Category Archives: Business Reports

Brian M. Johnson, MBA, CLTC

It’s no secret that Long-Term Care services such as In-Home Care, Assisted Living, Memory Care and Skilled Nursing can be financially devastating. Depending on the need, these costs can easily surpass $10,000-$15,000 per month.  The high cost means that not everyone will be able to get professional care. In those cases, who will provide care and what does that mean for those care providers? Today’s care environment is both a challenge for giving and receiving care. Whether by necessity or preference – care is often provided by loved ones (informal, unlicensed) at home.  

According to “Long-Term Care in America: Americans want to age at home” and a 2020 study by AARP, 88 percent of Americans would prefer to receive ongoing living assistance as they stay at home, 70 percent of people who provide care do so out of necessity, and 21 percent of Americans are currently caregivers.  As the Baby Boom generation ages, these numbers are only going to increase.  

According to “Caregiving in the U.S., AARP, 2020,” 36 percent of caregivers report high emotional stress and more than half of caregivers report financial strain from caregiving.  This includes an end or pause to saving for their own future, taking on more debt, using personal savings and paying bills late or sometimes not paying them at all.  In a 2018 report by the Harvard Business School, it’s estimated that if a caregiver is of working age, there is a 32 percent chance he or she will have to leave the workforce all together due to their caregiving responsibilities.  If a caregiver remains employed, his or her work often suffers as they are typically tired, stressed and not able to fully concentrate on their job.

So what are our solutions?  There’s no “silver bullet” here, but there are tools that can help Americans finance their potential need for care so they’re not a burden to those they love.  

Medicare and Medicaid

Pros: It’s a government funded program.   

Cons: The system is difficult to navigate and getting more restrictive.  Medicare generally only covers acute care on a short-term basis (less than 100-days). Medicaid typically pays for care in a nursing home and requires an individual to financially qualify.  

BY DAVE KOPYC

Eventually in life we must face the reality of building out our own personal retirement plan for the golden years. We live in a society today where most of us will not have a pension benefit from our employer and we will have to take our life’s savings to create a paycheck once we lose the employer’s weekly or biweekly payment we receive in our working years.

For some of you that are reading this article it will send a chill up your spine with anxiety to think that this daunting task can be handled with great concern and respect for you, the individual that is receiving the payment and it is specific to you and your individual needs. The cookie cutter approach where you are grouped into an investment or specific type of investment program can cause you to lose some of the personal touch that you may have had during your accumulation years.

Retirement income distribution is probably the most important decision you will make in your pre- and post-retirement years. There have been many different strategies and concepts to accomplish retirement income in my 42 years of being in the financial services industry, and every strategy has pros and cons and should be specific to you and your family – no matter what the strategy may be. It is critical that 100 percent of your hard-earned assets do not go into any investment program. Diversification is your friend and low cost and flexibility follow closely behind.

For many years we have had very little opportunity in yields that are sufficient to pay your bills and protect your principal. That is not the case now and we have investments that exceed 5 percent as I write this article, and having money market accounts that are approximately the same rate with liquidity and flexibility to get to the assets. Risk assets was a choice that was selected by a lot of individuals because of the financial markets and the circumstances we were in with the Federal Reserve and the prolonged low interest rate environment. Most individuals that wanted safety and guarantees had very few choices, so they gravitated to risk assets. That is not the situation today and you need to be aware of the opportunities that exist.

By Martin Patrick, SPHR, SHRM-SCP

As we approach the start of the new year, key updates to the way you manage your business payroll are on the horizon. Here’s a closer look at four of these changes and how they will affect both employers and employees.

1. Salary Threshold for Certain Wage Protections:

On March 13, 2024, the salary threshold for certain wage protections will increase from $900 to $1,300 per week. 

Right now, employers are exempt from some requirements when employing workers in executive, administrative, or professional capacities and whose earnings exceed $900 per week.

These include paying clerical or other workers “not less frequently than semi-monthly;” obtaining the advance, written consent of employees before paying wages via direct deposit; and being guilty of a misdemeanor for failing to provide benefits or wage supplements within 30 days after they are due.

The exemption from these requirements will now apply to employees with earnings that exceed $1,3000 per week.

Employers should review their current payroll practices and make any adjustments to help ensure compliance. For example, an employer could increase employee compensation to meet the new threshold or ensure that employees below the threshold are no longer exempt from these employer obligations.

By Paul Post 

The U.S. should have no trouble weathering a mild recession if one occurs, but inflation, a national labor shortage, and skyrocketing debt coupled with high interest rates are major causes for concern.

 That’s what a leading financial analyst told more than 200 people gathered for a recent Adirondack Regional Chamber of Commerce event at the Queensbury Hotel.

 Ken Entenmann is senior vice president, chief investment officer and chief economist for Norwich, N.Y.-based NBT Wealth Management. He holds a bachelor’s degree in applied economics and business management from Cornell University, an M.B.A. from the University of Rochester’s William E. Simon Graduate School of Business Administration, and oversees more than $9 billion in assets under management and administration in trust, custody, retirement, institutional and individual accounts.

 His presentation, supported by detailed graphics, was entitled, “Should I Stay or Should I Go?: Waiting for the Imminent Recession That Has Yet to Happen.”

 “Whether we have a recession or not, I don’t think is the relevant question,” Entenmann said. “Things are slowing, but because consumer and corporate balance sheets are relatively strong, I think we’ll weather a recession. I’m concerned because I think it’s fair to say Washington right now is dysfunctional, and the likelihood that they’re going to tackle some of the bigger problems like Medicaid and Social Security is small. Therefore, I think those problems are going to linger.”

 Since 2007, national debt has more than tripled from $9 trillion to $33 trillion.

 “Then the chickens came home to roost,” Entenman said.

 While debt was growing exponentially interest rates remained low, but have since gone up 550 basis points, meaning this year’s interest payments on debt will total about $800 billion and likely reach nearly $1 trillion in the next few years, or 8 percent of the federal budget.

 “Why is that important? Because it sucks the life out of an economy when all that money is going to pay off debt,” he said.

Brian M. Johnson, MBA, CLTC

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

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

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

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

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

• “It won’t happen to me.”

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

• “Medicare or Medicaid will cover me.”

by Kenneth J. Entenmann, CFA

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

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

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

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

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

By Mark Shaw

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

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

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

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

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

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

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

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