Moving Past the COVID & Election Chaos - September 13, 2020

September 13, 2020
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Tips for Your Insurance, Finances, and Business 

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Today's Key Question:

Have you heard the latest news about how Hedge Fund managers are using the split dollar method of funding life insurance? 

See the article below from JD Supra.


"Children Return to School in the Age of COVID-19"

From National Law Review:

* This complicates issues for parents who are no longer married.  Many are wondering how they will navigate this shift to potentially e-learning, a return to in-person schooling, or a hybrid, especially if they and their ex don’t see eye to eye.  So, how are parents who are tasked with making these decisions in light of the “new normal” able to do so even when they don’t even get along? What do they do?

Consult Your Allocation Judgment (If You Have One!)

The first thing I always do when asked about this particular issue is I take a look at their parenting agreement or Allocation Judgment to see what the language says in regards to educational decision making.  Is this a joint decision where the parties have to mediate if they don’t agree? What does their agreement say about mediation?  I also weigh whether or not the return to school issue that is potentially dangerous to the minor child if it is not resolved quickly. Are there underlying health conditions that would make it dangerous for a minor child to return to school in person during the COVID-19 pandemic?  What about family members?


"Protecting independent opportunity for all Americans'

From Washington Examiner:

* But 79% of independent contractors prefer their existing arrangement to traditional employment, and the need for flexible work arrangements has only increased as a result of the coronavirus pandemic, as families struggle to balance competing priorities of earning income while children are stuck at home because of closed schools. 

In addition to the drivers who will lose their jobs, the communities that would suffer most from the suspension of service are those most in need of it. Low-income and suburban communities benefit disproportionately from rideshare services, but the companies would likely reduce their presence primarily in rural and suburban areas where demand is sparse. And one study of Lyft’s presence in Los Angeles showed that ridesharing disproportionately benefits low-income and minority neighborhoods where car ownership is rarer and where taxicabs often refuse to provide service. 

AB 5 has put at risk millions of California jobs and the services they provide, ranging fromridesharing to journalism to music to health care. At a time when people are most in need of flexibility and economic opportunity, California’s efforts to stifle flexible self-employment should serve as an important lesson to all Americans that government rules and regulations can do more harm than good and stand in the way of productive, mutually beneficial private-sector innovations.


"The True Cost of Riots"

From American Thinker:

* A striking case against riots is clearly expressed in the findings of Professor Mary C. King  whose research demonstrates “little relationship between regional progress for African Americans and relatively proximate race riots.” Riotous behavior often results in businesses fleeing minority communities, thus depriving residents of employment and income.   Racism is an extremely sensitive matter; however, sensitivity must be tempered by logic.  African Americans have experienced substantial progress over the past century.  Eroding these gains is a possibility if rational adults refrain from correcting misguided activists.  Such was the impact of the race riots of the 1960s.  Examining the effects of civil disorder on small businesses in inner cities, sociologists Howard Aldrich and Albert Reiss found that riots not only inflicted serious property damages but in the long term they made it prohibitive to operate in inner cities, hence driving up insurance costs. As a result, businesses migrated to nurturing environments.  Low-income residents are the major beneficiaries of entrepreneurship in the inner city, so when emotions trump logic and businesses exit these communities, the losers are poor black people.  



From JD Supra:

* Using the Loan Method of Split Dollar to recreate the benefit of tax deferral for Hedge Fund Managers in lieu of carried interest in their offshore fund.



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