The Hidden Tax Bite of Master Limited Partnership Funds

Simon Lack for SL Advisors writes: Master Limited Partnerships (MLPs) are inexorably linked with those annoying K-1s in the minds of many investors, complicating tax reporting. For some people it’s one of the few things they know about MLPs and the muttered warning of their accountants to avoid K-1s keeps them away from the asset class. Direct holdings of MLPs are the most efficient way to invest in the sector, and in my experience the K-1s aren’t that big a deal. MLPs fully understand the barrier tax reporting represent to many potential investors. As a result, almost all MLPs now provide K-1s electronically and they are issued well before the April tax filing deadline. I’ve also yet to identify an accountant who will put a price on the additional cost of including a K-1 in a client’s tax return. Even at $100 each and a dozen K-1s, it’s well worth it for a portfolio of $500K or up invested in MLPs.

Not everybody has that much to invest, and others may nonetheless still prefer a simpler tax return consisting fully of 1099s for their tax reporting. Ten years ago I seeded Alerian Capital Management’s hedge fund when I was at JPMorgan. Much time and many expensive hours of tax advice were spent trying to come up with a way of maintaining the tax deferral benefits available to direct investors in combination with the simpler tax reporting of a 1099. The bottom line is, there is no way to do it. In this respect, the tax code is watertight. You can hold MLPs with K-1s, or you can invest through a vehicle that provides 1099s at the cost of a substantially greater tax burden.

For many years the industry didn’t spend much energy on the less efficient, 1099 route. But in recent years that has changed, as it turns out there is a ready pool of buyers who will sacrifice quite a lot for tax simplicity. In fact, the solution is a pretty blunt instrument in tax terms. Holding MLPs in a corporation (a “40 Act Fund”, which is a mutual fund or exchange traded fund), solves the tax problem by simply paying 35% tax on the returns. You can have MLPs with K1s, or 65% of MLPs with 1099s. Many people choose the latter, to the evident amazement of people in the industry. An example is the Mainstay Cushing MLP Premier Fund (CSHAX and CSHZX). I remember Jerry Swank, Cushing’s CEO, at a conference some years ago commenting with incredulity at the interest in a competitor’s exchange traded fund (ETF) which solved the tax reporting problem with the 35% haircut. But consumers know what they want, and Cushing subsequently provided it to them.

I wonder how many really know what they’re buying? CSHAX sports a yield of 6.34%, slightly above the yield on the Alerian Index of 6%. It invests in MLPs. But looks can be deceptive; CSHAX has underperformed the Lipper Energy MLP Fund for each year of its existence. Its expense ratio for 2013 (the most recent year available) was a whopping 9-10% (depending on the share class). Most of this (around 8%) is the “Deferred Income Tax” expense, which is the 35% Federal corporate income tax bite that the fund pays in order to provide those 1099s. 2013 was a great year for MLPs so the tax drag is unlikely to be that high every year. But it will nonetheless be an ever-present penalty, eating up a portion of results year after year. Due to a quirk in the way yields are reported, the 6.34% yield advertised by CSHAX is essentially what the fund pays BEFORE adjusting its NAV down to reflect the tax liability. The net, after tax result to the investor is inevitably lower, and that’s before they pay their own taxes.

Like many things that retail investors buy, it’s disclosed but probably not understood. ’40 Act companies that maintain MLPs at less than 25% of their holdings qualify for pass-through treatment, which means the deferral characteristics carry through to the investor. It’s the best you can do in terms of holding MLPs and avoiding K-1s. We run a mutualfund that offers this structure.

20 IRA Mistakes to Avoid / From contributions to conversions to distributions, don't fall into these traps.

Christine Benz for MorningStar.com writes: For a vehicle with an annual contribution limit of just $5,500 ($6,500 for those over 50), investors sure have a lot riding on IRAs. Assets across all IRA accounts topped more than $7.3 trillion dollars during the third quarter of 2014, making the vehicle the top receptacle for retirement assets in the U.S., according to data from the Investment Company Institute. In addition to direct annual contributions, much of the money in IRAs is there because it has been rolled over from company retirement plans of former employers. 

Opening an IRA is a pretty straightforward matter: Pick a brokerage or mutual fund company, fill out some forms, and fund the account. Yet, there are plenty of ways investors can stub their toes along the way. They can make the wrong types of IRA contributions--Roth or Traditional--or select the wrong types of investments to put inside the tax-sheltered wrapper. And don't forget about the tax code, which delineates the ins and outs of withdrawals, required minimum distributions, conversions, rollovers, and recharacterizations. Rules as byzantine as these provide investors with plenty of opportunities to make poor decisions that can end up costing them money. 

Here are 20 mistakes that investors can make with IRAs, as well as some tips on how to avoid them. 

1) Waiting Until the 11th Hour to Contribute
Investors have until their tax-filing deadline--usually April 15--to make an IRA contribution if they want it to count for the year prior. Perhaps not surprisingly, many investors take it down to the wire, according to a study from Vanguard, squeaking in their contributions right before the deadline rather than investing when they're first eligible (Jan. 1 of the year before). Those last-minute IRA contributions have less time to compound--even if it's only 15 months at a time--and that can add up to some serious money over time. Investors who don't have the full contribution amount at the start of the year are better off initiating an auto-investment plan with their IRAs, investing fixed installments per month until they hit the limit. 

2) Assuming Roth Contributions Are Always Best Investors have heard so much about the virtues of Roth IRAs--tax-free compounding and withdrawals, no mandatory withdrawals in retirement--that they might assume that funding a Roth instead of a Traditional IRA is always the right answer. It's not. For investors who can deduct their Traditional IRA contribution on their taxes--their income must fall below the limits outlined here--and who haven't yet save much for retirement, a Traditional deductible IRA may, in fact, be the better answer. That's because their in-retirement tax rate is apt to be lower than it is when they make the contribution, so the tax break is more valuable to them now. 

3) Thinking of It As an Either/Or Decision
Deciding whether to contribute to a Roth or Traditional IRA depends on your tax bracket today versus where it will be in retirement. If you have no idea, it's reasonable to split the difference: Invest half of your contribution in a Traditional IRA (deductible now, taxable in retirement) and steer the other half to a Roth (aftertax dollars in, tax-free on the way out). 

4) Making a Nondeductible IRA Contribution for the Long Haul
If you earn too much to contribute to a Roth IRA, you also earn too much to make a Traditional IRA contribution that's deductible on your tax return. The only option open to taxpayers at all income levels is a Traditional nondeductible IRA. While investing in such an account and leaving it there might make sense in a few instances, investors subject themselves to two big drawbacks: required minimum distributions and ordinary income tax on withdrawals. The main virtue of a Traditional nondeductible IRA, in my view, is as a conduit to a Roth IRA via the "backdoor Roth IRA maneuver." The investor simply makes a contribution to a nondeductible IRA and then converts those monies to a Roth shortly thereafter. (No income limits apply to conversions.) 

5) Assuming a Backdoor Roth IRA Will Be Tax-Free
The backdoor Roth IRA should be a tax-free maneuver in many instances. After all, the investor has contributed money that has already been taxed, and if the conversion is executed promptly (and the money is left in cash until it is), those assets won't have generated any investment earnings, either. For investors with substantial Traditional IRA assets that have never been taxed, however, the maneuver may, in fact, be partially--even mostly--taxable, as outlined here. 

6) Assuming a Backdoor Roth IRA Is Off-Limits Due to Substantial Traditional IRA Assets Investors with substantial Traditional IRA assets that have never been taxed shouldn't automatically rule out the backdoor IRA idea, however. If they have the opportunity to roll their IRA into their employer's 401(k), they can effectively remove those 401(k) assets from the calculation used to determine whether their backdoor IRA is taxable. This article discusses the topic in greater depth. 

I Don't Have My W-2. What Can I Do?

Karen Price Mueller for St. Louis Dispatch Post writes: Question. It’s February, and my employer hasn’t sent me my W-2 yet. I’d really like to get filing my taxes over with. My employer said I just have to wait. What can I do?

Answer. In most cases, W-2 forms arrive by the end of January.

Form W-2, Wage and Tax Statement, shows your income and the taxes withheld from your pay for the year. You need your W-2 form to file an accurate tax return, said Joseph Matheson, a certified public accountant with Matheson & Assoc. in Whippany, N.J.

He said your first move is to contact your employer, which you said you did. Make sure they have your correct address so it wasn’t just a mailing error.

If you don’t get it by Feb. 23, you can get help from the Internal Revenue Service.

“Call the IRS at 800-829-1040 after Feb. 23,” Matheson said. “The IRS will send a letter to your employer on your behalf.”

• You’ll need the following when you call:
• Your name, address, Social Security number and phone number;
• Your employer’s name, address and phone number;
• The dates you worked for the employer; and
• An estimate of your wages and federal income tax withheld in 2014. You can use your final pay stub for these amounts.

Your tax return is normally due on or before April 15, 2015.

“Use Form 4852, Substitute for Form W-2, Wage and Tax Statement, if you don’t get your W-2 in time to file,” he said. “Estimate your wages and taxes withheld as best as you can. The IRS may need more time to process your return while it verifies your information.”

If you can’t finish your tax return by the due date, Matheson said you can ask for more time to file. Get an extra six months by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.

You can also e-file a request for more time. You can do this for free with IRS Free File, he said.

If you receive your missing W-2 after you file, you may need to make a correction on your return.

“If the tax information on the W-2 is different from what you originally reported, you may need to file an amended tax return,” he said. “Use Form 1040X, Amended U.S. Individual Income Tax Return to make the change.”

Matheson has an important note if you purchased health insurance through the Health Insurance Marketplace. You should have received a Form 1095-A, Health Insurance Marketplace Statement, by early February.

You will need the new form to help you complete an accurate federal tax return.

“You will use the information from the Form 1095-A to calculate the amount of your premium tax credit,” Matheson said. “The form is also used to reconcile advance payments of the premium tax credit made on your behalf with the amount of premium tax credit that you are eligible to claim.”

If you did not receive your Form 1095-A, you should contact the Marketplace from which you received coverage to get a copy. You are not required to send in proof of health care coverage, including Form 1095-A, to the IRS when filing your tax return. However, it’s a good idea to keep these records on hand to verify coverage, he said.

The Biggest Tax Breaks for Freelancers

Rebecca Lake for MyBankTracker.com writes:  Tax deductions reduce the amount of your income that’s subject to tax, which makes them extremely valuable if you earned a lot from freelancing and you’re worried about getting stuck with a big tax bill. With so many different deductions floating around, knowing which ones you can claim is a must to make sure you’re not paying more in taxes than you need to. Here’s a look at some of the biggest tax breaks for freelancers.

1. Home office deduction

The home office deduction gets a bad rap because it’s typically associated with a higher audit risk but the truth is, the odds of beingaudited automatically go up if you file a Schedule C. If you use part of your home exclusively for freelance work, you shouldn’t be afraid to claim the deduction as long as you’ve the necessary records to back it up.

Thanks to some changes in the tax code, there are now two ways to take the home office deduction:

1. You can use the regular method, which is based on the percentage of your home you use for business and your actual expenses.
2. The simplified method values the deduction at $5 per square foot.

If you’re not sure which way to go, running the numbers is a pretty simple way to see which one’s going to give you the biggest benefit. For example, if you use a 100-square foot room in your home for business, your deduction would be worth $500, based on the simplified method.

Now let’s say you live in a 2,000 square foot home and your total cost for maintaining the property, including your mortgage payments and utilities, is $20,000 a year. That same 100 square foot office would equal 5 percent of your home’s area, which means you can write off 5 percent of your total expenses, doubling your deduction to $1,000. If you’re not taking the time to figure out what the difference is, you could be costing yourself money.

2. Business equipment

Some freelancers require very few tools to get the job done. If you’re a writer or blogger, for example, all you may really need is a good computer and maybe a comfy place to sit. On the other hand, if you design websites or you’re a professional photographer, you’re probably going to need to invest in some specialized equipment.

The Section 179 deduction covers any tangible property you purchase for business use. That includes things like laptops, copy machines, printers, furniture and computer software.

For the 2014 tax year, the deduction was retroactively capped at $500,000, which is pretty sweet if you spent big bucks on new equipment last year. As of January 1st, the deduction limit dropped back down to $25,000 which means freelancers won’t be able to get quite as much of a write off as they have in years past.

3. Business travel

Freelancers who travel to meet with clients or work in other cities have the advantage of being able to deduct some of their expenses. Typically, this includes things like hotel stays, airfare, cab fare, meals and entertainment. If you normally drive your own car to get back and forth to out of town business meetings, you may also be able to write off some of your mileage.

To satisfy the IRS requirements for the deduction, you have to spend at least one night away from home and keep records of all your expenses. That includes things like credit card receipts from your hotel, receipts for meals, gas receipts or a mileage log of detailing the dates you traveled, the locations you visited and the distance.

Generally, you can only deduct half the cost of meals and entertainment. The standard mileage rate is set at 56 cents per mile for the 2014 tax year and it gets bumped up to 57.5 cents for 2015.

4. PayPal fees

Billing your clients through PayPal is a pretty easy to collect payments but there’s a catch, since there’s typically a service fee to process the transaction. You could ask your client to cover the fee on their end or just tack it on to your bill, but it’s not always an issue you can negotiate.

The good news is you can deduct any of those annoying fees you pay throughout the year.

5. Health insurance premiums

When you’re a freelancer, enrolling in an employer’s health insurance plan isn’t an option. Instead, you have to purchase your own coverage which can sometimes mean paying some high premiums. The good news is that as long as your freelance efforts produced a profit, the amount you pay in can be deducted when you file your taxes.

You don’t have to itemize to deduct your health insurance premiums but the deduction is only good for the months that you weren’t covered by an employer’s plan. So for example, if you worked the first three months of the year at a regular job and then left to go freelance, only the premiums you paid after that would be tax deductible.

Being a freelancer means juggling a lot of different balls at once but your tax filing isn’t one you can afford to drop. Every penny you deduct has a positive impact on what you owe so there’s no excuse for passing up any of these money-saving deductions.

Childless adults can qualify for earned income credit

Susan Tampor for the Sun Herald writes: The Earned Income Tax Credit can put real money into the pockets of working people. Yet each year, some of that much-needed money is left on the table.

With almost 28 million people receiving $66 billion for the credit last year, it is hard to believe anyone would not know about a key tool that fights poverty.

Kathleen Hatke Aro, president of the Accounting Aid Society in Detroit, said she's unsure why millions of dollars still goes unclaimed.

"Quite frankly, I think a lot of people who don't claim it are single," said Aro.

Over the years, many associated the credit with working families. But a smaller credit for people without children is available and can be worth up to $496 for 2014 tax returns.

By contrast, this tax season, the federal credit can be worth up to $6,143 for those with three or more qualifying children.

Elaine Maag, senior research associate for the Urban Institute and the Tax Policy Center, said the overall take-rate for the earned income credit can be fairly high, around 86 percent based on some research. But those who do not have children are often not applying for the credit that they'd deserve, she said.

If you do not have a qualifying child, you must be age 25 but under 65 at the end of the tax year, live in the U.S. for more than half the year and not qualify as a dependent of another person.

The credit for those without children is available only to those with very limited incomes. For 2014, the income limit is $14,590 for singles and $20,020 married filing jointly, if no qualifying children are involved.

The nature of a refundable credit could add to the confusion. A refundable credit means workers may get money back, even if they have no tax withheld.

Marshall Hunt, director of tax policy for the Accounting Aid Society's tax assistance program, said some people might not apply for the EITC because they received a W-2 but didn't have any taxes withheld and they are not required to file taxes because their incomes are so low. They do not realize how valuable a refundable credit can be.

"If you have earned income, I would check it out," Hunt said.

The refundable credit is designed to reward those who work hard to make ends meet.

Someone who earned $52,427 or less in 2014 might be able to qualify for some money. The IRS website -- www.irs.gov -- has an "EITC Assistant" to run some numbers online.

The amount of the credit varies widely. But if someone misses out on just a few hundred dollars, they're missing some money that could ease their financial struggle.

Read more here: http://www.sunherald.com/2015/02/14/6071269/susan-tompor-childless-adults.html#storylink=cpy

Deducting IRA savings and taxes

Jim Blankenship for USA Today writes: Your pay not only determines the size of your nest egg when you retire but also restricts how much you save annually without penalty. Depending on your income, you can't just sock away whatever you want wherever you want for retirement.

Here are your limits for 2015, based on how you file your tax return.

Income limits determining your maximum contribution to retirement savings depend on whether you file your federal income tax return in the status category of single, married filing jointly (MFJ), married filing separately (MFS), as a head of a household (HH) or as a qualifying widow or widower.

The higher your 2015 modified adjusted gross income (MAGI), generally the more the deductible amount of your contribution to an individual retirement plan drops, possibly to where you can't contribute at all.

Income limits if you file taxes using the single or head of household (HH) status

Traditional IRA. If you are not covered by a retirement plan at your job or you are covered by such a workplace plan and your MAGI is $61,000 or less, you have no limit to your deductible contributions.

If you are covered at your job and your MAGI falls between $61,000 and $71,000, you receive a partial deduction that is reduced by 55 cents for every dollar over the $61,000 lower limit (65% if you're older than 50).

As in all scenarios discussed here, the above adjusted amount is rounded up to the nearest $10; if it's less than $200, you can contribute at least $200.

If your workplace plan covers you and your MAGI exceeds $71,000, you can't deduct contributions to a traditional IRA. You are eligible to make non-deductible contributions up the annual limit for the account, of course, and those contributions grow tax-free.

Roth IRA. If your MAGI comes in under $116,000, you qualify to contribute the entire amount to a Roth IRA. If your MAGI is between $116,000 and $131,000, your contribution deduction shrinks pro rata for every dollar above the lower end of that range. If your MAGI tops $131,000, you cannot contribute to a Roth IRA.

Income limits if you file taxes using the married filing jointly (MFJ) or as a qualifying widow or widower

Traditional IRA. Filing in the MFJ or qualifying widow or widower categories slightly complicates deductions for contributing to a traditional IRA.

If you are not covered by a retirement plan at your job and your spouse is also not covered with a plan, you have no MAGI limit on your deductible contributions to a traditional IRA, nor do you face a limit if your MAGI is $98,000 or less.

If covered under a retirement plan at your job and you earned a 2014 MAGI between $98,000 and $118,000, you can take a partial deduction that drops 27.5% for every dollar over the lower threshold (32.5% if you're older than 50).

If you are covered at your job and your MAGI exceeds $118,000, you cannot deduct any of your traditional IRA contributions for this tax year, though again you can make non-deductible contributions up the annual limit.

Spousal coverage in workplace plans figures in here. For instance, if your workplace plan doesn't cover you but your spouse is covered at his or her job and your MAGI is less than $183,000, you can deduct the full amount of your IRA contributions. If your MAGI is greater than $183,000 but less than $193,000 in these circumstances, you are entitled to a deduction that's reduced 55% for every dollar over the lower limit (65% if over 50).

If your MAGI is greater than $193,000, you can't deduct any of your traditional IRA contributions.

Roth IRA. If you file your return in the categories of married filing jointly (MFJ) or as a qualifying widow or widower, you need an annual MAGI of less than $183,000 to become eligible to contribute the entire amount to a Roth IRA.

If your MAGI is $183,000 to $193,000, your contribution to a Roth IRA falls ratably for every dollar above the lower end of the tax bracket range, in this case $183,000.

If your MAGI exceeds $193,000, you cannot contribute to a Roth IRA.

Income limits if you file taxes using the married filing separately (MFS)

Note: For purposes of the MAGI qualification amount discussion here only, if you file MFS but did not live with your spouse during the tax year, you come under the contribution and deduction restrictions as if you file taxes in what the Internal Revenue Service recognizes as the single status category.

A traditional IRA. If neither you nor your spouse has a retirement plan available on the job, you have no MAGI limit on your deductible contributions.

If you do have such a plan and your MAGI comes in at less than $10,000, you receive a deduction that's reduced 55 cents for every dollar (65 cents if you are older than 50) above the lowest dollar threshold for your tax bracket. The same formula holds true if you are not covered by a plan but your spouse is.

If the employer of you or your spouse offers a plan and your MAGI tops $10,000, you can deduct none of your contributions to a traditional IRA. You can still make non-deductible contributions up the annual limit, and those contributions grow tax-free.

Roth IRA. If your MAGI is less than $10,000, your contribution to a Roth IRA drops pro rata for every dollar over the lower limit of your tax bracket. You cannot contribute to a Roth IRA if your MAGI exceeds $10,000.

Jim Blankenship, CFP, is a fee-only financial planner at Blakenship Financial Planning in New Berlin, Ill.,

Social CRM is No Longer the “Stepchild” of Customer Interaction

expivia01 for Contact Center Muse writes: Change can be a scary thing, especially when your organization has done things one way for so many years when it comes to customer service and sales. Many marketing and customer service managers are from the “old school” ways of customer interaction where voice is king (which to a certain extent it still is). Pushing calls to poorly thought out self-service models and then to the contact center who is being measured with dated metrics as a last resort takes no imagination and is will hurt your company’s credibility in today’s service arena. While I will admit that inbound 1800 numbers are still the main connections channel from customers this is changing. I believe it is changing for the better as well.

CUSTOMERS OF 2015 ARE DIFFERENT

The fact of the matter is that your customers are changing. Many customers in their 20’s and 30s have grown up with the internet. They have seen the change from the “let’s get online” stage to the full scale social CRM stage. They are used to using tablets and smartphones to connect with self-service apps and using click to call and video technology. When a customer receives a substandard product or service they do not call and complain anymore, they POST! They post to blogs, on twitter and on their Facebook accounts. No longer can an organization sit back and wait to fix problems from an inbound phone call.

SELF SERVICE AS THE ONLY OPTION…REALLY?

To not allow or push customer interactions away is now a huge mistake. Having an opportunity to talk and interact with your customer should be treated at gold…why companies want to channel all interactions to a certain channel that they are comfortable with or worse yet to FORCE self-service is a huge mistake in my opinion. It’s time to change with the times.

Invite your customers to interact with you on multiple channels Social being one of them. here are a couple things we see when companies first roll out a social channel that they should try to avoid.

First problem with many companies social crm platform:

They use the tools they know about (Facebook, Twitter, Blogger, Instagram…) to SHOUT to their customers.

They shout specials, deals and company news. They do not interact/engage with customers on a level that allows them to gain trust. Now don’t get me wrong, using social media to get information out is not all bad, it’s just one small step that a company needs to take. They cannot stop there.

Social media when done right cannot be one person talking and the other one listening. It needs to be a conversation. When you can get your customers to interact with you on this type of experience you have a customer that then will become an evangelist for your brand!

Companies must start to use available technology to search the social CRM world for posts that use key word for sales and/or service opportunities. This is now a process of vital importance. A company’s social antennae need to be listening at all times. If a disgruntled customer is posting negatively about your brand, you need to be proactive to talk to this customer to smooth out the issue.

In real time you can now search thousands of forums, blogs, Facebook accounts and internet searches. You can also respond to these customer and prospective customers in real time. With new open source technology like WebRTC, you no longer have to just use text or an email to talk to these customers. You can have a one on one face to face conversation without and downloading using this enhanced technology. WebRTC will be one of the new technologies that will be embraced by everyone in the next five year. Understand it now!

Remember, social media when ignored can really hurt your company with the same vigor a great strategy helps it.

The second problem with many companies social crm platform:

The rehashing of the same materials on social sites.

Many company social sites are basically just copies of the actual web site. The whole story or product will be copied or just the link gets posted on Facebook or tweeted out. All this drives is…boredom!

Your website is normally your crown jewel. Let’s enhance that asset! Your social platform should have different content but content that complements the site. Content that can engage and get a conversation going with customers and those interested in your product/service.

For example:

Let’s say your website is a travel site and you have a story on “Wines of the Central Coast of California”. Your Facebook page should not tell people that again with just a link to the story. It should be asking followers to take a look at the story and come back to post their favorite recipes that match those wines. Maybe you have your own recipes to compliment the story. You should always be thinking… How can I get a conversation going?

Take the time to enhance and compliment your social content to truly energize and engage your customers and followers.

Third mistake many companies are doing on their social crm platform:

The underuse and misuse of the company blog.

A well thought out blog with original and meaningful information is a very persuasive tool. Use your interactions with your customers or prospective customer to shape the content of your blog. Give them topics that will actually be interested. I have seen so many blogs that are just reposts from other sites (close to the above Facebook mistake). Take some time and have this done right. If your company does not have the time then there are many social marketing companies that can handle this for you. Not only will it get more eyes onto your website but when done correctly will have many people pass this information along; you are shaping your social message.

Great contact has so many plusses ranging from SEO benefits to customer engagement and brand loyalty opportunities. It’s a very cost effective way to check a lot of blocks off your marketing checklist!

I have just touched on a couple ways to use social CRM easily and cheaply for your organization. If you just did what was discussed here:

1) Set up your social platforms with different yet complimentary content. Make sure you are responding to all customer interactions proactively.

2) Start monitoring the web for all social interaction that may affect your organization. Once recognized start a conversation with text or by using state of the art cheap/free technology like Email/WebRTC to talk one on with a prospect/customer.

3) Set up a strong blog that is updated regularly with original and meaningful content. Make sure you use your customer interactions to shape the articles of your blog.

Just doing these three basic things are the first steps on the road to having a world class social CRM plan.