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  • 8 Back to School $$$ Saving Tips

    8 Back to School $$$ Saving Tips

    As we begin the 2022-2023 school year during what I call “The Covid-19 Era,” there is some uncertainty and trepidation.  Some schools are commencing this week, others will start the following, and others after Labor Day Weekend.

    No matter when it starts for your student(s), 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.  With the evolution of the internet, Covid-19, and the closing of many malls and brick-and-mortar stores, buying habits have changed 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.  Review my top 8 money-saving tips and perhaps start a new habit:

    1. Make a List, Then Shop Your House First:  Look through closets, storage, and utility drawers first.  There is a possibility you might have items left over from the last school year.
    2. Craft a Budget:  It is always a good idea to have a price range that you are willing to spend.  Keep the list with you when you are shopping either online 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 online and mega-retailers, there is a chance your local dollar store will have the items you are looking for at a discount.  Dollar stores 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 online shopping, it is prudent to use the bigger screen to review and compare prices.  In addition, although smartphones 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, Ipad, or another 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 sneaker trends.

    Heed these 8 tips and watch your savings grow!   I wish you and your families a safe and productive school year!

  • Travel in Today’s Covid World

    Travel in Today’s Covid World

    Last Sunday night, August 7th I was scheduled to return from a combination business and pleasure trip to Buffalo, New York.  I had a 7:25 pm flight from Buffalo Airport to JFK and, even though I had been reading about mass flight cancellations, I didn’t expect it to happen to me on a short 52-minute flight.

    I arrive at the Buffalo airport and it already shows “delayed” by 30 minutes on the board.  I ask the Delta employee at the gate what is the reason for the delay and he says, “The weather from JFK airport, so the plane can’t leave JFK.” 

    Immediately, I called my parents and inquired about the Rockaway Beach weather, which was hot and sunny last Sunday night.  A Delta supervisor then shows up and said, “The flight was cancelled, I’m going to give it to you straight, please come and get rebooked either through me or any other gate ticket attendant.” 

    I was 3rd in line and it turns out both couples ahead of me were heading onto vacations overseas, one to Paris and the other one to Iceland, both having to connect at JFK.  There were no more Delta flights that night and we were ALL stuck in Buffalo for the evening.  Both couples were going to miss their next morning JFK connection and one of the women was already crying as she left the counter because they had no way to change their trip or to get a refund.

    When I got to the front of the line, I let the supervisor know that there is no way this is a weather issue!  Look at Google JFK weather on my phone.  It also costs about $150 per night for a decent hotel in Buffalo, so I asked her “who is paying for that?”  She said, “there are no vouchers available for a Delta flight canceled by weather.” 

    At this point, it was clear that Delta was intentionally lying to save money on vouchers.  She did tell me airlines are more likely to cancel smaller plane flights.  I have known their “cancel and combine” policy, which combines 2 flights into 1 for more profitability.  These are the airlines that received fat stimulus checks!

    I decided to have a “kill her with kindness approach,” thanked her for her positivity, and asked to be rebooked for first class the next morning after she declined my voucher request.  Her reply was, “That I can do!.” Basically, I got off easy missing only a half day of work and having to stay in Buffalo one more night.  The 2 other couples are looking at losing many thousands of dollars and stress, which could have been avoided. 

    It is always better (and less expensive) to learn from the mistakes of others.  Here are my 6 Tips for traveling in the new world of Covid-19:

    1. Try to NOT Check a Bag: Those couples had to go back to baggage claim to find their bags.  Also, these flight cancellations leave baggage in limbo.  Most airlines allow for 1 carry-on bag and 1 personal item, which can be a knapsack holding lots of stuff.  If you have to check bags, “baggage insurance” will cover the lost or damaged items as well as provide a daily dollar amount for purchasing “essentials” while your bag is missing.
    2. Buy a Carryon Bag That is NOT Black:  The majority of carry-on bags are black.  Using a different color bag allows you to easily identify it and describe it when missing.
    3. Consider Buying Travel Insurance:  These are unique times that call for unique measures.  Depending on your situation, there are several types of travel insurance available, such as trip cancellation, trip interruption, medical injury, (usually up to $50,000) lost or delayed luggage, and/or “bundled packages” which can be a combination of these travel insurances.
    4. Arrive a Day Early:  If you are flying internationally and do not want to or cannot afford the insurance, it is a wise move to arrive at your connection city a day early.  It will cost you 1 additional hotel night which is much better than missing your trip and losing all the money you might have prepaid.
    5. Sign Up for TSA or Clear: The TSA or Clear pre-check can make the difference in making or missing a flight or flight connection.  The TSA is easy to get and for $85 it goes a long way, good for 5 years.
    6. Do Your Research:  Spending the time doing your due diligence can save you a tremendous amount of money and stress!  Read your credit card, health insurance, Medicare, or Medigap policy to see what is covered and what is not.

    I hope your summer is going well and you are catching up on traveling as I have.  Heeding these 6 tips will decrease the risks of losing out on a wonderful vacation. Enjoy!

  • FREE Stuff!

    FREE Stuff!

    We are in the middle of a pandemic and a borderline recession with a 9.1% inflation rate over the last 12 months!  If there were ever a time to learn how to stretch your dollars and get some “FREE Stuff,” that time is now!

    There is a saying, “If it’s FREE, it’s for me.”  If you believe in this, read on.  Who doesn’t like FREE stuff?  With some research, there are many things you will uncover that are FREE or FREE for a limited time period. 

    For example, many states require a “fishing license” to go fishing without incurring a fine.  California allows you to “Fish for FREE” on July 2nd and September 3rd.  Go to www.TakeMeFishing.org to see when there is FREE fishing in your state of residence or if/when you are visiting another state.

    Other examples of FREE Stuff are:

    1. FREE Tax Preparation: Yes, we are in the middle of the summer; however, tax time will be here soon enough.  As per John Waggoner of AARP, the AARP Foundation provides FREE in-person and virtual tax assistance available to those age 50 or older.  If your adjusted gross income (AGI) is under $73,000, you can use the IRS’s “FREE File” by going to www.apps.irs.gov/app/freefile to answer a few questions and to see if you qualify.
    2. FREE Trees:  If you are looking to plant large trees, you can organize a “tree giveaway event” and the National Wildlife Federation (NWF) will reimburse you for native trees.  Go to www.nwf.com for more information.  You can also obtain FREE trees from some state and local governments, which often work with local tree-planting groups to encourage the cultivation of native trees.  Tree giveaways are common around “Earth Day” and “Arbor Day,” both in April.
    3. FREE Books:  The best place to go for FREE books is your local library.  There are numerous APPS for your IOS or Android phones such as “Libby,” which gives patrons apps to browse your local library’s collection of audio and ebooks on your device.  Other apps include “GoodReads,” where readers can see book reviews (and sometimes score free new book releases). “LibraryThing” is FREE for the first 200 books and “Bookly,” where the first 10 books are FREE, to name a few.
    4. FREE Coffee:  To score FREE coffee, you could join “Peet’s Coffee Rewards” called “Peetniks,” and receive 125 points after your first purchase, which earns you a FREE beverage.  The “Starbucks Rewards Program” allows you to get a FREE coffee on your birthday as well as FREE refills on your brewed coffee or tea.  Both programs are FREE to join.
    5. FREE Movies:  If you don’t want to pay the monthly fees for streaming services like Netflix or Hulu, you can watch FREE movies on www.Crackle.com or www.TubiTv.com. They both have a good menu of movies.  You will have to watch a few ads in between; however, they are FREE, and Netflix will soon have ads as well.
    6. FREE Birthday Stuff:  Who doesn’t like FREE stuff on their birthday?  Chili’s Rewards Program will give you a FREE dessert on your birthday.  Most restaurant chains give FREE gifts to join their rewards programs.  Denny’s gives you a FREE grand slam breakfast on your birthday, then you can hit Sephora for a FREE skincare gift or birthday makeup from their ”Beauty Insiders Club.”
    7. FREE Music:  Websites such as “Soundcloud” will give you FREE MP3 downloads of many artists for 30 days, though not full albums at a time.  “Last.FM” will also let you stream or download music for FREE!
    8. FREE National Parks Entry:  This is my favorite one as our National Parks have been crowded this summer.  The National Park Service (NPS) manages 423 parks across the USA, of which over 100 parks charge entrance fees.  The NPS waives fees five days per year; January 17th (MLK day), April 16th (Start of National Park Week), August 4th (Great American Outdoors Act), September 24th (National Public Lands Day), and November 11th (Veterans Day)!  Veterans, members of the military, and Gold Star Family members can all get a FREE entry pass for national parks.  Those ages 62 and older can buy a “Lifetime Senior Pass” to national parks for only $80 plus a $10 processing fee.  State Parks are FREE in Hawaii, Illinois, Iowa, Missouri, Tennessee, and Pennsylvania.

    Now that you have the knowledge of where to find FREEBIES, enjoy the rest of your summer!  If you know of additional FREE stuff opportunities, feel free to share them with me at Rob@InsuranceDoctor.us

  • The Rockaway Rocket is here!

    The Rockaway Rocket is here, for now!  This temporary express ferry shuttle pilot program started on July 23rd and will run on weekends and holidays through September 11th!

    This program is an effort by the city to raise revenue and increase ridership. It is part of a broader overhaul of the ferry’s fare system.  The Rockaway Rocket is a nonstop express ferry, departing from Manhattan’s Pier 11 by Wall Street and stops directly at 108th street at Beach Channel Drive. 

    Manhattan departures are scheduled at 9:30 am, 11:30 am, and 1:30 pm.  Riders can depart from Rockaway directly to Pier 11/Wall Street at 2:30 pm, 4:30 pm, and 6:30 pm.  The cost for a 1-way ticket is $8 and it ONLY includes the Rockaway Rocket ferry ride.  A round-trip ticket costs $16.  There is a cost of $2.75 to transfer to another ferry, train, or bus.  The non-stop trip takes between 45-55 minutes and skips the Sunset Park stop. 

    This new service comes conveniently at the same time Mayor Adams announced that the fare for the regular NYC Ferry will climb to $4 per ride (up from $2.75) for “tourists and infrequent riders” starting September 12th. 

    The ACTUAL cost of a ferry ride is $12.88 per trip even though riders have been paying $2.75.  According to “The Gothamist,’ the city had underreported approximately $244 million worth of expenses since 2015.

    My Top 10 Rocket tips and facts:

    1. Reserve Your One-way Ticket in Advance:  Tickets MUST be reserved in advance either online at www.ferry.nyc or via the NYC Ferry app.  There are NO paper tickets and no Metrocards are accepted. 
    2. Reserve a Bicycle Spot in Advance as Early as Possible: Bicycle spots must also be reserved online in advance.  The ferries only have room for about 10 bicycles, so the earlier you reserve the better.  There is no additional charge to take your bike onto the Rockaway Rocket.
    3. Discounts Are Available: Beginning on September 1st, low-income New Yorkers, seniors and the disabled can purchase a one-way Rocket ticket for $1.35.  Frequent riders can purchase a 10-trip pack for $27.50. 
    4. A Reserved Ticket Equals a Guaranteed Seat:  An advantage of taking the Rocket is your pre-reserved ticket guarantees you a seat and eliminates the chance of the ferry being overcrowded.  Tickets may be purchased, if available, up to 15 minutes before the scheduled departure time. 
    5. Take the Kids, Especially Small Ones:  Up to three children under 44 inches in height can board with each adult; however, the child’s FREE ticket MUST BE reserved in advance using the ferry app or website.  Height will be verified upon boarding and children will NOT be permitted to board without a ticket. 
    6. Android Smartphone Owners Be Patient:  Android users buying tickets via ferry.nyc may NOT immediately see their tickets in the NYC Ferry app.  Riders using the Android NYC Ferry App will automatically receive a ticket purchase confirmation via email, and can expect to see their reserved tickets in the app the day prior to their scheduled departure.  Keep in mind you MUST present your ticket by phone using their app, no paper tickets are accepted!
    7. If You Miss Your Departure:  The Rockaway Rocket Ferry is independent from the regular ferry system and the MTA train system.   If you miss your Rockaway Rocket Ferry ride, you MAY use your ticket to board a regular NYC Ferry until your ticket expires.  You may NOT use your ticket for priority boarding on any other ferry route.
    8. Use the Rocket Waiting Line: If you are using the Rocket, do NOT wait on the regular ferry line.  RR service includes a separate line for reserved Rocket ticketholders.
    9. Rain or Shine Unless Cancelled by NYC Ferry:  Rockaway Rocket trips operate regardless of weather and are non-refundable.  In the event of extreme weather, NYC Ferry may cancel a trip.  In that case, full refunds will be issued to ALL riders, no questions asked.
    10. Try It and Be Happy:  The Rockaway Rocket promises tremendous panoramic views of Manhattan and Queens, great for photos.  There are also discounted adult and regular beverages available on board!

    The Rockaway Rocket is a new and exciting pilot program that will bring more people from Manhattan to now “Easy to Reach Rockaway Beach.”   It beats the hot and sweaty subway and is an easy 45-55 minutes from Wall Street to The Rock and vice versa!  Give it a try and let me know what you think at Rob@InsuranceDoctor.us.

  • 8 Summer Travel Planning Tips

    8 Summer Travel Planning Tips

    8 Summer Travel Planning Tips

    Having touched foot on 6 of the 7 continents, I have learned a lot over the years.  Many families have held off on their summer travel due to the pandemic, and rightly so, as rules have been changing.  I just returned from 2 weeks in Northern California.  Travel has undergone significant changes over the past year.  Some of my tips include:

    1. Call Your Credit Card Company in Advance: Give them your full itinerary, with dates in each city.  I have had credit cards frozen after they have seen a string of out-of-town expenditures.
    2. When Packing Start from Feet to Head: This is a good thing to do in the morning getting ready for work.  I start from feet to head and pack in piles.
    3. Pack a Change of Clothes in your Carry-on Bag if Flying: Over29 million bags are lost or delayed each year.  Be ready when and if it happens to you.
    4. Buy an Off-Color Suitcase: This decreases confusion and is more easily recognizable during ground-transportation madness with people jockeying for their luggage.
    5. Sign Up for the TSA: The TSA pre-check can make the difference between making and missing a flight.  It offers better distancing and eliminates the need to remove your shoes, belts, and/or laptops expediting the process.  TSA memberships cost only $85 and it is good for 5 years.  The renewal is discounted to $70 if done online at tsa.gov/precheck.com or $85 in person.
    6. Research AAA and Airline Vacation Packages: It is no secret that airlines and hotels have been hurt by the pandemic.  There are some sweet short-notice vacation packages available right now.  Check out AAA.com, JetBlueVacations.com, and AAvacations.com to name a few, and save big money!  If you have points with your preferred airline, start with them.
    7. Read Both Positive and Negative Hotel Reviews: Try booking.com, tripadvisor.com, and kayak.com for domestic travel.  For same-day rooms use hoteltonight.com.  It is a money-saving, excellent FREE APP to download onto your smart-phone to save big $$$.
    8. If Driving, Schedule a Tune-up and Map Your Journey in Advance: A good way to avoid getting into a spat with a spouse or loved one, lol.  There is nothing worse than a car breaking down or getting lost on a road trip.  My preference is WAZE over Google Maps.  WAZE (owned by Google) downloads faster and has an information-sharing agreement with over 800 US cities and international countries.  Waze also warns you about upcoming speed traps, red-light cameras and debris on the road.  WAZE has saved me many times over the years, and it also works overseas.  We used it during our father-Son trip to in London in the summer of 2019 for the 2-game Yankees vs. Red Sox series.

    I have spoken with family friends who haven’t been away since covid-19, and some say they are a little rusty regarding travel.  Sometimes people put too much pressure on themselves to have a good time in this situation.  Planning in advance can help ensure a smoother summer vacation.  Have a fabulous trip and enjoy your summer!

  • Inflation rocks the nation!

    Inflation rocks the nation!

    No matter where you go these days, the bank, supermarket, or daycare to pick up the kids the number one topic of conversation in our nation is rampant inflation!  This is also a major problem across the world.

    As of the writing of this article, the G7 leaders are meeting in Bavaria, Germany to discuss “global inflation” and the war in Ukraine.  The G7 leaders are Joseph Biden (USA), Mario Draghi (Italy), Boris Johnson (United Kingdom), Fumio Kishida (Japan), Emmanuel Macron (France), Olaf Scholz (Germany), and Justin Trudeau (Canada).  They represent 7 of the richest economies in the world, which are all being affected by skyrocketing inflation. 

    As per Wikipedia, “Inflation is a general increase in the prices of goods and services in an economy.  When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.”

    My regular “Financial Wave” readers will remember that 2 weeks ago I covered “Inflation and Shrinkflation.” Shrinkflation is charging the same price for a smaller amount of goods.   A good example of this is Gatorade phasing out their 32-ounce bottles replacing them with a taller and thinner 28-ounce bottle while trying to make it look the same size.

    If you are not a business owner, the odds are good that you are on a fixed income or a fixed salary.  This means that the purchasing power of your money is eroding.  This is not a revelation, as you can see the noticeable difference every time you run errands at the supermarket, convenience store or at the gas pump! 

    The 2021 inflation rate was 7%.  The inflation rate for the 2nd quarter of 2022 is expected to be 8.4%!  The question for advisors is, “Is there anything we can do about this?”

    My answer is, yes, we can suggest investing in I-Bonds, also known as Inflation Bonds, backed by the U. S. Government!  The letter I stands for “Inflation Bonds,” which are specifically designed to fight inflation during these times. 

    You might not hear from your advisors about this because there are no commissions or fees to be made from selling I-bonds!

    My Lucky 7 Features and Benefits of I-Bonds:

    1. Definition: I-Bonds are savings bonds that earn interest based on combining a fixed interest rate and an inflation rate.  They are designed to earn a higher rate than the current inflation rate. 
    2. Security:  These bonds are secured by the U.S. government!
    3. Flexible Deposits:  You can deposit between $25 and $10,000 per year into an online treasury bond account.
    4. Online Accounts Only:  I-Bonds are ONLY purchased from the U.S. Treasury by internet online at www.TreasuryDirect.com
    5. Interest Rates Declared Twice Per Year: Every May 1st and November 1st, interest rates are declared, and your I-Bonds earn that declared and guaranteed interest rate for the next 6 months. 
    6. State Income Tax-Free:  I-Bond interest is protected by N.Y. State or your state of residence; hence, I-Bonds are state tax-free!
    7. Matures in 30 Years:  You can keep your money earning strong interest in your I-Bond account up to its maturity rate in 30 years.

    One of the reasons why I know so much about Inflation Bonds is because I purchased a significant amount of I-Bonds myself from the U.S. Treasury direct internet account this April.  This was after they announced the May 1st rates would be 7.11% from May 1st, 2022 to November 1st, 2022.

    A good advisor will ALWAYS look at the pros and cons when evaluating investment alternatives.  If you are looking to keep your I-Bond for over 5 years, there is NO drawback regarding liquidity.

    To explain, I will compare the withdrawal penalties/liquidity of I-Bonds vs. CDs, also known as Certificates of Deposit or Certificates of Disappointment in some circles.

    Year               I-Bonds                                 Bank 7-Year CD

    1                     Zero withdrawal 1-year interest penalty

    2-5                  3 mth interest penalty 1-year interest penalty

    6-7                  100% with no penalty 1-year interest penalty

    As you can see, as far as liquidity is concerned, I-Bonds compare favorably with bank CDs.  In case you were wondering, the current I-Bond interest rate is 9.62% which is guaranteed until the end of October 2022, before the rate changes again this November 1st!

    It is important to strategize with your advisors during these uncertain times of rampant inflation and a choppy stock market.  There are loopholes to being able to contribute more than that $10,000 per year from the treasury.  If you are interested in learning more, feel free to reach out to me at Rob@InsuranceDoctor.us.

  • Inflation & Shrinkflation!

    Inflation & Shrinkflation!

    We just broke an all-time USA record!  Unfortunately, it was a record for the national average for a gallon of gas breaking $5 for the first time ever last Saturday.  The price at the pump was up 30 cents over the last 3 days and increased $2.04/gal from 12 months ago.  According to Opis, a company that tracks gas prices for AAA (the American Association of Automobiles), Monday was the 16th straight day gas prices have increased.  Distillate fuel inventories, which include diesel, are a whopping 24% below our five-year average.

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

    As you have probably noticed, it is NOT just gas prices, as the prices of many other goods and services are on the rise.  The May 2022 CPI (Consumer Price Index) reports were just released, and it rose 8.6% over May of 2021, a 40-year high.  The CPI measures the cost of goods and services over time. 

    You might be asking yourself, “how did this happen” and “what does this all mean for me?”  Good questions!  This means if you are on a fixed income or salary, your money will not go nearly as far during these times of rampant inflation. 

    How did this happen?  I will give six reasons for the current gas quandary we are in, which I predict will go up another $1 per gallon over the next 30-90 days. 

    The following are 6 reasons for our current gas predicament:

    1. The Russian Invasion of Ukraine:  This sudden invasion with no warning dramatically decreased the amount of oil and gas available due to the NATO’s (North Atlantic Treaty Organization) immediate sanctions on Russian energy exports.
    2. A Shortage of Refineries to Convert Light Crude Oil to Gas, Diesel Fuel and Jet Fuel:  Nobody is talking about the high number of refineries that shut down during Covid-19 in 2020 and 2021.  If you remember, in the beginning of this pandemic, few people were driving; hence, demand shrunk almost overnight, causing many refineries to shut down. 
    3. The Shutdown of the Keystone Pipeline: This was the first major move of the Biden Administration as the Keystone Pipeline was 1-2 years away from completion.  This would have given us more control and significantly more reserves to stockpile for the exact situation we now find ourselves in.  
    4. Releasing Reserves Was a Band-Aid:  In an effort to reduce prices, we released significant reserves, which did not resolve the situation.
    5. Shipping Conglomerates Raised Prices:  When gas and oil demand goes up, so do the prices, and shippers have taken full advantage of the current situation.
    6. Summer Vacation Time:  Many Americans have been couped up for over 2 years and are taking that much-needed vacation or two this summer, despite the high gas prices.  This higher summer demand will push up gas and oil prices (Crude Oil Barrel is now over $120 from $100 a month ago) even further. This is why I am predicting another $1 increase over the summer.  I hope I am wrong!

    The combination of less refining capabilities and increased summer travel have exacerbated this imbalance between oil and gas supply and demand.  This causes major ripple effects.  Consider that as of 2019, the United States trucking industry has been responsible for transporting 70% of ALL goods in the USA.  Higher diesel gas and oil prices mean higher trucking costs, which lead to higher supermarket prices and airfares!

    Companies know that Americans are watching prices closely and have resorted to “sneaky measures” in my opinion, called “Shrinkflation!”  In economics, Shrinkflation is known as the process of items shrinking in size or quality, while their prices remain the same.  It is important to me that my “Financial Wave” column readers stay educated and ahead of the curve reducing your expenses by being smarter than non-readers!

    As per the NY Post, 5 Current Examples of Shrinkflation Include, but are Not Limited to:

    1. Gatorade is phasing out 32-ounce bottles in favor of taller and thinner 28-ounce bottles sold for the same price.
    2. Small Kleenex Boxes now have 60 tissues instead of 65.
    3. Chobani Flips Yogurts have shrunk to 4.5 ounces from 5.3 ounces.
    4. Cottonelle Ultra Clean Care toilet paper is down from 340 sheets to 312 sheets. 
    5. Folgers coffee downsized its 51-ounce container to 43.5 ounces but, still states it makes up to 400 cups.

    My takeaway is that it is important to keep track of trends and try to build a habit of reading and comparing labels and prices both for value and health purposes.  With all smartphones having a calculator, it doesn’t take long to calculate a cost per ounce even while at the supermarket or at home comparing prices to save big $$$.

    Do you have any additional examples of shrinkflation?  Feel free to email me at Rob@InsuranceDoctor.us.

  • Take the Quiz: Is Estate Planning ONLY for the Rich?

    Take the Quiz: Is Estate Planning ONLY for the Rich?

    The length and intensity of this pandemic have made many of us more introspective.  Covid-19 has put a spotlight on our mortality.  One of the few positives of this Covid Era is that people are now more comfortable talking about their life and death with others.  Many of those with dependents worry about what would happen if they were taken prematurely by the Coronavirus.

    There is a misconception that Estate Planning is only for the rich.  If you have possessions, you have an estate!  Their orderly care during your lifetime is referred to as Financial Management.  Their disposition after your lifetime is referred to as your Estate Settlement.  Deciding in advance how your estate will be disbursed is called Estate Planning.  Estate Planning is that simple.

    5 of the biggest mistakes I have seen include:

    1. Thinking Estate Planning is Only for the Wealthy:  One school of thought says the more modest your estate, the greater your need to arrange for its careful handling and disposition, to stretch it further and help those closest to you.
    2. Thinking that New York State Laws Will Suffice:  Leaving matters up to the state can be dangerous, short-sighted, and COSTLY!
    3. Not Making a List of Assets:  Making a list of your possessions in writing is the first step toward developing a cohesive plan for distribution.  This is referred to as an “Estate Inventory” or an “Estate Directory,” helping your beneficiaries by listing your assets and where to find important documents, etc.
    4. Not Forming Your Estate Team of Advisors:  After drafting your list of assets, the next step toward Estate Planning is to assemble and confer with a team of advisors.  This team should include a trusted estate or elder law attorney, an insurance advisor and/or financial planner, and a tax professional. 
    5. Thinking a “Will” is the way, or not having a Will at All:  According to legal zoom, less than 50% of American adults have a written will.  These numbers were even lower before the pandemic.

    Having assets go through your will is the worst way to distribute your assets!  The best way is to have designated beneficiaries for each of your assets.   This is where valuable tools such as life insurance, annuities, and trusts come into play.  One of the most important qualities of life insurance and annuities are that they have specified beneficiaries.  They also bypass probate, and court fees and are protected from lawsuit creditors. 

    Probate is the process of “Proving Your Will,” processed by the courts.  It is a slow, lengthy and costly procedure.  Also, it is not a private matter, meaning your probated assets can be viewed by anyone as public record.  After your passing, the nosey neighbor can legally look up your assets that passed through your will!

    As an advisor, I cannot over emphasize how important it is to plan your estate.  You can leave a planned legacy (even if it is modest) or an unplanned mess that your beneficiaries will need to sort out; the choice is yours!

    Take this quiz below and let me know how you do.  Of course, please consult your advisors before making any changes to your assets.  Feel free to reach out to me at Rob@InsuranceDoctor.us.

    1. Estate Planning is:

    A. Only for the rich 

    B. Vital for anyone with assets

    C. required by law

    1. The First Step of Every Estate Plan is:

    A. Prepare a List of Personal Inventory

    B. Draft a Will

    C. Make a list of Insurance Policies

    1. Estate Planning Experts Include:

    A. Actuaries

    B. IRS Agents

    C. Life Insurance Advisors

    1. Experts Say the More Modest Your Estate:

    A. The Greater the Expenses

    B. The Shorter the Will

    C. The Greater the Need for Careful Disposition

    1. Good Estate Planning Involves:

    A. Relying on Do-It-Yourself On-Line Forms

    B. Owning Sufficient Assets

    C. Financial Management During Your Lifetime

    Answers: 1. B  2. A  3. C  4. C  5. C

  • Travel Insurance?

    Travel Insurance?

                                

    The summer travel season kicked off this past Memorial Day weekend!  Over 3 million Americans planned to travel by air, besting predictions by the Federal Aviation Administration!

    Many Americans are couped up and feeling the need to take a break and catch up on missed travel opportunities this summer.  Some are calling this the season of “Revenge Travel!” 

    International travel has become riskier, as there are more variables such as testing Covid-19 positive and being mandated to quarantine in a foreign country well past your intended duration of stay.  For this reason, it is critical to explore travel insurance. 

    There are many different variations of travel insurance policies.  From family vacations to extreme sports, to business travel, travel insurance policies provide travelers with peace of mind knowing they have an extra layer of protection from unforeseen circumstances during these tumultuous times!

    One thing about travel and insurance is that every situation is different and unique.  Regular “Financial Wave” readers might remember I wrote a piece on this in the beginning of this year.

    There are so many variables and questions to ask yourself, such as:

    1. What does my current health insurance cover?
    2. Will there be dangerous risks?
    3. What does my credit card cover?
    4. What about my pre-existing conditions?
    5. What about my medicare supplement or Medigap policy?
    6. Should I protect myself more now since I am older?
    7. Can I afford to self-insure this risk?

    I decided to do a “deeper dive” into some of these important questions and interviewed Jerry Gonzalez, President of Dugan and Gonzalez Insurance, located in Ridgewood, Queens.

    Hi Jerry, “my readers have questions about travel insurance during these uncertain times as protection is more important now than ever”. 

                Robert:  1. Jerry, what type of protection does my current health insurance policy provide me?

                Jerry:  First and foremost, always call and ask your broker or insurance carrier.  Changes are made to plans all the time, so what was once covered may not be covered now.  How you obtain insurance coverage has an impact on coverage extended to you.  Individual plans or Affordable Care Act exchange-based plans usually do NOT cover these types of claims!

    Employer-based group plans usually do offer emergency coverage outside the USA, though the challenge doesn’t end there.  The foreign provider will expect payment upfront before services are rendered.  The coverage extended to you only provides reimbursement AFTER the claim is submitted, so the question you must ask yourself is, “Do I have access to enough funds to cover the cost of a medical emergency?”

    Robert: 2. What about my Medicare or Medigap supplement policy? 

    Jerry: Medicare supplement plans will cover up to 60 days of travel, up to $50,000 on your policy.  Medicare Advantage usually does NOT offer this coverage.  When coverage is available it is offered on a reimbursement basis once the claim is submitted.  This brings us back to the original question; “Do I have access to enough funds to cover the cost of a medical emergency?”

    Robert: 3.  What about if I take dangerous risks?

    Jerry:  When you are traveling and participating in extreme sports or high-risk activities, I would suggest looking into your coverage closely.  Ask questions about limits of the policy.  If you are working with a broker, outline the activities you plan to participate in making sure your coverage will cover those types of injuries.  There are policies designed specifically to handle emergency situations with concierge services to communicate with providers about coverage and payment.

    Robert: 4. What about policy pre-existing conditions?

    Jerry: Pre-existing conditions, depending on the policy, may present a challenge.  There are certain insurance carriers that underwrite the policy that may cover that condition for an additional premium, exclude the condition, or add a waiting period on covering that condition.  There are others that may provide a guaranteed issue policy and cover that regardless.  If you are concerned about a pre-existing condition, disclose it to the broker assisting you with the policy!

    Robert: 5.  Do I need to buy travel or cancellation insurance?

    Jerry: I would suggest that you do!  For an overseas trip, in this Covid-19 environment, I would say it is important.  For medical coverage on these policies, it is usually offered, and it is varied.  There may be different limits and conditions.  Usually, these policies are offered on a guaranteed-issue basis within a specified period, so they will usually cover pre-existing conditions.  You may have concerns about how they cover claims (reimbursement basis) and policy limits (dollar amounts).  I suggest obtaining a copy of the policy offered and submitting it to your broker for discussion. 

    It is better to be safe than sorry during these times of uncertainty!

  • Measure Would Cap Insured Out-of-Pocket Cost of Insulin at $35

    Measure Would Cap Insured Out-of-Pocket Cost of Insulin at $35

    The U.S. House of Representatives has passed legislation that would cap the out-of-pocket cost of insulin at $35 a month for people with a group or private health insurance.

    While the measure still must pass a vote in the Senate, it has broad backing after the cost of insulin has skyrocketed in recent years. People who formerly paid less than $100 a month for the vital medication are sometimes paying more than $1,000, depending on their health insurance coverage.

    More than 37 million Americans have diabetes, and this legislation could be a game-changer for the estimated 7 million who must take insulin to control their condition.

    In the past decade, the cost of insulin has tripled in the United States, with average out-of-pocket costs rising to about $666 a month. Some people need specific brands and can pay more than $1,000 a month for their brand.

    For example, David Tridgell, a Minneapolis endocrinologist, wrote an op-ed in the Washington Post citing the costs typical diabetics face:

    • Patients with Type 1 diabetes tend to use two or three vials of insulin per month. At the current cost of one vial of Humalog 50/50, these patients would spend $780 to $1,170 on their insulin every month.
    • Type 2 diabetes patients sometimes need six or more vials a month, which would run up the costs to $2,341 or more every month.

    Because of the soaring costs, many people report reducing dosages or rationing to make their insulin last longer.

                Diabetes can be especially costly for individuals enrolled in high-deductible health plans, in which enrollees must pay the list price for their insulin until their deductible is met. This could mean thousands of dollars out of pocket before the insurer will cover the drug.  Diabetes can lead to other serious health complications, including kidney failure, heart disease, and loss of vision.

    How it would work

    HR 6833 would bar private health insurers, health plans, and self-insured employers from applying a deductible on insulin and require that diabetics pay no more than $35 or the amount equal to 25% of the negotiated price of the selected insulin product, whichever is lower.

    For no more than $35 a month, the Affordable Insulin Now Act would require private group or individual plans to cover both vial and pen dosage forms and any of the following insulin types:

    • Rapid-Acting
    • Short-Acting
    • Intermediate-Acting, and
    • Long-Acting

    Medicare Part D plans, Medicare stand-alone drug plans and Medicare Advantage drug plans would be required to charge no more than $35 for whichever insulin products they cover in 2023 and 2024, and for all insulin products beginning in 2025.

    HR 6833 passed on a vote of 232 to 193, with 12 Republican representatives voting with the Democrats. The measure has been sent to the Senate.  If it passes the Senate and is signed into law, it will take effect in 2023.

    It is critical to take your monthly medications into account when selecting your health insurance.  The “NET Cost” for health insurance is the monthly premium plus your monthly out-of-pocket cost for medications. 

    The fallacy for business owners is that you cannot change your health insurance policy until the end of the year during open enrollment or your plan renewal.  The facts are that you can switch your health insurance plan anytime provided you change insurance carriers!

    If you own a business owner and are unhappy with your health insurance or made a mistake in December, feel free to reach out to us at Rob@InsuranceDoctor.us.