Protecting Your Small Business from Data Theft

Presented by Mark Phillips

Data breaches at high-profile companies have been in the news lately, but big businesses aren't the only ones at risk. Any company that collects and stores sensitive information—including credit card numbers, social security numbers, and general contact information—may be a target for hackers. In fact, in a survey conducted by the Ponemon Institute, more than half of small businesses reported falling victim to a data breach.

In the full article you will find a review of:

·         Sensible safeguards to take in your business, and 

·         Insurance options you may consider

My Son or a Professional Trustee Company (?)

I recently received an email from a client who had determined that, despite her wish to the contrary, neither her son nor her grandson would likely be able to competently perform as her contingent trustee for her estate plan.

This is typically a hard thing to admit and yet easier than the likely cost and difficulty of living with the “wrong” trustee in the last years of one’s life. Whether for us or someone we know of, this can be a prudent yet underutilized option. Please consider who you know that may be assuming a relative is their only choice when in fact it is not.

These Fees, do they start immediately or when I need them to perform as a second trustee?

The trust companies begin charging the fees only when they are performing their trustee duties.

They list doing things like Tax letters?  I have not needed one before? Charging extra fees for certain value of mutual funds, cash bearing accounts etc.  Some things sound like a duplication of what you do?

I do not perform any tax preparation tasks and as for investment management they would either perform the task or, in most of these cases, I would and their fees do not include investment management. No duplication or double paying for the same service in any case.

And what am I supposed to talk to my estate attorney about?  Should I ask him if he should be my second trustee?

I think it safe to universally advise against using any of your current professionals as a professional trustee unless they have a business and specific staff solely engaged in that enterprise. I have stayed out of it, despite other client requests, because of what I believe the talent commitment would be to that effort. Perhaps we will be there in the future. Perhaps you ask your estate attorney for a recommendation of a professional trust co. to use.

Thank you so much Mark.  Are all my beneficiary papers set up for my accounts that you manage? Roth IRA, Trust account?  I know I signed some but is everything ok?

I believe all is in order as you wish at this time. We did review all of your beneficiary designations late last year and will do so again later this year with you.

And of course we will be reviewing your beneficiaries and account titling annually if you are engaged with us as your financial planners and advisors.

Words of Wisdom from a few of the Wise…

Warren Buffett: Be greedy when others are fearful.

 "Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful."
  -Source: 2004 shareholder letter








Philip Fisher: Know the value of your investments.
 

“The stock market is filled with individuals who know the price of everything, but the value of nothing.”
 - Source: Investopedia









Wikimedia Commons


 
Barton Biggs: There are no relationships or equations that always work.

"Quantitatively based solutions and asset allocation equations invariably fail as they are designed to capture what would have worked in the previous cycle whereas the next one remains a riddle wrapped in an enigma."
  - Source: Barton Biggs via The Gartman Letter








 
John Templeton: This time is not different.

"The four most dangerous words in investing are 'This time it's different.'"
  -Source: Marketwatch










 
Ken Fisher: Keep history in mind.

"You can’t develop a portfolio strategy around endless possibilities. You wouldn’t even get out of bed if you considered everything that could possibly happen... you can use history as one tool for shaping reasonable probabilities. Then, you look at the world of economic, sentiment and political drivers to determine what’s most likely to happen—while always knowing you can be and will be wrong a lot."
  -Source: Markets Never Forget (But People Do)




 
Charles Ellis: Invest for the long run.

"The average long-term experience in investing is never surprising, but the short term experience is always surprising. We now know to focus not on rate of return, but on the informed management of risk"
  -Source: Winning The Loser's Game








YouTube


 
Thomas Rowe Price Jr.: Know who's running the business, and why.

“Every business is manmade. It is a result of individuals. It reflects the personalities and the business philosophy of the founders and those who have directed its affairs throughout its existence. If you want to have an understanding of any business, it is important to know the background of the people who started it and directed its past and the hopes and ambitions of those who are planning its future.”
  -Source: Valuewalk








 


Peter Lynch: Do your homework.



"Investing without research is like playing stud poker and never looking at the cards."
   - Source: One Up On Wall Street











 
John Neff: Do what's smart, not what's popular.

"It's not always easy to do what's not popular, but that's where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized."
   -Source: John Neff On Investing 

Bill Payment Made Easy(ier)!

One of our good clients enlightened us to the PayTrust service offered by Intuit and this does indeed look like it would help us to stay organized and in control more easily.

Their pitch…
For less than the cost of an average late fee, PayTrust is an investment that pays off.

• It manages your bills, so you don't have to

• Includes scanning of all paper bills (never file or keep a bill again)

• Includes 25 transactions, $0.65 for each additional transaction*

• No contracts - cancel any time

• No more wasting precious time

• Avoid late fees & keep a healthy credit score
 
We are not endorsing this however it certainly looks interesting and is supported by Intuit, a firm that has brought us many good and useful tools (Quicken, Mint, etc.) 

For the PayTrust site Click Here

Rental Car Insurance: Are You Covered?

Presented by Nick Bautista

For many people, summertime means vacation. If your trip involves renting a car, reviewing the various insurance options ahead of time can help you avoid spending more than you need to. Here are some key questions to ask before you arrive at the rental counter, plus tips for getting the most bang for your car-rental buck.

Are you already covered through your personal insurance?

According to a recent survey by the National Association of Insurance Commissioners, 62 percent of consumers don’t believe their personal auto insurance automatically covers rental cars. In most cases, however, your personal policy will extend to a rental car. Just be sure to call your carrier to confirm what your policy covers (e.g., damage, theft, liability).

Is insurance coverage through your credit card an option?

You may also get some form of rental car coverage through your credit card. American Express, Discover, MasterCard, and Visa all provide car rental insurance options to members for free, as long as you charge the rental to your card. If you choose to rely on insurance from your credit card, call your company first to find out exactly what kind of coverage it provides.

When using your card for rental car insurance, keep these pointers in mind:

•          Charge it. To get coverage, you’ll need to charge the whole rental fee to your credit card and decline any extra coverage the car rental company offers.
  
•          Choose the right vehicle. Trucks, off-road vehicles, and expensive, exotic, or antique cars generally aren’t covered. Other exceptions may apply, so be sure to check with your credit card company.
  
•          Be aware of time limits and other restrictions. Find out if there’s a cap on how long your credit card covers your rental car. Coverage may not be available in some countries, so check the company’s policy if you’re traveling abroad.

What kind of coverage does the rental company offer?

Another option is purchasing coverage through the car rental company. There are usually four main choices:

•          A damage waiver transfers financial responsibility from you to the car rental company in case of damage or theft.
  
•          Supplemental liability insurance protects you against claims that exceed your regular policy limits.
  
•          Personal effects coverage protects personal property that’s damaged or stolen from a rental car. (Your existing homeowners insurance policy may also cover these items.)
  
•          Personal accident insurance covers any injuries you or your passengers sustain. (Personal injury protection on your regular auto policy will also cover the rental.)

Finding a balance between the cost of coverage and what you get for that price point is key to evaluating your options.

Helpful tips to keep costs down

Here are some additional ways to save when renting a car:

•          Don’t always go for name brands. National car rental chains are well known and reliable, but independent agencies typically cost 15 to 30 percent less.
  
•          Track rates. Using vendors like Autoslash.com, you can make reservations with some of the major companies and the site will automatically check for better rates, rebooking you if a lower price becomes available.
  
•          Look for discounts. By searching online, you can usually find money-saving coupon codes. Car rental companies also offer discounts to members of frequent flier programs and other organizations, such as AAA and Costco.
  
•          Avoid the airport. Prices at car rental locations near an airport can be 30 percent higher due to extra fees.
  
•          Plan your trip around lower rates. Weekend prices are sometimes lower than business-day prices.
  
•          Prepay. Many car rental companies offer up to a 20-percent discount if you’re willing to prepay for your vehicle.

A smooth start to your vacation

Don’t wait until you’re at the rental counter to start considering your insurance options. Call your insurance and credit card companies to find out if you’re already covered or if you should purchase insurance through the car rental company.

A little preliminary research will help ensure a smooth start to your trip—and possibly free up some funds in your vacation budget. Safe travels!

Don’t Forget The Health Insurance Special Enrollment Period

Did you know with the end of open enrollment on March 31^st, you may still be eligible to sign up for Health Insurance through the special enrollment period?

With Obama recently citing 8 million sign ups under the new healthcare system, I’m sure not too many people missed out, but in case you did it doesn't mean you can’t sign up through one of the following qualifying events in your life:

• Getting Married
  
  
• Having a baby or adopting a child
  
  
• Permanently moving to a new area that has different health plan options. This includes moving to California from another state. This also applies to individuals who are released from jail or prison.
  
  
• You lose your health coverage. For example, you are no longer eligible for Medi-Cal, you lose health coverage through your job, or you have exhausted your COBRA continuation coverage. (Note: Not paying your COBRA premium does not qualify you for special enrollment.)
  
  
• Your income changes so much that you become newly eligible or ineligible for help paying for your insurance. For example, if you are already getting help paying for your insurance premium, and your income goes down, you may be able to get extra help.
  
  
• You applied for health coverage before March 31 and got a denial for Medi-Cal after March 31. If you were incorrectly denied Covered California or Medi-Cal coverage, you can also file an appeal.
  
  
• Your enrollment was wrong, due to the misconduct or misrepresentation of your health insurance company, Covered California or a non-Covered California entity (such as a Certified Enrollment Counselor).

Source Coveredca.com

You have 60 days from the time of one of the above events to sign up through the special enrollment period on the state or government websites.

Need help? Talk to us and we can help walk you through the process.

Who Should Be Afraid Of An Audit?

By Nick Bautista

I can’t help but wonder why there are so many articles about what to do so that you don’t get audited. So much so that it is laughable.

At the very core of being fearful of an audit are common misconceptions. There is a misconception that even though you are being honest with the reporting on the tax return something bad will happen. If you are scared of being audited then you have something to hide, plain and simple. If you don’t have anything to hide then have no fear.

Mistakes

The most basic reason someone gets audited is that things don’t match up. Meaning there was wrongly reported information within the IRS tax database. For instance if your employer reports he paid you $10,000 and you put he paid you $9,999 then that is a red flag. The IRS has checks and balances within their systems that tell the two numbers don’t match up even though they are only $1 off. The solution is to be more careful and if you do get a letter from the iRS find your mistake and have it corrected.

Odds

Your chances of getting a real, full blown audit are 1%. “Last year the IRS audited about 1 percent of those earning less than $200,000, and almost 4 percent of those earning more, according IRS data” (Turbotax).Enough said. Why are you wasting your time worrying about being in the 1%-4%?

Honesty

Stop taking chances. If you keep trying to get those office deductions or charity donations without receipts, then stop marking them down on your tax return. If you are scared of an audit don’t use them.
I hear the excuse of well we make a lot of money or we run our own business we are at a huge risk of being audited.

Hire a Professional

If you truly are still scared after all the above, then hire someone to do your taxes for you. Ask your friends for recommendations and consult with the tax professional yourself before making a concrete decision.

To reiterate, if you are honest have none of the audit triggers, or even if you do, keep receipts, proof of what you have reported and hire a professional there is nothing to fear. The IRS is a reasonable bunch, they just want the numbers to be right, Uncle Sam has to get paid and for the right amounts before he hands your hard earned money back to you.