The Insurance Doctor

Year: 2021

  • 8 Financial Tips for Your New Year’s Resolution

    8 Financial Tips for Your New Year’s Resolution

    Six out of ten American’s will make some type of financial-based New Year’s resolution for 2022.  Usually, there is a triggering event like receiving your December 2021 credit card bill or spousal pressure to name two.  Follow these tips for improved financials in 2022:

    1. Consolidate Financial accounts: Consider closing 1 or 2 existing financial accounts that you are not tracking or have insignificant monies in.  This will save brain space, reduce statement clutter, and avoid paying unnecessary fees.
    2. Increase your 401k/employer retirement contributions:

    Raise your contributions a minimum of 1% per year.  You won’t feel the difference; however, over time it can make a major impact when entering retirement.

    • Develop a budget and or expense statement: Review credit cards, bank, and checkbook statements to get a handle on your inflow and outflow of money.  Start using a program like Quick Books or if old school, draft a budget by hand and hang it up where you can see it.
    • Set up a systematic money saving program:  Set up something informal like putting the $20 you are saving in gas on fill-ups in a jar.  Formal ideas are even better, such as buying a cash value life insurance policy, tax deferred annuity, mutual fund or setting up an Eft thru your bank account.
    • Protecting your HEALTH saves your WEALTH: We all know about the escalating cost of health insurance and health care in general.  Renew that gym membership, yoga studio membership, buy a Peloton, or dust off that treadmill in the garage.
    • Use All of Your Flexible Spending Account Money: If you have set aside pre-tax wages to go into a flexible spending account, (FSA) you have until December 31st to spend down the qualified expenses.  These expenses can include deductibles and expenditures that your health, vision or dental plans do not cover.  Double check if your employer allows you to “rollover” unused FSA money to 2022.
    • See If the Doctor Is In: If you have already reached your 2021 deductible on your health insurance policy, consider sneaking in that last doctor’s visit or procedure you have had on your to do list for 2022 before year end.
    • Bring balance to your life: Consider taking that vacation in January or February that you have been putting off.  The rest and rejuvenation will positively impact your health.  Statistics show that those who work 46-48 weeks per year will out produce the 52 week per year worker.

    My vacation experience gives me something to look forward to.  It is easier for me to work longer hours during year-end knowing I will be going away shortly.  Vacations force me to be super productive before leaving and again when catching up after returning home. 

    You will be amazed about how much better you will feel by following these 8 easy steps!  Wishing you and your family a Happy, Healthy and Prosperous 2022!

  • 2021 Year End Travel to Do List

    2021 Year End Travel to Do List

    Year-end is a time when many people, myself included, review what happened, how did I do versus my goals, investment returns, etc.  Just like you might want to review your bank accounts, now is a good time to review your hotel and airline travel points and miles balances. 

    My Top 5 Travel to do Tips Before January 1st, 2022:

    1. Check Your Progress to Airline Elite or Gold Status
    2. Check Your Progress to Hotel Elite or Platinum Status
    3. Review Your Credit Cards to See if You Still Need Them
    4. Redeem Free Travel Credits if You Qualify
    5. Research How to Get Back Miles That Expired This Year

    Most airlines will require you to earn or redeem airline miles within a certain timeframe to keep them from expiring.  Due to Covid-19, many people are not traveling right now nor keeping track of their miles and airline mileage programs.  Some airlines have suspended mileage expiration through the end of 2021 or thereafter.

    Several airlines have eliminated expiring miles completely, offering tremendous travel flexibility going forward.  Those airlines are Delta, JetBlue, Southwest, and United Airlines!  Keep in mind, these rules are subject to change, so be sure to read all emails and, if possible, upload their airline Apps onto your smartphone.

    For Hotels, aside from the Hilton Honors Program, most of the large hotel chains do NOT have a standard points reinstatement policy.  Instead, most of the large hotel chains have in place a suspended points expiration policy.  Hilton Honors, Choice Privileges, and Radisson Rewards are a few chains that have suspended point expiration until December 31st, 2021.

    Buying back expired miles and hotel reward points can be expensive and is not always worth it.  A better strategy is to prevent your miles from expiring in the first place. 

    For example. Hilton is the only hotel rewards program that allows you to reinstate expired points at the rate of 25 cents per point.  If you are looking to reinstate 120,000 hotel points for a night at the Waldorf Astoria in the Maldives, it would cost $300 to reinstate.  That fee could be worth it as the rooms at this resort regularly costs $2,000 per night.

    As per www.ThePointsGuy.com, the best strategies to prevent your airline or hotel points from expiring are:

    1. Go to the Airline or Hotel Website and Review Their Point System: Each company has different definitions of “activity!”
    2. The Easiest Ways to Keep Miles from Expiring is to Keep Earning or Redeeming Them: For those not traveling, consider the next strategies.
    3. Earning Miles Through Credit Cards: Some airlines and hotels count their own credit card expenditures or transferring balances as activity.
    4. Food and Shopping Programs: Some airlines allow you to earn points through certain shopping and dining portals.  For example, American Airlines has their “Rewards Program Portal” where you can earn points at certain restaurants and store websites, such as Staples.com.
    5. Non-Affiliated Credit Cards: Credit cards such as Chase “Ultimate Rewards,” Amex “Membership Rewards,” Citi “Thank You Points,” Marriott “Bonvoy Points,” and Capital One “Venture Miles,” allow you to transfer rewards to many of the frequent flyer programs.
    6. Donate Points to Charity: If you have a stash of limited points with an airline you rarely use, most of the major airlines will allow you to donate them to a charity.

    Regardless of which strategy you may use, it is worthwhile to spend some time on this to research ways to keep your hotel and airline points from expiring.  Wishing you Happy Travels and Happy Holidays to you and your Family!

  • Holiday Scams to Avoid

    Holiday Scams to Avoid

    Stay a step ahead of cybercriminals this season by being aware of these scams.

    It’s no wonder so many of us look forward to the holidays. It’s a time to gather with family and friends, share memories and gifts, and make plans for the coming year.

    Manage your Wealth

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    Bottom of Form

    Cybercriminals look forward to the holidays, too—but for starkly different reasons.

    This time of year represents an opportunity to unleash their schemes on a busy, distracted audience that’s focused on merriment, not mayhem. But being aware of some common scams can help keep you safe throughout the holidays.

    1. Package Delivery Scams

    An estimated three billion packages were shipped during the last holiday season.1 So, it’s not surprising that cybercriminals have concocted several schemes related to package deliveries.

    A popular scam involves receiving a text or email that asks you to click on a link for a number of phony reasons, such as to get an update about the delivery date, track the package location, give your payment preferences, provide delivery instructions or pay a shipping fee. You may also be given a phone number to call for more information about your delivery. Since fraudsters want you to act without thinking, they may convey a sense of urgency in their message.

    While some of these communications are obviously fraudulent—perhaps containing multiple misspellings or other errors—many are carefully crafted, even replicating a shipping company’s logo or email format in some cases.

    So, it’s easy to get duped, especially during the hectic holidays.

    Unfortunately, clicking on the link may infect your phone or computer with malware that enables a cybercriminal to capture your passwords or take control of your device. Or it may direct you to a form that requests personally identifying information, which can be a gateway to identity theft.

    Calling the number typically leads you to a friendly-sounding individual who asks you to verify your personal information or provide the credit card number used for your purchase. You might also be requested to pay an additional delivery fee, customs fee, or tax for the package.

    If you receive any of these communications, it’s best to simply go to the shipper’s website for more information about your alleged delivery using the tracking number provided. (Type the website address directly into your browser because search results may lead you to a fake or phishing site that mimics the authentic one.) Or call the shipper using a verified phone number.

    Sometimes scammers take a more aggressive approach and call you pretending to be a representative from a package delivery service. If this happens, don’t provide any personal information—just hang up. If you receive a voicemail with a call-back number, don’t return the call. 

    2. Missed Package Scams

    Who doesn’t hate missing a package delivery?

    Cybercriminals know this. So, they’ve created a ruse that involves leaving a note on your door claiming to have a package for you that couldn’t be delivered. The note contains a phone number to call to reschedule the delivery. If you call the number, you’ll be greeted with questions related to your personal identity that can later be used to commit fraud.

    If you receive a missed delivery note, look at it closely for any mistakes or other signs that it could be fraudulent. (It’s also a good idea to check your recent orders to see if a delivery was scheduled for that date.) Even if the notice looks legitimate, don’t call the number listed on the note. Instead, visit the company’s website to find the official customer service number.

    3. Gift Card Scams

    ‘Tis the season for gift cards. So, naturally, scammers have devised some ploys to take advantage of this.

    A common gift card scam involves receiving a phony or “phishing” email or text that appears to be from someone you know—such as an executive at your company—and asks you to purchase multiple gift cards for a work-related function. Or perhaps it’s a personal request allegedly from a relative or friend who claims to need some help with ordering gift cards.

    If you receive any unusual requests for gift cards during the holidays, reach out directly to the individual by phone to confirm the authenticity of the request. 

    4. Social Media Scams

    During the holidays, you might see promotions or contests on social media sites offering gift cards or vouchers in exchange for simply completing an online survey. Unfortunately, the survey usually isn’t legitimate. It’s only a means of capturing your personal information to commit identity fraud or other types of cybercrime.

    Or you might be offered a prize for just liking or sharing a social media post. But doing either could infect your device with malware.

    The bottom line? Be extra cautious during the holidays on social media, especially with enticing offers that seem unusually generous.

    5. “Brushing” Scams

    While the name of this scam is odd, the scam itself is even odder.

    You’ll receive a package you didn’t order bought from an online marketplace that allows customers to post reviews of their purchase. The item is typically cheap and lightweight.

    Since it’s the holiday season, you might think it’s just a gift from a stranger looking to pay it forward. In reality, it’s likely from someone who sells products on online marketplaces who wants to create fake, positive reviews. But, in order to post a review, the marketplace requires that a transaction be verified with a legitimate tracking number that shows a successful delivery.

    And that’s where your mystery package comes into play. That purchase creates a tracking number. So, after the package is delivered, your fake gift giver can write the review.

    The good news? You won’t be charged for the item, and don’t have to return it. Often the sender just randomly found your name and address online.

    However, it’s possible the fraudster created an online account for you at the marketplace or hijacked your existing account. So, you should report the activity to the marketplace. If you have an account at the site, change your password immediately. The United States Postal Inspection Service offers additional information about this scam.

    Taking Action

    We hope you’ll enjoy the holidays without the stress of dealing with fraud.  But, if you’re a victim, here’s what to do:

    • Report the crime to local law enforcement
    • Alert your banks and credit institutions
    • File a complaint with the FBI
    • Report the scam to the FTC

    Even if you simply encounter a scam, the FTC encourages you to report it to help others avoid becoming a victim

  • Post-Thanksgiving Holiday Shopping Tips

    As we enter the post-Thanksgiving holiday season, I was thinking about what I am thankful for.  In addition to good health, my family, and friends, I am thankful to “The Wave” for giving me the opportunity to create “The Financial Wave” column back on May 1st, 2020! 

    I saw a piece on the news this week that people are feeling pressure to spend money on holiday gifts.  Chanukah starts this weekend and Christmas is right around the corner.  Heed these 7 tips to save $$$ and reduce holiday shopping stress this season:

    1. Start Your Holiday Shopping Now: There is a saying “Action Diffuses Anxiety!”  Getting into action and knocking off items on your list now will reduce your stress levels.  Also, due to product shortages and issues with standard mail, it is wise to commence now.
    2. JoinHoney.com: On your IPAD, desktop or laptop, click on www.JoinHoney.com (does not work on mobile phones) and add the extension to chrome.  Honey automatically (similar to Capital One and others) searches for the best prices and attaches coupons when you are at the checkout section while internet shopping.  This often can save you more money than using Amazon and Ebay.
    3. Make a Budget:  Budget “X” dollars per person and keep the list with you when you are shopping either online or in brick-and-mortar stores.  Sticking to your budget is just as important as crafting it!
    4. Points, Points, Points: Using points is a very good way to bring prices down.  Credit card points, Verizon, AARP and many other companies and retailers have point programs that can mitigate high pricing.
    5. Buy Hot Toys Early: Research shows that, unlike other items, prices (and availability) of toys are better the earlier you can buy them.
    6. Search Out Free Shipping: There is no reason to pay extra for shipping if you do not have to.  These savings can add up over multiple holiday gift purchases. 
    7. Consider Switching to a Secret Santa:  Years ago, during a family dinner, the topic of doing your own Christmas shopping came up.  When my mother estimated she was buying about 80% of all the family gifts, we decided to adopt the “Secret Santa” program for us adults.  The way this works is that each adult (we still spoil the kids) is assigned one other adult to buy for, with a maximum price cap. 

    Last but not least, I would like to thank YOU, the loyal Wave subscribers and “Financial Wave” readers for your support! 

    For those interested in being added to our monthly email list or if there are topics you are interested in learning about, by all means email me at Rob@InsuranceDoctor.us.  Happy Holidays!!!

  • Inflation & Pizza

    Inflation & Pizza

    You will be hearing about inflation frequently during this holiday season.  The current administration forecasted a 2% inflation rate.  The Consumer Price Index numbers were just released, and from October 2020 to October 2021 the inflation rate was 6.2%!  This is the highest increase in the last 30 years!

    My friend Jay (originally from New Jersey) was in town from Maryland this weekend, and his favorite pizza is from New Park, so we had to go last Sunday before heading to Madison Square Garden for the Rangers vs. Devils game.  We were 3rd in line after 2 gentlemen who looked like they were in their late 60’s.  When the first man’s pie order came out, he asked, “how much do I owe you?”  The worker said $27 to the surprise of the man.  I said, “inflation just kicked in right now” and all 3 of us laughed. 

    Since the early 1960s, the price of a regular New York slice has almost matched the price of a subway token.  This was called the “Pizza Principle” or the “Pizza-Subway Connection!” 

    From New Park, I needed gas and paid over $4 per gallon for 91-octane on a credit card.  I have seen gas in Manhattan for $5 per gallon.  As per the Automobile Association of America, the national price of regular gas is currently $3.41 per gallon.  The New York State average is $3.56 per gallon.  The Manhattan average price is $4.33 per gallon. 

    This got me thinking about what has caused this inflation to be running rampant!  Basic economic supply and demand are what triggers inflation.  There are root causes for what is going on right now and we must adjust our budgets to cover these higher costs.

    The reasons include, but are not limited to:

    1. Government Covid Relief Bill: This bill disincentivized some people from returning to work. Now employers are seeking workers and paying higher salaries to hire them.  Increased wages cause inflation.
    2. Supply Chain Shortages and Delays:  The majority of US goods are trucked from coast to coast.  There is a shortage across of 80,000 truckers across America.  Long-haul truckers have gotten a raw deal over the years as working conditions have deteriorated.  According to the U.S. Bureau of Labor, the median trucker salary is only $47,000 per year, and adjusted for inflation, their purchasing power is down 30% from 1970-2020.
    3. Increased Costs of Raw Materials:  A combination of factors including increased gas and transportation costs and food shortages have driven up prices.  Your favorite Queens Pizzerias are paying more for tomatoes, cheese, basil, olive oil and cardboard boxes.  Some of these prices increases have been passed on to the consumer.
    4. Corporate America: When the pandemic first hit in 2020, corporations such as the airlines and automakers, went into survival mode and cancelled semiconductor orders, furloughed workers and slowed down production, which created supply shortages.  As the public had more disposable income, the demand increased faster than the bounce back in supply.  Unfortunately, this is not going away anytime soon.

    In summary, this will really impact Americans this Thanksgiving and Holiday Season.  This is a good time to adjust budgets and control spending, as your dollar will not go as far as it used to. 

  • Biden’s Gift to New York!

    Biden’s Gift to New York!

    Last weekend, President Biden’s $1.2T infrastructure bill passed, in a bipartisan Senate and House of Representatives. This bill will have a disproportionately positive benefit for New York and Rockaway in particular!

    There is an old saying, “the squeaky wheel gets the oil,” and this is what is going to happen with New York since we have more infrastructure needs than every other state except California.  If initial estimates hold true, roughly $170B (over 14% of the total) would be earmarked for New York State infrastructure projects.

    The New York Funds Breakdown is as follows:

    1. $12.5B:  For Roads, Highways, Bridge Repair, Electric Vehicle Infrastructure.
    2. $1B: For our 3 Airports:  JFK, $300M, Laguardia, $150M and Long Island MacArthur, $21M.
    3. $58B: For Trains:  $22B for Amtrak Improvements (includes the Gateway Tunnel to NJ Project, $24B for Northeast Corridor Modernization and $12B for Intercity Passenger Rail, including a “High-Speed” Rail! In addition, completion of the 2nd Ave Q-train to 125th st. and installed handicapped-accessible elevators at all stations.
    4. $90B: For Water Infrastructure:  $14.7B for the EPA (Environmental Protection Agency) Drinking Water Revolving Fund (provides grants and loans for projects). $14.7B for the EPA’s Clean Water Revolving Fund (for water quality improvement) and $55.4B in Supplemental Emergency Appropriations. 
    5. $9.8B: For Clean Buses and Mass Transit.  

    While this bill is a “game-changer,” I have mixed feelings about it.  To use an insurance term, it is great to see that both parties can come to somewhat of a consensus by “unbundling” the bill and breaking it off the proposed $2+T “Social Spending” bill.  

    My top 5 benefits to the United States from this bill:

    1. It will create hundreds of thousands of jobs and get people off couches!
    2. This will be a boon to the “Steel Industry!”
    3. Additional Modern Roads Will Increase Trucking Efficiencies and Cut Back on Carbon Emissions!
    4. Increase Domestic job creation!
    5. Drinking Water Quality Will Improve, Which Will Improve American’s Health.  There is a Water Company Called “Heart Water” That Could Solve Our Water Problem if Given the Chance to Scale (keep a lookout for a future column on this).

    As we all know, Rockaway has been devastated by Super Storm Sandy. We have shown our resiliency building Rockaway back better over the past 9 years.  This splurge of money can be used to:

    1. Fix Rockaway’s roads, especially Beach Channel Drive.
    2. Develop Additional Transportation Methods from Rockaway to Manhattan.
    3. Continue Improvements for future storm resiliency.
    4. Create new jobs in Rockaway.
    5. Prices of electric vehicles will come down as auto makers introduce their new EV models.  I predict the 2023-2024 models will be the optimal time to buy electric!  Buying electric and adding charging stations will improve Rockaway’s air quality and reduce carbon emissions.

    The general public might not find It easy to grasp how much $1 Trillion dollars is, as we could have done this while spending less money.  According to www.USDebtClock.org, the current US Deficit sits at $28.8 Trillion or $86,637 per person.  The proposed $3.5T package (not yet passed) would be equivalent to over 12% of our current deficit.

    To give an example how we got ourselves into this deficit situation, look at the Federal deficit progression below:

    President: Debt at Start of Office                       Debt When Leaving Office

    George Washington (1789-1797)                       $82 Million:  211 years later

    William J. Clinton (1993-2001) $4.4T                 $5.8 Trillion

    George W. Bush (2001-2009) $5.8T                  $11.9T

    Barack Obama (2009-2017) $11.9T                   $20.2T

    Donald J. Trump (2017-2021 $20.2T                 $27T

    In summary, this is the largest investment in domestic infrastructure since the 1950s!  It is prudent to spend money on long-term projects with trickle-down effects that will improve this country and our quality of life.

  • Why a 2022 Social Security boost may not be enough

    Why a 2022 Social Security boost may not be enough

    The Social Security Act (SSA) was signed into law by then-President Theodore Roosevelt on August 14th, 1935. In addition to several provisions for the general welfare, the new Act created a social insurance program designed to pay retired workers aged 65 or older, a continuing income after retirement. 

     As per SSA.gov taxes were collected for the first time in January of 1937, and the first one-time lump-sum payments were made that same month. What many people did not know at the time is the average life expectancy in 1935 for men and women was 59.9 and 63.9 respectively. Roosevelt must have figured few people would live long enough to collect.

    Social security is indexed for inflation, which is currently running rampant. It is hard to not notice the prices of goods and services have been rising. Comparing September 2020 to September 2021, for example:

    1.   Gas has increased an average of 42%

    2.   Eggs have gone up 35%

    3.   Bacon had a 28% increase

    4.   Used or Pre-Owned cars are up 24%

    5.   Kids shoes up 12%

    6.   Food on average is up 12% and

    7.   Furniture is up 11% over the last 12 months

    inflation CPI cost of living
    The rapid rise of consumer goods outpaces income for many

    When inflation surges like this, older Americans are the ones who are affected the most. Many seniors are on a fixed income and have their money invested conservatively, such as bank accounts and bank CDs (which I call Certificates of Disappointment!) This time of high inflation and super-low interest rates compounds the problem for many senior retirees.

    The good news is that it was just announced that Social Security recipients are slated to receive a 5.9% cost of living adjustment (known as COLA) in 2022! This benefit increase would be the largest in nearly 4 decades. 

    Based on my 7 examples above, the 5.9% increase will still not be sufficient to offset the skyrocketing increase of goods and services. In addition, there is the federal Social Security tax bite of 50% for individuals earning between $25,000 and $34,000 and 85% for single tax filers earning over $34,000 per year.  For joint tax filers, income between $32,000 and $44,000 would pay a 50% tax on your benefits. Couples earning over $44,000, up to 85% of your benefits may be taxable. Certificates of Deposit (CD’s) compound the issue because the taxable interest they earn (even though you don’t withdraw it) counts against your income.

    Other than repositioning assets and investments, older Americans have few options to increase their cash flow to absorb price hikes outside of returning to work or increasing hours of employment should they still be working. 

    See my tips below on options to help you offset inflation eating away at your purse or wallet:

    1.   Consider Credit Unions or Internet Banks: Both credit unions and internet-only banks will usually pay higher interest rates than brick and mortar banks.

    2.   Consider Transferring CDs to Fixed Annuities: Fixed annuities (issued by insurance companies) help in 3 ways. They typically offer higher interest rates than CDs.  The interest is tax-deferred, which lowers Social Security taxes, and most CD’s allow for a 10% per year no-fee withdrawal. If you withdraw (break) CD money before maturity, you lose ALL of the interest accrued. 

    3.   Consider Selling Your Life Insurance Policy if Not Needed: For older Americans, (especially in poor health) a life insurance settlement could make sense. We have been able to help clients obtain 2-5 times their life insurance cash-values (lump sum with usually no tax) by selling their no longer needed life policy, as well as saving them money they were paying in monthly premiums.

    4.   Consider a Reverse Home Mortgage:  Homeowners could be sitting on an inflation hedge by tapping into their home’s value with a reverse mortgage. This is not for everyone. It is wise to consult with a professional. Homeowners with no mortgage balance could set up monthly payments or a line of credit that can be tapped as needed. Those who are currently making mortgage payments would immediately see a boost in monthly cash flow by refinancing into a reverse mortgage; hence, eliminating their required monthly mortgage loan payments. 

    A great mentor of mine used to say, “the situation is the boss.” Each situation is different. There are other options like series I-savings bonds too numerous to mention. The worst possible decision is to DO NOTHING!

  • The Rolling Stones, Rolling in Dollars!

    The Rolling Stones, Rolling in Dollars!

    Last week, I had the pleasure and privilege of flying to Pittsburgh, PA. to see the Rolling Stones play an outdoor concert at Heinz Field, home of the Pittsburgh Steelers!  I flew from LaGuardia to Pittsburgh (a 1-hour flight) and my best friend Jay, from Lehigh University (who lives in Bel Air, Maryland) picked me up at the airport and we drove to center city Pittsburgh for a 2-night stay.

    This was not an everyday show, as the Stones have been jamming for almost 60 years.  One of my favorite Rock bands, I have seen The Stones opening their 1989 Steel Wheels tour in Philadelphia, at the MGM Grand Hotel in Las Vegas, and also in 1994 Toronto to name a few.  That 1989 tour is when the Stones changed what was a typical stadium tour into a theatre-like setting with huge blow-up dolls while playing “Honky Tonk Woman!”

    Other than perhaps Kiss, the Rolling Stones have mastered the marketing of their brand and logo, the famous Big Red Lips and Tongue.  For Mick Jagger and the Rolling Stones, Rock and Roll is BIG Business!

    The Stones had last played Heinz Field in 2015.  The total capacity of Heinz Field is 68,000, although they do block off about 15,000 seats behind the stage.  Their revenue from that 2015 Pittsburgh show was $9,000,000 from the 50,000+ fans that attended.

    Mick Jagger arguably the best frontman in history, is, in my opinion, what makes the Rolling Stones different from all other bands.  Few people know that Mick spent some of his teenage years studying Finance and Economics at the prestigious London School of Economics, before quitting school to start a band! 

    Most bands concentrate on their craft and leave the day-to-day business operations to their agents.  Not 78-year-old Mick, whose net worth is over $360 million.  The Rolling Stones operate like a well-oiled business with 300 employees. It costs them $1,000,000 per week to “keep the show on the road!”  They had 11 people on stage and many more behind the scenes.  In a 1994 interview with Ed Bradley of 60 minutes, (the 14-minute interview can be seen on YouTube) Mick referred to himself as the Chief Executive of Business Operations of a Mobile Virtual Corporation.

    Here are 5 surprising lessons business owners can learn from Mick Jagger:

    1. It is Not Enough to Have a Great Idea or Product: There have been many great bands over the years; however, only a few have ALL members financially secure for life.  It takes business skill to know what gigs to book, how to promote new albums, how much to charge for tickets, and how to manage employees.
    2. Learn from Your Mistakes: The Stones lost big money in the 1960’s.  Jagger was quoted in a 2002 Fortune Magazine article saying, “I’ll never forget the deals I did in the 60’s, which were just terrible.  You say, oh, I’m a creative person, I won’t worry about this.  But that just doesn’t work!”
    3. Do NOT Give Up: The Stones song “You Can’t Always Get What You Want” carries a message for small business owners.  “You can’t always get what you want, but if you try sometimes, you might just find, you get what you need!”
    4. Stay Relevant: One of the reasons the Stones have had staying power through generations is because they keep people talking.  Whether putting out new albums, licensing their old songs to new movies, the Stones continue to be a topic of conversation.
    5. Understand the Importance of Collaboration: Jagger has made many savvy decisions about partners.  Two band members (until drummer Charlie Watts recently passed away) have been with him since the 1960’s.  Others have shuttled through the band over the years.  It is important to know when to make changes for the betterment of the band.

    Mick Jagger and the Rolling Stones have lived long and storied lives.  Since Mick has 8 children with 5 women, it is good that he has been prudent with his money.  He made an excellent career choice, and when you do what you love, work will never be a chore!  Rock On Rolling Stones!

  • FAFSA= Free Money, Get in Line!

    FAFSA= Free Money, Get in Line!

    FAFSA is defined as the Free Application for Federal Student Aid.  October 1st, is when the FAFSA $$$$ floodgates just opened for 2022.   There is much confusion on FAFSA, what it is and how it works.  Sometimes, I think the colleges prefer it that way.  Let me shed some light on the subject. 

    Reasons for your college bound student (and you) to complete their FAFSA this week:

    1. FAFSA is First Come First Serve: There is $150 Billion available RIGHT NOW while coffers are full!
    2. FAFSA is Mandatory: Your student cannot get money without it.  Since it is based on timing not need, why not move to the front of the line?
    3. FAFSA is an Application NOT Financial Aid Itself: Some FAFSA money is FREE money, some must be earned through work-study programs, and some must be repaid.

    College planning can be rewarding AND stressful.  Ignorance with this can be financially devastating.  Over the years, I have seen how mistakes have cost families hundreds of thousands of dollars.  In addition, we have helped students obtain more than $10,000,000 of “FREE ENDOWMENT MONEY” over the years!

    The best money to use for college tuition is “Other People’s Money!”  To explain this, endowment money needs to be defined.  I will do this by example.  My father, Robert Intelisano Sr. (aka The Padrini), attended Fordham University.  When he donates money back to the school, he cuts a check which goes into the Fordham Ram “Endowment Fund.”  This money gets pooled with other alumni donations.  Fordham does NOT have to pay taxes on the receipt, nor interest that this money earns; however, Fordham is required to disseminate a portion of their endowment each year to incoming freshman and current Fordham students. 

    The trick is learning how to extract the FREE endowment money from the school of your choice, instead of relying on work-study and need based aid programs and loans, which must be paid back.  Some endowment money is merit-based and some is need-based. 

    The need-based monies are based on what is called your EFC score.  EFC stands for Expected Family Contribution.  Basically, you complete the FAFSA, tell the government where your money is and how much, then they tell you what you can afford.  Your EFC score is based both on your income and where your assets are.  Anyone who has a student in college knows what I am talking about.  Your EFC is like golf, the lower the score the better.  If my father were applying to Fordham now, he would not be happy to see the annual tuition is over $52,000 per year, and all in, the cost of attendance (including room and board, books, food etc) is over $79,000/year.  If his EFC was $59,000, it would be difficult to get more than $20,000 of merit-based free money (the difference of his EFC score and the cost of attendance).

    Unless you own your own business, it is not feasible to lower your income.  There are ways to lower your EFC by repositioning assets from FAFSA unfriendly assets (bank accounts, mutual funds, CD’s) to FAFSA friendly assets (ones you DO NOT need to mention on the application) such as annuities and cash-value life insurance products. 

    My firm can help you lower your EFC.  EFC is an annual score so your student can qualify for $4 for every $1 you lower your EFC.

    THE BIGGEST FAFSA MISTAKES TO AVOID ARE:

    1. To Assume You Will Not Qualify: There is a ton of BAD INFORMATION on this topic, and many college counselors are not knowledgeable.  Do NOT assume you make too much money and therefore not complete the application.
    2. Waiting Until 2022 to Apply: This is a BIG MISTAKE, as you will go to the back of the money-line!  It also gives you less time to “appeal,” as you can appeal and ask for additional FREE money later in the process.
    3. Not Visiting Schools AFTER You Are Accepted: More often than not, schools will give you MORE FREE ENDOWMENT MONEY AFTER you visit. 
    4. NOT Considering Speaking to a Professional: A pro can help you navigate these choppy waters. 

    For the DIYers (Do it Yourself) I suggest buying the book by Elizabeth Wissner-Gross called “What High Schools Don’t Tell You” (and other parents don’t want you to know), or go to www.WhatHighSchoolsDontTellYou.com. 

    For those who are looking for a program or coaching, I suggest Andy Lockwood and Lockwood College Prep.  Their website is www.LockwoodCollegePrep.com and you can see video’s, (short and good) get on their email list and consider hiring them.  For questions, Wave readers can reach out to me at Rob@InsuranceDoctor.us.

    Remember, if your student is now a senior, these financial moves must be made by 12/31/2021, which is when you can NO LONGER make any financial changes so ACT NOW!

  • Autumn Money Saving Tips

    Autumn Money Saving Tips

    Now that the fall is here, it is a good time to tighten up your budget before the holiday spending splurge!  Christmas and Hanukah shopping can get out of hand if you let it.  Heed these money-saving tips to avoid overspending:

    1. Consider Installing LED or CFL Lights Where Possible: New lighting technology has come a long way the past decade.  LED (Light Emitting Diode) lights can last for years without replacing them.  Although it costs more now, you will save big money going forward.  You can save about $45 per year for every 4-5 bulbs you replace.  You can replace a room or 2 at a time and enjoy the savings!  CFL (Compact Fluorescent Lamps) are a less expensive option that are more energy-efficient than traditional incandescent bulbs.
    2. Try to Quit Smoking:  I know this is a tough one; however, now that the summer barbeque (and drinking) season is over, now is time to take care of business!  A pack of cigarettes per day habit costs over $2,000/year!
    3. Buy Offseason Gifts:  If you see something offseason on sale you know would make a great gift for someone, buy it and keep it in a gift drawer or closet for future use.  You will be glad you did when the holidays arrive, and you have a head start.  There will be product shortages during the holiday season.  You will be 1 step ahead!
    4. Cancel Unused Subscriptions:  Go through your credit card expenditures and checkbook and see where you can cut expenses.  Whether it is a hardcopy newspaper, unread magazines that are piling up, or excess television channels, now is a good time to “Trim the Fat!”
    5. Make a Grocery List BEFORE Shopping: Did you ever go grocery shopping when hungry (or “Hangry) and wind up with much more than you had planned on buying?  Try making a list and eating a full meal before heading to the supermarket.
    6. Buy in Bulk: One of the easiest ways to start saving money is to buy in bulk!  Stores such as Costco, BJ’s and Sam’s Club are a good place to start.  Items that have a long shelf life like paper goods, cleansers and detergents can be bought in bulk.  Families can also alternate shopping runs and share the savings.
    7. Use Government Rebates to Get Solar Panels:  There are new 2021 rebates that can save thousands of dollars (depending on what zip code) of discounts to get solar panels installed in your home.  Sometimes, it can be FREE!  There are many companies that specialize in solar.  They can visit your home, and depending on the slope and measurements of your roof, you may qualify for a FREE or deeply discounted installation.
    8. Brew Your Coffee at Home: This is a good time to make a switch to less expensive coffee and home brewing.  Coffee is usually less expensive at supermarkets and specialty stores, such as Home Goods.  An average cost of a Starbuck’s coffee in New York is about $4.50-$5.00.  The average cost to brew at home is 30 cents per cup.  If you do the math, 2 cups per day (5 days/week) of Starbucks is about $2,500/year.  That is your IRA (Individual Retirement Account) money for the year!
    9. Look for Veteran and Senior Discounts:  These discounts can add up.  All active Military and Veterans are eligible for a 10% discount at Lowe’s!
    10. Add an Extension to Your Computer if you Use Chrome:  There are several extensions (you only need to choose 1) you can add to your chrome browser.  I prefer using “Honey.” These extensions will automatically search for better deals before you pay for your online purchases.

    Saving money is not difficult as it is more about changing habits.  This can be done in baby steps, and you will be amazed at how much you can save.  An old adage, “a dollar saved is a dollar earned” is an understatement, because it is after-tax money.  If you are in the 20% tax bracket, a dollar saved is equivalent to a $1.20 earned.  Try these tips and let me know how you are doing!