Category: Blog

How to Write Great Happy Holiday Emails

How to Write Holiday Email newslettersThere’s no better time than the holidays to show your employees and your clients how much you appreciate them. Here are five simple steps to help you craft the perfect email in no time.

Decide on the Audience and Purpose

Before you begin, determine who will be your recipients. For instance, if you’re writing to your team, it will be a bit different than writing to your clients. However, no matter who you are addressing, you’ll probably want to start by expressing your gratitude. After that, you can further refine your message. If it’s to your employees, acknowledging their hard work and dedication is a great place to start. After that, you might tout the many wins you’ve all experienced over the year. If you’re writing to your clients, you might want to share how great your partnership has been recently and that you’re hoping for an even better year ahead.

Keep it Brief

When expressing a seasonal message, less is more. Take time to think through exactly what you want to say. A good way to begin is to write what you want to say imperfectly. Get the thoughts out – it’s okay if it’s too long. Then come back and refine and cut. But be sure to give yourself enough time to do so. Few things are as challenging as trying to write a great message in a hurry.

Personalize Your Message

Craft your message as if you were talking to an individual, as opposed to a group. You don’t want it to be stuffy or overly corporate. Think about what you’d like to hear. Put yourself in the recipient’s place. Even if you feel your audience is more on the formal side, the holidays are the right time to be transparent and real. No one wants to receive a message that feels forced or fake.

Proofread Your Text

This is critical. Read every single word; and do it out loud. This works. Why? When you don’t do this, your brains fills in missing words. When you speak the words you wrote, you’ll instantly discover your mistakes. Imagine sending a holiday message that says, “Season’s Gratings!” Of course, you’d never do this, but this is hyperbole to make a point.

Choose a Clear Subject Line

Straightforward, concise and professional is what you want to aim for. A few simple examples are:

  • Sending You Warm Holiday Wishes
  • Season’s Greeting From [Company Name]
  • Wishing You a Wonderful Holiday Season

However, you can always be more creative and weave in something that happened over the year that will resonate with the audience, something that is specific either to your company’s culture or the culture of your client.

At the end of the year, as crazy as things can get with schedules, parties and shopping, it’s always nice to open your inbox and receive a message that warms the heart. These days, with everything that’s going on around us, it can make a world of difference.

Sources

https://www.indeed.com/career-advice/career-development/happy-holidays-email

 

 

Quantum Computing Uses That Solve Business Problems

Quantum Computing for businessEarly technology adopters are more likely to gain better business results, including higher revenue growth and market position. With businesses facing complex problems every day, it is no doubt that they are always watching out for the next big tech that offers a better solution.

Although still in its infancy stages, quantum computing is a technology whose commercial use will disrupt the business environment.

What is Quantum Computing?

Quantum computing is a technology that focuses on manipulating and controlling different laws of physics. This non-classical technology uses quantum mechanical concepts like superposition and quantum entanglement.

The idea of quantum computing is not new and has come a long way. The first algorithm of large integer factorization for quantum computing was introduced in 1994. This algorithm intended to reduce the time it would take classical computers to find the prime factors of large numbers. It’s worth noting that the majority of the current infrastructure for encryption and information security is built on prime factorization.

Since the first algorithm was developed, more technological advances have been reported, and the field is continuously receiving funding. According to the McKinsey & Company Quantum Technology Monitor, funding from private and public sectors for this new technology is skyrocketing worldwide.

How it Works

Unlike classical computing, whose information is encoded by bits, in quantum computing a qubit is the basic unit of quantum information. Qubit allows all combinations of information to exist simultaneously so that quantum computers can solve problems exponentially faster and with less energy consumption than classical computers.

In 2019, Google, in partnership with NASA, achieved quantum supremacy by demonstrating that quantum computers can compute in seconds what would take advanced supercomputers thousands of years.

Advanced development in this technology has also seen the introduction of quantum-computing cloud infrastructure through Quantum as a Service (QaaS). QaaS provides access to quantum computing platforms over the internet to customers. Major technology companies, such as Amazon, Alibaba, IBM, Google, and Microsoft, have already launched commercial cloud services for quantum computing.

With the continued increase in the quantum computing ecosystem and emerging business use cases, business leaders must stay aware and prepare to adopt the new technology.

Business Use Cases for Quantum Computing

1. Quick Data Analytics

Today more than ever, businesses are faced with big data and a large quantity of information requiring analysis and storage. Since classical computers are built to solve one task at a time, it takes longer to solve these complex problems.

However, quantum technology has the potential to turn complex computations into simple calculations that are solved in less time.

2. Optimize Investment Strategies

Optimization is all about finding the most ideal solution in a situation. When many options are available, it takes a classical computer a long time to find a solution. Therefore, classical computers use shortcuts, and the final solution is partly optimal. But, with quantum computing, there will be better optimization.

3. Better Forecast and Prediction

Businesses rely on forecasts and predictions generated after analyzing complex and large data sets. Quantum computing is built to process huge amounts of data quickly and more accurately. As a result, better forecasts and predictions will enable better decision-making.

4. Solve Problems With Financial Services

There are various computationally intensive jobs in finance that could be facilitated by quantum computing, such as credit-risk management, financial crime reduction, and trading strategy optimization. These tasks will greatly benefit from quantum algorithms that increase the speed of financial calculations.

5. Improve Data Security

Quantum computers are built to break encryptions that ordinary computers cannot. This might become a problem if hackers were to acquire encrypted data and store it until large-scale quantum computers are operational. To handle this problem, postquantum cryptography, a type of cyber security that can be used by conventional computers, is currently being developed. Therefore, a switch to quantum-resistant cryptography will prevent the possibility of data being exposed. At the same time, it will ensure better protection of digital assets.

Final Thoughts

Quantum computers will not replace classical computers; however, the two will form a hybrid solution whereby each task will be assigned to the most suitable machine – either quantum or classical.

Achieving the aforementioned benefits will require businesses to have teams of experts who are knowledgeable about the implications of quantum computing and who can recognize the company’s potential future needs, opportunities, and vulnerabilities.

With signs of commercial quantum computing becoming a reality, it’s not too early for business leaders to consider how it will encourage digital investment, reshape industries and ignite innovation. Therefore, having a thorough understanding of quantum applications is essential for positioning a business to gain a competitive edge.

How to Increase After-Tax Returns on Investments

How to Increase After-Tax Returns on InvestmentsIt is all about how much you keep after taxes – not what you earn from your job, a business, or investments. While it is always great to see fabulous investment gains, the only financial metric that really matters is what is in your bank account at the end of the day. One of the ways you can influence this is by minimizing the taxes you pay on your investments.

Unfortunately, many people do not think about how taxes impact their investment returns until near the end of the year; however, you should act all year round. Taking part in investment tax planning throughout the year will give you opportunities to keep more of what you earn. Here are some rules and strategies to keep in mind.

Know When to Take Your Losses

Psychologically, many investors are averse to taking losses, holding out to “make their money back.” Instead of emotion, logic and investment acumen needs to be applied here. If an investment does not have a fundamental reason to turn around, then you are better off selling it and taking a tax loss.

Losses reduce taxes on either your capital gains for the year or, when losses exceed gains, up to $3,000 on other income. Excess losses can be carried forward to future years. Plus, you will have the proceeds to reinvest in something more likely to produce a return.

Let Winners Run

Unlike long-term capital gains, short-term capital gains are taxed as ordinary income. This means your marginal income tax rate (the highest rate applied to you) can impact your investment gains.

While you should not let the tax tail wag the investment dog, ideally you want to hold a winning investment for at least a year and a day to benefit from long-term capital gains tax treatment. This means you will pay only a 20 percent maximum tax versus whatever your marginal rate is.

As with losses, the fundamentals of the investment are key. Therefore you should not sell a holding if you think the gains are at risk just to save on taxes. If you believe in the investment for the long term, then holding out for preferred capital gains treatment can be a clever idea.

Give the Gift of Appreciation

Making charitable donations you would not otherwise give is generally not a viable tax strategy. However, if you are already charitably inclined then consider donating stock or mutual funds instead of cash.

When you donate property such as stocks, your charitable deduction is based on the fair market value of the asset on the date of the gift. It is much better to do this than donate cash.

For example, if you have a stock you purchased for $35 and it is now worth $135, when you donate it you will receive a charitable deduction of $135. If you were to sell the stock first, you would have to pay tax on the $100 gains and then have only $103 to donate in cash – assuming you are in the 32 percent tax bracket. The only winner in this situation is the IRS; both you and the charity lose. This is because the charity is excluded from paying capital gains taxes on the appreciation that occurred while you owned the asset.

Hold Until You Die

This strategy does not benefit you directly, but rather your heirs. When someone inherits an asset such as real estate, stocks, bonds, mutual funds, etc., the cost basis of the asset is reset to the fair market value at the date of death.

This means that if you have stock in company XYZ that you bought for $50 and now it is worth $500, you would pay tax on the gain of $450 per share. However, your heir would pay $0 if he sold it on the day you died. If your heir continues to hold the stock, the benefit still applies as his cost basis in the stock of XYZ would reset to $500, so he will pay taxes only on gains over that amount.

Conclusion

While you should never cheat on your taxes or do anything unethical, it is foolish to pay any more than legally necessary to the IRS. Engage in investment tax planning year-round and you may see better after-tax returns and more money in your bank account.

Financial Accounting Overview

What are financial statementsFinancial accounting is how accounting professionals document, compile and outline how a business performs financially over a discrete period of time. Unlike cost accounting, which is used primarily for internal short and long-term strategic planning, financial accounting focuses primarily on producing relevant documentation for outside parties interested in short- and long-term financial performance.

Small businesses, large corporations and nonprofits use the following financial statements produced for relevant parties: the Balance Sheet, the Cash Flow Statement and the Income Statement. When it comes to publicly traded companies, their financial accounting standards are overseen by generally accepted accounting principles (GAAP). It’s one way to provide a standardized means to communicate the business’s monetary details to potential and current shareholders, lenders, government oversight and tax enforcement agencies.

Balance Sheet

As the U.S. Securities and Exchange Commission (SEC) explains, the balance sheet is a financial statement that informs readers about a business’s assets, financial obligations and shareholders’ equity. It’s how a business documents its asset valuation, its financial obligations and cash holdings. It provides owners, lending institutions and investors a way to analyze a business. The current ratio shows the ratio of current assets to current liabilities. This is a way to evaluate a business’ ability to manage financial obligations over the next year. Shareholders’ equity represents how much cash would remain if the business satisfied all creditors and all assets were liquidated; whatever remains would be the property of the shareholders.

Income Statement

Released once a month, every quarter or once per year, an income statement reports revenue, expenses, and net earnings or losses of a company for a given period. A company’s net revenue is calculated by subtracting allowances for uncollectable accounts, discounts, etc. from a business’s gross sales or revenues. From there, subtract the cost of sales, or how much the lot of products or services cost to make for the accounting period, from the net revenues figure. This results in gross profit or gross margin. Depreciation, along with amortization, or the cost of machinery and equipment losing life over time, is subtracted from the gross profit figure.

From there, operating expenses, which aren’t directly attributable to product or service production but are running day-to-day operations, are deducted from the resulting gross profit figure. This number is now called income from operations or operating profit before interest and income expense. Depending on the number, the interest income or interest expense is either added or subtracted from operating profits to arrive at the operating profit before income tax. Finally, income tax is deducted, resulting in net profit (net income or net earnings) or net losses. For publicly traded companies, it gives investors insight as to how much the company is making per share, so-called “earnings per share” (EPS).

Statement of Cash Flow

Per the SEC, a statement of cash flow features three sections that detail sources and utilization of the business’ operating, financing and investing cash flows. It paints a picture of inflows and outflows of the business’s cash levels. At the end of the day, it helps anyone interested in the company’s financials, especially potential and current investors, see the latest status and trends of cash flow.

One way to calculate cash flow, according to the SEC, is to look at a company’s free cash flow (FCF). This is calculated as follows:

Free Cash Flow = Operating Cash Flow – Capital Expenditures

Free Cash Flow = $50 million – $20 million = $30 million

This information is helpful because free cash flow can help determine a company’s financial health, how well (or not) the business model is performing, and its overall likelihood of success moving forward. Additionally, understanding the difference in accounting methods is another helpful piece of financial accounting analysis.

Accrual Method vs. Cash Method

Accrual Method

When it comes to the accrual method, according to the Congressional Research Service, when a business is paid for services or products to be rendered in the future, the payment is permitted to be recognized as revenue only when the product or service has been rendered. When it comes to accounting for expenses that are presumably deductible, under the accrual method, the expense can be recorded when it’s experienced by the business, not when payment has been made to the utility, raw material supplier, etc.

Cash Method

If a consultant gets payment immediately but isn’t expected to do said job until the following month, this approach requires revenue to be recognized when the cash has been received. Similarly, when expenses are paid is when expenses are recorded.

Considerations

For any business that handles inventory or sells to customers on credit, accrual accounting is required by the Internal Revenue Service. Similarly, for companies with average gross receipts of revenues greater than $25 million for the past 36 months, the IRS mandates accrual accounting. For companies with average gross receipt of revenues of less than $25 million, depending on the exact circumstances of the company’s business nature, cash or accrual may be used.

Financial accounting provides investors, business owners, and those providing businesses with legal and accountability a way to monitor performance and compliance.

Sources

IRS, IRS, IRS, FAS, SEC, SEC

Recent Trends in Long Term Care Insurance

Long Term Care InsuranceLong term care (LTC) is associated with the elderly for good reason. Over the past 50 years, life expectancy has increased significantly and is therefore something all families should be prepared to address. Even though we may live to a ripe old age, that doesn’t mean we will be healthy or able to live independently. Most people develop one or more chronic conditions that require living assistance – and many live with that ailment for years. Conditions such as arthritis, joint and muscle deterioration, or back pain often lead to chronic disability, making it difficult to impossible to take care of your own physical and lifestyle needs. Among even healthy seniors, about half of people age 80 and older experience some form of dementia or cognitive impairment.

Most LTC insurance (LTCi) contracts require that the policyowner no longer be able to perform at least two of the basic activities of daily living (ADL), which including dressing, bathing, toileting, feeding, and moving without assistance. However, before getting to that stage, many people may live for years needing help with domestic ADLs, such as preparing meals, paying bills, shopping, attending appointments, etc.

New Criteria for LTC Insurance

An unfortunate influence of the pandemic is that some LTC insurance carriers now require an in-person medical exam as part of the application process. In the past, underwriting generally involved a telephone interview, a completed questionnaire and medical records review. These days, in addition to an exam, issuers have increased the number of pre-existing conditions that are excluded from coverage. Furthermore, insurers are declining more applications for medical reasons. In fact, there is preliminary data that suggests more LTCi applications are declined or higher premiums charged in geographical areas where populations have persistently higher rates of serious COVID-19 infections. Not surprisingly, these areas are generally correlated with lower vaccine rates.

New Policy Options

Even before the pandemic, LTCi sales were on the decline and many insurers exited the market. This is because, with longer life expectancies, carriers increased premiums to cover the financial risk. This priced many policies out of range for most households. In recent years, the life insurance industry has found a strong market in sales of hybrid policies, which guarantee benefits one way or another. For example, a contract might include a rider that allows the policyowner to use the future death benefit in the present to pay for LTC expenses while she is still alive. If she doesn’t need the money, her beneficiaries will receive the value when she dies. Another benefit of hybrid policies that they guarantee premiums will not increase. In many cases, a policy can be purchased with a single lump sum.

New Focus for LTC: Live at Home

Apart from exploring new ways to pay for long-term care, there is political interest in finding ways to provide LTC more efficiently than in the past. For perspective, consider that the current U.S. system of placing Medicaid recipients into nursing home facilities proved to be one of the most vulnerable components of the pandemic. As of February 2021, more than 170,000 residents in long-term care facilities had died due to the coronavirus.

Various public agencies and non-government organizations (NGOs) are looking at new paradigms for caregiving as an alternative to high-volume residencies in order to minimize the risk of disease contagion. Some recent proposals include the following:

  • Enhance our current public programs that support independent living (e.g., Original Medicare, Medicare Advantage (MA) plans and Special Needs Plans (SNPs) with integrated benefits such as wellness care, behavioral healthcare, case management, home-delivered meals, transportation and adult day services.
  • Allow Medicaid’s long-term services and supports (LTSS) programs to reimburse long-term care expenses at home and for community-based services.
  • Expand efforts already originated in a handful of states (e.g., Illinois, Michigan, Minnesota, Washington) for state-sponsored, long-term care insurance plans.
  • Consider building on state initiatives such as California’s Master Plan for Aging, which includes plans to:
    • Create community housing solutions that that are age-, disability- and dementia-friendly, as well as climate- and disaster-prepared.
    • Improve quality of life for the elderly and disabled by presenting opportunities for work, volunteering, engagement and leadership regardless of age or disability. The purpose of this initiative is to reduce isolation, discrimination, abuse, neglect and exploitation.
    • Generate up to1 million highly-qualified, well-paid caregiving jobs.
    • Improve financial security for the elderly population by making long-term care affordable.
  • Reimagine nursing homes using continuum of care housing models designed for 8 to 10 residents with integrated staffing.

The current trend in the caregiving industry is to help seniors be able to live at home for as long as possible. In many cases this increases the burden on families. Since some people have to leave the workforce to care for family members, this hampers economic growth and tax revenues that could be used to fund better options. While LTC insurance remains expensive, it’s important that potential buyers are aware that most policies pay out benefits regardless of where care is bestowed, including nursing homes, assisted living facilities, the insured’s home or even if the insured has moved to a family member’s home.

How to Host Awesome Holiday Office Parties

How to Host Awesome Holiday Office PartiesFall is here and so are many of the holidays we love. Whether it’s Halloween, Thanksgiving or December holidays, here are some fail-safe things you can do to make sure everyone shows up and has a good time.

Throw a Potluck

One of the easiest ways to lure people away from their desks is – you guessed it – food. Create a sign-up sheet with different categories to make sure you have enough savory and sweet dishes, and provide options for those with dietary restrictions. If you’re the organizer, you might supply the drinks and utensils, maybe even some appetizers or snacks. Depending on the holiday, you might also suggest a theme. If it’s Halloween, you could ask folks to bring their spookiest fare.

Have a Raffle

This is yet another way to get people out of their offices. Everyone who shows up gets a ticket and on the back they’ll sign their name. At different times during the party, have a drawing. Maybe leave the big prize to the end. You could even stipulate that people must be present to win. Some of the prizes you could offer are: gift cards, smart watches, paid time off (PTO) or tickets to an event (a sporting event, a concert, etc.). A weekend at a local hotel (think staycation) or airline tickets are also attractive options. If resources allow, the sky’s the limit.

Designate Secret Santas

During December, this is always a big hit. Employees draw random names and get paired up with someone. The Secret Santa is given a wish list to choose from to give to their giftee. A smart idea is to set a monetary limit, such as gifts for under $25. After opening the present, the giftee has to guess who gave them the gift.

Set Up Games

Think giant Jenga. Pin the carrot nose on the snowman. Cornhole. These can be scheduled or ongoing. And best of all, it’s easy and uncomplicated. Employees can come and go as they wish. A little competition while everyone is noshing is a surefire way to foster employee bonding.

Host a White Elephant Gift Exchange

This is another classic. Everyone brings a wrapped gift and then you draw numbers. People sit in a circle with the presents in the middle, select their gifts in numerical order and unwrap them for all to see. But here’s the fun part: You can steal a gift that someone before you has unwrapped, which causes that person to either select a gift from the pile or steal from someone else. After three steals, the gift is frozen with whoever has it.

Volunteer Together

Working side by side with your colleagues for a purpose greater than yourself always cultivates a sense of community. For example, you could print off blank cards with your company logo on them, then ask employees to send a note of thanks to deployed military members. Another thing you could do with the cards is send a word of encouragement to those who live at places like The Salvation Army. The holidays can bring up lots of emotions, and sending positive messages to others is always a reward in and of itself. After all, when you give, you receive.

If you try one or all of these ideas, taking a break from the grind and enjoying a little non-work fun is not just necessary, it’s critical. When employees can cut loose, as well as feel appreciated and cared for, it’s highly likely you’ll have a happier, healthier workplace.

Sources

https://www.indeed.com/career-advice/career-development/office-holiday-party

Increase In Deepfake Attacks and How Enterprises Can Prepare

Deepfake AttacksDeepfake technology utilizes machine learning and artificial intelligence (AI) to manipulate or create synthetic audio, video and images that appear authentic. Deepfakes are commonly featured in entertainment and politics to spread false information and propaganda. For instance, deepfake has been used to show a celebrity or leader saying something that they didn’t, and this creates fake news.

Unfortunately, in deepfakes, cybercriminals have found a new tool for cyberattacks. Cybercriminals are now using deepfakes to pose a variety of enterprise risks.

How Cybercriminals Are Using Deepfakes

Deepfake technology is now used to create scams, hoaxes and false claims that undermine and destabilize organizations. For instance, a manipulated video might show a senior executive associated with fake news, such as admitting to a financial crime or spreading misinformation about a company’s products. Such corporate sabotage costs a lot of time and money to disprove and can impact a business’s reputation.

Another way businesses can be negatively impacted is through social engineering attacks such as phishing, which relies on impersonation to compromise an email. Similarly, social engineering using deepfakes can feature voice or video impersonations. A good example of such an impersonation was reported in The Wall Street Journal, in which fraudsters used AI to mimic a CEO’s voice. This incident happened in March 2019, when criminals impersonated a chief executive’s voice to direct a payment of $243,000.

Cybercriminals are able to execute social engineering attacks by accessing readily available information online. They can research a business, employees and executives. The criminal will even use an actual event picked from social media – for instance, a financial director who is just returned to work from a holiday – to sound more legitimate.

This emerging security threat is also made possible by the development of video editing software that can swap faces and alter facial expressions. Such developments have enabled deepfakes to fool biometric checks (like facial recognition) to verify user identities.

The deepfake cybersecurity threat has become such a concern that the Federal Bureau of Investigation (FBI) has issued a Private Industry Notification (PIN) cautioning companies of the possible use of fake content in a newly defined cyberattack vector referred to as Business Identity Compromise (BIC).

How to be Prepared and Protect Against Deepfakes

Deepfake videos and images can be recognized by checking for unnatural body shape, lack of blinking in videos, unnatural facial expressions, abnormal skin color, bad lip-syncing, odd lighting, awkward head and body positioning, etc. However, cybercriminals keep evolving and creating more convincing deepfakes.

Other measures introduced to combat deepfakes include creating solutions that detect deepfakes. There also was an introduction of deepfake legislation in the National Defense Authorization Act (NDAA) in December 2019.

Unfortunately, this has not been enough, and enterprises have the task of helping reduce the impact of these attacks. The following measures can help:

  1. Use anti-fake technologies
    Businesses should explore automated technologies that help identify deepfake attacks. They should also consider watermarking images and videos.
  2. Enforce robust security protocols
    Implement security protocols to help avoid deepfakes, such as automatic checks for any procedure involving payments. For instance, putting systems that allow verification through other mediums.
  3. Develop new security standards
    As security threats keep evolving, so should security standards within a company. For instance, introduce new security standards involving phone and video calls.
  4. Training and awareness
    Enterprises should enforce regular training and raise awareness among employees, management, and shareholders on the dangers of deepfakes to businesses. When all involved parties are trained to identify deepfake social engineering efforts, this will help reduce the chances of falling victim.
  5. Keep user data private
    Deepfake attackers use the information found in public domains such as social media. Although not a failsafe procedure, company profiles can be made private. Users also should avoid adding or connecting with strangers they don’t know and posting too much personal information online.
  6. Disinformation response policy
    Some deepfake incidents are out of control for an enterprise, such as fake videos purporting to be from top management. However, establishing a disinformation response plan will help in cases of a reputation crisis. This should include monitoring and curating all multimedia output – which will help present original content to the public as authentic content.

Conclusion

Deepfake is an emerging cybersecurity concern that requires enterprises to be aware of its potential threats and stay prepared. Although it might be possible to identify a poorly generated deepfake with the naked eye, the technology continues to advance. In response, countermeasures must keep pace.

Shoring up Protections for Sexually Abused Children, the Mentally Ill in Crises, and a Benefit Increase for Disabled Veterans

Shoring up Protections for Sexually Abused Children, the Mentally Ill in Crises, and a Benefit Increase for Disabled VeteransEliminating Limits to Justice for Child Sex Abuse Victims Act of 2022 (S 3103) – Introduced by Sen. Richard Durbin (D-IL) on Oct. 28, 2021, this Act eliminates the statute of limitations for civil lawsuits by anyone who, as a minor, was a victim of human trafficking or a federal sex crime. The bill passed in the Senate on March 2, in the House on Sept. 13, and was signed into law on Sept. 16 by President Biden.

Law Enforcement De-Escalation Training Act of 2022 (S 4003) – This bill would authorize training for de-escalation and alternatives to the use of force when law enforcement officers are called to a scene involving mental and behavioral health and suicidal crises. The Act was introduced by Sen. John Cornyn (R-TX) on April 5. It passed in the Senate on Aug. 1 and is currently under consideration in the House.

National Aviation Preparedness Plan Act of 2022 (HR 884) – This legislation directs the Department of Transportation (DOT), in consultation with the aviation industry and labor stakeholders such as air carriers, to develop a national aviation preparedness plan for future outbreaks of communicable diseases. The plan must include provisions for frontline, at-risk workers to be equipped with the appropriate personal protective equipment (PPE) to reduce exposure and spread of the disease. The bill was introduced by Rep. Rick Larson (D-WA) on Feb. 5, 2021. It was passed in the House on Sept.14and has moved to the Senate.

Veterans’ Compensation Cost-of-Living Adjustment Act of 2022 (HR 7846) – This legislation was introduced by Rep. Elaine Luria (D-VA) on May 19. It proposes a cost-of-living increase beginning Dec. 1 for the compensation of veterans with service-connected disabilities as well as dependency and indemnity compensation for the survivors of certain disabled veterans. The bill passed in the House on Sept. 14 and is currently under consideration in the Senate.

Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2022 (HR 3962) – Introduced by Rep. Madeleine Dean (D-PA) on June 17, 2021, this bill would permit notaries public to perform electronic notarizations and remote notarizations for matters pertaining to interstate commerce. The Act specifies that minimum standards be established, and that all Federal courts be required to recognize notarizations performed by a notarial officer of any state. This bipartisan bill passed in the House on July 27 and has a very high chance of passing in the Senate.

Jenna Quinn Law (S 734) – On March 11, 2021, Sen. John Cornyn (R-TX), re-introduced this bill from an earlier version he proposed in 2019. The legislation would amend the Child Abuse Prevention and Treatment Act to authorize grants for training and education to teachers (as well as other school personnel, students and the community)for sexual abuse awareness and prevention programs among primary and secondary school students. The bill passed unanimously in the Senate on Aug. 3 and is awaiting further action by the House.

Should You Upgrade Your Homeowners Insurance?

Should I Upgrade Your Homeowners Insurance?During the first year of the pandemic, many homeowners spent their down time upgrading their homes. The year 2020 alone experienced at 3 percent uptick in spending on home improvements – to the tune of nearly $420 billion nationwide. This included modifications for remote work, online schooling and leisure activities at home.

Between remodeling, high inflation and today’s elevated real estate prices, it’s important to review your homeowner’s insurance policy to ensure it’s up-to-date. Does it include enough coverage for recent upgrades to your home? Does it carry an inflation factor to ensure coverage is on par with more expensive building material costs and labor increases? Do you have coverage for ancillary factors, such as the cost of meeting local building ordinances, or flood insurance for today’s extreme weather events?

Replacement vs. Actual Value

One term to check on your policy’s declaration page is whether your coverage is determined by replacement cost or actual cash value. Replacement cost will pay for repairs to your home or replace your personal property (e.g., laptop, television) up to coverage limits, regardless of its current value. In other words, the policy will pay for a new computer even if your old one was 3 years old.

Actual cash value refers to a cash payout equal to the current value of your property. In other words, if your computer was 3 years old, you will receive the cash value of a 3-year-old computer – which will not likely cover the cost of a new replacement.

Guaranteed Replacement

In lieu of upgrading your home’s cost coverage each year, you might have the option to pay for guaranteed replacement, which is an extra fee that ensures the policy will cover the entire cost to rebuild your home. Extended replacement cost coverage pays out a certain percentage above your policy’s stated dwelling coverage limit if the cost to rebuild is higher than the face amount. For example, a policy with $200,000 coverage and 25 percent extended replacement coverage will pay up to $250,000 to rebuild your home.

Ordinance Coverage

Homeowners who live in older homes should consider adding ordinance coverage if it is not standard under your policy. Ordinance coverage pays for the cost to meet current building codes should you need to rebuild. These fees can be substantial and would have to be paid out-of-pocket if you don’t have this form of coverage. Note, too, that although guaranteed replacement cost coverage might offer a higher payout, that is only for the material and labor costs to rebuild – not local ordinance fees, licenses or inspections.

Inflation Impact

As you review your current policy, note that the section labeled Coverage A represents the amount available to rebuild your home. It generally rises by 2 percent to 3 percent each year for basic cost-of-living increases. However, it is worth noting that building materials, such as lumber and steel, increased by 19 percent in 2021, and in June the general inflation rate increased to 9.1 percent, its highest level in more than 40 years.

Because home building costs, the inflation rate and the increasing number of weather events have plagued the home insurance industry, policy premiums are starting to increase at a higher rate each year than in the past. In additional to higher costs due to supply chain disruptions and inflation, the home building industry is hampered by a lack of qualified workers – and experienced workers are demanding higher pay. This is yet another component that is factored into calculating insurance premiums. Basically, anything that would lead to a higher cost to repair your home will result in higher rates.

Insurance companies calculate your policy premiums by multiplying your home’s replacement rate with your home’s current value. Therefore, a combination of higher building costs and higher real estate values have contributed to higher insurance premiums. Some states have set an annual percentage cap on how much insurance companies can raise homeowner rates each year. However, given the increasing number of extreme weather events (e.g., storm surge, wildfires) in recent years, state legislators also have increased those rate caps so that insurers have the latitude to cover excess payouts. Note that rate increases vary by geographical area, based on local weather activity, labor costs and building supplies.

Some insurance policies offer an inflation guard, which automatically increases coverage limits to match inflation rates when the policy is renewed.

Flood Damage

Be aware that homeowners insurance does not cover flood damage. Mortgage lenders require homes located in government-designated Special Flood Hazard Areas (SFHA) to purchase a separate flood insurance policy. However, we have seen inland and even metropolitan areas that are not located in flood zones be devastated by the effects of storm surge following a hurricane. Homeowners who live in these higher-risk areas should consider purchasing a separate flood insurance policy as well. 

Top Side Hustles

Top Side HustlesIn our current economy, or anytime actually, it can’t hurt to have a side hustle to bring in extra cash. Some of these options can be quite lucrative, but like everything, it takes a little work to create a steady income stream. However, with a little pre-planning, you can do it. Let’s take a look.

Become a Tutor

Are you a math whiz? A wordsmith? History nut? Whatever your specialty, you can earn between $10 and $75 an hour. You might vary your price based on whether you’re tutoring high school, college or adult education classes. You can conduct your sessions online or in-person –totally up to you and your comfort level. All you have to do is create a lesson plan, then spread the word on social media, contact your local high schools and universities, or tack a notice near a central location such as a local coffee shop. When you’re sharing your knowledge and helping others, it might not feel like work at all.

Deliver Groceries with Instacart

If you haven’t heard of this, you might have seen people in grocery stores with their carts stuffed with brown paper bags full of items, list in hand – these are most likely Instacart workers. In sum, this gig is a same-day grocery delivery app. You shop for other folks; you don’t have to pay out-of-pocket when you’re at the store; and you can start earning money the very first week. Oh, and you get tips. According to ridester.com, you can make anywhere from $200 to $1,000 a week. Pretty easy and cool, right?

Rent an Extra Room Through Airbnb

While this might require some prep like buying extra towels and toiletries, as well as communicating with customers, you can make a lot in the long run. It might take a couple of months to get up and running, but you can bring in around 7 percent to 12 percent of your property value per year.

Help with Finances

If you have a background in accounting or finances, you might start up a business doing someone’s books, taxes or other services that have to do with money and/or budgeting. You can make from $20 to $100 an hour. Be sure to check with your city and state to find out what licenses and certifications you need.

Walk Dogs

Yes, dog walking can bring in more than you think. And you’ve probably seen these hearty souls on the sidewalks, sometimes with more than one furry friend in tow. If you live in a big city, there’s ample opportunity to make this work: you can make between $10 and $100 per day. And this is just a ballpark estimate. Plus, you’ll get your steps in. It’s healthy both fiscally and physically.

Write Resumes and Cover Letters

With all the job seekers out there, you could make a good chunk of change doing this. And you don’t necessarily need to be a writer. If you have a background in HR, recruitment or you’ve worked as a hiring manager, you’ll be ready to go. Hesitant about all that punctuation? One word: grammarly.com. This app will help you navigate all those writing questions you might have that inevitably come up when you’re composing. The average you might earn is somewhere in the neighborhood of $500 or more.

One Thing to Note

If you make more than $600, you must report it to the IRS. If you see that your side hustle is booming, if you start making thousands or tens of thousands of dollars a year, you might want to start a business. You could enjoy additional tax write-off opportunities so you can keep more of what you earn.

So start exploring, hang those shingles and watch the extra dough come rolling in.

Sources

https://careersidekick.com/side-hustle-ideas/

https://time.com/nextadvisor/financial-independence/best-side-hustles/

https://www.ridester.com/how-much-can-you-make-a-week-with-instacart/#:~:text=As%20an%20Instacart%20shopper%2C%20you,orders%20will%20earn%20more%20money.