Tag Archives: Steven A. Branson

Make customer service calls work for you – Get them on your side

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Your goal on these calls is to convert the customer service rep to your side so that their goal is to make you happy. Most people in customer service are there because they want to please others; you want tap into that bent.
Here are some easy tips:
1. Be Respectful: Make them feel important and validated. Ask them their name, if they did not give it, and use that in the conversation.
2. Show Gratitude: thank them.
3. Recruit Them: Use terms like “we” and clearly state your objective so you turn the call into a mission, with the representative committed to helping you accomplish it.
4. Remain Calm: Avoid trigger words, anger and any swearing. Otherwise you risk losing the bond you created. Maintain the position of being empowered to get what you, as the customer, deserve.
5. Communicate Your Determination: Be clear that you are not going anywhere until your mission is accomplished. Be clear that you are not taking any brush off.
6. Escalate: If you are not making progress, then escalate: ask to speak to a manager. Many representatives are judged by the number of calls referred to managers or supervisors, so asking may prompt them to be more helpful.
This approach may take practice (and patience). However, it is quite effective, so you are likely to see good results.

Plan now to avoid surprises from the Affordable Care Act when filing 2014 taxes

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2014 was the first year Americans had access to health insurance options through the Affordable Care Act (the “ACA”). With this new access to insurance came the obligation to purchase it or face new tax consequences. If you opted not to buy health insurance in 2014, you may be faced with a penalty when you file your 2014 tax returns. Even if you did buy insurance through one of the insurance marketplaces, you may have new tax forms to complete and some surprises when it comes to your refund or tax bill.

For most taxpayers, the impact on their tax filing will be minimal, requiring those who were covered to simply check a box indicating they had insurance throughout the year. Those who received subsidies to purchase insurance and who later had increases in their 2014 salary may be required to pay back some of that subsidy. Those whose salary decreased may receive a larger than expected refund.

As these provisions are new to everyone, there may be confusion for taxpayers and tax preparers alike. Unfortunately, due to recent budget cuts, the IRS expects to be able to speak with only half of the people who call in for assistance.

While gearing up for the 2014 tax season, it’s helpful to understand some the most important provisions of the ACA:

  • 1. Exemptions: The ACA provided some exemptions that allow taxpayers to opt out of purchasing insurance without any penalties, including hardship, affordability and religion. There are different methods for applying for an exemption depending on the type of exemption you are requesting. To learn more, go to: https://www.healthcare.gov/fees-exemptions/apply-for-exemption/
  • 2. Penalties: Those who do not qualify for an exemption, were insured for only part of the year, or remain uninsured will be required to pay a penalty called “The Individual Shared Responsibility Payment.” The penalty is set to increase over the coming years, so compare not to see if it is more beneficial for you to pay the penalty or buy insurance. The Tax Policy Center has designed a calculator to help you determine your penalty is you opt to remain uninsured: http://taxpolicycenter.org/taxfacts/acacalculator.cfm.
  • 3. Reconciling: Those who purchased subsidized insurance on the exchanges received an advance on a tax credit. At the time of requesting the subsidy for insurance in 2014, the amount of the subsidy was calculated based on the taxpayer’s 2012 income. The amount of the subsidy granted will be reconciled in the taxpayer’s 2014 filing using the taxpayer’s actual 2014 income and that will affect the taxpayer’s refund or bill. Changes in an individual’s personal circumstances, such as divorce, marriage or a new child can also impact those numbers.

    • There’s still time to plan. Taxpayers facing a loss in premium subsidies because of an increase in income can reduce their income to qualify for the credits. For example, they can contribute to an IRA by April 15, 2015, for the 2014 tax year.

    Estate Planning Update – still no federal estate tax

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    So far this year, there is no federal estate tax. This creates a planning quagmire.

    Depending on how the estate tax clause is drafted in your estate plan, you could have the entire estate passing to children instead of a portion to the surviving spouse, or all of the estate passing to the surviving spouse, not using any state estate tax credit such that unnecessary state estate taxes become due at the first death.

    Until Congress acts to pass a law to retroactively restore the federal estate tax, as expected, you should check your tax clause and review it with your attorney to see if a revision is in order.

    You may find that your documents adequately deal with the combination of no federal estate tax and applicable state estate tax. Or, you may find that an amendment to your documents is needed to address this issue.

    While reviewing the tax issue, make sure your durable powers of attorney and health care proxies or medial directives are also up to date.

    Let us know if you have questions or comments. Thanks,

    Steven

    Investment Planning: fear index and your asset allocation

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    Recent world events (China, banking regulations, Haiti, etc.), and corresponding market moves, have lead investors to become concerned about US stocks. The VIX index, also known as “the fear index”, is about as low as it was when Lehman Brothers collapsed in 2008 – a very low number.

    Is this indicator rational and should act or should you continue to stick to your long-term investment strategy, and your asset allocation?

    First, on volatility, there are hedges that some can buy but many are currently over-priced. That is, you can attempt to replicate the VIX Index and benefit from its contrary motion against the stock market as a form of “portfolio insurance”. However, because so many investors are concerned, they have over-bought this index, or its components, so it is not favorably priced, making this a bad time to buy.

    Second, on stocks and ultimately on your asset allocation, does the index still tell you that you need to sell stocks? If you did, you always have the timing issue of when to buy back in (see the quotation below). Also, the fear index could, in fact, be a contrary indicator, indicating that you should not sell, just as when individual investors buy or sell, you should sell or buy.

    Third, the worry is that the recent upswing means that stocks are over-priced now. However, the P/E ratio is neither as high as 2000 nor as low as the long-term average of 18. So the index does not necessarily sound a warning bell for mass sale of stocks.

    A better response for arguing that you should adhere to your allocation is summarized by John Coumarianos, who is a mutual fund analyst with Morningstar: “Investors tend to time their allocation shifts poorly, doing themselves much harm along the way. That’s largely because they make such moves based on emotion rather than hard facts. For example, many investors abandoned stocks at the depth of the crisis in 2008, missing the big comeback in 2009. Our statistics on Investor Returns are grim. They prove that most investors do an awful job of timing the market, consistently selling low and buying high.”

    He goes on to argue that you need to rely on mutual fund and other investment managers to go into cash when appropriate and then move back into stocks, based on their expertise and analysis, which is totally independent of the fear index.

    As I have often said, having a long-term strategy and sticking to it is the key to achieving good returns over time. This often requires ignoring what others say, what the press or information like the fear index says, and your own sense of anxiety. A good portfolio will have both ups and downs, but it will work for you if you let it.

    Thanks,

    Steven

    Identiy Theft – financial planning tips on protecting your computer

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    On line usage is up, but so is identity theft.

    One example we hear of often is an e-mail purporting to be from the IRS regarding a refund. The IRS has said categorically that they do not send out e-mails, so this is clearly a scam to get personal information.

    So, as a financial planning matter, what do to protect your computer and your personal information?

    Here are several good tips from WebRoot, a software company that provides related software, worth applying to your computers:

    1. Keep Your Security Software Up to Date: At a minimum, your PC should have current antispyware, antivirus and firewall protection.
    2. Watch Out for Email Scams: Never click on links sent in unsolicited emails, even if it appears to be from a legitimate source [the IRS example above is but one….].
    3. Use Strong, Unique Passwords: Create passwords that are difficult to guess, and use different passwords for each of your accounts.
    4. Shop and Bank on Secure Connections: Hackers can intercept data sent over unsecure wireless connections, so exercise caution when performing sensitive online transactions in public places.
    5. Erase Cookies: Get in the habit of clearing cookies off your hard drive after you browse the web. Some privacy protection software can automatically do this for you

    Be sure you have applied all of the tips to any computer not already protected. And, let me know if you have questions or concerns

    Thanks,

    Steven