Beating COVID-19: Tips for Your Insurance, Finances, and Business - May 19, 2020

May 19, 2020
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News. Insights. Analysis. Inspiration.

 

“Magic Johnson’s Life Insurance Company Reportedly Funding $100 Million In Small Business Loans"

From Forbes:

* Former NBA all-star Magic Johnson told the Wall Street Journal that his life insurance company will provide $100 million in funding for small women and minority owned businesses as part of the Small Business Administration’s embattled Paycheck Protection Program.

 

"What The Wealthy Are Doing With Their Estate Planning During The Covid-19 Crisis"

From Wealth Advisor:

* ( GRATs have long been a useful tool for the wealthy and they are even more powerful in today’s environment. It is important to understand why the right time is now. “Two reasons: First, asset values are depressed due to COVID-19,” says Christopher J. Burns, Estate Planning Partner at Henson Efron in Minneapolis, Minnesota.  “Second, the IRS hurdle rate is at a historic low. If, after we are past the pandemic, rates of return come back at even average rates, a GRAT would result in the transfer of a great deal of wealth to its intended beneficiaries.”For a wealthy individual or family considering this technique, it is important to understand the technical aspects of a GRAT as well as the potential risks. 

 

"WTTC Unveils “Safe Travels” Protocols To Restart Travel And Tourism"

From Travel Central:

* The World Travel & Tourism Council (WTTC) has unveiled a range of new protocols it believes will lead to the restarting of the travel and tourism sector worldwide. The measures are intended to rebuild confidence among consumers, so they can travel safely once the restrictions are lifted. The new Safe Travels protocols will provide consistency to destinations and countries, as well as guidance to travel providers, operators and travelers about the new approach to health and hygiene in the post-COVID-19 world. The protocols are based on medical evidence and guidelines from the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), in addition to consultation with its members, as well as industry associations like Airports Council International (ACI), Cruise Lines International Association (CLIA) and International Air Transport Association (IATA). These will apply across the main industries within travel and tourism including hospitality, aviation, airports, cruise operators, retail, transportation, MICE and tour operators, among others. 

 

"Want To Become A Better Investor? Look To The Wisdom Hierarchy"

From Wealth Advisor:

* Given the limited amount of information our brains can process, we need to prioritize quality over quantity. It is easy to be wowed by investment pundits who can cite all sorts of facts and figures about the stock market and the economy. So, how do we determine which of it has value? 

* To answer that question, I look to the wisdom hierarchy, a concept developed by organizational theorist Russell Ackoff in 1989. In this model, Ackoff divides the types of things we hear and learn every day into four categories: data, information, knowledge, and wisdom. Then he ranks them in order of usefulness and availability. As the shape of the pyramid below illustrates, wisdom is the most useful and rarest kind of input, followed by knowledge, information, and data – the least helpful and most plentiful.

  

"Federal and State Governments Have Less Control Over Shutdowns Than They Think"

From Reason:

* But the weekslong shutdowns that some parts of the country continue to endure were never enforceable from the White House or from any state capitol. They always depended on voluntary compliance from residents. Indeed, most state-level stay-at-home orders came days or even weeks after most Americans were already staying home, as research from FiveThirtyEightpretty conclusively shows.

* That compliance is now fraying in many places. And that's why governments cannot fully control the economic reopening. It's not a few dozen protesters who will end the quarantines; it's the millions of other people who have simply started going about their lives again. Officials need to recognize the limits of their authority. Federal, state, and county authorities can provide guidelines to individuals and businesses about the best ways to protect public health. They can, for example, encourage people to wear face masks in public. But they must also recognize that enforcing those rules with the threat of arrest is counterproductive. Similarly, a prohibition on large-scale public gatherings is much more enforceable than trying to control the behavior of every business in the state.

 

Here's a short video from Steve on how you can purchase insurance in these changing times....Watch Here