Category Archives: Business Reports

Brian M. Johnson, MBA, CLTC

When it comes to where and how you live, and what you do with your money, you want the freedom of choice and confidence that you’re making the right decisions. 

The same is true with your long-term care strategy, helping you set the stage for the future and the legacy you have planned.

Long-term care is quite simply assistance with simple everyday tasks, even as simple as eating or getting dressed. The need for care could arise from an accident, illness, cognitive impairment, or the aging process. You may never need it. 

But, the best time to start thinking about it is before the need arises and while you’re still able to take control. Many Americans work hard, save diligently for retirement, yet fail to address the single biggest risk to their portfolio and families: extended healthcare. 

When it comes to long-term care, do not be swayed by common misconceptions such as: 

• “It won’t happen to me.”

People unrealistically downplay their personal risk. Seventy-nine percent of people put off discussions about long-term care, but 98 percent of financial professionals say they have clients who have needed it. In fact, being healthy presents even a higher risk of needing long-term care services than someone who is managing chronic a condition.

• “Medicare or Medicaid will cover me.”

by Kenneth J. Entenmann, CFA

One of the oldest Wall Street adages is “Don’t Fight the Fed.” 

In general, it means when the Fed is raising interest rates, accept that they are and adjust accordingly. The most of the first half of 2023, the markets have not followed that guidance, constantly rejecting the Fed’s every move. The market convinced itself that the Fed’s rate hikes would cause a recession, unemployment would spike, and inflation would come crashing down. The Fed would have to capitulate on its tightening policy activity.

Money flowed into money market and fixed income funds. Money market funds with 5 percent annual yields were attractive and bonds were back. Everyone loved bonds. Yet, year-to-date, the aggregate bond index is up only 2.46 percent. That would be considered good if a recession did in fact occur, but it did not, at least not yet. Equities are supposed to be toxic heading into a recession and most of Wall Street entered 2023 significantly underweight. Six months into the year, the S&P 500 index was up 9.65 percent and the NASDAQ was up over 30 percent. So much for the hated asset class.

The economy continues to lumber on. No recession, but languishing growth. Manufacturing is clearly in recession. Housing is coming to life; the housing shortage is overwhelming higher mortgage rates; the consumer sector remains on fire. A mixed bag, but not a recession.

The employment market continues to be dysfunctional. In June, the unemployment rate was 3.6 percent. The non-farm payrolls were 209,000, less than the 240,000. Importantly, the average hourly earnings were 0.4 percent, higher than expected. It is good news that the payroll numbers have returned to a more sustainable level around 200,000. 

By Mark Shaw

Oh look, another article on AI (artificial intelligence.)

Ok, I promise this won’t be one of those, “AI is here and it’s going to take your job, help you cheat on college papers, or end the world” kind of articles.

There is a lot going on with ChatGPT and its parent company OpenAI making such waves in the news. People are using AI to gather information faster, assist with writing better articles, and even creating art.

While all of this is amazing and it’s interesting to “play” with, what are some real-world scenarios that you can apply AI to use in your business? That is a great question. Far too many articles go for the big hype instead of the small and incremental successes you can have with AI.

Let’s talk about something that isn’t really being talked about when it comes to AI: customer delight. How do you use AI to delight your customers?

If you are a business and you have emails, ticketing systems, or any interaction with your clients electronically, you could be using AI several ways. For example, what if you could have AI review your emails, and if you have a client who appears to be unhappy or showing concerns, your computer would highlight and bring those emails to the forefront to be dealt with first? Would that be an advantage?

AI can be used to review “sentiment” which means, reviewing the use of language to make a determination if someone is upset, or using terms that might make them be at risk of leaving your company or services. This would let you see these emails first and respond quickly.

That isn’t the only way to increase the value to your clients. Imagine receiving an email from a client asking questions about your products or services that they are interested in, or maybe even a problem they are having. AI could do the research and document anything relevant about the clients request in a private note document, saving you the manual research and time. This allows you to get back to them faster with more accurate information.

By Mark Prian

The original Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 was designed to expand access to tax-advantaged retirement savings accounts, and it made changes to existing laws to ensure that older Americans are less likely to outlive their retirement assets.

The intent of this act was also to improve the way businesses provide retirement benefits to employees. In 2022, some long-awaited changes to the original act were introduced, and, in December, what is now known as SECURE 2.0 was passed by Congress and signed into law by President Biden.

SECURE 2.0 builds on the original objectives and makes some important adjustments to the 2019 legislation. With more than 100 provisions in the law, these new changes are bound to impact just about everyone who is saving for retirement. So, whether your employees are close to retiring or have many more years to save, here are some highlights you need to know.

Starting in 2023, the biggest change in SECURE 2.0 might be the adjustments to Required Minimum Distributions (RMDs). Under the 2019 act, a plan participant had to begin withdrawing retirement savings at the age of 72. The 2022 law increases this to age 73, that began on Jan. 1, 2023. By 2033, the starting age for RMDs will be 75. 

Also starting this year, the penalties for failing to take the RMD are cut from 50 percent of the amount not taken down to 25 percent. If you correct this mistake in a timely manner within an IRA, the penalty drops to 10 percent.

Employers may now choose to offer matching or nonelective contributions as Roth contributions.

Sherry Finkel Murphy, CFP, RICP, ChFC

As a parent of adult children, there’s an ongoing tug of war between your values, your finances, and your time, with respect to your family. 

True story: Last week, my husband hopped into his truck, and drove three states west on zero notice, to provide grandpa coverage for 5-year-old grandchild number four, while our daughter and son-in-law juggled careers, pregnancy, selling a house, and relocating. Their careers are taking them where they need to go; and we are monitoring where they land to see how we can best provide support. 

We are feeling blessed to have the time and geographic flexibility that so many of our peers don’t have. It was a great case study in offering resources “besides” money, that are meaningful value-adds to the kids.

As your financial planner, I will always recommend that you “secure your own oxygen mask” (fund your own retirement) before you turn to the seat next to you and assist. That part certainly has not changed. What might be different for this generation is the notion of what “helping the kids” looks like. While once you were determined to fund a wedding or provide a down payment on a home, today you might be more creative—or even return to the intergenerational assistance of days gone by. 

Here are some ideas for helping your kids that can be as rewarding for you as for your adult children:

Combine an opportunity to see the grandkids with a destination family vacation and pay your own way. Take the grandkids in the evenings or at certain hours to give your children a break without increasing the cost of their travel childcare. I have clients who love to travel separately and converge on a destination with their children and grandkids. 

By Rose Miller I was asked to speak recently on the value of training programs. I was excited to speak on this topic because I’ve witnessed many examples of the damage caused by untrained managers, who are not self-aware nor able to embrace a culture of learning. More managers are being asked to take...

By Steven Luttman

April 2, 1989 marked a formative day in the childhood of many within a certain age demographic. Following the dissolution of their tag team, Hulk Hogan battled Randy Savage for the world title in what was billed as “The Mega-Powers Explode.”

Two icons of the sport engaged in battle, the former relying on brute strength and power while the latter found success with finesse and quickness. It was impossible to imagine either succumbing to the other. Three-plus decades later and this impasse parallels today’s conflict between buyers and affordability within the residential real estate market. 

On one side of the housing equation, you have interest rates. Last March the Federal Reserve announced what would go on to be the first of several increases to their Fed Funds rate. Since then, the velocity in which the cost of borrowing money has risen hasn’t been seen since the early 1980s. 

Many homeowners fortunately saw the writing on the wall, and locked in attractive mortgage payments before the escalation fully got underway. Goldman Sachs now estimates nearly three-quarters of all borrowers have interest rates below 4 percent, and 99 percent possess one below six.

While this was financially prudent, the corresponding friction it would go on to cause is significant. When considering moving up, downsizing or simply eyeing a change, one of the first factors a homeowner must come to terms with is the idea of trading in a 3 percent mortgage in exchange for the prevailing rates of today which are double that.

 Consider a $250,000 loan amount. On a 30-year mortgage this change represents an additional $450 of monthly interest required when compared to a purchase made just twelve months ago. This puts sellers in an uncomfortable situation where they could conceivably be priced out of buying a house that is less expensive than the one in which they currently reside. Let that sink in for a moment.

By Brian M. Johnson, MBA, CLTC

Amid recent news about prominent banks failing, inflation and increased market volatility, many Americans are finding refuge in whole life insurance. 

To be clear, whole life insurance is NOT an investment. It is a type of life insurance policy that provides coverage for the entirety of one’s life, as opposed to term life insurance which only covers a specific period of time. While whole life insurance offers several benefits, one of the most important considerations for many people is the safety of the policy. 

What is whole life insurance? It is a type of permanent life insurance that provides coverage for the entirety of one’s life. Unlike term life insurance, which only provides coverage for a specific period of time, whole life insurance does not expire as long as premiums are paid. In addition to providing a death benefit, whole life insurance policies also build cash value over time, which can be borrowed against or used to pay premiums.

One of the main benefits of whole life insurance is its safety. Unlike other types of investments, such as stocks or mutual funds, whole life insurance policies are not subject to market fluctuations. This means that the cash value of the policy is guaranteed to increase over time, regardless of economic conditions. In addition, whole life insurance policies are backed by the financial strength of the insurance company, which provides an additional layer of safety.

When you purchase a whole life insurance policy, you are essentially entering into a contract with the insurance company. The insurance company agrees to pay a death benefit to your beneficiaries in exchange for the payment of premiums. 

In addition, the insurance company guarantees that the cash value of the policy will increase over time, regardless of market conditions. This means that even if the stock market crashes or the economy takes a downturn, your whole life insurance policy will continue to provide coverage and build cash value.