Category Archives: Business Reports

By Stephen Kyne, CFP

For anyone with an economics background, the last year has been an interesting opportunity to witness the theories and accepted tenets put to the test.

We’ve seen an unprecedented shutdown of much of the private sector, a displacement of workers in nearly every sector, a breakdown of the supply chains providing the basic necessities of everyday life, and a massive taking from future taxpayers to help keep businesses and households afloat while government agencies debate a myriad of policy solutions of varying efficacy.

At its core, what this year has shown us is that economies are far too large an infinitely interconnected to be manipulated with precision: every policy has unintended consequences. Some of these turn out to be beneficial, and some to our detriment.

Because the economy was in such a strong position prior to the pandemic, we believe the timeline and breadth of the recovery will be relatively short and wide. Had we been in an economic downturn at the end of 2019, we would be singing a very different tune.

The U.S. government pumped $5 trillion into the economy last year in an effort to help households and businesses bridge the pandemic. While the intention is laudable, it is not without consequences. This money will need to be paid back at some point, with interest, by our children and grandchildren. Expect future tax rates to consequently be higher than today.

Having increased the money supply by 30 percent in just one year, the economy is now awash in cash, and is ripe to experience higher rates of inflation than many of us have seen in a very long time.

For over a decade, inflation has been extremely tame, but that is unlikely to last. Cases in point: the price of gas is up over 20 percent from pre-pandemic levels, and used cars are up 30 percent while clothing is up 7 percent. Higher inflation hurts the most economically vulnerable among us, including low-income families and the elderly, and may further exacerbate social inequities we are purportedly committed to quelling.

By Rose Miller

Gov. Andrew Cuomo signed the New York Health and Essential Rights Act (NY HERO Act) into law on May 5. This new act will impose substantial responsibilities on all private employers to provide and maintain safe workplaces for the ongoing COVID-19 pandemic, and for all airborne infectious disease outbreaks in the future.

Don’t shoot the messenger. Seems like New York has rolled out a new regulation to implement every month. A whole host of changes will need to be put in place by Sept. 2. As a small business owner, I feel your pain.

The first thing employers will need to do is to develop an industry specific prevention work plan. Work plans include how the employer handles workplace safety protocols such as health screenings, face coverings, personal protective equipment, hygiene stations, regular cleaning/disinfecting, social distancing, and other controls related to infectious disease safety concerns.  There are some options for employers under a collective bargaining agreement.

Some employers have had some type of prevention work plan already in place.  My firm was one of the only vendors, who included such a work plan as a supplement to the employee handbook.  Existing plans will need to be updated to comply with the act and it must be included in all employee handbooks and posted at all work sites.

Many employers are waiting for the Department of Labor model which is expected around July 4.  However, there is great deal of work to be done in mapping out the who, what, where and how the plan works specific to your organizations. A customized plan must meet or exceed the minimum standards in the act and plans must include participation of employees in its development.

By Brian M. Johnson

There are three primary uses of life insurance. The first is to provide a replacement source of income should a primary provider of income die.

The second is to provide liquidity for the payment of estate taxes or provide a legacy for heirs or a philanthropic cause. 

Third is for the financing of long-term health care via a rider added to the policy.  Less common uses of life insurance include such functions as funding buy/sell agreements, or other finite period requirements.

Income replacement

The key characteristic of the use of life insurance for the replacement of income is that it generally covers a finite period and does not require permanent insurance. During the primary earning years of a person, two things should be occurring.

One is that assets are being accumulated which could provide income in the future. The other is that the life expectancy of those who are dependent on that income is getting shorter and shorter.

In most cases, there is a cross-over point where enough assets have been accumulated to satisfy the income needs for the remaining years of those dependent on the income. At that point, the person or couple or family is self-insured and no longer has a need for income replacement life insurance.

By Robert Snell

If you don’t have a spouse or children, you might think you don’t need to do much estate planning. But if you have any assets, any familial connections, any interest in supporting charitable groups—not to mention a desire to control your own future—you do need to establish an estate plan.

In evaluating your needs for this type of planning, let’s start with what might happen if you die intestate—that is, without a last will and testament. In this scenario, your assets will likely have to go through the probate process, which means they’ll be distributed by the court according to your state’s intestate succession laws, essentially without regard to your wishes.

Even if you don’t have children yourself, you may have nephews or nieces, or even children of cousins or friends, to whom you would like to leave some of your assets, which can include not just money but also cars, collectibles, family memorabilia and so on. But if everything you own goes through probate, there’s no guarantee that these individuals will end up with what you wanted them to have.

If you want to leave something to family members or close friends, you will need to indicate this in your last will and testament or other estate planning documents.

By Wendy Waldron

As we build the new normal and reconstruct our economy, let’s take a moment to get back to the basics. Whether you are an owner, foreman, manager or director, there are three things that every leader needs to be doing to make the most of every day. Bring the ABCs to the jobsite.

A – Avoid Busy-ness.

“Quick, look busy, here comes the boss.” It’s so classic it’s almost a cartoon, and yet most of us fall into this trap of “busy-ness” on a regular basis. Is it enough to “keep the guys working?” Well, are they doing profitable work? What do you really know about an office worker’s “production” by walking by their desk? When so many switched to work from home, did you lose a sense of knowing what they were doing?

Do you know what drives the profit in your business? What key activities should be done each week and who is responsible for accomplishing those actions? What are the leading indicators of your future outcomes? What if you paid as much attention to those as you did to the resulting bottom line? Identify the most powerful actions and keep it simple. You need information now, not at the end of the quarter. Maintain a weekly scorecard listing the priority activities, the goal, and who is responsible for making them happen.

B – Boss Mode.

You are not leading a social group or choosing a restaurant for dinner. It’s important to make your expectations known. Imagine that you are coaching a basketball team. It’s your job to clarify the rules of the game. Do you really want all of the players running together in a pack playing offense and defense simultaneously? How can your team deliver if they don’t know exactly what’s expected? Don’t be afraid to use your whistle (or voice) when someone is out of line.

By Brian M. Johnson

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 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.”

By Skip Carlson

In 1918, the world was fighting the Great Influenza, a pandemic that killed an estimated 50 to 100 million people. As I prepared to become the chair of the Saratoga County Chamber of Commerce in 2021, I wish that I could have spoken to those business leaders who formed the chamber back then. I would have appreciated any advice they could have offered about dealing with a pandemic.

But like most of us, there was no one with firsthand knowledge of that pandemic to help guide us through this one. We had to figure it out ourselves; for our families, our businesses, and the community we all love. We were all in some way flying a plane while building it.

Under the leadership of Kevin Hedley, our 2020 chair, I think this past year was perhaps our Chamber’s finest moment.

The Chamber provided relentless communication about the resources and data that really mattered. The Chamber promoted the Stronger Together campaign and lived this mantra as it forged a collaboration with Discover Saratoga, the City Center, the Saratoga County Prosperity Partnership and the Saratoga Springs DBA.

The Chamber was a beacon of hope working to Save Our Locals and to answer thousands of questions that arose as our economy was shut down and later reopened.

BY ROB SNELL

Now that we’re a few weeks removed from 2020, it’s a good time to reflect on such a momentous year. We can think about developments in the social and political spheres, but we also learned—or perhaps re-learned—some valuable lessons about investing.

Here are four of them:

• A long-term perspective is essential.

Volatility in the financial markets is nothing new, but, even so, 2020 was one for the books. Of course, the COVID-19 outbreak was the driving force behind most of the wild price swings. Soon after the pandemic’s effects were first felt, the S&P 500, a common index of U.S. large-cap stocks, fell 34 percent but gained 67 percent by the end of the year.

Consequently, investors who stuck with their investment portfolios and kept their eyes on their long-term goals, rather than on shocking headlines, ended up doing well. And while 2020 was obviously an unusual year, the long-term approach will always be valuable to investors.

• Investment opportunities are always available.

The pandemic drove down the prices of many stocks, but it didn’t necessarily harm the long-term fundamentals of these companies. In other words, they may still have had strong management, still produced desirable products and services, and still had good prospects for growth. In short, they may still have been good investment opportunities and when their prices were depressed, they may also have been “bargains” for smart investors. And this is the case with virtually any market downturn – some high-quality stocks will be available at favorable prices.