Solve Worries ---> Achieve Dreams

Optimism Shines Through: Financial and Economic Opportunity

2009-02-22T03:50:00.000-08:00

Twice in the past week I was in meetings where there was actual optimism about the economic future in Texas. As the saying goes, "Fear overcomes greed, and certainty overcomes fear." Regardless of political persuasion, having a fixed political team in place in Washington who have passed economic legislation is having a positive affect on local industry. Little by little, the known is overcoming the unknown, and this is allowing people to plan and move forward - especially leaders in industry.

Right now, the refinance boom - though not a great thing usually for the housing industry - is getting money flowing through the economy. Interest rates are unbelievable right now for buying houses. Prices are very low for industrial goods like cement and steel.Producers, those who have traditionally moved the economy in a positive direction, are once again seeing the opportunities in the midst of crisis, and see a narrow window in which to move forward before inflation looms over us -- at which time their strategies will change, but not their initiative in finding opportunity.

BusinessWeek author Ben Steverman wrote, in A Changed World for Financial Advisers on February 11, 2009, about the lessons learned by financial advisers through the past couple of years. In the article, the ideas to better protect and plan for clients get tied up in the debate between actively managing portfolios versus "buy-and-hold" strategies, which are less expensive and acknowledge the difficulty of timing due to the unpredictability of markets.

The article's bottom line gets back to three basics:
• risk assessment,
• emphasizing cash flow, and
• a wholistic approach to nest-egg building.

Mr. Steverman says advisers have found they should spend much more time with each client to determine an appropriate level of risk, often in spite of clients who calculate their risk-tolerance level as being higher than it actually is, especially in a downturn in the markets. He says that investment advisers are also going to have to pay more than lip service to their responsibility for their clients' total financial outlook, rather than just investment returns. Regarding retirement dreams, Steverman says that, "advisers can help clients make sure they are earning enough, saving enough, not borrowing too much, have realistic retirement plans, and have enough insurance."

If you are looking for risk management tools for yourself or your company, and you live in Texas, call me. I can help put a moat around your assets, so that you can continue to build your castle regardless of the battles being waged outside the gate.

Identity Safekeeping

2009-02-12T18:04:00.001-08:00

In a continuing education course I was in yesterday, out of about 70 people, more than 90% had either had their identity stolen and accounts compromised, or knew of someone who had. The presenter was Steve Hernandez from 5th Gear LLC, who kept us on the edge of our seats the entire morning with actual cases and solutions.

He opened by having us take this quiz:

Identity Theft IQ Test
Are You at Risk for Identity Theft? Test your “Identity Quotient” (IQ)
• I receive several offers of pre-approved credit every month. (5 points) Add 5 points if you do not shred them before putting them in the trash.
• I receive one or more phishing emails every month. (5 points) Add 20 points if you do not know what a “phishing” email is.
• I carry my social security card in my wallet. (10 points)
• I carry my military ID in my wallet at all times. (10 points)
• I carry passwords and/or pin numbers in my cell phone, blackberry, palm pilot, or other PDA so I can look them up in case I forget them. (10 points)
• I use the same password/pin number(s) for multiple online accounts, including banking, eBay, Paypal, etc. accounts. (10 points)
• My passwords/pin numbers usually consist of familiar pieces of information like my mother’s maiden name, my children’s names or birthdates, pet names, etc. so I won’t forget them. (5 points)
• I do not have a PO Box or a locked, secured mailbox. (5 points)
• I use an unlocked, open box at work or my home to drop off my outgoing mail. (10 points).
• I do not shred banking and/or credit information when I throw it in the trash. (10 points)
• I provide my social security number (SSN) when asked – without asking questions as to how that information will be safeguarded. (10 points)
• Add 5 points if you provide it orally without checking to see who might be listening.
• I am required to use my SSN at work as an employee ID or at college as a student ID number. (5 points)
• I have my SSN and/or driver’s license printed on my personal checks. (10 points)
• I have not ordered a copy of my credit reports for at least 2 years. (20 points)
• I do not believe that people would root around in my trash looking for credit or financial information or looking for documents containing my social security number. (10 points)

Understanding your score:

100+ points – recent survey indicate that 8-10 million people were victims of Identity Theft last year. YOU ARE GOING TO BE ONE OF THEM! We recommend you purchase a paper shredder, become more security-aware in online behavior and document handling, and start to question why people need your personal data.

50-100 points – Your odds of being victimized are higher than average – even higher if you have good credit.

0-50 points – Congratulations. You have a high “IQ”. Keep up the good work and don’t let your guard down now.

Here are some things to do to protect your identity:
- Do not mail anything with personal information in an unsecured mailbox
- Use online bill pay and e-bills to reduce the amount of sensitive data in your mail
- Only use a debit card for cash advances - use a credit card for any other purchases in restaurants, retail stores, or online. The debit card will provide instant access to your cash; the credit card provides protection and delay through the credit card company.
- Shred with a crosscut shredder anything that contains your name, address or other sensitive data before discarding, including any credit requests you get in the mail.
- Check www.farmersidentityshield.com for more tips, plus daily updates on the latest schemes and tricks ID thieves use.

Only what is required...

2008-10-13T01:07:00.000-07:00

Below are some interesting observations made by a Starbucks barista regarding meeting the challenges of this economic environment... doing only what is required.
Wise choice on raising deductibles...not just to save money, but to focus insurance dollars on the critical and not on maintenance. Also, minimizes claims. Insurance companies look at the number of claims, not the size of the claims, in pricing, or even making available insurance to prospective customers.
It is certainly unfortunate those who only do what is required that Life insurance isn't a legal requirement - but clearly no one, including (and I think especially) the government can save us from ourselves.

Life Insurance Insider, Oct 7, 2008 - What is Required

"I'm talking about the sort that start to have some considerable consequences if you decide to make them," she said. "For instance, my husband and I have two kids under the age of five so we keep a really low deductible on our auto insurance. And thank goodness we've always done the same with our homeowners insurance, so our out-of-pocket expense to fix the roof after Hurricane Ike was minimal."She shrugged and said, "I guess it's like a combination of an educated risk and a gamble. But I think that in order to have the finances available we need right now on a monthly basis, we're going to have to raise those deductibles."She snapped on the lid for my coffee. "Because it's not like you can just totally cancel those insurances and keep the monthly payments for other things," she said. "You buy a car and if it's financed by a bank they make you get insurance for it. Same thing with a house. You have no choice." She handed me my coffee and said, "Isn't it interesting, though, that nobody forces you to get or keep life insurance?"

Facing the Unexpected

2008-07-15T15:12:00.000-07:00

Planning is your best protection against the unexpected

Farmers is in the business of helping our customers get back where they belong when the unexpected happens. Emergency planning can help you prepare for life's setbacks and to help restore your world to order when the unexpected happens.

Undergoing a life change? Events like getting married or retiring require a change in life planning. How will you handle the high cost of college tuition, the hassle of buying a new car, the worries of buying a new home or moving?

No insurance company offers more discounts than we do, and our industry-leading HelpPoint® claims service means you can count on us to be there when you need us. Anytime, day or night, just one call to (800) 435-7764 will help you restore your world to order - fast! Give me a call and I'll give you more information on all the many products and discounts my Farmers agency offers, whether it's auto insurance, homeowners insurance, life insurance or something more specialized.

Sanity Makes a Comeback

2008-06-15T15:58:00.000-07:00

The Farmers Insurance Group HelpPoint® claims call center has just been recognized by J.D. Power and Associates for the third year in a row for providing "An Outstanding Customer Service Experience". The recognition is for call center operation customer satisfaction excellence under the J.D. Power and Associates Certified Call Center ProgramSM.

By passing the rigorous standards of the certification process, Farmers' HelpPoint demonstrates a strong commitment to providing customers with a consistent, positive experience with its claims call center," noted Farmers® Vice President of HelpPoint Operations, Vince Donofrio. "Customers give particularly high ratings to HelpPoint's customer service associates for their courtesy and concern for customers' situations."

The J. D. Power report stated "Once again, Farmers has shown itself to be an outstanding J.D. Power and Associates' Call Center Certified company, representing the top 20 percent of customer service organizations across all industries that participate in our program."

Farmers Group, Inc. is a wholly owned subsidiary of Zurich Financial Services, an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Farmers® is the nation's third-largest Personal Lines Property & Casualty insurance group. Headquartered in Los Angeles and doing business in 41 states, the insurers comprising the Farmers Insurance Group of Companies provide Homeowners, Auto, Business, Life insurance and financial services to more than 10 million households.