result they call recruiters incessantly to find out the status of their application. Companies want to hire people that have a strong desire to work for them, but desire is very different than desperation.  It’s best that a job seeker have multiple employee prospects at any given time so that they don’t focus on any single opportunity so intensely that it works to his or her detriment.

Have you noticed meaningful differences in the job-seeking approaches or expectations of candidates from Gen X, Gen Y, and Millennials? If no, what may have “standardized” the mentalities? If yes, what are among the more significant differences, what might be the sources of the differences, and in what ways have employers sought to adapt?

The proliferation and popularity of social media and smart phones have created a huge generation gap between Gen X & the others. Recruiters are using social media to recruit and many Gen X’ers are uncomfortable sharing their personal information with the world in the manner — and to the extent — that members of later generations do. For example, some companies only recruit via Twitter, meaning well-developed Twitter profile becomes a prerequisite for employment. Social media, smart phones and texting are here to stay, so if you want to compete in the contemporary job market, becoming comfortable with these new tools and platforms is essential.

Do you find there to be any biases — age, gender, ethnic — that persist, or have emerged, among employers or job-seekers in specific sectors, or the employment landscape at large? If no, what might be responsible for the reforms? If yes, what can job-seekers do to minimize these bias effects?

There have always been biases, but they seem to be more pronounced these days. Many of the unemployed people are fortysomething or older, and they are interested in taking a lower-level position for a variety of reasons. Employers believe that “overqualified” employees are likely to leave the company when the market improves, which is not necessarily going to happen. If overqualified candidates demonstrate a faster learning curve, a genuine interest in the company and the job, and a more substantial ROI, in my opinion employers need to give them genuine consideration.

There are also biases towards the long-term unemployed. These are people whose departments were completely eliminated, who worked for companies that were acquired or were simply poorly funded. Their being laid-off had nothing to with their performance, and they come equipped with references to prove that. Some of these people were fortunate enough to receive a severance package and decided to enjoy life for a while and live off their severance. Employers need to seriously consider the reasons why someone is unemployed. Is it due to their lack of job-performance skills, or is it due to their lack of job-search skills?

Are they any parting words of advice or wisdom that you would offer to prospective job seekers and employers?

Job-seeking skills are not innate; they can be taught and they can be learned. Everyone has a chance to land a desirable position if they learn to play the game effectively. At the same time, employers need to open their minds up to hiring long-term unemployed people who may have been laid off due to no fault of their own. More often than not, those candidates still have a wealth of knowledge and skills to contribute.

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An edited version of this article was originally published on Learnvest.com and Forbes.com in January 2015.

Geriatric Nation: The Aging of America and its Implications for the Young

Chances are that you’ve seen the headlines touting the uptick in “boomerang kids” moving back home in droves post-college — and then staying put with Mom and Dad even after landing jobs.

But there’s a term that some of those Moms and Dads can also call their own: the sandwich generation.

Simply put, members of the sandwich generation have the unenviable responsibility of caring for (and even financially supporting) their kids and aging parents at the same time — and often under the same roof.

And the graying of the nation’s Baby Boomers promises to only make that dynamic all the more prevalent. According to statistics from the U.S. Department of Health and Human Services’ Administration on Aging, the population of Americans aged 65 and older will increase 82% to 72.1 million by 2030 — by 2040, those who are 85 or older will almost triple to 14 million.

So it’s no surprise that a trio of eldercare experts — Danielle Dresden, Phillip D. Rumrill Jr. and Kimberly Wickert — decided to pool their collective prowess on the topic to co-author a new book, “The Sandwich Generation’s Guide to Eldercare.”

Curious to learn more? So were we, which is why creative.reconstruction sat down with the authors to discuss their book and its key takeaways for all those benevolent Moms and Dads out there.

CREATIVE.RECONSTRUCTION: How and when did the idea to write a book about issues confronting this particular “sandwich generation” originate?

DDRESDEN, PRUMRILL, KWICKERT: As rehabilitation counselors, we work with people who are going through medical or rehabilitation services and work with physicians and other medical providers to assist in coordinating and monitoring those services.  We found that even with our background in the healthcare field, it was often overwhelming to navigate through the process of caring for our parents and children at the same time and wanted to share what we learned from our professional and personal experience with others in the same situation.

The book mentions that childcare is comparable to eldercare in certain respects, but also makes clear that eldercare can pose unique care-giving challenges. What would you consider to be the most fundamental first-steps towards adequate eldercare preparation?

Communicating with your loved one about his or her wishes and preferences related to eldercare, knowing his or her medical background, insurance information and financial options related to long-term care.  The Eldercare planning document in our book is a comprehensive and detailed document that allows families to work together to develop a plan and identify all the information needed to provide the emotional, financial, medical and physical support required to do so.

In your research, which dimension(s) of eldercare — the emotional, the financial, the physical, the psychological — consistently proved to be the most challenging for caregivers? Which are the most challenging for care-recipients?

This varies based on the individual caregiver; however, most caregivers find the financial challenges to be the most significant. As relates to the elder-care recipient, this also varies based on each individual’s needs, but in our research — and our own experience — it was the loss of independence and its impact on the emotional and psychological well-being of elders that was a common challenge.

It apparently isn’t unusual for elders to resist the notion of surrendering their care to others, even trusted family members. What strategies have you found to be most effective in managing this tendency? 

Identifying the elderly loved one’s preferences and providing realistic options to meet those preferences whenever possible.  Also, including him or her in the decision-making process whenever possible and appropriate also helps to allow for a semblance of control and create feelings of trust.

Although it’s geared towards caregivers, the book could also function as a primer for current or future eldercare recipients. To what extent is it advisable — or even possible — to allow or encourage elders to become partners in the management of their late-life care?

We encourage the involvement of the elderly family member whenever possible. For example, if it’s been determined by a medical professional that the elder can no longer drive, involving him or her in identifying a plan for transportation that may include friends, family or local transit services may be one way to encourage his or her involvement and allow a feeling of “control” over an otherwise negative situation. That being said, if involving the elder is unhelpful or obstructive to the situation, e.g., choosing a nursing facility for someone with dementia, another way to involve him or her may be by picking out some items to decorate the room once the location has been identified.  Everything should be done on a case-by-case basis as every individual’s needs and situation varies. Talking with a professional about the level of involvement for your elder is an option if you are unsure of how much or how little to include him or her in the process.

What would you identify as the most essential tools or resources to have in hand (or in mind) when approaching the responsibilities of eldercare?

Foremost, in our opinion, would be for the elder to have planned his or her estate by creating a Will, a Living Will, and a Durable Power of Attorney. Two other critical considerations would be to know the elder’s medical history and current insurance coverage (if any), as well as knowing what financial resources the elder’s may have available to assist in his/her late-life care.

Which aspect or dimension of eldercare have you found to be the most consistently overlooked or underestimated by care providers?

The cost of long-term care is often underestimated at the onset of eldercare responsibilities, and in the overwhelmingly majority of cases, preparation for  those costs are overlooked entirely in the earlier stages of the care-recipient’s  life.

The book is filled with accounts of true-life eldercare experiences of varying sorts. Are there any that stand out as being particularly instructive or revealing? 

We used the stories of Joseph and Adaline to help illustrate an important consideration in eldercare: Namely, the unique nature of every case, situation and circumstance. While Joseph and Adeline were diagnosed with the same condition — dementia — the intensity, persistence and urgency of the disease’s effects varied on a general as well as on a day-to-day level.

How does American society’s “attitude” or commitment to eldercare compare to that of other industrialized nations? What types of social or policy reforms would you say are in order domestically?

America is actually among the world leaders in terms of eldercare availability and optionality. Many countries lack the variety of long-term care options — home-care, assisted-living, skilled nursing-care — that one finds in the U.S.  In some nations, there’s a cultural expectation that the elderly will remain in the family’s home and be cared for by family members, even if the quality of that care is inferior to what might be available in an affordable facility. In terms of reforms, it would be valuable to grow awareness of the fact that our nation’s core eldercare program, Social Security, was developed when white American males (the source population of the relevant studies) rarely lived beyond their early 60s. As the nation’s average life expectancy continues to extend (it’s currently about 76 for men and 81 for women), existing social policies and services may need to be reformed so as to help provide care to individuals for longer periods of time and later in life.

What parting advice would you give to current sandwich-generation members to best prepare themselves for the challenges of providing — and in time receiving — eldercare?  

The best thing to do is to plan for any future eldercare needs — not only for your elderly loved one, but for yourself as well. It’s also important to be mindful of the fact that the process of providing and receiving care is a dynamic one, meaning that as we continue to age, our needs change. So while it’s also advantageous to have a plan in place, it’s very important that the plan allow for some flexibility, and that those who may be managing the plan understand that changes will be necessary and ongoing.

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An edited version of this article was originally published on LearnVest.com and Forbes.com in February 2014.

Money and the Human Mind: 10 Questions for a Financial Therapist

All across the country, people are sacrificing their lunch hours and rushing from work to make it to their therapist appointments. But in today’s uncertain economic times, some of these sessions have taken on a decidedly unique focus: tackling financial baggage.

The licensed professionals who offer this type of counseling are known as financial therapists, and they’re tasked with unearthing the emotional triggers and psychological underpinnings that can lead people to make bad — and often habitually so — money decisions.

If you haven’t heard of this curious branch of therapy, you’re not alone. The Financial Therapy Association was only established in 2010 — yet it counted nearly 300 members by 2011.

We were intrigued by this fast-growing field of holistic treatment, so creative.reconstruction took a seat at the couch of Amanda Clayman — a New York–based financial therapist who’s spent the better part of the last 10 years unraveling the mysteries of financial psychology — to find out what the profession is all about.

CREATIVE.RECONSTRUCTION: So how is “financial therapy” different from traditional therapy?

AMANDA CLAYMAN: Financial therapy differs from general psychotherapy only in that it’s focused on enhancing financial well-being through the study of the emotional, behavioral, cognitive, relational, economic and integrative aspects of financial health. In practice, it integrates financial counseling and planning with personal counseling, marriage and family therapy, sociology, social work, and, of course, psychology. Also, good financial therapy happens in collaboration with finance professionals, such as tax experts and investment advisers.

What types of financial-psychological problems do you typically encounter in your work?

With my clients, some of the most common issues that come up center around problems with managing cash flow and debt, chronic under-earning or overspending, making emotion- and anxiety-based financial choices, as well as allowing money to become a source of conflict in relationships.

The issues themselves are fairly classic in that whatever is happening inside a person will find expression in how they think about and use money. So my approach is to focus on behavioral change — actually altering what patients do with money, rather than just look at how they feel or think about it.

How can you tell if someone might need financial therapy? Are there certain red flags?

Warning signs occur with regularity and include committed relationships that routinely end due to money conflicts; talented individuals who are incapable of supporting themselves, despite all logical advantages; and people who diligently pay down debt — only to start incurring it again.

The manner in which someone approaches financial decisions can also be a warning sign. For example, is money management a consistent part of a person’s life — or does she only deal with money when a crisis arises? Is she able to tolerate the emotions that arise when she’s trying to process options, make choices and follow through?

Are there any personality types that tend to be more susceptible to financial-psychological issues?

It’s important to note that no one is perfectly balanced or completely rational when it comes to money — and that isn’t unhealthy. However, highly anxious people often have a hard time building calm, deliberate money-management habits. To act reasonably, you must first neutralize the effects of stress — you can’t work through money challenges in the throes of anxiety because you aren’t thinking rationally.

That being said, people who have difficulty with self-regulation are also more prone to financial issues. Money can easily become one of the various tools — just like food, alcohol, drugs, sex and exercise — that enable dysregulation. In the case of money, that can mean spending too much and saving too little. The difference with money is that there’s no such thing as total financial “abstinence,” so these tendencies need to be treated much like any other process disorder to return to a healthy balance.

Is financial therapy recognized by the psychiatric establishment?

Currently, most financial issues in the DSM would go under Axis IV: Psychosocial and Environmental Problems. Issues with money aren’t considered a discrete mental health disorder, so they’re not subject to diagnosis and treatment — unless they are tied to another issue, like a mood disorder.

The field of financial therapy is still very much in its infancy, especially in terms of its relationship to other mental-health professions. And there’s considerable debate within the field about who should be able to call themselves a financial therapist, and whether we need a separate credentialing process and code of ethics.

What about financial-literacy education? Could that work as a substitute for financial therapy?

Financial literacy cannot be separated from financial therapy. Sound choices can only proceed from accurate information. However, financial literacy programs rarely focus on behavior, resistance to change, or relationship issues.

Financial literacy is certainly helpful, but a thorough understanding of compound interest will be of little help in treating a compulsive shopping addiction — or in aiding a person who sabotages her financial security because she was raised to believe that wealth is evil. Financial behaviors tend to be more emotional than rational. So we need to be more emotionally literate in addition to being more financially literate.

Are there risks in allowing financial-psychological issues to go untreated?

Psychological problems often manifest in money: An issue with self-worth will often show up as under-earning. Someone with narcissistic tendencies might assume an unsupportable amount of debt — and then resent having to be responsible for it. Money’s prominence means that, in some form or another, financial behavior becomes an expression of our internal psychology.

And in much the same way that money problems arise from a series of small hurts and disappointments that accumulate over time, the consequences of these problems build in a similar way. One of particular note? Relationship issues.

A fair percentage of my practice is couples-based, and there’s typically a clashing of viewpoints that they can’t resolve on their own. As a financial therapist, I seek to uncover underlying tensions. It’s in times of stress or conflict, when the couple isn’t sure how to use their strengths in better harmony, that the process of compromise breaks down.

Can you share an example of how you helped a patient overcome psychological issues related to money?

I worked with a client who struggled with anxiety and questions of self-worth. She felt deeply ashamed if she spent money on anything for herself — behavior that stemmed from issues related to her upbringing. So we worked on creating order and safety in her financial system by helping her to better manage cash-flow and debt obligations. Once we established stability, we adjusted her spending to include planned indulgences, which reinforced that it was OK to use money as a means of self-care.

Are there any strategies that people can use to strengthen their own financial psychology?

I’d recommend being attentive to your money-management practices and financial “hygiene.” In the same way that sleep can be improved with a consistent bedtime, you can decrease money anxieties by having a regular, orderly financial routine.

Also, try to create a framework for as many financial decisions as you can before you find yourself in a bad situation. If you have a friend who undermines your efforts to live on a budget, have a plan in place for what to say to that friend before the conflict occurs. If you’re expecting a tax refund, draft a plan for how to spend the refund before the money is in your hand. We all behave differently under pressure, so rehearsing a response can be extremely helpful in managing that situation.

What, to your mind, constitutes a healthy approach to finances?

My goal is to promote a client’s financial wellness, which I define as understanding and accepting the role that money plays in everyday life. That includes feeling competent in making money decisions, having financial integrity when it comes to personal relationships, and, most important, possessing financial awareness. Ignoring or behaving impulsively with money is at the root of many financial issues. Sound financial health isn’t about building wealth, per se, but about self-care and self-determination.

For more information on the field of financial therapy, or to find a list of registered financial therapists in your area, visit the website of the Financial Therapy Association (and click on the “FTA Network” tab).

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An edited version of this article was originally published on Learnvest.com and Forbes.com in October 2013.

Defying the Debt: Secrets of a Student Loan Consultant

Ever since he was a kid, John Smith knew that his calling was in medicine. But while Smith didn’t have to struggle with the ubiquitous “What am I going to do with the rest of my life?” question, the newly minted M.D. has struggled to pay off his high-interest-rate student loans.

The problem? Although Smith never missed a payment on his student loans, he was frequently unable to make the entire monthly minimum payment. And whenever he asked his lender to consider renegotiating that amount, the answer was no — and the lender eventually turned his account over to a collections agency that began making threatening calls to his dad, who’d co-signed the loans.

If his student loans had been issued by the federal government, Smith would have had the option to make affordable, income-based payments until he finished his training and his salary increased. Unfortunately, his loans were issued by private lenders, and they rarely agree to reduced payments — even temporarily.

Heather Jarvis knows these stories all too well. The North Carolina–based attorney and student-loan consultant has spent the last ten years advocating for — and educating — student borrowers. And given that interest rates on federal Stafford loans doubled to 6.8% on July 1, 2013, there’s likely be a lot more advocating and educating in her future. creative.reconstruction sat down with Jarvis to learn more about student loan consultants — a profession that, not surprisingly, is in high demand.

CREATIVE.RECONSTRUCTION: What exactly is a student loan consultant?

HEATHER JARVIS: As many of us know, the earlier that students and families start to think about how to manage college costs, the better, but my focus is to help people figure out how to deal with the student loans they have already accumulated. I do this by, among other things, educating universities, associations and professional advisors about student-loan repayment and forgiveness programs.

Although my focus is on training student loan officers, student loan consultants work one-on-one with borrowers to create customized repayment plans. Their advice and advocacy can be valuable, but I encourage people to carefully evaluate their options before hiring someone. There are an increasing number of businesses that are preying on borrowers’  anxieties and fears by charging them for so-called “special” programs that are actually open to everyone. So be sure to ask questions about a consultant’s education, experience and compensation — as well as investigating their track record with the Better Business Bureau.

How does a student loan consultant differ from a student loan officer who works for a college?

For one, advisors who are independent of a particular university are more likely to point out the importance of considering cost when choosing a school. Also, compared to a student loan consultant, university-employed financial-aid professionals are busy administering the financial-aid programs (including student loans) that people will use to cover their educational expenses, so they’re not typically as focused on helping students or graduates deal with how they’ll repay those loans once they finish school.

Private vs. federal loans: What’s better for the typical borrower?

Definitely federal. Private student loans [those issued by private banks or lending institutions] are typically more expensive and risky for student-loan borrowers because they lack the borrower protections and flexible repayment provisions of federal student loans. And although some borrowers with excellent credit might find private loans with lower interest rates, those rates are often variable and are almost certain to go up over time — sometimes without any cap. Additionally, the most generous debt-relief programs, like income-based repayment and public-service loan forgiveness, are only available to recipients of federal student loans.

Is there ever a point at which you advise people to forgo additional student loans to avoid taking on more debt? 

I don’t look to establish an absolute threshold with my clients, but I do advise them to consider two key things: The first is that many experts caution strongly against borrowing more than you expect to earn in your first year of postgraduate employment. And the second is that borrowing over the limit on federal student-loan programs — up to $57,500 for undergrads and $138,500 for graduate and professional students taking out Perkins and Stafford loans — usually means not just greater debt, but worse debt that lacks the flexible payment provisions and protections of federal student loans.

What percentage of a person’s gross income is a reasonable amount to pay each month toward a student loan? 

In general, the longer it takes to repay debt, the more the debt will cost over time, so there are distinct advantages to repaying debt fast … if you can. That said, you need a monthly payment amount that you can afford, and determining which repayment strategy is best for your circumstances depends on a lot of different factors, including total debt burden, income and projected future earnings.

Income-based repayment plans can help a lot of people with federal student loans, and they are surprisingly underutilized, in part because they can be tricky to navigate. These “pay-as-you-earn” plans set monthly payments at 10 or 15 percent of someone’s “discretionary income,” which is calculated based on adjusted gross income and family size. They are particularly good options for people who have relatively high debt-to-income ratios, and for people who may benefit from the relief afforded by public-service loan forgiveness, such as borrowers working in government and the nonprofit world.

Are there any instances when deliberately defaulting on a loan can work to a borrower’s benefit?

Not many. Defaulting on federal student loans triggers the government’s significant collection powers: wage garnishment, tax-refund intercepts, social security seizure, and huge penalties and fees.

You won’t hear this from your lender, but I can imagine scenarios in which it makes sense to stop paying a private student loan. If a person simply can’t pay every bill that’s due, it makes sense to first cover basic needs like housing, food and utilities. With the exception of the special treatment that private student loans enjoy in bankruptcy proceedings—in 2005, the bankruptcy restrictions that were conferred upon federal student loans were expanded to cover private ones, as well — these loans aren’t much different than other unsecured consumer debt.

Is it ever worth it to take on a big amount of student debt today for the promise of higher earnings tomorrow?

Debt is not to be taken lightly — it has significant and lasting consequences. However, education is highly valuable and arguably more important than ever — people with post-secondary degrees continue to have lower rates of unemployment and higher earnings over time. Of course, for many Americans, higher education is impossible without taking on debt, so I encourage clients to carefully consider what they can afford, borrow only what’s necessary, and look at federal loans first.

Do you believe the student lending industry is broken — and, if so, can it be fixed?

We have a debt-based system of access to higher education, and I’m concerned that students and families are assuming unmanageable student loan burdens that make it hard to save for retirement, qualify for a mortgage or start a new business.

So I’d like to see an increased emphasis on improving affordable educational alternatives (such as innovations that leverage technology, like Massive Open Online Courses or MOOCs), a simplification of federal student-aid programs, and better accountability in the student loan “servicing” provided by companies that handle billing and are usually prone to error. Although I’m encouraged to see increased interest in these policy issues among elected leaders, I haven’t started holding my breath yet. But over time, and with continued commitment, I believe that meaningful reform is possible.

Are there any resources, strategies and tools that you’d recommend to borrowers who are deep in student loan debt?

There is nearly always something that can be done to fix a federal student-loan problem, but the system is overly complicated — and the details matter.

Everyone should start by getting a clear inventory of their loans. For federal student loans, you can check out the National Student Loan Data System. And for private loans, you can consult AnnualCreditReport.com.

Other great resources to explore include  StudentAid.ed.gov and StudentLoans.gov, which are both managed by the U.S. Department of Education and provide descriptions of the various federal-loan repayment plans, as well as offer calculator tools to help estimate future payments. And StudentLoanBorrowerAssistance.org, managed by the National Consumer Law Center, is especially useful for borrowers facing financial distress, student-loan default or collections issues.

In your experience, are college-bound students today any more aware of the perils of taking out student loans?

Yes, I find that students and families tend to be more committed to evaluating their options for financing higher education. But it remains the case that student loans are excessively convoluted — even the most sophisticated students and graduates struggle to navigate the system. So increased awareness of the perils doesn’t necessarily mean an increased ability to avoid the perils.

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This article was originally published on Learnvest.com and Forbes.com in July 2013.

 

Motivating a Team of One: 10 Questions for a Career Coach

It’s no secret that it’s still a pretty tough job market out there—both for people who are completely without work and those who have jobs but certainly not the dream careers that they desire.

For some perspective, according to the latest unemployment data, some 11.8 million people are out of work in the U.S. And although there are no real stats to measure these folks, there are likely millions more who have gigs that they’d very much like to leave. Yes, that kind of tough.

Fortunately, there are a growing number of professionals out there who can help make your search a bit easier—people like Donna Sweidan, a certified career coach with over 15 years of experience in the field and the founder of careerfolk.com.

Creative.reconstruction sat down with Sweidan to uncover the art and science of career counseling—as well as to better understand how a career coach can help prep you to compete against those millions of fellow job-seekers.

CREATIVE.RECONSTRUCTION: First off, what exactly is career coaching?

DSWEIDEN: In my work, I approach it as a discipline comprised of two similar but distinct tracks: coaching and counseling. The goal is to support people in making informed decisions about their career development and trajectory, as well as offer various tools that they can use—résumés, cover letters, LinkedIn profiles—to meet those goals.

Although not all career coaches have clinical training, as I do, definitions of the field—and the work—may still vary among more conventionally trained coaches. In general, “coaching” tends to be a solution-oriented approach, which involves working with clients to see what concrete steps they can take to achieve career objectives. “Counseling,” however, is more process driven—you look at whether there are any behavioral, emotional or psychological issues that could be impeding a person’s desired career ambitions.

But the core virtue of career coaching is to help people assess their professional situations with a greater degree of honesty, curiosity, empathy and compassion.

What are the most common misconceptions about career coaching?

My top three? That a well-done résumé is all you need to conduct an effective job search—and that career coaches will actually find you a job. There’s also the popular notion that you only have to attend a single career-coaching session … and your job challenges will be resolved. It actually takes about eight to 10 hours of counseling for the typical client to begin internalizing the key benefits of coaching.

What can the average person expect to get from working with a career coach?

By and large, clients can reasonably expect to gain career confidence, insight, encouragement and inspiration. They should also feel as if the coaching relationship grants them some permission to relax a bit. The job search can create a fair amount of anxiety, fear and vulnerability in people, and I often work with clients to unwrap those emotions so they can better understand how these factors may be keeping them stuck in their careers.

A recent client of mine couldn’t break the pattern of just submitting resumes to online job postings—even though little came of it. After some prodding, she revealed that, because her parents both had bold personalities, it was her tendency to hold back. She struggled with being assertive, she was reluctant to ask for help and she was scared of rejection. I had to encourage her to develop the confidence that’s essential for networking—the piece of the job search that she was avoiding.

There are also a number of assessments that career coaches can use to help clients, such as personality tests, interest inventories, accomplishment exercises that identify what people are most proud of and job-description analyses that can pinpoint the kind of work and workplaces that are the best fit for someone.

I also use what I call “360s,” which involves getting constructive feedback from family and friends. I often ask clients to circulate a list of questions to colleagues and loved ones, and then I have the replies sent directly to me, so I can compile a report for the client to review—and hopefully contemplate.

At what point in a person’s professional life is career coaching likely to be most useful?

While I believe that career coaching can be helpful at every point of someone’s professional path, I would say that good career coaching in the early years of college or immediately post-college can put individuals on more solid footing—not just with a well-crafted résumé and a suitable career path, but also with a mindset that helps them understand that the career path of today is not as direct as it might have been in previous generations.

Are there certain career frustrations that you hear most often from clients?

It should come as no surprise that I hear, “I hate my job, but I don’t know what else I can do!” But what might be a bit surprising to some is that I also tend to hear things along the lines of “I have no idea what I can do with these skills,” and “I need help pinpointing what exactly I want to do—and how to get there.”

Job-search anxiety is also something that I frequently encounter. And, as of late, an ever-increasing number of clients express frustration with using social media, especially LinkedIn, as an aid in their career goals.

Take a recent client of mine—a former stay-at-home mom who was motivated to return to work, but was reluctant to use social media in her job search because she doubted its usefulness. After a few sessions of showing her how a community of like-minded people used such networks to get their message out, she came around to the idea. Within a year of working together, she landed a coveted job as a national outreach director—and she attributes it largely to her social network.

Organizational culture or employee attitude—which bears more on a person’s sense of job satisfaction?

In my opinion, organizational culture is the greater factor. Zappos, LinkedIn and Google are all organizations that are proactive in fostering a positive, relaxed, non-hierarchical and generally enjoyable work environment. These companies encourage employees to do things beyond the work, whether it’s active volunteering, getting coaching or simply creating better work-life balance. All of these factors are bound to improve a person’s sense of work satisfaction, provided that they are in the right job to begin with.

Be honest: Who’s your dream client?

Someone who is open to new ideas, willing to step out of his or her comfort zone and motivated to embark on the work that makes up the job-search-and-career-change process. What’s more, a good client allows the coach to be a partner in that process. It’s actually essential because there are so many tricky steps along the way, whether it’s the tough job market or a very lengthy career change. So clients should reach out for as much help as possible—from the coach and from everyone else in their personal or professional networks—in order to succeed.

At what point might the usefulness of career coaching diminish?

There are certain factors that can impede the utility of the career-coaching process from the outset, like unchecked anxiety, depression, low self-confidence, fear or general resistance to change. I will often ask, “Do you think that you may be depressed?” And the person will acknowledge it—often for the first time. I had one client whose spouse didn’t even recognize the severity of his depression! I recommended that he seek medical attention, and within about a month, he was truly motivated to focus on his career.

Aside from those things, if and when—for whatever reason—clients are no longer doing the work required to conduct a thorough job search or make the desired change, the utility of career coaching will also decrease.

I have a client who’s currently in this situation. He knows what he wants to do, but for some reason, he’s sabotaging the process by not heeding my advice to revamp his résumé and network effectively. He applied to what he considered to be his ideal job, but because he failed to follow up and network, the opportunity disappeared.

What brings you the most satisfaction as a coach?

Nothing compares to having clients gradually recognize that there’s hope in their situation, particularly after having started the process feeling lost and hopeless. I’ve seen people go from feeling completely disenchanted with their career or job prospects—even apathetic and unmotivated to change their circumstances—to feeling freshly inspired and motivated to move forward with new ideas.

If you could identify a “Golden Rule” of career satisfaction, what would it be?

If you are doing something you really, truly enjoy, it shouldn’t feel like work at all. Ideally, you should feel a sense of alignment between your work and your values.  It’s only in that space of overlap—which may or may not relate to your sense of purpose in the world—that a genuine sense of career gratification or fulfillment becomes possible. If you want a job that brings fulfillment, then aligning your work with your values is essential. If you already derive fulfillment from work, then your work is probably already an extension of your values.

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This article was originally published on Learnvest.com and Forbes.com in July 2013.

The Dark Side of the Hippocratic Oath: Medical Malpractice in the Age of Litigation

In recent years, the state of healthcare in the U.S. has been one of the most oft-cited subjects in the national discourse. And as the nation’s Boomer population continues to age, healthcare — its cost, its accessibility, its importance — will become an increasingly significant concern for American adults of every generation.

Among the less-considered pieces of the healthcare puzzle, however, is the capacity of well-intentioned physicians to occasionally make diagnostic and prescriptive errors — errors resulting in considerable injury to their patients; errors constituting medical malpractice.

In an effort to better understand the complexities of identifying, and the challenges of litigating, medical malpractice, creative.reconstruction sat down with Jason Konvicka, a partner in the Virginia-based law firm of Allen, Allen, Allen & Allen. Named as one of the state’s “Super Lawyers” and included in the Best Lawyers in America, Konvicka — a seasoned trial attorney with roughly 20 years of experience in personal injury law — has won some of the largest personal-injury awards on record in the state, and recently secured the largest malpractice award in Virginia state court history.

Below, Konvicka shares his insights on troubling trends in the medical establishment and offers advice on the ways in which individuals can help lessen the risk that they’ll ever encounter medical malpractice — whether in their own healthcare, or in the healthcare of their families and friends.

CREATIVE.RECONSTRUCTION: As a practical matter, what is the legal definition of “medical malpractice”?

JASON KONVICKA: Medical malpractice occurs when a healthcare provider deviates from the recognized “standard of care” in the treatment of a patient. The “standard of care” is defined as what a reasonably prudent healthcare provider would or would not have done under the same or similar circumstances.  In essence, it boils down to whether a healthcare provider was negligent.

How might a patient determine whether s/he has experienced medical malpractice?

A malpractice claim exists if a healthcare provider has been negligent and that negligence causes injury or damages to a patient. However, experiencing a bad outcome is not always proof of medical negligence. Also, on occasion, healthcare providers will inform a patient that s/he has received negligent medical care. It’s vital to note that the prosecution of medical malpractice cases — in addition to having a high likelihood of failure — can be extremely expensive, stressful and time-consuming. Consequently, most experienced medical malpractice attorneys will not pursue a case unless the injuries and damages documented in the records — after having been reviewed by an expert — are substantial and justify it.

What are some advisable first steps in exploring redress if a patient suspects that s/he has experienced medical malpractice? Is there a statute of limitations that applies?

If a patient suspects that s/he has been harmed as a result of medical malpractice, contacting a seasoned malpractice attorney should be the first step. A thorough review of the case details — interviews of the patient, family member, friends; securing the pertinent medical records — should be conducted by the attorney to determine whether the case is actionable.

Statutes of limitation — deadlines by which a lawsuit must be filed or be permanently barred — differ from state to state, as do the procedural requirements that must be met before a medical-malpractice lawsuit is filed. It is always best to seek guidance on such matters from an attorney licensed in the state where the alleged malpractice occurred.

What, if anything, can patients do to lessen the likelihood that they’ll experience medical malpractice?

Being proactive about one’s medical care is undoubtedly the best step.  Patients should attempt research and understand their health condition, document their symptoms, ask their healthcare providers a written list of questions they feel are important, and expect — indeed, demand — full and complete answers.

Not allowing oneself to be intimidated by the medical system is also critical.  Speak up and advocate for your own wellbeing. If patients sense that something is wrong, they should tell — or ask — their healthcare providers.  Although it is important to trust one’s doctor or nurse, it is also important to listen to one’s body and use common sense. Having a family member or friend present during important visits to healthcare providers is also advisable.

In your years of practice, have you detected any shifts in the handling or perception of medical malpractice by the courts, the medical establishment or the general public?

Proponents of “tort” or “malpractice” reform often argue that there are too many medical-malpractice claims. In reality, the number of such claims is declining.  Also, most medical-malpractice claims never result in an award.  Despite this, the perception of “lawsuits gone wild” exists. As a result, many states have imposed substantial limits on damage awards in medical-malpractice claims. These award limits typically have the greatest impact on patients who are most gravely hurt — those with catastrophic injuries and a lifetime of future medical needs. And patients who are denied justice in the courts must rely on health insurance and, in many instances, public programs such as Medicare or Medicaid to pay their future medical bills — leaving the cost of medical malpractice to be borne by the public instead of the responsible party.

What are some of the most common reasons that legitimate medical-malpractice claims go unexplored?

Patients choose not to pursue valid medical-malpractice claims for numerous reasons:  Some are concerned that other doctors will learn of their cases and refuse to treat them; others fear that it will lead to an increase in the cost of their medical care. Still others forgo valid claims due to the perceived personal and financial costs associated with litigation.

Are there any types of medical procedures that you consistently discover to be at the root of medical-malpractice suits?

In my experience, it’s the healthcare provider’s mental state far moreso than the type or severity of a given procedure that’s relevant to whether a mistake occurs.  Complacency often leads to errors.  Likewise, “tunnel vision,” or the failure to look at the big picture, can also lead to medical mistakes.

In your years of practice, are there any cases or incidents that you found to be particularly instructive? Why (or why not)?

Although the medical school adage of “treat the patient and not the test” has value, it’s also important for healthcare providers to carefully assess the information provided by the tests they order.  I’ve witnessed many instances in which highly abnormal test results were either interpreted incorrectly or disregarded by physicians — sometimes with fatal consequences.

To what extent, if any, have your experiences as a medical-malpractice attorney affected your perception of doctors and the medical establishment?

If anything, I’ve more respect for doctors and the challenges they face.  However, I don’t believe that doctors should be treated differently than others when they make mistakes causing serious harm to patients.  With regard to the medical establishment, I’m a bit more jaded. Hospital systems and health-insurance companies significantly impact the quality of medical care that patients receive, and, in my opinion, that impact is not always for the best.

Do you have any parting words of advice for LearnVest’s readership?

Don’t be afraid to get a second opinion.  Further, don’t be afraid to find a new doctor entirely if you don’t feel that you are receiving proper medical care.  Your health is too important to place in the hands of a healthcare provider that hasn’t earned your confidence, is not answering your questions, or is not giving you — or your condition — adequate time and attention.

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An edited version of this article was originally published on Learnvest.com and Forbes.com in May 2013.

What Happens After Retirement? Setting the Stage for a Second Act

As America’s celebrated “Boomer” generation nears retirement age in the aftermath of a historic economic downturn, the process of shifting into an unfamiliar, post-career stage of life is certain to become a subject of heightened interest and no small measure of national concern.

In homage to this phenomenon, Nancy Collamer has recently published Second-Act Careers: 50+ Ways to Profit from Your Passions during Semi-Retirement, a thoughtful, thorough primer on the rich landscape of opportunities that await Boomers in post-retirement — and strategies they can use to ease the transition by making the most of their pre-retirement careers.

Ms. Collamer spoke recently with creative.reconstruction about researching the book and some of the truths she uncovered in the process.

CREATIVE.RECONSTRUCTION: What was it that initially inspired you to write a book about semi-retirement careers?

NANCY COLLAMER: There were two major factors: personal and professional. On a personal level, after losing my mother and settling her estate, my husband and I decided to meet with a financial planner. This was not long after the ‘08 financial crisis, and our savings portfolio had been severely impacted. Despite the fact that we’d always done what the experts had advised — living below our means, maximizing our 401k contributions, etc. — we learned that under certain circumstances, we could conceivably run out of money in our later years. That got me to wondering about the circumstances of average Americans. I did a bit of research and was pretty shocked to discover just how many people will need to work well past the traditional retirement age of 65. I realized then that the need for a book like this one was very strong.

On a professional level, I’d been a career-coach for over 15 years and my specialty was the area of flexible work — i.e., generating income by using your skills and talents on a part-time or flexible basis. When I took a look at what was being generally recommended for Boomers, I was seeing one or two lines of thinking: Either the “go buy a vineyard and live off the land” type of dream – not realistic for most folks; or the “be an usher at a movie theater/greeter at WalMart” type advice . I thought to myself that there are so many other things that people could be doing to generate additional income during retirement, and the book was born.

What were some of the more persistent individual anxieties and insecurities that you encountered in your research for the book?

Probably the most overriding feeling I encountered was fear. Fear is just part of change; it’s commonplace for people going through some type of transition to feel anxiety or fear. But as a therapist once explained, fear is oftentimes just an acronym for “false evidence appearing real.” What I discovered in the more successful “second-act”-ers was that, even though they felt as much fear as the next person, that they didn’t let the fear stop them from moving forward. They overcame their fear by taking small steps — gaining skills and knowledge. As they gained competency in their new worlds that gave them confidence that helped them overcome their fears.

Another anxiety I heard expressed was rooted in the reluctance people tend to have of letting go of their old roles and identities — to go from being a VP with certain level of prestige to, for example, starting your own business from scratch takes a bit of an ego-adjustment for most people.

Are there any patterns or traits — behavioral, mental — that you’ve detected among the more successful “second-act”ers?

The first would be that willingness to move past old roles. They were the ones who’d achieved some measure of success in the first-act and were more willing to explore long-held interests with less concern about whether the new course was as prestigious as the old course. Another would be a willingness to ask for help. One of the challenges in getting into a second-act career is that you sometimes have to take a step backwards. People that succeeded at transitioning saw that as an opportunity to learn; they embraced that new challenge. These people recognized that risk is part of transition, and failure is oftentimes part of the process. And with these people, there were failures. But these failures were learning experiences and they moved on from that.

To what extent might those tendencies be intrinsic? Are you confident that that the bulk of them can be learned — even later in life?

Certain people are more inclined to think positively than others. An optimistic outlook on life is partly determined by one’s genetics. It’s also clear that there are things that all of us can do to help improve our attitudes: exercising, getting outdoors to enjoy the sunshine — and this next one’s really key — limiting one’s daily intake of negative news and media. Try to focus on the positive news and stories that are out there — in the book I outline a number of resources one can turn to — read stories about people who have successfully created their second-acts. These stories help to create a feeling of possibility and probability that you, too, can be successful at this. So people can, with just small behavioral changes, really increase the odds of creating a positive attitude which in turn helps increase the odds of having a favorable outcome.

The book is filled with actionable suggestions for individuals who might want to consider specific second-act careers. Broadly speaking, which would you identify as the three suggestions most vital to a successful, late-stage career transition?

Invest in your success. Recognize that the process is going to take time and money, but keep in mind that the second-act could easily last for 20 years. Think about what you spent on your children’s education or on your last vacation and just put a tiny portion of that into your own personal-investment fund.

Surround yourself with support. It’s an effective way to learn about ideas and opportunities. There’s no bigger dream-killer than isolation.

Focus less on finding a job and more on filling a need. Many of the opportunities aren’t necessarily things you’ll find in a job listing; they’re things you’ll create on your own, project work you do for others. The latest statistics show that about a third of Americans are working in something other than a full-time job; they’re working part-time, consulting, freelance, running their own business, etc. It’s very clear that over time those numbers are going to increase.

Of all the subjects you interviewed and personal stories you recounted for the book, are there any that struck you as being particularly instructional or inspiring?

I had to pick one, it would be the story about Joe Adamson — the man from Oklahoma who became the power-seller on eBay and now teaches other people how to earn a living on eBay. He was an executive and became disabled literally overnight. He spent months doing nothing because he was paralyzed with fear and didn’t know what to do next. Eventually he said “I’ve got to pull it together.” And he did it by analyzing his skills and focusing on what he could do as opposed to his limitations. Once he started selling via eBay he become more involved in the eBay community — taking online courses, joining forums, attending conferences, etc. He’s someone who’s successfully used online and in-person methods to build a community and grow his business. I also love the fact that he now dedicates some of his practice to helping others in difficult situations to get back on their feet through sharing his knowledge, expertise and resources.

At what point in a person’s “first-act” career trajectory — be it chronological, financial or psychological — would you say is the ideal time to begin contemplating and exploring second-act career possibilities?

Ideally, I’d say three to five years before you’re getting ready to retire is a great time to begin this process. That might seem like an over-long time-frame, but the reality is that the more time you allow, the more flexibility you’ll have to explore, research, test-out and refine your plan. It’s also important to keep in mind that it may be a while until you can generate meaningful income via a new career. The more time you allow yourself to save money, the more time and flexibility you’ll have to retool and retrain. Also, if you start thinking about the process and decide what it is you want to do while you’re still employed, you might be able to take advantage of employee-sponsored training programs, workshops and conferences, and that can be of great benefit in helping you get that new career off the ground.

In reading the book, I found myself thinking that much of your advice was transferable to anyone seeking a career-change, regardless of their life stage. Would you agree?

I agree. I think that the five-step career-reinvention process that I outline in the second-half of the book is as applicable to someone in their 20s as it is to someone in their 50s. That said, I don’t want to be misleading: ideas for generating part-time or supplemental income aren’t likely to be feasible for younger people. But certainly the reinvention process itself is absolutely applicable.

In your research, have you found any specific industries or sectors to be more receptive to semi-retired/retired persons?

I think any of the sectors where the characteristics of being someone older — experience, maturity, strong work-ethic — can play in your favor will be more receptive. The healthcare industry would qualify, as would sectors that seek tour directors — many of the tour-goers will be older people. I’ve devoted a full chapter of the book to identifying various service industries where age can play into one’s favor. Education, to some degree, is another. A teacher who brings 20–25 years of life-experience to the table can be helpful. But the main thing is to remember that there are many different types of jobs and businesses where your maturity, contacts, accomplishments, and range of experiences will be attractive to a lot of clients.

What parting words of advice or encouragement do you have for readers?

Thing big, but act small. Start by creating a big picture of what you want your life to look like in semi-retirement, and then take small actions on a regular basis — signing up for a workshop, taking a class, brainstorming with friends, volunteering — to begin to build that dream. Regular, consistent, small actions over time add-up to big change. As you begin to take those actions and put yourself out there, you’ll see reinvention magic really will happen.

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An edited version of this article was originally published on Learnvest.com and FoxBusiness.com in March 2013.

The Secret Life of Naomi Campbell

In 1985, while window shopping outside of a London department store, Naomi Campbell, a 15-year-old schoolgirl, was discovered and signed to a professional modeling contract. Lithe-figured and strikingly exotic, Campbell’s early stint on runways throughout Europe soon led to higher-profile ad campaigns for internationally recognized brands, and little more than a year later, the cover of Elle Magazine — an honor that effectively introduced her to the world.

In the years that followed, mentored and championed by many of the most iconic names in fashion — Lagerfeld, Yves Saint Laurent, Versace, Galliano — Campbell overcame the racial discrimination of the modeling world and scored a number of firsts for a woman of color: appearing on the cover of French, British, Japanese and Chinese Vogue and being the featured model in spreads shot by the industry’s most renowned fashion photographers.

By the mid 1990s, Naomi Campbell had become one of the world’s most recognizable faces — appearing frequently in pop music videos, films and TV shows; becoming the featured model in international ad campaigns for Versace, Ralph Lauren and Dolce & Gabbana — and in the process, secured a place in the pantheon of the famed “supermodels.”

But while beauty and fashion were Campbell’s ticket to fame and fortune, and while her celebrity has fueled the media’s lurid fascination with her private life, far less public — far less celebrated — are the many charitable and humanitarian causes upon which Campbell has brought her celebrity to bear, and for which she has been honored the world over.

Since 1997, Campbell has supported charity work focused on the peoples and communities of Sub-Saharan Africa and South America, via organizations like the Nelson Mandela Children’s Fund, Breakthrough Breast Cancer, Quincy Jones’s Listen Up Foundation, the United Nations Education Scientific and Cultural Organization (UNESCO) orphanage in Jamaica, Fidel Castro’s Cuban Children’s Fund and We Love Brazil, which she founded for the nation’s children, and for which she was named International Ambassador of Rio de Janeiro.

In 2005, Campbell created Fashion for Relief, raising $1M for victims of Hurricane Katrina. In 2007, she hosted the South African leg of Live Earth in Johannesburg; she also received the Black Retail Action Group (BRAG) “Special Recognition Award” in honor of her efforts to promote acceptance of men and women of color throughout the fashion industry. In 2009, Campbell was awarded the Honorary Patronage of the University Philosophical Society from Trinity College, Dublin for her charitable and professional work; she also received the “International Woman of the Year” award from Russian Glamour. And just last year, at its famed Charity Gala for Children in Need, Campbell received the United Nations Education Scientific and Cultural Organization (UNESCO)’s Pyramide Con Mani award for her outstanding social commitments.

The Secret Life of Naomi Campbell will explore these little-known facets of Naomi’s identity — shedding light on the causes that inspire her, helping to dispel many of the notions that have marred her reputation, and allowing Campbell, perhaps for the first time, to paint and to frame a portrait of herself.

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This concept summary is excerpted from an original treatment conceived, written and designed by me in 2011. (“The Secret Life of Naomi Campbell” is registered with the WGA West, Inc.)