The Insurance Doctor

Category: Planning

  • 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!

  • 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!

  • 5 Planning Issues for Same-Sex Couples

    5 Planning Issues for Same-Sex Couples

    Five Planning Issues Same-Sex Couples Should Discuss

    All couples in long-term relationships should discuss finances however gay and lesbian couples need to even more because of unclear and ever-changing rules.

    1. What is our current situation? Partners need to get on the same page as to their debt, how much and to whom do they owe money. How much do you spend and how much do they save?same sex couples, financial planning
    2. What does retirement look like? Both partners should go to socialsecurity.gov to see what type of benefits are available to them and based on ages when to elect income benefits to start.
    3. Should we get married? This is a critical decision. First take a look at wages earned. If both are high wage earners then they would be paying more taxes by remaining unmarried. Also if one partner has a college-bound student remaining unmarried is the better choice as the FAFSA (Free Application for Federal Student Aid) would only include one person’s wages.
    4. What happens to assets when we die? A will, power of attorney and health care proxy are recommended to give clear directives on the wishes of each partner. If unmarried with no will etc, the states laws of intestacy come into play and odds are a blood relative will inherit the estate.
    5. What happens if we break up? Unmarried same-sex couples in it for the long haul may want to draft a cohabitation agreement. Divorce actually provides an orderly system with protections that unmarried same-sex couples cannot take advantage of.Contact Rob here today for a free financial consultation today
  • Tips on what to do with your Tax Refund

    Tips on what to do with your Tax Refund

    Other than folks who receive an annual bonus this is the only time of year when some people will receive a lump sum of money. Instead of squandering your money consider the following options:

    • Add to your IRA: you can contribute up to $5,500/year to a traditional and/or Roth IRA or $6,500 if you are 50 or older by the end of 2014taxrefund
    • Pay off debt: If you are carrying more debt than you are comfortable with, consider paying it down. It’s like investing at the same interest rate being charged on the loan. Try to pay off your credit cards with the highest interest rate first.
    • Top off your emergency fund: You should have 6 months salary liquid in case of an emergency. Keep the money in an interest earning account.
    • Boost retirement savings: If you aren’t contributing enough to a company retirement plan to capture 100% of the company match, you are walking away from free money! Use the extra cash to increase your contribution.
    • Keep the money in a side fund for college: Putting the money in a 529 plan decreases what your student can qualify for in endowment “Free money”.
    • Prepay your summer vacation: Use some of the cash to pay off your vacation in advance so you don’t have to take it from your income in the summer.

    Do yourself a favor by choosing one of these options instead of wondering where all the money went at this time next year! Contact Rob today for a free consultation on this and other concerns you have here. 

  • 6 Tips for your Financial New Year’s Resolutions

    6 Tips for your Financial New Year’s Resolutions

    Six out of ten American’s will make some type of financial based New Year’s resolution for 2016. Usually there’s a triggering event like receiving your December 2015 credit card bill or spousal pressure to name two. Follow these tips;2016-resolutions

    1. Consolidate Financial accounts: Close 1 or 2 existing financial accounts that you are not tracking or have insignificant monies in. This will save brain space, reduce statement clutter and avoid paying unnecessary fees.
    2. Increase your 401k/employer retirement contributions: Raise your contributions 1%/year minimum. You won’t feel the difference however over time it can make a major impact when entering retirement.
    1. Develop a budget and/or expense statement: Review credit card, bank and checkbook statements to get a handle on inflow and outflow of money. Start using a program like quick books or if old school draft a budget by hand and hang it up where you can see it. This can cause heavy emotional denial however better now than later.
    2. Set up a system to save systematic money: Either something informal like putting the $20 you are saving in gas on fill-ups in a jar. Formal ideas like buying a cash value life insurance policy or setting up an Eft thru your bank account.
    3. Protecting your health saves your wealth: We all know about the escalating cost of health insurance and health care in general. Renew that gym membership, yoga studio or dust off that treadmill in the garage.
    4. Bring balance to your life: Take that vacation you have been putting off. The rest and rejuvenation will impact you health. Statistics show that one who works 46 weeks/year will out produce a 52 week/year worker. It will give you something to look forward to and forces one to be very productive before leaving and when returning home. Use frequent flyer miles if need be.

    Contact Robert today to help achieve your New Year’s Financial Resolutions

  • 4 Things We Can Learn from the Pope

    What We Can Learn from the Pope: 4 Tips

    The Pope toured Cuba and is now in the USA. He is discussing many controversial topics with class and poise while connecting with people of all ages. Here are fourlessons learned principles we can learn from the Pope:

    1. Deliver your message with clarity: He’s touched on sensitive issues such as global warming and gay marriage. Think of what your intended outcome is when delivering your messages at work and even at home. Message clarity comes from prior planning and concise delivery.

    2. Use the sandwich method when critiquing: Open with a positive statement or sincere compliment to connect with your audience. In the middle deliver your criticism without tone and then close in a positive manner with a smile. The Pope regularly employs this technique.

    3, Be humble by example: Instead being transported in the $1 milion limousine that President Obama rides in, Pope Francis requested a black FIAT crossover vehicle to show he is of the people. Be mindful of the impression you leave with others.

    4. Utilize social media: Pope Francis is connecting with younger generations like none of his predecessors by using social media. Consider making it a part of your daily routine.

    Contact Robert today for your free consultation or insurance review.

  • 5 Reasons to Fire Yourself

    5 Reasons to Fire Yourself

    Most working professionals fear one thing: being fired. Typical reasons for being fired center on downsizing, restructuring, market changes, personal conflicts and more. However, when should one consider firing themself? That’s right, themself. Sound strange? Perhaps. Examine each of these five reasons and see if any or all apply to you.

    1. You’ve lost the passion. The late Apple founder Steve Jobs said…

    ” The only way to do great work is to love what you do”.

    If you no longer have any passion left for your chosen career your quality of work will suffer. Our passion for our chosen profession is our wellspring of energy, ideas and enthusiasm and should be guarded closely.fired-yet-mug

    2. You talk about quitting. If you find yourself regularly telling your spouse or close friends you’re thinking about quitting or should be quitting, stop. Take inventory of your statement and ask the question ‘why am I seriously considering leaving?’. Write down the reasons you want to quit. Then look at your list and right down next to each what you can or cannot do to address each. If your list presents no possible solutions it may be time to move on.

    3. You know you’ve settled for less. If you have that nagging feeling that your present job is well below your potential and talents you have some decisions to make. Can you move into another position more well suited for your talents? Can you find ways to improve your value within your current position? Are you settling and only staying for the company health benefits or 401(k) plan? Staying for benefits alone is a poor reason to keep working for a company. Remember you can find similar benefits for you and your family at another job that you are passionate about.

    4. Your job doesn’t fit your long term goals. Look at your personal and financial long-term goals and see if your present job aligns with them. If your job will never afford you the income to retire by age 70 for example you may want to find a better paying job that you still have passion for. If you are seeking independence or self-employment, each month you continue working for your company pushes your realized goal further down the road. Know your goals first and then see if your job is in alignment.your-fired

    5. You are convinced you can no longer add value to the company. If you are fully convinced you can no longer add value to the company it is time to fire yourself. Quit, leave, resign. If you don’t your employer will eventually see that you are no longer adding value to the company and save you the trouble of firing yourself. Be honest with yourself and give your company the opportunity to fill the position with someone who will help them grow and yourself the opportunity to improve your professional and financial situation.

    These are just a few reasons you may want to fire yourself. Also each of these reasons may give you the opportunity to retool, expand and improve your professional situation. **If you have a 401(k) from a company you’ve left or you will need to move one in the future contact Rob today for a free no-obligation consultation.

  • 5 Tips How to Get Free “Endowment” Money for College

    5 Tips How to Get Free “Endowment” Money for College

    college funding, planning, insurance, Queens, Forest Hills, New York86% 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.

     

  • The Best Pizza & Planning in NYC!

    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.

    best pizza in New York City, insurance, planning, consultationDiFara: 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.