Do you “Really” have the RISK APPETITE/TOLERANCE to be an STR Owner?

Generally, this is the 1st question I ask prospective STR buyers and even some owners who ask about our STR property management platform – seems no one else really does; and that’s a shame. You see, not everyone has the proper “risk appetite-tolerance” to be an STR owner.

Prior to joining the management ranks in the STR space; I knew little to nothing about what happens behind the curtain, Sure I had rented and stayed in many vacation rental properties over my personal and professional travels; but never knew how it “all worked”. After over 9 1/2 years – now I do and frankly, what I do for my company (Senior Director of Business Development and Owner Relations); is not that much different than what I did in my past life. See, I spent over 30 years in the wholesale and retail world of financial services – more specifically – insurance and investment management both owning and running – at the C-Level, several multibillion-dollar insurance, investment, and securities firms.

So, what do these 2 industry spaces have in common?

A. They are both “hyper-competitive” and,

B. Most successful property owners today are HNW (high net worth) investors – investors savvy in understanding the intricacies of owning such an asset and,

C. An STR is just another “asset class”. Sure, it’s an uncorrelated asset (means it returns aren’t necessarily predicated on traditional market influences and pressures) but are influenced all the same and,

D. STR properties ARE investments and have risks. Nothing is guaranteed – not the underlying value nor its rate of return and,

E. Finally, buyers and owners of each need to have a suitable level or risk appetite/tolerance for a satisfying and profitable experience!

Risk TOLERANCE vs. Risk APPETITE

Today’s STR buyer/owner should consider BOTH related to property purchases as well as subsequent ownership, and yes, they are very different…

Risk APPETITE simply put is the “amount and type of risk that a person is willing to pursue or retain.” Risk appetite allows a person to determine how much they are willing to take risks (including financial and operational impacts) in order to innovate in pursuit of objectives.

Risk TOLERANCE is a person’s readiness to bear the risk after risk assessment in order to achieve their objectives.

So – how well do you really know your owners and property owner prospect’s tolerance to own an STR?

Me? I took what I knew worked in retail financial planning and put it into practice for my property owner prospects and existing owners…

What do I do that is similar? I ask deep, probing and fact finding questions. Here are some examples of what I ask:

1. Is this your first STR? If not, where else do you own?
2. What caused you to buy an STR?
3. What other investments do you own? Do you have a personal advisor?
4. Is the property mortgaged? What is your interest rate?
5. What are you expecting to make from your vacation property?
6. Is paying the mortgage dependent on the property’s net revenue?
7. Have you gotten a financial assessment for the property? From who? What period did it cover?
8. How active do you think you need to be as an owner of an STR?
9. How would affect you if the underlying value of the property decreased?

These are just some of what I ask. Perhaps you ask similar questions to determine both their risk APPETITE and Risk TOLERANCE…if not, why not? What do you have to lose by asking? Don’t you want an owner who has their “eyes wide open”, one who won’t panic at the first sign of financial adversity? Sure you do!

The moral of the story is this…

No matter what prospective owners may read in financial magazines or see posted on social media or heard from some Facebook posting, “get rich quick”, Airbnb “guru”, or heard from an over-exuberant real estate agent, ALL STRs have risks. Operational risks. Investment return risk. Value risk. And confidence risk.

Why not discuss it upfront. You’ll be glad you did!

The Death of John McCain Means Something a Bit Different to Me…

Like most Americans; I was saddened to hear that Sen. John McCain was diagnosed with brain cancer; and like the true fighter he was; he fought this disease with gusto and strength. Unfortunately, he lost his battle and passed away this past week. The sadness is overwhelming… I lost a “shipmate”!

This post is not like all the rest out there extolling the virtues of his life as a “maverick” and what he was like as a Senator. Nor will it dwell on his time or his experience as a Vietnam War POW…we all know the story of his bravery and heroism.

No; this is more of my good bye to a fellow Navy “Clansman” and “Hellrazor”!

See; I have something unique in common with Senator McCain..we both served in the same U.S Navy Squadrons …Attack Squadron 174 (VA-174) and Attack Squadron 46 (VA-46). No; we didn’t serve at the same time (I’m not that old – grin!)…but we do share the same NAVAIR pedigree!

VA-174 was the A7 Corsair training squadron for all east coast A7s. Most everyone who served in an east coast A7 squadron wet through the “RAG”. John McCain’s first naval command was as the CO of VA-174…I also trained and served there. It was a great time for me and I enjoyed my time there immensely. Seeing the Squadron history in the ‘ready room” and seeing John McCain]’s picture on the wall of commanders was inspiring.

When I finished my fleet ready training there; I got orders to VA-47…the Clansmen! They got their name from the plank owner skipper, Cdr. Clifford A. McDougal; and he used the McDougal Scottish “Tartan” plain on the tail – hence the name Clansmen after his hereditary Scottish Clan! Our squadron’s motto was “Vincere Vel Mori”…“To conquer or to Die”! I ‘d like to think Senator McCain lived this motto up to the end…he fought until he died!

John McCain was also Clansman! He served as a pilot in VA-46 during the Vietnam War participating in many strikes on NVA targets. He also unfortunately was involved in the infamous USS Forrestal fire! An F4 fighter’s “zuni” rocket launched accidentally and struck Senator’s McCain’s A-4 Skyhawk. He escaped with minor injuries. It’s quite a story and event in US Naval Aviation history – you should read about it!

I too proudly served in VA-46, and was also a “Clansman”! It was a wonderful time in my life. I got to do a lot of very “cool” things and went to a lot of very “cool” places…but my greatest memory is knowing that I had the great privilege to serve my country!

So from one Clansman to another…”Here’s lookin’ up your kilt mate”! Rest in peace, Go with God and thank you for all you did for our country and way of life!

A “Primer” on Tariffs and Free Trade

What are Tariffs and What does “FREE TRADE” Really Mean?

I’ve seen and heard so much in my life that frankly it takes a lot to surprise me these days. Recently, it was one of those times.

With all the recent talk about tariffs and trade, I decided to conduct a very informal poll of young people and asked them IF they knew how tariffs really worked and what free trade was all about.

Out of 50 people I asked, 35 had no idea, 5 thought they knew, but were wrong in their explanation…only 10 had a pretty good grasp of the concept!

Talk about low-information voters…

I sure wish they teach things like this in HIGH SCHOOL!

So I decided to write up a short “primer” on this topic that maybe will help you and information you can share with your friends, family and young people.

Tariff defined:

A tariff is a tax on imports or exports. Tariffs are used by governments to generate revenue or to protect domestic industries from unfair competition. Many times tariffs are also in place to help prevent foreign companies from FLOODING a foreign market with low cost (and sometimes cheap) goods!

There are generally two types of tariffs:

“Ad valorem” tariff

Ad valorem tariffs are calculated as a fixed percentage of the value of the imported good. When the international price of a good rises or falls, so does the tariff.

For example, ACME Cheese Company in Scotland and exports the cheese to the US, which costs $100 per pound. In order to protect American interests, The US government imposes a 20% Ad valorem tariff would require ACME Cheese Company to pay the U.S. government $20 to export the cheese to the American market.

A “Specific” tariff

A Specific tariff is a fixed amount of money that does not vary with the price of the good. In some cases, both the ad valorem and specific tariffs are levied on the same product.

In the above example, a specific tax would involve charging $30 dollars per pound of cheese whether cheese sold for $100 or $200 per pound. That $ 30.00 is paid to and kept by the federal government. Hopefully they’ll use that money to help domestic cheese production or to encourage “buy American” campaigns!

Why do tariffs matter?

Tariffs make it more expensive for users of foreign goods, potentially causing a decline in imports.

Here is another example…

Say John Deere exports tractors to China. Up to now, say China DID NOT place a tariff on US manufactured tractors coming into China. John Deere sells a consumer a tractor for   $ 10,000.00 USD. GREAT! The Chinese consumer gets a great product at a great price and John Deere can keep American employees – employed or even increase production! Again… GREAT!

But what if China decided to impose a 25% tariff on US manufactured tractors. Now that same tractor is going to cost that Chinese consumer $ 12,500.00. Maybe that added cost (tax) is TOO MUCH for that consumer and they decided to no longer buy John Deere tractors. Now all of a sudden John Deere is losing sales and revenue and may have to lay off workers – all because of a foreign IMPORT ad valorem tariff.

Here is another example…Right now “cheap” Chinese steel and aluminum are being exported into the US. Because of their labor cost and tax structure, they can set ARTIFICIALLY low prices on these metals. Next; say Trump Hotels wants to build a new hotel in Denver. It will require a lot of steel. They look at the cost of American steel and then look at the cost of Chinese steel and the Chinese steel is LESS – they buy Chinese steel and in the process, companies like USX (US Steel, actually a French owned company) loses revenue and has to lay off workers. I mean, after all – the project has to come in at or under budget – can’t do it if you buy expensive American steel!

Same thing with aluminum…if Coca Cola needs aluminum for cans and can get it cheaper so they can keep their cost to consumers low, they’ll buy the cheapest aluminum they can get. If they had to buy more expensive US aluminum, they would have to raise prices and might, in the process, lose customers, and the domino effect (loss of revenue, layoffs, key soft goods supplier lose, utility companies lose – everyone loses…) starts all over…

That leads us to today and Donald Trump wanting to set higher tariffs on foreign goods; like steel, aluminum, etc.

Let’s look at the steel example. Let’s say the Trump administration levies a 25% tariff on Chinese steel. Now the US buyers have to pay 25% MORE for the product and it might cause them the re-think that new building thereby causing a domino effect on the entire building project (labor, utilities, soft goods, etc…). So the developer MIGHT look at getting steel from say, Brazil if the US tariff is lower or the overall cost is still less than American steel. OR, maybe the developer wises up, negotiates well and buys the American steel!

Canada’s tariff on American DAIRY products. Even with NAFTA; Canada imposes a 270% tariff on American dairy products! So the poor milk farmer in Minnesota who wants to sell milk to a Canadian sort across the border automatically increases the price 270%! Ok, there are some extenuating circumstances; but the fact remains – some countries impose HUGE tariffs on American goods, yet want OUR borders open to less expensive goods for US to buy keeping their manufacturing and employment base intact – while harming ours.

Ever wonder why VW, Honda, Toyota, Nissan, etc. have factories in the US (and why we build Fords, Chevy’s and Harleys in foreign countries?)

Tariffs! Trade expert’s sometimes find “loopholes” in trade agreements. One of those loopholes surrounds a corporation avoiding tariffs buy manufacturing in the country they want to sell in.

Here is an example: Japan can build a Toyota Sienna van in Tokyo and ship it here for less than you can build one here; BUT the US imposes a TARIFF on Japanese manufactured vehicles, thereby making it MORE expensive to build and ship from there than to just build a plant in Alabama and build the same vehicle here WITHOUT an import tariff. Same with us and Fords. Why do we have Ford plants in Mexico – because you can export from Mexico to South America (and other places) and not have tariffs, where if built and shipped from the US; there are sometimes HUGE tariffs.

It’s just smart business (for revenue, profits and shareholders); but can negatively impact American labor for sure!

Most countries have trade deals and associated tariffs – the biggest issue is when the country we’re exporting too has HUGE tariffs on American goods, yet; because of our addiction to “super low prices” our past administrations have elected to keep import tariffs LOW so that the goods American consumers buy  – stay low. THAT’S ONE OF THE MAIN REASONS WHY THERE IS THIS HUGE TRADE DEFICIT WITH CHINA, INDIA, JAPAN, etc. They tariff the hell out of American goods, but their goods come into the US cheaply.

What is FREE TRADE?

Free trade is a policy formed between two or more nations (like NAFTA and the EU) that permits the almost unlimited import or export of goods or services between partner nations. However, there could be some exceptions built into the deal as not all trade is free trade.

Generally speaking though; free trade eliminates tariffs and makes corporations more competitive in foreign markets. Free trade also helps countries generate foreign currency that they can use to purchase the things that they need. Japan, for instance, exports cars and computers to China and the United States, generating foreign currency. Japan takes the revenue it earned from exporting and uses it to import needed products, such as food or mineral fuels.

Free trade opens foreign markets and lowers barriers for corporations that otherwise might not be able to compete against local competitors. As previously mentioned, without free trade agreements, foreign corporations must pay tariffs that increase their cost and decrease competitiveness.

There are some that say free trade can be detrimental to society and can include:

• Economic Dependence – product and low price “addiction”. Why build it if you can get somewhere else cheaper!
• Unbalanced Development – if you make all your money with one product; why diversify?
• Dumping – If you can make and export a product more cheaply than domestic sources – dumping is easy!
• Harmful Products – Free trade generally does not place restriction on goods sold – as long as they are legal!
• International Monopolies – pretty self-explanatory!
• Reduction in Welfare of Certain Groups – and wage depression– lack of completion leads to lack of opportunity.
• Harmful to Less Developed Countries – IF you don’t have the plants, or trained labor to make an item – you can’t compete!

Will there always be some instances of trade deficits and surpluses – sure, should they be SO LOPSIDED? NO!

My personal opinion and stance on tariffs is pretty simple. I believe in a doctrine of fairness. If a foreign country imposes, say a 25% tariff on American goods – we reciprocate with the same. Whatever THEY IMPOSE, we MIRROR what they do. To me; that’s the fairest trade deal of all!

 

How DACA is like a visit to Walt Disney World…really; it is!

Imagine if you will; it’s Spring Break and you want to take your family to WDW. You’ve scrimped and saved, cashed in some PTO at work, re-arranged schedules, made reservations, checked the travel sites for tips, stopped your mail and maybe even have to board your pets. It’s expensive and time consuming! But worth it for your family! YOU’VE WORKED DAMN HARD!

You finally arrive in Orlando and it’s bumper to bumper traffic getting to WDW. There are long lines to pay to park, long lines to ride the tram to ticketing, long lines at ticketing (you splurge for “special ticketing”), and long lines to ride the monorail to the park. When you finally get in and want to ride Space Mountain  as well as ALL other rides- again, long lines. You go for a meal, usually a pretty expensive meal – again lines…all those lines you’re willing to wait in to provide your family with a worthwhile vacation.

Now, say a family, mom, dad and a couple of kids want to take their family to WDW – see, they don’t like the amusement park where they live. It’s not a big, rides not as cool, and food not so good.  No, they want the big and fancy amusement park for their family.

They get in their car and drive to Orlando. see the traffic and decide to drive around, cut people off, and drive on the road’s shoulder, all to avoid the line. They see the pay for parking booth, and drive around it, I mean after all; why should they have to wait in line and pay – again; all they want is a GREAT experience for their children. They see the ticketing booth and another huge line – but they have no money and certainly don’t want to wait in a line, so they sneak in through a side fence. They are finally in! They and their children see this wonderland of beauty, cool rides, great food – the WORKS…all they ever dreamed of. So much better than their amusement park!

But, OH NO, they don’t have any credentials/ticket/wristbands to ride the rinds, and rides with more HUGE LINES of people waiting to ride…

They think, “who cares about tickets and lines, we’ll just push and shove our way to the front,  THEY’LL have to let us ride – easier to let us ride than send us out of line off the ride…”

After breaking in at all the ride lines, having a blast, and generally having a good time without any negative consequences; they get hungry. They walk over to a restaurant and, lo and behold – another line. They don’t care about lines and waiting, so they break in the line and order their food. The bill comes, but they have no money – no, they expect their meals for free too.

All the while YOU and YOUR family have waited like responsible vacationers in traffic, at the parking booth. You waited in line to buy your tickets, rode the monorail to the Magic Kingdom, stood in long, hot lines to ride the rides and then waited in line and paid for your lunch. You see this other family WHO DIDN’T do what you did for this vacation…are you pissed? Sure you are!

See any similarities to DACA? Sure you do. I mean the children of the line breakers maybe had no control over their parent’s actions. In fact, most maybe had no idea their parent’s might be breaking they law…but since they are already in the park having fun – even if they DID know – who cares -they’re there and might as well have fun! Again, wasn’t their fault, in fact they, UNDER NO CIRCUMSTANCES, want to go back to their old amusement park. Heck, they only heard about it and never actually saw it. so why go back – there’s no connection to it. They only know THIS park!

Now these same kids want to KEEP coming to WDW, they want to KEEP breaking in line (just like their parents) and want to be able to stay in this beautiful, wonderful amusement park. They really don’t care about all of those who are still waiting in line to get to WDW, let alone, enjoy it!

Is that right or fair to those families who paid to visit the park correctly and legally? NO!

See how DACA and WDW are similar…explain it that way to your kids and they’ll understand too!

So, do you want line breaking, no paying, criminals getting free and easy access to YOUR amusement park? I don’t.

Pretty simple analogy…

Thoughts on my military service this Veteran’s Day…

I was reminiscing today on my time in the Navy, and what this Veteran’s Day means to me. Even though it’s been over 30 years since my time in the military; not a day goes by that I don’t think about those days and the guys I served with – oh, I’m a bit older, and have gained some grey hair as well as a few pounds; but damnit, sometimes it feels like it was just yesterday.

Don’t get me wrong;  back then we weren’t in any “hot war” – we were fighting the “cold war” against the threat of the mighty Soviet Union. We served to protect us and the free world from the threat of communism! None of us are what I would consider hero’s – we just all loved and still love, our country and each of us wanted to serve her in our own special and unique way.

The men I serve with were all special. We had a bond – our backgrounds, religion, color or creed didn’t matter – we were all Navy BLUE! There was Dave Miller, Dave Perkins, Ralph Futch, Kent Snapp, John Albaneze. Randy Sunday, Aaron Raast, Matt Treadway, Carl Evans and so many more whose names escape me…ALL of whom I learned something from! I learned more about respect, responsibility, leadership (and “followship”) and diversity in my time in the Navy, and from my shipmates than anywhere else. I also learned more about PEOPLE in those years too! Kinda hard not to learn when your berthing area (what sailors call their sleeping area) is 3 bunks high and only a couple of feet apart!

What else did we all have in common? We worked together for a common cause – AMERICA. Not just that; but we sweat our asses off cruising around the Indian Ocean (yep, we’re all “Shellbacks”!), and we froze our asses off in the far North Atlantic. We fought, cried, and bled…sometimes all within the same hour. We shared good news from home – and we consoled each other when the news wasn’t so good. We survived births, and deaths. And we all survived all of that and MORE together!

Something else you need to know – we did all of that BEFORE ships had internet access. email, and video calls. We communicated with our loved ones at home the old fashioned way – snail mail! And when I say snail mail; I’m not kidding – we could go 2, even 3 weeks between mail call. In fact, letters had to be numbered so you knew in what order to read them!

Just writing about this; brings back a flood of memories…the smell of diesel and jet blast. The sound from the 1MC (ships main communication system). The lines for mess (food line), FOD “walkdowns” on the flight deck, knee knockers, flight ops. AND LIBERTY!

I could go on…but something I think even more important needs to be mentioned…the sacrifice our families endured. If it weren’t for the love of our families – spouses, significant others, parents, and siblings, the time on the ship would have been almost unbearable! They had it much harder than we did that’s for sure!

Today, I think back at those times with tremendous pride and fondness. Yes, it’s been over 30 years since those times and all of us who served together have gone our separate ways. I wished I had done a better job staying in touch, but I’d like to think they too share my sentiments of those times. I think about them often.

I’ve droned on long enough…but I’d like to finish with something quite simple…There are 2 things I do everyday; 1, I fly the American flag outside my house , and as I pass; salute, and thank God that I have the privilege to live in the greatest nation in the world and 2, I pray for my family, friends, co-workers, the men I served with and ALL Veterans who now serve as well as all who have served in the past.

That’s what this year’s Veteran’s Day means to me…in fact, EVERYDAY for me IS Veteran’s Day!

 

 

 

Is YOUR Business Prepared? Lessons From Hurricane Harvey (and Katrina, Hugo, Andrew, Sandy, Wildfires, Earthquakes, Plane Crashes, and Floods!)

Having personally lived through multiple natural disasters, I can attest first hand the feeling of helplessness that overwhelms you when a business (whether you own it, or work for others) is affected by a natural disaster and business operations are interrupted or suspended – sometimes for weeks, months – or worse – permanently! You’re stressed, worried and the uncertainty can and WILL consume you!

Hopefully you’ll NEVER need to worry about this – but chances are; one day you will. Why not be prepared. Right now in Houston and the surrounding areas; company owners, managers and employees are stressing over work…rightfully so. We exist in a “hyper-competitive” world…how many companies in Houston just WON’T recover after this historical flooding event? How many of their competitors will “swoop in” and try to take their market share as they are trying to recover? How will this event affect their employees? These questions and scenario should scare the hell out of you!

When something like this happens; MANY questions course through our minds like:

• How will I get to work? or, can my staff and customers get to my business location?
• Is the business even still there? or, will my insurance pay for the damage (a/k/a “I really wished I had purchased Federal Flood Insurance”!)
• Will my boss understand if I can’t make it in? or,  what can I do if my staff can’t make it in?
• Will I still get a paycheck? or, how long can I pay my overhead with no cash flow coming in?
• Plus so many more to mention…

The answer is pretty simple – even small business owners NEED to put in place an

EMERGENCY BUSINESS CONTINUATION – DISASTER RECOVERY PLAN!

See, it’s not just the big companies who need these (hopefully most do); ALL companies need one. Even if you only have 1 W2 employee – YOU NEED ONE!

Here are a few things you can do to ensure YOUR business survives and your staff and customers will retain their CONFIDENCE in you and what your business does! This is not an all-inclusive list…each business is different, so your plan will be different!

1. Review your business insurance policy. Do you have a “loss of income” benefit built in? If so; how much. Is it enough to cover both your physical business overhead AND employee expenses (compensation, insurance, benefits, taxes, etc…). By the way, when WAS the last time you reviewed your business insurance policy with your agent – you should do it at least annually!!!
2. Do you have Federal Flood Insurance? Even if you’re not in a “flood plane (or is it plain?)”, you need to ask your insurance agent about this. Water damage “from below” is usually considered flood damage and NOT covered by your regular policy!
3. Do you regularly back up your business computers – I mean REALLY back them up including software applications and ALL files. Your goal is to be able to go anywhere (short term office/store location), buy a new PC(s), plug it in, hook it to the internet, do a simple “download” and be up and running in minutes. Have a large staff, ask your IT consultant to recommend a temporary data center, or other IT organization that you can lease space and equipment from and set up in. Again, the goal is to have your IT platform up and running in hours instead of days or even weeks if possible!
4. Phones, phones, phones! In an era of VOIP phone systems, the good thing is you can operate anywhere and have a lot of forwarding options; that is if you deploy one! IF you still use a “copper wire” phone system, you’ll want to ask your provider about the emergency forwarding systems, policies and procedures they have available.
5. Website and social media. Make sure you have a WRITTEN policy, plan and PERSON designated to update your businesses’ online presence. Nothing screams confidence more than an employee, vendor, or customer/client seeing you have your act together – professionally and calmly after an event happens! The sooner you can update – the better!
6. Have a clear and detailed employee plan. That means having all of their phone numbers/emails so you can reach them to check on their (and their family’s) well being, current condition and status. You also need, if applicable and appropriate, to have an emergency “work from home” policy. Is your location near a hotel/motel? Might it be possible to help with their short term housing if necessary? Maybe you’ll need it too!
7. Physical business location security! If you have time, lock up everything – especially client/customer records. You DON’T want personal info released and have an identity theft issue because you were careless. Physical files are great and sometimes necessary (for regulators/IRS); but if possible; always scan/image important information! You might have a great alarm and security camera system; but if the electricity goes out – they usually do too! Make sure to take all checkbooks, and other important financial documents to safety – especially ALL insurance information. Worried that you won’t have time? Keep updated copies in a home safe!
8. Do you have company vehicles? Make sure you have complete coverage! IF vehicles are important for your business; make sure you have a back up vendor you can call in the event of an emergency and need some vehicles in a hurry!
9. Meet, discuss and review this plan with your staff – at least annually. Include your IT, phone, and other important business vendors in this process. Your plan is a living and changing document and like all business plans is not STATIC! Make it part of your overall annual business planning process! Doing this THAT WAY, again, instills a sense of confidence and CONTROL over whatever natural disaster situation might occur within the whole organization!
10. Proactive communication! IF (and when) an event that causes business interruption happens, you’ll want to reach out to all affected persons (staff, vendors, customers, insurance agents, CPA, and attorney) as soon as possible. The communication will be brief – as you probably won’t know much as to future events or timelines, rather; that you have an “Emergency Business Continuation and Disaster Recovery Plan” that you have enacted and just want to let them know that as soon as its safe to resume operations; you will! Remember, in addition to your actual product, the “other” things you sell, offer and market IS CONFIDENCE, COMPETENCE, PROFESSIONALISM and STEADINESS!

You can try to build a plan yourself, or use one of the MANY outside 3rd parties that can help you build a plan specific to your needs (do a Google search – there’s A LOT!). Either way you decide to do it – DO IT. When the SHTF (look it up) this is one of those “best practice” initiatives you can enact that will keep you in business (when everyone else is scrambling) in a controlled and calm way; and once the event that caused this interruption is over – you’ll be in an even BETTER position for future profitability; all because you PLANNED for it!

 

 

 

 

 

YES! You young people NEED life insurance too!

(I recently posted this on LinkedIn…)

I bet you’re thinking, but Kevin, I’m young, healthy, have plenty of time to “become a responsible adult”, besides I need that money for a new IPhone and Uber Eats! Anyway, who would be my beneficiary and why would they need money IF I were to pre-maturely pass away?

 
Here are 10, REAL WORLD reasons WHY you should consider buying life insurance NOW and take advantage of one of the GREATEST financial planning tools EVER!

 
1. Obviously, to cover your funeral and burial. According to the National Funeral Directors Association, the average funeral today cost around $ 11,000! Want a real “baller” funeral with all the extras (and you can put in writing what you want!) – They can go from $ 25,000 on up! I mean, your parents spent A TON to raise you – the least you can do is help them out with this – otherwise, depending on what kind of child you are/were – you might just get a cardboard box next to the cat and dog! You don’t want that do you? Heck no! JUST KIDDING…your parents wouldn’t do that to you!

2. Have a baby brother or sister? Wouldn’t it be nice to be able to help fund their college education? Sure it would, and you can with life insurance!

3. You have a large student loan debt balance that YOUR parents co-signed for. YES! If you don’t pay, even in death, they probably will be on the hook for the balance! How do you want them to remember you? Hopefully as the responsible one, you’ll be able to “one-up” your siblings – even in death and be the “favorite” – the responsible one! Take that slacker siblings!

4. Do you have any affection for your college or university (or reform school)? Did your course of study consist more than “Beer Pong 101″ or blowing some of that student loan money for Mexico? Maybe you majored in, gulp…”the arts” or some other worldly endeavor. Want to show your classmates up” Get a huge life insurance policy and name the school (and maybe the department you loved the most) as the beneficiary. Who knows, they might name a building (or just a bathroom) after you. NOW that’s a LEGACY!

5. On a more serious note – do you give to your house of worship on a regular basis? Do you tithe or make some other regular financial contribution to them? If you die, they will, believe it or not, suffer a huge financial loss – I mean, take your annual gift; multiply by your anticipated life expectancy and WOW, that’s a ton of money! How many lives will your gift touch? What if that money isn’t there? And guess what – IF you structure it properly, you might be able to realize some tax advantages!

6. Are you one of those “do-gooder” types who go to protests, marches, or believes with some level of social conscious? If you feel that strongly – make a charitable gift with life insurance to them…I’m sure the GOP will appreciate the gift! You might not get a deduction, depending on the group, but who cares, you’re doing it for the cause!

7. Ok, so you don’t want to help your folks, your school, or your house of worship – I get it…so, let me appeal to your dark side – GREED! If you’re one of the many young people who doesn’t think Social Security will be around in the future – life insurance can actually be a way to help you “force save” for your retirement and supplement your IRA/401(k) with TAX FREE money! No, I’m not crazy…there are in fact ways that you can access the inside build up of a policy’s cash value TAX FREE! Want to learn more – gotta call me for the secret!

8. You’re young and healthy – life insurance is super CHEAP when you’re young and healthy! You know the most expensive kind of life insurance there is – the kind you need BUT CAN’T GET ’cause you’re old and sick!

9. You just got married! Congratulations… Maybe you just got a new house with a hefty mortgage…a baby might be on the way. Don’t you want to protect that? If not, I don’t want you as a client! A “normal” young, married person should have 10X their annual GROSS income in life insurance benefits. I said “normal”, if you’re rich or a “trust fund baby”, you probably NEED A LOT MORE! And don’t think your work’s group life insurance is enough – it ain’t!

10. Last but not least; say you have an entrepreneurial spirit and want to start a business in the future and are worried about funding…there are forms of life insurance that generate funds that you can “self borrow” for MUCH LOWER rates than banks or other lenders! Works for cars, boats, IPhones – whatever you think you need to “finance”!

Ok – GREAT NEWS…the best thing ever happened – YOU DIDN’T die prematurely, you’re living a long and fruitful life and the things you wanted to protect in your youth – you’re covering! Guess what…under most, non-charitable circumstances, YOU CAN CHANGE the BENEFICIARY to what is important you want to protect NOW!

See, I TOLD you that you young people need life insurance! Have a great day, and when you go and get that next Super Grande Mocha, hipster tattoo, or just HAVE TO HAVE that newest IPhone, or rack up more Uber Eats charges on your already maxed out credit card, think about what you could be doing with a small amount of that money!

A Common Sense, FAIR, and EASY Way to Solve the Confederate Monument Issue

I was born in the North. I’ve lived the majority of my life in the South. My wife was born, raised and has lived in the South since her birth. Both of us are proud to be Americans and both of us abhor hatred, violence and bigotry in any form or in any shape. We’ve have many discussion about the Civil War and their associated Confederate monuments that celebrate and commemorate the lives lost – on both sides. And both if us agree on what should be done with them…

I think we’ve come up with a solution that is fair, reasonable, easy; and dare I say elegant – as it takes the decision out of the hands of a few (politicians) and puts it into the hands of the many (the people).

Let’s keep it simple!

Let the citizens VOTE if they want Confederate Monuments in their city/county/state and country. Here is how I would do it if I were in charge:

If a Confederate Monument is on CITY owned property, then allow the PERMANENT citizens OF THAT CITY (both legal and dare I say illegal/undocumented) vote if they want those monuments to stay or be removed.

IF a monument is on COUNTY property, allow ALL of the permanent citizens of that county to vote on the issue. Same for monuments for STATE owned property.

IF however; a Confederate monument is on FEDERAL property, then you allow ALL LEGAL (it is a federal issue – not local) citizens to vote on the issue.

IF a property is on PRIVATE land and not funded with any level of government grant/allowance it is not included, nor if there are any Confederate monuments in National Parks, Battlefields or Monuments; they too would be left alone.

Cities, who are named for a Confederate figure would NOT have to be re-named as the economic cost to government and private business would be ASTRONOMICAL (print collateral, IP with the USPTO, electronic media, etc. – it would crush small and large businesses alike.

Once the vote is competed and ratified, the result would be executed upon within 90 to 120 days.

Here is the beauty of this solution – it takes the decision, and IT’S A VERY LARGE AND EMOTIONAL DECSION/TOPIC and SHOULD NOT be decided by just a few local or state politicians – some whose personal views are highly biased and which may not truly represent those in their consistency OUT OF THEIR LIMITED HANDS!

Why is this solution easy – politicians won’t have to alienate any segment of their voting base by taking one side or another… If I were a politician and fearful of losing my “seat”, I’d gladly leave, AND SUPPORT my constituents PERSONAL DECISION AND THEIR VOTE!

Last but not least and think about this – it helps foster a sense of choice and free will. Say you hate the idea of Confederate monuments and you have a family move coming up. Maybe you’ll choose a location where the voters voted to REMOVE them. What if you’re a student who is looking at colleges, and you don’t like the idea of going to a school in a  city/town that has these monuments – you can CHOOSE another, maybe more progressive school. If you are a pro-monument person, maybe you’ll CHOOSE to do business in a city/location that embraces that.

AND those local/county/state and even federal vote decisions and actions have consequences…business, conventions, trade shows, sporting events, etc. MIGHT bypass this location based on the vote of its citizens – both pro and con!

THAT’S WHY IT HAS TO BE A LOCAL/COUNTY/STATE/NATIONAL vote decision – not left to just a few POLITICIANS  – the decision is just TOO BIG!

After all, who were these monuments built for – the politicians or for the people? Why not let those who these were built FOR – decide!

 

 

 

 

Common Sense Immigration Reform

This past month, 2 members of the US House of Representatives, along with President Trump, introduced a pretty substantial change to America’s “LEGAL” immigration rules and procedures. In essence, they’ve built an immigration platform based in large part on a “merit system”.

This is a pretty significant deviation from our current system and one I do like. But is it fair?

Now, please keep in mind, a great many countries (1st, 2nd and 3rd world) use a form of merit based requirements to immigrate to their country…some very stringent – others, a bit easier. From what I’ve researched, the “Raise” plan offered up fits right in the middle.

But why does US legal immigration reform have to be so hard?  Here is my personal view of this – keep in mind, my opinion is very “apolitical”; rather it’s based on common sense and what I believe centers on the principle of FAIRNESS.

If I were in charge of US immigration policy, procedures, rules and guidelines; it would be summarized in one simple sentence – a concept that can be understood by everyone.

“The United States will match and reciprocate a non-US citizen’s lawful entry in to the United States, based on that immigrant’s country of citizenship’s rules of immigration”.

For example – IF you’re an American citizen (not-dual citizenship anywhere else) and want to emigrate to a country that has a merit based entry program, then the U.S. would match that country’s same merit based program for immigrants from THAT country who want to emigrate to the U.S.

Simple and fair.

BUT, the rules apply based on the persons county of citizenship – NOT a refugee who fled that country to another. For example, a Syrian who left and went to Germany, would not be accepted as an immigrant in the U.S. based on German immigration rules, they would be based on the citizenship of origin – in other words; Syrian immigration rules.

Now, IF a nation does not have clearly defined and internationally recognized immigration rules and laws, then we would base any immigration for citizens from that country to the U.S. based our standard – which I would hope would be a very stringent set of rules that we set for ourselves!

Keep in mind this is only for lawful and legal “standard” immigration to the U.S. Acceptance of refugees would be handled under a different set of rules and procedures. We already have laws on the books for illegal immigration/entrance to the U.S We just need too enforce them.

Want an even more simplistic analogy? How about this, “what’s good for the goose, is good for the gander”. It’s fair, measured, simple and easily explained.

Anyway, off my soapbox now. Thanks for reading…

 

 

 

 

 

The “REAL” Purpose of ALL Media (MSM) and Others…

Today while watching the Sunday “talking heads”, I heard one pundit/reporter claim the job of the media is to inform the public of  the true”goings on” in the country/state/local markets.

That’s only partially true…

To the best of my knowledge, there is only one “non-profit” news organization – NPN (no idea why they still get tax dollars). All of the rest (Fox, CNN, Drudge, HuffPost, NYT, WAPO, WSJ, Weather Channel and even Rush Limbaugh” – yes I know, there are a whole lot more, too many to list!) are in the business the generate PROFIT for their owners and shareholders.. 

How, you ask do they generate profit? – through paid advertisers, whether web ads/clicks, TV/radio commercials or print ads.

And what are their ad rates based on? Viewers/listeners, ratings, readership, subscriptions and clicks. The more you have and generate – the more you can charge! The more you can charge the more profit you can generate.

Now, HOW do these outlets gain more audience/clickers/subscribers in 2017? Simple – by sensationalizing the news. Ever notice how CNN and Fox always start a segment with BREAKING NEWS when there really isn’t any? To keep you watching. Ever wonder why the Weather Channel started naming winter storms and your local news/weather people’s favorite word in the wintertime is TREACHEROUS? Because it keeps you tuned in! The more who do – the higher a media outlet can charge advertisers!

Do you really think Rush cares about the news – he cares about ratings, show markets, shares and cume! If he could gain a larger audience and bigger ad share revenue by being “liberal” – he would! It’s all business!

Which leads me to the MSM’s “fake news”…this is all done on purpose! How many times have you gone to a web news site, licked on the headline and the story was in no way related to it? PLENTY! So, the MSM concocts these inflammatory stories to get the public to watch, buy, or click ALL TO GENERATE AD REVENUE – nothing else!

Why did Rachel Maddow do the whole “Trump Tax Return” angle during the fall election season? Simple – RATINGS. They were huge and her network cashed in! Was it news? Was it real? Did it matter in any way, or affect the election in any way? No! All it did was cause people to tune in, and they did! It was a great big NOTHING except for MSNBC! Why does the NYT run some of its “breaking news and exclusive” stories based on “unnamed – anonymous sources” – and many times they are simply untrue? Simple – they want to sell papers and get website “clicks”. Why does Sean Hannity focus on “conspiracy theories”. Because his audience loves that stuff and will tune in! The more sensational and the more far-fetched – the more viewers, higher ratings, and more money.

ALL YOU HAVE TO DO TO GET TO THE ROOT OF ANY ISSUE IS TO FOLLOW THE MONEY!

This past Saturday there was a horrible demonstration by a bunch of white nationalists/bigots. There was violence and sadly, 3 people died (many more were injured). Some just want to blame the alt-right. Some want to blame the president. Some of that blame is justified, and yes it was a terrible domestic terrorist event. But, can we recover, heal and learn from it, and hopefully not repeat it?  but who is keeping it from happening in a constructive way – the media! The MEDIA WANTS to perpetuate this situation and other social problems in America because these problems generate ratings for them!

They (the media) just can’t help but to report in a way to inflame emotions as opposed to allow healing to happen…they – BOTH SIDES – keep pulling at the bandage and scab!

Just listen to Van Jones, Jeanine Pirro, Bill Maher, Jake Tapper, Michael Savage (yes, a small sampling – there are too many to list) – all they want to do is fan the emotional flames on both sides and keep the narrative going… ALL TO BENEFIT THEM, NOT YOU!

Over the past few years, ever notice how much airtime CNN, Fox, MSNBC, etc. gives when there is a national tragedy, or big crime, or national disaster…only not to report anything new (after 1st 2 or 3 hours – nothing is new), but to trick you into thinking there will be something new you’ll only see on their network! What a sham!

Complain all you want about liberal media bias – won’t matter, nor will it change as long as people want to watch or read about the car wreck. Watch or read about personal suffering. Watch or read about ANYTHING that is sensational (good or bad). They watch, advertisers pay, media companies make a lot of money, pay their people unbelievable amounts of money (which only incentivizes them to continue their “less than honorable” behavior) and the cycle keeps on going. I mean, does Megan Kelly really deserve a reported $ 15M to $18M a year for HER show? Does David Muir deserve a reported $5M a year? Katie Couric? Really – $ 10M reported to repot for Yahoo?

Why does CNN’s Jim Acosta act the way he does at White House briefings? Because he’s a good reporter? NO. It’s to get more face/airtime and more public exposure, all in hopes that CNN’s talent relations notices and gives him a network show – for a bigger payday! Do I blame him for wanting personal fame and fortune? No. Honorable actions as a news reporter/journalist? Heck no!

Why do they, and the other big names, get that kind of money? Because they generate ratings!!! Remember – ratings/subscribers/clicks/listeners/viewers all mean one thing – revenue and profit! How do you generate these results – by sensationalizing, and sometimes fabricating, the news!

Know what is sad about all of this? The general public really think that reporters, journalists, pundits, media outlets, TV, radio and print’s job/purpose is the “noble” task of  just reporting the news. The honest, true and unvarnished news.

News reporting used to be noble, honest and unbiased…not any more. Now IT’S ALL ABOUT THE MONEY!

Now, do I begrudge these media outlets from making as much profit they can? Hell no! I want them to make as much as they can…but at least be honest about it. Want to know who IS honest about their journalistic “integrity”? The National Inquirer, The Globe, TMZ, Sun and the Examiner. At least you KNOW what you’re buying from them! Sometimes CNN, Fox News, ABC/CBS/NBC and others are no different!

Where are Walter Cronkite, Chet Huntley and Edward R. Morrow when we need them?