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The holiday season often brings a surge of gift card purchases and merchandise returns, both of which significantly impact retailers and consumers. 

Gift cards remain a favorite choice for holiday gifting.  In 2024, Americans spent nearly $30 billion on gift cards, making them the second most popular gift after clothing. 

Despite their popularity, gift cards present certain challenges.  Retailers love it when consumers buy gift cards for several reasons. 

A consumer reports survey found that 25% (called Breakage in the industry) of gift card recipients still had unspent cards a year after receiving them!   Also, many consumers spend more than the card’s value when redeeming them.  Bankrate.com said the average American has $240 of unused gift cards.

Other reasons Gift Cards don’t get used include:

1. The Gift Card gets misplaced, and the recipient is not comfortable going back to the person who gifted the card.
2. The Gift Card recipient didn’t register the card online.
3. The Gift Card recipient didn’t know the gift cards can be sold online.
4. The Gift Card recipient isn’t a fan of the retail store where the card was purchased.

Last week I stopped to see a client and friend who co-owns a salon to wish him a Happy New Year.  He asked about my next column topic, and I told him it was on gift cards.  I knew I had a good subject after his rant that he had just received 2 more and now has 6 unused $50 gift certificates from retail stores where he doesn’t shop.  

Some of my solutions to prevent lost gift cards include:

1. Set Up Online Account to Register the Card: Most card websites will allow you to register the gift card for credit via their online account by inputting your card and pin#. 
2. Set Up Account Password: This prevents scammers from stealing your online gift card money.
3. Selling Unwanted Cards Online: I suggest avoiding general websites like Craigslist and using www.GCX.Raise.com This secured site makes it easy to sell Gift Cards from various brands and retailers for cash as well as buying discounted Gift Cards if needed.  Another site for a 2^nd opinion is www.CardCash.com.
4. 5-year Rule:  Under Federal law, gift cards, though not returnable, are protected from expiring for 5 years.  Some states have additional protections.

Have you noticed how difficult it’s been to return items this holiday season? 

The National Retail Federation estimated that 17% of holiday purchases would be returned in 2024, amounting to approximately $890 billion.

As per CBS, holiday returns surged 36% higher than last year, prompting retailers to tighten policies with stricter deadlines and new fees!  Most retailers spend about $32 processing and reselling every $100 item returned online. 

This is why many retailers charge fees such as a “restocking” fee.  Companies such as H&M, Zara and American Eagle have introduced fees for returns to offset their 32% processing costs.  Many retailers will waive the fee if you return the item by mail.

Retailers are also working to prevent returns through technology using virtual try-on features, size prediction algorithms and enhanced product descriptions.

See below for a specific retailer list of return deadlines:

1. Apple: January 8^th (sorry this was written after that date)
2. Best Buy: January 14^th
3. Target: January 24^th
4. Amazon: January 31^st
5. Walmart: January 31^st

Perhaps it’s time to treat yourself with your store card!

Happy New Year!

If you are reading this and have been affected by Hurricane Milton, my heart bleeds for you! 

As an insurance advisor and agency owner for 25+ years, and someone whose family lost our Belle Harbor (Rockaway) beach house in 2012, due to Superstorm Sandy, I empathize with you and your situation.   I’m writing this after Hurricane Milton to help you and others, so feel free to forward this email newsletter to loved ones down south!

After Superstorm Sandy we had an adjuster at the house the next day, and he said, “you don’t need me or my services because your house is totaled and there’s no decision to be made!”  The next day the building inspector said nobody could go into the house as it was a health hazard and had to be demolished. 

We had a FEMA flood policy which covered a maximum of $250,000 for the dwelling and $100,000 for contents aka personal property.  Our Liberty Mutual homeowner’s policy had roughly $1 million in total coverage adding the dwelling and contents together.

After hiring a Manhattan-based law firm, 2 arbitrations, and nearly 4 years later, we finally got closure.  Liberty Mutual claimed it was water damage and initially offered an insulting $14,000 to replace the roof shingles, while Fema was claiming it was caused by wind. 

Keep in mind, that our beachfront house and surrounding lot were valued at $2+ million at the time.  It turned out, that we discovered that their engineer (who did almost 80% of the Liberty Mutual reports) stated that the wind came from the wrong direction. 

We certainly were NOT made whole; however, we fought for years and made ourselves whole with over $600k from Liberty Mutual and $349,000 out of a maximum $350,000 from Fema.

If you are in a hurricane or flood zone and did NOT have damage, I strongly suggest taking a video and/or pictures of EVERY room in your house. Backup the files outside the home for safekeeping in case the time comes, and you are not so lucky!  Include the interior and exterior showing the roof, garage etc. all in good condition aka the before picture!  It’s not easy to recall every little chachka in every room of your home.  Also, keep digital or hard copies of all your policies outside the home.

Before getting into my tips for filing a claim, here are my suggestions on what NOT to do: 

DO NOT:

1. File a claim immediately while you are still emotionally involved.
2. Try to file the claim by yourself without outside guidance from a professional.
3. File a claim without having a copy of your insurance policy or contract in front of you.

Of course, every situation and level of home damage is different and must be dealt with on a case-by-case basis. 

My Claim Tips are as follows:

1. Ask for the Help of Others: Form a team, as this process is overwhelming for one or two people to do alone.
2. Obtain Copies of All Policies: Even if you already have an older copy of your homeowners and flood policies, call or email and get a new copy, then compare them.  Our policy had changed without us knowing about it!
3. Compile a List: Of every item in each room of your home and everything else that was damaged.  Come up with more content value than you have coverage for.  If you are putting in a claim for Home and Flood, you can’t list the same contents twice.
4. Have an Adjuster Look at Your Home:  Be careful with this as adjusters take a percentage of your payout under the guise of getting you more money.  If your home is flattened, an adjuster will not be needed.  If not, have a professional adjuster look at and assess the damage to your home!  There should be no charge for the initial visit.
5. Read Your Policy Language: In central Floria, for example, it was tornados splintering off the hurricane that did most of the damage. Most policies have a 5% hurricane deductible.  If your dwelling has $900,000 of coverage, that’s a stiff $45,000 deductible you are absorbing.  Most tornado deductibles are either 2% of the dwelling or a flat amount that could be as low as $2,500, depending on the insurance company and contract.
6. Keep Records: Keep copious notes on all calls, emails, texts, and names of everyone you encounter as well as the date and content of the discussions.  We used a notebook and phone notes.
7. Get Multiple Estimates:  Get multiple estimates from contractors assessing the damage and cost to replace.  This can give you a sense of what type of offer you might get.
8. Check for Replacement Cost:  Most policies will have either replacement cost or actual cash value (ACV) coverage.  For example:  You bought a beautiful new table for $1,000 and have the receipt.  The table gets smashed.  Replacement costs could be between $1,000 and $1,200.  The ACV only gives you the depreciated value, which could be $600 or less. 

Filing an insurance claim after a hurricane can be a daunting task; however, staying organized and informed will help you maximize your claim.  By following these tips, you will be better equipped to rebuild and recover after the storm!

Let’s face the facts, Americans overeat sugar!!  “Most people are sugar overeaters but don’t know it,” says PHD Nicole Avena.  That’s because some “healthy” foods are loaded with hidden added sugar.  She goes on to say, “The problem is, research suggests that your brain still gets psyched by sweets.  Binging on them on the modern form of “added sugar” can cause a surge of “dopamine,” the feel-good neurotransmitter in your brain’s reward center!”

As per the September 2024 edition of Women’s Health Magazine, the FDA (Federal Drug Association) has “proposed” nutrition label changes requiring manufacturers to list natural and added sugars separately.  For Women, the “recommended daily limit” for “added sugar” is 6 teaspoons or 24 grams per day and for Men, it is 9 teaspoons 36 grams or 150 calories of added sugar per day.

To give you an idea of some of the “excessive sugar culprits,” keep in mind the average 12 ounce can of soda contains 42 grams of added sugar, which is almost double what a woman should consume in a whole day!  This has also been a big issue with sugary “baby formula!”

Some sneaky sugar sources include:

Barbecue sauce: 3.75 teaspoons (15 grams) in 2 tablespoons
Ketchup: 2.25 teaspoons (9 grams) in 2 tablespoons
Fruit-flavored yogurt: 7.75 teaspoons (31 grams) in 6 ounces
Pasta sauce: 3 teaspoons (12 grams) in 1/2 cup
Breakfast bar: 6.25 teaspoons (25 grams) in 1 bar

Our addiction to sweets and liberal labeling policies have caused sugar-related illnesses like diabetes, obesity, heart disease, and dementia to skyrocket!  “Sugar can act like poison in high doses and the amount in our diets has gone beyond toxic,” says Robert Lustig, M.D., a neuroendocrinologist at the University of California at San Franciso Scholl of Medicine!  The typical American now swallows the equivalent of 22 sugar cubes every 24 hours!  That means the average woman eats 70 pounds (nearly half the average body weight) of straight sugar every year!

High Fructose Corn Syrup might be the scariest sweet!  Much of it contains Mercury, a by-product of chemical processing!  Another danger is its high artificial fructose content, not to mention that it can be 75 times sweeter than white sugar.

There are over 50 sneaky disguises/synonyms for sugar to be on the lookout for when reading labels as good health starts at the supermarket:  

Agave Nectar, Barbados Sugar, Barley Malt Syrup, Beet Sugar, Blackstrap Molasses, Cane Crystals, Cane Juice Crystals, Castor Sugar, Corn Sweetener, Corn Syrup, Corn Syrup Solids, Crystalline Fructose, Date Sugar, Demerara Sugar, Dextrose, Evaporated Cane Juice, Florida Crystals, Fructose, Fruit Juice, Fruit Juice Concentrate, Galactose, Glucose, Glucose Solids, Golden Sugar, Golden Syrup, Granulated Sugar, Grape Juice Concentrate, Grape Sugar, High-Fructose Corn Syrup, Honey, Icing Sugar, Invert Sugar, Lactose, Malt Syrup, Maltodextrin, Maltose, Mannitol, Maple Syrup, Molasses, Muscovado Syrup, Organic Raw Sugar, Powdered Sugar, Raw Sugar, Refiners’ Syrup, Rice Syrup, Sorbitol, Sorghum Syrup, Sucrose, Table Sugar, Treacle, Turbinado Sugar and Yellow Sugar!

The “sugar epidemic” has led to an unhealthy pool of Americans with the USA spending over $10,000 per person per year in health care costs, which is almost double number two in Germany.  Health insurance monthly premiums have increased faster than inflation because of our unhealthy eating habits!  In addition, the excess body weight that Americans are carrying has led to decreased mobility and increasing disability and long-term care insurance premiums nationwide!

I have set foot on all 7 continents since 2009 and can tell you that it is rare to see obese persons in most of these countries.  There are several reasons for this, such as portion size, food prices/affordability and different levels of food rules and regulations. 

Did you know:

1. Little Debbie’s Swiss Rolls: They are banned in Norway and Denmark, countries with highly regulated food standards.
2. Fruit Loops:  A beloved classic American cereal by kids and adults alike, have been outlawed in multiple countries because of its high sugar content!  Also, countries such as Qatar and the United Arab Emirates banned “fruit loops” because they contain “intensely bright colorings” due to various artificial dyes and preservatives. 
3. Mountain Dew:  A popular drink amongst the youths of America.  Mountain Dew is banned in multiple countries such as Sweden, Finland, Norway, France, and Denmark because of its high caffeine content in addition to being loaded with sugar!

In conclusion, many sugary and unhealthy American foods are banned in other countries worldwide for a variety of reasons.  It could be health risks, environmental concerns, or more stringent standards for what is considered acceptable food products.  Regardless of the reasons, these bans highlight how important it is to be aware of what you are putting into your body. 

The next time you are at the grocery store, consider checking the labels before taking those sugary treats home!

When athletes proudly stand on the Olympic podium with medals around their necks, the culmination of years of dedication, training, and sacrifice is evident to the world!  What’s less visible is the financial aftermath- meaning how U.S. Olympians are compensated and taxed for their achievements. The journey to Olympic glory involves more than just physical and mental exertion; it also has major financial implications.

Unlike many countries, such as China and Cuba which directly fund their athletes’ training and support, the US athletes rely on a combination of private sponsorships, personal fundraising, and the athletes’ own resources. However, the United States Olympic & Paralympic Committee (USOPC) does provide monetary rewards for athletes who earn medals.  In Cuba, if you medal, the government covers your costs for the rest of your life!

As of the Tokyo 2020 Olympics, U.S. athletes receive $37,500 for a gold medal, $22,500 for a silver medal, and $15,000 for a bronze medal. These payments are considered “bonuses” and are intended to help athletes offset the significant costs associated with competing at the highest level.  These “bonuses” have NOT been indexed for inflation!

Historically, these bonuses, along with the actual cost of the actual gold, silver and bronze inside the medals were subject to federal income tax. This situation puts some athletes in a difficult financial predicament!  Imagine winning a gold medal, only to face a hefty tax bill that you might not be fully prepared to pay. In some cases, athletes could find themselves owing thousands of dollars to the IRS simply because they excelled in their sport.

This tax treatment led to public outcry and calls for change, particularly after the London 2012 Olympics. The idea of penalizing athletes for their success didn’t sit well with many Americans. In response, Congress passed the United States Appreciation for Olympians and Paralympians Act in 2016. Under this law, the bonuses earned from Olympic and Paralympic medals are exempt from federal income tax, provided the athlete’s gross income is below $1 million that year. For athletes earning above this threshold, the bonuses remain taxable.

Although the federal government provides this exemption, state taxes are another matter. Some states, like California and New York, have high state income taxes that can still affect an Olympian’s earnings. Athletes residing in such states may still see a portion of their winnings going to the state tax authorities, though some states have passed legislation to exempt Olympic bonuses from state taxes.

For most Olympians, the medal bonuses are just one part of the financial equation. Many rely on sponsorships and endorsements, (which were down this year) which can be substantial for high-profile athletes like swimmers, gymnasts, and track stars. These earnings are fully taxable, and the tax burden can be significant, especially for those who experience a short-lived surge in income following the Games.

The cost of training, travel, coaching, and equipment can be immense, and not all Olympians receive enough in bonuses and endorsements to cover these expenses. Some athletes take on debt or rely on the support of friends and family to make ends meet!

In conclusion, the financial landscape for U.S. Olympians is complex!    While winning a medal is an incredible achievement, it comes with financial responsibilities that the public often overlooks. The tax exemption on medal “bonuses” has alleviated some of the burdens, but athletes still face a myriad of financial challenges. As they continue to pursue excellence, it is important to recognize and support their efforts not just on the field, track, or pool, but also in managing the financial realities that accompany their Olympic dreams.

The USA won, by far the most medals with 126, 35 more than China, who tied us with 40 gold medals.  Bravissimo USA, and onto Los Angeles in 2028!  I hope to be there live and share my experiences with you!

Do computers already run the world?  CYBER WAR could be the next major threat to national security!

Last Friday, the world experienced a massive, unprecedented computer outage caused by a defective “routine” software update to Microsoft Windows customers issued by CrowdStrike, an Austin, Texas-based cybersecurity technology company ironically designed to prevent cyber-attacks.  Mac and Linux hosts were not affected.

In only a few hours, companies and industries worldwide were crippled, as over 8.5 million machines were affected causing frozen blue screens referred to as the “Blue Screen of Death!”

For example:

1. Travel: The big 3 airlines, United, Delta, and American grounded flights in the early hours as over 5000 US flights were canceled on Friday, over 2000 on Saturday, and over 500 at the time of writing this article on Sunday Morning.  American is the only carrier back on schedule for now.  There have been reports of airline agents handwriting boarding passes.  Even bus stops had blank blue screens!
2. Healthcare: Many hospitals have been forced to cancel ALL elective surgeries, walk-ins, routine appointments and even postpone some life-saving surgeries.  911 calls were adversely affected!
3. Banks: There have been reports from traders at JP Morgan Chase and other financial institutions of orders that could not be executed. 
4. Chain Restaurants: Starbucks mobile ordering crashed (Dunkin Donuts survived) and McDonald’s in Japan closed almost a third of their stores for the day.
5. Governments: The Dutch and UAE foreign ministries reported massive IT (information technology) outages.  In the U.S., downed court systems delayed trials for hours, including Harvey Weinstein’s. 

This is a scary situation as it was allegedly caused by an accident.  What if it was planned, how much worse would it be?  According to Richard Clarke, former White House Counter Terrorism Czar, Putin has already used this technology to plant a “spy package” into a software update for a company called Solar Winds, which affected over 10,000 government and private-sector machines that were not detected for 9 months. 

Unfortunately, there is little regulation, if any, on software and believe it or not, CrowdStrike cannot be sued!

My Suggestions for CrowdStrike and other large firms:

1. Test your Updates Before releasing them to the masses:  I spoke with tech experts who say technology can be developed to both pre-test these software updates before rollouts and or abort them during problem rollouts!
2. Do NOT send it to everyone at the same time: This isolates potential problems and the ripple effects of them.
3. Large Firms Need to Diversify: Large firms and perhaps even mid-size firms should consider spreading their risk by using 2 types of software.

During the chaos last Friday, cybersecurity agencies noticed upticks in copy caters and phishing.  Scammers immediately pounced on the unsuspecting and unprepared public!  Within hours, new domains had surfaced aiming to “dupe” users and designed to steal user data and breach their devices.

My suggestions for individuals:

1. Turn Off Automatic Updates:  The CrowdStrike outage has taught us the latest isn’t always the greatest when it comes to operating system updates. Unless the update addresses a critical security vulnerability wait a week or two to see if other users are experiencing problems.
2. Check your Malware:  This is the time to check or add malware protection for your computers.
3. Consider DuckDuckGo Search Engine: Google uses what is called “cookies” to track your searches and purchases.  Consider adding or using DuckDuckGo in addition to or in lieu of Google.  While Google is the superior search engine, DuckDuckGo does NOT track any of your queries.
4. Hover Over Email Sources Before Opening: Scammers have gotten more sophisticated using emails and texts.  Take your mouse or trackpad and “hover over” the email sender to see if you recognize the email address before opening and responding.

The bottom line is if one company’s “single content update” software bug can trigger a “worldwide internet outage,” then back up and checks and balances measures need to be taken immediately!

During an election year, there is usually elevated talk about inflation being one of the most important topics for Americans to be concerned about and I concur!  There is more to current inflation reports as they can be manipulated to show lower percentage increase numbers.

Inflation is an economic term for the rising prices of goods and services, which usually happens gradually.  During the COVID-19 era, we have seen inflation rise much faster than usual for a variety of reasons.  The U.S. central bank AKA the Federal Reserve, aims for a “slow and steady” inflation rate of 2% per year.  While the annual rate of inflation peaked at 9.2% in June of 2022 June 2024’s 3.3% rate still exceeds the Fed’s target inflation rate.

Forbes describes their three types of inflation as follows:

1. Demand-Pull Inflation: Describes how the demand for services can drive up their prices.  If something is in short supply, you can generally get consumers to pay more for it.
2. Cost-Push Inflation: often kicks in when “demand-pull” inflation is going strong.  When raw materials costs increase for businesses (such as pizza, which I call Pizza-flation), the businesses, in turn, must raise their prices, regardless of demand.
3. Built-In Inflation: As demand-pull inflation and cost-push inflation both occur, employees may start asking employers for a raise.  Employers must figure out how to keep their wages competitive or they can end up with a labor shortage.  If/when the employers raise employee salaries and, to maintain profit margins raise their prices, built-in inflation has arrived!

Currently, the USA is grappling with all 3 of these types of inflation at the same time, which is rare!  Unfortunately, it gets worse before it gets better as there is a 4^th type of inflation that nobody talks about nor wants to acknowledge.

Americans feel inflation most at the gas pump and in the supermarkets and grocery stores across the country.  Consumers are tired of the rampant inflation we have experienced from 2020-2024.  Manufacturers are keenly aware of consumer sensitivity towards inflation, so they have devised a clever, if not sneaky strategy for raising prices per unit cost by reducing the size or quantity of products whilst keeping the price level.   This phenomenon is known as “Shrinkflation!”

Manufacturers use the sleight of hand of shrinkflation to increase their price per unit without raising prices. This leaves consumers “paying the same for less”- often without realizing it.  This is happening most in food and household products.

Shrinkflation is best understood by using “real life” examples of what is currently happening countrywide:

1. Cheerios:  General Mills, the maker of “Cheerios” and many other cereals and popular brands has reduced the size of its boxes from 19.3 ounces to 18.1 ounces (-6.2%) for the same price.
2. Charmin Toilet Paper: Procter and Gamble decided that their Charmin “Mega-Roll” which once had 264 sheets now contains only 244 sheets       (-15%), for the same price.
3. Doritos: PepsiCo, through their “Frito-Lay subsidiary, has ensured that their “Doritos” chip bags have reduced the number of chips per bag.  Their standard-sized bag has been reduced from 9.75 ounces to 9.25 ounces (-5.1%), for the same price.
4. Tide Detergent:  Procter and Gamble used the same strategy as Charmin by reducing their Tide Detergent bottles from 100 fluid ounces to 92 ounces (-8%), keeping the price the same. 
5. Coffee: Over the years, many bags of coffee went from 16 ounces to 12 ounces, and some are now 10.5 ounces, all for the same price.  Coffee sellers have realized that it’s more profitable to reduce bag size and keep prices under $10 (a psychological barrier) instead of raising prices further.

Manufacturers have reintroduced their smaller packages by shifting the focus using phrases such as, “new and improved.”

Before I give you a few tips to combat this sneaky way of increasing prices, the first step is to understand and recognize when this is happening. 

My “BIG THREE” money-saving tips are:

1. Compare Unit Prices: This takes minimal work as our smartphones have calculators in them.  Some stores like Costco actually list the “price per unit” on their shelves.  If not, do a quick “cost per unit or cost per ounce” calculation then compare products based on unit or cost per ounce.  You might be surprised when looking at prices using this method. 
2. Consider Buying in Bulk:  Membership stores such as Costco, BJ’s, and Sam’s Club can be a good place to start.  Online, websites such as www.RetailMeNot.com can be a valuable resource to easily search and compare prices by unit or ounce when online.
3. Be Aware: Stay informed about prices and price changes for your favorite products going forward so you don’t get blindsided by Shrinkflation!

For an early Father’s Day event and my father’s birthday, I took my father and brother to the Yankees at Mets game at Citifield, part of a bigger event thrown by Gotham Networking.  We were trying to remember, and it could be 20 years since the 3 of us have attended a live baseball game. 

We noticed recent changes immediately, starting from the entrance to the parking lot.  There were 4 cars in front of us and it still wasn’t clear how much the parking cost, nor what methods were available to pay for it.  There was a very small $40 parking sign about 1 foot off the ground in front of only one of the three lanes and we couldn’t see it until we were 2 cars away from the gate. 

Since this was my treat, I was fumbling for cash when my father spotted the car in front of us using a credit card, which is what we decided to do.  Once we got into the stadium, we decided to grab a quick coffee before deciding where to eat as it started to rain just before game time, so the walkways and concession stands were already jam-packed with long waiting lines. 

Paying via tablet is now the convenient norm for many pizzerias, coffee shops, quick service, and fast-food locations around the city.  These gadgets are quick to ask you to add, in some cases a hefty tip (15%-30% or higher) to your order, even though it’s a grab-and-go situation. 

You have probably noticed, there is sometimes subtle and sometimes not subtle pressure to tip at certain places where you had never tipped before.  Payroll processing systems have become advanced with companies like “Square” who offer tablets designed to expedite payment time and increase tip amounts.

T.I.P. used to stand for: To Insure Promptness!”    It seems like the old school “tip jar” is on its way to becoming extinct.  I must say I like the old school tip jar better as you make eye contact with the worker and get a “thank you” or sometimes a little nod from them showing that they appreciate your putting a few dollars in that jar means a lot.

My question is, where does this “guilt tipping” end?  There are different schools of thought about that and which is better, the old-school jar or the tablet. 

Pro Tipping Jar:

1. Eye Contact: When you frequent a store, you get to know and communicate with the employees.  It’s a nice feeling to make eye contact and get a thank you or nod as you place the cash in the jar.
2. Direct Benefit:  You know you are directly helping the workers that you see. 
3. Commensurate to Service Level: If you get stellar service or something special is done for you, perhaps you get a bigger nod or thank you when depositing larger bills into the jar, which helps you get good treatment going forward.

Pro Tablet Payments:

1. Efficiency: The tablet is faster than looking for bills and they do the math for you.
2. Points: Tipping by credit card gets you an additional frequent flyer or award points.
3. Budgeting: You have a record of ALL expenditures, including tips, which help you keep a more accurate spending budget. 

If you ask 10 New Yorkers about tipping, you might get 10 different answers.  Some of the tablet drawbacks are:

1. Who benefits: It is not always clear who is directly receiving these tips; is it the cashier, or server or are they pooling with employees in the back?
2. Appreciation: Tipping is now expected everywhere so employees are less likely to thank you and or nod in appreciation. 
3. The Evil Eye: There are now situations when cashiers will look directly to see if you are tipping and how much.  This is when “guilt tipping” starts to creep in. 
4. TipFlation: With inflation, we are already paying more for goods and services.  What I call “TIPflation,” is now guilting patrons into tipping more and more often. 

I was thinking about this a few months ago when I was at the airport, en route to see a client in Florida.  There was not enough time before boarding to sit down at a restaurant to eat so I stopped at a CIBO “Express Gourmet Market,” which was a self-checkout sandwich machine with no employees.  When I was about to pay, a tip screen popped up.  I had to laugh as I asked myself, who is receiving this tip, the machine?   I knew that there would be a column I needed to write on this topic and today is the day!

Like pizza, there is no right or wrong with tipping as it is your personal choice.  If one person says this thick-crust pizza is better than that thin-crust pizza, is it the gospel?  Of course not, as you might like the thin crust better.  Tipping is the same as it is based on your beliefs and personal experience. 

Since we are now in the summer and summer camps start this week for some campers, I suggest reaching out to the camp to see if they have a “camp tipping guide!”  Also, as per Jackie Gifford, Editor in Chief of Travel & Leisure Magazine, when staying in a hotel the tipping guide is $3-$5 per day and more if you have a big suite party, which usually means a big mess!

Have a Great Summer!

The Biden administration is proposing new automobile pollution limits that would require as many as two-thirds of new vehicles sold in the United States to be electric by 2032!

On a state level, California has taken it further, as they are requiring 100% of ALL new cars sold in 2035 and beyond be zero-emission vehicles, which include battery electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles.  Oregon and Washington are following suit. 

The fact that 47 other states have not yet made a commitment, and with the average lifespan of a car in the United States pegged at about 12 years, there will still be a need for gasoline for decades to come.  The gasoline demand should start to drastically reduce by 2030 going forward.

You might be asking yourself at this point, what does this all mean?  There will be many hidden costs during our national quest to go 100% electric:

1. Gas Service Stations Will Close:   California’s shift away from gas-powered vehicles could mean as many as 80% of gas stations would be unprofitable by 2035!  The state currently has about 250,000 station owners and employees.  There will be many job losses across America during this transition.
2. Crumbling Infrastructure: Recently, a lower Manhattan parking garage collapsed as a four-story Ann Street structure caved in, leaving cars stacked atop one another and rubble down to street level.  The garage manager was killed, and 5 employees were injured.  One of the reasons was too much weight on the rooftop.  This problem will not be going away as electric cars, due to their heavy car batteries, weigh much more than gas-powered vehicles.  For example, the battery of an electric GMC Hummer weighs 2900 pounds, roughly the entire weight of a Honda Civic.
3. New Regulations Are Needed: Because electric cars weigh much more than gas-powered vehicles, building regulations and standards must be reviewed and the bar raised for parking garages, bridges, and the double-decker roads that are found in most big cities across the country.
4. Electric Battery Replacement and Disposal:  Depending on what source you trust; the typical EV battery will need to be replaced every 3-10 years.  Batteries may degrade faster in hotter climates as heat adversely affects EVs.  EV battery replacement costs range from $5,000 to $20,000 based on the pack, size, and manufacturer.  A Tesla Y battery costs $20,000.  The length and wording of electric vehicle warranties will be critical going forward!  If a battery fails during the warranty period, the dealer will have to replace that battery free of charge. 
5. Precious Metal Shortages:  The lithium-ion batteries found in EVs depend on 5 critical minerals; lithium, cobalt, manganese, nickel, and graphite.  Ramping up EV production quickly will create domestic supply shortages.  China knows this and has been siphoning natural resources (metals and minerals) from Africa for decades.  This has enabled China to lead the world in EV production.

The combination of the Manhattan parking garage collapse and a casual conversation I had with a nurse named Grace triggered the writing of this column.  Grace just purchased her Tesla Y in January of 2023 because her Mercedes came off lease, Tesla had decreased their prices and she “wanted to save money!” 

I asked her how it was going, and she gave me a surprisingly long answer and made several key points I didn’t think about, as I still drive a gas-powered car.  I expected to get a quick response that she was happy and saving money.  The points that she made were:

1. Geico Raised Her Premiums by Almost 30%: This was a surprise to hear.  I asked why and she said she called Geico, and they said it was because of the increase in the price of parts for Evs.
2. The Cost of Home Charging Installation: Grace said in the past, when customers bought Teslas, they received a home fast-charger with the car.  This was not the case for her.  She bought an aftermarket trickle charger that took days to charge as it charges only 3% per hour.  She also couldn’t use a blow-dryer while charging her car without blowing fuses.  She was quoted $1500 by an electrician to install the system, which did NOT include materials, permit, inspection, and a warranty.  She decided to abort that mission and tries to charge her Tesla at the North Shore Hospital garage (there are only 6 charging stations in total) during the 3 days she is working 12-hour shifts.  I know of parking garages that charge an extra $100 per month and charge the car for you.
3. She IS Saving Gas Money Weekly:  Nurse Grace was spending $50-$60 per week for gas commuting to work.  She now pays about $15 per week (measured in kilowatts) to charge her car at work when she can find a charging station. 

My Take is that we do need to transition to electric cars; however, for my Financial Wave readers, it is a little early to buy one now and expect to save big chunks of money every week. 

Over the next 2-4 years, there will be a proliferation of new EV cars introduced to the market which will bring down new EV car sticker prices.  As charging stations get funded and built and the technology advances, the kilowatt charges and charging times will lessen making the EVs a better purchase in the near future than they are now.