The Insurance Doctor

Year: 2021

  • Vegas Comes to New York!

    Vegas Comes to New York!

    Legal sports betting hit an all-time high during the first week of NFL (National Football League) games last week!  According to Tech Firm Geo Comply Solutions, there were 58.2 million betting transactions between the Thursday September 9th, and Sunday (September 12th) Night Football games.

    Since 2020, legal sports betting transactions have doubled.  Much of this is because of the increase of many states allowing legal sports betting via mobile phone and/or in-person. 

    New York State is losing millions of dollars, mostly to New Jersey and Pennsylvania.  It is not a coincidence that New Jersey, earlier this year, announced a “balanced budget” and made FULL PENSION PAYMENTS for the first time in over 25 years!

    There are 22 states (including New York State which is a few months away from launching mobile phone sports betting) that currently allow legal sports betting. 

    Currently, 9 states (including Connecticut) have passed the law and are in difference stages of implementation.  Fifteen states are in the process of legalizing sports gambling and there are only 2 states (Idaho and Wisconsin) that have not had any publicly announced bills devoted to sports betting legalization. 

    A few interesting legal state scenarios include:

    1. New Jersey: On June 18th 2018, Governor Phil Murphy signed the sports betting bill that had passed the previous week.  Three days later, the William Hill sportsbook took bets at Monmouth Park, where Phil Murphy was first in line to place a bet.  The Borgata in Atlantic City booked sports bets 30 minutes later.  Other sports books have popped up, such as FanDuel’s first sports book at the Meadowlands which opened 1 month later.  New Jersey allows mobile and in-person legal sports betting.
    2. Delaware: On June 5th, 2018, Delaware moved to offer single-game betting on a number of sports at 3 casinos in the state.  Expanded betting can take place at additional locations and on-line. Delaware allows in-person betting only with NO betting on in-state college teams.  There is no betting permitted on games involving in-state college sports teams!
    3. Pennsylvania: The Hollywood Casino at Penn National Race Course booked the first legal sports bets in Pennsylvania in mid-November 2018. 
    4. Washington DC: In June 2020, the D.C. Lottery launched it’s “GameBetDC” platform, allowing consumers “to wager while in the District on major sports worldwide” via computer or mobile device.  The William Hill Sportsbook opened up inside the Capital One Arena in Washington marking the first sportsbook to open inside of a U.S. arena!
    5. New York State: A law was actually passed back in 2013 allowing legal sports betting at 4 on-site locations, all in upstate New York.  As per ESPN.com, the law was revived after a Supreme Court ruling in 2018.

    What does this all mean for New York, you might be asking yourself?  Just like with legalized Marijuana, New York State has “dropped the ball” and lost many millions annually to New Jersey. 

    Since mobile phones are tracked for sports betting, I have read and heard stories of Manhattanites riding their bicycle over the George Washington Bridge to the New Jersey side, placing their bets, then riding back to the New York side.

    Draftkings and FanDuel have early market share and name recognition.  When my Aunt Carol (who is a scholar and dislikes sports) referred to a catchy Draftkings commercial saying “make it rain” 2 years ago, I knew this would be in the mainstream immediately.  The UFC (Ultimate Fighting Championship) allows fans to bet during fights as odds change in between rounds. 

    The downside to legal sports betting in New York State is that gambling is an addiction, and this will only make it worse.  There must be new levels of support, safeguards, and counseling available to the current and new gambling addicts. 

    On the positive side, New York State’s and New York City’s coffers could certainly use the much-needed revenue generated by legalized sports betting.  It could go a long way towards helping to solve the problems such as homelessness, overcrowded jails, climate reform and a crumbling infrastructure.

    What are your opinions on legal sports gambling?  Feel free to email me @ rob@insurancedoctor.us

  • Fall Shopping Tips for Allergy Sufferers

    Fall Shopping Tips for Allergy Sufferers

    The fall is here bringing with it another allergy season!  The USA loses millions of dollars in annual production from employees calling in sick due to allergies.  Many persons (like myself) suffer from adult-onset allergies, while others have been suffering since childhood.

    Did you know that only 8 types of foods account for approximately 90 percent of allergic reactions? 

    As per the CDC (Center for Disease Control and Prevention) the top 8 most highly allergic foods are:

    1. Peanuts
    2. Cow’s Milk
    3. Eggs
    4. Tree Nuts
    5. Fish
    6. Shellfish
    7. Soybeans

    There is no current cure for peanut allergies, the most highly allergic food. The ONLY way to prevent allergic reactions to peanuts is to AVOID ALL FOOD and food products containing peanuts in any form.  Peanuts or peanut products can be disguised on labels as “hydrolyzed vegetable protein,” ground nuts, goober nuts and beer nuts!  Additional foods to avoid include chili, eggrolls, certain Thai dishes such as satay sauce, Chinese food, and macaroons to name a few.

    I suffer from allergies to fragrances, which seem to be in almost everything.  Bathroom and Kitchen products, such as shampoo, hair conditioner, dishwasher fluid, and soaps, as well as candles.   I was forced to change all my household supplies to avoid allergic reactions.

    Heed these 6 shopping tips if you have allergies and/or asthma:

    1. Look for the Asthma & Allergy Friendly Mark: Being selective and attentive to what you purchase can prevent you from creating your own allergic problem.  Look for the AAFA (Asthma and Allergy Foundation of America) mark and go to www.AAFA.org/certified for more information.
    2. Avoid Certain Cleaning Products: Removing allergens at home requires cleaning regularly.  Stay away from fragrances and consider wearing a mask while cleaning.  Detergents like ALL “Free and Clear” have no allergens or fragrances.  Costco’s house brand, Kirkland makes a detergent called “Ultra Clean” that is free and clear of dyes and perfumes!
    3. Buy Breathable Bedding for Better Sleep: We spend almost 1/3 of our lives in bed so it is important to purchase products that will not trigger allergic reactions.  Read labels and consider am “allergen free” mattress cover.
    4. Consider Air Cleaners: Good indoor air quality is critical for everyone in the family!  Read independent testing reports before buying air cleaners and humidifiers.
    5. Use a High-Quality Vacuum:  Cheap vacuums redistribute the allergens during use, and also when changing the cleaning bag.
    6. Gift Toys that Inspire Smiles, not Sniffles: Brain stimulating toys are best for kids.  Try to avoid stuffed animals.  Beware of those stuffed with allergen filled bedding products.

    Label reading is crucial for food, bathroom, kitchen, cleaning, and all products for the home.  The USA does a poor job with labeling and there needs to be an overhaul to the system.  In the meantime, reading labels can prevent getting sick!

  • The NEW Small Business Model

    The NEW Small Business Model

    Small businesses are the financial backbone of the United States!  As of August 2020, the number of registered small businesses in the USA exceeded 31,000,000.  I can tell you from experience, it is NOT easy to run a small business. 

    During this Covid-19 Era, it is even MORE difficult to run a small business.  Over the past few years, new rules, such as paid sick leave and paid family leave, have been enacted, adding to a long list of (non-income-generating) responsibilities that business owners must now contend with.  This is in addition to responsibilities such as, updated sexual harassment training, regular employee management issues (like calling in sick), compliance, payroll, worker’s comp, NYS disability, employee benefits (such as 401K), and group insurance.

    About 15 years ago, I took a small business practice management course in Toronto, Canada called “The Strategic Coach!”  I had founded Intelisano & Associates in 1999 and wanted to take my company to the next level.  Strategic Coach teaches small business owners to concentrate on what they do best (which for me is problem-solving and bringing in new business) and outsourcing everything else, including the grunt work they dislike doing.

                Strategic Coach refers to “The 3 D’s,” DO It, Delegate it or Delete it! 

    Wouldn’t it be great if small business owners could delegate everything they dislike such as new employee orientation, human resources, payroll, insurance benefits, setting up the 401k, and conducting mandatory employee compliance and training classes?  Wouldn’t it be even better if a said business owner could be relieved of most of the stressful liabilities that running his or her business entails AND save money doing it?  All this is possible by using a PEO (Professional Employer Organization) strategy! 

    The google definition of what a PEO is, “an organization that enters into a joint-employment relationship with an employer by leasing employees to the employer, thereby allowing the Professional Employer Organization to share and manage many employee-related responsibilities and liabilities.” 

    As per Wikipedia, a PEO is an outsourcing firm that provides discounted services to small and medium-sized businesses.  Clients often ask me how many employees would be a minimum to qualify for a PEO.  My answer is “it depends!”  It depends on the type of business you are in and how many full-time and part-time employees you currently have.  Once a business grows to 5 or 6 employees, that business should consider looking at a PEO to benefit from “Economies of Scale!”

    The primary downside of working with a PEO is the initial transition (it is a big change in your business model) and a degree of loss of employee control.

    Some Benefits of Transitioning to a Professional Employer Organization are:

    1. Offers Better Employee Benefits and Human Resource Experience:  A good PEO dedicates a specific representative for your firm or team to help on-board new employees and answer any employee questions, concerns, or problems regarding benefits.
    2. Saves Money: A PEO connects a small company to a large company which saves you between 20%-40% on health insurance premiums while granting access to better plans, meaning you get more benefits and pay less money! 
    3. Maintains Payroll and Compliance: There are more compliance and employment liability rules to follow than a business owner has time to learn and keep up with.  The PEO allows the business owner to transfer these risks to the PEO while saving money. 
    4. Saves Time: Time is Money!  The business owner now is freed up to not spend any time, brain space or headaches that come with “MANAGING PEOPLE!”
    5. Offers a Full Range of Services: A PEO offers big-company ancillary benefits that employees can enroll into, like discounted vision, dental, disability and life insurance policies even if you are uninsurable.
    6. Saves 1 or 2 Salaries: The PEO would handle most of the tasks that a Human Resource (HR) person and/or office manager would be responsible for.

    I have found that few insurance agents and brokers have knowledge about PEO’s (Professional Employer Organizations).  If you own a small business with 5 or more employees and are interested in learning if a PEO is a fit for your business, reach out to me at Rob@InsuranceDoctor.us or complete our intake form at www.InsuranceDoctor.us.  There are many PEO options out there; however, not all of them are a good fit.  We can assist you in matching the right PEO for your specific needs and answer your questions going forward!

  • Back to School $$$ Saving Tips

    Back to School $$$ Saving Tips

    As we begin the 2021-2022 school year during what I call, “The Covid-19 Era,” there is much uncertainty and trepidation.  Some schools commenced last week, others will start this week or after Labor Day weekend.  Our Mayor says the school must be in person because “our children are safer in the classroom.” 

    Whether or not you agree with him, there is one thing that is a certainty,  our students will continue to be schooled and they will need school supplies this year and going forward. 

    Like many things, back to school shopping is a habit.  Some are efficient habits, and some should be broken.  I notice differences in shopping habits between men and women.  The evolution of the internet, Covid-19, and the closing of many malls and brick and mortar stores have forced a change in buying habits for many parents and grandparents.

    Regardless of your habits, there are always things to learn, new habits to form, and ways to save money on these annual expenses, which can add up.  Take a look at my top 8 money-saving tips and perhaps start a new habit:

    1. Make a List, Then Check the House First:  Go through closets, storage, and utility drawers first.  There is a possibility you might have items leftover from the last school year.
    2. Craft a Budget:  It is always a good idea to have a price-range limit that you are willing to spend.  Keep the list with you when you are shopping either on-line or in person.
    3. Consider Setting Up a Gift Closet or Large Draw: A client shared this tip with me as she showed me how she turned a little used hallway foyer closet into a gift closet.  She buys many offseason gifts early at a deep discount and has saved big $$$ over the years.
    4. Check Out the Dollar Store First:  Before going to the big on-line and mega-retailers, there is a chance your local dollar store will have the items you are looking for at a discount.  They often buy excess lots or last year’s leftovers in bulk at a big discount, and pass some of their savings on to you.
    5. Consider a Desktop, Laptop or Tablet: For on-line shopping, it is prudent to use the bigger screen to look at and compare prices.  In addition, although smart phones have many good apps, there are discount and coupon finding extensions that can be added to your computer (especially if you use google chrome) to save you major search time.  See Tip #6.
    6. Consider Adding the Honey Google Chrome Extension to Your Computer: On your laptop, desktop, I pad or other tablet, click www.JoinHoney.com and add the Free extension.  This extension (not for phones) automatically searches for the best prices (often less than Ebay and Amazon) and you are notified immediately before “check-out!”  There are other extensions (such as Capital-One) that you can use, although some are better than others.
    7. If You Use Amazon, Consider Camel, Camel, Camel:  The big four (Amazon, Walmart, Target and Ebay) account for most internet sales.  If you are a loyal Amazon user, consider Camel, Camel, Camel. (CCC) Camel is an Amazon price tracker.  Find the product you are interested in buying, then cut and paste the URL into CCC to look up the item’s price history and/or add it to your price watch list.  If this is too complicated, go back to #6!
    8. Consider Holding Off Buying Trendier Gear:  It is advantageous to wait a few weeks after school starts to see what are the “in” styles.  Sometimes kids are wrong, so it is better to wait instead of trying to anticipate the hip new clothes and sneakers.

    Heed these 8 tips and watch your savings start to add up.  It has been a tough run for our grade-school and young adult students (due to no fault of their own).  I wish you and your families a safe and productive school year!

  • Pizza = Big Business

    Pizza = Big Business

    Pizza is my favorite food! The passion for pizza goes way back to my early childhood when my Sicilian Grandmother, Anna Intelisano, made her own pizza for us. At our house, for a variety of reasons, we would often have pizza on Friday nights with cannoli for dessert.

    Pizza was invented in Naples, Italy in the early to mid-1800s. The classic Margherita-style pizza was named after the Italian “Queen Margherita!” In celebration of the queen’s visit to Naples in 1889, a popular pizzeria made a pizza to match the white, green, and red of the Italian flag. 

    Pizza became popular in the United States in late 1945, when returning soldiers who fought in Italy in WWII spread the word. The first pizzeria in the USA was Lombardi’s, which opened in 1905. 

    I led a pizza crawl in October 2019 (see the picture) which started at Famous Ben’s, then onto Prince Street pizza (my #1 pepperoni Sicilian slice,) followed by a fabulous sit-down meal in the Lombardi’s basement dining room. 

    Lombardi’s was founded by Gennaro Lombardi.  His employees included Anthony “Totonno” Pero, John Sasso, and Pasquale “Patsy” Lanceri. The 3 pizza makers left and launched their own pizza establishments called Totonno, John’s, and Patsy’s respectively. Thus, the Lombardi pizza family tree was created! Subsequently, two pizza generations branched out to places like Patsy Grimaldi’s (his nephew) and Lucali. 

    There are now numerous pizza styles such as Detroit-Style (Emmy’s and Emmy Squared,) a new wave of Neopolitan artisanal personal pizza styles such as Roberta’s, Keste, Best and Motorino. With these hybrid styles have come large price increases.

    Food and Wine recently came out with a report ranking New York pizza #3 behind New Jersey and Connecticut. Their reasoning is that New York pizzerias are in a hurry and rush the process to make more profit. I am not buying this; however, I do have a few places in N.J. and Ct. on my radar to do my own comparison.

    I have found excellent pizza all over the world. From Naples (we went to Pizzeria da Michele, featured in the Eat, Pray, Love Julia Roberts movie) to Sydney, Australia to Bogota, Colombia.

    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.” This held true until about 6-8 years ago when pizza prices started to ramp up and become a huge money-making business. Now, in many places, a gourmet slice with toppings can run between $4-$5 per slice.

               Courtesy of factretriever.com, my top 10 pizza factoids are:

    1.   In America, annual pizza sales exceed $28 billion per year.

    2.   Over 5 billion pizzas are sold every year in the world.

    3.   Over 3 billion pizzas are sold every year in the United States.

    4.   Americans eat approximately 350 slices per second.

    5.   Recently, Halloween unseated Super Bowl Sunday as the biggest pizza day.

    6.   Thanksgiving is the day Americans eat the least amount of pizza.

    7.   October is national pizza month.

    8.   The average American eats about 46 slices or 23 pounds per year.

    9.   The most popular pizza topping in the USA is pepperoni.

    10.Lady Gaga once bought $1,000 worth of pizza for fans waiting in line for her autograph!

  • Good Credit = More $$$$

    Good Credit = More $$$$

    Your credit score is one of the most important measures of your financial health! I have found that few advisors have a handle on how to coach their clients to improve their credit scores.

    There are ripple effects to having good or poor credit. The better your score, the easier you will find it to be approved for new loans and or lines of credit. A higher credit score can give you access to the lowest available interest rates when you decide to borrow. Good credit will improve your odds of getting approved for credit cards. There are employers that will run your credit score before deciding on hiring you. In addition, the higher your score, the less money you will pay for auto and homeowners insurance premiums!

    Regardless of your age or current credit situation, it is NEVER too late to improve and/or build your credit. It takes some time, effort, discipline, and in some cases, breaking bad habits. There are niche companies that charge thousands of dollars to help fix your credit. You will not need to hire them if you heed my 10 tips below:

    1.   Review Your Credit Reports: You must start somewhere, so review your current credit reports. This is free and easy to do. You can pull a copy of your credit report from each of the 3 national credit bureaus: Equifax, Experion and TransUnion. This can be done for free once per year at www.AnnualCreditReport.com. To improve your credit, it helps to know what is working against you or in your favor.

    2.   If Possible, Pay Off 100% of Your Balances Every Month:  Carrying over balances from month to month is a costly way of doing business. If this is an issue for you, I suggest enrolling into “auto-pay” online, one credit card at a time, so you can stabilize your finances. Payment history counts for about 35% of your credit score. 

    3.   Correct Inaccurate or Additional Personal Information: Almost 90% of credit reports have your credit or personal information on you that is either inaccurate or dated. 

    4.   Keep Credit Balances Below 30% of “Available Credit:” Credit card balances should be below 30% of your available credit ALL the time! If you need more credit, get another credit line.

    5.   Consolidate Student Loans:  There are banks that have special programs designed to consolidate existing student loans (usually for balances of $100,000 or more) into one loan at a lower interest rate, which can save you $100’s per month from day one.

    6.   Limit Credit Inquiries: You should have a maximum of 7 or less credit inquiries per year. Any more than that can negatively affect your score.

    7.   Consider Adding an Additional Authorized User: This is an excellent way for parents to help young adults start building credit with little effort. The parent adds their child as an eligible user which starts building a history for the youngster. The more years you have credit, the better your score!

    8.   Consider Joining a Local Credit Union: Many Credit Unions have good initial offers for new member-clients and more liberal rules than banks.

    9.   Keep Old Accounts Open and Deal with Delinquencies: Do NOT close old credit cards that you might not be currently using. One of their formulas is to measure the “average age” of all your cards. The older the better.

    10.Use Credit Monitoring to Track Your Progress: Credit monitoring services are an easy way to see and learn how your credit score changes over time. These services can also protect you from identity theft. The best credit monitoring services notify consumers about changes in their credit and the reasons why.

  • Snail Mail What’s Going On?

    Snail Mail What’s Going On?

    The USPS (United States Post Office) is and has been facing a financial, service, and public relations crisis the past few years, before current Postmaster Louis DeJoy was appointed to run the Postal Service by its Board of Governors last May 2020. 

    It was an odd hire as Mr. DeJoy, unlike other postmasters, had no USPS experience and had been working in the private sector. Shortly after he started the position, he started imposing cost-cutting measures that many mail carriers had blamed for creating backlogs across the country. 

    I remember reading an article last year that he ordered 1 of the 5 Queens Super-Sorter Machines to cease operations, to reduce mail sorting expenses. Each one of these Super-Sorters can sort over 1,000,000 letters per day. As a business owner in Queens, last year I noticed my mail was taking 1-3 days longer than usual to arrive at their destination.

    As per Forbes and the Washington Post, The FBI (Federal Bureau of Investigation) is investigating Postmaster Louis DeJoy in connection with campaign fundraising activity, allegedly made by employees who worked for him when he was in the private sector.

    After last week’s USPS board meeting, it has become clear that the USPS will be changing its operations starting October 1, 2021. Mr. DeJoy presented a 10-year plan that he says “will reduce expenses by $170 million per year” and improve service by “intentionally” slowing down the delivery of first-class mail from 1-3 days to 1-5 days. It is estimated that 30% of first-class regular mail will take between 4-5 days instead of 1-3 days. This seems counter-intuitive and could change how many of us pay our bills and services. They will stop flying first-class mail and instead transport it by truck. 

    There are pluses and minuses to this strategy, trading time for money. In Arizona and parts of the west coast, driverless trucks are being tested.

    The USPS has been hemorrhaging financially for years and certainly can use a system overhaul as they lost $3 billion in the first quarter of 2021; however, I am not convinced that this is the answer. 

    The question is, what does this all mean to business owners and the “Regular Joe’s” across the country? I have been paying my bills (company and personal) through the internet for many years. There are situations where you receive a bill in the mail which is due in under 2 weeks. I do NOT see companies sending you paper bills 2-3 days earlier to offset these intentional slowdowns; hence, we must make the necessary changes to adjust. See my tips below as to how to save money and combat these changes:

    1.   Move Your Internet Bill Pay up 2-3 Days: For those who already pay online, consider having your mortgage and other important time-sensitive checks arrive on the 28th of the previous month instead of the first.

    2.   Consider Setting Up Auto-Bill-Pay Through the Internet: There are many people whether old-school, technology challenged or those concerned about bank account hacking that still write paper checks.  Some just do not trust the system. A definition of insanity can be “doing the same thing over and over and expecting a different result.” 

    3.   Buy Forever Stamps: The current price for a standard weight rectangular envelope is 55 cents. If you buy forever stamps, when the charges are increased in the future to say 70 cents, the USPS will still accept your 55-cent stamp using the “forever” style stamp hence, saving on inflation.

    4.   Plan Further in Advance When Paying Bills by Mail: If you write out or schedule your online bill pay on the 21st of the month, consider moving the date up to the 17th or 18th. 

    5.   Familiarize Yourself with Standard Priority Mail: If you have important mail that must get there in 1-3 business days, consider using USPS Standard Priority Mail which costs $7.95 and includes tracking. Keep in mind, if you wait until the last minute and your mail needs to be received overnight, the USPS “Priority Express” will set you back a hefty $26.25.

    Regardless of how you pay your bills, it is important to understand, as of October 1, 2021, there will be major changes to how your regular snail-mail is sent so it is best to be prepared! 

  • 6 Ways Olympians Can Earn a Living

    6 Ways Olympians Can Earn a Living

    Now that we are well into the summer, many persons (like myself) are looking forward to next week’s Summer Olympics in Tokyo, Japan, torches will be lit on Friday, July 23rd. 

    There are and will be many interesting stories, and new stars will be born.  The USA Olympic trials have already had interesting stories, such as Simone Biles’s quest to be the most medaled athlete of all time.   As per The New York Times, the charismatic track and field sprinter Sha’Carri Richardson (the fastest U.S. woman) has been denied a spot on the 100-meter and 200-meter individual races, (and 100-meter relay team) because she smoked marijuana to cope with the death of her biological mother.  The athletes are tested for marijuana, which Sha’Carri was well aware of, and for which she apologized.  How does smoking pot help you run faster?  I would think it would slow you down!

    Since USA professional athletes have been permitted to compete in the Olympics, there has been a misconception that athletes get rich from competing.  In some countries yes, however, in the USA only 50% of our track & field athletes ranked in the top 10 earns over $18,000 per year.  The following are some ways athletes are getting compensated:

    1. The USOC (United States Olympic Committee): Although the USOC takes in millions annually, they only compensate the athletes (based on 2018 data) $37,500 for gold, $22,500 for silver and $15,000 for bronze.  For US Olympians, gold medals come with a heavy tax bill on $38,100 of income per gold medal!  This covers both the $37,500 received plus the value of the actual gold estimated at about $600.
    2. Corporate Sponsorship: United States corporations spend millions sponsoring “the team” which is why athletes are wearing team logos.  In a typical Olympic Games, there are 15,000 athletes competing in 26 sports for only 1,000 medals, so it is difficult to get sponsorships.  This is different from endorsement deals.  Sponsorships (aside from endorsements) are usually the best way to get paid as training is time-consuming and expensive.
    3. Special Funds: USA swimming pulls in over $100 million per year (from fees from 300,000 members) and gives a $3,000 per month stipend only to swimmers who rank in the top 16.  This is called an APA (Athlete Partnership Agreement).  This money is not “Free” as athletes are required to make public appearances, attend charity events and banquets, etc.
    4. Government:  In some countries (like Cuba for example) the government takes care of Olympic medalists for life.  A client of mine does business in Cuba and gave me some inside information.  If the athlete earns a medal (can be a bronze or silver in addition to gold) in any sport, the government takes care of them financially for life.  However, he told me about a Cuban boxer he met who finished 4th and is now flat broke.
    5. Foundations and Private Funding:  In wrestling for example, LivingTheDreamMedalFund.com raises money that pays out $250,000, $50,000, and $25,000 for gold, silver, and bronze medals, respectively.
    6. Large Corporate Partnerships:  Some large US corporations partner with US athletes allowing them to work part-time while training.

    It is clear in the USA that Olympians are doing it for the “love of the sport!”  There is a bill pending that would eliminate taxation on income received by Olympians.  This would greatly benefit the next Michael Phelps, who holds the record for the most medals won by ANY athlete (28) including 23 gold medals and 13 individual golds.   Simone Biles would be happy as well as she holds the gymnastics record with the most World medals (25) and gold medals (19), hopefully with more to come!

    Times are changing in amateur sports, as there was just an NCAA (National Collegiate Athletic Association) rule change (after a unanimous Supreme Court Ruling) this month that the NCAA must provide compensation to athletes for “education-related” expenses, like paid internships and study abroad.  The lines between sports and money are clearly blurred!  One thing we can agree on is Let’s Go U.S.A.!

  • Inflation, The Silent Killer!

    Inflation, The Silent Killer!

    The Google definition of inflation is: “A general increase in prices and fall in the purchasing value of money over time.  Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages.  A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.”

    An example of inflation is the cost to cross the Marine Parkway-Gil Hodges Memorial Bridge.  When the bridge opened on July 3rd, 1937, the cost to cross the bridge was between 10-15 cents, depending on the type of vehicle.  The current cost is $5.09 by mail and $2.45 by E-Z Pass. 

    The Federal Reserve wants to keep inflation under the 2% benchmark.  Right now, inflation is running around 3% which is in the danger zone.  As per Barron’s, the FOMC (Federal Open Market Committee) released minutes from its June monetary policy meeting.  Fed officials signaled that interest rates would rise sooner and faster than Wall Street expected prior to the meeting, as inflation is rising at its fastest pace since 2008.

    What does this all mean?  This means that if you are on a fixed income, your money will not go as far during inflationary times.  This also means, if you have investments and/or money in the bank that is “netting after-tax” less than 3%, you are losing money (purchasing power).  These are important barometers that few people are paying attention to right now.

    People have been couped up (myself included) during the height of Covid-19 and many persons now have more spendable income.   A combination of inflation, the Suez Canal blockage, and higher demand for travel has skyrocketed travel costs in the past month.  Hotel costs in Miami Beach have risen 50% since the last week in June.  Rental cars are up 110% this year and are 70% higher since the pre-pandemic in 2019.  Oil prices could soon hit $100/barrel, which will also spike gas prices.

    There are options where one can position assets to fight inflation or at least break even, as interest rates are likely to rise over the next 12-18 months.  I have seen banks that are paying anywhere from .10% to .50% interest.

    Every situation is different, depending on one’s risk tolerance.  Some suggestions below can help you offset inflation’s eating away at your purse or wallet:

    1. Shop Your Bank Account rates: Take a look at your most recent bank statement.  The internet makes it much easier to shop interest rates and there are virtual banks (meaning they have no brick-and-mortar locations) that will pay a higher interest rate.
    2. Consider Credit Unions for Emergency Funds: Credit Unions will usually pay a higher interest rate than your typical bank.  For example, the Italo-American credit union is currently paying .75%.
    3. Fixed Interest Annuities vs CDs: Many conservative investors still have large sums sitting in CDs (Certificates of Deposit).  CDs can also stand for Certificates of Disappointment!  CDs are taxable (even if you do NOT withdraw funds).  If you have a CD earning 3% and you are in the 30% tax bracket, you are netting 2.1% after-tax.  A fixed annuity paying 3% is tax deferred (the same 30% tax bracket person is netting a taxable equivalent of 3.9%).  Many people are unaware that Fixed Annuities are protected by New York State up to $500,000, whereas banks are protected by FDIC (Federal Deposit Insurance Corporation) up to $250,000.  Insurance companies will usually offer higher interest rates.
    4. The Stock Market: Obviously, stock market returns can exceed inflation; however, there is the risk of loss that options 1,2,3,5 and 6 do not have. 
    5. Cash-Value Whole Life Insurance: Money that is inside your cash-value life insurance usually sits in the insurance company’s general account.  Many insurance carriers are still paying in the 4% range.
    6. Consider Buying Series I-Savings Bonds: The I stands for “Inflation” bonds.  These bonds may be purchased (up to $10,000) online by opening a Treasury Direct account.  The Treasury Direct account is linked to your personal checking account, and you can transfer up to $10,000 at a time.  Currently, Series I-Savings Bonds are netting 3.54%.  There is no risk of loss with these bonds.

    To summarize, these are important times to huddle with your advisors and make sure your money is working for you instead of being eroded by inflation!

  • Summer Camp = Big Dollars!

    Summer Camp = Big Dollars!

    For many sleepaway and day camps, this past Monday was opening day for the summer of 2021!  After 15 months of Covid-19, many kids will be happy to spend extended time out of the house and away from their parents.  For parents, absence makes the heart grow fonder.

    After we dropped off my nephew at basketball camp last Sunday, I started thinking about how big of a business camp has become.  Last year, many parents decided to skip sending their children to camp, and this year, demand has increased more than supply, especially for the higher-end camps.

    As a kid, you never think about how much your parents are paying for the camp you attend.  For this column, I decided to dig in deep and call my client and friend, Ken Barer.   Ken (KB) is the Athletic Director and part-owner of Camp Mohawk, a high-end day camp in White Plains for children ages 3-13.  Ken played Pro Basketball in France and is the former Men’s Basketball Head Coach at Umass Lowell.

    Early in the conversation, I learned that summer camps have come a long way since I went to (KSA) Kutcher’s Sports Academy many moons ago.  Back then, many of my friends went to Camp Anawana.

    It is clear to me that Camp Mohawk is different from the regular day camp.  Most of their counselors (known as Group Leaders) are teachers, some have been with the camp for as long as 30 years. 

    Each Group Leader gets a tablet, and they post daily pictures and a summary of what their campers accomplished that day.  The parents can download the Camp Mohawk app and can access the pictures as well as message the group leaders.  They can also request play dates for their children and request an introduction to other parents through the app. 

    Camp Mohawk is considered a full-service, general day camp and one of the “Big-5” of high-end camps.  Last year, due to Covid restrictions, they hosted 600 campers.  They are proud to say they had zero positive Covid tests last summer!  This year they will host approximately 800 campers, about 100 below normalcy. They have a staff of over 300 persons.   They have an acceptance process that includes an interview and a guided tour of their sprawling 45-acre campus. 

    Mohawk runs a full 8-week summer session and offers 6-week and 4-week options.  Camp Mohawk charges $10,000 for the full summer 8-week session for the first child.  They offer sibling discounts for the 2nd and 3rd child, and the 4th child is free!  Mohawk had a waiting list for this summer, and they suggest applying now for the summer of 2022.

    The pricing includes transportation, (they have bus pickup spots in Manhattan and Brooklyn) a snack in the morning and in the afternoon, a full lunch, 2 daily swimming sessions (instruction in the morning and free period in the afternoon) towels and daily bathing-suit laundering.  Their day runs from 9a-4p daily.

    In addition to traditional sports like basketball, their campus features:

    1. 8 Heated Pools
    2. A Farm with Animals, such as Alpacas
    3. 2 Wiffleball Stadiums, built like Yankee Stadium and Citi Field
    4. A Mountain Bike Course
    5. Zip Lining
    6. 3 Climbing Walls
    7. A Waterslide
    8. A Hydro Blast Water Balloon Launcher

    Covid-19 protocols include $20,000 of hand sanitizer and sink hand-washing stations across the campus and daily health and temperature checks that are logged online.  For more information go to CampMohawk.com.

    My takeaways are that I would like to wind the clock back to be a 10-year-old and go to Camp Mohawk for the next 3 summers.  Summer camp can be expensive and should be budgeted for.  To the kids who have suffered due to no fault of their own, have a fantastic summer!