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In 1989, The FICO SCORE was released to the world by William R. Fair and Earl Isaac, who founded a computer software company.  They developed and sold their first credit system back in 1958.  FICO (short for the Fair-Isaac Co.) was the first credit-risk model that provided a universal and impartial tool for evaluating consumer risk.  The FICO SCORE is a three-digit number (between 300-850) based on credit data from your credit reports.   It helps lenders predict how likely a person is to repay a loan.  Over 90% of ALL credit decisions made in the USA today use the FICO SCORE!

A good FICO SCORE can literally save you THOUSANDS of $$$$ in interest and fees to lenders.  A good FICO INSURANCE SCORE (FICO homeowners scores range from 200-997) can save you BIG $$$$ on your homeowner insurance premiums.   It can also save you BIG $$$$ on auto insurance premiums (FICO auto scores range from 250-900) depending on what state you live in.  Using credit scoring for auto insurance is banned in California, Hawaii, and Massachusetts.  Other states have restrictions but not an outright ban.  One should be over 700 on both scores.

To improve your FICO SCORE, we must first examine the FICO “Scoring Formula.”  Fico data is grouped into 5 categories:

1. PAYMENT HISTORY: (35%) Payment history refers to whether individuals pay their credit accounts on time. Credit reports show the payments submitted for each line of credit, and the reports details bankruptcy or collection items along with any late or missed payments.
2. AMOUNTS OWED: (30%) Accounts owed refers to the amount of money an individual owes. Having a lot of debt does not necessarily equate to a low score. Rather, FICO considers the ratio of money owed to the amount of credit available.
3. LENGTH of CREDIT HISTORY: (15%) As a general rule of thumb, the longer an individual has had credit, the better their score. However, with favorable scores in the other categories, even someone with a short credit history can have a good score. FICO SCORES take into account how long the oldest account has been open, the age of the newest account, and the overall average.
4. NEW CREDIT: (10%) New credit refers to recently opened accounts. If the borrower has opened several new accounts in a short period of time, that indicates risk and lowers their score.
5. CREDIT MIX: (10%) Credit mix refers to the variety of accounts.  For example, credit cards, retail cards, home loans, vehicle loans, etc.  It is helpful to have a few categories of debt; however, it is NOT necessary to have a card in each category to score well.  For more information go to MYFICO.com.

Now that we have broken down the FICO “Magic Formula,” consider using these “Lucky 7” tips to improve your credit rating; hence, improving your FICO SCORE:

1. DO NOT CLOSE OLD ACCOUNTS: While this might seem counterintuitive, closing a card may negatively impact your credit. It reduces your credit-to-debt ratio and credit history which lower scores.
2. CONSIDER ASKING FOR AN INCREASE TO YOUR CREDIT LINE: For example, if you have a credit limit of $5,000 and you are using an average of $2,500, that is a 50% ratio.  If you asked and were granted an increase to a  $10,000 limit and kept your spending at $2,500, you lowered your “Credit-Usage” ratio to 25%, which will increase your score over time. 
3. LIMIT THE TOTAL AMOUNT OF CREDIT CARDS: People are tempted by all the enticing initial credit card offers and frequent flyer points; however, applying for too many cards will lower your score.
4. AVOID FEES: Credit card companies charge exorbitant fees (they can be as high as 36%, depending on what state you live in) for late payments, even if it is only by a day or two.  Making late payments may trigger a higher interest rate and will lower your scores quickly.
5. PAY OFF 100% OF YOUR BALANCES EVERY MONTH: Carrying over balances from month to month is a costly way to do business.  If you have issues with this, I suggest enrolling into “auto-pay” online, one credit card at a time so you can stabilize your finances.
6. REVIEW YOUR CREDIT AND FICO SCORES: Step one is to determine your starting point.  This is easy to do online.
7. CORRECT INACCURATE INFORMATION: Almost 90% of credit reports have the credit or personal information that is either inaccurate or dated.

Heed these 7 tips to improve your FICO and credit score and let the savings begin!!!

The Social Security Act (SSA) was signed into law by then-President Theodore Roosevelt on August 14th, 1935.  In addition to several provisions for the general welfare, the new Act created a social insurance program designed to pay retired workers aged 65 or older, a continuing income after retirement. 

As per www.ssa.gov, taxes were collected for the first time in January of 1937, and the first one-time lump sum payments were made that same month.  What many people did not know at the time is the average life expectancy in 1935 for men and women was 59.9 and 63.9 respectively.  Roosevelt must have figured few people would live long enough to collect.

Social Security is the largest social program in the USA.  Last week the Social Security Administration (SSA) announced that retirees will receive a cost-of-living (COLA) adjustment of 8.7% starting January 1^st, 2023. This marks the highest boost since 1981.  While retirees are celebrating this relief from rising prices due to inflation, this does not bode well for the long-term future of social security!

Social Security originally did not adjust benefits to account for increases in the cost of living.  This changed in the 1970s when there was rampant inflation.  Congress instituted automatic cost of living adjustments (COLAs) each year calculated in the fall and starting in January of the following year. 

What this equates to is an average of about $145 extra per month for SSI recipients.  This will positively affect close to 70 million people or 1 in 5 households.  Total Social Security payments in 2022 will cost nearly $1.3 trillion dollars!  It is questionable how much this will help with necessities such as eggs, chicken, milk, and bread costs which have increased by 30.5%, 17.2%, 15.2%, and 14.7% respectively.

To give you a frame of reference of how much $1.3 trillion is, the U.S. debt has ballooned to $31 trillion.   The Biden Administration spent approximately $3.1 trillion during his first year in office; $1.9 trillion on the American Rescue Plan and $1.2 trillion on the Infrastructure Bill. 

The 8.7% Social Security cost of living adjustment wouldn’t be a problem if wages kept up because Social Security is a “pay as you go” program, meaning that benefits paid out next year will come from payroll taxes collected from workers next year.  If wages grow at the same rate as inflation, extra taxes collected from workers should be enough to cover the extra costs.

The problems are:

1. Wages are NOT Keeping Up: The Bureau of Labor Statistics reports that inflation-adjusted weekly earnings fell by 3.8% over the last year!
2. Higher Benefits with Lower Tax Revenues are a Bad Formula!
3. There are Fewer Workers Contributing to Payroll Taxes: Between the “Great Resignation” and the fact that 10,000 baby boomers (born between 1946-1964) are turning 65 per day until 2035, the numbers just don’t work because there are more people withdrawing from the system than paying into it!
4. This Shrinkage Has Been Going on for Years:  Social Security has been losing money annually and currently has a $20 trillion long-term funding deficit, as per Andrew G Biggs from the American Enterprise Institute. This is the number that lawmakers seem to be avoiding! 

To name a few, there are several potential solutions to this problem that could be combined or utilized individually to help make Social Security solvent:

1. Simply Raise Taxes:  To cover this shortfall.
2. Lower Social Security Benefits:  The maximum social security benefits in 2023 will top $43,000 for those retiring at the “Full Retirement Age of 67” next year.  A high-earning couple could retire on over $80,000 in Social Security benefits alone.  That maximum benefit is 3 times more than in Canada, the United Kingdom, Australia, and New Zealand.
3. Raise the Maximum Earnings on Which Americans Pay the Social Security Tax: Next year, the maximum Social Security tax on wages will rise from $147,000 to $160,000.
4. Change Rules on Illegal Aliens: This would prevent aliens from benefiting by receiving dollars from a program they did not contribute to.
5. Raise the Current 12.4% Payroll Tax Rate

My take on this is that there is no reason that middle-income and high-income Americans should be relying on Social Security as a primary source of retirement income.  In other words, Social Security income should be considered gravy or extra money in addition to traditional retirement income vehicles such as 401k’s, 403B’s, IRA’s (Individual Retirement Accounts) Annuities, Stocks, Bonds and Mutual Funds, etc. 

At this rate, there is no guarantee that Social Security is going to be around indefinitely!  If you are a teenager or in your 20’s, 30’s, 40,s or even 50’s, you still have time to put money away.  Start by saving 1% of your income per year or add an additional $1% per year if you are already saving.  Compound interest over time is powerful!  You will be amazed at how fast your retirement accounts will grow!! 

The earliest known documentation of humans drinking coffee is in the middle of the 15^th century in the Arabian Peninsula.  Coffee beans were found, roasted, and brewed into a drink that Sufis used for religious purposes. It spread across their empire, extending to Africa, Egypt, Syria, and Turkey.

 Coffee was brought to Europe by the Ottoman Turks in the early 17^th century and soon became a popular beverage.  Today, Brazil produces over 30% of the world’s coffee and Brazilians consume the most coffee in the world.

Americans drink 400 million cups of coffee every day and 146 billion cups per year, of which 66% of women and 62% of men drink coffee daily!  The Perfect Brew publication reports that women spend about $2,327 per year on their coffee habit, while men spend $1,934 per year.  These numbers project to go up significantly this year! 

The question is, how much do we really know about our cup of Joe?  See my Top 10 benefits to drinking coffee below:

1. Free Radical Fighter:  You might sipping coffee for the caffeine; however, coffee is full of antioxidants!  One cup has 200-550 milligrams of antioxidants, including chlorogenic acid, a compound that helps your body process fat and sugar.   Antioxidants lower inflammation, reduce the risk of chronic disease, and stabilize free radicals.  Surprisingly, a light roast has more antioxidants than a dark roast!
2. Hot Brew vs Cold Brew:  If you are looking for antioxidants, stick with hot-brewed coffee.  It has more because it takes a certain amount of heat to extract antioxidants from the bean.  Cold brew will give a bigger caffeine jolt and it is also lower in acid.  If you suffer from acid reflux, stick with cold brew. 
3. Black vs Mocha Coffee: The healthiest way to take your coffee is hot-brewed and black.  One cup has virtually no calories or carbs, no fat, and it is low in sodium.  Black coffee also has micronutrients, including potassium, magnesium, and niacin. 
4. Coffee Can Detoxify Your Liver: The liver helps with the digestion and detoxification of harmful substances in the body, such as alcohol and certain medications.  Coffee helps your liver work more efficiently due to a substance called “chlorogenic acid” that is found in coffee beans.
5. Coffee Can Exfoliate the Skin: Coffee grounds are a good alternative to expensive exfoliators.  Save some used grounds in a cup or bowl, dampen with water and rub onto your face for two minutes before rinsing it off.  The caffeine in coffee will also moisturize dry skin while removing dead cells, leaving skin soft, smooth, and clean.
6. Coffee Can Ease Abdominal Pain: Most people think coffee is a stress-inducing beverage that keeps them awake and alert.  Scientists have found that caffeine can help EASE some abdominal pain and other symptoms associated with menstruation, such as bloating, mood swings, fatigue, and nausea. 
7. Coffee Can Improve Your Heart’s Health: Coffee drinkers are less likely to suffer from heart disease than those who do not drink coffee.  Coffee contains antioxidants that stop the liver from absorbing too much LDL (bad) cholesterol responsible for clogged arteries.  Another benefit to your heart is that caffeine can help your blood vessels relax, allowing more blood flow.
8. Coffee May Reduce the Risk of Developing Type 2 Diabetes: Regular coffee drinkers tend to have lower blood sugar levels than non-coffee drinkers.  This lowers the risk of developing type 2 diabetes.  Coffee’s “chlorogenic acid” reduces the amount of glucose absorbed by the bloodstream.  It also boosts insulin sensitivity, allowing the body to absorb less sugar from foods and it prevents sugar spikes.
9. Coffee Can Boost Your Metabolism: Coffee stimulates the production of a hormone called “adiponectin,” known for regulating metabolism.  Studies have shown coffee can boost metabolism by up to 5% and increase fat burning by 10%-29%.  Drinking a cup of coffee before exercising can help extend your workout because it is an appetite suppressant.  Black coffee contains only 1 calorie per cup.
10. It can prevent getting Gout: Gout is a painful condition caused by the buildup of uric acid in the body leading to joint inflammation.  Coffee helps prevent Gout by blocking enzymes that produce uric acid, preventing build-up.  Too much coffee and caffeine intake can cause the condition to flare up, so three cups maximum per day is recommended.

I would be remiss not to mention some downsides of drinking too much coffee.  Too much caffeine intake can cause insomnia, anxiety, dehydration, and irritability.  Because it dehydrates you, it is a good idea to drink water either before or after consuming coffee.

If you are sensitive to caffeine, try decaf instead.  Keep in mind that to be considered decaffeinated, 97% of the caffeine must be removed from the drink.  This still leaves 3% of the caffeine in your cup. 

It is clear the benefits of drinking coffee outweigh the detriments.  The next time you reach for soda or those unhealthy sugary energy drinks, perhaps it is time to brew a cup of Joe instead!

There are an estimated 50 million tailgaters in the USA who spend up to $12 billion a year on this very popular activity!  At the NFL (National Football League) level, tailgaters spend an average of $196 per game just on food, beverages, and supplies, not including the ever-increasing game ticket cost.

Something happened in New York Sports last Sunday that hasn’t occurred on the same day since 2009!  All four New York City pro sports teams won their games.  I can still remember the front page of the Monday N.Y. Post “Fantastic 4.  Judge blasts 58^th, 59^th homer, Giants’ best start since 2016, Mets sweep Pirates and Jets’ miracle comeback.”

In addition, the New York Jets did something no NFL team has done in over 2 decades!  They are the first team in the last 21 years to overcome a 13-point deficit with less than 2 minutes remaining to win a game

New Yorkers sure take their pro sports seriously!  I was at the tailgate for the New York Jets’ opening day loss to the Baltimore Ravens (there was a misty rain from 10am throughout the game) and I’m sure the Giants’ opening day victory tailgate was outstanding as well.

Professional Football games are expensive to attend.  The Jets raised game-day tickets this year by 3%, for the first time since 2016.  Parking passes also were increased to between $50-$70 per car, and there are different level access parking passes one can purchase.

There is a resale market on parking and for the old-school, there are no more paper game day tickets, although the Jets allow pre-printing the barcode for parking pass scanning into designated parking areas. 

Directly from the www.NewYorkJets.com website, “MetLife stadium is operating cash free at ALL concessions and retail stations.  You must pay by debit or with a credit card using a contactless tap to pay, mobile wallet chip, or swipe.  The New York Jets prefer Visa as a form of payment.  Reverse ATM machines will be available throughout MetLife stadium for guests to convert cash to a pre-paid Visa debit card.  The Visa card has no expiration date and can be used anywhere a Visa debit card is accepted.”

The ”carry-in policy” directly from the www.MetLifeStadium.com website allows:

1. Clear bags that are 12” X 6” X 12” in size or less, 1 bag per person
2. Food of any kind that is contained in the plastic bag
3. Small purses/handbags (clutch type) that are 4.5” X 6.5” or less (1 PP)
4. A factory-sealed plastic bottle of water or soft drinks that are 20 ounces or less in size (caps will be removed by Safety Service Team members
5. Reusable water bottles (both plastic and aluminum) bottles must be empty upon entry

Follow these tips to ensure a safe and fun tailgate experience:

1. Time it right: Try to arrive at least 2-3 hours before kickoff to get the optimum parking space.  If you are not tailgating postgame, pack up 30 minutes before kickoff.
2. Invest in real estate: Seek out spaces (or send somebody else to go early and scout spots) by the grass, the edge of the parking lot, and close to the bathrooms.  Fewer neighbors mean fewer issues!
3. Be a tool: Fill a toolbox with your favorite grilling essentials, utensils, zip lock bags, bottle openers, etc. 
4. Rethink your drink: I suggest multi-colored cups to identify which is your cup.  Also, use cups with straws (preferably paper) to protect from insects.
5. Reduce, reuse, recycle:  Cardboard drink carriers make good snack holders.  Less is more and makes cleanups easier.
6. Koozie up:  Always keep between 5-10 koozies in your car for guests.  Koozies are can holders to keep your favorite beers, white claws, and soft drinks cold instead of your hands freezing. 
7. Freeze it: Putting your water in the freezer the night before equals a giant ice cube which comes in very handy on game day.  Bottles of water inside cost anywhere $5-$12, so you may want to enter the stadium fully hydrated. 
8. Dress in layers:  There can be huge temperature swings this time of year, especially at 4pm games when the sun sets during the game.
9. Keep a duffle bag in your trunk:  Keep extra clothes, rain ponchos, hats, flashlights, batteries, bungee cords, and a fire extinguisher can in your trunk.
10. Dump coals in specified bins:  Almost all stadia have specified bins for dumping hot coals.  Leaving smoldering coals is hazardous to you and your fellow tailgaters!

I read an interesting blog last Monday from a woman who called herself a “Football Widow!”  She explained that her husband is not a sports fan, he ONLY likes NFL pro football.  In the beginning she didn’t like it when he was unavailable most Sunday, Monday, and Thursday nights.  Now she has learned to embrace it and schedules her events and watches TV during these weekly events, which her husband would NOT be interested in, so she now CHERISHES football season!

Whether or not you are an NFL football fanatic, football widow or widower, let’s all enjoy this fall and the NFL season!!

Identity theft has become a serious issue here in the USA and globally!  Although identity theft issues have been a common concern for several years; however, the frequency has skyrocketed the past three years!

See the statistics from the National Council on Identity Theft Protection below:

1. Losses from Identity Theft Cost Americans $5.8 billion in 2021.
2. The FTC (Federal Trade Commission) received 5.7 million total fraud and identity theft reports in 2021, of which 1.4 million were ‘consumer’ identity theft cases.
3. In 2021, $2.8 billion of losses were from imposter scams and $392 million were from consumer online shopping scams.
4. Fraud cases are up 70% from 2020.
5. Reported Cases: 2021= 5.7M, 2020= 4.8M, 2019= 3.4M
6. The average amount of money lost has doubled since 2019.
7. Experts claim there is an Identity Theft case every 22 seconds and it should increase by year-end 2022.
8. The number of Identity Theft cases reported in the USA is nearly 3 times higher than in other countries.
9. Reports have it that 33% of all Americans have had some type of Identity Theft issue in their lifetime.
10. Credit card fraud is the most commonly attempted theft among credit card users with 2.8m thefts reported in 2021.

I had my American Airlines Mastercard hacked 3 times in an 18-month period, so this issue is near and dear to me.  People who post on social media online are more likely to get hacked!  It is difficult for the average American (especially mature seniors) to deal with this widespread problem as scammers have become more sophisticated every year. 

One potential inexpensive option can be utilized through your triple AAA membership.  Triple AAA (the Automobile Association of America) offers a variety of inexpensive plans to assist. 

They (AAA) have three levels of plans.  They have a free plan and two other more comprehensive plans for $10.95/month and $15.95/month respectively for their top plan. 

One thing I noticed when dealing with this problem myself is that there are 3 important things that come into play with identity theft: IT is

1. Time Consuming
2. Costly and
3. Very Stressful

For many people, insurance is for protection and “peace of mind,” which is sometimes difficult to put a price on.  For this column, I will break down both the AAA Free plan (called their Essential Plan) and a “rider” that can be added to the Free plan for $10 per year.

The AAA Free plan includes:

1. Credit monitoring from Experian
2. Experian Credit Report (upon enrolling)
3. Lost Wallet or Purse (Pocketbook) Protection
4. Fraud Resolution Support

With the AAA Safeco $1/month (or $10 per year) Identity Recovery coverage, they add the following to their Free plan:

1. Case Manager: For no additional charge, a dedicated case management company works directly with the consumer throughout the claim process.
2. High Annual Limit and No Deductible: Expense reimbursement up to $25,000 annually for expenses incurred after identity theft.
3. Lost Wages and Child and Elder Care Expenses: They are covered for up to $250 per day with a $5,000 maximum aggregate per claim.
4. No Adverse Premium Impact:  Claims will have no adverse effect on future premiums.  This is the opposite of auto and homeowners insurance which usually raises premiums after a claim.

For my clients, insurance planning has to do with finding the maximum coverage for each premium dollar spent.  It is ALL about VALUE for life insurance, health insurance, long-term care insurance, and ALL other types of insurance. 

A responsible independent broker shops insurance companies looking for “pricing sweet spots” to see where the best VALUE can be found.  The AAA Identity Theft plans are no different, as I think there is value to be found looking at these AAA Identity Theft plans, especially the Free plan with the $1 per month (or $10 per year) rider added.

What do you think?  Feel free to reach out to me at Rob@InsuranceDoctor.us and best of luck to you!

Interest rates have been around since the dawn of civilization!  They can be traced all the way back to 3000BC.  It didn’t take long for people to realize the importance of interest rates as a critical part of the borrowing and lending equation. 

Interest rates have changed significantly since back in the early days when a 20% rate was a fairly common occurrence.  These days, interest rates that high would cause mass panic. 

The Federal Reserve sets interest rates in this country and the benchmark rate is called “The Federal Funds Rate!”  This is the rate that banks charge other banks to lend Federal Reserve funds to each other for overnight borrowing.  This rate must be manipulated for time to time, moved lower to stimulate growth or moved higher to curb inflation.

The reason this matters so much is because of the ripple effects of the Federal Funds Rate.  The FFR affects the Annual Percentage Rate (APR) on credit cards, home equity lines of credit, auto loans, mortgages, Certificates of Deposit (CDs) and savings account rates just to name a few. 

If you look at the history of the Federal Funds Rate, it was at ZERO from 2008-2015, and again at ZERO from March 2020 to early 2022.  Lowering this rate helped stimulate economic growth and triggered the real estate and refinance boom over the last 2-3 years.  Real estate is starting to cool now that mortgage rates have doubled this year. 

You might be asking yourself, what does this all mean?  The Federal Open Market Committee (FOMC) meets every 6 weeks to evaluate rates.  They have never been this transparent as they have stated there will be several more increases this year and possibly the first quarter of next year.

 This means, for conservative investors, there will soon be a major “Safe Investment Opportunity” to lock into these higher “Fixed Annuity Interest Rates” for multiple years! 

Fixed Annuities are issued by insurance companies as an alternative to bank Certificates of Deposits (CDs).  Fixed annuity rates were under 1.9% earlier this year, and in New York State the 5-year and 7-year Guaranteed  Fixed Interest Annuity Rates are currently returning over 4%. 

Annuity rates could reach 5% by the 4^th quarter of this year or the first quarter of 2023, which would be a good time to lock them in for years going forward! 

See below to read my Lucky 13 Advantages of Fixed Rate Annuities:

1. Guaranteed Interest Rates: You know exactly how much money you have at the end of the term.
2. Guaranteed Principal: Your principal is protected regardless of market conditions or company performance.
3. Interest Rates: Higher than CDs, bonds, or T-Bills.
4. Tax Deferred:  You do not pay income taxes until you start withdrawing funds which allow for faster accumulation hence providing you with greater income.
5. No Fees:  You pay no annual management fees while funds accumulate and no fees on death benefits to heirs.
6. Protected From Creditors: If you get sued creditors cannot go after/attach fixed annuity funds.
7. Bypasses Probate: Fixed annuity death proceeds bypass probate hence they are private, saving on estate fees and going directly to named beneficiaries outside the will.
8. Lifetime Income Options Available:  At any time your annuity may be converted into an income stream you cannot outlive.
9. Annual Withdrawal Options Available:  Most fixed annuities allow for 10% annual no fee withdrawals.
10. Annuitization: This unique annuity feature allows the policyholder take a guaranteed income for life and/or a period certain, and have a portion of the income excluded (an exclusion ratio) from taxation.
11. State Protection: Should the annuity insurance company become insolvent, there are state protections (depending on what state you are in) with limits between $250,000-$500,000 in most states.
12. Piece Of Mind:  Annuities are secure and offer peace of mind to account holders knowing they are safe from harm’s way.
13. Lowers Your FAFSA Score: For those parents with college bound students looking to qualify for merit-based (FREE) endowment money, repositioning parental asset into FAFSA-friendly Fixed Rate Annuities can lower your FAFSA score by almost $6000 for every $100,000 moved out of non-FAFSA friendly financial vehicles.

My firm has over 20 years of experience with Fixed Interest Rate Annuities and we have access to over 100 insurance companies to shop interest rates for clients.  For those “Financial Wave” readers interested in learning more about major opportunities coming soon for “Fixed Interest Rate Annuities,” feel free to reach out to me at Rob@InsuranceDoctor.us. 

See below to read my Lucky 13 Advantages of Fixed Rate Annuities:

1. Guaranteed Interest Rates: You know exactly how much money you have at the end of the term.
2. Guaranteed Principal: Your principal is protected regardless of market conditions or company performance.
3. Interest Rates: Higher than CDs, bonds, or T-Bills.
4. Tax Deferred:  You do not pay income taxes until you start withdrawing funds which allow for faster accumulation hence providing you with greater income.
5. No Fees:  You pay no annual management fees while funds accumulate and no fees on death benefits to heirs.
6. Protected From Creditors: If you get sued creditors cannot go after/attach fixed annuity funds.
7. Bypasses Probate: Fixed annuity death proceeds bypass probate hence they are private, saving on estate fees and going directly to named beneficiaries outside the will.
8. Lifetime Income Options Available:  At any time your annuity may be converted into an income stream you cannot outlive.
9. Annual Withdrawal Options Available:  Most fixed annuities allow for 10% annual no-fee withdrawals.
10. Annuitization: This unique annuity feature allows the policyholder to take a guaranteed income for life and/or a period certain, and have a portion of the income excluded (an exclusion ratio) from taxation.
11. State Protection: Should the annuity insurance company become insolvent, there are state protections (depending on what state you are in) with limits between $250,000-$500,000 in most states.
12. Piece Of Mind:  Annuities are secure and offer peace of mind to account holders knowing they are safe from harm’s way.
13. Lowers Your FAFSA Score: For those parents with college-bound students looking to qualify for merit-based (FREE) endowment money, repositioning parental assets into FAFSA-friendly Fixed Rate Annuities can lower your FAFSA score by almost $6000 for every $100,000 moved out of non-FAFSA friendly financial vehicles.

My firm has over 20 years of experience with Fixed Interest Rate Annuities and we have access to over 100 insurance companies to shop interest rates for clients.  For those “Financial Wave” readers interested in learning more about major opportunities coming soon for “Fixed Interest Rate Annuities,” feel free to reach out to me at Rob@InsuranceDoctor.us. 

A heart attack, stroke, or major organ failure can suddenly hit anybody. When it does, life changes in a second, at first being a struggle for survival, and if the patient survives, they are faced with major expenses.

While overall fitness and health is the best prevention against one of these events, it is still a fact that in the U.S., someone has a heart-related event every 34 seconds, and someone has a stroke every 40 seconds.

Many persons assume they’re fully protected with a standard health insurance plan, but the exorbitant costs of treating life-threatening illnesses are usually more than any plan will cover.

Some of these extra expenses include:

• Deductibles and copays.
• Costs are associated with out-of-network treatment and additional medical procedures, such as angioplasty and pacemaker implantation.
• Travel and lodging during treatment.
• Rehabilitation and home health services.
• Childcare.
• Loss of income as you take time off work to recover.

Many persons don’t have enough savings or, even if they do, can be left financially devastated as the costs quickly add up. To avoid this calamity, the solution is to have a Critical Illness Policy in place.

What a critical illness plan offers:

Critical Illness Insurance helps supplement your major medical coverage by providing a lump-sum benefit that can be used to pay direct and indirect costs related to the most critical illnesses.

Among the conditions that are typically covered are:

• Heart attack
• Cancer
• Stroke
• End-stage renal (kidney) failure
• Coronary bypass

Other serious illnesses may be covered as well, depending on the specific design of the plan.

Additional coverage options also are available to help pay for health screenings, subsequent diagnoses, and cancer vaccines.

One of the benefits of Critical Illness Insurance is that the money can be used for a variety of things, such as:

• To pay for critical medical services that might otherwise be unavailable.
• To pay for treatments not covered by a traditional policy.
• To pay for daily living expenses, enabling the critically ill to focus their time and energy on getting well instead of working to pay their bills.
• Transportation expenses, such as getting to and from treatment centers, retrofitting vehicles to carry scooters or wheelchairs, and installing lifts in homes for critically ill patients who can no longer navigate staircases.
• Terminally ill patients, or those simply in need of a restful place to recuperate, can use the funds to take a vacation with friends or family.

How it functions:

Critical Illness Insurance plans differ depending on the policy and the insurance company. For a plan with a low benefit amount, you would likely not have to undergo a medical exam. These are called “Guaranteed Issue” plans. Higher benefit amounts may require you to undergo a medical.

Critical Illness Insurance policies are priced according to a schedule, which is specified in your policy.

After a certain age, usually around 65, the insurer will reduce your benefit in half, which is called the “Age Reduction Schedule.” Most policies expire when you reach age 70 or 75.

Benefits under a Critical Illness Plan typically max out at between $10,000 to $50,000, and they are paid out in a lump sum.

For Example:

Brenda suffers a heart attack and has Critical Illness Insurance to help pay the bills while she recovers.

Immediate costs – Brenda’s employer-sponsored health insurance does not cover testing and her angioplasty procedure, but her Critical Illness Insurance steps in to pay for them.

After recovery – After recovering, she follows her doctor’s advice and uses part of her benefit to pay for a gym membership and take a vacation to relieve stress.

Prevention – Brenda decides to start getting a yearly stress test, which is paid for by her annual health screening benefit.

       As an insurance broker and advisor, my job is to represent YOU, the client and shop the market to find the best insurance product with an A-Rated insurance company at the best price point!  Protecting the client is job one! 

The two biggest risks to your financial well-being are from:

A. Lawsuit

B. A major health issue. 

Critical Illness Insurance addresses B and gives you piece of mind!

Last week I had the honor of leading a “Pizza Crawl” for Gotham Networking, an impressive organization of experienced New York-based like-minded business owners, who do great things for the community in addition to referring business to each other.

Earlier this month, I embarked on my annual summer California trek, which brought me to Redding, Northern California.  My good friend, Shannon Hicks, invited me to his cigar club called “The Grindstone.” He said it was pizza day, “You will Love it!”  It turns out that pizza day consisted of his fellow Grindstone member, Jay Webster, slinging personal pies made to order out of a modified keg that was cut out in the middle.  Surprisingly, they were good!

Jay and his wife Michelle were serving the pies in 108-degree weather in the club’s backyard to thank the Grindstone Brotherhood for their support, while Michelle was fighting and beating cancer.   I gave them my business card and said if they were ever in NYC, I would be happy to take them out for Great Pizza.  Usually, when this occurs, you rarely hear from them again.

Not this time!  Two weeks later, I received a text from Jay saying his family had landed at Newark airport and were staying in Staten Island, where they would be participating in a weeklong 500-mile cancer charity bike ride upstate.  My response was, “Wow, I am doing my pizza crawl walk-through tomorrow, why don’t you come into Manhattan, get your carbohydrate load and we will ‘crawl’ together?”

So we did!  Our first stop was at Famous Ben’s Pizza in Soho, followed by a walk to Prince Street Pizza, then onto Lombardi’s for a full sit-down dinner.

I was immediately taken aback by the $6 price of Ben’s “Sfincione” slice, called “The Palermo.”   Very few people (including Italians) are aware of what “Sfincione” is or what it represents.  The name is derived from “Sfincia,” which is loosely translated as “thick sponge.”  It originated in Palermo (The Capital of Sicily) on its northwestern side in the early 17^th century.

Sfincione was initially created as a special bread for Christmas Eve, and it has the characteristics of Palermo Street Food, meaning it is soft, tasty, and inexpensive to prepare. 

I call “Sfincione” the paella of pizza, as it was a common meal for the poor back in the day.  Now, I have seen paella dishes for $25+ at restaurants and $6 for a Sicilian square slice with no cheese!  Because the poor couldn’t afford cheeses, “Sfincione” is made with dough, sauce, onions, and breadcrumbs instead of cheese.

When I led the same exact pizza crawl in 2019, the charge was $65 per person.  After my walk-through crawl with Jay Webster and family, the cost has increased to $95 per person! 

Since the early 1960s, the price of a regular New York slice has mirrored the price of a subway token.  This was called “The Pizza Principle” or the “Pizza-Subway Connection.”  Now, since inflation has been hovering around 8.5%, there is an ever-expanding gap between these two costs. 

This has me thinking about the root causes of prices running rampant.  Basic economic supply and demand are what cause inflation.  

Some of the reasons for the pizza inflation are:

1. Cheese Prices:  As per the Bureau of Labor Statistics, cheese prices have risen over 20% while grocery prices have risen by 13.1% during the last 12 months.  Dairy plants were hit hard by the Omicron variant, leading to decreased production.  Milk prices have also risen.
2. Trucking and Shipping Costs: Shipping container costs have multiplied.  About 90% of the goods we consume in New York City are trucked in. The price of diesel gas has skyrocketed, and demand has risen leaving industries struggling to keep up.  There is also a shortage of drivers as they are leaving for higher-paying jobs, causing trucking companies to raise wages which raises delivery costs.  California just lost approximately 70,000 truckers during the past 18 months.
3. Tomato Shortages:  California produces 90% of America’s tomatoes and 25% of the world’s tomatoes.  California is in the middle of its worst drought in over 100 years.  Reservoirs at Lake Mead (I have seen this in person) are at their lowest levels since their construction in the 1930s.  Due to the lack of water, California is on pace to produce 40% fewer tomatoes this year.

Having spoken to several pizzeria owners, they are concerned about the rising prices of olive oil, flour, and cardboard boxes in addition to the increasing tomato shortage.  The 99-cent slice places are raising their prices to $1.50 or more.  Pizzeria owners deserve our empathy instead of complaints about rising prices.  Now, let’s eat!