The Insurance Doctor

Category: coronavirus

  • Covid Briefing #21

    Covid Briefing #21

    There is an old saying, “Ignorance is Bliss!”  My new saying during this Covid-19 era is “Ignorance is Super-Expensive!”  In my 30-year career, I have never seen more advisor ignorance and malpractice.  Keep this in consideration if this is the first you are hearing about this.

    There have been MAJOR CHANGES in tax deadlines and proposed changes in tax, gifting, and estate planning rules, proposed on March 29th by Bernie Sanders, which I will review below.  My “Elite 8” list of changes to be concerned about are:

    1. The Federal CARES Act One Year Hiatus on Required Withdrawals from IRA’s and Most 401k’s is Over in 2021:  This means the RMD (required minimum distribution) must be taken in 2021.  The amount is based on the age of the account holder.  For example, a 72-year-old with an $100,000 IRA must withdraw $3,906 this year.  A 75-year-old is required to withdraw $4,367 this year. 
    2. Obamacare Health Insurance Exchange Enrollment Date Extended Again: This means the health insurance open-enrollment period now is extended to Sunday, August 15th for those individuals who want to enroll.
    3. The Federal and New York State Income Tax Return Deadline was Extended: These 2 deadlines were extended from April 15th to Monday, May 17th. 
    4. Stimulus Payments Were Deemed Not Taxable: This is major news for Americans who have received one or more stimulus payments.  They are technically considered an advance on a tax credit known as The Recovery Rebate Credit.
    5. What Happens if You Missed a Stimulus Payment? You can recover it through the Recovery Rebate Credit when filing your 2020 tax return.  It can be found on line 30 of Form 1040 or 1040-SR.  Consult with your CPA or tax advisor on this.
    6. The PPP (Paycheck Protection Program) Application Deadline Extended: Eligible business owners may apply for needed funds through Memorial Day, Monday, May 31st.  For questions regarding the PPP, email me at Rob@InsuranceDoctor.us.  We can assist and connect you to banks who want to help at no cost for my Wave readers!
    7. The CDC (Centers for Disease Control) Extended the Eviction Moratorium Date: The nationwide ban on certain residential evictions was extended to at least Wednesday, June 30th!
    8. On March 25th, 2021, Senator Bernie Sanders Introduced the “For the 99.5 Percent Act”: These sweeping changes, if enacted into law, would change the way families pass money down to their children, and dramatically increase the taxes children must pay within 9 months from their parents’ death!  Proposed changes include but are not limited to: A. Reducing the current $15,000/ per person unlimited gift tax exclusion to a maximum of $20,000 per year in total.  B. Reducing the current $11,700,000 per person estate tax exclusion to $3,500,000 per person. C. Limiting lifetime gifts to $1,000,000 per person in total.

    Are you confused yet?  There has never been a more important time to rely on your advisors.  Reach out now to your CPA, Attorneys, Insurance Broker, Investment Advisor and Financial Planner to review these monumental changes.  This is what you pay them for, and your money-moves now will have an impact on your family for many years to come!  Feel free to reach out to me for guidance at Rob@InsuranceDoctor.us.

    Be Positive, Test Negative and Keep the Faith!

  • The American Rescue Plan

    The American Rescue Plan

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

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

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

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

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

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

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

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

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

    Stay Positive, Test Negative and Keep the Faith!

  • 5 Financial Moves to Make Now During COVID-19

    You do not need me to tell you these are crazy times!  They will be talking about 2020 for many years to come.  Although the last 6 COVID-19 pandemic-months have been long; in a way, blink your eyes and it is already the 4th quarter of 2020.

                What does this mean financially?  There are MAJOR OPPORTUNITIES AVAILABLE for ALL American’s to set up a better financial future NOW! Some of these opportunities need to be taken advantage of NOW, and over the next 60 days, since many laws and what I call “Covid-19 Special Rules” will be changing “sun-setting” on 12/31/2020. 

                These times are unique as we are in an historically low interest rate environment with low tax rates and a stock market near record highs!  In 2020, a married couple “filing jointly” can earn $325,000 (combined) and only be in the 24% tax bracket.  Our current level of spending is unsustainable, and most experts agree that taxes will be raised!

    September 30th closed our “fiscal year,” and our federal debt exceeds $23.4 Trillion.  It is estimated that this could grow another $13 Trillion by 2028.  Tax rates will likely go up and we/you can stay a step ahead by strongly considering these 5 financial moves NOW!

    1. Refinance Your Debt: Whether it is a home mortgage, business loan, and/or a student loan, there has never been a better time to refinance.  If you or your children have any loans over 4%, consider refinancing now.  Yes, interest rates should stay low next year; however, banks want to close new deals now to boost their 2020 year-end revenues. 
    2. Take Some Profit Off the Table:  Some advisors call this “tax harvesting.”  Remember, gains are only “paper gains” until you sell, and they are sitting in cash.  If you have doubled your money in an account, why not reposition half in cash and let the rest ride “on the house” so to speak?  With the upcoming election on the horizon, choppy waters lie ahead.  Double-check this with your investment professional and CPA.
    3. Consider Doing A Roth IRA Conversion: If you convert all or a portion of your IRA to a “ROTH IRA” in 2020, you are permitted to spread out the current tax burden over the next 3 years, your choice as to what percentage to declare each year.  Many people have less income this year, so you would be paying less tax this year in a lower tax bracket in 2020.  What is a little more pain for a big long-term gain?
    4. Consider Buying Life Insurance Now:  Consider buying before premiums go up (due to Covid-19 death rates) as many life-insurance companies have filed for rate increases with the state.  The NEW life insurance policies have “chronic Illness” riders that function similar to long-term care policies, allowing policyholders to tap into their death benefit while living, to pay current “qualified” ongoing chronic health issues and bills.  They are called “living benefits” which most OLD policies do not have.  There are 2 companies in New York State that include these critical riders FOR FREE on inexpensive term insurance policies which can now run to age 80.  Current cash-value life policies can be “rolled-over” into a new life insurance policy.  This is called a 1035 exchange, similar to a 1031 exchange in real estate.
    5. Revisit Your IRA’s, Trusts & Estate Plans NOW!: There are people sitting on their IRA’s, 401K’s (which can be converted to a self-directed IRA) thinking that they will pass the IRA down to multiple generations just like their parents did. 

    THINK AGAIN!  Beginning in the 2020 tax year, The 2020 SECURE ACT (Setting Every Community Up for Retirement Enhancement Act) made some positive changes such as the ability to make IRA contributions after age 70.5 (if you are still earning income) and deferring RMD’s (required minimum distributions) to age 72. 

    The 2020 “Secure Act” has eliminated the “Stretch Ira” also known as “Super Ira” or “Inherited Ira.”  Spouses can inherit this money then their heirs MUST TAKE IT ALL OVER 10 YEARS!  These changes will cost children and grandchildren dearly.  It also makes it a better idea to consider taking the IRA money now (with low current tax rates) and buying life insurance which goes TAX-FREE and LUMP SUM to named beneficiaries while bypassing probate.

    These tax changes can also render existing “Trusts” obsolete, so they should ALL be reviewed.   In addition, ALL existing wills and beneficiaries should be updated.  If this is the first you are hearing about the SECURE Act, perhaps it is time to change advisors.

    Feel Free to reach out to me at Rob@InsuranceDoctor.us for more information and to be added to our e-newsletter and briefing email list.

    Stay Safe and KEEP THE FAITH!

  • The “Nobody CARES Act”

    The “Nobody CARES Act”

                Reflecting back on my childhood, the week after Labor Day was usually a time when I was feeling a range of emotions from excitement (to see many of my school friends whom I missed over the summer) to some apprehension about the new school year.  This year, the vibe for both students and parents is different because of COVID-19.

                When “The CARES Act” was enacted in late March everybody knew the $600/week unemployment bonus was expiring on July 31, 2020.  If politics were like golf, originally (in July) the Senate was playing for the “COVID” 19th hole, whereas the House of Representatives was playing for the next round.  The Senate said they would be willing to address the unemployment issue by itself, while the House of Representatives was holding out for a “new comprehensive package.” 

    RESULTS: Both parties went on vacation for the first 2 weeks of August.  President Trump then signed an executive order to cut these benefits in half ($300/week) with the states (most of whom are broke) expected to kick in an additional $100.  For New York State, Governor Cuomo’s office calculated that bill would add an additional $4.2 Billion to the $30 Billion we are already in the hole.  It is unlikely that most people will receive the extra $100 any time soon.  As of this writing, it is not clear if anyone has received the said $300/week which should be retroactive to August 1st.

                When the President made comments about the United States Post Office, the House of Representatives reconvened (and flip-flopped) that weekend to address just that Post Office issue, leaving The NOBODY “CARES ACT” dormant through the month of August.  Does this mean that “their votes” are more important than the people and families they represent?  It is time the leaders who represent us put our needs before their own!

                In addition, the $1,200 stipend and The Triple P (Payroll Protection Program) money from the NOBODY “CARES ACT” has mostly dried up (it ended in August) as business owners have been paralyzed due to conflicting rules and uncertainty as to when and how they can reopen.  To complicate matters, the Federal Government is facing a shutdown on September 30th and the USA’s cumulative debt is on schedule to eclipse the size of our economy next year.  We would be joining Japan, Italy, and Greece with debts larger than their economy.  It’s expected that U.S. debt will be equal to 98% of the nation’s Gross Domestic Product (GDP) by year-end. 

                The restaurant industry in New York City has felt the brunt of these political decisions.  Queens restaurants, in particular, have been hamstrung by this as Rockaway residents can drive 20 minutes and be on Long Island to enjoy alcohol and indoor dining.  New York City and New York State have had the lowest COVID-19 positivity rates (by the percentage of tests) in the country for some time now.  Alcohol (which I call truth-serum) has been a big factor in COVID-19 spiking, especially in colleges.  Why not allow city restaurants to reopen first with no alcohol?  Malls and Casinos are now opening (at 50% and 25% capacity, respectively).  The current explanation for not allowing city restaurants to open for indoor dining is because the SLA (State Liquor Authority) and the New York State “Task Force” does not have enough employees to inspect the restaurants.  Inspections could be easier (and take less time) if this short-term compromise is proposed.  Instead, lawsuits will bring longer delays before the cold weather is upon us.

                All these economic decisions have ripple effects and are interrelated.  Take the “school dilemma” for example.  What is now happening is that child-care needs are affecting jobs.  Families either cannot find or afford home care for stay-at-home students.  This is causing secondary wage earners (the majority are women) to give up their jobs even though they are in their prime income-earning years (ages 25-54).  For some households, that $300+ per week check could make the difference and save those jobs. 

                It is not all “gloom and doom!”  Although conducting business will be difficult this fall in many professions, there are planning strategies available to us in order to overcome these roadblocks.  Stay tuned to this column for more creative ideas on how to do so and KEEP THE FAITH! Feel free to reach out to me at Rob@InsuranceDoctor.us to continue these discussions, for a personal review, or if there are topics you want to learn about, do not hesitate to contact me!

    Rob Intelisano
    The Insurance Doctor

  • COVID-19: 10 Unexpected Positives

    COVID-19: 10 Unexpected Positives

    I probably watch too much news these days.  It’s not easy to find positive articles.  People often say, “when the dust settles, I’m going to do this or that.” The dust has begun to settle.   What are YOU doing? 

    The other day, I texted one of my Rockaway clients to check-in and see how he and his wife were doing.  My team had been able to save him significant money on his home and auto policy premiums. I was also able to creatively upgrade his health insurance policy, by utilizing a side business he had set up.  He had a major issue with his roof caving in, so I wanted to follow-up on their safety, as well as how the claim was being handled by UPC. They were satisfied with the claim process and said “it was fair.” 

    An avid runner, I asked him what he’s noticed while running since the COVID-19 era began in mid -March.  This turned into an interesting conversation.  We both agreed there is too much negativity going on right now.  We came up with the following list of Covid-19 unforeseen positives:

    1. Simplifies the day: With less activities on the daily schedule, it allows people to be more present and pace themselves.
    2. Getting to know the family better: Families are having more focused and meaningful discussions.  Not always positive, lol.
    3. Less time spent on events: He prefers the drive-by celebrations showing respect, without taking up a large portion of the day.  It removes the uncertainty of deciding how long to stay at an event, without offending people by leaving early.
    4. Much less junk mail:  Have you noticed how little junk email and regular junk mail you are now receiving?  On one occasion last year I received  over 50 emails overnight.  Now I’m averaging less than 10, saving time.
    5. Saving money by eating home: Personally, I’m a foodie and really miss dine-in restaurants.  That being said, money has been saved.  Credit card bills going down. 
    6. Helps focus on a better diet: This is an opportunity to cook more healthy food at home, and to avoid fried food.
    7. Increases gratitude: These are introspective times when we realize that sometimes we take things for granted.
    8. Time for hobbies and self-improvement:  Whether it’s reading books, learning a language or trying something new, these are good times to explore your interests.
    9. Improves the environment: With less automobile traffic, he’s noticed cleaner air and in Riis Park more wildlife.  For the first time he’s seen snakes (non-poisonous) and rabbits on his running trail.
    10. Amplifies your passions: These are times that you miss things you Love.  For me it’s travel, writing, sports and my quest for the best pizza!

    What are YOUR passions? To continue these discussions, feel free to reach out to me at Rob@InsuranceDoctor.us

    Stay Safe and remember to wear your mask! 

  • Thinking Clearly in the Middle of Chaos

    Thinking Clearly in the Middle of Chaos

    You don’t need me to tell you that this country is upside down right now.  There has never been a more important time to think clearly and adapt to the current situation.  With 40 million unemployed and another 10 million not seeking work, many are in a “financial” survival mode.  One in three Americans have yet to receive their unemployment checks!  Most advisors suggest keeping an “emergency fund” of 6 months income.  Even for those who have heeded the advice, the six-month fund is dwindling as New York City has been slow to reopen.

    The way unemployment is structured, with the Federal Government adding $600/week in addition to the state unemployment benefits, can be a deterrent to employees returning to work.  In New York State, the maximum is $504/week plus the $600= $1,104/week.  This could represent a raise for many, so why go back to work when you can stay home and possibly earn more money?  New Jersey caps out at $681/week, Connecticut at $649.  Florida has the lowest cap at $275; however, they have no city or state income tax.  The highest cap is Massachusetts, which has a range of $769-$1,220 depending upon the eligibility.  These numbers don’t mesh well with the Paycheck Protection Program (The Triple P), because business owners have to spend the money now over the next 8 weeks when their employees refuse to return to work.

    The public knows this “generosity” won’t last forever, so many are tightening up on their spending.  If you’re on a salary, you can’t increase revenues, only decrease expenses.  Here are a few tips to reduce expenses:

    1. Whole Life Insurance: If you have a traditional dividend-paying life insurance policy (the older the better), consider changing your dividend option to “reduce premiums.”  For example, you have an old $50,000 policy, the premium is $1,000/year and your dividend is currently $600.  You can change the $600 dividend to “reduce the premium” and now you would only have to pay the $400 difference, saving you 60%.
    2. Auto Insurance: Since many are self-quarantining, auto insurers are reducing prices.  Some are giving credits.  It’s a good time to shop the auto insurance market.
    3. Life Insurance Settlements: During the Covid-19 pandemic, “Life Insurance Settlements” can be a lifeline for seniors who could be struggling financially, and who own a life insurance policy in danger of lapsing.  These policies can hold significant re-sale value.  We have been able to sell policies with zero cash value for 20%-30% of the death benefit.  It’s important for seniors to realize they can sell their policy for a lump-sum of cash, instead of having to continue to pay premiums. We have 23 Funders who bid against each other in an auction, which ensures our clients will get the maximum lump-sum offer.

    Feel free to reach out to me to continue these conversations at Rob@InsuranceDoctor.us or www.InsuranceDoctor.us and complete our simple contact e-form.

    Be Safe and Wash those Hands!

  • Phase One Reopening

    Phase One Reopening

    As you probably already know, other than the 5 boroughs, New York State has reopened this week.  What does this mean for Rockaway and Queens?

    The way business owners decide to spend their CARES Act stimulus package Payroll Protection Program (AKA the Triple PPP) money, will have a direct effect on our economy and the unemployment rate through this summer and probably the rest of the calendar year. 

    In Rockaway, it will be interesting to see which restaurants can adapt first to efficient takeout and then when able to fully open (see the Phases below). 

    Earlier this week, I was listening to the Jim Kerr Q104.3 Morning Rock-n-Roll Show and Shelley Sunstein (Jim’s sidekick who can cook) mentioned that she’s accustomed to cooking at home now and will start ordering takeout from restaurants with food she’s not capable of cooking at home.  If this theory is correct, then restaurants like Uma’s and Kimo’s should do well right off their reopening.

    Although I have had my issues with Governor Cuomo (like his ego-based forcing out Rockstar Andy Byford from the MTA); he has done an effective job on a daily basis communicating Covid-19 expectations to lower death rates currently under 100/day in New York State.  By tying performance-based Covid-19 goals to open regions, he helped people focus on Phase One “TEAM GOALS.”

    Phase One:

    • Construction
    • Agriculture, Forestry, Fishing and Hunting
    • Retail – (Limited to curbside or in-store pickup or drop off)
    • Manufacturing
    • Wholesale Trade

    Phase Two:

    • Professional Services
    • Retail
    • Administrative Support
    • Real Estate / Rental & Leasing

    Phase Three:

    • Restaurants / Food Services

    Phase Four:

    • Arts / Entertainment / Recreation
    • Education

    During these times there are opportunities everywhere for those seeking them.  I’ve been saying since this outbreak that EVERYTHING IS NEGOTIABLE during the Covid-19 era. 

    Earlier in the week I sat on a great Zoom webinar presentation given by a HIGH-LEVEL CONCIERGE TRAVEL AGENT.  I asked a question about getting a full refund on my flights to Buffalo (to see the Rolling Stones show now postponed) next week and she said the airlines are only giving credits for 12-24 months.  This motivated me to call Jet Blue immediately after the webinar ended.  After an hour wait, I calmly stated my position to the Jet Blue representative and he gave me a full refund with no arguments.  I couldn’t believe it!  Jet Blue had inundated me with emails and changed my flights about 5 times and asked for a reply to confirm, which I never did.  Turns out, their rule is if the flight is changed more than 2 hours from the original itinerary, then you are entitled to full refund!  Who knew?

    Try it yourself and KEEP THE FAITH!

    -Robert

  • 10 Smart Things to do at Home during CV-19

    10 Smart Things to do at Home during CV-19

         The question everyone is asking is; how can I maximize my time at home during this temporary COVID-19 “new normal” ? Try a few of these options:

    1. Take the Online New York State defensive driving course: You get a 10% discount for three years on your auto insurance premiums.  Groupon has it for $19.   Use their online coupon code “SALE3”.  It gets you 20% off, bringing the cost down to $15.20.  You can start it and stop it and have 30 days to finish the course.  AAA, AARP, and a variety of others offer the same course at different prices.
    2. Learn a new language: Babbel’s FREE registration gets you the first lesson on every course for free.  If you like it, you can register for $12.95 for one month or a 3-month plan for $26.85.  Further discounts available for 6 and 12-month memberships.
    3. Organize your finances:  Scan statements digitally, set up hard copy binders, and/or order financial “accordion files” at Staples.com online.  They have pre-labeled auto insurance, mutual funds, and retirement tabs for you to file your hard-copy statements.
    4. Take on-line Zoom classes: Take a class on how to “Zoom” if you don’t know-how.  I took one last week myself and have started running my own Zoom meetings.  Set a goal of how many Zoom classes you take (or run) every week or month and watch your productivity increase dramatically!
    5. Improve your diet: It’s easy to slip into bad eating habits while comfort food is on the rise.  Remember, your diet starts at the supermarket or on-line ordering.  I find that buying fresh veggies forces me to eat them quickly before they go bad.  It’s cheaper to eat healthy which could prevent you from getting sick.
    6. Learn to cook new dishes: Refer to #5.  Every meal you cook is one less meal of take-out food.  I’m still a work in progress myself, lol. This helps both your body and wallet or purse.
    7. Try to exercise at least every other day: This will help your energy, cardiovascular fitness, and concentration while boosting your metabolism.  It’s a healthy part of any routine during this “COVID-Era”.
    8. Go through photos and make an album: Something that people say they’re going to do; however, they never do it.
    9. Positive letter and writing ‘thank you’ notes: You will be amazed at the response you get when writing letters and “thank you” letters to those that have helped you.  When is the last time you received a thank you or personal letter in the mail?  Try it and let me know what happens.
    10. Read positive books: I suggest choosing positive books at this time; self-help, business start-up, or whatever else you are passionate about.  These are good times for introspection.

  • 8 Health Benefits of Having a Dog During the COVID19 Crisis

    We love our dogs in the United States with almost 90 million nationwide. That means nearly one-half of households have a dog in their home.  Other than companionship, there are other advantages to having a dog in this Covid-19 new world.  For example:

    1. Safety & Security:  Dogs are another layer of security as barking dogs can keep burglars at bay.  Dogs can spot intruders well before we can.
    2. More Exercise: When owning a dog, you should be walking it 2-3 times/day.  Guess what?  You are exercising when walking your dog, and 30-45 minutes/day can do wonders for your health.
    3. Less Chance of Depression: Dog’s companionship has been known to help people diagnosed with clinical depression.  Caring for an animal can help relieve the symptoms of depression and make people feel more positive.
    4. Less Stress: Numerous studies have shown that dog owners have lower stress levels.  Engaging with your dog can reduce stress.
    5. Illness detection:  Dogs see the world through their keen sense of smell.  Some dogs can sense the onset of epileptic seizures or the presence of some types of cancer. 
    6. Increased Allergy Tolerance:  Children raised in homes with pets like a dog have a reduced chance of having allergies.  Growing up with a dog can boost immunity to pet allergies later in life.
    7. Boosted Brain Development:  Dogs boost brain development in children, along with emotional growth and connection to others.
    8. Stronger Heart: Studies have shown that petting a dog can lower your heart rate and male pet owners tend to have reduced rates of heart disease.  No wonder why dog adoptions are way up!  Enjoy!
  • 5 Reasons Why the PPP Frightens Banks

    5 Reasons Why the PPP Frightens Banks

    I have invested over 120 hours of research, participated & spoken in Zoom panels, and engaged with client strategy conversations on the PPP since Friday, March 27th- that is the same day the Payment Protection Program (PPP) was signed by President Trump.  The Triple P is a sweet deal for many struggling business owners; however, not so good for banks, here’s why:

    1. The loan rate is too low:  PPP loans will stay on the bank’s books at 1%, which is much less than their conventional loans.
    2. Astronomical default risk: So many people are already tapped out or about to be on empty so banks know many of these loans will default.
    3. Unfit system technology: Most banks are not set up system-wise for this technology, so there’s a mad scramble to set up systems/websites, whereas other institutions have the same platform already in daily use.  It’s expensive to build out an internet platform in 4 days.
    4. Margins are too low: Currently, the Federal Funds rate is 0.25% This is the rate banks lend to each other overnight.  The PPP is only 75 basis points higher, which leads to poor profit margins.
    5. Beholden to the Government: Banks are complaining about mixed messages from the Government and are dragging their feet until they receive more information and direction.

         If you are in desperate need of money now, I suggest going to the smallest local community bank, where you have an account (or open up a new account) in your area, as they have been the most aggressive.  Be Safe!