The Insurance Doctor

Year: 2021

  • The American Rescue Plan

    The American Rescue Plan

    On Thursday, March 11th, President Joe Biden signed The American Rescue Plan into law almost a year to the day when it was acknowledged that Covid-19 had hit the USA, and it was deadly!

    This is the 3rd stimulus program since the pandemic has begun, and the question on most people’s minds is “Where is My $1,400 Check?” This third round of economic stimulus will be based on the taxpayer’s last processed tax return, from either 2020 or 2019.  That includes anyone that used the IRS’s non-filers tool last year or submitted a special simplified tax return.  The $1,400 is per adult.  The boost to the child tax credit will give eligible parents a total of $3,600 for each child under age 6 and $3,000 for each child under age 18 for 2021.  Until now, the credit was up to only $2,000 per child under age 17.  For large families who qualify, this can be a windfall!

    The US Treasury claims that almost 85% of Americans will qualify, based on income:

    1. $1,400 for a Single Filer: Individuals earning up to $75,000 AGI (adjusted gross income) would receive $1,400, which would be reduced by 20% for every $1,000 earned between $75,000-$80,000.  In other words, someone who earned $76,000 receives $1,120 ($1400-20% or $280) and one earning $77,000 receives $840 etc.
    2. $2,800 for a Married Couple Filing Jointly: Couples earning up to $150,000 would receive $1400 each but would lose 10% for every $1,000 up to $160,000.  Couples (filing jointly) would be ineligible if earning over $160,000. 
    3. $1,400 for Heads of Household: A head of household earning up to $112,500 would qualify for the full amount.

    There are different opinions on the new $1.9 Trillion American Rescue Plan as no Republicans voted “yes” in either The Senate or House of Representatives.  To give you a frame of reference, our current national debt is roughly $22 Trillion, meaning we are printing up to 9% of our national debt in new paper.  In 2020, we increased the money supply by 24% with the two 2020 stimulus payment packages. 

    This recovery package is designed for our country to bounce back with money set aside for the child tax credit, small businesses, restaurants, closed venues, extended unemployment, and state and local governments, to name a few. Only 9% of the $1.9T is going directly to Covid-19 relief. 

    HERE ARE MY 4 TIPS ON HOW TO MONITOR RECEIVING YOUR PAYMENT AND IN WHAT FASHION IT WILL BE RECEIVED:

    1. Complete Your 2020 Tax Return As SOON As Possible: If you earned more money in 2019 than 2020, the $1,400 check qualification is based on your 2019 return unless you get your 2020 tax return processed as soon as possible.
    2. Consult Your CPA or Enrolled Agent: If you did not receive the last stimulus check and should have qualified, you can pick it up as a discount on your 2020 tax return.
    3. Get Familiar with the IRS Website www.IRS.gov:  The IRS has updated their website with their “GET MY PAYMENT TOOL.”  You can go to www.IRS.gov/coronavirus/get-my-payment.  The “get my payment” button requires you to input your full social security number/tax ID, date of birth, street address and zip code.  This tool will be updated only once/day, usually overnight.
    4. Be Patient and on the Lookout: For those that received the first 2 stimulus checks and did NOT receive the checks by direct deposit, The Treasury will be mailing you a check or debit card.  Both Chase Bank and Wells Fargo are already having delays.  These types of payments are sent out in groups called “Tranches.”  If your address has changed, the easiest way to update it is to file your 2020 tax return with your new address.  Stimulus payments will be sent out through the mail as a check, debit card or via direct deposit, if you are already set up.

    In the coming weeks, more “Tranches” (batches) of payments will be sent via direct deposit, or through the mail as a check or debit card.  Some people have cut their stimulus debit cards thinking it was a sales promotion.

    Stay Positive, Test Negative and Keep the Faith!

  • The Game is Changing!

    The Game is Changing!

    The media coverage of the GameStop Corp (GME) stock trading fiasco grabbed the attention of Wall Street, the public, regulators, and politicians alike!  GameStop is a video game retailer whose stores can be seen in shopping and strip malls.  What happened to GME may morph into new investor strategies, a new way of uniting litigants, new regulations and increased executive risks for companies and their leaders!

    For those that missed it, some are calling it “Wall Street vs Main Street!”  There are a dozen pending lawsuits filed against Robinhood Markets, Inc., an online brokerage firm, by investors (i.e. customers) who were denied the ability to trade certain stocks.  Individual investors teamed up on Robinhood and other investment websites to push up the GameStop stock price to negatively affect hedge funds who were betting on the stock price to go down i.e. “shorting” the stock!

    Small business owners (and their employees) form the backbone of this country.  The pandemic has been tough on small businesses and now there are a host of other risks that small businesses should be concerned about and strongly consider transferring these risks to an insurance company.

    Recently a client of mine (he is retired and the former CEO of a major company that makes toothpaste and other household goods) told me that he turned down a lucrative offer of $250,000/year to sit on the board of another large and well-known firm.  He said, “There is no way I can take that risk for a company that does not have Board of Directors’ insurance” (AKA Directors) and Officers liability insurance.  This was an eye opener for me as I was just asked to sit on the board of a local Chamber of Commerce. 

    Let’s face it, times are tough, and we are in a litigious society where people are suing companies and individuals for a variety of reasons.  Whether or not the allegations are true, defending lawsuits take time and money.  Your business reputation can take a hit, win, or lose. 

    The bottom line is, a Board Member can be personally sued for a company’s mistake if that company does NOT have an employee handbook or Directors and Officers (D&O) insurance! 

    I reached out to our D&O expert, Ken Jones, from Coastal Risk Management on this matter, and he said, “This is happening more and more.  The Cyber Security and D&O markets are very tough right now as there have been a tremendous amount of losses, and the payouts are nuclear in size!  Expect the markets to tighten.”

    I took it a step further and looked at the Chubb Insurance company’s current D&O application for companies with up to 250 employees.  Their Directors and Officers policy lists the following coverage options:

    The application asks specifically, does the applicant (business owner) have written procedures in place regarding:

    What does this all mean to me, you might be asking?

    As an employee, you should be asking for either an employee hardcopy handbook or PDF file to review your rights, coverages, protections, and company procedures in place “just in case” something happens.

    As a business owner whether small or large, you should be checking to see if you have policies such as “errors and omissions,” “directors and officers,” and cyber security policies.  For companies with less than 25 employees, these policies can be inexpensive.  The real question is, can you afford NOT to have policies for these risks in place?

    To get a quote or policy review from our expert, reply “quote D&O” to Rob@InsuranceDoctor.us and we will get right on it!

    Be Positive, Test Negative and KEEP THE FAITH!

  • Protect YOUR Castle!

    Protect YOUR Castle!

    Protecting The House!

    There is a saying, “Water is Life!”  We cannot survive without water after a few days.  Look at the situation in Texas right now.  Too much water leads to death and destruction.  Rockaway learned that from Super Storm Sandy and to a lesser extent Hurricane Irene.

    On August 29th, 2005, Hurricane Katrina ravaged the gulf coast near New Orleans, in Louisiana, Mississippi, and Alabama.  There were 1836 fatalities as 175 mile-per-hour winds brought widespread destruction, flooding and left millions homeless.   The damage was estimated at $125 Billion, which has made it the costliest storm in U.S. History!  There were many complaints about how the Federal Emergency Management Agency (FEMA) responded.

    Hurricanes Katrina, Harvey, and Irma wiped out FEMA’s coffers!  In 2017, Congress bailed out the NFIP (National Flood Insurance Program) with $16 Billion in debt relief!  

    Scientists say these natural disasters and flooding will get worse because of:

    1. Climate Change
    2. Rising Sea Levels
    3. Rapid Development in Coastal Regions

    Part of the current problem is that the premiums are determined by the amount of insurance purchased for the home, instead of the replacement cost. An example best clarifies this.  The owner of a $2.5 million mansion with the same risk as a $250,000 home pays the same premium even though repairing the mansion would cost significantly more.  In other words, expensive homes are paying too little and inexpensive homes are paying too much.  There are also disparities at the edges of the flood map zones. 

    According to USA Today, on October 1st, 2021, thousands of homeowners in the riskiest of locations across America will be facing massive rate hikes when The NFIP (National Flood Insurance Program) releases its “Risk Rating 2.0” program!  For the first time, individual premiums will be tied to each property’s actual flood risk.  This will level the playing surface so that properties with the biggest risk will pay the most.

    The National Flood Insurance Program, implemented in 1968, provides approximately 95% of the country’s flood insurance, which includes about 5.1 million policies. The old system fails to accurately assess the “true risk” of flooding.  Because of this, NFIP only takes in approximately $4.6 billion in annual revenue.  While this sounds like a huge number, they provide over $1.3 trillion in coverage, which leaves them with excessive exposure.  The new model should rectify some of this.

    Currently, the National Flood Insurance Program Policy maxes out payouts at $250,000 (called dwelling coverage) for structural damage regardless of the value of the home.  The limit on contents is $100,000, meaning the maximum you can collect is $350,000 regardless of the replacement value of your house and contents. Nobody knows this better than I since we lost our Belle Harbor beach house due to Super Storm Sandy!  We had a positive claims experience with FEMA by following these 3 crucial claim tips:

    My Top 3 Claim Tips Are:

    1. Call FEMA and Ask for a Copy of the Policy: When most people call, they are upset and not thinking clearly.  The insurance companies are sneaky and will start typing up the claim on the spot.
    2. Regurgitate Policy Wording on the Claim Form: This is why it is critical to have a copy of the policy.  By using their coverage language verbatim on the claim form, they cannot reject it!  That was the key for us to maximize our family’s claim!
    3. Be Specific Listing Your Contents: It is not easy to remember each lost item in your home when you are emotionally involved.  We used the website www.KnowYourStuff.org. These types of sites give you trigger lists of what are typically in each room, such as your kitchen, living room, dining room etc.

    FEMA’s existing flood zones will not be a factor in rates so those homes outside the flood zones could see a rate reduction.  The new policies will calculate premiums based on each home’s replacement value and specific features.  The claim triggers will also include a broader range of flooding events, such as tsunamis, heavy rainfall, and coastal erosion. 

    You may be asking yourself, what does this all mean? 

    1. The most expensive coastal homes will have the largest price increases.
    2. New policy buyers after 10/1/2021 will bear the brunt of the premium increases.
    3. If you are thinking about buying a flood policy, I suggest purchasing BEFORE October 1st to lock in your premium because:
    4. Expected rate increases for existing policyholders after October 1st will gradually increase with an 18% per year cap.
    5. High-risk states that will be MOST affected are Florida, South Carolina, and New Jersey.  Broward County, Fla. is the highest flood risk area in the country!

    For those of you who want more information or quotes, feel free to reach out to me at Rob@InsuranceDoctor.us  Be Positive, Test Negative, and Keep the Faith!

  • Marijuana, the Lesser of Two Evils?

    Marijuana, the Lesser of Two Evils?

    As of the writing of this week’s column, New Jersey Governor Phil Murphy was granted an extension to negotiate with lawmakers on two bills to legalize and decriminalize marijuana in New Jersey.  This is after the measures passed both houses of Legislature on 12/17/2020. 

    “Voters overwhelmingly support the legalization of cannabis and we are taking every step necessary to assure legalization and decriminalization become law,” said Assembly Speaker, Craig Coughlin!

    Looking at this issue financially, it’s a no-brainer.  In 16 states, marijuana is fully legalized for both recreational and medicinal purposes.  13 other states (including New York) have decriminalized and legalized medicinal marijuana use.  There are now only 6 states where marijuana is fully illegal.  Legalizing the drug would be a tax revenue boon for a broke New York State, which Governor Andrew Cuomo has already admitted. 

    I have concerns with this as there will be ripple effects far and wide from legalizing recreational pot in New York State.  Medicinal marijuana has been legal in New York State since 2014.  My first concern is underage children and this easy access to pot potentially getting kids hooked on the drug.  Other issues are regulation, law enforcement and DUI (driving under the influence) of drugs.  People are preoccupied enough on the roads with Covid-19.  It stands to reason if pot is fully legalized then New York State would consider releasing prisoners with non-violent, marijuana possession only records.  New York State spends over $70,000 per year per inmate, the most in the country.

    Conditions we know medicinal marijuana can help:

    1. Chronic Pain:  According to the CDC, (Center for Disease Control) 20.4% of Americans are suffering chronic pain issues.  A developing field in medicine is the application of MM (medical marijuana) to alleviate chronic pain as al alternative to opiates.  This field has gained popularity due to the lack of addictive qualities of MM compared to opiates.
    2. Lack of Appetite: Conditions like cancer can sap a person appetite which is dangerous as the body needs the proper food and nutrients daily.
    3. IBS (Irritable Bowel Syndrome): Medicinal Marijuana eases nausea and pain which makes it a viable option to treat IBS.
    4. Lou Gehrig’s Disease AKA ALS: ALS (Amyotrophic Lateral Sclerosis) is a debilitating neuro degenerative disease that progresses in patients over time.  It affects neuro cells in the brain and spinal cord slowly reducing neuro and motor functions over time.  MM has been proven to slow down the degeneration. 
    5. PTSD AKA (Post Traumatic Stress Syndrome):  PTSD is running rampant in America, especially over the last year during Covid.  Medicinal Marijuana (CBD AKA Cannabidiol) seems to breakdown a chemical in the brain that affects pain, mood, and anxiety.

    There are a variety of conditions or diseases one can be suffering from to obtain a Medicinal Marijuana ID Card which can differ slightly by state.  In general, see symptoms and the process below:

    1. Conditions Most States Include Chronic pain, cancer, HIV/Aids, PTSD, IBS, neuropathy, epilepsy, ALS, spinal cord injury, Parkinson’s, and Hepatitis C to name a few.
    2. Doctor Sign Off Form:  One needs to find a doctor to sign off on the medical marijuana form.  This can be difficult as some doctors are hesitant to prescribe it!  Some reasons are moral, and others are a lack of belief insufficient scientific evidence proving its effectiveness.
    3. Proof of Residence: After proving one is suffering from a condition on their state’s acceptable list by getting a physician sign off, one shows proof of residence like a driver’s license or passport.
    4. Interview with Physician: In areas where MM is legal, patients are approved through a MM recommendation and evaluation conducted by a physician with a medical cannabis license.  Once approved, a patient can legally purchase, possess, and in certain states cultivate their own plants.  For more information go to www.MarijuanaDoctors.com.

    Be Positive, Test Negative and Keep the Faith!!

  • Disability Income Insurance. Can you afford NOT to have it?

    Disability Income Insurance. Can you afford NOT to have it?

    Imagine that you own a “SPECIAL MACHINE” that you keep in your basement.  This machine is programmed and able to PRINT MONEY!  How would you treat it?  More than likely, you would baby it and keep it well-oiled, perhaps put a cover on it to prevent it from getting dusty.  You would do everything in your power to PROTECT AND INSURE IT! 

    You would call the insurance company (or your agent/broker) to get a quote for “CASH MACHINE INSURANCE” and they said it would cost between 2%-4% of the amount of money it prints out per year.  This would not be so bad, right?   Think of YOURSELF as the CASH MACHINE, and the cost to replace a portion of your annual income is that 2%-4% insurance premium. 

    The purpose of disability income insurance is to replace the income when one is left unable to work.  Most working Americans need their income to survive!  Because wage earners almost always depend on an income stream, protecting this income is CRITICAL towards financial security!  Yet, well over 100 million working Americans have no private disability income insurance. 

    Many people have a misconception that accidents are the #1 cause of disabilities.  This is incorrect, as the number 1 CAUSE for disability is DEPRESSION/MENTAL NERVOUS.   These cases are now way up due to Covid-19.  Back pain is the number 2 cause.

                There are 2 types of disability income insurance:

    1. Group Disability Income Insurance: Group disability income insurance is usually offered by an employer at no cost or for a nominal fee/premium taken out of your paycheck.
    2. Individual Disability Insurance: Individual disability income insurance (DI) is usually purchased from an agent or broker, somewhat akin to life insurance. 

    Disability income (DI) is a unique type of insurance.  It is CRUCIAL insurance that protects against the loss of income when the policyholder is unable to work for months or years following an injury or illness.

    This is one area of insurance where “broker error” and “CPA error” can really hurt you.  These are THE BIGGEST MISTAKES your broker and/or CPA can make:

    1. Selling Based on Price: This is a common mistake agents and brokers make to “just make a sale.”  There are 5 or 6 companies in New York State that offer strong plans; however, there are differences between policies that must be pointed out.
    2. Using the Disability Insurance Annual Premium to Take a Tax Deduction:  Many accountants and agents make mistakes by getting greedy and suggesting taking the small tax deduction which can have enormous lifetime repercussions.  If DI policies are paid with “after-tax” dollars, then ALL the monthly benefits are received INCOME TAX-FREE!  If disability policies are paid with “pre-tax premiums,” then ALL the benefits received are 100% taxable!  For example, a 40-year- old that gets permanently disabled would receive 25 years of monthly income benefit to age 65 that would ALL be taxable because of “bad advice” from their insurance broker and/or CPA. 
    3. Incorrectly Completing the Disability Insurance Application:  Completing these disability insurance applications can be an arduous process.  Many insurance agents cut corners and rush this critical part of the process. 
    4. NOT Selling a Disability Policy with “OWN OCCUPATION” as the Definition of Disability:  It irks me to review the policies that others have sold without this critical definition.  See the example below.

    To best explain errors 3 and 4, an example should make it clear.  If a right-handed surgeon gets his or her right hand mangled in a car accident and they have “OWN OCCUPATION” as their definition of disability, they can go on a claim and (while getting paid on a claim) supervise others.  The “OTHER DEFINITION” would be something akin to “they cannot work in ANY AREA of their chosen field.”  In this scenario, the surgeon would NOT be on claim and forced to take a MAJOR PAY CUT!  The problem with group disability is that very few of those group policies have the “OWN OCCUPATION DEFINITION OF DISABILITY,” which can make the difference between going on claim or being ineligible.  If you own individual disability income insurance, I suggest going to your policy’s declaration page 1 and reading your definition of disability! 

    Back in 2009 my friend, John, called me and asked for help.  (John and his Mother were existing life insurance clients).  John had applied and been rated double the standard premium rate for disability insurance and asked for my help after apologizing that he did not know I handle this type of insurance.  He is a physical therapist who was employed at the Rikers Island outpatient facility and he had a side gig supervising exercise programs for seniors at their homes after their hospital discharge.  His previous broker did NOT ask him the proper questions and incorrectly completed the DI application listing 100% of his time spent at Rikers.  John earns about $100,000 annually, was 38 at the time, and in excellent health as a non-smoker.   

    After further discussions, I discovered John was splitting his hours equally between the 2 jobs.   Thus, I crafted his application showing the split to a different insurance company.  In conclusion, I was able to reduce his premium in half to $250/month for a $5500/month income benefit to age 65.  John called me 3 years ago as he was unfortunately beaten up at Rikers Island in an unprovoked vicious attack and is now on permanent disability collecting TAX-FREE monthly checks for another 16 years until he turns 65!

    For individuals and families, this is must-have insurance!  A good profile candidate is age 25-50 and earning a minimum of $75,000/year.  White-collar jobs are usually less expensive than blue-collar due to injury risk. 

    For a FREE policy review or to discuss disability income insurance quotes for you or your business email “contact me re disability” to Rob@InsuranceDoctor.us.  Stay Safe and Keep the Faith!

  • Bidenomics- Part 2

    Bidenomics- Part 2

    Since Joe Biden was inaugurated on the 20th of January, it is a good time to address some changes he might make based on his platform. The question is, what does “BIDENOMICS” mean to your wallet or purse?

    Over the years, I have found that politicians’ actions are often incongruent with their words. Here are some of his proposed tax changes:

    1.   Those Making Under $400,000 Will Be Unaffected: His proposal is to leave those earners alone and add a “Social Security Increase Tax” of 6.2% on ALL income earned over $400,000. Social security is in jeopardy as baby boomers (10,000 people turn 65 every day) born from 1946-1964, are withdrawing social security benefits faster than working Americans are contributing; hence, the affluent would be bridging the social security gap. 

    2.   Income Earners Over $1,000,000 Would Incur Higher Capital Gains Taxes: Americans with over $1 million in total income would see income received from dividends, as well as capital gains, taxed like their wages. In this scenario, if you had a stock or business sale, your capital gains tax doubles from 20% to roughly 40%. This would change many business and investment decisions. You should consider making those sales now, as usually these changes are “Grandfathered.”

    3.   Corporate Tax Rates Would Be Increased: His proposal would increase corporate tax rates from 21% to 28%, a 33% increase. This is a big change that could have corporations reevaluate moving or setting up subsidiaries overseas. 

    In essence, his proposals would be taxing the rich and protecting the middle class. Based on our current national and state budget deficits, I do see the middle class paying more taxes eventually.

    President Biden has vastly different viewpoints on many issues than former President Trump, especially on energy, climate change, health care, and infrastructure. The “Green New Deal” was a centerpiece in Biden’s campaign.

    Some areas where President Biden said he would concentrate on include:

    –      Traditional Infrastructure

    –      Digital Infrastructure

    –      Electric Cars

    –      Cannabis

    –      Telemedicine

    –      Green and Clean Energy

    There has been much unhappiness and angst over the fact that Congress had taken so long to pass an additional stimulus package, since the one that ended on July 31, 2020.

    Some highlights of Biden’s $1.9 Trillion stimulus relief plan called The American Rescue Plan include:

    –      Extended Unemployment Benefits ($120B)

    Jobless workers will get $300-$400/week through September 2021.

    –      Schools and Colleges ($170B)

    –      The Federal minimum wage increases to $15/hour.

    –      COVID-19 ($100B) includes $70B to expand testing and immunization centers and $30B for PPE.

    –      A 2nd Stimulus Check ($166B)

    Individuals making less than $75,000/year receive $600, couples making up to $150,000/year receive their target $1,400 and $600/child.

    –      State and Local Governments (350B)

    –      Small Business Boost ($325B) Including

    Triple P (Paycheck Protection Program) Funding ($284B) plus $20B for businesses in low-income communities, and $15B for struggling live venues, movie theatres and museums to name a few venues.

    What we do NOT know:

    1.   How much money the government will continue to print?

    2.   When or if the Covid-19 virus will end?

    3.   When will companies bring people back to work or IF they will bring employees back?

     What we DO know:

    1.   Income taxes will go up on the wealthy!

    2.   Estate taxes will go up on the wealthy!

    Biden’s Taxes on Wealthy Estates: example of a $100M estate (#’s are in Millions)

    Value of the Original Asset  ($100M)                                      $100

    Cap gains taxed as ordinary income 39.6% + 3.8% NIIT*=  43.4%

    Capital gains tax owed:                                                              $43.40

    Value of the Remaining Estate:                                               $56.60

    Biden’s estate tax exemption ($3.5 million)                             $3.50

    Taxable estate                                                                               $53.10

    Biden’s estate tax rate (45%)                                                        45%

    Taxes owed on the estate                                 $43.40+         $23.90

    Total taxes paid on a $100 million asset                   =          $67.30

    Effective tax rate                                                                          67.3%

    *Note: NIIT (Net Investment Income Tax) is an Obama care tax.

    This may or may not happen; however, if everything Biden proposed becomes law, there will be a renewed interest in ILIT (Irrevocable Life Insurance Trust) owned life insurance to leverage off life insurance companies (instead of paying dollar for dollar) to pay these estate taxes (due 9 months from death in cash) with pennies on the dollar, which my firm we can assist with.

    Feel Free to reach out to Robert Intelisano CLU, CSA, LUTCF who is a CSA (Certified Senior Advisor) and owner of Intelisano & Associates, Inc. since 1999 at Rob@InsuranceDoctor.us.

  • Bidenomics: What it means for you

    Bidenomics: What it means for you

    Since Joe Biden was inaugurated on the 20th of January, it is a good time to address some changes he might make based on his platform.  The question is, what does “BIDENOMICS” mean to your wallet or purse?

                Over the years, I have found that politicians’ actions are often incongruent to their words.  Here are some of his proposed changes:

    1. Those Making Under $400,000 Will Be Unaffected: His proposal is to leave those earners alone and add a “Social Security Increase Tax” of 6.2% on ALL income earned over $400,000.  Social security is in jeopardy as baby boomers (10,000 people turn 65 every day) born from 1946-1964, are withdrawing social security benefits faster than working Americans are contributing; hence, the affluent would be bridging the social security gap. 
    2. Income Earners Over $1,000,000 Would Incur Higher Capital Gains Taxes: Americans with over $1 million in total income would see income received from dividends, as well as capital gains, taxed like their wages.  In this scenario, if you had a stock or business sale, your capital gains tax doubles from 20% to roughly 40%.  This would change many business and investment decisions.  You should consider making those sales now, as usually these changes are “Grandfathered.”
    3. Corporate Tax Rates Would Be Increased:  His proposal would increase corporate tax rates from 21% to 28%, a 33% increase.  This is a big change that could have corporations reevaluate moving or setting up subsidiaries overseas. 

    In essence, his proposals would be taxing the rich and protecting the middle class.  Based on our current national and state budget deficits, I do see the middle class paying more taxes eventually.

    President Biden has vastly different viewpoints on many issues than former President Trump, especially on energy, climate change, health care and infrastructure.  The “Green New Deal” was a centerpiece in Biden’s campaign.

    Some areas where President Biden said he would concentrate on include:

    • Traditional Infrastructure
    • Digital Infrastructure
    • Electric Cars
    • Cannabis
    • Telemedicine
    • Green and Clean Energy

    There has been much unhappiness and angst over the fact that Congress had taken so long to pass an additional stimulus package, since the one that ended on July 31, 2020.

    Some highlights of Biden’s $1.9 Trillion stimulus relief plan called The American Rescue Plan include:

    • Extended Unemployment Benefits ($120B)

    Jobless workers will get $300-$400/week through September 2021.

    • Schools and Colleges ($170B)
    • The Federal minimum wage increases to $15/hour.
    • Covid-19 ($100B) includes $70B to expand testing and immunization centers and $30B for PPE.
    • A 2nd Stimulus Check ($166B)

    Individuals making less than $75,000/year receive $600, couples making up to $150,000/year receive his target $1400 and $600/child.

    • State and Local Governments (350B)
    • Small Business Boost ($325B) Including

    Triple-P (Paycheck Protection Program) Funding ($284B) plus $20B for businesses in low-income communities, and $15B for struggling live venues, movie theatres, and museums to name a few venues.

    What we do NOT know:

    1. How much money the government will continue to print?
    2. When or if the COVID-19 virus will end?
    3. When will companies bring people back to work or IF they will bring employees back?

    What we DO know:

    1. Income taxes will go up on the wealthy!
    2. Estate taxes will go up on the wealthy!

    Biden’s Taxes on Wealthy Estates: example of a $100M estate (#’s are in Millions)

    Value of the Original Asset  ($100M)                                       $100

    Cap gains taxed as ordinary income 39.6% + 3.8% NIIT*=   43.4%

    Capital gains tax owed:                                                               $43.40

    Value of the Remaining Estate:                                                            $56.60

    Biden’s estate tax exemption ($3.5 million)                              $3.50

    Taxable estate                                                                                $53.10

    Biden’s estate tax rate (45%)                                                          45%

    Taxes owed on the estate                                  $43.40+         $23.90

    Total taxes paid on a $100 million asset                    =          $67.30

    Effective tax rate                                                                           67.3%

    *Note: NIIT (Net Investment Income Tax) is an Obama care tax.

                This may or may not happen; however, if everything proposed becomes law, there will be a renewed interest in ILIT (Irrevocable Life Insurance Trust) owned life insurance to leverage off life insurance companies (instead of paying dollar for dollar) to pay these taxes with pennies on the dollar, which my firm we can assist with.

    Feel Free to reach out to Robert Intelisano CLU, CSA, LUTCF who is a CSA (Certified Senior Advisor) and who owns an independent Forest Hills based insurance agency since 1999 at Rob@InsuranceDoctor.us.

  • Applying For The Triple PPP Made EASY!

    Applying For The Triple PPP Made EASY!

    Thinking back to late March 2020, Covid-19 news had just broken 2 weeks earlier, and President Trump had just signed The CARES ACT (Coronavirus Aid, Relief, and Economic Security)!  The Triple PPP (Paycheck Protection Program) was the centerpiece of The CARES Act.  I was sitting on the couch thinking about how many businesses will be going under, and concerned about my clients and friends who own businesses?  What about their employees?

    I decided The Triple PPP was going to be the most important program of its kind, perhaps in history!  I needed to understand, master, and coach my clients as to how to obtain this critical money from the government.  This program could save my clients, their employees’ jobs, as well as protecting their benefits.  With The Triple PPP, EVERYBODY WINS!

    There are numerous problems with The Triple PPP!  Detailed SBA (Small Business Association) loan data shows what many had suspected all along; the money was shared unevenly, with the biggest sums not going to those most in need.  For example, Tom Brady’s company TB12 received more than $960,000.  He was then seen on a new $2m yacht!  More than 600 companies have already received the maximum $10,000,000 in PPP loans. 

    The Tom Bradys of the world (yes, I am a Jets fan) have well-paid family-office type advisors with the contacts and the wherewithal to figure out how to “extract” large sums of possibly FREE PPP loan money from the government.  This might never happen again in history!

    Where does that leave the regular Joe, small business owners and non-profits?  Where does that leave concerned people that own S Corporations, Sole Props, C Corporations, LLC’s, Partnerships and Non-Profits?

    Answer: It leaves the small business owners left out!  Small business is the backbone of The United States!

    Without the proper Bank Contacts, CPAs, Financial Advisors, Insurance Advisors, you are on your own.  It is stressful trying to navigate these waters on your own, especially if you are not a finance or “numbers” type of analytical person.  Many advisors have not done the proper research and are not equipped to be giving PPP advice at this time.  Where do you go? 

    Wouldn’t it be great if there was someone you know who has access to a FREE VIP service that can:

     A. Help with an easy online enrollment.

     B. Review the application.

     C. Get loans approved.

     D. Trouble shoot when there are errors? 

    Keep reading!

    When I applied for my S-Corp to get a loan, I found the following roadblocks:

    1. Bankers were not well-versed on the process. 
    2. Websites were confusing and unclear. 
    3. Few CPA’s (Certified Public Accountants) or lawyers had a good handle on it.  It was hard to know whom to trust. 
    4. The bigger banks were not interested in 1% loans, many of which would be forgiven at the end.  Why should a big bank care about a 1% loan and dealing with Uncle Sam when they can get 14% interest on our credit card balances? 

    I applied to multiple banks and found the smaller banks were much more in tuned with clients and the process.  There was a small bank that did 106,000 loans and outdid the “big banks” with much better service.  Cross River Bank (google-Cross River Bank New York Times Article) ranked 4th in total loans approved behind Bank of America, JP Morgan/Chase and Wells Fargo. 

    I spoke twice as a Triple PPP panel expert for the Queens Chamber of Commerce webinar last October and December.  I received a call after my October Zoom from a man who attended named Neil, who said he enjoyed the presentation, Q&A (question and answer session) and perhaps we could work together.

    What I did not know is that Neil (a CPA by trade) was in the lending business and owned a company called Asset Enhancement Solutions (AES), LLC.  Neil had partnered with small banks and set up an easy system for business owners to apply on-line for The Triple PPP, while his staff had the banking relationship to be able to look at the file, make corrections as needed and get them approved.  Neil and his A-TEAM at Asset Enhancement Solutions had completed 800 PPP (totaling over $100M received) applications the last round.  They also helped non-profits, small and large companys and Jake’s 58 casino get their loans approved.

    The great news is that my firm has teamed up with the A-Team from AssetEnhancement Solutions LLC and Cross River Bank to enable my clients and you, The Wave and Beachcomber readers, to Apply for FREE seamlessly online.  You can pre-register NOW and get into the queue while their coffers are full!  The service is FREE because AES, Neil’s firm is an agent for the bank and they get compensated by the bank which is why there is no charge to you.

    What does this mean for you as a business owner?

    1. An easy portal with Cross River Bank to input and upload your documents.
    2. A team of 16 will monitor your account and help it get approved.
    3. VIP level service that can/will correct mistakes.
    4. Loans that were not approved can be reviewed, corrected, and get approved.
    5. AES communicates with the lenders and advocates on your behalf.

    If you own a business and already received a PPP loan, the rules have changed for “2nd draws.”  If this is the first loan you are applying, it will be easier this round.  For those interested in this FREE PPP Service, email “SEND ME THE PPP” to me at Rob@InsuranceDoctor.us which will start the process.

    Stay Positive, Test Negative and Keep The Faith!

  • 2021 Setting Financial Goals

    2021 Setting Financial Goals

    Wishing a “good riddance” to 2020 and welcome to 2021!  Although 2020 was a lost year for many, the Covid-19 Pandemic has re-written spending patterns that should be analyzed and discussed.  There is much to be learned from last year, some of which can benefit us going forward!

    Follow these 6 TIPS to improve your finances in 2021 and beyond!

    1. Evaluate Your 2020 Spending and Budget: This is the most important matter to take control of.  The best way to address this is to go online and download (or you can order them by phone from your (CC) credit card company) a report of your 2021 spending by category.  I just did this and compared it to 2019.  Spending patterns have changed, and we can control them more easily because “spending less” is now a habit.  Because I am not visiting many clients’ businesses, my auto and transportation expenses have gone way down, as have dry cleaning, restaurants, and travel.  These decreases can be made permanent!
    2. Cancel Unneeded Subscriptions:  While you are evaluating your expenditures, take time to look at various subscriptions, memberships, and other accounts, especially those on auto-renew on your credit card.  Consider cutting services you might not be using.  For example, I non-renewed some magazines and let my gym membership expire.  Often, these companies will lower their fees or offer introductory rates to get you back as a new customer!
    3. Plan for a Delayed Tax Refund: Many Americans have not built up a proper 6 month’s income emergency fund.  Others have lost their jobs and were forced to spend that emergency money as it was/is an emergency now!  With the government in a transition, the 2020 tax returns might not arrive on time like they have in the past.
    4. Invest in Yourself: Now is a good time to take on-line courses, read self-improvement books and work on home improvements to name a few.  These things can make you more marketable, increase your earning power and increase the value of your home.  I also suggest taking the 6-hour on-line New York State defensive driver course which saves you money on your auto insurance for 3 years!
    5. Review All of Your Insurance Spending: There has never been a better time to review your total insurance portfolio spending.  People are driving less often, so look at shopping your auto insurance and perhaps adjusting your coverages accordingly.  Life insurance has changed over the past 3 years!  If your life insurance policy is over 3 years old, a review is necessary and important!  There are currently 2 term life insurance companies in New York State that offer their “chronic illness riders” for free, on term insurance.  The chronic illness riders work like a long-term care insurance policy by providing a pool of money to use if long-term care is needed.  You can withdraw a portion of your death benefit, while living, to pay for your long-term care needs.  This is an amazing rider that very few insurance brokers are talking about.  Outside of New York State, (in NJ, CT, PA, and Fla to name a few) those policy riders also include “chronic injury” which can pay off when in an accident.  These new term insurance policies offer fantastic value for the premiums paid.
    6. Use Your Calendar and Family or Friends for Support: Write your goals down and communicate them to others (speak them into existence)!  The best thing to do is to start with short-term goals.  Try the month of January, for example.  Covid-19 has in many cases helped us spend less money, so let’s keep this up as things normalize.  Consider getting support around you and have someone else write into their calendar their own goals and schedule a weekly status phone call.  Try teaming up with a coach or friend/family member to hold you accountable for at least the first 21 days until these are habits.

    The takeaways here are that Covid-19 in some ways, have forced us to spend less money in many areas.  This is a great time to analyze this and keep these better habits going forward, while things start to improve.   To be added to our monthly e-newsletter list, email ADD ME to Rob@InsuranceDoctor.us and please include your full name.

    BE POSITIVE, TEST NEGATIVE, KEEP THE FAITH!

  • Lucky-7 Tips 2 Save $$$ in 2021!

    Lucky-7 Tips 2 Save $$$ in 2021!

    By the time you read this, we will thankfully have waived “good riddance” to 2020! Wishing you and your family a Happy, Healthy, and Prosperous 2021!

    Covid-19 has created many behavioral shifts in the year 2020! Some behavioral shifts are temporary, and some could be here to stay. One of those shifts has been toward internet shopping for holidays, tangible gifts, and sometimes large purchases we previously bought at the “brick and mortar” store. Instead of touching, feeling, and trying on, we now click the mouse a few times and “voila,” the item appears. If you are an “Amazon Prime Member,” your purchase is received within 48-72 hours and with FREE Shipping.

    2021 could be another difficult year, especially with the uncertainty in the job market. There will always be the need to shop for gifts, seasonal purchases, and necessary items, so heeding these LUCKY 7 TIPS can go a long way to controlling your 2021 expenses:

    1.   Consider Buying Off-Season:  A little bit of internet price studying and patience can go a long way to spot pricing trends. New Year’s Sales are underway and many summer items are now on sale. 

    2.   Consider Setting Up a Gift Closet or Large Draw: A client shared this with me as she turned a little-used hallway closet into a gift closet, which saved her money many times throughout the years. She buys offseason gifts only on deep discount then decides later who gets what.

    3.   Camel, Camel, Camel: Amazon.com discounts by category.  Camel, Camel, Camel (CCC) is an Amazon price tracker. Find the product you are interested in buying, then cut and paste the URL into CCC to look up it’s price history and/or create a “watch-list” for that item.

    4.   PriceBlink: PriceBlink lets you know when the item you are viewing can be bought for a lower price elsewhere. After Amazon, online stores such as Walmart, Target and Ebay account for the majority of internet sales. PriceBlink searches over 11,000 merchants for lower prices, coupons, and FREE shipping.  Give it a try!

    5.   Download the Rakuten FREE App or Browser Extension: Rakuten (formerly EBATES) works like all cashback sites (like IBOTTA) by sharing the commission that they receive from retailers. You are paid every 3 months for purchases made during the spending-period, and you can get cashback bonuses for joining and shopping.

    6.   Consider Using Poshmark as an Alternative to Ebay: Poshmark, (founded in 2011), is a website where one can buy and sell new and used clothing, shoes and accessories. It is FREE to list an item for sale on Poshmark. After the item sells, Poshmark deducts a fee from the final order. For sales under $15, a flat rate of $2.95 and for sales above $15 the fee is 20%. On the higher-priced items, EBAY might be the better choice.

    7.   Add the Honey Google Chrome Extension to Your Computer: On your laptop, IPAD, or desktop click www.JoinHoney.com and add the FREE extension. This extension (not for mobile phones) automatically searches for the best prices (often less than Amazon and eBay) and notifies you immediately at checkout

    Since we are headed into the dog days of winter and quarantining is safer than going from store-to-store, these Lucky-7 online shopping Tips can save you big $$$ in 2021, albeit with a little patience. Give these Lucky 7 TIPS a try!

    To be added to our monthly email (which includes 3 articles) newsletter, email “ADD ME” as well as any feedback, questions, or financial topics you are interested in learning about to Rob@InsuranceDoctor.us.

    Be Positive, Test Negative, Happy New Year!!