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Managing Negativity In The Workplace: Negativists, Whiners and Complainers

“The happiest people are those who are too busy to notice whether they are or not.” William Feather

Who are the difficult or negative people in your life? Do you have to work, manage, or live with negativists, whiners and complainers? They are one of the most common difficult personalities in the workforce today. And managing workplace negativity is a skill in itself.

Believe it or not, research shows negativists, also known as whiners and complainers, have a strong need to be liked. They think that by complaining about how much work they have to do, they’ll gain empathy from others. Notice how these people often spend more time complaining than working? “Busy doing nothing” is how people describe the whiners and complainers in my leadership training workshops.

It pays to be tactfully direct whether you’re managing a whiner in the workplace, or just dealing with a difficult co-worker. For example, consider saying the following to a complainer co-worker, “Chris, I realize this is something you want to discuss, and at the same time I want to make sure I get back to work. It sounds like this sitation with so-and-so really bothers you. If I were you, I’d take it up directly with that person. Besides, I’d prefer not to get in the middle of it.” Make sure your tone is tactful and polite, yet firm. Usually these whiners and complainers will move on to a more “captive audience.”

Managing Negativity in the Workplace Means Not Allowing The Behavior To Continue.

If you’re managing a negative person, address the issue tactfully, yet promptly and directly. For example, say to them privately, “Chris, I want to bring something to your attention. You may not realize it, but when you come in here first thing at 8:00 a.m. and complain about our new policy, it’s beginning to look like a lot of negativity. I just wanted to mention it to you because you may not be aware of how you’re perceived.” They may be fully aware, explain it to them anyway!

As a manager or supervisor, you don’t want to be seen as enabling the behavior. Consider the effect it’ll have on other people if you don’t do anything about it. In managing negativity in the workplace, you have to look at the impact the difficult employee’s behavior is having on the morale of others.

If you’re managing whiners and complainers, or anyone for that matter, make certain never to criticize via email first. There is no tone or body language in an email message. The written word is often louder than the spoken word. Either meet with the employee in person, or on the phone discussing the issue with them as a live person. Don’t leave a message. As a manager or supervisor, you set the standard. If your difficult employee is going to react, better they react to YOU in person, or on the phone, as opposed to everyone else around them in the workplace. You certainly want to leave a paper trail by following up with an email, but don’t start off with email.

If you’re working with a difficult person, but not directly managing them, remember that negativists want to whine to people who will buy in to what they’re complaining, or gossiping about. When that happens, you’ve now got two individuals feeding off of each other. The people who allow the complainer to take over the conversation feel angry with themselves afterward for allowing it to happen. They sense they enabled the behavior because they’re “people pleasers” who can’t say no.

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Hiring and Keeping Good Employees

Employers today are caught between the proverbial “rock and a hard place”. They need more qualified personnel to do some of the most basic of tasks but the labor pool is tight and qualified personnel are limited. Many employers have resorted to hiring bodies in hopes of retaining a few good ones (“Like an archer that wounds at random is he who hires a fool or a passer-by”. Proverbs 26:10). And some employers have even decided to delay the growth of the business until the employment market changes.

Answers to the problem of hiring and keeping good employees are often difficult to come by and may demand a change in the way things have been done in the past. But change is inevitable; and the way an employer manages change has a direct impact on their success. Some employers are what I call “Inactive Employers”. Their head is buried in the sand and they hope the problem will just go away or that someone will come up with a miracle solution that will require little or no effort on their part. Other employers are what I call “Reactive Employers”. They are generally slow to change and only do so when it is absolutely necessary, often after it is too late. A successful employer is what I call a “Proactive Employer”. They not only embrace change, they plan on it and are constantly looking for and trying new ways of doing things. They tend to be open-minded and value creative ideas as a part of their culture.

Much like a professional sports team, a Proactive Employer does not just hire personnel, they recruit them. Walk-ons are the exception to the rule. They are “looking” (scouting) for the right person for the job, not just a body to fill a position. Bodies tend to go as easily as they come, whereas recruits stay as part of the team and produce well. The following are some basic steps that can enhance your success at hiring and keeping good employees.

STEP ONE: Define the need.

Most sports teams have a limit to the number of personnel that they can have on their roster. Be able to justify hiring another person. Are the personnel currently employed doing all that they are capable of doing? Do you have a way of measuring it? If not, is it a true need or could it be due to mismanagement or inefficient processes? You owe it to yourself to find out before you invest in additional personnel.

STEP TWO: Define the position.

A professional sports team does not just hire players, but specific players to do a specific job. A good job description should not only include the tasks to be completed, but the tools and processes required as well as the goals expected and the personality make-up of a successful team player.

STEP THREE: Recruit.

Use innovative ways to seek new personnel. Train current personnel to be on the lookout for quality personnel before there is a need. If you use employment agencies (scouts), be sure that they understand your criteria and that you will accept nothing less. Before you get too far into the hiring process with a candidate, do a good background check (e.g. criminal, credentials, drivers license, etc.). Do not borrow someone else’s troubles.

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Employment Law: Majrowski and Employers’ liability for psychiatric illness

The Protection from Harassment Act 1997 makes harassment both a criminal and civil offence, it was intended to deal with the problem of stalking.

Section 1 – Prohibition of Harassment

A person must not pursue a course of conduct which:-

i) Amounts to harassment of another; and ii) which he knows or ought to know amounts to harassment of another.

For the purposes of this section the person whose course of conduct is in question ought to know that it amounts to harassment of another if a reasonable person in possession of the same information would think the course of conduct amounted to harassment of the other.

Majrowski v Guy’s & St Thomas’s NHS Trust [2006] UKHL 34

This case was a claim brought by an employee under the 1997 Act against his employer in respect of alleged harassment at work. The employee argued that his manager had breached a duty placed upon her by the Act and that the employer should be held vicariously liable for that breach.

This was not a case which the employee could bring under any of the discrimination legislation. The allegations were of general bullying intimidation and harassment.

The Act clearly established a statutory tort and the Court of Appeal had to carefully consider whether an employer could be held vicariously liable for a statutory tort committed by one of its employees where the legislation in question does not specifically provide for such liability. On the basis that unless the statute in question directs otherwise or there is a good policy reason why the principle of vicarious liability should not apply, the Court of Appeal believed that there was no reason to reject the argument of the employee.

The Court of Appeal was prepared to accept that although it was generally understood that the 1997 Act had been introduced to deal with the problem of stalking, it was nevertheless an Act which dealt with the prohibition of harassment in a range of different situations, not just stalking.

The appellant NHS trust appealed against the decision ((2005) EWCA Civ 251, (2005) QB 848) that it was vicariously liable in damages to the respondent (M) under the Protection from Harassment Act 1997 s.3 for harassment committed by one of its employees in breach of s.1 of the Act. M, who had been employed by the trust, had alleged that his manager had harassed, bullied and intimidated him while acting in the course of her employment. An investigation by the trust had resulted in a finding that harassment had occurred. M had claimed against the trust for damages under s.3 of the Act based exclusively on the trust’s vicarious liability for its employee’s alleged breach of the statutory prohibition of harassment. The trust, relying on the phrase “damages may be awarded” in s.3 of the Act, submitted that the award of damages under that section was discretionary, and therefore harassment could not be equated with a common law tort. The trust also submitted that the Act was not aimed at the workplace but was a legislative response to the public order problem of stalking.

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Dogs, Cats, And Natural Herbal Remedies

Pets are affected by today’s high pollution, poor nutrition, and growing causes for excessive stress, and are becoming more vulnerable to chronic disease and bad health.

Since their ancient origins, natural herbal remedies are making new strides every day, with botanicals (plants) either singularly or in compounds, and sometimes animal by-products that improve health, appearance, attitude, and performance of pets.

People are starting to realize the value of using natural herbal products to prevent, improve, or treat dog, cat and other pet diseases and conditions.

Here is a sample cross section of the many varied conditions that can be helped:

Aggression in Pets Aggressive behavior in dogs can include biting, barking, snarling, snapping and raised fur along the back of the neck and the ridge of the spine. Aggression in cats can include scratching, biting, excessive yowling, and lunging, hissing, spitting and destructive behavior.

Anxiety-Stress in Pets A trip to the vet, thunderstorms, small children, an abusive situation, change of owner, hair dryers, change of house, the addition of another pet — are a few of the situations that can cause heightened levels of anxiety in your pet.

Cleanse and Disinfect Pet Wounds Products that are formulated to effectively cleanse, disinfect and begin the healing process, while also providing soothing and analgesic relief for pets with a range of skin conditions like wounds, bites, abrasions, paw injuries, etc.

Diabetes in Pets Control and balance blood sugar levels and improve insulin production and bio-availability. Assist in the treatment of diabetes-related conditions like circulation problems, eye disease and wound healing.

Increase milk production A safe and natural combination of herbal ingredients for optimizing colostrum and milk production in nursing pets, as well as providing a natural tonic for the nursing female dog or cat.

Fur balls in cats Improve digestive functioning, and keep bowels regular and prevent constipation and throwing up associated with fur ball obstruction.

Skin and Coat Whether a chronic or acute skin condition or just a bit of a help after a bout of illness, this product will quickly help to restore shine and health, as well as healing most chronic and acute skin conditions.

This is just a tiny number of the various conditions that can be helped by the use of natural herbal remedies with very favorable results, and little or no adverse effects on the dog, cat, or other pet.

Check it out and see if you can enhance a pet’s health, appearance, attitude, and performance.

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Rolling Out the Red Carpet for Data Entry Jobs

Data entry jobs compile some of the most recognized ways to make money on the Internet today. Combined with dropship wholesaling, medical billing, and a bunch of other online opportunities data entry has become the side job of choice for many looking to make the most of the work at home job scene. Every year, lots of businesses are outsourcing their data entry needs to work at home employees across the world. Home based business data entry jobs require very little in terms of material, with only a high speed internet connection, a computer, and quick hands.

Data entry positions to work from home are offered by lots of companies that want to organize and jot down its data into a specific format. Giving the job to individuals who prefer to do data entry from home is one way to get this task done. Company authorities have tons of statistic data they keep in computers and paper and give data entry positions to individuals who can quickly and accurately add this data into their own computers in a special format. Lots of businesses who award data entry jobs provide forms and applications that are used to add their customers contact information, history of membership, and records.

Unfortunately, there are a lot of data entry scams on the Internet. Lots of data entry scams have impressive, believable sales letters that guarantee hundreds of dollars worth of commissions every week and being able to leave a regular job. In essence, many data entry scams force its customers to learn from programs that teach them how to promote affiliate sites using contextual advertising methods like Adwords. Many times, these data entry home jobs have no value and come with very generic information. Other data entry job programs instruct its users to how to take a product they have and sell it best.

One of the best ways to find the highest paying data entry jobs means signing up for a membership at elance.com and guru.com where many companies put out project descriptions for data entry work. Many times, these companies find relief in outsourcing given the cheaper cost than performing it in-house. Elance has one of the largest selections of data entry jobs on the Internet with lots of competition but more room at the top. If you have created a portfolio of past work, data entry work can become a breeze. Bidding for projects as a new member might be frustrating at the beginning due to limited experience, but time and diligence will land you the data entry work at home opportunities youre looking for. To conclude, many of the data entry jobs you see out there are not trustworthy. Trustworthy data entry jobs and free data entry positions comes from looking in the right places.

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Getting Your Goals Right

The most important thing about goal setting is knowing what the big picture is. Why am I setting goals? What do I truly want to achieve. What makes my heart beat? What do I think about achieving most of the time? Why do I want it? What are the specifics of my objective?

I suppose you could say that you are writing your dreams down, the very thing that makes you feel alive. This is extremely important. Why do I want to achieve certain goals? There has to be a big picture, to really light the fire. Obviously if you just want to get things done around the house then you do not have to get into it too much.

However if you want to start a business, set up a non profit, build a home, travel the world, then you are going to need specifics, and passion. Passion is a flame that will not be quenched when things go down hill.

What is just as important is that there is no conscious conflict, in other words when you set a goal and in the back of your head a little voice is in disbelief, mumbling that you cannot do it, or that in the pit of your tummy you feel that you cannot obtain it.

That is why you have to trash it out, get it on paper, feel the lack of confidence, see what is involved and continually examine your big picture. You must be serious. The human brain is amazing, you will see that when you put things on paper you give your brain some space, you commit to the resolution of your goals. In this procedure there is this magical ability to think things through and understand what needs to be done. Once you light that flame, when you find out the truth of what you want, trust me there will be no turning back.

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Maximizing Employee Potential

There is the true story told of how a man named R.U. Darby and his uncle went west during the gold rush days to seek their fortune. After staking their claim and weeks of labor, the returns showed that they quite possibly had one of the richest mines in all of Colorado. A short time later, the vein of gold disappeared. Desperate and discouraged, they sold it to a man for a few hundred dollars. The man called in a mining engineer who discovered the main vein just three feet away. The new owner hauled out millions!
What many Business leaders today do not realize is that more money has been made from the minds of people than has ever been removed from the earth. People, not products or processes make a company successful! Utilizing only the basic skills of an employee and not their true potential is much like purchasing a $20,000 computer system and using it only for typing!
And yet, that is what employees tell us is happening. Employee surveys reveal that most employees feel that their full potential is not being tapped. They tell us that on average, they could be producing anywhere from 25 to 50% more than is currently expected of them. And when you consider that even a seven dollar an hour employee equals over a quarter of a million dollar investment over a twenty year period, the potential return on investment could be greatly improved!
When one considers the limited labor pool of today, it makes good sense to utilize the current personnel to their fullest potential. And also when you consider that research by Professor Leonard Schlesinger of the Harvard Business School reveals that the company who makes an investment in its people can expect growth rates of 60 to 300% over their competition, there is no good reason not to be utilizing your current personnel more effectively. With these facts in mind, the untapped resources of the employee are a gold mine waiting to be discovered.
But how can a company today go about ensuring that they are getting the full potential (their money’s worth) from each and every employee? I shall address the answer to that question by referring to the “Employment Cycle”. A four stage process that employees go through when good selection and development processes are not in place.
Stage One: Good Attitude and Fair Production
In this stage of employment, most employees “want” to do a good job and take the position offered (for whatever reason known perhaps only to them) with the intent of meeting the demands of the position with their best effort. Due to the learning curve required of any position with a new company, production remains only fair in this stage. How long the learning curve is in place depends on the nature of the position and the ability of the individual to learn. For some, only a few days are necessary, whereas with others, a whole year may be required.
Success in selecting people for the job has too often relied on a “hit or miss” approach. It is as if we expect a certain amount of turnover (usually 50% or more) as the nature of the beast. Some companies have succumbed to the “we hire bodies” approach to personnel selection and are paying the price in the following areas of costs: turnover, lower production, increased unemployment and health, as well as increased tardiness and absenteeism. Progressive companies today are using a more structured approach to personnel selection and are reaping the benefits in lowered costs and more satisfied, long term employees.
The key to their success can be found in the following areas:
Complete Job Descriptions – This requires not only listing the tasks of a position to be accomplished, but also the “type” of person who can do it effectively. Determine not only the skills necessary for the job, but also the proper attitude, behavior and values required. Assess and Interview – Too often an employee is selected because the interviewer “likes” the person without consideration for if they are really “right” for the job. This type of process is called “subjective” hiring and opens up the company to lawsuits they generally are unable to defend. Whereas interviews based on “objective” tests and assessments provides a sound basis for hiring or not hiring an individual regardless of their race, age or sex. Also, to assess only on skills (degrees, experience, etc.) overlooks the more important areas related to success in any position such as behavior, values and attitudes (the #1 reason we fire). There are many fine companies who provide assessment tools that will give you a more complete picture of a prospective new hire so that you can make good judgments in the hiring process.
New Employee Assistance – The more help a new employee is given in feeling comfortable with his/her new surroundings, the more valuable he/she will feel to the organization and the quicker they will reach their potential. Good communication skills and managers sensitive to individual employee needs can play a critical role at this stage.
Stage Two: Good Attitude and Good Production
When an employee reaches this stage, near optimum output is being displayed. The real challenge becomes to encourage the employee to exceed expectations. Too often employers take a hand off approach at this stage. The old “If it ain’t broke don’t fix it” mentality. But they could not be further from the truth! Their fear is that if they invest in training an employee more extensively, the employee might leave and then all was for naught. There is really only one thing worse than that happening and that is not offering extensive training and the employee stays!
The Second Law of Thermodynamics says that nothing ever stays the same. It is either getting better or it is getting worse. Employee surveys tell us that what most employees want is to be appreciated for who they are and what they do. And no, that does not necessarily mean more money. Often, it is just a matter of a good manager verbally recognizing the contributions the employee makes. A little preventive medicine could go a long way at this stage in securing a dedicated work force. Also, good behavioral and values profiles would be very beneficial at this stage in determining what best motivates each employee and how best to go about effectively communicating with each of them. The employer who does not take a progressive approach to developing their work force may find many of them moving into stage three.
Stage Three: Poor Attitude and Fair Production
In this stage, an employee is often openly displaying a poor attitude. In some cases, the attitude may not be as apparent, but can be discerned from a decrease in productivity. In stage two, preventive maintenance was suggested. In this stage, surgery is recommended and the sooner the better. Rather than face confrontation, the temptation to some managers in this situation is to ignore it and hope that it changes on its own. Other managers may, rather than risk turnover and re-hiring problems, accept the decrease in productivity. This approach can be very dangerous, because a standard lowered becomes the standard for all in a relatively short period of time. And yet still other managers feel it is their duty, much like fighter pilots, to seek and destroy any signs of trouble and cause many casualties in the process.
Communication is the key. A good doctor does not make irresponsible judgments when recommending surgery. Rather, the doctor asks questions, analyzes and probes before making any rash decisions. A good manager will do much the same thing with employees who are displaying a change in attitude or productivity. A good behavioral profile offering communication, motivation and managerial tips tailored to the individual could prove invaluable in this situation. What needs to be assessed is why the change has come about and that could be for numerous reasons. A few common ones are:
The employees job specific needs are not being met Perhaps they have faulty equipment and nobody is doing anything about it? Maybe instructions and training have been less than adequate? Or perhaps appreciation for a job well done has been few and far between and it is a cry for attention?
The employee is being mis-managed Our natural tendency is to think that everyone else will respond to the same motivations and communication techniques that we do. But actually there are four basic types of people all with different basic reasons for why they do what they do. Managers need to be trained in communicating with all four to be truly effective.
The employee is experiencing personal problems Although we may not be able to change the situation, perhaps we can lend assistance. Perhaps a leave of absence is in order. The employee is in the wrong job Either they masked their true self in the interview and/or trial period, or we did a poor job of job placement. At any rate, it is time for a change.
Again, the key is communication. We will not know the reason for the change until we ask. To not ask is to show an attitude of unconcern or acceptance of bad behavior. Either way, the situation will only get worse and eventually move to the final step.
Stage Four: Poor Attitude and Poor Production
It should be obvious that this stage is totally unacceptable to both the employer and the employee. The results will be a fired employee or one who quits for greener pastures. If firing is the option, do so in as respectful a manner as possible. Allow the employee to leave with dignity and the company to retain its image. Tact is the key word in this stage as well as compassion. Once either choice is made, the cycle begins all over again.
Employees are a company’s most valuable resource. An investment in doing things right in this area can pay large dividends. Allow yourself and your personnel the luxury of making a few mistakes along the way. If one way does not work, try another. There was an old repair commercial that said it best, “you can pay me now, or you can pay me later”. A little training now could give you the edge over the competition because everyone in the company is involved in its success. I firmly believe that the vast majority of employees today want to take pride in their work and their employer. With a little initiative and ingenuity on your part, the rewards will be a “gold mine” opportunity for everybody.

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The 5 Keys To Inducting New Employees

When it comes to inducting new employees into your business you only get one chance.
Get it wrong and you have started to sow the seeds of doubt in the mind of your new starter in the first few weeks.Get it right and it will make a huge difference to how the person settles in. Without being perfectionist, the key is to make sure that every new starter feels excited and positive that they have made the right choice in joining your business.
The way to do this is to:

1. Get The Practical Stuff Right
Make sure you have practical aspects such as a desk, phone and computer ready, with a password. Get their name added to your email system or have a uniform ready for them as appropriate. Will they need business cards? Do they need a key or security pass to access the premises? Having everything ready and organised before they arrive shows you place a high value on the service you provide to your people as well as your customers; something that sets a very good tone with a new starter.

2. Have A Plan
Make sure there is some form of training/induction plan that is ready before they start. Something you can physically give to them on their first day so that they are clear about what they will be doing over the first few days (or weeks). You may even choose to call them the week before they join to confirm arrangements for the first day and tell them broadly about their induction plan before they have joined – they’ll feel less apprehensive about their first day in the new job and feel like a valued employee even before they have joined you.

3. Inspire Them
In the first week, it is important that all new staff know what you are trying to achieve in your business, what your future vision and goals are, what your values are. Understanding this will get new starters excited about the business they have joined, but it also gives them clarity and a sense of purpose, no matter what their role. Something that is a critical strategy in retaining people.

4. Socialise
A large part of someone’s success comes from how well they fit into your team. So ensure that all new starters have an early opportunity to get to know their new colleagues on a less formal basis, whether it’s a quick drink with the team during the first few days or a lunch. It allows them to get to know the team and start to bond with them in the first few days.

5. Be Systematic
It’s all very well getting it right once or twice, but to get the induction process right for all new starters, you require a system – a standardised way in which all new starters are introduced into your business. So, set up a manual that has step-by-step guidelines for inducting new starters. This way, the quality of an individual’s induction is not dependent on you or one member of your team, it will be of a consistently high standard.

Many businesses talk a good game about induction but often don’t deliver. Others simply don’t place much importance to it at all. But in my experience first impressions play a big part in hiring people. And like any first impression – for every new employee, you only have one chance to get their induction right – so never don’t waste the opportunity.

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Move Through the Fear of Having a Spiritual Experience

Lately, I’ve found myself looking more carefully at my life — what I want it to look like and what I have to do to create that reality. I have moved closer to many of my goals, but there are a few that involve, as author Thomas Moore would say, “care of the soul” that I have not taken steps toward creating.

Although I often complain about not having enough time to meditate, read spiritual books, journal, or pray, lack of time really is not what has stopped me from achieving my spiritual goals. I simply have not committed my time — and my energy — to my spiritual pursuits in the same manner I have committed time and energy to other goals. I have to admit that I get a lot of things accomplished every day, just not those things related to my spiritual practice. So, I recently asked myself, “Why don’t I put time and energy into the activities that are most important to me, the goals that will help me not only lead a more spiritual life but also help me feel my connection to God?” The answer I gave was simple: “Fear.”

I have always considered fear the primary factor that stops us from moving forward on the spiritual path. We say we want to care for our souls, to nurture our spirits, to connect with our inner being and with the Divine Essence that creates all things. Yet, we constantly find roadblocks and obstacles in our way – or, rather, we place them there. Why? Because we are afraid to care for our souls, nurture our spirits, connect with our inner being and with God.

Each person possesses a personal fear all their own. Speaking for myself, I’m afraid that if I really achieve my spiritual goals I will be changed, and that those changes will cause other changes within myself and within my life that I don’t desire or won’t like. I might not want to do anything but sit among the Redwoods surrounding my house and meditate. I might neglect my children, my husband, my work, and, in the process, I might lose them all. In addition, I might change in such a way that I no longer fit in with so-called “normal” people. While I always have felt a bit like the “fringe dwellers” described by author Stuart Wilde, I would hate to feel all the more “different.” I would not like to discover that other people regarded me as so different they no longer wanted to associate with me.

I also am afraid I won’t be able to handle the experience of Divine connection. Most people who have delved into the study of Kabbalah, the Jewish mystical tradition, have heard or read the Talmudic story of the four who went into the Garden — a space or realm where they directly experienced God. According to the Talmudic sages, four went into the dwelling place of God, thereby entering into the glory of God’s heavenly kingdom. One was so overcome by the experience that he died, another went mad, and the third became an apostate. Only one, Rabbi Akiba was able to look upon God’s holy place, delve into the meaning of God’s holy words, and experience direct connection with God and survive unscathed. As the story goes, the reason for Akiba’s ability to do so lay in his great wisdom and scholarship. The moral of the story is clear: Only a great scholar can experience God and continue living life as before.

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Who Should Be the Beneficiary of Your IRA?

You have a number of choices when it comes to selecting a beneficiary (or beneficiaries) for your IRA. Some are appropriate. Some are mistakes and can lead to delays and expenses in getting the funds to your desired recipients. Some may even exclude some of your desired beneficiaries. In addition, some elections are for estate planning purposes. Let’s take a look at your options.

No Beneficiary

Not recommended. This mandates your IRA be distributed according to your will, if you have one. If you don’t, each state has “intestate” rules that divide your estate up in ways you wouldn’t ever want.

An IRA with no beneficiary must be distributed within five years. By contrast, a named beneficiary can spread the distribution out over the balance of their life expectancy.

Your Estate

Naming your estate as the beneficiary is the same as not naming one. The rules require a “named” beneficiary. Now your IRA goes through the probate process. This costs money, takes time and subjects your IRA to your creditors.

Why should you pay money to be represented by an attorney and have a judge in some probate court decide whom your beneficiary will be? Why should your beneficiaries have to wait around for your estate to be closed? What if your will is challenged? What if you have a big estate with estate taxes due and the IRS is questioning the valuation of your business? I have seen estates open for as long as ten years as the debate goes back and forth between your attorney and the IRS. The worst case I can think of is your IRA completely eaten up by legal fees inasmuch it may be the only liquid asset.

Your Spouse

This is the most common designation and makes the most sense for a number of reasons.

If the spouse is the sole beneficiary, he or she can elect to treat the IRA as his or her own. This opens up the possibility of delaying the start of the required minimum distributions (RMDs). This could be the spouse’s age 70 1/2, or for a Roth IRA, all the way to the death of the spouse. It also allows further “stretching” of the IRA as the spouse can spread the RMDs over their lifetime plus the lifetime of a beneficiary.

If the spouse is more than 10 years younger than a non-Roth IRA owner, their life expectancy can be used. Beneficiaries other than the spouse, who are more than ten years younger than the IRA owner, are treated as being no more than ten years younger for RMD purposes. This is another “stretching” advantage for naming the spouse as beneficiary.

Children

If children are beneficiaries, they can take the RMDs over their life expectancy. Since the RMDs are very low at the younger ages, the account can grow substantially over the years. For example, a $100,000 IRA could distribute literally millions of dollars over the lifetime of a young beneficiary.

If there is more than one child named, the youngest age is used for RMD purposes. However, if the children are beneficiaries of a trust, the oldest age is used.

Read more: Who Should Be the Beneficiary of Your IRA?