Inside Your Wealth - April 2020

A Note from Marilyn and Ora - Hope and Gratitude 

We hope that April’s note finds you and your family safe and well! These past 45 days have been so unique and challenging on so many levels. Many of you have been following a “shelter in place” order, confined to home; working remotely; and for some, sadly, furloughed until you are allowed to return to work.

Congress has passed the CARES Act and the Federal Reserve has committed to support the nation’s economy as they can with just under $5 trillion dollars (plus more on the way). We pray that we all can emerge from this once-in-a lifetime event with hope and positivity for our future. This corona virus knows no boundaries nor borders! 

We thank all of you who are front line health care providers and first responders or have family who have risked their lives for our well-being.

Let’s continue to work together as a community to fight this virus and its impact on our nation by serving and supporting one another.

We are here for you! Please let us know how best to serve and support you!

Be Safe. Be Kind. Be Well.

Marilyn and Ora

Accentuate the Positive

It’s no secret that we are in a better mood when we’re feeling well.

However, evidence demonstrates that there may be genuine health benefits to maintaining a positive, optimistic outlook.

In September of last year, JAMA Network Open published a meta-analysis taking a look at 15 studies of nearly 230,000 individuals. In these studies, optimism was linked to lower risk of cardiovascular disease (including heart attack) and an overall lower rate of mortality. What is the reason for this? Some have cited a lower levels of stress hormones, which in excess amounts and extended durations, can have negative effects on the body.

Others have suggested that a positive frame of mind may improve a person’s problem-solving skills and is associated with lower rates of engagement in unhealthy habits. Pessimism itself is a habit, and it is possible to give yourself a more optimistic outlook through practice. There is, of course, such a thing as too much optimism. If you were to be too optimistic, it’s possible to take undue risks or become oblivious to certain threatening situations.

As with many aspects of life, you have the choice to accentuate the positive in a balanced, careful way that keeps you both happy and healthy.¹

Is it a Hobby or a Business?

There are any number of hobbies that people engage in during their personal time. Some of those hobbies  involve the movement of money, ranging from buying and selling antiques and collectibles to breeding and trading in horses or other livestock. If you’re taking part in this sort of hobby, and you are making any income from the endeavor, you will be reporting that income. Should you take this income as an individual or should you start a business (such as an LLC)? here are any number of hobbies that people engage in during their personal time. Some of those hobbies  involve the movement of money, ranging from buying and selling antiques and collectibles to breeding and trading in horses or other livestock. If you’re taking part in this sort of hobby, and you are making any income from the endeavor, you will be reporting that income.

Should you take this income as an individual or should you start a business (such as an LLC)? It bears considering what the Internal Revenue Service (I.R.S.) considers a business. Are you attempting to make a profit? If you generate profit in three out of five years, you meet the I.R.S. criteria (two out of seven for horse breeding).  However, if you are showing more expenses than profit, an I.R.S. audit may be more likely. For that reason, you might want to consult your tax, legal, and accounting professionals before modifying your  existing tax strategy.            

This article is for informational purposes only and is not a  replacement for real-life advice.²  

Recipe of the Month—Cauliflower Pizza 

Ingredients:
One whole cauliflower
One egg
½ cup Parmesan and/or Mozzarella cheese, grated.
1½ tsp. seasoning mix of basil, oregano, salt, and pepper (to taste)
Extra virgin olive oil, misted (or cooking spray)

Directions:
1. Preheat oven to 375° F and add parchment paper.
2. After you rinse and chop cauliflower, rice in food processor, and then microwave for 8 minutes (or bake in oven for 15 minutes on your baking sheet).
3. Once cooked, move rice to layered cheesecloth and let cool for five minutes. Compress the liquid out of the cheesecloth until it no longer produces water.
4. Raise oven temperature to 450° F.
5. Mix egg, seasoning mixture. Add grated cheese and fully drained cauliflower rice. Mix well into pizza dough.
6. Add new parchment paper to baking sheet, mist with olive oil or cooking spray.
Move dough to center of sheet and flatten into a thin pizza crust.
7. Bake for 20 minutes on each side, turning with spatula. Once baked, add favorite toppings and cheese, and bake until evenly melted.

Recipe source: ifoodreal.com/cauliflower-pizza-crust/

Travel Insurance in the Age of Coronavirus

The novel coronavirus, also known as COVID-19, has arrived just ahead of spring and summer, a time of year when many Americans are planning to travel and vacation. Many of those people have purchased some sort of travel insurance in case some sort of calamity arises while you are away from home. COVID-19 would certainly seem to qualify, and you would definitely be right to ask your provider if you are covered in this situation.

Some travel insurance providers already cover cases where vacation plans are interrupted or canceled by fear of the coronavirus and even cover treatment for those people unfortunate enough to become ill overseas. However, you should make sure that the coverage will handle these situations before you make your purchase. Ask if they offer cancel for any reason (CFAR) coverage for your trip.

Until recently, such coverage wasn’t available in every state.³

Fearlessness and Courage—Wealth Tip 

We all have fears…Some more nagging than others. How do we overcome these fears and have the courage to forge ahead? How do we quiet that little voice that says, “You have not tried this golf shot before”…why now? Well, why not now?

How will we ever know how good we can be, if we don’t try? Whether on the golf course overlooking a big barranca or lake or on the Yellow Brick Road of Life, facing a steep mountain path.

Do one thing every day that scares you —Eleanor Roosevelt

F-E-A-R has two meanings: 'Forget Everything and Run' or ‘Face Everything and Rise.' The choice is yours—Zig Ziglar

Savvy Women —

Collaborating With Women For Their Bigger, Brighter Future 

We love this topic of “Building Up and Supporting Women” as that is a basic foundational principle of our financial planning and wealth management practice. In our work with our clients, some of our women clients may be experiencing a life transition, such as widowhood, divorce, or a business or career change. As many of you may have heard me say: “Your wealth is more than your money - It’s about your family, your friends, your community and the causes you care about deeply”. And most importantly it is about YOU and how you step forward and through a life transition.

May we share one story of a professional woman, mid-career, who wanted to make a change in her lifestyle and her career. On the personal front, she was single and open to a relationship that seemed to elude her while she was so busy sharing her talents and skills with her non-profit employer, who she loved. However, Laura wanted to build her own therapy practice serving young families and children. With her full-time work, she could not find enough time to plan, manage and execute a complete transition.

Couple that with the fear of losing a stable paycheck, health benefits and the unknown of being a business owner. She had some clients that she served on a part time basis, but not enough to sustain a lifestyle in Northern California. We began to work together to build her potential new business, from the ground up, one client, one business tenet at a time. Laura really knew what she wanted in her practice, who she served and how she served.

We supported her with an initial business and marketing plan, which then we integrated into her personal financial plan. We brought solutions for health benefits and retirement planning as well, so she was comfortable and confident with her future.

She took fast action and decreased her hours at the non-profit and opened her Saturday mornings to serve families with two working parents. She immediately had success through her physician referral network. She also raised her hourly rate, which was challenging at first, as she is a giver and wanted to share her talents. We reminded her that she is in business to serve her clients, but the business needs to serve her as well.

She left her nonprofit 5 months early as she had built a firm schedule of clients and had confidence that her marketing and business development would sustain her practice as clients completed their work. We were thrilled for her success and in the interim, while she was managing her transition, she met a prospective partner, who now is her husband and they are enjoying life together.

The lessons learned are many: Know what you truly desire. Put action plans in place to reach your goals. Ask for support to reach your dreams. This is a recipe for success and a lifestyle of abundance. 

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