Category: Financial Planning

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Prepare your finances for a “rainy day” — top banking tips for hurricane season

by David Druey, Florida Regional President, Centennial Bank

Floridians have seen their fair share of hurricanes and know storms can turn on a dime. With the National Oceanic and Atmospheric Administration’s prediction of 13 to 20 named storms this hurricane season, it is crucial for locals to prepare their finances in the event of a power outage, water damage, or evacuations.

According to FEMA’s most recent annual hurricane preparedness survey, only 48 percent of Americans have emergency plans for disasters. In fact, most Americans do not factor finances into their evacuation and safety preparations.

Tropical Storm/Hurricane Elsa’s recent landfall in Florida serves as a reminder that there is no better time than now to get your “financial house” in order. We recommend the following hurricane banking tips:

  • Cash is king. Withdraw a week’s worth of living expenses in the event of fallen power lines and/or trees; it is important to have extra cash on hand to help with cleanup. Most banks offer drive-through ATMs and interactive teller machines that can be accessed when bank lobbies are closed.
  • Have your bank on speed dial. Familiarize yourself with your local branch’s special services and hurricane evacuation plan in the event of a storm.
  • 24/7 access. Download your bank’s mobile app and ensure that all accounts are set up digitally so you can access funds from anywhere in the country. Do not forget to save your mobile banking username and password in a safe place. 
  • Get your camera ready. Scan and/or photograph your most important personal and banking documents (i.e., IDs, titles, deeds, birth certificates, Social Security cards). It is always a good idea to keep important documents in a water-safe area or sealed bag in the event of a flood.
  • Keep an “eye” out for scams. After storms, banking scams are unfortunately a common occurrence. Be on the alert for suspicious phone calls, mail, texts, emails, and more from companies or individuals pretending to be your bank.

When in doubt, get in touch with your local banker to ensure your account information is up to date and to learn more about the services they offer in the event of an emergency.

Making accommodations to have extra cash on hand, reaching out to your local branch, taking photos of important documents, and double-checking your access to your bank’s mobile app does not take more than a few hours. These simple tips can save you time and money in the long run.

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The co$t of owning a horse

“A pony is a childhood dream; a horse is an adult treasure.”

—Rebecca Carroll

Many people dream of one day owning a horse. The allure is even greater in a place like Parkland, long known for its equestrian community. But before diving in headfirst, there are a number of factors to consider, especially given that the average lifespan of a horse hovers around 30 years, making them long-term companions. 

“A pony is a childhood dream; a horse is an adult treasure.” —Rebecca Carroll Many people dream of one day owning a horse. The allure is even greater in a place like Parkland, long known for its equestrian community. But before diving in headfirst, there are a number of factors to consider, especially given that the average lifespan of a horse hovers around 30 years, making them long-term companions. Aside from the initial purchase investment, horses require costly ongoing care. Tack and Grooming According to Ellie Scofield, owner of Spectrum Saddle Shop in Coconut Creek, essential grooming supplies average $50, and tack (saddle, bridle, girth, and pad) can range from about $350 for the essentials to thousands for show-level equipment. Boarding If you don’t have property equipped for horses, then you’ll need to board yours at a nearby stable. The following facilities offer monthly rates that include a private stall, bedding, feed (both hay and grain), stall cleaning, water, and turnout. Millpond Stables, Coconut Creek — $1,000 monthly Wattland II, Coconut Creek — $900 monthly or $300 monthly for stall only Jump On In INC, Parkland — $850 monthly Galloways Farm, Parkland — call for a customized quote. Lessons To refine your horsemanship skills, you’ll want to continue training in the discipline of your choosing. Millpond Stables teaches English and Western at a rate of $75 per hour. At Wattland II, lessons are $60 per hour and include instruction on grooming and tacking, a beneficial feature for new riders/owners. Jump On In INC teaches Hunters, Jumpers, Equitation, and Western. All lessons include basic horsemanship skills and are $65 per hour. At Galloways Farm, dressage lessons run from $65 to $80. Equine Vet and Farrier Your horse will require annual vaccinations, dental care, deworming, and hoof trimming/shoeing. Treatment for medical emergencies can cost thousands, though there are insurance plans available to help offset some of these costs. Even if you can afford the cost of upkeep, horses also require a significant time commitment. Boarding rates do not include grooming and exercising, which you’ll need to do regularly, not only to maintain your horse’s health and happiness, but to develop a bond as well. For those unsure if they’re ready for horse ownership, there are alternate options available to see if ownership is right for you. Many barns have leasing opportunities, and horse rescue ranches offer sponsorship programs and riding privileges. [Put in sidebar box?] For those itching to jump in, here’s some takeaway advice from the experts: “Make sure you get help. Watch and learn. Horses are very, very delicate.” 
—Dawn Watt, owner of Wattland II “You don’t become a rider in a day. Horsemanship takes time to learn. This is the only sport in the world where you are dealing with something that has its own mind.” 
—Amanda Myman, owner of Jump On In INC “Listen to your veterinarian, trusted trainer, and professionals, as well as good, experienced friends. Having horses is hard work, expensive, and one of the best experiences in a lifetime for both kids and adults!” 
—Ellie Scofield, owner of Galloways Farm

Aside from the initial purchase investment, horses require costly ongoing care. 

Tack and Grooming 

According to Ellie Scofield, owner of Spectrum Saddle Shop in Coconut Creek, essential grooming supplies average $50, and tack (saddle, bridle, girth, and pad) can range from about $350 for the essentials to thousands for show-level equipment. 

Boarding 

If you don’t have property equipped for horses, then you’ll need to board yours at a nearby stable. The following facilities offer monthly rates that include a private stall, bedding, feed (both hay and grain), stall cleaning, water, and turnout. 

  • Millpond Stables, Coconut Creek — $1,000 monthly 
  • Wattland II, Coconut Creek — $900 monthly or $300 monthly for stall only 
  • Jump On In INC, Parkland — $850 monthly 
  • Galloways Farm, Parkland — call for a customized quote. 

Lessons 

To refine your horsemanship skills, you’ll want to continue training in the discipline of your choosing. Millpond Stables teaches English and Western at a rate of $75 per hour. 

At Wattland II, lessons are $60 per hour and include instruction on grooming and tacking, a beneficial feature for new riders/owners.

Jump On In INC teaches Hunters, Jumpers, Equitation, and Western. All lessons include basic horsemanship skills and are $65 per hour. At Galloways Farm, dressage lessons run from $65 to $80. 

Equine Vet and Farrier 

Your horse will require annual vaccinations, dental care, deworming, and hoof trimming/shoeing. Treatment for medical emergencies can cost thousands, though there are insurance plans available to help offset some of these costs. 

Even if you can afford the cost of upkeep, horses also require a significant time commitment. Boarding rates do not include grooming and exercising, which you’ll need to do regularly, not only to maintain your horse’s health and happiness, but to develop a bond as well. 

For those unsure if they’re ready for horse ownership, there are alternate options available to see if ownership is right for you. Many barns have leasing opportunities, and horse rescue ranches offer sponsorship programs and riding privileges. 

For those itching to jump in, here’s some takeaway advice from the experts: 

  • “Make sure you get help. Watch and learn. Horses are very, very delicate.”
    —Dawn Watt, owner     of Wattland II
  • “You don’t become a rider in a day. Horsemanship takes time to learn. This is the only sport in the world where you are dealing with something that has its own mind.”
    —Amanda Myman,     owner of Jump On In INC 

  • “Listen to your veterinarian, trusted trainer, and professionals, as well as good, experienced friends. Having horses is hard work, expensive, and one of the best experiences in a lifetime for both kids and adults!”
    —Ellie Scofield, owner of Galloways Farm

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Wine Watch: Don’t judge a wine by its price

By Bennet Bodenstein

You don’t judge a book by its cover, nor do you judge a wine by its price. In over thirty years of writing about wine, I have sampled some monumental stinkers that sold for over $100 and some absolutely wonderful wines that were under $20.

As an example, I once tasted an Edna Valley Vineyards pinot noir that sold for under $15 that could only be described as ethereal, and a cabernet sauvignon with a price tag of $128 that I poured down the drain.

Keeping that in mind, I approach all wines by tasting them before paying attention to the price or the name of the producer. I recently had the pleasure of tasting some South American wines that, in my opinion, are well above the average.

Trivento 2019 Argentinian Reserve Malbec ($10.99). Please do not let this wine’s very affordable price tag scare you off , this is a showcase malbec that radiates all of the flavors and aromas that have made the variety so popular. This big, bold, and solid wine is very dark in color and displays the aromas of strawberry, plum, and red cherries with a hint of spice in the background. Cherries, plums, cinnamon, and coffee are the dominant flavors along with the added complexity provided by a hint of oak. This is truly a regal wine with the charm and bearing of a modern classic. It is ready to drink now or can be set down for as long as five years to soften, mellow, and take on the glow of a great classical wine. This wine will prove why malbec is becoming a favorite among many red wine drinkers.

Frontera Cabernet Sauvignon ($6.99). In the quality for your dollar category, this cabernet sauvignon from the Central Valley of Chile achieves the impossible; it is a very nice wine at an even nicer price. This deep ruby, medium bodied wine presents a clean and open aroma of spice, black currants, vanilla, and soft oak. There are no harsh tannins in this wine so it is ready to be enjoyed right now without any further aging. Another quality point is the finish, which is moderately long and very fruity. While the raised pinky connoisseur might scoff at this wine, my suggestion is “don’t knock it until you have tried it” and when you have tried it you will be very glad you did.

Frontera Cabernet Sauvignon/ Merlot ($6.99). The classical French Bordeaux blend of 85 percent cabernet sauvignon and 15 percent merlot is presented in its Chilean incarnation. This is not an attempt to pass off Chilean wine as a Bordeaux but rather an homage to the blend. The color of this wine is dark, very dark and the aroma reflects plum, cherry, red berries, and chocolate which carry over to the flavor and then on to a delightful finish. I found this wine to be very enjoyable and very easy to drink; however, I do have one complaint. Why can’t there be more wines this good and this affordable in today’s marketplace?

Frontera 2020 Sauvignon Blanc ($12.99). Hey, wait, a sauvignon blanc that sells for more than a cabernet sauvignon? Something here is topsy turvy or very special. It appears that the sauvignon blanc grapes were at a premium in Chile which resulted in a higher cost per bottle. Is it worth it? I must answer with a resounding “yes.” Most sauvignon blanc wines are flimsy little things that smell more of grass than the aroma of fruit. This wine’s full fruit aroma is presented right up front, exhibiting pear, peach, and citrus. These carry over to the flavor and then to the finish. Do not let this one slip past you either; it is, to say it in one word, gigantic.

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How COVID-19 Stimulus Payments will Affect Your 2020 Tax Return

Many taxpayers who received stimulus payments in 2020 wonder how it will be treated when the time comes to file their 2020 tax returns, whether they got the correct amount, or why they did not get it in the first place.

Economic Impact Payments or stimulus payments received in 2020 and early 2021 are not taxable income. Keep notices 1444-B you received regarding your stimulus payments with your 2020 tax records, you will need to provide them to your tax preparer. If you did not keep (or have lost) the notices, you will need to request an Account Transcript for 2020 either online through your IRS “Get Transcripts” account or via phone for mail delivery. It may take several weeks to get transcripts in the mail nowadays, however, your tax preparer can help you obtain transcripts much faster.

Anyone who did not receive stimulus payment(s) or their payment was not the correct amount due to reduced income in 2020, a change in marital filing status, or a change in the number of dependents – including those who are not normally required to file a federal tax return – will need to claim it as a recovery rebate credit on their 2020 federal income tax return. Remember, if you can be claimed as a dependent on someone’s return, you are not eligible for stimulus checks or rebate credit, even if you were not claimed as a dependent.

You may be eligible for a recovery rebate credit if you did not receive a second stimulus payment, and you and your spouse file jointly and only one spouse has a valid SSN. Such couples with a non-immigrant status spouse who has an ITIN or no tax ID, were not eligible for the first round of stimulus payments.

You do not need to complete information about the recovery rebate credit on your 2020 federal tax return if you received the maximum amount of benefits as follows:

  • $1,200 plus $500 for each qualifying child you had in 2020 for the first round and $600 for you and $600 for each qualifying child for the second round, or
  • $2,400 for joint filers in 2020 plus $500 for each qualifying child you had in 2020 for the first round and $1,200 plus $600 for each qualifying child for the second round.

     

    If you received a stimulus payment greater than the recovery rebate credit calculated on the 2020 return (due to increased income in 2020, for example), in most cases you still get to keep the original payment. The excess does not need to be repaid to the IRS. Exceptions include death of the taxpayer or a spouse before receipt of the payment, and nonresident alien status in 2020.

    If you did not receive stimulus payments and instead claim recovery rebate credit on your 2020 tax return, and owe money to the IRS, this credit will first offset your 2020 tax liability, and the remainder, if any, will be applied to your prior tax debt. You will not receive a refund, even though economic impact payments were protected from garnishment and federal and state offset programs.

    If you are not sure how to calculate a recovery rebate credit, find a professional tax preparer to help you out.

    Irina Bobrova is an Enrolled Agent who represents taxpayers before the IRS to resolve their IRS problems.

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COVID’S equity market rollercoaster

For those who are investing in the equity market, 2020 is not an average year. The dramatic drops being followed by the major indexes roaring back to highs, looks, and feels like a rollercoaster ride. For investors, the stomach-churning experience is not for the faint of heart.

We recently interviewed Paul A. Kavanagh regarding how best to navigate the challenging market. Paul has been an Edward Jones Financial Advisor in Coral Springs for the past 13 years and has over 30 years’ experience in Finance.

Stay Patient

“We can’t predict the market moves,” shared Paul, “Staying patient, disciplined, and focused on your long-term goals will
be critical.” Emotions may be a liability in investing in a volatile market. According to Paul, “By keeping your focus on the future, you’ll be less likely to react emotionally to the news of the day – and more likely to follow a long-term strategy that can work for you.”

Diversify

You have heard the saying, “don’t put all your eggs in one basket,” so you may need to diversify by spreading your eggs into multiple investment groups. You can do your own research, or work with a professional advisor who has access to all the tools and experience you will need. A financial advisor will, according to Paul, “…work with you to understand why you’re investing and your financial priorities. You’ll experience the convenience of working with one dedicated financial advisor and utilizing an established process to create personalized financial strategies, backed by advice, tools, and resources to help you reach your goals.”

Review Regularly

You should regularly review your investments. It helps to ensure your long term goals are on track and adjust to market realities. “In light of the recent performance of the stock market, this is an excellent time to review your investments and ensure that you’re on track to achieve your financial goals,” said Paul.

2020 has been a turbulent year, and with a national election coming up in November, there are many things that may perturb the market, such as policy announcements and uncertain economic forecasts due to the ongoing pandemic. Planning ahead to ensure your portfolio is doing what you want long- term is extremely important, so remember this great advice for long-term success. If you need help, don’t be afraid to talk with a professional advisor, they may be able to offer you tools and research that you are not aware of.

By Li Pan

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Podcast Episode #10 – Wealth Management 101 with Evan Wolk

Joining us for this episode to talk about wealth management is Evan Wolk (evan@wolkfinancial.net) .  Evan is the managing director of Wolk Financial Management Inc (www.wolkfinancial.net).  We discuss what is wealth manager, and how to navigate the rollercoaster market we have seen this year.

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