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Decorating Safely for the Holidays

Mon, 04 Dec 2023 18:20:39 GMT

The holiday season is a festive time when twinkling lights, Christmas trees, wreaths and more all help to adorn homes and properties throughout the country. However, these decorations often include electrical components, flammable materials and open flames.

To ensure maximum safety for you, your loved ones and your home while still enjoying the beauty of holiday decorations, consider the following steps:

Adhere to all installation and safety instructions regarding decorative lights.
Inspect both newly purchased and old lights used in previous years and dispose of any that have cracks, exposed wires or loose connections.
Avoid connecting more than three sets of decorative lights to a single extension cord.
Unplug lights and other electrical decorations whenever they are unattended, including while you are sleeping.
Set up Christmas trees at least 3 feet away from heat sources.
Do not keep Christmas trees in your home for over two weeks, as they may become dry and present significant fire hazards.
Hang breakable ornaments and those with detachable parts at higher levels to ensure they are out of the reach of children and pets.
Use ground fault circuit interrupting outlets for outdoor lights and ensure these decorations’ plugs are kept away from snow, ice and water.
Arrange potentially poisonous plans, such as holly berries and mistletoe, in areas that are out of the reach of children and pets.

For more resources regarding home safety and homeowners insurance, contact us today.

Source: Zywave

Turkey Fryer Safety Tips

Wed, 22 Nov 2023 20:09:23 GMT

While preparing your Thanksgiving turkey in a turkey fryer can be a timeless tradition, it’s important to keep cooking safety measures in mind to protect yourself, your guests and your home. After all, the U.S. Fire Administration states that Thanksgiving is the peak day for home cooking fires.

Don’t let your next holiday gathering become another statistic. Use this guidance to ensure turkey fryer safety and enjoy a stress-free Thanksgiving.

Cooking Tips

As with any cooking tool, it’s important to take caution when using a turkey fryer, as it can be extremely dangerous. Here are some tips to consider when frying a turkey:

Stay in the area where you are cooking. Leaving the turkey unattended may cause the fryer to overheat, resulting in a fire.
Use your turkey fryer on a level surface. Anything that might cause the fryer to tip over may result in a hot oil spill.
Thaw your turkey before cooking. Water from a still-frozen turkey can cause the oil to bubble or splash over the pot.
Keep small children and animals away from the fryer while it is in use. There is a great risk that a child or pet could run into the fryer, knocking it down and causing serious injury. A safe distance of three to 10 feet away is recommended.
Have safety equipment ready. Use oven mitts, goggles and an apron while cooking. Have a fire extinguisher nearby in case of emergency, and keep flammable items away from the fryer.

Keep it Outdoors

For your safety, only use a turkey fryer outside and away from your home. Never use a turkey fryer in a garage or on a porch. Also, be sure to keep some distance between yourself and the fryer as you monitor it—you wouldn’t want to accidentally get splashed with hot oil.

For more home safety guidance and homeowners insurance solutions, contact us today.

Protecting Your Business Against Frozen Pipes and Sprinkler Systems

Tue, 07 Nov 2023 19:08:22 GMT

During the winter season, businesses face a unique set of property challenges, including the risk of frozen pipes and sprinkler systems. These issues can result in costly damage, disruption of operations and potential safety hazards. It is essential to understand which pipes and systems are most vulnerable to freezing, the impact of cold weather on pipes and sprinkler systems, and how to take preventive measures to protect your business’s operations.

Where Are Pipes and Sprinkler Systems Most at Risk of Freezing?

Pipes and sprinkler systems are most exposed to freezing in areas of a building or property where temperatures can drop significantly during cold weather. The vulnerability to freezing depends on the specific location and environmental conditions.

Here are the most common areas where pipes and sprinkler systems are highly exposed to freezing:

Exterior walls—Pipes located near or within exterior walls are particularly vulnerable. These walls are exposed to the outdoor elements; when temperatures plummet, the cold can penetrate the walls and affect the pipes within.
Ceiling voids—Ceiling voids are often poorly insulated and may lack heating. As a result, any pipes in the ceiling void can be exposed to freezing temperatures, especially in regions with severe winters.
Basements and crawl spaces—Basements and crawl spaces are typically cooler than the rest of the building, so pipes may not receive sufficient heat.
Utility rooms—Rooms housing water heaters, boilers and other plumbing components can be prone to freezing if not adequately heated.
Exterior pipelines—Outdoor pipelines, including those used for landscaping, irrigation or fire protection, are exposed to the elements. If not properly insulated or protected, they can freeze in cold weather.
Unheated storage areas—Unheated storage areas, such as warehouses or storage rooms, often lack sufficient heating. Any pipes in these spaces are at risk of freezing when temperatures drop.
Roof—In some commercial and industrial buildings, roof-mounted sprinkler systems are installed for fire protection. Due to their location on the roof, where cold winds and precipitation can impact them, these systems can be exposed to freezing temperatures.

What Impact Can Frozen Pipes and Sprinkler Systems Have on Businesses?

The freezing of essential building infrastructure components like pipes and sprinkler systems can significantly impact your business, leading to a range of negative consequences that affect operations, finances and safety.

Here are the key impacts of frozen pipes and sprinkler systems:

Disruption of operations—Frozen pipes can cause leaks, leading to water supply shutdown and disruptions in day-to-day operations.
Property damage—Burst pipes and malfunctioning sprinkler systems can cause costly water damage to a building’s structure, interior and equipment.
Safety risks—Frozen pipes can cause leaks, flooding and slip-and-fall hazards. Water damage can also create electrical hazards. Further, malfunctioning sprinklers can be dangerous during a fire emergency.
Loss of reputation and customer trust—Businesses that experience disruptions or safety incidents due to frozen pipes or sprinkler systems may suffer reputational damage. Customers and clients may lose trust in the company’s ability to maintain a safe and reliable facility.
Regulatory and compliance issues—Certain industries and regions have specific regulations and codes related to fire protection systems. Failure to maintain a functional sprinkler system can result in legal compliance issues, fines and penalties.
Increased insurance costs—Businesses affected by frozen pipes or sprinkler systems may need to file insurance claims to cover repair and restoration costs. This can lead to increased insurance premiums in the future.
Operational inefficiency—Addressing the aftermath of frozen pipes and sprinkler system issues can divert resources away from regular business activities, leading to inefficiencies.

Steps to Minimize the Risk of Frozen Pipes and Sprinkler Systems

To reduce the risk of freezing pipes and sprinkler systems, businesses can take several preventive measures. The following steps can help protect the integrity of their infrastructure, avoid costly damage and maintain the functionality of fire protection systems:

Insulate pipes. Insulate pipes in unheated or exposed areas with pipe insulation sleeves or heat tape to prevent freezing. Check the insulation for deterioration.
Seal gaps and cracks. Inspect the building for gaps, cracks and openings that allow cold air to enter. Seal these areas to prevent drafts that can affect the temperature of pipes.
Maintain adequate heating. Ensure that spaces containing pipes are properly heated, especially in areas with exposed pipes. Consistent heating prevents freezing. Monitor the heating system to ensure proper function and maintain suitable temperature in vulnerable areas.
Drip faucets. During extremely cold weather, allow faucets to drip slowly. Running water is less likely to freeze, reducing the risk of burst pipes.
Protect sprinkler systems. To prevent the freezing of sprinkler pipes, insulate or use heat tape in susceptible areas. Hire a professional to ensure proper installation. Consider using antifreeze solutions designed for fire protection systems.
Conduct regular inspections. Schedule routine inspections of your plumbing and sprinkler systems, particularly before the winter season. Identify and address issues early to prevent more significant problems.
Prepare for emergencies. Create an emergency plan for frozen pipes or sprinkler malfunctions. Educate employees on the protocol to minimize damage. Keep contact information of professionals for immediate assistance.
Watch the weather. Stay informed on weather forecasts, especially during cold spells. Take extra precautions when extremely low temperatures are expected.
Train employees. Train employees on how to identify signs of freezing pipes or sprinkler system issues and make sure they know how to shut off the water supply in case of an emergency.
Monitor exterior systems. If your business has exterior sprinkler systems for landscaping or fire protection, monitor and winterize them properly. This may involve draining the systems or implementing other protective measures to prevent freezing.
Use frost-resistant materials. When installing new plumbing or sprinkler system components, consider using frost-resistant materials that are less prone to freezing.

Conclusion

It is crucial to protect your business from frozen pipes and sprinkler systems to prevent expensive damage and maintain business operations during the winter season. By identifying areas that are vulnerable, understanding the impact of cold weather on pipes and implementing preventive measures, you can protect your business, ensure the safety of your employees and safeguard your assets. Contact us today for more information.

Source: Zywave

Halloween Safety for Children

Tue, 31 Oct 2023 15:30:01 GMT

Halloween celebrations can come with a range of fun activities and lead to lasting memories for your children. However, these festivities can also carry serious safety risks. That’s why it’s important to have precautions in place to protect your kids from the risk of Halloween-related injuries or accidents. Keep reading for an outline of Halloween safety tips for your kids.

Costume Precautions

Do not let children wear baggy or long costumes, as they are difficult to walk in and can be tripping hazards.
Purchase wigs, costumes and accessories that are fire-retardant.
Select face makeup and paint that is labeled as non-toxic and approved by the U.S. Food and Drug Administration to prevent allergic reactions.
Place reflective tape on your children’s costumes and candy buckets if they are going trick-or-treating at night.

Trick-or-Treating Safety

Remind children to stay on the sidewalk and look both ways before crossing the street.
Do not allow children under 12 years old to go trick-or-treating by themselves.
Remind children to never approach or get into a car with a stranger offering them candy.
Once your children get home, inspect their candy to ensure it’s safe to eat.

Pumpkin Carving Tips

Only carve pumpkins on a flat surface with adequate lighting, such as a kitchen table.
Use a pumpkin-carving kit that includes tools appropriate for the task.
Place lit jack-o’-lanterns away from flammable objects, such as sheets and curtains.

Trick-or-Treating in Busy Areas

In addition to these tips, make sure you take extra precautions when your children go trick-or-treating in busy areas. If you live near busy roads, consider only allowing your children to trick-or-treat during the day, or accompany children of all ages to keep them safe among fast-moving motorists.

Source: Zywave

Potholes and Your Car

Fri, 20 Oct 2023 13:40:01 GMT

According to a AAA survey, potholes caused significant vehicular damage for 1 in 10 drivers in 2021. The average cost to repair pothole-related damage was $600 but exceeded $1,000 in some cases. What’s worse, the same drivers often filed multiple claims, averaging two pothole-related repairs a year. Common pothole-related damages include wheel and tire damage and damage to the suspension, steering and alignment systems.

Potholes form when groundwater freezes beneath the pavement, causing it to expand and crack. When the ice melts, gaps are left under the pavement, weakening its structure until the pavement breaks beneath the weight of cars. Although potholes may be unavoidable, vehicular damage doesn’t have to be.

Consider the following guidelines for avoiding pothole-related damage:

Ensure your tires have proper inflation, tread depth, alignment and suspension.
Scan the road ahead for potholes and drive around them when it’s safe.
Avoid driving through standing water (which may conceal deep potholes) whenever possible.
Slow down and avoid sudden braking if you must drive over a pothole or through standing water.
Be aware of any new sounds or vibrations in your vehicle after hitting a pothole.
Take your car to a trusted mechanic for a full inspection if necessary.

Does My Insurance Cover Potholes?

Collision coverage typically helps pay for pothole-related damages. This optional type of auto insurance can help pay for damage caused by collisions with objects (e.g., potholes or guard rails). This coverage typically has a deductible, which is an out-of-pocket cost you must pay before your coverage kicks in. You may choose not to file a claim with your insurance company if the cost to repair pothole-related damage is less than your deductible.

For additional driving safety guidance and auto insurance solutions, contact us today.

Source: Zywave

National Teen Driver Safety Week 2023

Thu, 12 Oct 2023 13:03:59 GMT

October 15-21 is National Teen Driver Safety Week. During this week, the U.S. Department of Transportation’s National Highway Traffic Safety Administration encourages parents to have important conversations with their teenagers about staying safe behind the wheel. According to the United States Department of Transportation, 2,608 people were killed in crashes involving teenage drivers in 2021.

Car crashes remain the leading cause of death among U.S. teens, and according to the Insurance Institute for Highway Safety, drivers ages 16 to 19 are almost three times more likely to be involved in fatal crashes per mile driven than those ages 20 and older. Here are some tips to share with your teenager about safe driving.

Don’t drive while distracted. Research has shown that texting and driving significantly increases crash risk, and in 2021, the U.S. Department of Transportation reported that 7% of teen fatal crashes involved distracted drivers. Educate your teen on the dangers of driving distracted—this includes eating, applying makeup and adjusting the radio, in addition to cell phone use.

Don’t drink or do drugs. Drinking or doing drugs is both illegal and dangerous while driving a vehicle. In 2021, 19% of teen drivers involved in fatal crashes were intoxicated. Remind your teenager that they should never get in the car with someone who is impaired—in addition to never drinking and driving themselves. Remind your teenager that they can call you or another trusted adult for a safe ride home if they need one.

Limit passengers. Studies show that a teenager is three times more likely to engage in risky behaviors while driving with multiple passengers. Familiarize yourself with your state’s graduated driving law and enforce these requirements with your teen driver.

Don’t speed. Speeding was a factor in nearly one-third (32%) of fatal teen crashes in 2021. Closely monitor your teen to ensure safe driving behavior. Be a good role model and don’t speed with your teen in the car.

Wear a seatbelt. Seat belt use is lowest among teenage drivers. In 2021, over half (51%) of teenage driving fatalities were not wearing a seat belt. Talk to your teenager about why seat belts are essential. Set a good example by always wearing your seat belt with them in the car.

Don’t drive while drowsy. According to the National Highway Traffic and Safety Administration, there were 684 fatalities due to drivers being drowsy while behind the wheel in 2021. Studies have shown that teens and young adults are particularly at risk of drowsy driving and subsequent accidents. Carefully monitor and limit your teenager’s night driving per state guidelines.

Contact us today f or additional guidance on safe driving or questions about adding your teenager to your auto insurance policy.

Source: Zywave

Tips for Pest-Proofing Your Home

Wed, 04 Oct 2023 12:54:52 GMT

Preparing Your Home for Fall Pests

As fall brings colder temperatures, the warm interior of your home can offer shelter, breeding spaces and a source of nourishment to household pests. Common household pests, such as flies, rodents, squirrels, wasps, ants and various bugs, can bring about property damage and health and safety risks for homeowners. By taking proactive steps to pest-proof your home, you create a safer, more comfortable and healthier living environment for you and your loved ones.

Tips for Pest-Proofing Your Home

To keep your home pest-free, keep the following tips in mind:

Schedule a pest control service to treat your home with pesticide spray at regular intervals.
Use traps or poisons to catch larger pests like mice or rats.
Clean and sanitize your home regularly.
Check and maintain the seals around all entry points of your home, including door and window seals and vents.
Locate and fill in cracks or holes in your home’s foundation or structure.
Put screens on attic vents and openings to chimneys.
Ensure your basement, attic and crawl spaces are well ventilated and dry.
Store firewood at least 20 feet away from your home.
Inspect any preowned furniture or thrifted items before bringing them into the house.

Did You Know?

Sometimes it takes knowing the ugly truth about pests to motivate you to take action. Did you know:

An estimated 21 million homes in the United States are invaded by mice and other rodents each winter.
Mice can fit through gaps as small as a dime.
Mice can carry as many as 200 human pathogens, including salmonella.

Your home is one of your biggest investments. Don't allow pests to find room in your house this fall unless you just want some extra company!

Source: Zywave

9 Controls to Know this National Cybersecurity Month

Thu, 21 Sep 2023 14:02:58 GMT

October is National Cybersecurity Awareness Month. During this annual event, government and cybersecurity leaders and the insurance community come together to raise awareness about the importance of cybersecurity. It is important to remember that businesses must stay cyber-secure to safeguard company data, protect customers’ personal information and ensure employee privacy. Here are 9 essential cybersecurity controls that organizations can implement to help manage their cyber exposures.

Endpoint Detection and Response (EDR) Solutions: EDR solutions record and store events from endpoint, utilize various data analytics techniques to detect suspicious system behaviors, provide contextual information, block malicious activities and offer remediation suggestions to help organizations restore affected technology

Patch Management: Patches are software and operating system updates that address security vulnerabilities within programs and products. A consistent approach to patching and updating software and operating systems can help organizations limit their cyber exposures.

Network Segmentation and Segregation: Network segmentation refers to dividing larger networks into smaller segments, whereas network segregation entails isolating crucial networks from external networks, such as the internet. Both processes limit the risk of cybercriminals gaining expansive access to organizations’ IT infrastructures.

End-of-Life Software Management: When software reaches the end of its life, manufacturers will discontinue technical support and security improvements for these products, thus creating vulnerabilities that cybercriminals can easily exploit. As such, having plans for introducing new software and phasing out unsupported products is critical.

Remote Desk Protocol (RDP) Safeguards: RDP ports allow users to connect remotely to other servers or devices. Although these ports are useful, they can also be leveraged as a vector for launching ransomware attacks. To safeguard their RDP ports, organizations should keep these ports turned off when they aren’t in use and ensure such ports aren’t left exposed to the internet.

Email Authentication: This technology monitors incoming emails and determines the validity of these messages based on specific sender verification standards that organizations have in place. Such technology can help keep potentially dangerous emails out of employees’ inboxes.

Data Backups: Organizations should determine safe locations to store their critical data, generate concrete schedules for backing up this information and outline data recovery procedures to ensure swift restoration amid possible cyber events.

Multifactor Authentication (MFA): MFA is a layered approach to securing data and applications where a system requires a user to present a combination of two or more credentials to verify their identity for login. Organizations should enable MFA for remote access to their networks.

Employee Training: Employees are widely considered organizations’ first line of defense against cyber incidents, making cybersecurity training crucial. This training should occur regularly and center around helping employees identify and respond to common cyberthreats.

For more cyber risk management and insurance guidance, contact us today.

This information is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. ©2023 Zywave, Inc. All rights reserved.

How Business Email Compromise Scams Work

Fri, 15 Sep 2023 15:55:22 GMT

Essentially, Business Email Compromise (BEC) scams consist of cybercriminals impersonating individuals or entities within their targets’ trusted networks for malicious gains. These scams are categorized as a form of social engineering, which refers to a broader cyberattack method that preys on key human behaviors (e.g., trust of authority, fear of conflict and promise of rewards) to obtain unwarranted access to organizational systems, funds or data. While the specific methods utilized for executing BEC scams can vary, these incidents often follow the same general framework. Here are the main steps a cybercriminal takes when deploying a BEC scam.

Researching the Organization

First, a cybercriminal selects an organization to launch their BEC scam against. From there, the cybercriminal will conduct a range of research on the organization to help them develop a detailed profile of the company and its executives, create convincing emails and gain their target’s trust during the attack. This research may include activities such as the following:

Analyzing the company’s website and LinkedIn page to understand its organizational hierarchy (e.g., members of the senior leadership team, primary department roles and reporting structures)
Finding and examining individual employees’ social media profiles and professional platforms to learn more about their interests, job responsibilities and workplace connections
Reviewing any other information available on the company (e.g., industry news articles, public records and press releases) to identify key organizational issues and developments

Selecting the Target

After researching the organization, cybercriminals will use the information they collected to prepare for their attack. At this point, the cybercriminal picks a specific individual within the organization as their main target for the incident, likely someone who has access to critical company funds and data.

Launching the Attack

Once they choose their target, the cybercriminal will deploy malicious software (also called malware) to access their target’s email account, monitoring the target’s digital interactions for days or weeks without their knowledge. Doing so allows the cybercriminal to see who the target frequently interacts with, what their conversations typically look like and the types of activities they conduct via email (e.g., paying invoices or sharing sensitive company files). The cybercriminal can then use this information to better impersonate a trusted sender and manipulate the target.

What’s more, the cybercriminal may also hack into the email account of another individual in the target’s organizational network, inserting themselves directly into legitimate conversations and further convincing the target to engage in compromising activities. Here are some other common attack strategies the cybercriminal may use:

Utilizing fake accounts or websites—If the cybercriminal opts not to hack into the target’s or a trusted sender’s email account, they will likely rely on fraudulent accounts or websites to launch their attack. For example, the cybercriminal may send emails using false domain names that appear genuine or direct the target to seemingly legitimate websites (also known as domain spoofing). Similarly, the cybercriminal may utilize lookalike domains, which almost exactly match the actual source, to deceive their target into performing certain actions.

Creating confusing variations—In an attempt to convince their target that they are a trusted source, the cybercriminal may create an email address that is nearly identical to the source they are impersonating, with the exception of a few characters (e.g., altering the email address “janedoe@samplecompany.com” to “janedoee@samplecompanyy.com”).

Using spear-phishing techniques—The cybercriminal may engage in spear-phishing by conducting additional, personalized research on their target and leveraging any extra details they discover to further motivate the target to believe their false identity. When spear-phishing, a cybercriminal will often impersonate a source who is more directly connected to their target (e.g., a close colleague or department leader).

Deploying additional malware—When sending fraudulent emails, a cybercriminal may encourage their target to download harmful attachments or click on deceptive links in an effort to launch additional malware. Once activated, this harmful software can help the cybercriminal more easily gain access to their target’s systems, funds and data.

Manipulating the Target

Once the cybercriminal convinces their target that they are engaging in a genuine business interaction, they will conclude the attack by manipulating the target into wiring company funds to the cybercriminal’s personal bank account or a bank account controlled by a large-scale organized crime group; sharing sensitive organizational details, intellectual property, supply chain information or workplace documentation; providing account credentials; or disclosing confidential employee or customer data.

Protect Yourself

BEC scams have become a pressing concern for all businesses, regardless of size or industry. With these incidents on the rise, businesses simply can’t afford to ignore their BEC exposures. Nonetheless, by implementing effective prevention, response and recovery procedures, businesses can not only limit their likelihood of experiencing such incidents but also mitigate possible losses when attacks arise.

Above all, it’s crucial for businesses to understand that they aren’t alone in managing their cyber risks and safeguarding against BEC scams. There is a wide range of resources and guidance available from trusted experts and professionals. For more information, contact Vista Insurance Group today.

Source: Zywave

10 Fall Home Maintenance Tips

Fri, 01 Sep 2023 14:15:31 GMT

Fall signals cooler weather, and the pleasant temperatures let you comfortably do necessary home maintenance before winter arrives. By taking the time to maintain your home each season, you can keep common household problems at bay.

Get Started With These Maintenance Tips

CLEAN GUTTERS AND DOWNSPOUTS. Clear leaves and debris from gutters and downspouts to prevent flooding and freezing around your foundation.

CHECK YOUR ROOF FOR SIGNS OF DAMAGE. Carefully check your roof for signs of leaks or other damage. Fall is a good time to hire a professional to perform a roof inspection.

CHECK FURNACE FILTERS. Inspect your furnace and replace the furnace filters.

TEST SMOKE AND CARBON MONOXIDE DETECTORS. Test all smoke and carbon monoxide detectors. It’s best to replace batteries annually. A good reminder is when daylight savings time ends in November.

PREP YOUR LAWN. Rake leaves, fertilize and aerate your lawn, so you are prepared when spring arrives.

STORE HOSES. Remove hoses from spigots. Drain and store them indoors, ensuring they are coiled and flat.

STOCK UP ON WOOD OR PELLETS. If you have a fireplace or woodstove, it’s a good idea to stock up on wood or pellets during the fall months before winter hits.

SWAP WINDOW SCREENS FOR STORM WINDOWS. Remove screens and install storm windows. Clean and repair screens before storing them in the basement or garage.

CLEAN WINDOWS AND DOORS. Clean windows and any sliding door tracks to ensure they operate smoothly all year long.

DRAIN GAS FROM YARD EQUIPMENT. Empty gas from your lawn tools before winter arrives. Gasoline can damage rubber parts if it’s left in equipment.

Spending time checking off the items on this fall home maintenance list will help you stay warm and safe through the winter. Better to deal with these projects during fall temperatures instead of waiting until it's too cold outside. Contact us with any questions you have about your homeowners policy.

Source: Zywave

Understanding Life Insurance Terms

Thu, 24 Aug 2023 16:41:54 GMT

If others depend on you for financial support, purchasing a life insurance policy is a safety net that ensures your loved ones' future financial obligations are met. Like many industries, the world of insurance has its own unique set of vocabulary to describe its products. To help you understand the information included in a life insurance policy, we’ve gathered some basic terminology in this easy-to-reference overview.

Beneficiary: The person or party named by the owner of a life insurance policy to receive the policy benefit.

Cash value: The savings element of a permanent life insurance policy, which represents the policy owner’s interest in the policy.

Contingent beneficiary: The party designated to receive proceeds of a life insurance policy following the insured’s death if the primary beneficiary predeceased the insured.

Convertible term insurance policy: A term life insurance policy that gives the policy owner the right to convert the policy to a permanent plan of insurance.

Dividend: A return of part of the premium.

Face amount: The amount of the death benefit payable under a life insurance policy.

Irrevocable beneficiary: A life insurance policy beneficiary who has a vested interest in the policy proceeds even during the insured’s lifetime because the policy owner has the right to change the beneficiary designation only after obtaining the beneficiary’s consent.

Insurable interest: The interest an insurance policy owner has in the risk that is insured. The owner of a life insurance policy has an insurable interest in the insured when the policy owner is likely to benefit if the insured continues to live and is likely to suffer some loss or detriment if the insured dies.

Insured life: The person on whose life the policy is issued.

Original age conversion: A conversion of a term life insurance policy to a permanent plan of insurance at a premium rate, based on the insured’s age when the original term policy was purchased.

Permanent life insurance: Life insurance that provides coverage throughout the insured’s lifetime and also provides a savings element.

Policy anniversary: As a general rule, the date on which coverage under an insurance policy became effective.

Premiums: Amount paid to the insurance company to buy a policy and keep it in force.

Renewable term life insurance: A term life insurance policy that can be renewed at the end of the policy term.

Term life insurance: A life insurance policy that provides a stated benefit upon the holder's death, provided that the death occurs within a certain specified time period. Policy does not build up a cash value.

Universal life insurance: A type of flexible permanent life insurance offering both term life insurance as well as a savings element, which is invested to provide a cash value buildup. The death benefit, savings element and premiums can be reviewed and altered as a policyholder's circumstances change.

Whole life insurance: A basic type of permanent life insurance. It provides coverage that lasts a lifetime and also builds up a cash value that you can borrow against, withdraw or use to pay future premiums.

Even if you already have life insurance through your employer, you may be underinsured. If you’d like the security of knowing that you have enough life insurance coverage in place, we can work with you to ensure that there aren’t any gaps in your current coverage. At Vista Insurance Group , we can help you figure out how much your family will need to replace this lost income should something happen to you.

Protecting Construction Workers From Extreme Heat

Tue, 08 Aug 2023 14:04:38 GMT

Preventing Falls Due to Extreme Heat

Extreme heat creates many risks in construction. As an employee in this industry, not only should you be aware of illnesses caused by the heat, but you also need to be mindful of how high temperatures can cause physical and mental impairments that can lead to falls and know how to prevent this hazard.

How Does Heat Impact Construction Workers?

The Centers for Disease Control and Prevention asserts that heat exposure increases the risk of workers experiencing a traumatic injury, such as a fall. This can be due to the following heat-related effects:

Impaired thinking
Dizziness and the reduced ability to maintain balance
Slowed reaction time
Muscle fatigue
Cramping
Slippery hands from sweat
Reduced awareness of danger

Hot conditions can also lead to cloudy or foggy eyewear that can impact vision.

Tips to Prevent Heat Illness and Related Falls

There are several ways you can reduce your risk of suffering a heat-related illness or impairment that could cause a fall. Strategies to consider include:

Hydrate with water or electrolyte-rich beverages before and during your shift. Avoid caffeinated drinks, which can cause dehydration.
Take breaks in the shade, removing outer protective gear to help cool off. Your work and rest schedules should be adapted to the conditions, your individual characteristics and the nature of the job (e.g., 15 minutes of shaded rest for every 45 minutes of work).
Dress for the weather by wearing loose, light-colored clothing made of breathable fabrics that do not create a safety hazard around equipment.
Slowly build up to more strenuous work over a seven- to 14-day period to allow your body to acclimate to the hot conditions.
Don’t overexert yourself during periods of peak temperatures.

By being proactive and aware of the risks extreme heat presents, you can reduce the risks associated with extreme heat, including heat-related falls. For additional safety tips, contact your supervisor.

Source: Zywave

Understanding the Rise in Insured Hurricane Losses

Thu, 03 Aug 2023 15:37:48 GMT

A new report by the Insurance Information Institute (Triple-I) discusses the recent rise in insured losses caused by hurricanes. According to Triple-I’s findings, when adjusted for inflation, nine of the 10 most costly hurricanes to affect the United States have occurred since 2005. This article discusses the reasons behind these increased damages.

Why Losses Are Up

Although U.S. policyholders have experienced rising insured losses in recent years, this is not due to an increase in the intensity or frequency of hurricanes. Rather, these figures are primarily due to population trends. According to Triple-I’s report, more people have been moving to states commonly affected by hurricanes since the 1940s.

Furthermore, data from the U.S. Census Bureau shows that homes being built in these areas are larger and more expensive. These rising values and the high cost of rebuilding and replacing homes due to supply chain issues dating back to the COVID-19 pandemic have combined to contribute to increased hurricane-related financial losses.

Climate Remains a Factor

While Triple-I’s report found that an increase in frequency or severity of hurricanes was not the primary cause of rising insured losses, climate remains a relevant factor. In fact, a recent study by global insurance broker Aon and Columbia University estimated that, under certain circumstances, climatic activity could further increase U.S. hurricane-related losses by 10% over the next 20 years.

“This estimate does not account for increases in exposures as a result of nonclimatic factors, such as new development and inflationary momentum,” Aon said.

Areas Most Affected by Hurricane Losses

According to Triple-I, greater levels of inland flooding have been particularly problematic in recent years. Claims made through the National Flood Insurance Program have seen a subsequent rise with the largest increases occurring in the following areas:

Coastal Texas and inland areas of Louisiana
Coastal northern Florida, Georgia, North Carolina and South Carolina
Inland northern New York, Vermont and New Hampshire

Meanwhile, the Census Bureau reported that Texas, Florida, North Carolina, South Carolina and Georgia led the United States in population growth between 2011 and 2020.

In Conclusion

As hurricanes continue to loom as one of the most prominent perils for millions of Americans, understanding, acquiring and maintaining adequate insurance is essential. Contact Vista Insurance Group for further guidance.

Source: Zywave

The Basics of Boatowners Coverage

Thu, 27 Jul 2023 17:14:02 GMT

You purchased a boat to provide years of personal enjoyment—ensure your pleasure by choosing the right insurance protection.

The Basics

A small boat, such as a canoe or other un-motorized boat, is typically covered under the personal property portion of your homeowners insurance policy. If you own a larger, faster boat, you'll need a separate boatowners insurance policy. A typical boatowners insurance policy is designed to protect your boat, motor, equipment and passengers. It affords similar coverages to those you typically have for your car including:

Physical Damage: Physical damage coverage insures your boat, motor, boat trailer, boat equipment (anchors, oars, fuel tanks, life jackets, dinghies, tools, etc.) and other personal property against theft, accidental loss or damages.
Liability: Two principal liability coverages are included:

Personal Liability - A boatowners insurance policy provides protection for legal liability and pays, up to the limit of your policy, the legal obligations imposed upon you due to an accident resulting from the ownership, maintenance, or use of your watercraft, including bodily injury, property damage and legal defense.
Medical Payments- This pays medical expenses, up to the limits in the policy, including the insured’s boating-related medical expenses from an accident arising out of the ownership, maintenance or use of the boat.

Additional Coverage Options

For added protection, consider the following additional coverage options:

Reasonable Repairs: Covers repairs incurred to protect covered property from further damage.
Emergency Service: Pays for reasonable costs that you incur resulting from specified emergency service to your boat, motor or boat trailer.
Wreck Removal: Pays the reasonable expenses you incur for any attempted or actual raising, removal or destruction of the wreck of your watercraft when damage is caused by an insured loss and removal or destruction is required by law.
Umbrella Liability: Provides additional boat insurance coverage across the board for home, auto and watercraft.

Top Ways to Save

Running your boat on diesel fuel instead of gas reduces both your risk and insurance premium
Complete an approved safety course through the Coast Guard, U.S. Power Squadrons, Red Cross or other state administered course
Ask about our multi-policy discount

Contact Vista Insurance Group for any questions you have about boat insurance or if you need us to review your policy to make sure you have all the coverage you need.

Source: Zywave

Millions of Americans Under Excessive Heat Warnings

Mon, 17 Jul 2023 17:32:47 GMT

About one-quarter of Americans are under excessive heat warnings or advisories. Parts of the country are experiencing triple-digit temperatures, including the Pacific Northwest, California, the Great Basin, parts of the Southern Plains, the Central Gulf Coast and the southern tip of Florida. These temperatures present danger for many if they are not cautious. Young children and the elderly are especially vulnerable to heat-related illness and death.

What Are Heat Warnings and Advisories?

A heat warning typically indicates conditions that pose a threat to life or property. These warnings also include conditions that make travel difficult. A heat advisory indicates that the expected weather conditions pose a significant inconvenience and could potentially threaten life and property if caution is not taken.

The exact level of heat and humidity at which heat warnings and advisories are issued varies based on location. Regardless, the temperatures associated with heat warnings and advisories can trigger potential health issues like heat stroke, which can be fatal.

While temperatures are expected to cool down across most of the country in the near future, below are tips to stay safe until a cooler forecast arrives.

Stay Safe in the Heat

When the weather is extremely hot, it’s critical to take necessary precautions in order to remain safe. Consider these tips:

Listen to National Oceanic and Atmospheric Administration Weather Radio for critical updates from the National Weather Service.
Use box fans and ceiling fans to promote air circulation throughout your home, particularly if your home doesn’t have air conditioning.
Seek comfort in public buildings, such as libraries, schools, movie theaters, shopping malls and other air-conditioned community facilities.
Do errands and outside chores early or late in the day.
Replace heavy or hot meals with lighter, refreshing foods. Avoid using salt tablets unless directed to do so by a doctor.
Drink plenty of water, even if you do not feel thirsty, and avoid drinks with caffeine. People with epilepsy; heart, kidney or liver disease; or who are on fluid-restricted diets or have problems with fluid retention should consult a doctor before increasing their fluid intake.
Limit alcoholic beverages as these are diuretics and can cause dehydration.
Dress in loose-fitting, lightweight and brightly colored clothes that cover as much skin as possible. Avoid dark colors, as they absorb the sun’s rays.
Protect your face and head from sun exposure by wearing a wide-brimmed hat.
Use the buddy system, take frequent breaks and rehydrate when working in extreme heat. If possible, try to avoid strenuous work during the warmest part of the day.
Take a cool shower or apply a cold compress to your pulse points.
Check on your animals frequently to ensure they are not suffering from the heat.
Go to a designated public shelter if your home loses power in the heat wave.
Learn about the signs and symptoms of heat-related illness. Heat stroke and heat exhaustion are dangerous and can be life-threatening if left untreated. Seek immediate medical attention if you or a loved one is experiencing the signs or symptoms of heat-related illness.

Remain cautious, check on loved ones and neighbors, and use these safety tips to stay safe during heat warnings and advisories.

Source: Zywave

Summer Safe Driving Tips

Wed, 28 Jun 2023 16:38:34 GMT

More people spend time driving in the summer than at any other time of year. Not only do vacation and recreational driving increase, but so does the number of teenage drivers on the road, as well as other driving hazards. Knowing the following tips for safe summer driving can help keep you safe.

Keep these tips in mind while driving in the summer:

More drivers mean more traffic jams. Remember that vacationing drivers are often unfamiliar with the roads and may make sudden stops, lane changes, or turns. Do your best to remain patient and avoid actions that could annoy other drivers.
Studies show that teenage drivers are more likely to get into accidents in the summer than at any other time of the year. They are also the most likely age group to use cell phones while driving. Parents can help their teens by modeling attentive driving, setting curfews that prevent teens from driving too late and signing their teenager up for a safe driving course.
There are nearly 700 fatalities every year in construction zones. With more construction zones on travel routes in the summer, it’s important you slow down, heed warning signs, and stay alert.
Distracted driving occurs nearly 10% more in the summer than in other seasons. Stow your phone, know your route beforehand, keep pets and children safe in the backseat and avoid making calls to family or friends when you know they’re driving.
Hot weather can cause vehicles to overheat and break down. Inspect your coolant system, radiator and pressure cap to make sure they’re in good condition. Consider bringing extra coolant, oil and liquids with you, especially if you’re driving to a remote location.
Drunk driving is always a problem, but especially during the summer holidays. Never drink and drive. If you plan on drinking, bring a sober designated driver or find another way home.

Abiding by safe driving tips can help you and others stay safe on the road during the summer months. For answers to additional questions about safe summer driving, contact Vista Insurance Group .

Are You Prepared For A Flood?

Wed, 28 Jun 2023 16:21:46 GMT

Flash floods can occur within minutes or hours of excessive rainfall, a dam or levee failure, or a sudden release of water held by an ice jam. Overland flooding, the most common type of flooding event, typically occurs when waterways—such as rivers or streams—overflow their banks as a result of rainwater or a possible levee breach and cause flooding in surrounding areas. It can also occur when rainfall or snowmelt exceeds the capacity of underground pipes, or the capacity of streets and drains designed to carry floodwater away from urban areas.

Be aware of flood hazards no matter where you live or work—but especially if you are in low-lying areas, near water, behind a levee or downstream from a dam. Even very small streams, gullies, creeks, culverts, dry streambeds or low-lying ground that appear harmless in dry weather can flood. Review the following guidance to learn how you can properly prepare for and respond to a flood.

Before a Flood

Even if you feel you live in a community with a low risk of flooding, remember that anywhere it rains, it can flood. Just because you haven't experienced a flood in the past, does not mean you won't in the future.

Flood risk isn't just based on history; it is also based on a number of factors including rainfall, topography, flood-control measures, river-flow and tidal-surge data, and changes due to new construction and development.

Flood-hazard maps have been created to show the flood risk for your community. This helps determine the type of flood insurance coverage you will need since standard homeowners insurance doesn't cover flooding. The lower the degree of risk, the lower the flood insurance premium.

To prepare for a flood, you should:

Build an emergency kit and make a family communications plan.
Avoid building in a floodplain unless you elevate and reinforce your home.
Elevate the furnace, water heater and electric panel in your home if you live in an area that has a high flood risk.
Consider installing "check valves" to prevent floodwater from backing up into the drains of your home.
If feasible, construct barriers to stop floodwater from entering the building and seal walls in basements with waterproofing compounds.

During a Flood

If a flood is likely in your area, you should:

Listen to the radio or television for information.
Be aware that flash flooding can occur. If there is any possibility of a flash flood, move immediately to higher ground. Do not wait for instructions to move.
Be aware of stream, drainage channels, canyons and other areas known to flood suddenly. Flash floods can occur in these areas with or without typical warnings such as rain clouds or heavy rain.

If you must prepare to evacuate, you should do the following:

Secure your home. If you have time, bring in outdoor furniture. Move essential items to an upper floor.
Turn off utilities at the main switches or valves if instructed to do so. Disconnect electrical appliances. Do not touch electrical equipment if you are wet or standing in water.

If you have to leave your home, remember these evacuation tips:

Do not walk through moving water. Six inches of moving water can make you fall. If you have to walk in water, walk where the water is not moving. Use a stick to check the firmness of the ground in front of you.
Do not drive into flooded areas. If floodwaters rise around your car, abandon the car and move to higher ground if you can do so safely. You and the vehicle can be swept away quickly.
Do not camp or park your vehicle along streams, rivers or creeks, particularly during threatening conditions.

After a Flood

Your home has been flooded. Although floodwaters may be down in some areas, many dangers still exist. Here are some things to remember in the days ahead:

Use local alerts and warning systems to get information and expert informed advice as soon as available.
Avoid moving water.
Stay away from damaged areas unless your assistance has been specifically requested by police, fire, or a relief organization.
Stay off the roads and out of the way as emergency workers assist people in flooded areas.
Play it safe. Additional flooding or flash floods can occur. Listen for local warnings and information. If your car stalls in rapidly rising waters, get out immediately and climb to higher ground.
Return home only when authorities indicate it is safe.
Take another route if you come upon a barricade or flooded road. Roads may still be closed because they have been damaged or are covered by water. Barricades have been placed for your protection.
If you must walk or drive in areas that have been flooded:
Stay on firm ground. Moving water only 6 inches deep can sweep you off your feet. Standing water may be electrically charged from underground or downed power lines.
Flooding may have caused familiar places to change. Floodwaters often erode roads and walkways. Flood debris may hide animals and broken bottles, and it's also slippery. Avoid walking or driving through it.
Be aware of areas where floodwaters have receded. Roads may have weakened and could collapse under the weight of a car.
Stay out of any building if it is surrounded by floodwaters.
Use extreme caution when entering buildings; there may be hidden damage, particularly in foundations.

Staying Healthy

A flood can cause physical hazards and emotional stress. You need to look after yourself and your family as you focus on cleanup and repair.

Avoid floodwater, as this water may be contaminated by oil, gasoline or raw sewage.
Service damaged septic tanks, cesspools, pits and leaching systems as soon as possible. Damaged sewer systems are serious health hazards.
Listen for news reports to learn whether the community’s water supply is safe to drink.
Clean and disinfect everything that got wet. Mud left from floodwaters can contain sewage and chemicals.
Keep a manageable schedule. Make a list and do jobs one at a time.
Contact your insurance agent to discuss claims.

Vista Insurance Group is committed to helping you and your loved ones stay safe when disaster strikes. For further personal risk management guidance, contact us today.

Source: Zywave

How Cybercriminals are Weaponizing Artificial Intelligence

Mon, 19 Jun 2023 15:47:23 GMT

The past few years have seen artificial intelligence (AI) surge in popularity among both businesses and individuals. Such technology encompasses machines, computer systems and other devices that can simulate human intelligence processes. In other words, this technology can perform a variety of cognitive functions typically associated with the human mind, such as observing, learning, reasoning, interacting with its surroundings, problem-solving and engaging in creative activities. Applications of AI technology are widespread, but some of the most common include computer vision solutions (e.g., drones), natural language processing systems (e.g., chatbots), and predictive and prescriptive analytics engines (e.g., mobile applications).

While this technology can certainly offer benefits in the realm of cybersecurity—streamlining threat detection capabilities, analyzing vast amounts of data and automating incident response protocols—it also has the potential to be weaponized by cybercriminals. In particular, cybercriminals have begun leveraging AI technology to seek out their targets more easily, launch attacks at greater speeds and in larger volumes, and wreak further havoc amid these attacks.

As such, it’s crucial for businesses to understand the cyber risks associated with this technology and implement strategies to minimize these concerns. This article outlines ways cybercriminals can utilize AI technology and provides best practices to help businesses safeguard themselves against such weaponization.

Ways Cybercriminals Can Leverage AI Technology

AI technology can help cybercriminals conduct a range of damaging activities, including the following:

Creating and distributing malware —In the past, only the most sophisticated cybercriminals were capable of writing harmful code and deploying malware attacks. However, AI chatbots are now able to generate illicit code in a matter of seconds, permitting cybercriminals with varying levels of technical expertise to launch malware attacks with ease. Although current AI technology writes more basic (and often bug-ridden) code, its capabilities will likely continue to advance over time, thus posing more substantial cyberthreats.

In addition to writing harmful code, some AI tools can also generate deceptive YouTube videos claiming to be tutorials on how to download certain versions of popular software (e.g., Adobe and Autodesk products) and distribute malware to targets’ devices when they view this content. Cybercriminals may create their own YouTube accounts to disperse these malicious videos or hack into other popular accounts to post such content. To convince targets of these videos’ authenticity, cybercriminals may further utilize AI technology to add fake likes and comments.

Cracking credentials —Many cybercriminals rely on brute-force techniques to reveal targets’ passwords and steal their credentials to then utilize their accounts for fraudulent purposes. Yet, these · techniques may vary in effectiveness and efficiency. By leveraging AI technology, cybercriminals can bolster their password-cracking success rates, uncovering targets’ credentials at record speeds. In fact, a recent cybersecurity report found that some AI tools are capable of cracking more than half (51%) of common passwords in under a minute and over two-thirds (71%) of such credentials in less than a day.
Deploying social engineering scams —Social engineering consists of cybercriminals using fraudulent forms of communication (e.g., emails, texts and phone calls) to trick targets into unknowingly sharing sensitive information or downloading harmful software. It repeatedly reigns as one of the most prevalent cyberattack methods. Unfortunately, AI technology could cause these scams to become increasingly common by giving cybercriminals the ability to formulate persuasive phishing messages with minimal effort. It could also clean up grammar and spelling errors in human-produced copy to make it appear more convincing. According to the latest research from international cybersecurity company Darktrace, social engineering scams involving sophisticated linguistic techniques have already risen by 135%, suggesting an increase in AI-generated communications.
Identifying digital vulnerabilities —When hacking into targets’ networks or systems, cybercriminals usually look for software vulnerabilities they can exploit, such as unpatched code or outdated security programs. While various tools can help identify these vulnerabilities, AI technology could permit cybercriminals to detect a wider range of software flaws, therefore providing additional avenues and entry points for launching attacks.
Reviewing stolen data —Upon stealing sensitive information and confidential records from targets, cybercriminals generally have to sift through this data to determine their next steps—whether it’s selling this information on the dark web, posting it publicly or demanding a ransom payment in exchange for restoration. This can be a tedious process, especially with larger databases. With AI technology, cybercriminals can analyze this data much faster, allowing them to make quick decisions and speed up the total time it takes to execute their attacks. In turn, targets will have less time to identify and defend against such attacks.

Tips to Protect Against Weaponized AI Technology

Businesses should consider the following measures to mitigate their risk of experiencing cyberattacks and related losses from weaponized AI technology:

Uphold proper cyber hygiene. Such hygiene refers to habitual practices that promote the safe handling of critical workplace information and connected devices. These practices can help keep networks and data protected from various AI-driven cyberthreats. Here are some key components of cyber hygiene for businesses to keep in mind:
Requiring employees to use strong passwords (those containing at least 12 characters and a mix of uppercase and lowercase letters, symbols and numbers) and leverage multifactor authentication across workplace accounts
Backing up essential business data in a separate and secure location (e.g., an external hard drive or the cloud) on a regular basis
Equipping workplace networks and systems with firewalls, antivirus programs and other security software
Providing employees with routine cybersecurity training to educate them on the latest digital exposures, attack prevention measures and response protocols
Engage in network monitoring. This form of monitoring pertains to businesses utilizing automated threat detection technology to continuously scan their digital ecosystems for possible weaknesses or suspicious activities. Such technology typically sends alerts when security issues arise, allowing businesses to detect and respond to incidents as quickly as possible. Since time is of the essence when it comes to handling AI-related threats, network monitoring is a vital practice.
Have a plan. Creating cyber incident response plans can help businesses ensure they have necessary protocols in place when cyberattacks occur, thus keeping related damages at a minimum. These plans should be well-documented and practiced regularly and should address multiple cyberattack scenarios (including those stemming from AI technology).
Purchase coverage. Lastly, it’s imperative for businesses to secure adequate insurance and financially safeguard themselves from losses that may arise from the weaponization of AI technology. It’s best for businesses to consult trusted insurance professionals to discuss specific coverage needs.

Conclusion

Looking forward, AI technology is likely to contribute to rising cyberattack frequency and severity. By staying informed on the latest AI-related developments and taking steps to protect against its weaponization, businesses can maintain secure operations and minimize associated cyberthreats.

Source: Zywave

Filing an Auto Insurance Claim Following Weather-related Damage

Thu, 11 May 2023 16:00:13 GMT

Extreme weather events, such as hail, wildfires, high winds and flooding can cause severe damage to your vehicle. Understanding how to file a weather-related damage claim can make it easier for you to be reimbursed for vehicular damage. Read on for further guidance.

Does My Insurance Cover Weather-related Damage?

Specific forms of auto insurance are required in most states. Depending on your location, required coverage may include liability insurance, personal injury protection insurance and uninsured/underinsured motorist coverage. However, these coverages generally won’t help pay for damage caused by noncollision incidents, such as weather-related damages. Comprehensive insurance coverage is essential to ensure adequate financial protection from these events. Although this coverage isn’t typically required, it can help prevent costly out-of-pocket expenses if your vehicle is damaged from a storm or natural disaster.

How Do I File a Weather-related Damage Claim?

The following are general guidelines for filing a claim following weather-related damage to your vehicle:

Contact your insurance company. Report the damage to your insurance company as soon as possible. Some insurers will set up emergency disaster relief programs to expedite claims following widespread disasters, such as major hurricanes and violent tornados.

Prioritize safety. Don’t risk driving a vehicle that could have serious problems. Although damage can be easy to spot (e.g., dents from hail), some damage may be difficult to notice without a proper inspection. Leave your car where it is and don’t attempt to drive it before an insurance adjuster arrives if there’s a chance it could have sustained damage.

Assess the condition of your vehicle. Make a quick assessment of vehicular damage if it’s safe to do so. Look for signs of extensive damage and indications that the car may not be drivable.

Document the damage. Gather visuals of the damage, such as photos and videos. You should also note anything that seems wrong (e.g., a strong smoke smell when driving). Provide this information to your insurance company to help them evaluate the loss.

Be patient. Auto insurance companies often receive a deluge of insurance claims following an extreme weather-related event, such as a wildfire or hurricane. Be prepared to wait and try to remain patient during the claims process.

Finding and maintaining the right auto insurance policy is crucial to ensuring you’re financially protected from weather-related events. Work with Vista Insurance Group to ensure you have sufficient protection.

Contact Us

The agents at Vista Insurance Group are here to answer your insurance questions. Contact us today to learn more.

Source: Zywave

Preventing Data Theft By Departing Employees

Wed, 10 May 2023 16:00:02 GMT

When employees leave a company, there is a heightened risk of data theft, which is also known as data leakage or exfiltration. This risk is present whether an employee’s departure is voluntary or not.

The consequences of data theft from insiders can be severe, as an organization’s most valued data assets and secrets are vulnerable. Data leakage events can impact a company’s financials through lost business and intellectual property, and they can result in reputational damage, litigation and regulatory fines.

Departing employees may have various motives for stealing sensitive corporate data, and it is crucial to be aware of and look for warning signs that an insider may engage in this impropriety. This article offers more information on warning signs and provides actions businesses can take to help prevent these occurrences.

Reasons Sensitive Data May Be Stolen

There are several reasons departing employees may take corporate data. While some may have malicious intent, other incidents may be the result of accidents or misunderstandings. The following are common reasons a departing employee may take corporate data:

To secure a new job or compete with a former employer—A company’s trade secrets or intellectual property can be valuable to a competitor. A departing employee may leverage this data to obtain a new job or gain an advantage in a new position by using it to compete with their former employer.

For personal financial gain—A former employee may be able to sell data they take, or they may be able to use it to jumpstart their own business venture.

To seek revenge—Departing employees may be disgruntled or frustrated about the circumstances of their transition. This may lead to malicious destruction of data to sabotage or disrupt their previous company’s operations.

On accident—Data exfiltration may not always be the result of malevolent actors. Departing employees may incorrectly believe the data was theirs, or they may accidentally retain it by failing to sufficiently wipe the devices they used for business purposes.

Data Theft Warning Signs

Companies can work to prevent data theft by proactively monitoring warning signs. Indicators that an employee may compromise sensitive information include actions such as:

Engaging in suspicious web-based activities, including utilizing incognito browsers, having several webmail accounts, researching how to bypass security and using personal file sharing platforms

Using unauthorized personal devices for business activities

Accessing business data at unconventional times or repeatedly

Downloading or transferring an inordinate amount of data

Requesting to gain access to information that is outside the scope of their job description

Recording or taking screenshots of company meetings

Acting out of character or in a way that is against company policies

Trying to trick or pressure coworkers into gaining access to their data

Prevention Tips

Organizations can implement the following strategies to reduce the risk of departing employee data theft:

Be proactive. Look for warning signs to stop data theft before it happens.

Establish clear policies and procedures. Policies should state the delineation between personal and business use of data, devices, networks and other technologies. They should also contain procedures on how this information will be disseminated to new, existing and departing employees.

Assign ownership of insider threat risks. Designate someone within the organization to be responsible for updating the data theft prevention program, conducting employee trainings and maintaining a data theft incident response plan.

Have a zero-trust mindset when employees leave. Assume a departing employee will retain some access to sensitive information after they leave. Utilize tools that create a full audit trail should an issue arise.

Acknowledge that no system will be completely effective in stopping all data theft. No matter how advanced, technological data loss prevention systems are not capable of preventing all instances of data exfiltration. Continually update your policies and regularly test your procedures.

Encourage cross-collaboration between business units (e.g., HR and IT). This can be particularly useful during offboarding to ensure equipment is returned in a timely matter and departing employee access to data is restricted when necessary.

Data theft from departing employees presents a significant exposure, and companies must be aware of warnings signs and techniques to mitigate its associated risks. For more risk management guidance, contact us today.

Source: Zywave

Supporting Employees During Mental Health Awareness Month and Beyond

Mon, 08 May 2023 15:33:59 GMT

Employee mental health has become a workplace topic of increased focus and awareness in recent years. An employee’s mental health includes how they think, feel and act, and their emotional and social well-being. While mental health includes mental illness, these two concepts aren’t interchangeable. For example, an employee can go through a period of poor mental health but not necessarily have a diagnosable mental illness. Additionally, an employee’s mental health can change over time, depending on factors such as their workload, stress and work-life balance.

Established in 1949, Mental Health Awareness Month is a national movement in May that aims to increase awareness about mental health, fight stigma, celebrate recovery, and support Americans with mental illness and their families. This article explores mental health in the workplace and ways employers can support employee mental health.

Mental Health and the Workplace

Millions of people in the United States are affected by mental illness each year. In fact, mental illnesses are some of the most common health conditions in the country. While more than 1 in 5 U.S. adults (22.8%) experience mental illness annually, only nearly half (47.2%) of people with mental illness receive treatment, according to the National Alliance on Mental Illness (NAMI). Furthermore, the U.S. Centers for Disease Control and Prevention (CDC) reports that depression alone causes an estimated 200 million lost workdays each year, costing employers $17 billion to $44 billion. Depression directly impacts an organization by increasing absenteeism, triggering disability insurance and lowering productivity in the workplace.

Employer Considerations

Workplace conversations about mental health aren’t an annual event. Mental Health Awareness Month can be leveraged to kick off conversations, but keeping the momentum and support going year-round is important. Consider the following ways employers can support employee mental health during this month and beyond:

Launch a companywide Mental Health Awareness Month campaign. Initiatives will vary by organization, but employers can share articles, posters or other materials from organizations like Mental Health America, NAMI and the CDC. Employers can also host lunch-and-learn events, promote available company resources and benefits, and encourage employees to take a confidential mental health screening. Additionally, green is the official awareness color for mental health, so employers could ask workers to wear green on a predetermined day in May.

Create a supportive culture. An organization dedicated to preserving employee mental health and fostering a stigma-free environment will succeed in its efforts to support employee mental health. Make sure that any mental health initiatives are aligned with core values, goals and ethics.

Evaluate benefits offerings. Reviewing an organization’s offerings to ensure coverage for mental health services is essential to creating a culture that supports employee mental health. An employee assistance program (or EAP) can help employees get the mental health support they need, including telemedicine options.

Offer flexible scheduling. A lack of work-life balance can negatively affect an employee’s mental health. Employers across the country are embracing workplace flexibility to help employees better balance their work and personal lives.

Encourage employees to prioritize their mental health. Companies that spread awareness about prioritizing mental health tend to have happier and healthier employees. Distributing information about recognizing the signs of mental illness, stress and burnout and improving overall wellness will keep mental health a top-of-mind concern. Moreover, to create a culture that supports employee mental health, employers can build mental health days into their paid time off programs and encourage employees to take a mental health day if they need one.

Focus on reducing the stigma. An organization that focuses its efforts on normalizing mental health discussions will see improvements in employee mental health. Consistently communicate to employees that getting help is a sign of strength—not weakness—and that the company supports them.

Train managers. To ensure that no stigma surrounding mental health exists at an organization, it’s important that employers properly train management and supervisors to recognize the signs of mental illness, excessive workplace stress, workplace bullying and fatigue. Consider standardizing a procedure for managers to follow when mental health situations present themselves so employees have a consistent experience as they are directed to the resources.

Promote your support. An organization that promotes its support for employees’ mental health will see a change in its workforce. Employees who know their employers are there to support them are more likely to be transparent when they experience mental health struggles, which may help them get back on their feet as quickly as possible.

Check in with employees. Employers who regularly check in with their employees to see how they are doing and whether they need additional resources are better equipped to change their benefits offerings to support employee mental health. For example, employers can address this properly if an annual or biannual employee engagement survey reveals that most employees feel extremely stressed out at work. Conversely, suppose employers only check in after a problem has been brought to their attention. In that case, it’s more difficult to properly manage and develop a strategy that works for all parties involved.

When organizational leadership talks openly about mental health, employees are more likely to feel comfortable about the concept and reach out to managers or co-workers if they’re struggling. Workplace conversations about mental health aren’t just an annual observance. In fact, developing a company culture that supports employees by openly discussing and addressing mental health—without its associated stigma—takes time. However, Mental Health Awareness Month can be a good time to kick off conversations and keep the momentum and support going year-round.

Contact Vista Insurance Group for additional workplace mental health resources.

Source: Zywave

Preparing for Hurricane Season

Fri, 28 Apr 2023 13:47:47 GMT

With hurricane season on the horizon, it’s essential for those in areas at risk of these severe weather events to be prepared. Even if your home has not been previously impacted by hurricanes, new research suggests that over 13.4 million new properties may be exposed to increased hurricane-related risks in the next 30 years.

Hurricanes are capable of producing winds in excess of 155 mph and causing catastrophic damage to coastlines and several hundred miles inland. Additionally, hurricanes can also lead to storm surges along the coast and cause extensive damage from heavy rainfall. All Atlantic and Gulf of Mexico coastal areas are subject to hurricanes. Parts of the Southwest United States and the Pacific Coast also experience heavy rains and floods each year from hurricanes spawned off Mexico. The Atlantic hurricane season lasts from June to November, with the peak season from mid-August to late October. The Eastern Pacific hurricane season begins May 15 and ends November 30.

To ensure you are prepared for these storms, consider the following steps:

Understand terminology. Familiarize yourself with the differences between weather event definitions, such as hurricane watches versus warnings:
Tropical cyclone —This is a warm-core, non-frontal, synoptic-scale cyclone, originating over tropical or subtropical waters, with organized deep convection and a closed surface wind circulation about a well-defined center. Once formed, a tropical cyclone is maintained by the extraction of heat energy from the ocean at high temperature and heat export at the low temperatures of the upper troposphere.
Tropical depression —This is a tropical cyclone in which the maximum sustained surface wind speed (using the U.S. one-minute average) is 38 mph (33 knots) or less.
Tropical storm —This is a tropical cyclone in which the maximum sustained surface wind speed (using the U.S. one-minute average) ranges from 39 mph (34 knots) to 73 mph (63 knots).
Hurricane —This is a tropical cyclone in which the maximum sustained surface wind (using the U.S. one-minute average) is 74 mph (64 knots) or more.
Storm surge —This is an abnormal rise in sea level accompanying a hurricane or other intense storm, and whose height is the difference between the observed level of the sea surface and the level that would have occurred in the absence of the cyclone. Storm surge is usually estimated by subtracting the normal or astronomic high tide from the observed storm tide. Storm surge can reach heights well over 20 feet and can span hundreds of miles of coastline.
Storm tide —This is the actual level of seawater resulting from the astronomic tide combined with the storm surge.
Hurricane warning —This is an announcement that hurricane conditions (sustained winds of 74 mph or higher) are expected somewhere within the specified area. Because hurricane preparedness activities become difficult once winds reach tropical storm force, the hurricane warning is issued 36 hours in advance of the anticipated onset of storm-force winds.
Hurricane watch —This is an announcement that hurricane conditions (sustained winds of 74 mph or higher) are possible within the specified area. Because hurricane preparedness activities become difficult once winds reach tropical storm force, the hurricane watch is issued 48 hours in advance of the anticipated onset of storm-force winds.
Tropical storm warning —This is an announcement that tropical storm conditions (sustained winds of 39 mph to 73 mph) are expected somewhere within the specified area within 36 hours.
Tropical storm watch —This is an announcement that tropical storm conditions (sustained winds of 39 mph to 73 mph) are possible within the specified area within 48 hours.

Pack an emergency kit. Gather essential supplies, including food and water, medicine, important documents, flashlights, a radio and extra batteries.

Make a plan. Establish plans for evacuation and ensure all members of your household are familiar with them.

Protect your property. Clear your property of belongings that could be blown around, cover windows and doors and be ready to turn off your power if necessary. Here are some suggestions:
Cover all of your home’s windows. Permanent storm shutters offer the best protection for windows. A second option is to board up windows with 5/8-inch marine plywood, cut to fit and ready to install. Tape does not prevent windows from breaking.
Install straps or additional clips to securely fasten your roof to the frame structure. This will reduce roof damage.
Be sure trees and shrubs around your home are well trimmed so they are more wind resistant.
Clear loose and clogged rain gutters and downspouts.
Reinforce your garage doors. If wind enters a garage, it can cause dangerous and expensive structural damage.
Bring in all outdoor furniture, decorations, garbage cans and anything else that is not tied down.
Determine how and where to secure your boat.
Install a generator for emergencies.
If you live in a high-rise building, be prepared to take shelter on or below the 10th floor.
Consider building a safe room.

Click here for additional hurricane preparedness guidance or contact Vista Insurance Group for advice on protecting your property during hurricane season.

Source: Zywave

2023 Fire Season Expected to Produce Above-Average Activity

Thu, 20 Apr 2023 19:04:58 GMT

The 2023 fire season is predicted to be relatively consistent with historical averages, with a slight increase in intensity, according to AccuWeather’s recently released 2023 US Wildfire Forecast .

Between 60,000 to 75,000 wildfires are expected to occur, potentially burning 6.5 million to 8.25 million acres of land. These figures align with the average of 68,707 fires and 7,000,514 acres burned annually between 2001 and 2020.

Because nearly 90% of wildfires are caused by humans, predicting the number of acres that may be affected by widespread fires is difficult.

Read on to learn more about regional wildfire forecasts, as predicted by AccuWeather meteorologists.

California Wildfire Season May Be Delayed

After a winter filled with rain and snowstorms, California has become the center of attention. The state experienced numerous bomb cyclones and atmospheric rivers, creating a record-breaking snowpack. Although this will push back the start of wildfire season, it will not entirely prevent the outbreak of fires.

High precipitation leads to robust spring growth, which can fuel summer and autumn fires. Severe winter storms that brought down decaying trees and branches will also add to available dried fuel.

California wildfire threat projections are low from April to June. As temperatures rise and conditions become drier, the danger of fires is expected to escalate in July and August.

In Northern California, the peak of the wildfire season is expected from August to September, whereas in Central and Southern California, the most significant threats may occur from September to November, when the critical factors for destructive fires will converge. Lightning strikes due to the North American monsoon can serve as a natural ignition source. The Santa Ana winds, which were absent in most of 2022, can cause wildfire flames to spread rapidly.

Notably, the peak of the wildfire season will coincide with the height of the Atlantic hurricane season.

Wildfire Season in the Four Corner States Delayed

The winter weather pattern that brought storms to California also resulted in substantial rainfall and snowfall in Nevada and the Four Corner states.

This abundance of moisture may delay the onset of wildfires during the spring, but the risk will gradually rise throughout the summer and into the fall.

Northwestern Areas Face Heightened Early Summer Wildfire Risk

The interior Northwest and northern Rockies may experience heat waves alongside the heightened risk of wildfires during the next few months.

Dry periods can result in hot weather, as evaporation rates increase and fuels dry out, creating ideal fire conditions. Significant fires have hit the Pacific Northwest hard in recent years, with the Almeda Fire in southern Oregon destroying 2,357 homes in 2020.

Higher Risk of Florida Brush Fires

Due to dry conditions, an elevated risk of brush fires is predicted in Florida, particularly in late spring.

The threat of fires may subside in early summer as thunderstorms increase, and there may be an early-season tropical system that brings rain to Florida.

Alaska May Have Fewer-Than-Average Burned Acres In 2023

Outside of the western United States, Alaska leads the nation in wildfire activity, with 3.08 million acres burned in 2022, nearly twice the area of Delaware.

While the wildfire-burned acreage in Alaska could be lower in 2023, the numbers may still be substantial. Although most of the fires occur in remote areas, the smoke from these fires can cover the North American sky.

Wildfires May Have Far-Reaching Effects

Vast smoke plumes from fires in Alaska, British Columbia, and the western United States can affect the East Coast, causing a murky sky, a rise in air pollution, and, in severe situations, the odor of smoke, impacting millions of individuals living in the area.

During September 2020, an unprecedented convergence of a historic wildfire season and an extraordinarily active Atlantic hurricane season spread wildfire smoke across the nation.

Major cities such as Chicago, St. Louis, Pittsburgh, Washington, D.C., and New York City experienced hazy skies due to the smoke. Meanwhile, Hurricane Sally struck the Gulf Coast as a Category 2.

During the same month, smoke from fires in California and Oregon was detected as far as Europe.

What’s Next?

Contact Vista Insurance Group today to review your insurance coverage and learn more about wildfire insurance solutions and preparedness.

Source: Zywave

Health Care Industry Trends to Watch

Fri, 14 Apr 2023 14:41:22 GMT

The health care industry is comprised of companies and institutions that provide and coordinate medical services and related goods. These organizations may range in size and specialize in various types of patient treatment and care. This industry plays an important role in the U.S. economy by promoting the continued innovation and advancement of medical solutions, thus contributing to a healthier and, in turn, more productive society.

The health care sector has experienced a number of ups and downs in recent years, brought on by fluctuating market demands amid the COVID-19 pandemic, supply chain struggles, evolving industry technology and ongoing medical inflation issues. Yet, industry spending continues to rise. Specifically, the Centers for Medicare and Medicaid Services reported that the nation’s health care expenditure reached $4.3 trillion in 2021, and is anticipated to climb to $6.2 trillion by 2028.

What’s more, there are several industry trends that could pose challenges in the coming months and years, including labor shortages, the expansion of telemedicine, the adoption of artificial intelligence (AI) and machine learning (ML) tools, and the utilization of wearable safety technology. As such, it’s best for health care organizations to closely monitor these sector developments and adjust their risk management practices as needed. This article provides more information on health care industry trends to watch.

Labor Shortages

The past few years have been met with labor shortages across industry lines. Further, the pandemic motivated some employees to reevaluate their job expectations, thus prompting additional workforce adjustments and exacerbating such shortages. The health care sector is no exception to this trend. After all, the pandemic made many health care positions more dangerous and difficult, placing extra pressure on medical professionals and pushing some of them to exit the field due to burnout. According to credit rating agency Fitch Ratings, health care job openings reached a record high of 9.2% during 2022, more than doubling the average rate over the past decade (4.2%). Looking ahead, the Association of American Medical Colleges is expecting the country to face a shortage of up to 124,000 physicians by 2034.

Labor shortages can have far-reaching impacts in the medical field, heightening health care organizations’ employee injury rates and associated workers’ compensation exposures. In particular, having fewer workers may force these organizations to extend their existing employees’ shifts and job responsibilities, putting them at greater risk of experiencing overexertion or repetitive motion injuries from patient-handling tasks. Additionally, these employees could be increasingly exposed to violent or aggressive patients on the job, further placing them in harm’s way and driving them toward mental exhaustion. In fact, a recent study conducted by the American Nurses Association found that 25% of registered nurses (RNs) and nursing students have been physically assaulted by a patient or patient’s family member, while half have been verbally abused.

Such shortages can also elevate health care organizations’ professional liability exposures. For example, overworked and mentally fatigued employees tend to be less alert and focused on their job tasks, making them more likely to make mistakes. In the medical field, such errors could lead to incorrect treatment methods or ineffective care, therefore threatening patient safety. According to recent data from market research company OnePoll, 90% of RNs believe the overall quality of patient care has declined because of staff shortages. Compounding concerns, patients or family members of those who receive improper care due to treatment errors could ultimately take legal action against the health care organizations responsible for such care, holding them liable for the resulting damages.

As a result, it’s critical for health care organizations to invest in measures aimed at attracting and retaining employees. These measures may include offering more competitive wages and benefits packages (e.g., tuition reimbursement options, flexible work arrangements and additional paid time off); implementing employee assistance programs and other staff well-being initiatives; and promoting a positive, safe working culture that empowers employees to voice their concerns regarding hazards and other incidents they encounter on the job. Apart from prioritizing employee attraction and retention strategies, health care organizations may also want to utilize technology to automate certain workplace processes, increase operational efficiencies and, subsequently, mitigate labor concerns.

Telemedicine

Telemedicine (also called telehealth) refers to the facilitation of medical treatment and services via digital communication methods, such as text messages and video calls. While telemedicine options were available before the pandemic, they surged in popularity over the past few years as a growing number of individuals began seeking virtual treatment for their ailments.

Telehealth can offer benefits to both patients and health care organizations. For instance, patients can utilize telemedicine to receive timely and simplified access to treatment for a variety of injuries and illnesses, as well as avoid potential problems that could arise when obtaining in-person services (e.g., exposure to ill patients, troubles navigating abnormal clinic hours, difficulties finding specialized treatment and challenges traveling to medical facilities). In addition, health care organizations can implement telemedicine to help reach a larger number of patients, boost operational efficiencies, combat rising medical expenses, expand diagnoses and screening options, and enhance chronic disease management capabilities. Even as the pandemic subsides, telehealth is likely here to stay (and evolve). According to research conducted by management consulting firm McKinsey & Company, telemedicine utilization is currently 38 times higher than pre-pandemic levels, accounting for 17% of patient visits across medical specialties.

Nevertheless, telemedicine can still present significant risks for health care organizations. Namely, virtual care comes with cybersecurity concerns. Considering patient data is an attractive target among cybercriminals and, as these hackers’ methods continue to advance, organizations that leverage telehealth could be particularly vulnerable to security breaches. Complicating matters, telemedicine regulations are constantly changing, leaving health care organizations with substantial compliance considerations.

Additionally, because telehealth visits don’t permit medical professionals to conduct physical examinations, they could miss out on crucial patient information while providing virtual care, possibly resulting in misdiagnoses, delayed treatment and related lawsuits. Telemedicine can also make it more challenging for health care organizations to ensure consistent treatment standards and expectations between in-person and digital services, as social cues may vary between these mediums. In some cases, poorly managed telehealth offerings could even end up fragmenting care rather than simplifying it, creating confusion and frustration among patients.

To reduce these risks, health care organizations should consider strategies such as using solid cybersecurity measures (e.g., multifactor authentication, network segmentation and antivirus tools) across virtual care platforms; consulting legal counsel to maintain compliance with applicable telehealth laws; requiring employees to diligently document important details during virtual visits to limit the likelihood of missing vital patient information; setting appropriate standards of care and social cues for employees to follow when providing digital services; and ensuring clear communication protocols between treatment channels to minimize fragmented care concerns.

AI and ML Tools

In addition to telemedicine, AI and ML tools have also become more heavily utilized throughout the health care industry. According to the latest data from market research company Global Industry Analysts, AI in the health care sector was valued at $14 billion in 2020, and is projected to skyrocket to nearly $120 billion by 2027. Examples of AI and ML offerings may include customer service chatbots, virtual care assistants, early diagnosis and imaging tools, and data storage and processing devices. Such technology has emerged as a way to help health care organizations customize patients’ treatment plans and automate certain tasks by analyzing medical records, detecting potential patterns and highlighting opportunities for enhanced health outcomes at rapid rates. This technology can be leveraged by medical professionals of varying experience levels and specialties to treat patients with a number of conditions, saving time and money among all parties involved.

Similar to telemedicine, however, AI and ML tools also pose exposures for health care organizations. Primarily, much of this technology operates based on human-generated algorithms and inputs, which means they may contain mistakes and biases. These issues could elevate the risk of treatment errors, misdiagnoses and patient discrimination incidents, therefore opening the door for increased liability concerns and associated litigation. Further, AI and ML tools carry cybersecurity risks, as both internal and external threat actors could attempt to infiltrate this technology for malicious purposes—whether it’s to steal patient data or interfere with treatment processes.

To limit such exposures, health care organizations should carefully and regularly review AI and ML tools for mistakes and biases, making changes when necessary. Implementing strict access controls and threat detection software across this technology may also be valuable to help mitigate possible cyberthreats.

Wearable Safety Technology

To keep a closer eye on patients’ conditions, some health care organizations have started leveraging wearable safety technology. This technology refers to a variety of electronic devices that patients can wear comfortably on their bodies while they engage in their daily routines. Such devices can be used to assess patients’ vital signs (e.g., heart rate, body temperature and blood pressure), track their activity levels and manage any chronic diseases they may have. By using wearable safety technology, medical professionals can better monitor patients in various settings and empower them to be more accountable for their own health. This technology can also help minimize employees’ workloads and decrease operational costs.

Yet, there is always a risk of this technology malfunctioning or delivering inaccurate data, leaving patients susceptible to injuries, illnesses or death if they aren’t treated in time. In some cases, health care organizations could even be held liable for these errors and the related damages. Mirroring other medical technology, such devices could also create cybersecurity concerns, as cybercriminals may seek access to patient data. To reduce these risks, health care organizations should perform extensive testing on wearable safety technology before offering it to their patients; review product manufacturers’ contracts to determine their specific liabilities as it pertains to technology malfunctions or errors; and equip devices with advanced encryption capabilities to safeguard patient data.

Conclusion

There are several trends currently impacting the health care sector. By staying on top of these developments and mitigating their exposures, health care organizations can position themselves to maintain operational success. For additional risk management guidance, contact us today.

Source: Zywave

8 Tips for Creating an Inclusive Culture to Attract and Retain Employees

Mon, 03 Apr 2023 21:09:16 GMT

Employers struggling to attract and retain workers may be overlooking a leading driver of turnover: inclusion. In fact, nearly 40% of American employees would switch jobs to be part of a more inclusive workplace culture, according to a survey by QuestionPro Workforce and EQ Community.

Many employers who cultivate inclusive spaces notice positive impacts on employee morale, productivity and their companies’ bottom lines. Specifically, inclusion can be a valuable component of employee retention, as employees who feel included and appreciated are generally more likely to stay at an organization. Conversely, an inclusive work environment can be highly attractive to workers in a competitive labor market. People want to work for a company where they feel accepted and can be their true selves.

This article defines inclusion and provides tips for creating an inclusive workplace culture to help attract and retain employees.

Inclusion Defined

Inclusion refers to a cultural and environmental feeling of belonging. It can also be defined as how welcome, comfortable and valued an employee feels within their workplace. Inclusion is a two-way street that’s achieved when employees are accepting of their colleagues and, in turn, feel appreciated by these peers.

If employees don’t feel empowered to be themselves and present new ideas, their unique skills and knowledge may not be utilized to their full potential. In an inclusive work environment, every team member can feel confident expressing their ideas.

How to Create an Inclusive Culture

While an effective company culture often hinges on the behaviors of organizational leaders, here are some additional steps employers can take to foster more inclusive spaces:

1. Review workplace policies. Employers should evaluate organizational policies to ensure they effectively outline inclusive employee behaviors and expectations, as well as adopt programs that promote welcoming and harassment-free spaces. Employers can also utilize these policies to highlight their company values and provide examples of how employees can live up to them.

2. Expand employee benefits. Employers should review their benefits offerings and perks to ensure they are inclusive. Examples of inclusive benefits include mental health benefits, paid parental leave, fertility and adoption benefits, and flexible scheduling.

3. Build an inclusive onboarding experience. The onboarding process plays a critical role in making employees feel seen and included. An effective onboarding experience can help employees feel welcomed from their first day on the job. As such, employers should continually review their onboarding processes by asking new hires for feedback and making sure employees feel valued. Since the onboarding process sets the tone for a person’s tenure at an organization, a commitment to inclusion can strengthen workforce attraction and retention efforts.

4. Check in with employees. Regular one-on-one meetings can help employees feel a greater sense of belonging when their managers, supervisors and co-workers check in on them both personally and professionally. Yet, employers should remember to be sensitive with any information obtained during these meetings and only publicly mention what others are comfortable being shared. Doing so can help build honesty, trust and respect.

5. Ask for input. It’s essential for employers and company leaders to continually ask employees what they can do to promote inclusion and make workers feel accepted. This can be accomplished by establishing an ongoing dialogue.

6. Give employees a voice. Employers and managers should make it a priority to encourage employees to speak up and share their thoughts, thus promoting more inclusive spaces. For example, if someone has the floor during a meeting but is interrupted, managers can step in to moderate and let the original speaker continue. Alternatively, if an employee rarely speaks up, managers can check in with this individual privately to ask how they can be better included in team conversations.

7. Create a psychologically safe space. Being psychologically safe means employees feel secure in taking risks and being vulnerable in front of others. Employers can help create these spaces by supporting environments where employees are comfortable and managers know how to intervene if they see others being disrespectful.

8. Consider employee resource groups (ERGs). Many employers have found success with ERGs, which are voluntary, employee-led groups aimed at fostering more inclusive workplaces. They're usually targeted toward employees who share certain characteristics (e.g., gender, military experience, ethnicity, religion or other interests), but all employees are generally welcome to participate in such groups. Employers can support ERGs by developing policies and frameworks to ensure members have all necessary group resources.

Every aspect of the workplace has the potential to impact inclusion. The overall goal is for organizations to create spaces where everyone feels welcome and accepted, therefore motivating employees to show up to work engaged and be their most authentic selves.

Summary

Employees who do not feel that their workplace is accommodating—or do not feel included and welcome—are less likely to be loyal toward their employer. Furthermore, employees who feel that way may quickly leave an organization and find a new employer. An inclusive company culture can help employers retain more employees and cultivate work environments that appeal to today’s workforce, thus attracting additional talent.

Contact Vista Insurance Group for more information about workplace inclusion initiatives.

Source: Zywave

How to Prevent Employee Fraud

Thu, 23 Mar 2023 19:13:56 GMT

Employee fraud—when an employee knowingly lies to, steals from or deceives their employer to make personal gains — occurs in approximately two-thirds of U.S. small businesses, according to the National Federation of Independent Business. In fact, small businesses face a higher risk of employee fraud than large corporations. This is often due to a lack of basic accounting controls and a higher degree of misplaced or assumed trust.

While employee fraud can take place in many forms, the following are the most common types:

Asset misappropriation —This type of fraud accounts for the vast majority of fraud schemes and includes check forgery, theft of money, inventory theft, payroll fraud and theft of services.
Bribery and corruption —These methods include kickbacks, shell company schemes, bribes to influence decision-making, manipulation of contracts or substitution of inferior goods.
Financial statement fraud —This type of fraud is the rarest and costliest. It entails manipulating financial statements to create financial gains for an individual or entity.

It can be difficult for employers to spot employee fraud. However, 40% of employees who steal from their work have experienced prior HR red flags, according to the Society for Human Resource Management. Therefore, it’s important for small businesses to be able to identify employee behavior and other signs that may be indicative of fraud occurring within the organization. Employers should look out for the following:

An employee living beyond their means —If an employee’s lifestyle suddenly doesn’t match their salary, this could indicate fraud.

An employee working longer hours than usual —Coming in early, staying late, working on weekends, or not taking sick leave or annual paid time off could be signs of employee fraud. Fraudsters often avoid taking time off because they don’t want people to review their work. In addition, fraudulent activities often occur outside of regular business hours, when the employee is less likely to get caught.

An employee experiencing financial difficulties or family issues —An employee who is going through financial problems or experiencing family issues might be more inclined to commit fraud to lessen their stress.

An employee being secretive —If an employee is reluctant to share their processes or have someone review their work, they may be committing employee fraud.

An employee who works in a position to commit fraud —Oftentimes, employees who have worked at a business the longest are the most likely to commit fraud. This could be because they have more trust, know the company’s weaknesses or can control what appears on paper.

Accounts receivable that are suspicious or inconsistent —Excessive or unexplained cash transactions, unreconciled bank account statements, sudden activity in previously inactive accounts, or an unusual increase in expenses, supplies or employee reimbursements can all be indicative of employee fraud.

Employee fraud can be particularly devasting for small businesses, as they often have fewer resources available to help them recover from malicious acts. As such, it’s important for small businesses to take the following action to prevent employee fraud:

Create a tip hotline. Whistleblower tips are the most common way employee fraud is discovered. Therefore, employers should take tips seriously and set up a hotline to catch fraud earlier and minimize losses.

Conduct internal audits. Internal audits and management reviews uncover over 25% of employee fraud schemes, according to Association of Certified Fraud Examiners. Conducting regular audits may not only allow employers to discover any misconduct but also deter employees from committing fraud in the first place.

Perform background checks. Contacting references, performing background checks and conducting online research can help small businesses vet candidates before hiring them.

Implement internal controls. While employees need a certain level of trust and authority to do their jobs, internal controls can help detect and hopefully deter fraudulent activities. Such controls can include clearly defining what constitutes fraud in the employee handbook, setting up an anonymous hotline and performing monthly bank reconciliations.

Create a culture of integrity. Consistent controls and policies can create a culture that empowers staff to be accountable for their actions and minimize risk while driving compliance.

Purchase insurance. Insurance, particularly commercial crime insurance, can help small businesses protect themselves from business-related financial losses.

By taking precautions and implementing internal controls, small businesses can effectively limit their risk of employee fraud.

Stronger Hurricanes to Put More Properties at Risk

Thu, 16 Mar 2023 22:24:52 GMT

Over 13.4 million properties not currently exposed to hurricane-force wind damage will face increased risk over the next 30 years as climate change propels more intense storms, according to new research from First Street Foundation.

“Compared to the historic location and severity of tropical cyclones, this next generation of hurricane strength will bring unavoidable financial impacts and devastation that have not yet been priced into the market,” said Matthew Eby, founder and CEO of First Street, a nonprofit research and technology group.

First Street’s models also estimated the average annual loss due to tropical cyclone damage rising to $19.9 billion, with about $1 billion in higher exposure in Florida alone.

Other regions that face lower exposure now will be even more at risk in the future, First Street warned. The study projected losses in the Northeastern United States to increase by 87% over the next three decades as hurricanes track further north.

“The northward increase in hurricane activity may significantly impact buildings that have not been built to a code that considers the wind speeds they will likely face over the next 30 years,” researchers said. “Additionally, the count of properties with any average annual loss from wind will increase by about 55%, with about 2.2 million newly-impacted properties by 2053.”

The total number of storms isn’t expected to change, but the intensity will, according to the report. Historical evidence already illustrates rising risk: The proportion of major hurricanes (Categories 3, 4, and 5) has quadrupled since the 1980s, from 10% of all tropical cyclone events to over 40% today. First Street attributed the change to rising air and sea-surface temperatures fueling storms, as well as increased moisture levels in the air and shifts in wind patterns.

“Hurricanes affect communities within the United States more frequently and severely than other natural disasters,” said First Street in the report. “As a result, tropical cyclones have caused a total of $1.194 trillion (consumer price index-adjusted) in losses in the United States between 1980 and 2022, with an average cost of approximately $21 billion per event.”

Understanding evolving risk can help insurers set property rates more accurately, assist communities in developing resiliency plans and allocating resources, and give property owners information on how to better protect themselves and their homes and businesses, First Street said.

For more risk management news and insights, contact Vista Insurance Group today.

The Impact of Employees’ TikTok Posts

Tue, 07 Mar 2023 15:47:30 GMT

Some employers have banned employees from using TikTok to reduce potential risks or to align with their other social media policies. Others have attempted to leverage their employees’ TikTok usage to strengthen employee engagement and improve their marketing efforts. Since TikTok seems to be employees’ social media platform of choice for discussing work, it’s vital that employers understand how employees’ TikTok usage and posts can impact their organizations. Read about TikTok’s potential impact on employers, employee use of the platform, the risks of negative posts and other considerations.

Understanding TikTok’s Impact

Some employers have benefited from their employees’ TikTok posts. Videos posted on TikTok and other platforms can provide employers with free marketing and expand and strengthen their brand. The marketing employees provide their employers through TikTok posts can often be invaluable. Employee posts tend to have a much wider reach and impact than an employer’s efforts. Additionally, Generation Z tends to value the transparency and authenticity TikTok provides. Unlike an employer’s paid or targeted marketing efforts, employees can be organic influencers for their employers. This type of marketing can help organizations connect with clients and customers in a powerful way. For instance, employees’ TikTok posts can provide organic marketing opportunities that build a community around an employer’s product or service fueled by loyal and passionate employees.

Sanctioning TikTok Participation

TikTok can provide employees with an opportunity to collaborate with their employers, share ideas and solve problems. Many employees want to be positive ambassadors for their employers on social media. These employees can have a strong understanding of their employer’s customer base. Allowing employees to contribute to an organization’s sponsored TikTok posts can build trust and loyalty with employees and improve an employer’s marketing efforts. For example, Starbucks allows certain employees to post about their work experiences on TikTok. These employees share their favorite products, explain how they are made and teach customers how to order them. These posts have resulted in millions of views. This approach to social media can make an organization more attractive to job applicants, particularly Generation Z and millennials, whereas 5 strict TikTok and other social media policies may persuade job applicants and employees to look elsewhere for work.

Some organizations find ways to allow employees to use TikTok in a positive and rewarding manner. Since most employees are likely active on TikTok or other social media, some employers allow employees to represent their brand professionally and enthusiastically by establishing social media guidelines and encouraging employees to participate. For example, employers have created employee advocacy programs where employees help promote their employer on TikTok and other social media platforms. This may help expand an organization’s reach and strengthen its brand organically while engaging its employees and making them feel valued and more invested in the organization, thus aiding in attraction and retention efforts. Since it may be difficult to prohibit employees from making any TikTok postings at work or during work hours, allowing employees to make sanctioned posts can be a positive alternative.

Reducing the Risk of Negative TikTok Posts

While allowing employees to post on TikTok can be beneficial, it can also have drawbacks. For most employers, employees present the greatest risks for revealing negative or unflattering information. Sometimes employees’ work-related social media posts can highlight trust issues in the workplace or a lack of redress options for employees. Employees who feel undervalued or unheard may turn to TikTok to find support and air their grievances. Some employees may resort to posting about their job because they have found traditional HR channels unhelpful or unsatisfactory. Additionally, employees may not feel safe bringing certain workplace issues or concerns to their employer, so they use TikTok as an outlet even if these actions violate their employers’ social media policies. These posts can damage an organization’s brand and reputation, leading to lost business, employee turnover and potential lawsuits.

Employers can reduce the likelihood of negative employee posts by identifying and addressing risks and negative workplace trends before they go public by communicating with employees frequently and conducting cultural assessment surveys. This can help employers identify what employees are concerned about and who raises those concerns. For example, an employer may learn that male employees feel more comfortable raising certain workplace concerns compared to female workers. Employers can use this information to update policies and implement training to create a safer, more supportive environment for all employees.

To reduce the risk that employee-sanctioned TikTok posts will injure or harm an employer’s brand and reputation, employers can do the following:

Establish strong TikTok-related or general social media policies.
Educate and train employees on social media policies.
Cultivate strong and positive workplace culture.

Considering Privacy and Legal Issues

When establishing TikTok-related policies and guidelines, employers’ most immediate concerns are privacy and confidentiality. By posting during the workday, employees frequently capture work-related moments by recording videos in offices, conference rooms and common spaces. These videos may record confidential information, such as trade secrets, customer or client names, audio from work meetings or information regarding products, services, systems and internal communications. Confidentiality and privacy concerns can also be triggered by remote workers posting while they work. An example of this would be a remote employee creating a TikTok video during a meeting or inadvertently capturing proprietary information from their computer monitors. Additionally, employers need to protect against cybersecurity threats and issues. Many employees may use their laptops and cellphones for work and personal use, and this is becoming increasingly common as more employers embrace remote work. This usage can present cybersecurity issues for organizations if employees are saving passwords on multiple devices.

Employers may want to consider how permitting employees to post on TikTok while at work could harm their organization’s reputation. Some employees may post unflattering messages about their employers, such as complaints about working conditions or product liability issues. Employees may also discuss or show inappropriate or illegal activities, like being intoxicated. Not only can sharing this information on social media affect employers negatively and hurt their reputation, but it can also create legal issues, so it’s critical that employers ensure their policies are consistent with all relevant and applicable employment and labor laws.

Source: Zywave

IRS Scams Cost Taxpayers Millions Every Year

Thu, 02 Mar 2023 16:00:20 GMT

According to the Internal Revenue Service (IRS ), thousands fall prey to IRS scams every year, accounting for millions of dollars lost. Scammers often take advantage of the fact that tax season is a high-stress time of year to trick people into giving them financial or personal information. Continue reading to learn how to recognize and avoid IRS scams this year.

Common IRS Scams

IRS scams typically occur when criminals impersonate IRS agents, debt collectors or government officials to convince individuals to send them money or personal information. Every year, the IRS compiles a list of the most common taxpayer scams, known as the Dirty Dozen . Here are a few examples:

Phishing —Criminals impersonate reputable companies or government agencies via text, email or social media posts to try and get sensitive information, passwords, payment information or account details.
Fraudulent phone calls —Scammers pretending to be the IRS calling to say you owe money for taxes. During these calls, scammers may try to get you to send money with a prepaid debit card, gift card or wire transfer. They may also threaten you with arrest or other punishments if you don’t comply.
Identity theft —Criminals illegally obtain your tax login information and use it to steal your personal and financial information. In some cases, scammers may file a fraudulent tax return, have a refund deposited in your account and demand you forward the money to their “collection agency.”

Avoiding IRS Scams

Here are tips for recognizing and avoiding IRS scams:

Remember that the IRS will not contact you via email, social media or other digital channels.
Pay attention to any missing tax documents, bills or expected letters that should’ve been delivered by mail, as this may be a sign of identity fraud.
Create strong passwords to make it more difficult for criminals to gain access to your accounts.
Don’t access tax-related documents over public Wi-Fi. Use a secure private network connection instead.
Research accountants or tax preparers ahead of time to ensure they’re legitimate.
Listen for threats. The IRS will not threaten to arrest, punish or deport you.

Reporting IRS Scams

If you believe you’ve been a victim of an IRS scam, contact your financial institution immediately and ask to close any affected accounts. Report identity theft at IdentityTheft.gov and file a complaint with the Federal Trade Commission .

Source: Zywave

Cybersecurity Tips for Small Businesses

Wed, 15 Feb 2023 16:59:55 GMT

Cyberattacks and data breaches not only threaten large employers but also present a major concern for small businesses. In many instances, small businesses can be more vulnerable to cyberattacks because they lack the resources, protocols or proper systems to protect themselves. According to the Identity Theft Resource Center’s 2022 Business Impact Report, nearly 45% of small businesses and self-employed individuals experienced a security or data breach between July 2021 and July 2022.

Cybercriminals frequently target customer and employee data. While external threat actors are the most common causes of data breaches, incidents involving remote workers, malicious insiders, third-party vendors and human error also leave small businesses exposed. Here are some essential tips to help small businesses protect themselves from cyberattacks:

Use strong passwords and authentication. Requiring employees to use unique passwords—changing them frequently—and implementing multi-factor authentication can reduce the risk of cybersecurity breaches.
Train employees. Establishing security policies—such as requiring strong passwords and creating internet use guidelines—and training employees to recognize threats can be one of the best ways organizations can protect themselves.
Backup critical data. Organizations should regularly backup critical data, like word processing documents, spreadsheets, databases, financial and HR files, and account information. If small businesses can’t back up data automatically, they should do it at least weekly, storing it offsite or in the cloud.
Use virus protection software. Ensuring security software, web browsers and operating systems are up to date can often be the best defense against viruses, malware and other online threats. Employers should update virus protection software regularly and scan all computer files after each update.
Install firewalls. Firewalls prevent outsiders from accessing data on a private network and act as a gatekeeper between an organization’s computers and the internet. Employers should ensure their operating system’s firewall is enabled. If any employees work remotely, organizations should ensure those workers’ systems are firewall protected.
Secure networks. Small businesses should ensure their Wi-Fi networks are secure, encrypted and hidden, and router access is password protected.
Control access to computers. Lost or stolen computers can make an organization vulnerable to cyberattacks. Employers can reduce this risk by creating separate user accounts for each employee and requiring strong passwords. Employees should ensure their devices are locked when not in use.

The internet allows small businesses to reach new customers and can improve productivity, but it’s not without risk. By establishing cybersecurity protocols and creating a culture of security, small businesses can protect themselves and their data from growing cybersecurity threats. Contact us for guidance regarding how to protect your small business.

Source: Zywave

The Future of Work-from-Anywhere Arrangements

Wed, 08 Feb 2023 18:40:42 GMT

American workplaces have changed drastically over the past three years. The COVID-19 pandemic propelled remote work into the spotlight and created new working norms. In fact, many employees now work remotely or could if they wanted.

The increase in remote workers doesn’t necessarily mean that organizations have fully addressed a work-from-anywhere (WFA) work model, given its complexity. However, some organizations have already adopted such a model, allowing employees to decide where they work best, wherever that may be. This article explores WFA and its implications and future in the workplace.

What Is WFA?

While 54% of people consider themselves “anywhere workers,” only 5% of remote jobs are “WFA” roles, according to the career website FlexJobs. The reality is that most remote jobs still require employees to be based in a specific location (e.g., city, state, region and country). For a job to truly be WFA, the organization needs to have a policy, as several distinctions and implications come with this highly flexible work arrangement.

The WFA model comes with the same benefits as remote work: expanded talent pool, increased employee productivity and engagement, and promotion of work-life balance. In turn, organizations may experience higher employee retention rates or organizational savings. Some cons of the WFA model include a lack of real-time collaboration and the potential for various time zones.

WFA Considerations

Remote work is well-established in today’s workplaces thanks to the COVID-19 pandemic. However, the implications of work locations in various states or even countries are a bit more unclear. In fact, many WFA situations could create significant administrative challenges or costly problems for employers.

“WFA” is a broad term and can mean different things at different companies. There could be various ways to interpret or enforce workday components such as working hours, time tracking and performance measurement. Accordingly, employers who offer WFA arrangements must have a policy explaining all workday aspects. This step provides parameters and expectations for employees while protecting employers who grant WFA requests.

Before organizations allow employees to WFA, there are several considerations to factor in:

Employee benefits—Benefits, in general, will be a major topic of discussion for employers developing their packages for a dispersed workforce. With workers spanning state lines (or even outside the country), offering meaningful benefits (e.g., health plan and commuter benefits) that employees need and can use will be challenging.
Labor implications—Labor and employment laws of the state where a WFA employee resides may apply, so an employer should check employment laws (e.g., posting requirements, paid family leave and paid sick leave) and consider all implications. WFA could also mean employees are in various countries, which adds an international compliance layer.
Salary policies—Organizations may pay the same salary range based on job title, the market rate depending on the cost of living wherever the employees live or the national averages for each job title or role. Also, salary thresholds for exempt employees and minimum wage and overtime rules for nonexempt employees vary across the country and should be considered.
Tax implications—WFA employees could subject their employers to sales, income, and local or city gross receipts taxes that wouldn’t matter in an on-site workplace model. For example, employers withhold applicable state and local income taxes based primarily on where an employee performs services.
Workers’ compensation—Employers cover employees under workers’ compensation policies based on where they work. If employees are based in a state different from the company, there could be additional expenses for employers.

Due to the various implications of being a WFA company, it’s important to consult legal counsel before organizations consider and accept such requests.

Summary

Many of today’s workers want the freedom to work where they work best. However, it’s not as simple as only allowing a WFA model. In addition, a WFA policy isn’t the right fit for every organization. Employers interested in WFA arrangements should closely examine their company, organizational goals and workforce to ensure a flexible work model is suitable for business needs and doesn’t introduce compliance challenges.

Reach out to Vista Insurance Group for guidance on the latest employee attraction and retention trends.

Source: Zywave

What You Should Know About Flood Insurance

Mon, 30 Jan 2023 19:55:12 GMT

Flooding is a risk to any business, whether you are inland or near the coastline. In fact, in the past five years all 50 states have experienced floods, and at least one in four businesses that shuts down from a natural disaster never reopens. According to the U.S. government, the average commercial flood claim in the past five years has been around $89,000, and the average property damage due to flooding adds up to more than $3.5 billion annually.

Floods have many causes and can occur anywhere in the country, but here are some of the most common events that lead to flooding:

Storm surges in hurricane-prone areas
Flash flooding, caused by periods of intense rainfall
Mudslides, caused by long, heavy rain periods on a hill or mountainside
Snowmelt, caused by the still-frozen ground unable to absorb excess water
Ice jams, which are formed when an ice chunk flowing in a river or stream blocks, dams or narrows passageways, causing overflow
Urban development, such as new construction and/or ground paving, which alters the topography by not allowing the land to drain properly

A general policy will not cover flood damage, and this type of insurance is only available through the National Flood Insurance Program (NFIP). The NFIP will cover all the types of floods discussed above, including mudslides, though it is important to note that it does not cover landslides even if they are caused by heavy rain. To make sure you get a fair price, every commercial flood agent answers to this government agency; therefore, flood insurance is backed by the government but sold through private insurers.

There are plenty of misunderstandings about flood insurance. At Vista Insurance Group, we have compiled some information about the NFIP and its coverage to help you understand its benefits.

NFIP Coverage: Who Should Buy It?

There are two main flood hazard level standards and several sub-categories that the NFIP uses to categorize a company’s risk for flooding and to determine premiums.

Moderate-to-low-risk buildings, which are in zones B, C and X. These areas are outside of the one percent annual chance floodplain, areas of less than one percent annual chance of sheet-flow flooding where average depths are less than one foot, areas of less than one percent annual chance stream flooding where the contributing drainage area is less than one square mile or areas protected by levees.
High-risk buildings, which are in zones A and V.
Zone A buildings are within a certain floodplain distance from a river, lake or stream.
Zone V buildings are within a certain distance from the coast and exposed to natural disasters associated with the ocean.

For a complete list of sub-categories and to map out which zone your business falls in, visit www.floodsmart.gov , the official website of the NFIP.

If your commercial property is in a high-risk flood area and you have a mortgage from a federally regulated or insured lender, then you are required to purchase a flood insurance policy. However, the NFIP reports that one-third of all annual claims paid are for policies in low-risk communities. Because new land development can increase flood risk by changing natural runoff patterns, it is a good idea to purchase flood insurance even if you are not near a large body of water.

Associated Costs

Flood insurance premiums are based on several factors, which could raise or lower the amount your company would have to pay. These factors include the following:

Building’s age, height and occupancy
Your company’s location within the building
The location of the lowest floor in relation to the elevation requirement on the flood map (only applicable to newer buildings)
The deductible you choose and the amount of building and contents coverage

If you are located in a low-risk area, you are eligible for the Preferred Risk Policy, which would cover your building as well as its contents for just a few hundred dollars a year. Even though federal disaster assistance is available to flood victims, it is usually in the form of a loan that must be paid back with interest. For example, if you received a $50,000 federal loan at 4 percent interest, your monthly payment would be around $240; however, by comparison, a $100,000 flood insurance premium could cost your company less than $100 per month.

What Gets Covered

There are two types of commercial building flood insurance coverage, and you can opt to buy one or both.

Commercial Contents covers inventory, merchandise, machinery and any other contents your business has up to $500,000.
Commercial Building covers your company’s building and contents up to $500,000 each. If your company does not own the building, NFIP will cover up to 10 percent of improvements you made to the space.

In addition to these two types of building coverage, the NFIP will also cover debris removal during the cleanup process. Also, if your business takes steps to protect against or prevent flood damage, you may be eligible for lower rates. For more information on how to protect against the risk of flood damage to your business, go to www.fema.gov/information-property-owners .

If you have further questions about flood insurance coverage and its provisions, Vista Insurance Group is here to help. Call 803.726.0550 to find out how you can extend your coverage to keep your business safe and running–no matter what happens.

Source: Zywave

Prioritizing Mental Health Amid Inflation-related Anxiety

Tue, 17 Jan 2023 18:45:57 GMT

Financial stress can be a burden and negatively impact your mental health. During this period of increased inflation, it is essential to understand the relationship between financial and mental wellness so you can apply strategies to help you improve both areas of your life.

According to an American Psychiatric Association poll, 87% of Americans are anxious or very anxious about inflation. Luckily, there are ways that you can manage your anxiety to help mitigate these effects. Consider the following tips:

• Reframe your mindset. Shifting your perspective on inflation can be helpful. Try thinking about it like the weather: You may not be able to control the weather, but you can dress for it.

• Lean on family and friends. Talking with those close to you can help you stay grounded and reduce anxious feelings. Inflation can affect anyone, so it may help to discuss these struggles.

• Seek professional help. Waiting to get help when you need it will only lead to worse mental—and possibly physical—health. Talk to your doctor or a licensed mental health professional.

• Work with a financial planner. Planning out your spending with a professional, if feasible, can help eliminate uncertainty around managing your money.

• Connect with the community. Community-based organizations can help connect those who qualify with programs that provide food, rent assistance, financial guidance and other resources.

• Avoid negative media. Consuming too much negative content can increase feelings of anxiety. Set a limit for how much news-related information you consume each day.

To deal with the current economic uncertainty, focus on what you can control. Talk to your supervisor about available financial and mental health resources.

Source: Zywave

5 Small Business Attraction and Retention Trends for 2023

Sun, 08 Jan 2023 23:45:48 GMT

Employers of all sizes are currently facing attraction and retention challenges. These challenges will likely continue through 2023. Successful efforts to win over employees can require a time investment and carry high costs. Unfortunately, small businesses often don’t have excess resources to invest in attraction and retention efforts in today’s worker-friendly labor market; however, they have the agility to respond to the employment market with new strategies. Amid current labor obstacles, many smaller employers are focusing on what’s feasible in 2023.

To aid in developing effective attraction and retention strategies, small businesses can consider the following five trends for 2023:

1. Focusing on benefits —Last year’s labor challenges revealed how offering competitive benefits is critical when vying for talent. The importance of employee benefits is expected to increase in 2023. With the current economic downturn, small employers likely have limited funds for benefits this year. As a result, many smaller organizations are tailoring their benefits offerings to meet the specific demands of current and prospective employees, including offering nontraditional benefits (e.g., financial wellness programs and pet insurance). The best benefits offerings will vary in each organization depending on the needs of the workforce, but they can be leveraged to attract and attain the right employees.

2. Creating opportunities for advancement —In 2022, many small businesses focused on upskilling employees and providing avenues for career advancement out of necessity to address their labor challenges. Creating paths for career growth has proven to be one of the most effective employee retention strategies since employees generally feel more satisfied at work when they’re provided opportunities to learn new skills and gain experience. Due to the current economic uncertainty, this will remain a key attraction and retention strategy for small businesses in 2023.

3. Offering a flexible work environment —Surveys overwhelmingly indicate that many employees continue to prefer flexible work options afforded to them since the outset of the COVID-19 pandemic. These offerings include work-from-home arrangements, hybrid work schedules and flexible work schedules. The feasibility of a small organization being able to offer these types of flexible arrangements will vary, but these offerings remain a priority for many workers today.

4. Building a strong workplace culture —In 2023, more employees are prioritizing working for organizations with a strong culture. Even if resources are limited, small employers can foster a desirable workplace. A strong and healthy workplace culture can help retain employees and, in turn, create an environment that’s attractive to prospective employees. This may include training managers to identify employee burnout, designate fair workloads, be transparent about pay and create an inclusive environment.

5. Improving employee recognition —Many employers prioritized employee recognition programs, such as celebrating anniversaries and milestones, to improve retention rates in 2022. These programs allow organizations not only to celebrate outstanding employees but also to signal to others that their hard work doesn’t go unnoticed. As these efforts don’t carry high costs, they’ll be an effective retention strategy for small businesses in 2023.

Like most organizations, small employers face a set of challenges with attracting and retaining the employees they need in 2023. Fortunately, small businesses have the ability to stay agile and should consider what strategies they can leverage to compete in today’s labor market.

Reach out to Vista Insurance Group to learn more about these trends.

Source: Zywave

No Holidays for Hackers

Wed, 14 Dec 2022 19:26:15 GMT

Ransomware events that occur on holidays and weekends cause much higher revenue losses than cyber incidents occurring on weekdays—primarily due to lower staffing levels—according to a survey of over 1,200 cybersecurity professionals.

Security firm Cybereason found that nearly half (44%) of organizations drop security staffing levels on holidays by as much as 70% andnder a quarter of respondents reduce their security staff by 90% from normal weekday levels. Just 7% of organizations have at least 80% of their security professionals available on holidays and weekends.

The impact is clear: one-third of respondents said they saw a much greater financial toll from weekend and holiday attacks, up from 13% in 2021’s study. The losses were even higher in the transportation and education sectors, where the number of respondents reporting higher revenue losses jumped to 48% and 43%, respectively.

“Ransomware actors tend to strike on holidays and weekends because they know companies’ human defenses often aren’t as robust at those times,” said Lior Div, Cybereason CEO and co-founder. “It allows them to evade detection, do more damage and steal more data as security teams scramble to mobilize a response.”

The study also revealed slower risk assessment times during breaks, with 60% of respondents saying it took them longer to fully understand the scope of the attack. This, in turn, slows down recovery time and adds costs.

Cybercriminals already know holidays and weekends are prime attack times, especially as the strain of relentless cyber events takes its toll on security professionals. In fact, multiple high-profile cyberattacks have occurred on holidays. In 2021, hackers made headlines on Mother’s Day weekend (Colonial Pipeline), Memorial Day weekend (meat supplier JBS Foods) and the Fourth of July (software vendor Kaseya). This year might be even worse, according to a few respondents.

“This November/December is going to be particularly rough, as it's going to be the first time some people have been able to see their families since the pandemic began. All of that means that people will be further from the office and less likely to check alerts,” said one security analyst in the legal sector.

The survey indicated a few areas where organizations can improve their resilience to off-hours cyber events. More than a third (36%) of organizations said they had no business continuity plan, despite observing other companies’ struggles to bounce back. Of those firms that have already experienced a ransomware event, nearly a quarter (24%) still don’t have a ransomware-specific contingency plan.

Some industries are better prepared than others. Specifically, the IT/telecommunications sector and construction firms were most likely to be prepared, with 84% and 81% of respondents indicating they have plans in place for weekend and holiday events. Manufacturing (67%) and health care (65%) were less prepared, despite these sectors’ potential for high revenue losses or loss of life.

Don't take chances during the holidays! Protect yourself and your business. Contact us for advice on the best policy for coverage in these situations.

Chimney Maintenance

Fri, 09 Dec 2022 03:29:04 GMT

In spite of the ambiance and relaxation that a fireplace provides, there are also inherent fire dangers. To combat the risk of fire or inhalation of dangerous carbon monoxide (CO) gas, it is important for you to make chimney care part of your home maintenance plan. Follow these tips to keep your chimney in good shape and prevent fire hazards.

General Maintenance Tips

Both metal and masonry chimneys require maintenance so that smoke and flue gases are ventilated properly. At the very least, you should have your chimney inspected annually before each heating season. In addition:

· Have your chimney cleaned on a regular basis to reduce creosote buildup.

· Make sure your masonry chimney has a flue liner in place to reduce the possibility that the masonry could absorb creosote.

· Replace damaged liners, as they will allow creosote to accumulate and heat to escape.

· When hiring someone to reline your chimney, only allow the contractor to use a product that has been tested and listed by a nationally recognized testing laboratory.

Specific Maintenance Tips

There are two types of chimneys that require specific maintenance to limit the risks in your home.

1. Fireplace inserts—Make sure the vent is connected to the flue of the chimney.

2. Factory-built metal chimneys—Do not use natural gas, fuel oil vents, well casing, stovepipe or other material in the chimney, as they cannot withstand the heat in the wood burner.

Keep These Precautions in Mind

Do not vent more than one heater or appliance into a single flue, as major complications can arise. If one fuel-burning appliance is connected to a flue and then you attach another appliance, such as a water heater, you are running the risk of various problems—including heavy creosote accumulation, deterioration of the flue or CO gas drifting into your home.

For additional home maintenance guidance and homeowners insurance solutions, contact us today.

Source: Zywave

Stick to a Budget This Holiday Season

Fri, 02 Dec 2022 19:59:34 GMT

The holidays can be a stressful time of year, and money is one of the leading causes of holiday anxiety for Americans.

The best time for holiday budgeting begins early in the year, when smart shoppers account for expenses associated with the holiday gift season in their monthly budgets and buy presents here and there throughout the year.

Additionally, resourceful budgeters flock to stores after Christmas to scoop up decorations at bargain bin prices with an eye toward future holidays. However, if you’re like most people, you likely have not planned very far ahead and could find yourself feeling the pinch in January. But don’t despair—with proper accounting and a handful of smart shopping ideas, it is possible to find the perfect gift for everyone on your list and stay within your budget.

Here are a few pointers to help you stick to your holiday budget and manage your seasonal financial stress:

Make a list and check it twice. Review your shopping list carefully. Does everyone listed on it truly need to be there?
Set limits. Write down a maximum dollar limit for each person, vow to stay within that limit and then track how much you actually spend.
Shop early. The best window for holiday shopping is between Oct. 1 and Dec. 1.
Buy in bulk. Have something on hand for those unexpected presents. A case of wine or elegant candles are great ideas.
Be realistic. Ask yourself if you can really afford to buy gifts—don’t feel obligated to buy them if you can’t afford them.
Talk to your friends and family about scaling back. Ask about doing a gift exchange instead of buying gifts for everyone. If you find these things too embarrassing or unworkable consider going the homemade gift route.
Shop online. Some of the best bargains won’t be found in stores. Many retailers will waive shipping costs during the holidays. Plus, why spend the days before your holiday celebrations wasting gas and battling crowds for items that may not be in stock?
Get a holiday job. Even with a good budget, the extra holiday shopping can pinch the pocketbook. Consider working a seasonal job.

Using these tips can help you stick to your holiday budget, which, in turn, can help you keep your holiday-related stress in check. For more health and safety tips this holiday season, contact us today.

Source: Zywave

6 Costly Retirement Mistakes to Avoid (Infographic)

Sat, 19 Nov 2022 15:00:02 GMT

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Do You Have a Will?

Tue, 15 Nov 2022 14:00:12 GMT

A will is an important estate-planning document that can help you transfer your assets with ease. Having a proper will can make the difference between a smooth transfer of assets and a probate nightmare.

Let’s learn more about what wills are, why you need one, and some tips on how to create or update your will.

What Is a Will?

A will, or a Last Will and Testament, is a legal document that outlines your intention for the distribution of your assets after your death. It is an integral part of a comprehensive estate plan and helps your loved ones avoid legal and financial loopholes and know what to do with your assets. These explicit instructions are essential and can help everyone avoid a lot of headaches.

Wills vs Trusts

When you’re researching estate planning documents, you have likely come across both wills and trusts. While both documents can help dictate what you want to do with your assets when you’re gone, there is one main difference.

The primary difference between a will and a trust is that a trust takes effect as soon as it’s created and signed, while a will does so only after you pass away.1 There are also two different types of trusts to consider: irrevocable and revocable.

Irrevocable trusts are trusts that can’t be changed or canceled after they have been signed.
Revocable trusts can be changed, and the grantor has the right to change the terms or even end the trust.

Some other differences between wills and trusts are that a will requires probate to transfer items to beneficiaries, but trusts can avoid probate. In addition, wills are public record and trusts can remain private. Because a trust takes effect right when it’s created, it can be used if you become incapacitated and unable to make decisions independently.

Do You Need a Will?

We face so many financial obligations every day, so should creating a will be at the top of your list? Most financial experts say yes, you need a will. Even if you don’t have substantial assets to transfer, a will can still help your family feel more confident about your wishes. In addition to making the transfer of assets easier, here are a few benefits of having a will2:

It allows you to distribute your property and protect your loved ones after you pass away.
It can provide peace of mind to you and your family.
You can plan for those in your care (e.g. naming a legal guardian for your children or pets).
It may prevent family conflict.
It can eliminate confusion over assets.
It can ensure that your assets go to the people you want to have them.
It can help you build a lasting legacy.
You can use your will to benefit charity.

These are just a few of the many benefits of having a will.

How to Create a Will

Creating a will can be a straightforward process, or it can involve the help of attorneys and financial professionals. Also, the process will depend on where you live because every state has different requirements for creating a will.

Generally, the first step in creating a will is to determine what you want to include. You should include instructions for passing along your assets after your death, including ownership and other instructions. You may consider working with an attorney to ensure that your will contains everything it needs.

Next, you will likely sign your will in front of two witnesses, and these two witnesses will also sign your will. Some states require a self-proving affidavit that you sign in front of a notary, other states require your will to be notarized, and some states don’t require any special self-proving documentation as long as you sign and witness your will correctly.3

Whether you have $10 worth of assets or $10 million, creating a will is a good idea to give your family more guidance after you pass. Wills help make the transfer of assets easier and give you and your family more peace of mind.

The Connection Between Health & Wealth

Thu, 10 Nov 2022 17:34:38 GMT

Thinking About Paying Off Your Child's Student Loans? 5 Things to Consider

Tue, 08 Nov 2022 19:51:19 GMT

College tuition is at an all-time high. As of 2022, the average student loan debt is about $39,000 per student, and the average monthly student loan payment is nearly $400. ¹ It's no wonder parents want to help their children pay off their student loans as quickly as possible. Paying off this debt could help set your child up for success as they make important financial choices, such as applying for a mortgage.

But is paying off your child's student loans early always the best option? Here are five things to consider when deciding whether to help your child pay off their student loans.

Consider Any High-Interest Debt First

Before helping your child pay off their student loans, you should consider if you have any high-interest debt yourself. Generally, student loans feature a moderately low-interest rate (around 4%-7% depending on the loan).

If you have debt at a higher interest rate, such as credit card debt or a personal loan, you may want to consider paying off that debt first before helping your kids. Prioritizing debt repayment by interest rate can help you decide whether you should help pay off student loans or other debts first.

Your Payments May Qualify as Tax-Free Gifts

Some parents may want to pay off their child's student loans but are afraid of triggering a gift tax. Luckily, there are a few ways around this tax.

According to the IRS, the tuition you pay for someone may qualify as a non-taxable gift. ² However, this is applicable only when the payment is made directly to the school or university. With that in mind, if your child has any student loans that were issued by the university, payments towards these expenses may be tax-free. Talk to your CPA or a tax professional to be sure.

Another way to avoid this gift tax is to stay within the gift tax exclusion for the year. In 2022, the gift tax exclusion is $16,000. ³ This means that each parent can give up to $16,000 a year ($32,000 total). As long as your gift stays within these parameters, you shouldn't have to pay a gift tax.

Discuss a Repayment Plan

If you are worried about your child's ability to make their student loan payments on time and want to help, it might be worth having a conversation with them, as well as their lenders, to see if there are any repayment plans available. Most loans, especially federal student loans, offer repayment plans that can be stepped up or down depending on your child's income. ⁴

Research Loan Forgiveness Options

In addition to student loan repayment plans, there are also some loan forgiveness plans available that your child might qualify for. ⁵ For example, there are student loan forgiveness options for students who pursue certain careers in the public sector.

In the wake of the COVID-19 pandemic, the government rolled out more forgiveness options, including COVID-19 Emergency Relief. Before you create a plan to help pay off your child's student loans, see if they qualify for loan forgiveness. As of this writing, federal student loan repayment will resume on September 1, 2022. ⁶

Don't Forget Retirement

As important as it is to take care of your children, it's also important to take care of yourself. As you get closer to retirement age, it might make more sense to contribute the money you would have used for your child's student loans to your retirement savings. Your children have long careers ahead of them to make payments on their loans. As your earning years come to a close, it's important to prioritize retirement savings because you won't be able to work forever.

Paying off your child's student loans is a generous thing to do, and it might make sense for your financial situation. Before diving in completely, it's important to consider possible repayment plans, loan forgiveness, tax implications, and other debt and savings goals.

What's In Your Estate Plan?

Wed, 02 Nov 2022 17:46:27 GMT

The older we get, the more critical it is to ensure our affairs are in order and have an estate plan. But what exactly is an estate plan, and what should be included?

Estate Plan Basics

An estate plan is the management and organization of your assets should you pass away. It also includes documentation determining who can make medical and financial decisions should you become incapacitated.

Most people think that estate planning just includes a will. While a will is a beneficial document, other documents should be included in your estate plan.

A will (also called a last will and testament) specifies how you want your estate to be distributed. Besides dividing up your assets, a will also appoints guardianship for minor children. This last item is essential to designate; you don’t want a court determining who your children should live with in the event of your death. If your estate includes a revocable trust, a will is still needed. Called a “pour-over will,” the goal of this document is to cover any assets that may have not made it over to the trust. ¹
An advanced medical directive (medical power of attorney) establishes who can make medical decisions for you should you become unable to do so. A medical power of attorney also allows you to designate a conservator should you become mentally incapacitated. ¹
A living will details to your physicians what type of care you want to receive at the end of your life when you face a terminal illness or are in a vegetative state. Do not resuscitate (DNR) and do not intubate orders are listed here. While a last will and testament is designed to specify your wishes upon your death, a living will determines what happens to you while you’re still alive. ¹
A financial power of attorney , much like a medical power of attorney, appoints someone to handle your financial affairs should you become unable to do so. There are two different types of financial powers of attorney: a durable power of attorney and a springing power of attorney. A durable power of attorney goes into effect as soon as the documents are signed, whereas a springing power of attorney only goes into effect if you become mentally incapacitated. ¹
A revocable living trust is a more detailed document that details not just what happens after you’re gone or incapacitated but what happens while you’re alive, too. At its core, a revocable trust is a vehicle to hold your assets; meaning that until assets are moved over, it’s essentially just an empty vessel. If you have a more complicated estate, a revocable living trust can help manage a variety of assets and beneficiaries. As the trustee, you’ll still have control over your assets while they’re in the revocable living trust, and assets held in the trust will avoid probate after your death. ^1,2

Estate plans are a necessary part of life, albeit one that no one really wants to think about. But having an estate plan is one of the kindest things you can do for your loved ones. You’ll gain peace of mind knowing that your family is taken care of, no matter what life throws at you.

The Importance of Wellness in Retirement

Wed, 26 Oct 2022 17:44:46 GMT

You can do all the retirement planning you need in order to strategize for total financial freedom in retirement. But without the physical health to enjoy it - you’re missing out on the quality of life you envisioned. Wealth alone does not determine how much you will enjoy retirement. It’s a combination of health and wealth that will help you get the most out of your independence and freedom in retirement. Below are a few ways in which you can work to maintain or improve your overall wellness as you enjoy your time of financial independence.

What Is Wellness?

According to the Global Wellness Day organization, wellness is “a good or satisfactory condition of existence; a state characterized by health, happiness, and prosperity.”1 The idea of wellness stems farther than physical health, as it is meant to encompass every aspect of your quality of life - mental health, social well-being and physical state. And while developing a retirement plan can help to make sure your financial wellness is covered, it’s up to you to take care of the rest.

Addressing Wellness in Retirement

We’ve broken the biggest areas of wellness down into three categories: mental health, social well-being and your physical state. Below are the reasons why each area of wellness is important in retirement and what you can do to maintain or improve on them.

Mental Wellness

The temptation to turn your brain off during retirement can be a big one. Considering you’ve spent decades problem solving for 40+ hours a week, the idea of relaxing and unwinding in front of the television or along a sandy shoreline can be extra appealing. But in order to stay mentally well and ward off cognitive decline, it’s important to incorporate mental exercises into your daily retirement routine. Staying sharp and keeping an active mind in retirement can help you to enjoy your retirement for longer.

One possible way of keeping your mental health in check? Consider taking on a new job in retirement, even just as a part-time position. A 2009 study revealed that those who were working in retirement had levels of well-being in both health and overall satisfaction that were on par with those who were younger and not yet retired. And beyond satisfaction, working in retirement has proved in some cases to effectively ward off cognitive decline and diseases. A study of nearly half a million retiree-aged participants showed that for every additional year worked, the risk of dementia was reduced by 3.2 percent.2

Other activities to help your mind stay sharp in retirement could include:

Picking up a new instrument
Learning a new language
Journaling
Reading books
Doing puzzles & games
Social Wellness

Isolation and loneliness are growing issues, especially in older adults. And entering into retirement is a transitionary time in which one’s social well-being may become compromised. Leaving a job means leaving coworkers you see every day, and if you choose to move to a retirement destination, you may be leaving all other neighbors, community friends and even family behind.

Isolation can leave you feeling completely detached from your friends and family, both physically and psychologically. It’s something more than 8 million adults over the age of 50 experience, and prolonged isolation can have the same impact on your health as smoking 15 cigarettes a day.3

The good news is, there are plenty of ways to find social fulfillment in retirement, they just require some effort and initiative on your part. These could include:

Volunteering in your community
Finding a roommate
Taking or teaching classes
Pursue a hobby or passion that takes you outside of the home
Physical Wellness

You’ve heard the phrase “use it or lose it,” and this saying definitely rings true when it comes to maintaining your physical wellness in retirement. Older adults are already at a bit of a disadvantage physically. As our bodies grow older, we’re facing physical changes such as slowing metabolisms, weakening immune systems and loss of muscle mass (to name a few). But just like your mental health, you may be tempted to enter a state of permanent relaxation in retirement. However, it’s important to take care of yourself physically. Doing so can help prevent both physical and cognitive decline, both of which can dramatically reduce your overall well-being. Some ways to stay physically well in retirement include:

Joining an exercise class
Garden and maintain your yard
Adopting a dog
Enjoying walks around your neighborhood
Creating (and sticking to) an exercise routine

When you put a special focus on maintaining your overall wellness in retirement, it can be some of the greatest years of your life. And while you can work with a professional to ensure your financial well-being is cared for, it’s up to you to make sure the rest is following suit as you head toward retirement.

Back to Basics: 9 Common Insurance Mistakes to Avoid

Mon, 17 Oct 2022 16:58:18 GMT

Having at least a basic insurance plan is essential for anyone. While many jobs cover your insurance needs, not all of them do. It's important to figure out what insurance plans you need and what works best for you and your family.

Choosing an insurance plan can be complicated, so when doing so, try to avoid these mistakes.

Mistake #1: Not Having Insurance

Whether you're trying to save money or think you're young enough to get by without it, foregoing basic insurance coverage can be an incredibly costly mistake.

When it comes to health insurance, you have options. If your employer does not provide coverage, you can choose to obtain a policy through the Marketplace. There are different levels of coverage, from catastrophic (cheapest) to gold (typically the most expensive). If cost is an issue, even obtaining catastrophic coverage can be better than nothing. As you compare plans, look into what premium tax credits may be available to use, as these can help offset your monthly premium costs.

Mistake #2: Not Having Enough Insurance

Less comprehensive coverage or basic insurance plans can equate to lower premiums every month. The problem is - you’re likely to make up the difference anyway when it comes to your deductibles and out-of-pocket expenses. By not giving yourself enough insurance coverage upfront, you’re taking a gamble of whether or not you’ll actually need to use it. One broken bone or a fender bender could quickly cost you more than if you had paid the higher premiums upfront.

Mistake #3: Over Insuring Yourself

Talk to an insurance agent to figure out the right amount of insurance for your specific circumstances. Just as you don’t want to under-insure yourself and your possessions, over-insuring could be equally as costly.

Mistake #4: Not Asking for Discounts

If you don’t ask for a discount, then you may never know if you would have gotten one or not. There are possible hidden discounts you can qualify for, but if you don’t tell your agent and ask what you can get, they will never know that they need to apply them to your account.

Mistake #5: Not Looking Around for New Policies

You should be shopping around for a new basic insurance policy every few years. In some instances - especially if certain circumstances have changed - you can save money by updating your policy or switching providers. Some insurance companies may even offer discounts based on things like where you work or where you went to college.

Mistake #6: Misunderstanding Your Policy

Make sure that you understand what your policy covers, under what circumstances it can be used and what you can still expect to pay out-of-pocket. Having a thorough understanding of your policy now means avoiding unwelcome surprises when it’s time to file a claim.

Mistake #7: Opting Into Group Life Insurance Automatically

If you choose to take advantage of your company’s group life insurance policy, remember that your rates aren’t locked in - they could go up. Consider any additional life insurance offerings provided through the workplace carefully before signing on. You should know exactly what you’re paying for, and if the premiums are worth the potential benefits in your particular situation.

Mistake #8: Getting Rid of Long-Term Care Insurance

If you’re notified that your premiums are about to rise, you may be inclined to drop your long-term care policy. However, it’s important to remember that purchasing a new plan may cost even more, especially since you are now older than when you first purchased your original policy. And foregoing long-term care coverage altogether puts you and your family at greater risk of future financial turmoil.

Mistake #9: Picking a Health Policy on Premium Alone

You may think that you are saving money because the premium is low on your insurance. Insurance companies, however, can sometimes find less obvious ways to make their money back.

Some examples include:

Higher copays during doctor visits
If a doctor’s visit is out of your network, out-of-pocket costs may be higher
Prescription drugs may be more expensive

Consider how often you visit the doctor’s office annually and any prescriptions you’re currently on. This can help you find an insurance policy that covers what you need without breaking the bank.

Whether you’re looking at health, auto, life or any other insurance policy, there are plenty of considerations to keep in mind. If you are choosing a plan through your work, make sure you are speaking to someone who works at the insurance provider to get all the answers you need. If your work does not cover your insurance, speak to representatives at the insurance company and your financial professional to help make these decisions.

Social Security: Past, Present, and Future

Wed, 05 Oct 2022 18:19:56 GMT

Throughout human history, economic security has taken many forms. For the ancient Greeks, it was stockpiling olive oil. Olive oil could be stored for long periods of time; it could also help with nutrition during times of famine. During the Middle Ages, security took the form of guilds and societies that began to pay life insurance benefits to their members. ¹

Here, we will explore the history and future development of the Social Security program in the United States: the historical background, the current state, and future projections.

The History of Social Security

The US Social Security program was born out of one of the gravest economic crises in the world: the Great Depression. While the Great Depression affected virtually every country in the world, the United States was hit the hardest. The Great Depression came on the heels of the stock market crash of 1929, also called the Great Crash, and it was the third economic collapse the United States had experienced in less than 100 years (the first in the 1840s and the second in the 1890s).

The previous economic crises had given rise to the development of Civil War pensions and company pensions, but neither of them was comprehensive enough to deal with the strife caused by the Great Depression. Following the Great Crash, unemployment rose to above 25%, about 10,000 banks failed, and the GDP fell by almost half, from $105 billion to $55 billion. These economic strains continued in the 1930s, with over millions of people unemployed and most of the elderly population being dependent on someone to care for them. ¹

After several years of continued economic turmoil, President Franklin D. Roosevelt announced his plan to create a Social Security program, and the Social Security Act was officially signed into law on August 14, 1935. The main goal of the Act was to pay retired workers (aged 65 and older) a continuing income and establish several other welfare provisions. ¹

How Social Security Works Today

Today, Social Security is considered an integral part of most Americans’ retirement strategies. In 2020 alone, 69.8 million Americans received benefits from programs administered by the Social Security Administration (SSA), with 5.8 million new people receiving some form of Social Security in that year alone. ²

Social Security is funded largely through payroll taxes on a “pay-as-you-go” model, with the current workforce’s contributions being used to fund the benefits for the current Social Security benefits. The plan, as well as the hope, is that by the time today’s workforce is set to retire, the younger generations will still be contributing to the program to fund Social Security for the next generation of retirees. ²

The Future of Social Security The 2021 annual report of the Social Security Board of Trustees announced that funds for Social Security would be exhausted by 2034. This was a year ahead of the projections made in the previous year’s report. While this announcement may seem catastrophic, what this actually means is that cash reserves for the program will be exhausted, and retirees in 2034 could see their benefits reduced to 78%. ^3,4

It is difficult to say for certain what the future of Social Security will be. The hope is that Congress will act in time to resolve this shortage of funds problem. Regardless of what happens to this program, it is important to make sure that you have other strategies in place for your retirement so that, irrespective of the developments in Washington concerning Social Security, you can enjoy your golden years.

Retirement Strategy: Preparing to Retire Early

Wed, 28 Sep 2022 15:43:28 GMT

Is it your goal to be retiring before you turn 60? How about before you turn 50? If so, you might want to think twice before you make the move. If your heart is set on leaving work early, be sure you leave with the right mindset and the right estimation of your financial potential.

Retire with a realistic picture of your income needs.

In late 2015, the Center for Retirement Research at Boston College surveyed 400 private sector employers. Those employers estimated that 25% of their employees between 50 and 60 years old lacked the financial resources to retire even at the traditional retirement age. If you’re like most Americans, your retirement expenses will be roughly 75–80% of your pre-retirement expenses. 1 So, you need to determine if the income derived from your 401(k), 403(b), pension, or other sources can generate that. Remember, you can’t receive any Social Security benefits before age 62.

Retire with the idea that you’ll live to be 100.

With recent advances in health care, you might become a centenarian. That means your income streams may need to last 20, 30, 40, or even 50 years. Any income streams that you have today may need to be supplemented or adjusted due to unforeseen needs and inflation. Many new retirees make the mistake of withdrawing income at too high a rate in the first few years after leaving work. They live “high on the hog” for a while, only to discover, to their chagrin, that their retirement nest egg is shrinking because they are spending more than their portfolios can earn back. Additionally, you may also have to pay for health insurance if you retire before age 65. All of this may point you in the direction of part-time employment rather than total retirement.

Retire with purpose.

Leaving work behind can be exhilarating. But after the first few months of fun, you may also face the question, “Now what?” Early retirement is better with a plan for purposeful and meaningful living regardless of your finances.

If you do a Google or Yahoo! search with the right keywords, you’ll come across a number of articles about people who chose to retire late. They kept working out of passion or necessity. If that’s not for you, and you don’t want to work much longer, talk to me, and we’ll take a look and see if you are financially prepared to retire. I’ll share my professional insight and discuss your options.

How do you picture your future?

If you are like many people who are contemplating retirement, your view is likely more pragmatic compared to your parents. This doesn’t mean you must have a “plain vanilla” tomorrow. Even if your retirement savings are not as great as you would prefer, you still have lots of potential to design the life you want.

With that in mind, here are some key things to think about.

What do you absolutely need to accomplish?

If you could only get four or five things done in retirement, what would they be? Answering this question might lead you to compile a short list of life goals. While they may have nothing to do with money, the financial decisions you make may be integral to achieving them.

What would revitalize you?

Some people retire with no particular goals at all. Others are simply burnt out. After weeks or months of respite, ambition inevitably returns. They start to think about what pursuits or adventures they could embark on to make these years special. Others have known for decades what goals they will pursue, and yet, when the time to do so arrives, those goals may unfold differently than anticipated and may even be supplanted by new ones.

In retirement, time is your most valuable asset. With more free time and opportunities for reflection, you might find your old dreams giving way to new ones. You may find yourself called to volunteer as never before or motivated to work again in a new context.

Who should you share your time with?

Here is another profound choice you get to make in retirement. The quick answer to this question for many retirees would be “family.” Today, we have nuclear families, blended families, extended families; some people think of their friends or their employees as family. You may define it as you wish and allocate more or less of your time to your family as you wish (some people do want less family time when they retire).

Regardless of how you define “family” or whether or not you want more “family time” in retirement, you probably don’t want to spend your time around “dream stealers.” If you have a grand goal in mind for retirement, you may meet people who try to thwart it and urge you not to pursue it. (Hopefully, these people are not in close proximity to you.) Reducing their psychological impact on your retirement will increase your happiness.

How much will you spend?

We can’t control all retirement expenses, but we can control some of them. The thought of downsizing may have crossed your mind. You can also lose one or more cars (and the insurance that goes with them) and live in a neighborhood with extensive, efficient public transit. Ditching landlines and premium cable TV (or maybe all cable TV) can bring more savings. Garage sales or making donations can have financial benefits while also helping you reduce clutter, either generating cash or a federal tax deduction.

This article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your overall tax strategy.

How are you preparing for retirement?

This is the most important question of all. If you feel you need to prepare more for the future or reexamine your existing strategy in light of recent changes in your life, conferring with a financial professional experienced in retirement approaches is a smart move.

1 . https://crr.bc.edu/wp-content/uploads/2015/04/IB_15-7_508.pdf

Social Security: Choosing When to Claim

Tue, 20 Sep 2022 15:07:02 GMT

One of the most critical decisions you can make regarding your retirement is when you choose to claim Social Security. Deciding when to claim Social Security can make a difference in your monthly bottom line.

Before You Retire

Your monthly Social Security Benefit amount is calculated based on the number of years you have worked and the taxes you have paid into the Social Security Benefits program. Social Security counts the years you have paid taxes as “credits” for years that you have worked. For example, if you were born in 1929 or afterward, you must have 40 credits to receive Social Security benefits when you retire. This is equal to about 10 years of work.1

Your benefit amount is also calculated by the number of credits you have earned during your working years. Fortunately, the Social Security Administration has made it easier for you to verify your expected benefits by setting up an online account. It is worth double-checking your earnings to catch errors, if any, and factor in your expected benefits as you strategize for retirement.1

What Age Should You Claim?

There are several ages that should be considered when deciding when to claim Social Security.

Early Retirement Age: The earliest age you can claim Social Security benefits is 62. However, if you claim Social Security early, you'll receive a lower monthly payment as compared to not waiting until the full retirement age.1,2

Full Retirement Age: This is the age when you are eligible to receive the full amount of your Social Security benefits. The full retirement age is calculated based on the year you were born. For example, for those born between 1943 and 1954, the full retirement age was 66. If you were born between 1955 and 1960, the full retirement age goes up to 67.1,2

Delayed Retirement Age: You can also delay the claim of your retirement benefits until age 70. If you wait until then, you will continue earning benefits. However, benefits stop accruing at age 70, so there may not be any reason to delay the claim of benefits past age 70.1,2

Deciding when to claim Social Security benefits is an important decision to make as you approach your retirement age. Talk with your financial professional to make sure that you work together to decide the best time for you to apply for Social Security.

Retirement Strategy: How Much Should I Save?

Tue, 13 Sep 2022 14:40:39 GMT

"Will I outlive my retirement money?" This is one of the top fears for people who are starting to prepare for their retirement years.

Determining how much money you need in retirement is a process. It shouldn't be a number that you pull out of thin air.

The process should include looking at your current financial situation and developing an approach based on your goals, time horizon, and risk tolerance. The process should take into consideration all your potential sources of retirement income, and also may project what your income would look like each year in retirement.

We all have our "blue sky" visions of the way retirement should be, yet our futures may unfold in ways we do not predict. So, as you think about your "second act," you may want to consider some life and financial factors that can suddenly arise.

You may see retirement as an extension of the present rather than the future.

This is only natural, as we all live in the present, but the future will arrive. The costs you have to shoulder later in retirement may exceed those at the start of retirement. As you may be retired for 20 or 30 years, it is wise to take a long-term view of things.

You may have a health insurance gap.

If you retire before age 65, what do you do about health coverage? You may shoulder 100% of the cost.

Suppose you become disabled or seriously ill, and working is out of the question. How will you make ends meet?

Age may catch up to you sooner rather than later.

You may stay fit, active, and mentally sharp for decades to come, but if you become mentally or physically infirm, you need to find people you can trust to manage your finances.

You could be alone one day.

As anyone who has ever lived alone realizes, a single person does not simply live on 50% of a couple's income. Keeping up a house or even a condo can be tough when you are elderly. Driving can also be a concern. If your spouse or partner is absent, will someone be available to help you in the future?

These are some of the blind spots that can surprise us in retirement.

They may quickly affect our money and quality of life. If you age with an awareness of them, you will be able to manage the outcome better.

Your workplace retirement account can play a critical role in your overall retirement strategy. However, some people have gone further with such accounts than others, especially recently.

Much has been written about the classic financial mistakes that plague start-ups, family businesses, corporations, and charities. Aside from these blunders, some classic financial missteps plague retirees.

Calling them "mistakes" may be a bit harsh, as not all of them represent errors in judgment. However, whether they result from ignorance or fate, we need to be aware of them as we prepare for and enter retirement.

Timing Social Security.

As Social Security benefits rise about 8% for every year you delay receiving them, waiting a few years to apply for benefits can position you for higher retirement income. Filing for your monthly benefits before you reach Social Security's Full Retirement Age (FRA) can mean comparatively smaller monthly payments.

Managing medical bills.

Medicare will not pay for everything. Unless there's a change in how the program works, you may have a number of out-of-pocket costs, including dental and vision care.

Underestimating longevity.

Actuaries at the Social Security Administration project that around a third of today's 65-year-olds will live to age 90, with about one in seven living 95 years or longer. The prospect of a 20- or 30-year retirement is not unreasonable, yet there is still a lingering cultural assumption that our retirements might duplicate the relatively brief ones of our parents.

Withdrawing strategies.

You may have heard of the "4% rule," a guideline stating that you should take out only about 4% of your retirement savings annually. Some retirees try to abide by it, but others withdraw 7% or 8% per year. Why is this? In the first phase of retirement, people tend to live it up. More free time naturally promotes new ventures and adventures and an inclination to live a bit more lavishly.

Talking About Taxes.

It can be a good idea to have both taxable and tax-advantaged accounts in retirement. Assuming your retirement will be long, you may want to assign this or that investment to its "preferred domain," which means the taxable or tax-advantaged account that is most appropriate for it as you pursue a better after-tax return for your entire portfolio.

Retiring with debts.

Some find it harder to preserve (or accumulate) wealth when you are handing portions of it to creditors.

Putting college costs before retirement costs.

There is no "financial aid" program for retirement. There are no "retirement loans." Your children have their whole financial lives ahead of them.

These are some of the classic retirement mistakes. To help you avoid them, take some time to review and refine your retirement strategy with the help of a dedicated financial professional.

Are You Really Ready to Retire?

Tue, 30 Aug 2022 15:32:23 GMT

Getting close to retirement age? Tired of going to work every day? You’re not alone. But when it comes to retirement, there's a number of changes you'll need to prepare yourself and your family for. With this important milestone around the corner, here's what you may want to be thinking about now.

5 Considerations for Retirement

As you consider transitioning to a work-optional lifestyle, there are a few key considerations to make first. Here are five things every pre-retiree should reflect on and discuss with family before entering retirement.

Your Emotional State

Are you emotionally ready to retire? Your emotional state makes a huge difference in whether or not you will do well once you don’t have to punch a clock, yet this factor is often overlooked. The change from a structured to unstructured lifestyle can be unnerving if you are not prepared. In the beginning, it may feel like you are on a nice long vacation. After a few months with nothing to do however, anxiety can start to creep in. Decide in advance how you plan to spend your time in retirement - whether that looks like leisure time, volunteer work, learning a new hobby, or traveling the world - finding your purpose is a crucial component.

Quality of Life

Once you are emotionally ready, it's time to run some numbers. If you retire today, will you be able to maintain the quality of life you are used to? Seventy-two percent of workers are confident that they will have enough money to live comfortably in retirement.1 But unless you saved very diligently, you may have to make some spending cuts in retirement.

Expenses don’t change once you retire – in fact, they may go up. Consider creating a budget based on the income you will receive and try living on it for a month or two. That should give you a realistic picture of how your life will change.

Insurance

If you are considering retiring before 65, you will need to seriously consider whether or not you can afford medical insurance. It's crucial to find out just how much you'll pay for health insurance and factor that into your retirement budget. Even once you hit 65 and qualify for Medicare, most of your medical expenses will be covered, but not all. With the costs of healthcare consistently rising, this factor should play a large role in your plans. Additionally, many retirees will want to purchase a private Medicare gap policy to cover all the costs that Medicare doesn’t.

Dependents

Do you have any dependents you still need to care for, or do you have grown children who need financial assistance? This could have a significant impact on your finances and put you in a difficult position. Even if your children have graduated from college and moved out of the house, they still may depend on you in other ways that could impact your retirement plans. According to the Employee Benefit Research Institute’s 2021 Retirement Confidence Survey, about half of all retirees report that they have spent money to help support a family member.1

Savings

It is impossible to predict the future and know exactly how much money you will need in retirement, but it is possible to make a plan based on your current lifestyle, past spending, and projected future income. A financial professional can help you determine how much you'll need saved, how much you can comfortably afford to spend, and whether or not you have overlooked any crucial elements, such as insurance or tax implications.

These are just a few considerations when assessing whether or not you’re ready to retire, and having a good plan in place is just as important. Meeting with a financial professional can also help you evaluate where stand financially and put some things in perspective.

When developing your financial plan, it's also good idea to include the things you want to do and experience in life, such as travel expenses and holidays, and other incidentals that are part of your lifestyle. Being financially prudent is important, but so is enjoying your golden years.

Take the time to carefully think through these factors when deciding if now is the time to retire. Doing so will help put you in the best position possible to truly enjoy what this next chapter of life has to offer.

https://www.ebri.org/docs/default-source/rcs/2021-rcs/2021-rcs-summary-report.pdf?sfvrsn=bd83a2f_2

Retirement Checklist: 6 Things To Do Before Claiming Social Security

Tue, 23 Aug 2022 17:29:43 GMT

So you're ready to take the big plunge into the golden years and retire. Congrats! This is a big step for the health and well being of your future, which you have probably looked forward to for a very long time. Now that it's here, you can rest assured in the fact that all your hard work has paid off. You hopefully have all your 401(k), pensions, and investments ready to work for you in retirement, but there are also a few things you need to do before you start to claim your Social Security funds. Before you start claiming those funds be sure you check these six things off of your list to get all squared away. Once completed you'll be well-equipped to receive those funds each month to start your retirement off on the right financial foot.

Checklist Tip #1: Find Out Your Benefit Credits

This is very important to look into. Make sure you have the right number of credits to retire and receive Social Security. It's 40 credits. You can go to ssa.gov to find out if you have the right amount of credits to qualify. Basically, you just need to have worked for a certain amount of time and made enough money to earn Social Security for retirement.

Checklist Tip #2: Check Up On Your Spousal Benefits

You may be able to get Social Security spousal benefits as well if you were married for a certain number of years. This is true even if you are divorced from that spouse. So check in to the fact you may receive better benefits in your spouse or former spouse's Social Security benefit credits.

Checklist Tip #3: Know The Application Is Online

You can complete the application for Social Security retirement benefits online at ssa.gov and the great news is that the application only takes about 15 minutes. How easy is that?

Checklist Tip #4: Make Sure You Are The Right Age

You can start to apply for Social Security retirement benefits at 61 years old and nine months, but you won't receive the benefits usually until you are 66-67 years old depending on when your birthdate falls in the calendar year.

Checklist Tip #5: Know That You Are Ready To Stop Work

This is an important one. Some people don't want to retire. That's completely up to your lifestyle, health, and comfort level. Know that continuing to work can affect the amount money-wise you receive in benefits. So it might not be worth it to keep that part-time job if it's not going to take care of you in your later years.

Checklist Tip #6: Use The Retirement Estimator

Using an online retirement estimator can go a long way into planning how much you are going to have to live on each month. Being on a fixed Social Security income is doable if you are able to plan and budget accordingly. It may mean downsizing your current living situation into something more financially manageable or paying off some debt before you are able to retire.

When you are ready to retire, if you still have questions the Social Security government site can't answer for you, may sure you chat with a knowledgeable financial professional to help you set up your future. That way you can sail into your retirement years with greater ease.

How Could the Behavior Gap Affect Your Investments During This Time of Market Volatility?

Thu, 18 Aug 2022 18:10:56 GMT

“It turns out my job was not to find great investments, but to help create great investors,” writes Carl Richards, author of “The Behavior Gap.”1 From increasing our budget mindfulness to taking a steadier approach to investing, Richards has drawn attention to the way our unexamined behaviors and emotions can be to our detriment when it comes to living a happy and financially sound life.

In many cases, we make poor financial decisions when experiencing panic or anxiety as a result of personal or widespread events. Below we discuss the common financial behaviors driven by such circumstances.

The Behavior Gap Explained

Coined by Richards, “the behavior gap” refers to the difference between a smart financial decision versus what we actually decide to do. Many people miss out on higher returns because of emotionally driven decisions, creating a gap — “the behavior gap” — between their lower returns and what they could have earned.

4 Common Emotions that Can Create a Behavior Gap

#1: Excitement When Stocks Are High

Whether in a bull market or witnessing the hype from a product release, many investors may feel tempted to increase their risks or attempt to gain from emerging investments when stocks are high. This can lead to investors constantly readjusting their portfolios as the market itself experiences upswings. An investor who follows such patterns is likely to do the same with declines and may end up trying to time the market amidst its inevitable, unpredictable movement.

#2: Fear When Stocks Are Low

In response to market volatility, investors may feel the need to choose more secure investments and avoid uncertain or seemingly unsafe investments. When stocks are low, a common response may be to sell and effectively miss out on potential long-term gains.

#3: Engagement in the Search for Alpha

People yearn to make money and take action to do so. Throughout our lives, this emotional desire is likely a constant one. As such, many seek the help of a financial professional to procure above-average returns, otherwise known as “alpha.”1 However, in this search for “alpha,” our humanness — our emotions and our behaviors — may lead us astray. Ironically, studies done by DALBAR have calculated the “average investment return” as compared to investor returns and have shown that investor returns are lower.1 The underlying emotional desire and pursuit of money is exactly the recipe for unwise behaviors in response to emotions — but only if left unchecked.

#4: Short-Term Anxiety and Focus

As humans, viewing aspects of our lives through the lenses of current circumstances is normal. One emotional response to any event, however, is letting the moment consume us, especially if faced with grave consequences — from our personal health being compromised to the loss of loved ones. Many may find it difficult in these times to both think long-term and to remember logic. However, making a rash decision can inhibit the long-term benefit that comes from maintaining a balanced perspective without reactionary behavior.

How to Lessen the Behavior Gap for Your Financial Health

At any given point, the market can go up, down or it can remain the same. While many aspects of the market are out of our control, one thing we can control right now is how we handle our financial strategy. Remembering the likelihood of recovery over time — and the market’s nearly inevitable up-and-down movement — can provide a more logical angle to calm the nerves.

If you’re experiencing financial anxiety, take a breath and also remember the potential for long-term gains. Of course, you can and should always reach out to your financial professional for further clarification and advisement.

https://behaviorgap.com/outperform-99-of-your-neighbors/

Estate Planning: Life Insurance

Mon, 15 Aug 2022 16:00:46 GMT

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Retirement Strategy: How Retirement Strategy Has Changed

Tue, 02 Aug 2022 21:23:28 GMT

There was a time when you'd have a pension at the end of your working years.

Now, of course, pensions are not as common, though you can certainly analyze your own retirement strategy.

Not all retirement strategies are the same.

In fact, there is such a wide variety of retirement strategies that it is worth reading up on your choices. Here's a brief look at the different strategies and what they have to offer.

The traditional 401(k).

Most people have this type of retirement savings strategy, and it works like this. The strategy is funded with pre-tax dollars taken out of your paycheck (through payroll deductions). If you're lucky, your company will match your level of contribution or even make contributions on your behalf – after all, the employer contributions are tax deductible.

The Safe Harbor 401(k).

A byproduct of the Small Business Job Protection Act of 1996, the Safe Harbor strategy combines the best features of the traditional 401(k) and the SIMPLE IRA, making it very attractive to a business owner. With a Safe Harbor plan, an owner-operator can avoid the big administrative expenses of a traditional 401(k) and enjoy higher contribution limits.

The SIMPLE 401(k).

Designed for small business owners who don't want to deal with retirement plan administration or non-discrimination tests, the SIMPLE 401(k) is available for businesses with less than 100 employees. Like a Safe Harbor plan, the business owner must make fully vested contributions (a dollar-for-dollar match of up to 3% of an employee's income or a nonelective contribution of 2% of pay for each eligible employee).

The Solo 401(k).

Combine a profit-sharing plan with a regular 401(k), and you have the Solo 401(k) plan, a retirement savings vehicle designed for sole proprietors with no employees other than their spouses.

The Roth 401(k).

Imagine a traditional 401(k) fused with a Roth IRA. Here's the big difference: you contribute after-tax income to a Roth 401(k), and when you reach age 59½, your withdrawals will be tax free (provided you've had your plan for more than five years).

You can roll Roth 401(k) assets into a Roth IRA when you retire – and you don't have to make mandatory withdrawals from a Roth IRA when you turn 70½.

The SEP-IRA.

This employer-funded plan gives businesses a simplified vehicle to make contributions toward workers' retirements (and optionally, their own). The employer contributions are 100% vested from the start, and the employer can supplement the SEP-IRA with another retirement plan.

The SIMPLE IRA.

This is like a SIMPLE 401(k) – a small business retirement plan with mandatory employer. But in this plan, there is one big difference for the business owner. If the business is not doing well, the owner can temporarily reduce plan contributions.

The Keogh Plan.

The Keogh is designed for small, unincorporated businesses. There are defined benefit, money purchase, and profit-sharing variations; the defined benefit variation is a qualified pension plan offering a fixed benefit amount.

Did you know you had so many choices?

If you are an employer, you may not have realized you have such an array of choices in retirement plans. But you do, and asking the right questions may represent the first step toward implementing the right plan for your future or your company. Be sure to ask a qualified financial professional or business retirement plan consultant about your options today.

Across the country, people are saving for that "someday" called retirement.

Someday, their careers will end. Someday, they may live off their savings or investments, plus Social Security. They know this, but many of them do not know when, or how, it will happen. What is missing is a strategy – and a good strategy might make a great difference.

A retirement strategy directly addresses the "when," "why," and "how" of retiring.

It can even address the "where." It breaks the whole process of getting ready for retirement into actionable steps.

This is so important. Too many people retire with doubts, unsure if they have enough retirement money, and uncertain of what their tomorrows will look like. In contrast, you can save, invest, and act on your vision of retirement now to chart a path toward your goals and the future you want to create for yourself.

Some people dismiss having a long-range retirement strategy since no one can predict the future. Indeed, there are things about the future you cannot control: how the stock market will perform, how the economy might do, and so on. That said, you have partial or full control over other things: the way you save and invest, your spending and borrowing, the length and arc of your career, and your health. You also have the chance to be proactive and to prepare for the future.

A good retirement strategy has many elements.

It sets financial objectives. It addresses your retirement income: how much you may need, the sequence of account withdrawals, and the age at which you claim Social Security. It establishes (or refines) an investment approach. It examines tax implications and potential tax advantages. It takes possible health care costs into consideration and even the transfer of assets to heirs.

A prudent retirement strategy also entertains different consequences.

Financial professional often use multiple-probability simulations to try to assess the degree of financial risk to a retirement strategy in case of an unexpected outcome. These simulations can help to inform the professional and the retiree or pre-retiree about the "what ifs" that may affect a strategy. They also consider sequence-of-returns risk, which refers to the uncertainty of the order of returns an investor may receive over an extended period.

Let a retirement strategy guide you.

Ask a financial professional to collaborate with you to create a retirement strategy, personalized for your goals and dreams. When you have this strategy, you will know what steps to take in pursuit of the future you want.

8 Step Summer Financial Checkup

Thu, 21 Jul 2022 14:08:09 GMT

It seems like when summertime hits, time slows down. The hustle and bustle of the holiday season is over, the taxes are complete and the vacation days are scheduled. If you find yourself with a bit of extra time on your hands in the upcoming months, you may want to use this opportunity to check in on your family’s finances. While doing a thorough analysis of your wealth may sound intimidating, we’ve broken it down into eight simple steps to keep you focused and on track.

Step 1: Analyze Your Budget

In early 2022, the Bureau of Economic Analysis reported that the personal savings rate is at only 6 percent.1 An effective way to avoid spending more than you’re earning is to step back and take stock of your monthly and annual budget. And if you don’t have a budget at all, use this time to make one.

Many credit cards or banks will offer categorical breakdowns of your spending, which can be a great way to find out what you’re spending the most money on and if there’s room to cut back. To get the best look at your spending habits, you may want to evaluate your savings and spending record over the past six to 12 months.

Step 2: Seek Out Tax Savings

Do you scramble to pull your paperwork together every March and April? This year, try taking a different approach to tax season by evaluating your tax-saving strategies early. You may want to work with your financial planner or tax professional to create a mock tax return, as this can help you understand your withholding options and tax-saving opportunities such as 401(k) or 403(b) options, IRAs and HSA contributions.

Focus on filing any time-sensitive deductions and brush up on changes in tax laws. Reaching out to your tax professional now could mean you have more time to prepare and strategize together for next year’s returns.

Step 3: Tackle Your Debt

An alarming 38 percent of adults carry credit card debt from month to month.2 If you’re guilty of putting off managing your amounting expenses, now’s the time to start planning to pay them off. While most consumers have some amount of good debt on their plate (mortgages, car payments, etc.), it’s the bad debt (credit card debt, student loans, etc.) that you’ll likely want to focus on managing and eliminating.

While you could be tempted to simply pay off what shows up on the bills each month, you may want to create a debt summary to get a better idea of your total debt’s big picture. By creating an annual debt summary, you and your financial professional can better understand whether you’re gradually working down the amount or falling farther into the hole.

Step 4: Revisit Short and Long-Term Goals

A lot can change in a year - marriage, death, divorce, growing your family and experiencing a major career change. Even seemingly small adjustments, like a job promotion or sending a kid off to college, can have a significant impact on your financial status. That’s why it’s important to regularly review your long-term goals and progress towards them while revisiting and evaluating your shorter-term goals as well.

Step 5: Evaluate Coverage and Providers

As you’re reviewing your budget and expenses, take the extra time to thoroughly evaluate your current providers and coverage options. This includes your internet, cable and wireless service providers in addition to your insurance coverage options. If you tend to set up auto payments and forget about your monthly bills, this could be an opportune time to revisit what it is you’re actually paying for.

Step 6: Reassess and Rebalance Your Portfolio

It’s important to visit your portfolio and risk tolerance regularly to help keep it in line with your tolerance, goals and market conditions. While most managed portfolios will be rebalanced automatically, it’s important to take stock of your investments’ big picture. Doing so can help you determine if you need to diversify differently or reassess your risk tolerance.

Step 7: Review Your Retirement Savings

Whether retirement is decades down the line or within the upcoming year, reviewing your retirement savings on an annual basis is a great habit to start. Take the time to assess whether or not you’re maxing out your retirement contribution options and how the savings you’re making today will translate into retirement income later down the line.

Step 8: Assess Your Estate Plan

It’s not fun to plan for the worst-case scenario, but leaving your family with an outdated will, trust or estate plan can lead to some major issues down the line. As you assess your legacy plan annually, make sure you’re accounting for any newly acquired assets (houses, cars, pets, etc.) while checking that your designated beneficiaries are still willing and able to assist in the event of your passing.

While you’re likely daydreaming of book reading, beach-going and backyard barbecuing this summer, don’t forget to do yourself a favor and squeeze in some financial assessment as well.

5 Ways to Find Your Financial Independence This Year

Tue, 19 Jul 2022 14:50:44 GMT

Achieving financial independence is a goal that almost everyone has. It brings you the personal freedom to do what you want. For most people, however, debt is a significant roadblock. In fact, the average adult has around $90,460 in debt.1 This includes all types of consumer debt such as credit cards, personal loans, student loans, mortgages and auto loans.

The good news is, there are strategies to pay down debt and work toward financial independence. How can you do this? Here are five actionable ways to start working towards more financial freedom this year.

Way #1: Make a Budget and Stick to It

If you want to be certain that your bills will be paid and savings goals are on track, then you need to set a monthly budget and do your best to stick to it. If you’re used to spending and saving as you please, sticking to a strict budget will feel hard at first. But over time, consistency in your spending habits will make following a budget easy and natural. Holding yourself accountable can help deter impulse buys, splurges and make your savings goals a bigger priority.

Way #2: Pay off Your Credit Cards in Full

Credit cards have high-interest rates that can grow your debt every month they aren’t paid off. If you’re able, pay off your credit card balance in full each month. Additionally, pay them on time to help you build good credit. If possible, it’s best to treat your credit card like a debit card, meaning you don’t spend more than you have. Once you have high-interest debt like this paid down, you can focus on low-interest debts like mortgages, auto loans and student debt.

Way #3: Opt for Automatic Savings

One of the most effective ways to save more money is to automate the process. Determine how much you’re able to contribute to your savings account each month and set up an automatic transfer with your bank. Soon, you’ll forget this is even happening.

If your company offers a retirement savings plan, you may have the option to automatically defer funds from your paycheck to the account. Again, this is something that will happen without action from you, making it an easy and convenient way to build retirement savings.

Way #4: Look For Opportunities to Increase Your Income

Increasing your income is easier said than done, but it’s not impossible. If you’ve been at your job for a while and taken on added responsibilities, now may be an opportune time to speak to your boss about a pay adjustment. Or, searching for opportunities elsewhere could result in a bump in salary.

If you have a hobby you’re passionate about, look for opportunities to make some money with it. Put your art up for sale online, offer classes (cooking, dancing, gardening, etc.) through your local rec center or find odd jobs you can do on the weekend.

If you do find yourself able to increase your income, be sure to revisit your budget and determine how that additional money should be used. If it’s being spent frivolously, it’s not helping you work toward greater independence.

Way #5: Begin Building Your Portfolio

Once you have control over your debt, you’ll want to focus on building passive income - which can be done through a retirement plan or investments. Start off simple by contributing to a retirement account. Even small contributions now can grow significantly toward retirement through the power of compound interest.

If you’re looking to expand, consider working with an investment advisor or other financial professional.

As you involve yourself in investments further, you may find other opportunities to invest as well, such as real estate, collectibles, or other alternative investment classes.

Achieving financial independence isn’t something that happens overnight. If you plan and save, however, it really can pay off for you in the long run. Not only does it help you to build savings, but it starts strong habits for the future. If you're unsure where to start, an experienced financial professional can help address your concerns and develop tailored strategies going forward.

https://www.cnbc.com/select/average-american-debt-by-age/

Life Stages That Impact Your Life Insurance Needs

Tue, 12 Jul 2022 11:10:13 GMT

Do you know that your life insurance needs vary as your life changes? Most people understand that having life insurance is part of a responsible financial plan, but they are not aware that their needs keep changing. If you have found a plan that meets your needs and gives you confidence about your retirement plan, it is important to reevaluate your life insurance needs as they fluctuate during different life stages.

Consider the following five different life stages and how they can impact your life insurance needs.

1. Marriage

Getting married is a positive and exciting life event for any couple, but amidst all the party planning most couples do not stop to think how marriage could affect their life insurance needs. Getting married means that you are now working as one unit and your financial obligation now becomes a joint effort. Getting married does not directly affect your life insurance rates, but now that you have a spouse you can choose to purchase a policy together. Having a joint policy means that if one of you passes on, the surviving spouse is financially stable and they can maintain their current living standard. The surviving spouse is also in a position to use the death benefits to supplement retirement or a child’s education down the road.

2. Becoming a Parent

Becoming a parent is an equally amazing and terrifying experience. One moment you are an independent adult and the next you have a child who entirely depends on you. It is vital for you and your spouse to review your life insurance policy because it is not just the two of you, but you have at least one financial dependent. It is time to think about how your family would cope financially if something happened to either you or your spouse and you couldn’t work anymore.

When you have a kid, there are other factors that are important to consider such as the fact that kids can be expensive to raise. Also, child-rearing expenses, other than the basic, tend to rise with age. You should also keep in mind that college education tends to be expensive. As a parent, you should ask yourself whether your partner can handle these child-related expenses if you are suddenly not there.

3. Mortgage Protection

Your family home might be your most significant asset but also one of the most substantial financial responsibilities. For most families, mortgage repayments constitute their largest regular expense, and it is for this reason most people take life insurance policies. Life insurance can be an essential lifeline for the family especially when the primary earner in the family passes away.

4. Running a Business

If you are self-employed and you run your own business, the chances are that you have made a substantial investment in it. If you have made an investment in the recent past such as purchasing a new building, it could change the value of your business. If this happens, the insurance limits are raised so that they can cover business debts that your family might be liable for if you passed on. However, if you didn’t have life insurance they might be forced to liquidate some assets to pay off the debt.

5. Divorce

If you and your spouse decide to divorce, it is crucial that you determine what happens to your life insurance policy. Divorce will raise two kinds of issues; beneficiary and coverage issues. If you did not have children during your marriage, the issue is as simple as just changing the beneficiary and adjusting your coverage, so it reflects your newly single status. If you had children, you simply change the beneficiary from your spouse to the children.

Most people are not aware of how their life insurance needs change as their lives change. It is essential that you adjust your policy depending on the stage of life you are in.

Insider Secrets From the World's Top Golf Courses

Tue, 05 Jul 2022 14:35:58 GMT

So you've decided to step off of your hometown green and venture out to play a round of golf at a top-rated course. Regardless of which course you've decided to travel to it will likely challenge your golf game in new ways. Today we're sharing six insider secrets that are sure to prepare you for your next game.

Secret #1: Set Your Score Expectations

Know from the start that your score will likely be significantly lower than usual. This is because you're playing an unfamiliar course with unfamiliar weather. Plus, the top golf courses are usually designed to challenge professional golfers. Think of it as if you were suddenly asked to play in a Major League Baseball or National Hockey League game — avoid frustration ruining your vacation by being happy just to be out there, and don't expect the same stats as the pros.

Secret #2: Hire a Caddy

A caddy can help you overcome some of the challenges of playing on a new course by telling you all of its secrets. If you're on a walking-only course (and most top courses are), your caddy will also help you from getting worn out after playing multiple rounds within a few days.

Secret #3: Book the Resort Package

Tee times at the top golf courses can be very hard to come by. Local members, pro golfers, other celebrities, and resort guests all compete for a very limited number of slots. If you're planning to visit on your own, you may need to book months in advance to get a tee time. Luckily, many of the "reserved" spots are actually on hold for people spending the night. If you can book a room with a golf package, you get a ticket onto the otherwise sold-out course.

Secret #4: Join a Club with Reciprocal Privileges

Trying to get on a members-only course but can't become a member? You may not have to join that club after all. Many top courses offer reciprocal privileges to members of other courses they have agreements with. The benefit to the course is that their members get the extra perk of being able to play when they travel. The benefit to the member is that they can enjoy their home course while having the ability to play while traveling without the hassle of signing up for extra memberships. You may not have the same tee time options as at your home club, but you'll still get higher priority than you would on your own.

Secret #5: Volunteer for a Tournament

Did you know that the staff at PGA and other events are largely volunteers? That may sound like a bad deal considering the amount of money the professional tours are bringing in, but there are many benefits for volunteers. The biggest benefit is being invited to play the course either after the event or during a slower time. You now get two vacations with one being able to watch a PGA event and the other playing a top course.

Secret #6: Check for Lessons

Even experienced golfers have something to learn, and the top courses will usually have seasoned pros on hand who have much to teach you. In some cases, you may just want to get out and play instead. However, a lesson can be like a VIP tour where you gain access to additional areas of the club or may get out on the main course when tee times otherwise weren't available.

Risk Management: Property, Casualty, Life, Disability, and Extended Care Insurance

Mon, 04 Jul 2022 18:14:10 GMT

When it comes to creating a sound financial strategy, many people think of creating a diversified portfolio or making sure they’re regularly contributing to their retirement plan. But a good financial plan includes insuring against the unexpected and making sure that no matter what happens, you’re covered.

If you’re younger and have a lot of life ahead of you, you might wonder why you need to consider disability insurance or life insurance. But the point of insurance is to expect the unexpected and make sure that you've taken care of yourself and your family if something happens to you.

Each type of insurance has specific coverages and restrictions, and some types of insurance make more sense than others, depending on your age. Talk with your financial professional to ensure that insurance is a part of your strategy.

Property insurance may take the form of homeowners insurance, renters insurance, or insurance against a specific natural disaster, like flood or earthquake insurance. Property insurance typically covers the building itself and the contents within it should something happen. A rental policy will cover your possessions as a renter should something happen to your building. You’ve spent a lifetime building up your possessions; if everything were lost tomorrow, you wouldn’t want to outlay the funds to rebuy everything you own.1
Casualty insurance protects you against claims or lawsuits made against you by outside parties. Casualty insurance is already bundled in if you already have homeowners and auto insurance. For example, if someone falls down deck stairs because you failed to maintain them, the casualty part of your homeowners insurance would cover this type of claim.2
Life insurance is a way of providing financial support to your loved ones after you’re gone. You’ll pay a premium, typically monthly or annually, and pay a death benefit to your beneficiaries after you’re gone. Death benefit money can be used to pay funeral expenses, mortgage or rent payments, and day-to-day living expenses. Younger people typically overlook this type of insurance, but life insurance should be a part of everyone’s financial plan.3
Disability insurance protects you if you become disabled and unable to work. It’s helpful to think of disability insurance as insurance for your income. The two types of disability insurance—short-term disability (STD) and long-term disability (LTD)—are typically offered as part of or in addition to your insurance options provided by your employer. STD typically covers periods of injury or disability from 13-26 weeks, while LTD usually offers several years of continuous income replacement after a work-ending workplace injury. However, these policies only typically cover a percentage of your previous income. Still, having at least some of your income covered is better than nothing.4
Extended care insurance , sometimes referred to as long-term care insurance, is designed to help cover you after age 65 and provide in-patient or at-home care for a chronic condition. Extended care insurance can cover nursing homes, assisted living facilities, home health aides, and private-duty nurses. Extended care insurance is also less expensive the younger you are, so if you’re approaching 50, it’s something to start considering.5

Insurance is an essential part of your life and financial strategy. By preparing for the worst (while hoping for the best), you’ll be able to handle any changes in your life and provide yourself with some protection against significant disasters or illnesses. Remember, you can’t control everything that happens in life, but you can create a plan that will support you no matter what.

How to Recover from a Market Crash if You're Retired

Sun, 26 Jun 2022 14:46:01 GMT

If you're retired, you may be feeling more concerned about market volatility than others. When an economic upset occurs, the question becomes: what should you be doing next? Below we are discussing four things you can do to help recover from a market crash.

#1: Review Your Financial Plan

Many of us are emotional about our money, and we can’t help it. That’s why working with a professional who can offer an objective, logical approach to money management is often a necessary component in reaching our financial goals.

Watching the market crash, or seeing our stocks drop overnight, can cause panic - and understandably so. The first thing to do when faced head-on with a market downturn is to pause, take a breath and review the financial plan you and your financial partner already have set in place.

Oftentimes, financial professionals develop financial plans or investment strategies that prepare for the unexpected - whether it’s a market downturn, death in the family, loss of a job, etc. Turning to your financial professional and reviewing your retirement plan amidst a market crash can be a comforting first step in remembering not all is lost. Doing so can serve as a reminder that now is not the time to make hasty, emotionally-driven decisions. Rather, now is the time to focus on your personal economy and what you can do to rebuild or reallocate what you need throughout retirement.

#2: Decide Whether or Not to Continue Investing

You’ll likely want to talk with your financial partner about whether or not continuing to invest in the market is in your retirement’s best interest. Pulling out now may be your first instinct, but your advisor very well may advise against it. That’s because, depending on your circumstances, jumping ship could prevent you from recouping any losses, should the market change.

While history is no guarantee of future performance, historically bear markets do recover. If you have the flexibility (and years) to do so, you may be advised to ride the downward trend out in hopes that you can recoup your losses when the market eventually stabilizes and begins to add gains. Again, this decision is one that should be made with a dedicated financial partner, and in tandem with the rest of your retirement income strategy.

#3: Rebalance And Reassess Your Risk

A market crash can serve as a true indication of your risk tolerance, meaning this could be an ideal opportunity to reassess your personal tolerance for risk. If you’re allocating assets in a similar manner as you were while working full-time, for example, you may find that rebalancing your portfolio is well past due.

Alongside your financial professional, look closely at your portfolio, specifically at the balance between stocks and bonds. At a time like this, it may be tempting to change your asset allocation in favor of more fixed income. And while that may be the right option, you want to be logical and confident in this decision, as removing risk altogether could mean missing out on crucial returns later down the line. As is true for most portfolios, yours is likely to contain a mix of fixed income and stocks.

#4: Adjust Your Budget

You can’t control the market, but you can control other aspects of your financial life - including your spending and saving strategies. If you need to, take a look at your weekly or monthly budget and see where adjustments can be made. You don’t want to pull from your investments and/or sell your assets if minor lifestyle changes will suffice. Whether that means eating out less or reducing the number of trips you budget for each year, evaluate ways in which you can reallocate “fun” money to cover necessities. And as you do, remember to include contributing to your savings account or emergency fund as a top priority.

When a market crash occurs, it can feel like the future of your finances is out of your control. But with a financial partner by your side, these steps can provide both a well-thought-out plan and confidence for your retirement.

Roth Conversions: What You Need to Know

Tue, 21 Jun 2022 15:58:37 GMT

When opening a retirement savings account, you’re typically presented with the option of choosing between a traditional or Roth IRA. While you may have stuck with a traditional IRA for the initial tax savings, it’s possible you could change your mind and opt for tax-free retirement income instead. Making this switch is called a Roth conversion. Should you consider taking advantage of this opportunity, or are you better off sticking to your current savings strategy? We’re discussing what you need to know below.

What Is a Roth Conversion?

A Roth conversion refers to the act of converting a traditional IRA account into a Roth IRA account. A traditional IRA account is created using pre-tax dollars, meaning the distributions you take from a traditional IRA account in retirement is taxable income. A Roth IRA is created using after-tax dollars, meaning the distributions you take from a Roth IRA account in retirement is tax-free (because tax has already been paid).

Additionally, a Roth IRA can be an appealing option for some because it does not include a required minimum distribution age. This means that you can continue to save and grow tax-free dollars for the remainder of your life.

Considerations to Make Before Doing a Roth Conversion

While a Roth conversion could be a great option for some, it could be a costly mistake for others. That’s why we’ve outlined four important considerations to make before converting your traditional IRA into a Roth account.

Consideration #1: Your Timeline to Retirement

If you’re retiring within the next few years, you may want to forego a Roth conversion. Why? Because the money you convert into a Roth IRA must stay there for a five-year holding period. If withdraws are made before the five years is up, you could be hit with a 10 percent penalty and/or additional income taxes.

Consideration #2: Tax Obligations

When considering a Roth conversion, you simply can’t ignore the tax implications associated with this move. While your aim may be tax-free income in retirement, you will have to pay taxes on that income at some point. You need to be prepared to pay the taxes on this additional income, which could very well push you up into a higher tax bracket. While it’s possible to cover the difference using a portion of the distribution itself, this is typically not advised for two reasons: you’d be robbing your future retirement of income and you may be subject to a 10 percent penalty for taking the funds.

Consideration #3: Your Future Tax Bracket

One of the main reasons an individual chooses to do a Roth conversion is for the advantage of tax-free withdrawals in retirement. With that in mind, you’ll want to take into consideration whether your tax bracket will be higher or lower in the future when you anticipate withdrawing the funds. If you believe you’ll be in a lower tax bracket come retirement, it may be worth waiting to withdraw the funds then. On the other hand, if you’ve experienced a year of interrupted or lowered income (lost a job, missed out on a bonus, etc.), you may be in a lower tax bracket now than you would when entering retirement.

Consideration #4: How Much to Convert and When

If you’re on the cusp of a higher tax bracket, but still want to do a Roth conversion, you do have the option to convert a portion at a time. By spreading the conversion across several years (as opposed to one lump sum), you can lower your yearly tax obligation.

How to Make a Roth Conversion

The IRS offers three possible ways for an individual to convert funds from a traditional IRA into a Roth IRA account. These methods include:

Rollover: You are given the funds and must put the funds into a Roth IRA account within 60 days.
Trustee-to-trustee transfer: The institution currently housing your traditional IRA transfers the distribution to a different institution where it'll be held in a Roth IRA.
Same trustee transfer: The institution currently housing your traditional IRA is able to also house your Roth IRA, and they roll the account over for you. ¹

Being able to withdraw income tax-free in retirement is an appealing option for many. And it’s good to know that while you may have chosen to open a traditional IRA years ago that you have the option to convert it at any time. Before making any moves to your retirement savings account, make sure to speak with your financial advisor first. Together, you can go over these important considerations in regards to your unique financial situation.

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-rollovers-and-roth-conversions

Secure Act 2.0: What could it mean for your retirement?

Fri, 17 Jun 2022 18:26:38 GMT

Secure Act 2.0 is on the way. The bill recently passed the House of Representatives in rare bipartisan fashion, with a 414 - 5 vote in favor.

You may remember the first Secure Act, which was signed into law by former President Trump in December 2019. That law raised the age for required minimum distributions from 70 ½ to 72. It also impacted 401(k) contributions, student loan repayments, and the use of annuities in 401(k) plans.1

If passed as currently written, Secure Act 2.0 would have an even greater impact. The bill could change the RMD age even further, plus alter things like RMD penalties, catch-up contributions, employer contributions, and more.2

Below are seven ways Secure Act 2.0 could affect your retirement strategy:2

Raising the RMD age to 75.

Secure Act 1.0 raised the RMD age from 70 ½ to 72. Part 2.0 would push it out even further:

Age 73 starting in 2023.
Age 74 in 2030.
Age 75 in 2033.

Catch-up contribution expansion.

Current law allows for employees age 50 and older to make catch-up contributions to their 401(k) each year in addition to their regular contributions. This year, the catch-up contribution amount is $6,500. Under Secure Act 2.0, that amount would increase to $10,000 for workers ages 62 to 64, beginning in 2024.3

Catch-up contributions become Roth contributions.

Under Secure Act 2.0, all catch-up contributions are treated as Roth contributions starting in 2023. That means that catch-up contribution dollars will be made with after-tax dollars. They still grow on a tax-deferred basis, and then distributions are tax-free after age 59 ½.3

New Roth matching contributions.

Secure Act 2.0 also allows employees to elect for their employer matching 401(k) contributions be made as Roth contributions. Again, these would be made with after-tax dollars, but would generate tax-free distributions in the future.3

Student loan matching contributions.

Secure Act 2.0 also formalizes an idea that the IRS has already approved. Secure Act 2.0 would allow employers to make matching contributions to 401(k) plans based on employee student loan payments. The contributions would vest on the same schedule as normal matching contributions.2

Reduced RMD penalties.

Under current policy, the penalty for a missed required minimum distribution is 50% of the missed distribution. Under Secure Act 2.0, that penalty would fall to 25%. 3

Automatic contributions.

Finally, Secure Act 2.0 would encourage retirement saving by requiring new 401(k) plans to automatically set new participants’ contributions at 3%, with 1% automatic increases each year up to a maximum of 10% contributions. Employees would have the opportunity to opt out of the automatic contributions.4

Secure Act 2.0 would mark a major change in retirement policy, and would also likely impact your strategy. It is not yet law, but given the bipartisan support of the bill thus far, it seems reasonable that it will pass.5

Let’s talk about your retirement income strategy and how it could be affected. That’s especially true if you will take RMDs or make catch-up contributions in the near future.

https://www.cnbc.com/2022/04/05/retirement-savers-may-benefit-from-secure-2point0-what-needs-working-out.html
https://finance.yahoo.com/news/secure-act-2-0-passes-120019436.html
https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/house-passes-secure-act-2-to-promote-retirement-savings.aspx
https://www.cnbc.com/2022/02/05/heres-whats-new-with-401k-plans-this-year.html#:~:text=Contribution%20limit%20changes&text=For%202022%2C%20you%20can%20put,not%20count%20toward%20these%20limits .
https://www.cnbc.com/2022/03/30/house-passes-secure-act-2point0-heres-what-it-means-for-your-retirement-.html

Licensed Insurance Professional. We are an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.

Inflation Creeping into Personal Finances

Tue, 07 Jun 2022 14:23:14 GMT

If you have a balance on a credit card or an adjustable rate mortgage, you might be noticing changes in your payments. Higher interest rates are starting to ripple through the personal finance landscape, and it doesn’t look like that trend will change anytime soon.

The Federal Reserve has indicated it plans to keep raising short-term interest rates to help manage inflation, which is at its highest level in 40 years. You’re likely seeing the effects of inflation when buying gas or groceries, and you’ll notice it if you are shopping for a new or used car.

The Federal Reserve’s job is to control inflation. By raising interest rates, the Fed hopes to slow spending, bringing down consumer prices.

Time will tell whether higher interest rates will prompt us to consider changes to your portfolio. Remember, your overall strategy considers that there will be transition periods in the economy.

In the meantime, you may want to look at I Bonds, which are issued by the U.S. government and earn a fixed interest rate plus a variable interest inflation rate that’s adjusted twice a year. I Bonds have certain purchase limits, restrictions, and tax treatments, so they generally play a limited role in your financial picture.

If you have any questions about inflation or interest rates, please reach out. We’re always here to help put things into perspective.

4 Ways to Teach Your Kids About Money

Wed, 01 Jun 2022 11:59:20 GMT

As you focus on raising the next generation, we’re sharing our top four ways to teach your kids about something that’ll stick with them for the rest of their lives - money. If you haven’t started laying the foundation for healthy money habits with your children yet, now’s the perfect time to start. Here are a few fun, stress-free ways to get every family member involved with finances.

Way #1: Encourage Kids to Experiment

Making mistakes is one of the most effective ways a child can learn to do something. And when it comes to money, you have the power to create a safe environment for your kids to experiment, make mistakes and, with hope, grow their understanding - without costing their financial future.

Give your children a small allowance each week as a tool to teach them the power of saving versus spending. Encourage them to create a budget and make goals. Soon enough they’ll learn the value in saving their allowance for a big purchase later instead of spending it impulsively as soon as they get it.

Stay involved with how your kids are spending or saving. Help them talk through their frustrations, answer their questions and provide guidance when needed.

Way #2: Talk About Your Family’s Budget

If your children are a little older and have the basics of money down, consider asking them to get involved in establishing and sticking to your family’s budget. This can be an eye-opening experience for your children, and it’s something you can refer to throughout the month. When your child wants to go out to eat every night, remind them about your budget for entertainment and dining. Every time you’re spending money, your child is seeing a budget on paper come to life.

Remember, this shouldn’t be stressful on your child. If you don’t feel comfortable sharing your whole household budget, start with just a few easy categories like entertainment, dining out and groceries. You can even make it a challenge to have your kids find creative ways to do things within the family budget.

Way #3: Make It a Competition

If your household already has some sibling rivalry, why not play into it with a friendly competition?

Turn budgeting and saving money into a game. Give your shopping list to each sibling and let them search online or in the newspaper for coupons and sales. Offer a reward for whoever finds the most savings, or put whatever money is saved from the coupons into their bank account.

If you have older kids, they may be interested in stock market simulation games, which are available online. If you’re not well-versed in the market yourself, this could be a fun activity to do as a family.

Way #4: Emphasize the Importance of Earning

Knowing how to save, invest and spend money is important. But to make the lesson really hit home, consider having your kids earn a little money of their own. Losing money that was handed to them doesn’t make as big an impact as losing money they earned. If they’re old enough to work, consider encouraging them to find a part-time summer job or seasonal gig. If they’re younger, find chores for them to do around your house or for other family members, and pay them per task. The willingness to work hard and be rewarded is one of the best financial lessons you can pass on to your young ones.

Whenever you can, celebrate and encourage your children to grow into valuable community members. Finding small, stress-free ways to instill financial life lessons now can pay off later in life. If you’re having trouble finding the right way to talk to your kids about money, ask your financial professional for assistance. They can help you start the conversation and build the foundation of positive money habits for your kids.

4 Ways Your Life Insurance Policy Can Benefit You While You're Living

Tue, 24 May 2022 14:18:45 GMT

You’ve shopped around for whole life insurance and have found a policy that yields the best benefits for your family from funeral preparations to aiding in supporting them for years to come. However, you may not be aware that there are some ways you can reap the benefits of your life insurance policy during your life as well.

You don’t have to simply consider end-of-life benefits regarding your life insurance policy. Here are four ways you may be able to utilize the quality advantages of your life insurance policy during your lifetime to benefit your family and help you prepare for the next stage in your life.

1. Minimize Taxes in Your Retirement

A whole life insurance plan can be used as a tax-free form of cash flow during retirement.1 Policyholders can utilize their life insurance similar to a personal pension and make withdrawals tax-free while in retirement. In this way, your life insurance policy operates like a retirement savings account in which you can use it to generate cash flow during retirement.

2. Use to Fund Your Child’s College Tuition

Your whole life insurance policy could benefit your future generations sooner than you think. Potentially, your life insurance policy could yield better rates when taking out a loan for your child’s (or your own) education than an actual student loan. And when it comes to paying back the interest, the money goes right back into your policy.

Additionally, your life insurance can also cover your student loans should any debt exist when it goes into your estate. Should your estate contain any student loan debt, your life insurance coverage can cover the tax placed upon your debt.

3. Explore Living Benefits

When the least expected occurs, your life insurance policy can function as additional cash flow support through living benefits. Living benefits can be used as a portion of the death benefit to be used in certain situations. This way, the death benefit is not entirely used during your life but policyholders can still rely on the added financial support of life insurance benefits during your life.

Living benefits can provide financial assistance in the form of chronic illness benefits in which you can receive aid in various activities including dressing and eating. Terminal illness benefits are also available through your life insurance policy for those who have been certified by a physician. Those needing financial support for medical care during their life expectancy that is shorter than 12 months can use their life insurance policy for living benefits.

4. Sell It Should You Outlive Your Policy

Believe it or not, outliving your life insurance policy is a possibility. If this should be the case for you, when your policy term ends (and if you have never made a claim), your insurance company could return the premiums you have made towards your policy (if you have whole life insurance - of course, you always want to check on the specifics of your individual policy). Once received, you have the ability to use them as you see fit, including investing the funds or saving them.

Outliving your life insurance could be considered one of the more unexpected benefits of your policy. Policyholders have the option of continuing coverage, receiving the funds in a tax-free savings account or taking out loans against it. Depending on your financial needs when your term ends, the opportunity to receive a payout from your life insurance policy is another way to benefit from your policy during your life.

https://www.irs.gov/faqs/interest-dividends-other-types-of-income/life-insurance-disability-insurance-proceeds/life-insurance-disability-insurance-proceeds

Medicare: Understanding Parts A, B, C, & D

Wed, 18 May 2022 14:59:47 GMT

Whether your 65th birthday is on the horizon or decades away, understanding the different parts of Medicare is critical. Increasingly, Americans are incorporating this government-sponsored program into their future health care decisions, and for good reason. Learn about the different parts of Medicare to determine what plans will work for you and your health care needs.

Parts A and B: Original Medicare

There are two components. Part A covers inpatient hospital care, skilled nursing facility costs, hospice services, lab tests, surgeries, and some home health care services. While very few beneficiaries must pay Part A premiums out of pocket, the annually adjusted standard deductibles still apply. ^1,2

Many pre-retirees are frequently warned that Medicare will only cover a maximum of 100 days of nursing home care, provided certain conditions are met. Part A is the plan with these provisions. Under the current Part A rules, a beneficiary would pay $0 for days 1–20 of care in a skilled nursing facility (SNF). During days 21–100, a $176 daily coinsurance payment may be required. ^1,2

Knowing the limitations of Part A, some look for alternatives to manage the costs of extended care. Part B covers physicians’ fees, outpatient hospital care, certain home health services, durable medical equipment, and other services that are not covered by Part A. ³

Part B does come with some costs, however, which are adjusted annually. The premiums vary, according to the Medicare recipient’s income level, but the standard monthly premium amount is $170.10 for 2022, and the current yearly deductible is $198. ¹

Part C: Medicare Advantage Plans

Sometimes called Medicare Part C, Medicare Advantage (MA) plans are often viewed as an all-in-one alternative to Original Medicare. MA plans are offered by private companies approved by the federal government. Although these plans come with standardized minimum coverage, the amount of additional protection can drastically differ from one person to the next. This is due to unique provider networks, premiums, copays, coinsurance, and out-of-pocket spending limits. In other words, comparing prices and services offered by different vendors may be the best way to find a Medicare Advantage plan that works for you. ³

Part D: Prescription Drug Plans

While Medicare Advantage plans often offer prescription drug coverage, insurers also sell federally standardized Medicare Part D plans as a standalone product to those with Medicare Part A and/or Part B. Every Part D plan has its own formulary, or list, of covered medications. Visit Medicare.gov to explore the formulary and prices of approved drugs for your Part D plan, organized by tier.

Medicare.gov is a great place to start all your research. There, you’ll find answers to your most common questions and more information on the different Medicare plans offered in your area. ⁴

What You Need to Know About Bitcoin and Cryptocurrency

Thu, 12 May 2022 20:24:50 GMT

Over the last couple of years, cryptocurrencies have become more well known due to the significant increases and swings in the price of popular coins like Bitcoin and Ethereum. Despite reaching an all-time high price last year, only about 16% of Americans have reported investing or trading cryptocurrency.

For investors curious about adding Bitcoin or another cryptocurrency to their portfolio, you should consider the following.

What Are Cryptocurrencies?

Cryptocurrencies are digital assets secured on a blockchain, which is a type of ledger that records transactions using concepts of cryptography and game theory. Some of these concepts include:

Private and public-key pairing
Hashing functions
Elliptical curve encryption

The first cryptocurrency was Bitcoin, a creation of the anonymous Satoshi Nakamoto that started in 2008. However, in the nearly 14 years since Bitcoin’s inception, many other cryptocurrencies now exist, each with its unique value propositions and communities.

How Do You Buy Bitcoin and Other Cryptocurrencies?

The most common method for purchasing is through exchanges such as Coinbase, Kraken, or Binance. Because of Know Your Customer (KYC) laws, exchanges will require users to provide certain identifying information when creating an account. Additionally, exchanges will charge transaction fees when buying, selling, or trading crypto.

What Makes Cryptocurrencies Valuable?

The value propositions of cryptocurrency may vary from coin to coin, which is why it’s important to thoroughly research the fundamentals of a crypto project before investing. However, some of the general attributes of crypto that may be of value include:

Decentralization
Transaction Privacy
Store of value (i.e., digital gold)
Scarcity
Utility through DeFi , NFTs , and other use cases in the metaverse.

Where Do You Keep or Store Your Cryptocurrencies?

Once bought, some users keep their cryptocurrency in the account on the exchange they used to purchase them. However, others may prefer to hold their crypto on any number of crypto wallets .

Cryptocurrency wallets are generally distinguished as a hot or cold wallet. Hot wallets refer to software programs stored online through a computer or phone. In contrast, a cold wallet is held in a USB-connected device capable of offline storage.

What Are the Risks of Owning Cryptocurrency?

The risks of cryptocurrency are threefold. The first is the potential for losing crypto by forgetting a spending password or wallet seed-phrase. Risk also exists through the potential for bad actors to hack and steal cryptocurrency either through manipulation of software or by obtaining an individual’s crypto wallet passwords.

Other Ways to Invest in Cryptocurrency

For people not yet ready to purchase their own cryptocurrency, other options still exist for investors to have some exposure to the cryptocurrency industry in their portfolio. These include:

Investing in companies in the cryptocurrency space
Indirectly obtaining crypto exposure through investment in companies that hold cryptocurrencies on their balance sheets
Investing in an exchange-traded fund (ETF) that holds different cryptocurrencies and related contract assets

What Is a Reasonable Amount of Crypto for Your Portfolio?

No single correct approach exists when it comes to determining the amount of cryptocurrency an investor should have in their portfolio. Rather, the chosen amount will always depend on factors specific to the investor and their financial goals.

Relevant to the discussion might be an investor’s net worth, current income and expenses, retirement savings, and overall risk tolerance. Generally, some experts may recommend allocating only a tiny percentage (e.g., 2-5%) of an investor’s overall portfolio, if any, to cryptocurrencies.

Is Crypto Right for an Investor’s Portfolio?

The cryptocurrency market is still a young industry, and its technologies and investment opportunities are continually evolving and changing. As a result, cryptocurrency investments can be somewhat speculative and subject to short-term volatility.

As always, investors should perform their own due diligence before buying a particular cryptocurrency and only invest amounts they won’t be afraid to lose.

Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary, or investment advice.

4 Yearlong Tax Tips for Retirees

Fri, 06 May 2022 18:13:24 GMT

Whether you’re just easing out of the workforce or you’ve been in retirement for a few years now, making the right financial moves is critical. If you’re working with an advisor or taking a look at your finances yourself, one central goal during retirement is protecting your wealth from unnecessary taxes.

In many cases, there are ways to avoid owing more taxes - but usually, this requires proactive action beyond tax season. Below we’ll explain four tips you can utilize throughout the year to help minimize your tax obligations in retirement.

Tip #1: Take Your Required Minimum Distributions (RMDs)

An RMD is an amount that must be withdrawn from your retirement account. These required withdrawals begin when you, the retirement plan account owner, reach age 72. The rules apply to employer-sponsored retirement plans, traditional IRA plans and Roth 401(k) accounts, but they don’t apply to Roth IRAs when the account owner is still alive.

Some IRA custodians and retirement plan administrators might find out what your RMD is for you, but the responsibility ultimately falls on you. To find out what your RMD is, the IRS provides life expectancy tables to utilize according to your circumstances. If you do not withdraw the RMD (or the correct amount), the amount not withdrawn will be taxed at 50 percent, which is why it’s critical to take your RMDs and withdraw the correct amount. ¹

Tip #2: Manage Your Income Combinations

As a retiree, a portion of your income will likely come from Social Security. However, not all of your benefits are taxable, and there are ways to minimize or, at times, eliminate taxes on your Social Security benefits.

If half of your Social Security benefits in addition to your other income is higher than the base amount for your status, your benefits will be taxable. By strategically managing all of your income sources (such as pension payments, dividends or part-time jobs), it’s possible to lower the portion of benefits that will be taxed. Rules regarding Social Security income taxes also vary from state to state, so always check with your state regulations to determine the best solution for you. ²

Tip #3: Figure Out if You Need to Pay Quarterly Taxes (If Not, You May Decide to do it Anyway)

If you don’t have taxes withheld automatically, you may need to pay estimated tax payments. Individuals who are expected to owe $1,000 or more - or those whose withholding and refundable credits are 1) less than 90 percent of the tax owed or 2) at least 100 percent of the tax on the previous year’s return - must pay estimated tax.

In some cases, you might decide to pay quarterly taxes, even if you are not required to, in an effort to avoid the inconvenience of paying a large sum all at once. If you miss a payment or underpay, you may be charged a penalty. ³

Tip #4: If You’re Moving to a New State, Get to Know Its Tax Laws

If you’re relocating to a new state during retirement, consider the impact of the move on your financial situation, as tax laws vary according to the state. For example, some states, like Florida and New Hampshire, don’t tax on income or only tax on dividends and interest. ⁴ On the other hand, they may have higher property taxes. For example, New Hampshire’s property taxes are high compared to the rest of the country. ⁵ In addition to nicer weather or a more serene lifestyle, you might decide to move to a new state in an effort to save on taxes.

In many cases, an individual or couple is working with a fixed amount of wealth to last throughout retirement, which is why taking the right financial steps is essential. By working with an advisor and keeping these four tips in mind during the year, you can make sure you’re not paying more than you need to. When it comes time to finalize gifting to your children or grandchildren, you can further reduce taxes by incorporating other strategies, like charitable giving, into the equation. ⁶

How the Russia-Ukraine Crisis Is Impacting Markets and Retirement Portfolios

Wed, 27 Apr 2022 14:09:51 GMT

Immediately following the news of Russia’s decision to invade Ukraine, the Dow saw a 465-point slide and an 800-point drop in futures. That selloff also came on the heels of investor concerns about the Federal Reserve raising interest rates and inflation costs. Yet, the stock market rebounded shortly after.

Suffice it to say, investors – especially those nearing retirement – may be wondering how this conflict and aftermath of market volatility could impact their portfolios. While the future is unpredictable, here are some points to consider for those retirement portfolios.

Potential Effects of the Russia-Ukraine Crisis on the Economy

The Russia-Ukraine Crisis is the largest European land conflict since World War II. Naturally, its economic and global market effects will be noticeable in both the short and long-term. The ripples from some of those effects may not even be traceable for years to come.

Measuring the Economic Output of Ukraine and Russia

Assessing the possible fallout from this conflict might begin with examining Russia and Ukraine's exports and products to the global economy. The main products of both countries include petroleum-based goods, oil, natural gas, and other energy resources. The European Union reportedly receives about 41% of its gas from Russia.

Both countries are major producers of basic food staples such as grains, wheat, corn, and barley. Despite these countries’ production of essential commodities, their total output only accounts for approximately 3% of the world’s gross domestic product. The conflict may cause the supply of these commodities to increase, leading to increases in pricing that will most directly impact lower-income households.

Will Any Market Sectors Benefit from the Russian and Ukrainian Conflict?

Global conflicts and crises always present market losers and winners over time. For example, the video chat platform, Zoom , saw its stock skyrocket after the start of the Coronavirus pandemic in 2020, but has since cooled as the pandemic has slowed down.

The same logic will apply to the Russia-Ukraine conflict. One possibility will be in the cybersecurity sector as cyberwarfare threats have increased since Russia’s invasion. Companies specializing in cybersecurity products or services may see increased attention to their stock’s price in the market.

Protecting Retirement Portfolios During Times of Crisis and Uncertainty

Investors of all ages, income levels, and backgrounds will be interested in the Russia-Ukraine conflict’s impact on their portfolios. However, those in or nearing retirement may be more concerned over the current market volatility given their shorter investment timeline and greater reliance on their portfolio to supplement income with social security or defined benefit pensions. Investors in that group may consider several key fundamentals before making any financial or investment decisions.

Assess Cash Reserves and Expenses

Feelings of stress or anxiety over market reactions to significant political and economic events may be a signal of an investor’s current finances. Reflect on whether cash reserves are at a sufficient level to withstand short-term market volatility and explore other financial pressures (i.e., expenses) that may be contributing to feelings of unease.

Avoid Knee-Jerk Responses to Buy or Sell Certain Investments

A decrease in the value of a stock or other investment position is not a loss until locked in after a sale. Avoid the temptation to sell off investments based on fears that their value will continue to decline. Likewise, avoid investing in stocks or markets experiencing significant gains because of the current state of affairs. As with all investments, it’s important to remember the big picture and see the forest through the trees.

Carefully Consider Market Opportunities

Market volatility always breeds opportunities, and savvy investors may find opportunities to plant seeds for long-term gains amidst the doubt and uncertainty. Contemplate the rebalancing of a retirement portfolio by selling off successful investments and reinvesting some of the gains into future opportunities or wealth-preservation vehicles.

In Short: Act Without Panicking

The Russian-Ukrainian Crisis will likely leave its mark on the global economy and markets in ways that investors and institutions will not be able to foresee fully. The best course of action during times of uncertainty is to stay informed, avoid panicking, and take decisive action based on reliable information.

Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary, or investment advice.

7 Ways to Spring Clean Your Finances

Wed, 20 Apr 2022 20:46:46 GMT

Spring is an ideal time to clean up your finances, clear out the clutter, and get a fresh start. Maybe you have more money left over at the end of the month and could use a budget tweak. Perhaps you have too many expenses in automatic, or it’s time to apply the brakes to your credit card spending. Whatever the reason may be, consider the following seven suggestions to get a better handle on your finances this spring season.

1. Clean Up Your Spending

Whether you call it a budget or a spending plan, you only need to look in the rearview mirror over the past few months and write down your repeating bills and expenses. When you inventory those expenses, assign a priority number from one to three, with one being expenses you must meet to avoid being evicted from your home and three being rather nice to have, but you could live without. Clear out or reduce drastically your level three expenses. For example, that $70 cable bill is a great candidate for your first cut. Try less expensive streaming services.

2. Clear the Decks and Put Your Savings on Autopilot

That 50 bucks a month you recouped by disconnecting your cable service can now be redirected automatically to your emergency fund. ¹ If you don’t have an emergency fund to cover at least six months' expenses, you could literally be one or two paychecks away from disaster.

3. Review Your Tax Withholding

You’re looking forward to that big tax refund this year. However, what you have actually done is given the U.S. Government a 12-month interest-free loan. Give it to yourself as a monthly upfront paycheck increase. Adjust your withholding for a better balance and slide that extra money into savings or another investment plan.

4. Inventory Your Material Wealth

Dedicate an hour or two to photographing and cataloging your household possessions. Concentrate on the big-ticket items like your furniture and expensive electronics. Write out the approximate amount you paid and when you purchased the piece. As you bring new items into your home, save the receipts and update your inventory.

5. Check Into Your Renter or Home-Owner Insurance

Your spring cleaning should include a complete insurance check-up. Go to your insurance files and this time really read the fine print. Is your coverage adequate to replace everything you inventoried after you followed suggestion #4 above? If you own your home, you probably know that replacement costs have risen everywhere. Make sure you're covered.

Also, it wouldn’t hurt to check and possibly upgrade your life insurance, especially if your family has grown or your income has gone up.

6. Plug Into Technology

Let the free and secure technology of your online banking platform keep you on the straight and narrow. Most banking sites have the settings you need to do what you wouldn’t do for yourself. Want to receive a warning when your account balance gets too low or your credit card spending is over a set amount? Your bank can do that via email or text message.

7. Get Your Paper Files in Order

For the financial papers you must keep, devise an orderly filing system. ² If you’re after a more simplistic method, head to your office supply store and buy an expandable folder with month separator tabs. Stash the papers you usually throw away each month in the appropriate month of the folder. When January 2020 rolls around, throw out the papers for January 2019 to make room for the current month.

Finally, remember that bad financial habits come from neglect and passive spending decisions. Spring is the ideal time to get back in the driver’s seat and reacquire the big picture. Clear out the clutter and do away with what is not working for you.

Understanding FDIC Insurance

Thu, 14 Apr 2022 15:30:56 GMT

If you have money in the bank, you want to know that it’s protected. Luckily, the Federal Deposit Insurance Corporation, or FDIC, insurance was designed to ensure your peace of mind. FDIC insurance protects your money in case something happens to the bank.

Let’s dive deeper into what FDIC insurance is, how it works, and what it protects. This article also provides some financial strategies to maximize your FDIC insurance benefits.

What Is FDIC Insurance?

The FDIC is an independent government agency that protects bank depositors from the loss of uninsured deposits at an FDIC-insured bank. This organization oversees FDIC deposit insurance, which protects bank customers in the event that an FDIC-insured institution fails. ¹ In other words, FDIC insures your money at the bank.

A bank failure is an unlikely situation, but it’s possible. In that case, the FDIC would provide depositors with an insurance payout up to the insurance limit, which in most cases is $250,000 per depositor, per institution, and per ownership category (more on that later). They might do this by offering depositors a new account of the same amount at an insured bank or by issuing a check for the insured amount to the depositor.

If you bank at an FDIC-insured institution, you don’t need to apply for FDIC insurance because coverage is automatic.

A History of FDIC Insurance

Believe it or not, money stored at the bank wasn’t always protected with insurance! FDIC insurance was established in 1934 as a response to the bank failures depositors witnessed during the Great Depression. ²

Since then, there have been multiple instances of banks failing, and the FDIC has continuously protected insured deposits. For example, dozens of banks failed during the Great Recession, and four banks failed in 2020. ³ While it’s unlikely to happen, banks do fail, which is why it’s important to make sure your deposits are insured.

What Does FDIC Insurance Protect?

Now, for the most important question: What does FDIC insurance protect? The FDIC’s website does a great job of explaining what’s covered under FDIC insurance and what isn’t. ⁴

First, FDIC insurance covers traditional deposit accounts of up to $250,000 per depositor, per institution, and per ownership category. These traditional deposit accounts include the following:

Checking accounts
Savings accounts
Money market deposit accounts
Certificates of deposit (CDs)
Prepaid cards (assuming all FDIC requirements are met)

In addition, the FDIC also insures retirement accounts in which plan participants have the right to direct how the money is invested, including:

IRAs
401(k)s or other self-directed defined contribution plans
Self-directed Keogh plan accounts
Section 457 deferred compensation plan accounts, whether self-directed or not

They may also insure an employee benefit plan that is not self-directed, such as a pension plan.

What Does FDIC Insurance Not Protect?

Now that you understand what FDIC insurance does cover, let’s also look at what it doesn’t cover. ⁵ The FDIC states that it does not cover:

Stocks
Bonds
Mutual funds
Life insurance policies
Annuities
Municipal securities
Safety deposit boxes or their contents
US Treasury bills, bonds, or notes

With these types of accounts, talk to your financial advisor to ensure that they are protected.

How to Maximize Your FDIC Insurance

It’s important to know how to maximize your FDIC insurance and make the most out of your coverage.

As we mentioned above, the FDIC insures up to $250,000 for a single or joint account per depositor, per institution, per ownership category. This means that a person can have one account or multiple accounts at the same bank, but only $250,000 is insured.

But, there are multiple strategies to enhance your coverage. The most simple is to open multiple bank accounts at multiple banks and not have them exceed $250,000.

But, you may also be able to set up a revocable trust and identify one or more beneficiaries to increase your coverage. Each beneficiary then receives $250,000 of coverage. For example, a revocable trust account with one owner that names three unique beneficiaries can be insured up to $750,000. ⁶ There are a few qualifications for setting up both revocable and irrevocable trusts, though, so talk to your financial professional to make sure your account qualifies for increased FDIC insurance.

The FDIC has set out to protect depositors in the case of an emergency and FDIC insurance is a great tool to securely store your assets.

How to Calculate Your Net Worth & Why It Matters

Wed, 06 Apr 2022 19:56:39 GMT

We hear a lot about net worth, but what exactly does net worth mean and why does it matter? Here, let’s learn more about what your net worth is, how to calculate it and the role it plays in your investment strategy and finances.

What Does “Net Worth” Mean?

Net worth refers to all of your assets minus liabilities, or what you own minus what you owe. For example, if your house is worth $1,000,000 and you have a $500,000 mortgage, you own $500,000 in equity.

How do you Calculate Net Worth?

To calculate your net worth, first, take an inventory of everything you own. Net worth generally includes cash, investments, property, vehicles and anything else you own. To get an accurate estimate for depreciating assets (such as cars), you may need to research how much they are currently worth. Remember, your net worth can include assets you are paying off (such as a home) because you will subtract what you owe.

Here are some things you should include when calculating your net worth (although this list isn’t exhaustive):

Cash

Checking accounts
Savings accounts
CDs (certificates of deposit)
Other cash

Investments

Stocks
Bonds
Mutual Funds
Securities
Treasury bills
Bullion (silver, gold, etc.)
Other investments

Property

Real estate (market value)
Investment properties
Vehicles
Jewelry, art and collectibles
Other property

Retirement

Retirement accounts (IRA, 401(K), pension plans, etc.)
Social security
Other retirement assets

Once you have an inventory of everything you own, subtract what you owe. Here are some examples of liabilities:

Auto loans
Mortgages
Credit card debt
Consumer loans
Student loans
Unpaid taxes

After subtracting your liabilities from your assets, you will have your net worth.

Net Worth and Your Financial Health

A lot of people talk about net worth as a part of your financial health and while it’s an important part, it’s only one part of your overall financial picture. There are many caveats and considerations with net worth.

For example, net worth doesn’t include your annual income, so someone with a high annual income but with higher expenses could have a lower net worth than someone with a lower annual income that invests in appreciating assets. Those focused on growing their net worth may consider investing in appreciating assets and lowering their debt and liabilities.

In addition, net worth may have implications on your taxes. Your tax bracket may be determined by your annual income, but those brackets don’t necessarily include net worth. ¹ So if you are a high-income earner, and have a high debt-to-income ratio, and are in one of the highest marginal rate tax brackets, you may accumulate net worth much lower than someone who makes less money annually, but has less debt, more appreciating assets and is in a lower tax bracket.

When working with a financial advisor, they may consider your net worth, but they may also consider your lifestyle and what is impacting whether or not you are accumulating wealth. Rather than look at net worth, many advisors instead look at investable assets, which is the amount of money you have ready to invest. Net worth can be tied up in property or other investments and may not be liquid enough to invest.

Understanding your financial health is important and net worth is just one component.

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022

5 Costly Mistakes You Could Be Making With Your Life Insurance Policy

Wed, 30 Mar 2022 17:39:53 GMT

Life insurance is your shield against unexpected (or eventual) hardship. The proceeds, type and timing of the insurance need to be tailored to individual and family needs. Having too much insurance could cost thousands in the long term. And the implications of having none or not enough are worrisome. Here are the five biggest mistakes families make with life insurance policies and how you can avoid them.

Mistake #1: Underestimating Your Cost of Living

Unfortunately, many individuals are forced to go through their spouse’s life insurance benefits within a matter of months, leaving very little sustainability. And having children can make this even more challenging. According to the USDA, the average cost to raise a child through to the age of 17 is just over $233,000, not including college. ¹

Get an unbiased, no-nonsense analysis of your current insurance needs to protect you and your family against financial hardship. And, check your policy and see if you and your loved ones could maintain your current or future cost of living. Knowing what your family will require will allow you to update your insurance to meet those goals.

Mistake #2: Misunderstanding Your Term Life Insurance Coverage

If you carry a low-premium term insurance policy, then you’re paying lower premiums for higher coverage. However, your premium and payout amounts will fluctuate with age. In this way, relying on term insurance is equivalent to renting a home. You gain no equity in your account, and the longer you live, the more the insurance companies profit.

Consider buying insurance policies where your premiums build equity and provide an insurance safety net. There are many life insurance products on the market and making the right choice can be challenging. Make sure you get advice from an insurance expert and tailor your portfolio accordingly.

Mistake #3: Overpaying For a Policy

A single person with no dependents needs only enough insurance to cover burial costs. Even though life insurance is cheaper for the young, buying big coverage earlier in life could be costly and a waste of money.

Adjust your life insurance needs to your life changes to eliminate monetary concerns for your loved ones upon the event of your passing. This way you don’t overpay for a policy that you won’t need.

Mistake #4: Purchasing Too Many Policies

Banks, airlines, car rentals and even credit card companies offer life insurance policies. These policies are incredibly profitable to the provider but are rarely collected on.

Instead, purchase life insurance from an insurance provider. And, if your provider covers all of your concerns, then avoid purchasing insurance from unnecessary sources.

Mistake #5: Neglecting to Reassess Your Policy

You don’t want to wait till a tragic event occurs to check your insurance policy. Many life changes elicit a review of your current policy. You should always have at least two backup beneficiaries. Are they current? What about making the children backup recipients?

Generally, it’s a good idea to review and update your insurance policy every three years. This is especially important if you rely on term insurance with time limits, as gaps in coverage can affect the term of your policy.

Understanding common life insurance mistakes can help you determine your current and future needs, and save money in the long run. Make sure to always consult your insurance provider before making any changes to your life insurance policy.

https://www.usda.gov/media/blog/2017/01/13/cost-raising-child

6 Ways to Stay Financially Fit in 2022

Tue, 22 Mar 2022 16:17:10 GMT

The new year is here, and your resolutions are probably well underway. While you may set goals to get more physically fit, it is also important to consider your financial fitness going into the new year. If your finances are not where you want them to be, or maybe they need a little tune-up, the six tips below will help you get your finances in shape.

1. Trim the Fat

One of the first steps toward a healthier financial future is spending less. If you take the time to look hard at your budget, odds are you can find some excess that you can easily trim off without feeling a pinch. Start with your non-essentials, such as cable and phone. Do you really need extra movie channels and data? When was the last time you shopped around to compare prices? Next, delve into spending items such as clothing, groceries, and entertainment, and see if smart shopping or more date nights at home can help free up some extra money each month. Then, look at your utility bills and find ways to reduce them. Finally, discipline yourself to follow good energy-saving tips to reduce the overall cost of your energy bills.

2. Tone Up Your Debt

Odds are, the holidays have increased your credit card bills. Do not let that debt snowball higher than it needs to by accruing interest. Start with your highest interest rate card, and set a larger payment in your budget to begin lessening that total. Once it is paid off, use that same payment to start tackling your next high-interest debt, and so on. A critical part to remember is that when paying only your minimum payment, it will take you 10 years and a significant amount of interest to pay off your card, so always pay more than the minimum if you are looking to pay off debt.

3. Whip Your Credit into Shape

Your credit score can affect many aspects of your financial life. Whether you are looking to buy a house or car or to take out a loan to start a business, your credit score will be used to determine how much interest you will pay and how likely you are to even get those funds. Unfortunately, many people neglect their scores until they need them, and at that point, it can be difficult to improve quickly. Keep your credit card balance far from the limits, be sure to make payments on time, and monitor your score for negative marks.

4. Load Up on Savings

Once you have trimmed the fat off your budget, you will want to put some of that into savings. One goal to start immediately is creating an emergency fund. Surprise repairs, medical bills, and layoffs can damage your financial health if you are not prepared for them. Having this fund available for these times can lessen the blow and help you stay on top of your bills so you do not fall behind.

5. Put Retirement Savings in Your Routine

Saving for retirement is critical to your future. Many people do not save enough for their retirement or wait so long that they stress their budget to meet their goals. Make it a point this year to focus on your retirement goals and find extra funds that you can put into your account so that it has the necessary time to grow as it should. Find out if your company matches contributions, and if so, try to put in as close to the amount they will match as possible.

6. Start a New Investing Routine

Investing is the quickest way to grow your wealth, but many people are afraid to enter the world of investing because they are afraid of losing money. Others are under the misconception that you must invest a lot of money when the truth is that you can begin your investment journey with as little as $100. Start small so you can get the hang of it, and if you have more money to invest, consider meeting with a financial advisor who can help you pick a mix of funds based on your risk tolerance.

Get your finances healthy this year and set attainable goals to help you grow your wealth and get started toward a secure financial future.

Understanding (and Avoiding) the "Money Illusion"

Thu, 10 Mar 2022 23:22:39 GMT

It’s no surprise that a dollar today isn’t worth the same as a dollar was 20 years ago. This is the result of inflation. Inflation plays a major role in financial planning whether you are conscious of it or not.

The money illusion refers to a cognitive bias that fails to take inflation into account. Let’s dive into what the money illusion is, how it can impact your long-term financial planning, and ways to combat the money illusion.

What is the Money Illusion?

According to Seeking Alpha, money illusion (or price illusion) is the tendency to think of your income in nominal values versus real terms.1 When you think of something in nominal terms, you fail to consider external factors such as inflation.

Nominal value is not the same as real value. For example, the real value of two shirts might be the exact same because they cost the same to manufacture, but one might sell at a higher price point due to demand, marketing, reputation, and brand name. These external factors contribute to the real cost of the shirt.

The same is true for your money. If you get a 5% raise at work, but inflation is 7%, you are at a net loss of 2% in terms of real value.

There are a few reasons why the money illusion continues to play a role in the way we think about financial planning. The first comes down to a simple lack of financial education. Many people don’t know the rate of inflation or don’t understand how it impacts the real value of their income.

The second is price stickiness. Price stickiness occurs when goods and services remain the same price despite other economic factors.2 These rigid prices may color our view of inflation and make it seem like we can buy the same things today as we could in the past for the same amount, even if this isn’t reflective of the overall economy.

How The Money Illusion May Impact Financial Planning

As you can see, the money illusion is a tricky cognitive bias that, over the course of your long-term financial planning, may put you behind your goals. If you think to yourself that you need $1 million to retire comfortably in today’s real terms, what does that equate to in 10, 20, or 30 years when you are actually ready to retire? You will likely need more than $1 million to retire comfortably as you race inflation.

How to Combat The Money Illusion

Without acknowledging inflation and the real buying power of your income, you may slowly fall behind on your financial goals. But, by building out a solid financial strategy and understanding our current economy, you can combat the money illusion and understand how much money you actually need to pursue your long-term goals.

One way to do this is to understand how inflation works and the current rate of inflation. This will help you understand how much you have to make to keep up your buying power.

Another way to do this is to not make risky financial decisions without understanding the market as a whole. As we talked about, price stickiness might be deceiving when you look at what you can afford. Sure, you might be able to afford a new home or car, but with rising rates of inflation that item might be more expensive than it’s advertised.

Lastly, you can work with a financial professional to create an retirement income plan that hedges against inflation. The average rate of return of the S&P 500 index is about 8% per year3 and the annual rate of inflation in the US hit 6.2% in October 2021.4 This means that your retirement strategies may help you minimize the impact of inflation over the long term. Talk to your financial professional about specific strategies that can help combat the money illusion and inflation.

Your Guide to Emergency IRA and 401(k) Withdrawals

Wed, 02 Mar 2022 21:02:49 GMT

Life is complex, and if you find the need to tap into your retirement savings account, you are not alone. In some cases, it may be the right move, or you might not have a choice. According to a recent study, more than half of investors aged 18–34 years have already tapped into their tax-advantaged retirement account. ¹

IRA and 401(k) accounts are essentially a deal with the government. In exchange for investing for retirement, the government allows preferential and/or deferred tax treatment. If you have not reached the age of 59 ½ yet, most retirement plan distributions from these accounts are considered “premature” and are subject to an extra 10% early withdrawal tax.

So what are the exceptions to the 10% early distribution tax? Navigating these rules may help you avoid substantial additional taxation. ²

IRA and 401(k) Early Distribution Penalty Exemptions

The following are considered qualifying exemptions to the 10% early distribution penalty:

Age. Withdrawals after the age of 59 ½.
Death. It may be unfortunate to think about, but any withdrawals after the death of the account holder are not subject to penalty.
Disability. Total and permanent disability of the account owner.
“Substantially Equal Periodic Payments.” Under Rule 72(t), setting up substantially equal periodic payments for your life expectancy (or your designated beneficiary). ³
IRS Levy. Do you owe the IRS money? You may be able to cover unpaid taxes using a penalty-free withdrawal.
Medical. This includes unreimbursed medical expenses in excess of 10% of your adjusted gross income (AGI).
Military. Qualifying distributions to military reservists during active duty.
Rollovers. Must be properly executed within 60 days.
Natural Disaster. Some natural disasters receive temporary, event-specific legislation allowing penalty-free withdrawals on a case-by-case basis. ⁴

IRA Early Distribution Penalty Exemptions

Education. These include tuition, books, supplies and other qualified education expenses for you, your spouse, children and even grandchildren.
First-time homebuyers may withdraw up to $10,000 without penalty.
Health insurance premiums incurred during a period of unemployment.

401(k) Early Distribution Penalty Exemptions

Separation from Service. If separated from service after age 55 (age 50 for certain qualifying governmental public safety employees).
Loans. If allowed by the plan, you may qualify for a 401(k) loan. It is not a withdrawal, but the account is treated as collateral.

Do It the Right Way!

Documentation is important. Make sure you’re saving records and talking to the right people, such as your office human resources department and your financial professional. Hardship withdrawals may require proof once it’s time to pay taxes. It’s important to also keep in mind that any dollar taken out is a dollar that won’t grow or be available for your future retirement.

If you have to dip into your retirement account, don’t despair. You may have more time to recover than you initially think. Steady progress is important, starting with re-filling your emergency fund and paying off any high-interest debt. Once you’re able, you may want to scale back expenses and set up automatic deposits to ensure that the money is going back into your investment account.

Are you still thinking about making an early withdrawal? Whether your withdrawal falls under the exemption or not, a conversation with a financial professional might be the right place to start.

How Your Money Mentality Should Change in Retirement

Wed, 23 Feb 2022 15:18:39 GMT

Reaching retirement can feel like crossing the finish line at the end of a 30-, 40- or even 50-year-long marathon. Therefore, many of us look forward to the endless vacation days and the rest and relaxation of retirement. Although a life with no alarm clock is something we dream about, the truth is that retirement really throws a wrench in how we view our money, and the switch from receiving structured, employment-driven income to drawing down investment accounts can be harder than we realize.

If you’re retired (or nearing retirement), you’ve worked long enough to see a vastly transformed economy. Factors like offshored workforces and manufacturing, corporate acquisitions, and the transition from a manufacturing-based economy to one of service, information and technology-based has fundamentally changed employment dynamics.

With some public-sector and rare private business exceptions, defined benefit plans like pensions have gone the way of the dinosaur. This means the burden of saving for retirement has shifted to you. And just as your money mentality has changed over the course of your career, so too should it change when you retire.

Changing Your Money Mentality in Retirement

You used to ask yourself if you were saving enough money for retirement. Now you’ll have to ask yourself how long you need that money to last for both you and your partner.

You used to set retirement savings goals. Now you look at your money in an entirely different way, and your goal is to set budget goals that make sense for your lifestyle.

You used to optimize your portfolio to reflect your growth needs and risk capacity. Now that you’re retired, you may look at dips in the market and other risks in an entirely different way.

You (probably) used to work full-time for your primary source of income. Now, luckily, you have a lot more flexibility. Do you want to work part-time? Consult? Or do you want to pursue a retirement career that reflects one of your passions?

Retirement Mindset Means More Than Just Money

When you think about it, suddenly moving from working 40 hours a week to zero can be a real shock to your system. Although it may sound great in theory, the truth is that we’re creatures of habit—and we don’t always react well to quick and dramatic changes. Some employers will allow you to ease into retirement by gradually shortening your workweek over a year or a couple of years. This can be a great way to get your toes wet before diving right into full retirement. Use your days off to discover new hobbies, start volunteering, meet with friends and begin developing a new routine you can expand on throughout retirement.

If your current place of employment does not offer a gradual retirement option, you could search for a part-time job, perhaps something that’s more laid back or of interest to you. Easing into retirement not only helps reduce the shock but also can be a great way to continue earning income without committing to a full workweek.

Everybody Needs a Helping Hand Sometimes

If you’re struggling with your money mentality, there are things you can do to help. For many, this starts with making sure they’re aligned with their passions—friends, family, travel, hobbies, volunteering and so much more. Some look for role models, people like them who are wonderful examples of thriving in retirement. Others get help from their financial professionals to set and meet their retirement goals.

How to Invest in Your Health in 2022

Thu, 17 Feb 2022 16:41:29 GMT

How to Invest in Your Health in 2022

Healthcare is one of the essential parts of life's financial and personal journey. Many have not yet utilized all the financial tools that may help.

Health Savings Accounts (HSAs)

An HSA gives you a tax-exempt savings account to pay for your healthcare expenses. The money you don't spend in one health plan year rolls over to the next. You are also enrolled in an HDHP (High Deductible Health Plan), in which your insurance company will only pick up the tab for significant healthcare expenses (including types of preventive care, maternity care, and pediatric primary care).

A large draw for many are the tax benefits inherent to HSAs:

Contributions through an employer are always pre-tax.
You can invest the funds after your account balance reaches a certain level.
Distributions for qualified health expenses aren't taxable.

Unlike a Flexible Spending Account (FSA), which is funded with pre-tax dollars but must be used by a specific deadline, HSA contributions can remain in your account to be used for future medical bills at any time. In short, this means there is no "use it or lose it" penalty. ¹

Keep in mind that if you spend your HSA funds for non-qualified expenses before age 65, you may be required to pay ordinary income tax as well as a 20% penalty. After age 65, you may be required to pay ordinary income taxes on HSA funds used for non-qualified expenses. HSA contributions are exempt from federal income tax; however, they are not exempt from state taxes in certain states.

HSA Contribution Limits Are Adjusted Annually for Inflation

For 2022, the self-only contribution limit is $3,650 or $7,300 for families. This is a $50 increase for individuals and a $100 increase for families from 2021. The contribution limit includes contributions from both employers and employees (or family members).

These adjustments are rounded to the nearest $50 to account for inflation rates, which are determined using the Consumer Price Index for All Urban Consumers. ²

How to Use Your HSA

The IRS or your HSA provider are great sources when getting started. For example, the IRS recently issued a reminder that at-home COVID-19 tests, face masks and sanitizing wipes can all be purchased or qualify for reimbursement through an HSA. In addition, the IRS offers an interactive assessment tool that can take the guesswork out of what qualifies as an HSA-friendly expense. ³

In the traditional insurance plan, you pay high premiums up front; in the HDHP, you pay lower premiums and essentially assign the savings to your own healthcare expense account.

Flexible Spending Accounts (FSAs)

With an FSA, you deduct pre-tax dollars out of your salary to pay qualified medical expenses. You can designate an FSA for your healthcare expenses or those of a dependent. But most FSAs are "use it or lose it"—at the end of the plan year, the money left in the account doesn't roll over into the following year. Employees tend to minimally fund FSAs, although they can be used in conjunction with HSAs.

Consolidating Medical Procedures

If your medical expenses are more than 7.5% of your Adjusted Gross Income (AGI), you may be able to use them to cut your tax bill. This includes payments to doctors, dentists, surgeons, mental health practitioners and other medical bills. It can also extend to hospital care, nursing home care, additional programs, prescription drugs, insulin, and more. For some, this incentivizes consolidating eligible medical procedures within a single tax year rather than spreading them across multiple years when they might not meet the threshold.

If you're considering this option, you will want to keep good records because you need to itemize these through Schedule A on your tax return. Ultimately, it may be a good idea to schedule your treatments carefully, as you will only be able to claim costs accrued in the same year. There's no carry-over. If you can arrange them so that your charges amount to the necessary portion of your AGI, it can be to your advantage when tax time comes. ⁴

Whether you consider taking on an HSA, FSA or consolidating your medical procedures, it may be helpful to reach out to a financial professional to talk about these options ahead of the new year.

What Is My Tax Bracket for the 2022 Tax Year?

Wed, 09 Feb 2022 16:08:00 GMT

It's never too early to start looking at your tax obligations for the coming tax season. The information in this article is for the 2022 tax year, which most taxpayers will file in 2023.

The seven 2022 tax rates themselves didn't change (they are the same as those in effect for the 2021 tax year); however, the tax bracket ranges were modified based on inflation. Because of this, it's possible you could be in a different tax bracket for 2022 than the last time you reported your taxes, even if your income has not changed. ¹

Reminder: Tax Brackets Are Marginal

The IRS divides income into different tax rates. Each subsequent portion of your income will have an increased tax rate. For example, if you are a single filer who made $40,125 in 2022, your first $10,275 will be taxed at 10 percent. The next portion of your income will be taxed at an increased rate; from $10,276 to $41,775, your tax rate will be 12 percent.

As your income increases, you’ll fall into higher tax brackets and will have a higher tax rate for each portion of your income.

Why Would My Tax Bracket Be Different?

The IRS regularly adjusts tax brackets to take inflation into consideration. This is because, with inflation, people will face higher prices, meaning the purchasing power of their dollar is decreased. Knowing this, the IRS adjusts brackets in order to avoid bracket creep, a circumstance that occurs when inflation pushes your income into a higher tax bracket, or credits and deductions are reduced. In this scenario, an individual may not actually have increased purchasing power or greater disposable income, even with an increase in wages and salaries. ¹

2022 Tax Brackets

Without further ado, here are the 2022 tax brackets according to your filing status and income from the IRS. ¹

10% Tax Rate

Single Individuals: from $0 to $10,275
Married Individuals Filing Jointly: from $0 to $20,550
Heads of Households: from $0 to $14,650
Married Individuals Filing Separately: from $0 to $10,275

12% Tax Rate

Single Individuals: from $10,276 to $41,775
Married Individuals Filing Jointly: from $20,551 to $83,550
Heads of Households: from $14,651 to $55,900
Married Individuals Filing Separately: from $10,276 to $41,775

22% Tax Rate

Single Individuals: from $41,776 to $89,075
Married Individuals Filing Jointly: from $83,551 to $178,150
Heads of Households: from $55,901 to $89,050
Married Individuals Filing Separately: from $41,776 to $89,075

24% Tax Rate

Single Individuals: from $89,076 to $170,050
Married Individuals Filing Jointly: from $178,151 to $340,100
Heads of Households: from $89,051 to $170,050
Married Individuals Filing Separately: from $89,076 to $170,050

32% Tax Rate

Single Individuals: from $170,051 to $215,950
Married Individuals Filing Jointly: from $340,101 to $431,900
Heads of Households: from $170,051 to $215,950
Married Individuals Filing Separately: from $170,051 to $215,950

35% Tax Rate

Single Individuals: $215,951 to $539,900
Married Individuals Filing Jointly: from $431,901 to $647,850
Heads of Households: from $215,951 to $539,900
Married Individuals Filing Separately: from $215,951 to $323,925

37% Tax Rate

Single Individuals: over $539,901
Married Individuals Filing Jointly: over $647,851
Heads of Households: over $539,901
Married Individuals Filing Separately: over $323,926

In addition to the tax inflation adjustments, the IRS also altered standard deductions. While the above rates and brackets are at the federal level, different states might have varying brackets and rates.

https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022

Your 2022 Tax Filing Season To-Do List

Tue, 01 Feb 2022 17:03:29 GMT

The tax season is officially here. If you haven't already, now is the time to get prepared. Whether you meet with a tax professional or prepare your taxes yourself, proper planning helps the processes go more smoothly and may reduce the risk of costly errors. Check out the tips below and prepare to tackle this tax season with confidence.

To-Do #1: Gather All of Your Forms

Beginning in January, you likely started to receive the forms you need to properly complete your tax return. If you are expecting a large refund, you will want to make a list so you don't forget anything that could affect it. Once you have received your documents, first give them a scan to make sure they are correct and contact the sender if there are any discrepancies. Remember, even a simple misspelling can cause a flag with your tax return. Inspect all of your documents carefully.

Some of the forms you will need to look out for include:

W-2s from your job
SSA-1099 for Social Security benefits
1099s for additional income, interest, gains and losses
1095-A for government marketplace health coverage
1098s for reporting interest and tuition payments
W-2Gs for any gambling winnings
Schedule K-1s for company ownership

To-Do #2: Round Up Your Receipts

If you have your own business or plan on itemizing your deductions, you will need to record expenses so that you can take advantage of any available write-offs. Gather all the receipts for business expenses, medical expenses and other expenses that can be listed on your Schedule A or Schedule C. Receipts can be physical receipts or bank and credit card statements that show payments for these items. Once gathered, organize them by type, so they are easy to find when you begin filing.

To-Do #3: Acquire Records of All Charitable Contributions

Throughout the year, you may have made donations to a tax-exempt organization. These donations can provide you with a charitable contribution write off. Traditionally, this could only be done if you choose to itemize your deduction. However, because of the CARES Act, filers who choose a standard deduction may be able eligible to write-off up to $300 in charitable contributions. ¹

Other donation types will still require an itemized deduction and documentation. Most organizations, from churches to fundraisers, can provide a record of your tax-deductible contributions.

To-Do #4: Create a List of All Personal Information

While you likely know your Social Security number by heart, you will want to jot down the Social Security numbers of any dependents you wish to claim. This way it is easy to access and you can be sure it’s accurate. Also, make a list of addresses for any properties you own as well as the dates on which they were bought or sold.

To-Do #5: Get a Copy of Last Year’s Tax Return

If you are using the same preparer as the previous year, they should have a copy of your tax return. If not, find your old copy and have it ready with your other tax items. Being able to reference your previous return can help you see what you filed last year, so you don't overlook something this year.

To-Do #6: Determine How You Will Spend Your Refund

If you expect to get a refund this year, you might want to take some time to consider what you plan to do with your return once you receive it. You have the option to apply your payment towards your tax bill next year if you believe you will owe. This can be a good idea for those who pay estimated taxes throughout the year as it can often put a chunk towards your first installment.

Alternatively, you can choose to send the money directly to a checking or savings account, or contribute it to an IRA, health savings account or education account. If you plan to split the funds between accounts, you will need to complete a Form 8888.

Don't let tax preparation leave you feeling overwhelmed. Enjoy less stress and a smoother process by preparing everything you need for filing this tax season.

https://www.irs.gov/newsroom/how-the-cares-act-changes-deducting-charitable-contributions

January Is National Financial Wellness Month

Thu, 27 Jan 2022 17:15:39 GMT

January Is National Financial Wellness Month

January is Financial Wellness Month, a time to remind people to plan and update their financial strategy.

It’s a great time to connect with your financial professional to discuss your financial situation and aspirations for their future. It’s also a good time to connect to see if your financial strategy needs any adjustments or changes based on your lifestyle.

Defining Financial Wellness

The first thing to do is define what “financial wellness” means for you. This might drastically vary from person to person. It is informed by who you are, where you are coming from and what your experiences with money are. A person who has had serious financial troubles in their life might have different expectations from a person who has enjoyed relative financial stability. ^1,2

How, then, to define this? First, ask yourself what you need to feel secure, financially speaking. Here are the questions to consider:

How much should you have saved?
How much income should you be bringing in each month?
Where are you at with your debt?
Would things be simpler if you carried less debt?
How fluid is your cash flow when it comes to expenses that are not urgent (taking your family out to dinner or on a small trip) versus larger financial goals (such as buying a new kitchen appliance)?
Finally, and perhaps most importantly, will you be able to retire at your target age?

Financial Wellness Goals

Thinking about financial wellness is often a matter of setting goals for what you can accomplish now and what you can work on to make it a part of your larger financial strategy. For now, consider taking these actions: ³

Have a values-based conversation with the decision-makers in your household, meaning any tax-paying adult who contributes income and shares responsibility for the bills. This could be your spouse or a family member. Make sure that the non-essential things you are spending money on lining up with your commitments to meet your financial needs. This is not a “stop getting lattes” conversation; it is a “are we spending money on the things that matter?” conversation.
Consider automating payments, especially towards regular items, including student loans, credit cards and other installment payments.
Creating an emergency fund reflecting 3–6 months of household expenses will afford you a stable foundation going forward. If that seems too ambitious, build the fund a month at a time until you reach your goal.
Make regular contributions to your retirement accounts. Take advantage of any matching contributions you might get from your employer.
Make long-term financial goals. If you are thinking in terms of buying a house, for instance, let that guide your overall financial strategy.
Is becoming totally debt-free an achievable goal? It can be, if you make it a priority. That said, being totally debt-free may be a difficult task for most households. For that reason, it may be better for you to focus on your other goals first and make debt freedom a target for a later date: for example, being debt-free by retirement.

These are, of course, not hard and fast rules. As mentioned above, every individual has their own specific definition of financial wellness. Some of these examples might feel like a long reach. Others, you might already be practicing. The good news is that with careful practice and judicious scrutiny, many people can gain a feeling of satisfaction and even pleasure from maintaining financial wellness.

Having your financial strategy in place not only can mean a great deal to you in the long term but also may provide you some comfort in the short term. Schedule a time to discuss this with your trusted financial professional today.

Estate Planning in 2022: Do You Have These Documents Prepared?

Wed, 12 Jan 2022 16:18:30 GMT

Estate planning is an often complex financial process that nearly all investors should consider. It includes reviewing legal and tax implications, investment strategies and personal questions to ensure your estate is set up efficiently.

As we ring in 2022, let’s look at some of the most important estate planning documents you should have prepared.

Wills & Trusts

When you think about considering estate planning in 2022, one of the most important documents to consider is your will or trust. A will is a document that spells out your wishes regarding the distribution of your assets and care of any dependents if needed. A trust is a tax-advantaged way to arrange ownership of your assets and allows a third party to hold these assets on behalf of a beneficiary.

Both of these documents are usually part of a well-crafted estate plan because they have different focuses. By preparing these important documents, you can help protect your legacy and make the transition of assets easier when you are gone.

There are also two subsets to these documents: living trusts and living wills.

What is a Living Trust?

A living trust is a legal document that places your assets in a trust while you are alive and also designates where these assets will go upon your death. Some investors choose to also implement a living trust into their estate planning strategy because it is revocable (meaning that it can be changed), and it may allow your estate to bypass probate, which can be a long and costly process.

What is a Living Will?

You can also set up a living will, which is a directive to physicians that explains your end-of-life medical care preferences. If you are unable to communicate, a living will helps doctors and family members make decisions about your care based on what you would prefer (e.g., CPR, mechanical ventilation, tube feeding, organ donation).

In your living will, you may also specify a healthcare power of attorney, which is an agent who can make important healthcare decisions on your behalf.

Beneficiary Designations

A will or trust explains how you would like your assets distributed among beneficiaries, so it’s also important to update your beneficiaries as you build your estate plan. You should have a contingent beneficiary stated on all insurance and retirement accounts, as well as contingent beneficiaries stated in your will or trust. The new year is a great time to review your beneficiaries as things can change (e.g. marriage or divorce, kids and grandkids, new in-laws, etc.) and having an outdated estate plan can be a recipe for disaster.

If no beneficiary is stated, your estate may end up in the hands of the court, which can be an impersonal way to handle your assets because a judge has no familiarity with your wishes.

Power of Attorney

Power of attorney (POA) is given to the agent or person you designate to act on your behalf and oversee your will if you are unable to do so. It’s important to designate POA because if you don’t, the court may decide how your will and assets should be managed.

You don’t have to give POA to a family member, either. You can choose a trusted friend or financial advisor to act as the agent of your will, especially if they have a strong financial and estate planning background.

Letter of Intent

A letter of intent might cover other details that aren’t included in a will, such as funeral arrangements or a decision for a particular asset. Unlike a will, most letters of intent aren’t legal documents, but they provide supplemental information for your estate and the more information you have for your beneficiaries, the better. A letter of intent can help supplement gaps in a will and answer questions your beneficiaries or probate court might have.

These are just a few of the important documents you should consider adding to your estate planning strategy in 2022. Talk with your financial advisor about everything you need to know when getting your estate in order.

5 Financial Goals for the New Year

Mon, 03 Jan 2022 13:39:24 GMT

The new year is here and now is the time to create financial goals to help you get on track and set yourself up for a more financially stable future. Sometimes getting your finances organized can be a daunting task, but by setting a few yearly goals, it can be easier than you think. Start the year off right by getting started on the five financial goals listed below.

1. Draft a Monthly Budget

Even though this may seem like a common goal, many people find it hard to complete this task each month and stick to it. A monthly budget is the beginning of gaining better control of your finances and the more detailed, the better. When creating your budget, make sure that every penny is accounted for including savings, investments, clothing, food, entertainment, etc. It will not only help you realize what you spend each month, but it also will help direct your focus on areas where you can improve and goals you can set for the extra money you may have when sticking to your budget.

2. Take Control of Your Debt

Debt can be one of the primary factors that can hold you back from financial success. Make a reasonable plan to reduce your debt and stick to it. You can start by determining a reasonable amount of debt that you would like to reduce for the year, making sure that the goal is attainable. Next, determine how much you will need to pay each month in order to reduce your debt by the goal amount. Finally, you will need to look at your budget and find a way to fit this amount each month, even if it means cutting back on other areas of the budget. It is also important to make sure that you do not add any more debt throughout the year.

3. Make an Emergency Fund a Priority

Medical costs, major vehicle repairs, job layoffs or house maintenance can quickly derail a budget. Make sure that you have a fund set up specifically to handle these unforeseen expenses, so you don't have to alter your monthly budget to accommodate. A good rule of thumb for an emergency fund is to start with a month's income plus $1,000. Once this goal is achieved, you should keep saving until you have about six months of expenses. Add an amount each month in your budget to add to your emergency fund and if you need to use it for an emergency during the year, you will need to regrow it.

4. Prioritize Retirement Savings

Saving for retirement is something often put on the back burner until it is too late. The sooner you begin saving for retirement, the more time it will have to grow and the better return you will have on your investment. Work with your financial advisor to determine what retirement savings vehicles may be best for you.

5. Create a Long-Term Financial Plan

Goals can be more difficult to set if you are having difficulty envisioning the rewards that will come with financial stability. Consider any long-term financial goals you may have such as buying a new house or retirement. Draft out a plan that includes savings, investing and other ways to build the wealth you need to achieve these goals. You can start with smaller goals, so they seem less daunting. Having a plan in place will help you stay on track and guide your financial decisions.

Make this year the year you take control of your finances and get on the right track to achieving your future goals. Consider the five financial goals listed above to help you get started.

Your 2021 Guide to Year-End Charitable Giving

Mon, 20 Dec 2021 21:12:45 GMT

Whatever your reason for giving this year, it’s important to know how your charitable contributions can impact your financial plan. In fact, being strategic and intentional in your 2021 contributions can create tax benefits for both you and your chosen charity.

Here’s how.

Research Charitable Organizations

Maximize the impact your monetary donation can have by selecting reputable and transparent organizations. A qualified charity will have 501(c)(3) status, indicating it’s federally recognized as a non-profit organization.

Third-party websites like Charity Navigator , Charity Watch and Give Well offer unbiased, independent ratings and evaluations of charitable organizations. These sites can offer important insights into how money donated is distributed. If you’re considering making a sizeable donation, it may be helpful to speak directly with the chosen charity to discuss how the gift will be utilized.

If you haven’t already, check with your employer about what opportunities they provide in regards to charitable giving. For example, some employers will match employee donations to certain organizations.

Consider Itemizing Your Deductions

To deduct charitable donations, you must itemize them on an IRS Schedule A form. To do this, you’ll need to keep track throughout the year of each donation made to a charitable organization. In most cases, the charity can provide you with a form to document your contribution. If the charity does not have such a form handy (and some do not), you may be able to use other forms of proof including:

Receipts
Credit or debit card statements
Bank statements
Canceled checks

When reporting deductions, the IRS may want to know a few important details such as the name of the charity, the gifted amount and the date of your gift.

Remember, itemized deductions may only have tax benefits when they exceed the standard income tax deduction, so be sure to check on the standard deduction amount for your tax filing status.

Make Non-Cash Donations

Many charities welcome non-cash donations. In fact, donating an appreciated asset can be a tax-savvy move.

For example, you may wish to explore a gift of highly appreciated securities. Selling securities can lead to a taxable event. As an alternative, you or a financial professional can write a letter of instruction to a bank or brokerage, which can facilitate authorizing a transfer of shares to a charity.

This transfer can accomplish three things:

You can manage paying the tax you would normally pay upon selling the shares.
You may be able to take a current-year tax deduction for the full fair market value of the shares.
The charity gets the full value of the shares, not their after-tax net value.

Utilize Your Life Insurance Policy

Do you have a life insurance policy? If you make an irrevocable gift of that policy to a qualified charity, you can get a current-year income tax deduction. If you keep paying the policy premiums, each payment may become a deductible charitable donation - although deduction limits may apply.

If you pay premiums for at least three years after the gift, that could reduce the size of your taxable estate. The death benefit may be transferred out of your taxable estate, in any case.

You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments. Several factors will affect the cost and availability of life insurance, including age, health and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications.

Whatever your situation, getting advice from a tax or financial professional can help you give wisely as the year comes to a close. If charitable giving is an important part of your financial plan, it’s important to make sure you’re getting the most value out of each donation.

Are You Concerned About Your Cybersecurity?

Tue, 02 Nov 2021 21:35:07 GMT

Cybersecurity incidents have continued to become more prevalent as society’s reliance on technology continues to grow. Ransomware attacks, data breaches, identity theft and other forms of cybercrime are no longer uncommon to hear of online, on the nightly news or in the local paper. With the rise in cybercrimes has come a new form of protection against cyber threats – cyberliability insurance coverage. With so any other forms of insurance out there, it only makes sense that this relatively new phenomenon would become commonplace. However, cyberliability liability insurance is not a one-size-fits-all coverage, and individuals and entities alike should work with an insurance broker experienced in this area to find the coverage that makes the most sense for their needs.

What Questions Should You Be Asking?

There are a few major points to focus on and questions to ask when inquiring about a cybersecurity liability policy that meets all of one’s needs. A best practice is to confirm first-party coverage for a number of important items in relation to security incidents and data breaches such as forensic analysis, legal costs, costs associated with data breach notification to individuals and required entities, fines or penalties associated with an enforcement action, ransomware, malware, wire fraud, phishing incidents, social engineering schemes, “man-in-the-middle” schemes, and business interruption coverage. It is also wise to ensure third-party coverage in a few areas in relation to security incidents and data breaches such as for class action litigation, enforcement actions and individual litigation.

What’s Excluded in the Policy?

In addition to the above, an in-depth discussion with your broker about the specifics of your cybersecurity liability policy is of utmost importance. A common issue that arises with many types of insurance is that the insured is not aware of all exclusions, and this is no different with cybersecurity insurance. It is important to have a strong understanding of your policy’s exclusions with a focus on your particular industry in order to tailor coverage to incidents you’re most likely to face and to laws and regulations you must be in compliance with.

The area of cybersecurity liability insurance is constantly changing and evolving, and must do so to be able to address new cybersecurity threats and new laws and regulations those threats bring. As such, it is not enough to simply examine your policy and talk with your broker about coverages on the front end. To keep best protected and ahead of the changing coverages, exclusions and endorsements, speak with your insurance broker on a regular basis and don’t be afraid to ask questions. Additionally, if you have questions about any of the laws and regulations governing cyberliability and data security, or if you have questions about your cyberliability policy and contract, an attorney experienced in the data security and liability field is another important resource.

Source: Zywave

12 Common Life Insurance Mistakes

Tue, 02 Nov 2021 21:19:57 GMT

Along with National Coffee Day, American Business Women’s Day, and Cheese Pizza Day, there were also some other important highlights in September that were hard to ignore. No, I’m not talking about it being Fall Hat Month or Talk Like a Pirate Day, but instead about all the #LifeInsuranceAwarenessMonth hashtags you might have noticed on your Instagram feed. You probably didn’t purchase any life insurance because of that hashtag but hopefully it started a conversation with your spouse or even a quick Google search about life insurance policies. Whether you are ready to purchase life insurance or you just need help understanding all the options, Vista Financial Group is here to help you avoid mistakes others have made.

Avoid These Mistakes When It Comes To Life Insurance

Procrastination: Life insurance is cheapest when you’re young and don’t have heath problems. Over half of Americans continue to procrastinate when it comes to purchasing the coverage they need. Don’t wait until it’s too late to get the coverage you need at an affordable price.

Not Shopping Around: Buying a policy from your cousin seems like the right choice, but make sure you’ve done your research before buying. Similar policies can have different price tags. Shopping around to different companies to compare will leave you feeling good about your choice. You also want to check the financial strength ratings of the companies you get quotes from to make sure they will be able to pay out in full when the time comes.

Not Getting Help: Researching life insurance policies can be exhausting. Don’t do it on your own. Find an agent that can help educate you on different policies and help you find the one that is right for your situation.

Miscalculating the Cost: Most people without life insurance assume that they can’t afford it. Instead of just assuming it’s too expensive, have an agent give you some quotes so you can get a ballpark figure. It’s probably cheaper than your monthly latte bill.

Thinking Your Emergency Fund is Enough: Lots of people have emergency funds for the unfortunate times when you lose your job, or you need to purchase a large ticket item, but it’s not enough to support your family in case of a tragedy. You need coverage that won’t be gone in a few months.

Giving Up Due to Too Many Options: Life insurance policies offer A LOT of options. Trying to decide which one is best for you and your situation can be overwhelming. Let your agent narrow down the policies that are right for you so you can choose from fewer options.

Lying on Your Application: Leaving out important health information is a big mistake. Whether you’re a smoker or have a family history of heart problems, insurance companies have access to medical records, physical exam data, and family history checklists from your doctor. If they find out you lied, they may decline the application.

Not Buying Enough Insurance: Your policy needs to cover income, living expenses, funeral costs, education, and other future expenses. Not buying enough coverage is one of the most common mistakes people make when purchasing a policy.

Relying on Your Employer’s Coverage: Many employers provide coverage, but it’s not enough for a family. You will need more coverage for dependents. Think about how much you would need for your loved ones to continue living the lifestyle they currently live.

Choosing the Wrong Type of Policy: Depending on which phase of your life you are currently in will help you decide the policy that is right for your situation. Are you the breadwinner and need coverage for mortgage payments and other bills? Do you have small children at home that would need a caregiver? Or are you looking to leave an inheritance to your children? Let a financial advisor help guide you.

Neglecting to Name Beneficiaries: You don’t want your loved ones having to deal with probate. Make sure to name your beneficiaries so your money goes to the people you want to have it.

Ignoring Your Policies: Don’t let your policy collect dust! Every policy needs to be reviewed every 3-5 years. You many decide you want to change the type of policy or update beneficiaries.

Feel Confident With Your Financial Decisions

Vista Financial Group is the financial services arm of Vista Insurance Group. We focus

on helping individuals and businesses plan for their financial futures. At VFG, we

understand that making financial decisions can sometimes be challenging. We have the

knowledge and experience to help empower our clients to improve their overall financial

situation thus attaining emotional confidence. By choosing to work with Vista Financial, you will be able to know with 100% certainty that both you and your family are fully protected in the event of an unforeseen death. Our tools and overall approach to planning can help you avoid mistakes and make the best decisions regarding life insurance.

How Much Is Enough for Retirement?

Tue, 02 Nov 2021 20:52:34 GMT

You hear it all the time. On commercials. On billboards. On podcasts. Your family, friends, and financial experts are all asking the same question. Are you saving for retirement? Your answer is probably yes, but is what you're putting away for the future going to be enough?

What About the Retirement Calculator?

There is no magical calculator that can tell us exactly what we will need when we enter that glorious phase in life known as retirement. Everyone will retire at different ages, with different basic and discretionary monthly expenses. Statistics tell us that even some of us will approach retirement with dependents in the form of aging parents and children that still need our financial support.

There is no one size fits all when it comes planning for this huge life event.

How will your spending change after retirement?

This could relate to housing costs or healthcare increases. You may not eat out as much or you may travel more. What will you do differently after retirement that you don't do now? What expenses (clothes, transportation, entertainment) will increase and what will decrease? Figuring out where your dollars will go during retirement will help you decide what income you will need annually to satisfy both your needs and wants.

It’s All About Income

Most retirees depend on a number of different income sources in retirement. Part time wages, pension plans and Social Security are a few examples. Stocks, IRAs, qualified plans from previous employers and other investments can help supplement your income as well.

But how will the financial products you’ve accumulated along the years translate into an income stream that you and your spouse can’t outlive? How will your income be impacted by an unexpected downturn in the market, a long-term care event, a change in tax laws or inflation? How do we still leave a legacy to heirs while also maximizing our assets to produce income while living? These are the questions we help our clients answer.

How Can Vista Financial Group Help?

Vista Financial Group is the financial services arm of Vista Insurance Group. We focus on helping individuals and businesses plan for their financial futures. At VFG we understand that making financial decisions can sometimes be challenging. We have the knowledge and experience to help empower our clients to improve their overall financial situation thus attaining emotional confidence. Our tools and overall approach to planning can help you make the best decisions regarding retirement.

So many people get fixated on finding the perfect number for what they should be saving. Trust us to relieve that stress and help you figure out what is right for your future. Retirement is something we want you to look forward to enjoying.