The Insurance Doctor

Category: Consultation

6 Tips to find the RIGHT insurance broker

One thing this pandemic has done is flush out poor advisors, as there is no hiding during Covid-19. CPAs, Attorneys, Insurance Advisors, Stockbrokers and Financial Planners should be well-aware of the latest Covid-19 updates, income tax and estate tax rule changes to properly advise their clientele.

I have been on many Zoom Panels, Seminars, Workshops, and Podcasts over the last 14 months, and it is disturbing how clueless many advisors are! I feel bad for those that are taking their advice.

Insurance brokers and agents are trusted with matching their clients with the most suitable life, health, homeowners, auto and business insurance policies.

Every insurance company has a specialty niche product and pricing sweet points, they are not all the same! It is important that your broker of choice is well-versed in policy differences from one company to another, and is informed of the latest news, trends, and new advanced products coming to market. Your broker should understand your needs and concerns and be capable of explaining your options in a simple and understandable fashion.

Follow these tips on what to look for in finding the right insurance broker or agent:

TIP 1: Knowledge and Experience: There is no substitute for experience. Look for brokers that have been in their field for a minimum of 5 years. The better ones will also have advanced planning designations (higher education) next to their names. Look for at least one of the following 3 designations: CLU (Chartered Life Underwriter) CFP (Certified Financial Planner) or CSA (Certified Senior Advisor). The more designations, the more educated and well-rounded your broker will be.

TIP 2: Independent Agents: The following may be counter intuitive. Brokers are in a better position to help you than “captive agents” thatIndependent only represent one company. Independent brokers represent you client, and offer numerous insurance policy options. They must be well-versed on all policies to find the best fit for you. Captive agents (i.e. Allstate, New York Life etc.) are employees of their respective companies. They usually offer proprietary products first to qualify for their company-sponsored trips and subsidized health insurance. Make sure your agent places your needs before their own!

TIP 3 Fee Structure: Most of the established independent brokers do not charge a fee for time or services. They receive compensation from whichever insurance company you decide to do business with. Beware of agents, planners and advisors that charge steep upfront consultation fees!

TIP 4 Get a Second Opinion: Most people are already working with an agent or broker. Do yourself a favor and get a second opinion using the tips given in this article. You will be surprised at what you can learn from a free consultation with an independent broker.

TIP 5 Due Diligence: Invest the time to call several brokers. Start a list and seek advice from friends, family, or colleagues that are satisfied with their broker. Check reviews on google business, the internet and gather as much information as possible.

TIP 6 Quality Service: Part of quality service is timely service. When you call around, make a note of how long the advisor takes to get back to you. Usually, like a first date, that first communication sets the tone for the relationship.

President Biden has outlined his proposals for sweeping income and estate tax changes. These proposals, if passed, can and will affect multiple generations of Americans going forward. Not knowing about these rules while advising clients is a form of advisor malpractice.

If these 6 tips fail, reach out to me at Rob@InsuranceDoctor.us!

May 17, 2021
5 Mistakes to Avoid When Applying for Your Student’s Financial Aid
FAFSA: The Free Application for Federal Student Aid. All students interested in financial aid (free endowment monies) for college will need to complete this form. Usually, the parents/guardians fill it out using their tax return.
1. Don’t include retirement assets on the FAFSA: The FAFSA doesn’t care how much you’ve got in your 401k/IRA/pension. They do ask about cash, savings and checking accounts to name a few items.
2. Don’t wait until your 2017 taxes are done to complete: Use estimated 2016 tax return numbers then adjust them later. This is one of the biggest mistakes as the FAFSA completion holds your place in line for free endowment money when the coffers are full! Complete it before the end of February then adjust it when your 2017 taxes are done. This is especially important if you file a filing extension.
3. Don’t forget to list the colleges: You can include up to 10 colleges your son/daughter has applied to. The federal processors will send the pertinent FAFSA info to the schools. You will need each college’s school code.
4. Don’t inflate your education: If both parents didn’t graduate from college, don’t list “college” as their/your highest education even if you completed a few years. Plenty of schools treat these applicants more favorably if they are considered “first-generation” college students.
5. Don’t assume you won’t qualify for financial aid because your house is too valuable: The FAFSA doesn’t care if you own a house*. They do ask about second homes and real estate investments.
Notes: One cannot receive endowment “free” money without first completing a FAFSA. If you apply to more than 10 schools you can go into FAFSA a week after completing, change some schools and they will receive the FAFSA info.

*Certain schools use the CSS (formula) profile whereby home equity and sibling assets will count against you.

**Contact Robert today for sound advice and strategies for completing the FAFSA and financing your child’s education.
August 15, 2017
5 Reasons 529 Plans are a Waste of Time

5 Reasons why 529’s are a waste of time

Unless you are getting other people like grandparents to contribute money to your child’s 529 they are a waste of time for the following reasons:

1. They reduce the amount of endowment “free” money students can qualify for: Ex. With $100,000 in a 529 the first $25,000/year is on you!

2. High fees, charges and broker commissions: Most 529’s have front or back end charges as well as annual fees regardless if it’s making money.

3. Exposure to stock market fluctuations: The market can go down 50% during your student’s high school senior year and the money is gone with no time to recover.

4. Limited fund and investment choices: Most states have only 1 fund family to choose from. If you choose a different fund family odds are you will lose your resident state’s income tax deduction.

5. What happens if your only child gets a scholarship?: All funds withdrawn in this scenario would incur a 10% withdrawal penalty.

There are several other options as to where to stash money and how to pay for college that won’t have market risk or adverse effects on potential scholarship money.

Contact Robert today for a better way to fund your child’s college education

July 18, 2017
7 Smart Money Marriage Tips

You just got married, but you may not have realized that your money did as well. One of you is a spender and one is a saver! How in the world will you make it work? Especially now that many people are getting married in their 30’s and 40’s for the first time, what should you be doing money wise? Here are 7 tips on money strategies for your new marriage.

1. Create Separate Accounts And One Joint Account:

To mingle or not to mingle your money is one of the most important decisions the two of you need to make regarding your finances. Having your own money that you can spend however you want can lessen arguments about money. We disagree that having separate joint accounts lessens the sense of unity in marriage and shows a lack of trust in one another.

2. Track How You Are Spending Money:

Tracking your spending is not a way to point fingers at one another as to who is spending what. Tracking your spending is not having someone looking over your shoulder every time you buy something. Tracking your spending is critical to being financially secure. Unless you know where your money is going, it is impossible to set up a budget and set financial goals you are both comfortable with.

3. Discuss Finances Together On A Regular Basis:

Sure, talking about money isn’t easy because money can symbolize different things to each partner. One may view money as security and the other as power. If the topic of debt, bills, savings, and goals makes one or both of you uncomfortable or defensive, seek the help of a financial counselor or planner. It is important that both of you know where you stand financially and have common financial goals.

4. Save 10% of Your Income:

Couples living month-to-month often rationalize that they just don’t have enough money to save. Make the decision to save at least 10% of your income. After saving enough cash as an emergency fund, invest in a retirement account. The earlier the two of you start saving money for your retirement years, the easier it will be have a retirement lifestyle that you both hope for.

5. Handle Debt As A Couple:

Make a plan to pay off existing debt. Drawing a line in the sand and saying that your spouse’s debt isn’t your problem is not going to work because even if the debt existed before you married, your credit rating can be negatively impacted as well as the bottom line of how much money the two of you are paying monthly in interest charges.

6. Decide On The Bill Paying Strategy:

Maybe you had a house and your partner had one as well. You were both used to paying your own bills. Now that you are living together and your bills are combined, get clear as a couple on who will pay what bill and which bank account the money is going to come out of each month. This will absolutely
reduce friction in your relationship over time by having clear expectations.

7. Don’t Keep Big Financial Secrets:

Not being honest about the cost of large financial purchases or keeping debts hidden is considered financial infidelity by many people. Such secrets can destroy your marriage.

THE CONTENT IS DEVELOPED FROM SOURCES BELIEVED TO BE PROVIDING ACCURATE INFORMATION. THE INFORMATION IN THIS MATERIAL IS NOT INTENDED AS TAX OR LEGAL ADVICE. IT MAY NOT BE USED FOR THE PURPOSE OF AVOIDING ANY FEDERAL TAX PENALTIES. PLEASE CONSULT LEGAL OR TAX PROFESSIONALS FOR SPECIFIC INFORMATION REGARDING YOUR INDIVIDUAL SITUATION. THIS MATERIAL WAS DEVELOPED AND PRODUCED BY HELLO MY NAME IS, LLC TO PROVIDE INFORMATION ON A TOPIC THAT MAY BE ON INTEREST. THE OPINIONS EXPRESSED AND MATERIAL PROVIDED ARE FOR GENERAL INFORMATION, AND SHOULD NOT BE CONSIDERED A SOLICITATION FOR THE PURCHASE OR SALE OF ANY SECURITY. COPYRIGHT 2014 HELLO MY NAME IS, LLC

April 12, 2017
4 Tips to Get Your Retirement on Track
Retirement. The vision of one’s non-working years is alluring but are you prepared? Put these four tips to get back on track for your retirement planning.
1. Figure out what you really need: This involves goal setting and thinking. Think about what percentage of your current income you need going forward. Also, build in vacation and bucket-list annual costs.
2. Take advantage of matching contributions: many employers will match your contributions up to a certain level. Find out your firm’s matching percentage and make sure to take advantage of this “free money”.
3. Think past your 401K: A 401k is a good start however you need to diversify your portfolio. Look to take advantage of tax-free and tax-deferred vehicles to save. Roth Ira, annuities, and cash value life insurance offer different and complimenting tax advantages.
4. Plan for the unexpected: Good planning is to keep 3-6 months of income in a liquid account for emergencies. Life’s events can be unpredictable like disability, job loss, hurricane or stock market crash to name a few.
Your actions today will impact the quality of your life in retirement. It’s always good to communicate retirement goals to family members and loved ones. In retirement, surprises are usually not good!

Get a free consultation today to get your retirement planning back on track!
January 26, 2017
5 Tips How to Get Free “Endowment” Money for College

86% of incoming college students take out student loans. Scary? Try this: the total of all college loans is $1 Trillion dollars…that’s right TRILLION; which is more than all of the credit card debt combined.

Most parents not in the know will steal from retirement to pay tuitions. Those ‘in the know’ understand that 95% of all “free money” comes from the schools themselves. Not scholarships, not loans but endowments from the actual college or university.

Here are 5 Tips most parents will never hear at their child’s College Planning Night:

Tip 1: Volunteer and do community service– schools are more apt to give money to the students that will likely donate back upon graduation. Good deeds ultimately do pay one back.

Tip 2: Apply to 10 or more schools and the competitors of the schools where your students want to go- the competition will drive up the scholarship awards as they see where you apply. If you only apply to one why should they increase their financial endowment when they’re the only game in town?

Tip 3: Don’t accept their initial offer-awards can always be negotiated higher, there are $Billions sitting in college endowment coffers. They won’t be offended and ultimately you and your student will benefit.

Tip 4: Hire a professional– we see parents spending thousands for tutors and SAT prep for students to get into top schools they can’t afford to send them to. While prepping for the SAT is important don’t overlook the importance of professional advise on what will be your largest investment second to the purchase of your home.

Tip 5: Apply to your student’s dream schools not just those you can afford. The answer is always ‘no’ unless you ask. Also some of the more desirable schools may have larger endowment funds possibly giving your student a larger award making them more affordable.

To learn how you can get proven college financial planning advice contact Robert here today.

April 9, 2015
The Best Pizza & Planning in NYC!

The best pizza in NYC resides outside of Manhattan and can be found in Brooklyn and Queens! The following list represents the best pizza places to do financial and insurance planning.

DiFara: in Brooklyn. Best designer pizza and best place to do your estate planning. Dom DeMarco can only make so many pies in a day, folks may not live to eat the pie by the time it comes out. When he passes, so does DiFara.

Rosa’s: metropolitan ave in queens. Best grandma’s slice and best place to do your life insurance planning.

L&B Spumoni Gardens: Brooklyn. Best Sicilian square slice and best place to review your auto insurance as it’s crazy outside with limited parking.

Newpark: Howard beach queens. Best traditional thin crust slice and best place to review your homeowners insurance as it’s in the middle of a residential area.

Lucali: Brooklyn. Best brick oven pies and best place to do your retirement income planning by reading the “pie charts”!

Nicks: Forest Hills, queens. Best gourmet-style thin-crust pizza with the best toppings. Order the “half and half” red and white pizza. Best place to review your health insurance as those toppings clog the arteries.

Roberta’s: Bushwick Brooklyn. Best wood-fired pie and best place to review your disability income insurance. Total hipster chaos outside, watch out crossing the street.

Let’s meet up for a slice and some planning! Call Rob at 917-359-3985 today or email Rob here.

March 12, 2015