Family Business Forum’s Inaugural Event

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Categories: Community Involvement

Today, in front of a packed audience, Sheila Johnson kicked off the inaugural event for the DC Family Business Forum with a spectacular story about her life. Ms. Johnson shared her remarkable journey that began as a child who moved 13 times during her formative years, growing up to become the successful entrepreneur she is today. Sheila walked the audience through her life as a violin teacher, a high school orchestra conductor, a co-Founder of BET Networks, and then her journey as the Founder and CEO of Salamander Resorts. Ms. Johnson captivated everyone in attendance by highlighting many of the struggles and prejudices she experienced throughout the past 40 years and how she triumphed through perseverance and gut instinct. She is now headed back to Middleburg, VA to attend the Middleburg Film Festival, a project that she founded in 2013 – at the suggestion of friend and colleague Robert Redford – and is considered one of the top five independent film festivals in the country. The event takes place October 20-23, 2016.

Under the direction of Scott Greenberg, Greenberg, Wexler & Eig is proud to be a founding partner of the DC Family Business Forum along with sponsors Baker Tilly, Cardinal Bank, J.P. Morgan, and Reed Smith. The mission of the Forum is to promote and foster the growth and ongoing success of family businesses through learning, sharing, and creating solutions for the critical issues and challenges confronting family businesses in the Washington, DC metropolitan region. Additional information regarding future programs and featured speakers can be found at www.dcfamilybusinessforum.com.

Saving for Retirement

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Categories: Industry Insights

Let’s start with a couple of trick questions: What is the difference between a 1% return on one thousand dollars and a 1,000% return on one dollar? Nothing. Next, does it matter? Yes. And, who has more money in ten years: you or someone who invests $10,000 in the stock market today? No one knows. Finally, what is Autophagy and does it have anything to do with your retirement? Autophagy is how cells recycle damaged, diseased, or worn-out bits of microscopic machinery into new, fully functional organic stuff, see 2016 Nobel prize for Physiology or Medicine, and no it does not affect your retirement. Yet.

What does all that have to do with me you may be asking. If this discussion is framed in a retirement conversation, then these are all important questions. The likelihood that you will receive a 1,000% on anything is extremely rare, but a 1% return is much more likely although not as exciting. What is a more reasonable return? If you were to invest part or most of your retirement savings in the stock market, the average annual return since its inception is about 10% when we adjust for inflation over that time period this brings the return down to 7%. At that rate, your investment nearly doubles every ten years! Before you say the stock market is too risky, remember that stable value funds are only found in retirement plans. These are relatively conservative investments backed by a ‘wrap,’ or an insurance contract, that backs a stated positive return which are subject to the financial strength and claims paying ability of the issuer, usually an insurance company. This gives you a very valuable, relatively safe option that is not available outside a retirement plan.

If you don’t save anything or you save very little, returns don’t matter. The biggest determinant of your retirement account balance is simply how much you contribute. You cannot invest your way to retiring without putting in a substantial amount of your own money. So, how much should you contribute? That varies depending on the person. Why not do it now and adjust it as you calculate your needs? Most retirement plans are very flexible and allow for regular increases or decreases.

One rule of thumb is 10% of your pre-tax income. There are many reasons this may be a good starting point. One reason is that this may help you replace approximately 50% of your pre-retirement income if you start early enough (20’s or early 30’s) and earn about 3 – 4% per year – a reasonable return according to many investment providers when reviewing past market performance. Social Security may replace about a third of your income and the remainder would either be a reduction in your income or made up from other savings or investments.

As an advisor for over seventeen years I have heard many excuses for not saving, some bragging about investment returns, good & bad investment ideas, a variety of strategies and other interesting points, but I have never heard anyone say they have too much money!

So why not start paying yourself today by contributing to your own retirement?

Breast Cancer and Life Insurance

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Categories: Industry Insights

October is Breast Cancer Awareness Month, which is an annual campaign to increase awareness of the disease. It’s a great reminder to encourage people to take the steps needed to detect cancer in its earliest stages. Every October, many breast cancer charities try their best to bring attention to the disease and raise funds for future research.

You can work to prevent breast cancer by getting regular screenings, but also by making some lifestyle changes. These changes include watching your weight, eating vegetables, watching your alcohol intake, and also knowing your family history. However, breast cancer can affect anyone, male or female, and it’s helpful that there are so many resources and medical advances available.

A history of breast cancer doesn’t make getting life insurance impossible. Many companies are able to offer life insurance to those who are just a few years from recovery. The main factors to consider when determining if a cancer survivor is insurable for life insurance is the stage/grade of the cancer, the date of diagnosis and recovery, and the type of treatment. When underwriting a life insurance policy for any female, it is great to see that routine mammograms have been completed.

Join the fight against breast cancer and help raise awareness and encourage regular check-ups to help reduce the risk of cancer. Also, know that life insurance can be very affordable for breast cancer survivors!

Life Insurance Embraces Pink

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Categories: Industry Insights

As we transition away from September, we are graciously welcomed by the color pink. Everywhere you turn in October you will be reminded of the many women (and even men) who have courageously battled with breast cancer. This month isn’t about professional athletes showing their feminine side with pink patches on their jerseys but to bring awareness and support to a disease that will affect 1 in every 8 women. October embodies the color pink as its identity for Breast Cancer Awareness Month, not because it is synonymous with females, but because the true essence of the color brings a sense of comfort, warmth and hope that everything will be okay. And now there is new hope for breast cancer survivors when applying for a life insurance policy.

Not too long ago, breast cancer survivors had little-to-no hope of acquiring life insurance, even after undergoing successful treatment and remaining cancer-free for years. But with the overwhelming awareness and support for research over the past decade, the rate of survival has dramatically increased. This is BIG news for life insurance underwriters who are basing policy approvals/denials on the likelihood of post-treatment survival. Due to the increasing survival rate, the underwriting process for breast cancer survivors has dramatically changed, allowing survivors obtain to policies if they meet certain guidelines. Below is a list of the new standard questions:

  1. What type of breast cancer?
  2. When you were diagnosed?
  3. What stage were you in?
  4. How big was the tumor?
  5. Were lymph nodes involved
  6. Did it metastasize?
  7. What type of treatment did you receive?
  8. How long since treatment?
  9. When did you start/finish treatment?
  10. Was there any recurrence?
  11. Are you on medications, what kind?

The likelihood for acceptance and the policy rate issued relies heavily on the answers to these questions. Those survivors who were diagnosed early with no lymph nodes affected and received treatments have an almost guaranteed standard rate approval. The more mature and involved the cancer becomes, the tougher the requirements become. However, the longer the period of time one waits to apply for life insurance – postpone period – after successfully completing treatment, the better odds you have of qualifying for a standard rate.

It is worth mentioning that as research and survival rates continue to grow, some life insurance companies are now beginning to offer some breast cancer survivors standard rates, without the flat extra fee. This flat extra fee is common for cancer survivors and is an additional premium that can decrease and disappear over time, so long as the client remains cancer-free. The Good News: the upward trend in breast cancer survival is allowing companies to do away with this flat extra fee for those who had stage 0 or 1 with no lymph node involvement. This flat extra fee will most likely appear for those who had more advance staged breast cancer, but will similarly diminish over time.

Therefore, best rule of thumb is to stay up to date on your check-ups, seek a doctor for any concerns, and live a healthy, smoke-free lifestyle. The sooner any cancer is found, the better the chances are for survival as well the ability to obtain a good life insurance policy once recovered. Mammograms: good for your health, good for your life insurance rates!

Life Insurance Done 8 Ways

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Categories: Industry Insights

Big changes take place during the month of September. The weather becomes crisper, days become shorter, kids are heading back to school and there is pumpkin flavored everything! September is recognized as the end of summer and welcoming of fall. But there is another persona September takes on that many may not be aware of, national Life Insurance Awareness Month.

This month is dedicated to bringing attention to life insurance for the many American’s that are still without coverage. Today, 4 in 10 American’s do not own a life insurance policy, with many excuses boiling down to lack of knowledge. In fact, the most common reason for not having a policy is cost. American’s believe buying life insurance is too expensive when in reality it can cost as little as $13 a month, depending on the policy. That is why Life Insurance Awareness Month is aiming at disproving these myths and providing the proper education to Americans so their families are financially covered in the event of a tragedy.

Even celebrities are jumping on board for Life Insurance Awareness Month, with TV star/comedian, Anthony Anderson, as the 2015 spokesperson. He opens up about how life insurance was a huge part of his family’s life growing up.

Life insurance is all too often over looked. Fancy iPhones and daily lattes seem to be more important than protecting the financial well-being of your family; mainly because people are not educated on the subject matter. With the help of Life Happens, the non-profit organization promoting Life Insurance Awareness Month, more American’s can learn and benefit from even the simplest of coverage. Take a few moments to check out LifeHappens.org and spread the word on life insurance.

If you have any questions regarding a current or potential life insurance policy, please call Keith Eig, at 301-656-0660 ext.306 or email at kmeig@gwellc.com.

Digital Archiving Enters New Realms

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Categories: Media Commentary

Purchasing life insurance policies, drafting a will or an estate plan and securing your family’s financial well-being in the event you pass are some of the smartest things you can do. Nobody likes confronting the harsh truth that we won’t always be around to provide for our loved ones, but it is a fate you can protect against with proper planning and guidance. But what about everything else? Account numbers and passwords to pay bills, the deed to the house, keys to the safe deposit box, or the actual will itself, if these items cannot be located it makes life for your loved ones a little more challenging after you’re gone.

Everplans, a start-up company co-founded by Abby Schneiderman, has developed a digital archiving system to safeguard against these overlooked details. Everything from contact information for the gardener, to directions on how to care for pets, to treasured family recipes passed down for generations, all this “mundane” information, that seems to slip through the cracks when planning for life-after-death of a loved one, is gathered and stored in an online archive. Not to forget about all of the important materials, which are stored in the archives as well, such as copies of your will, health derivatives, beneficiaries and power of attorney. The client decides the amount and type of date collected so it can be as abundant or scarce as they wish.

The whole idea behind this product is making pertinent information readily accessible to the client, advisor and eventually deputy – the person you designate access to your archive – once you pass. It puts everything in one organized place, eliminating the stress and run around.

 

For a more comprehensive understanding of the product and the need for it, visit CNBC.

Basic 401K Tips

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1. Contribute enough to get full employer match.

Many employers will match your 401k contribution up to a certain percentage – usually capped around 6%.Essentially, this is free money that you will benefit from come retirement. In order to qualify for the match, you must contribute a certain amount yourself. Yes, this might mean your paycheck is slightly smaller each month but the money comes from pre-tax dollars so there should not be a huge discrepancy. It’s better to give more now in order to have more later.

2. Utilize automatic increases.

Many will agree that your 401k contributions should equal to 15% of your annual income. (Remember, that percentage will vary depending on how early or late you begin saving in your career.) If you’re just starting out in your career, 15% can be a lot to contribute, especially when you have the burden of student loans and other big expenses. Therefore, start out around 7-10% but increase your contribution by a percent each year then on. You can set up for these increases to happen automatically at the beginning of the new year. That little extra money taken from your pay will hardly be missed but overtime will add significant value to your retirement savings.

3. Invest in stocks while you can.

Your 401k is made up of stocks and bonds, and while bonds are considered the “safe” option, stocks have historically proven a better return. Those who are just starting out have at least 30 years before they retire, therefore, they can be more risky with their investments because the stocks will have time to recover from any market fluctuations. As you mature in your career, it makes sense to slowly alter your investment portfolio to more bonds than stocks. Some plans actually offer this option, called a Target Date Funds, which will automatically invest your retirement savings appropriately according to your age, i.e. more stocks while you’re young and more bonds as you near retirement.

4. Know your vesting date.

Millennials are known for being job hoppers – staying an average of 2 years at a job. While companies are aware of this fact they are taking steps to prevent it from occurring so valuable time and resources are not wasted on their end as well as the employees. A 401k vesting period was established in order to encourage employees to stay with a company. Basically, an employee must work at a company, for a set number of years, in order to earn their employer match contributions to their 401k. While the employees’ contributions are untouched, the potential loss of the match can be devastating to their retirement savings.

5. Roll over, do not withdraw.

If you do leave your job, for whatever reason, before you retire, do not withdraw your 401k! When you withdraw from your 401k before age 59 ½, you are subject to not only income tax but also a 10% penalty. Instead, roll it over into an IRA or your new company’s 401k plan. You even have an option to keep it with your previous company and let the funds grow; you just can no longer contribute to it.

 

These are just a few tips to keep in mind when setting up, nurturing and growing your 401k. Make sure to consult your financial advisor and plan administrator for more in depth analysis and preparation.

Annual Company Retreat – Whitewater Rafting!

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At GWE, we work hard to provide the best solutions for our clients’ needs. We research products, perform continuous reviews, align financial goals, and deliver on our promise to look out for the best interest of our clients. But even the best oiled machine deserves a little R&R. Once a year, GWE steps out of the office to take advantage of the beautiful summer weather and endless activities this area has to offer. This year, our firm took at thrilling whitewater rafting trip down the Potomac and Shenandoah rivers for our annual company retreat. We sure do know how to have a good time!

Financial Impacts of Same-Sex Marriage

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In light of the recent Supreme Court decision, Obergefell v. Hodges, ruling that same-sex marriages be granted and recognized at the federal and all state levels, big implications can be taking effect on financial and life insurance services.

Previously, in 2013, the Court ruled same-sex marriages be recognized federally, however, each state was still sovereign in granting whether same-sex marriage be legal in said state. This new ruling, now giving all same-sex couples nationwide the opportunity to marry, is a huge progress for those who were denied certain financial and work place benefits. Same-sex couples who are not yet legally married will receive all the same benefits as hetero-sex couples but they will also incur all the not so glamourous consequences as well. Financial services professionals are encouraged to advise these couples of the pros and cons of marriage from a legal and financial standpoint. Intentions are not to discourage same-sex couple from marriage, but rather to exercise due diligence by presenting both sides of the coin. Below is a list of rights same-sex married couples will be granted.

  • Unlimited marital deduction for Federal (and possibly state) estate tax planning
  • Spousal and survivor benefits for Social Security
  • Married filing jointly status for Federal (and possibly state) income tax planning
  • State spousal property rights during lifetime (e.g. – community property) or after death (e.g. – election of spousal share
  • Spilt joint gift election for Federal gift tax purposes
  • ERISA protection as a spouse under pension plans
  • Other spousal rights under employer-sponsored benefit plans (e.g. – health insurance)
  • Survivorship insurance

 

One advantage of marrying is the ability to file jointly on income taxes. However, this could be disguised as a benefit because combining incomes can put you into a higher tax bracket. Additionally, if there are children involved, taxes will not be as forgiving filing jointly as it be would filing single and head of household. On the upside, same-sex couples will enjoy the unlimited gift tax between each other, tax free property via survivorship, rollover IRA’s, social security benefits, as well as health insurance and even visitation and information rights in a hospital setting. Many of these new tax benefits will impact life insurance policies, estate planning, and retirement planning. Your advisor will be able to breakdown the logistics for you.

Same-sex couples should education themselves on the implications of marriage and decide if it fits into their financial plan. It is important to note that these are the same implications for hetero-sex couples as well; therefore it is good practice for all couples to review and align their financials before marriage.

GWE 14th Anniversary!

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On July 1st, there were a number of noteworthy events that occurred throughout history, including; the Battle of Gettysburg (1863), Canada declares its independence (1863), The Battle of San Juan Hill (1898), the first Sony Walkman goes on sale (1979), the PG-13 movie rating debuts (1984), and the return of Hong Kong back to China (1997). But another significant event took place on July 1st, 2001, when Scott Greenberg and David Wexler founded Greenberg, Wexler and Associates with two employees and one “associates.” Today, with Keith Eig added to the partnership roster, GWE has three partners, four associates, six phenomenal employees and three strategic partnerships. Our goal of providing objective advice, independent carrier representation, and extraordinary service has made us one of the top insurance brokerage firms in the country. We’d like to thank all of our clients and advisors who have helped us on our remarkable journey. We look forward to continuing to providing exceptional service and advice for many more years to come.