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  • 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!

  • 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.