Erika Herman, Cornerstone Chem-Dry, moderated our program “Ask the Experts!”. It is one of our favorite programs where anyone in the room can ask any of the professionals a question!
The questions asked were:
- Ron Schulz, Supreme Lending, asked Ted Biggers, Biggers Law Firm, what is the number one mistake regarding wills that you see people make, other than not having one? They think they can do it by themselves or through an online form. Several times, it is not executed correctly, and the customer may end up with no actual will. Spend the money to make sure it is done right. He added a will should be reviewed every 5 years or so, or if there is a life event or tax law change.
- Michelle Spangler, Infused Oils & Vinegars, asked Ron Schulz, Supreme Lending, how does someone get a mortgage if they have no source of income (i.e. retirement)? You must show some source of income (social security, retirement distributions, pension etc.). If he can prove it will be coming in for 3 years, he can use any type of retirement income. Or if it is out of a trust, they just need a copy of the trust agreement for underwriting to approve.
- Paul Chafetz asked Michael Bosco, SafeHaven Pest Control, about an email he received last week from SafeHaven asking them to click on a link to boost Google ratings – do you have any advice or strategies on digital marketing for the rest of us? Finding a team or company to help handle that. For him, his partner is more knowledgeable in that area and handles most of it. They use click funnels where it drives decision making to a point of purchase.
- Matt Spellman, TIG Real Estate, asked Monis Zaidi, Assured Accounting & Tax Services, about purchasing a new truck and the tax write off for that? If you buy anything over 6,000 lbs., you can write off 100% of that in the first year. For example, if made $100,000 and bought a $70,000 truck, you would only pay taxes on $30,000. It’s a great deduction and I do the same thing!
- Scott Scribner, Keller Williams Residential, asked Chris Clausen, CNC Home Care, regarding long-term care insurance and how they determine when you qualify for it? Typically, they have forms they send to the provider (CNC would be the provider) and one those are completed, they will send an RN out to evaluate them. Based on the criteria established in their policy, they can engage the policy and begin scheduling care. Braden Howell, New York Life, was asked about the cost of long-term care insurance? It is not as expensive as it is if you wait until your 50’s! It is vitally important to protect your assets, not only to make sure you have the funds to take care of your individual, but also to make sure that your assets go where you want them to go. Self-insuring can become very expensive and go through funds quickly.
- Monis Zaidi, Assured Accounting & Tax Services, asked Ron Schulz, Supreme Lending, how to remove PMI on both conventional and FHA loans. If you are less than 70% LTV (loan to value) on your note, then you can have an appraisal done to have the PMI removed. Some may tell you that you must refinance to have it removed, but you do not. Unless you have an FHA loan (done in the last 5-10 years), then PMI is on for the life of the loan.
- Darren Gardner, ProActive Leadership Group, asked Ted Biggers, Biggers Law Firm and Monis Zaidi, Assured Accounting & Tax Services what are the situations where you would form an S-Corp or LLC? Ted Biggers said an S-Corp is really a tax treatment for your business. An S-Corp has shareholders where an LLC has members. Either one of them can be taxed as a corporation. The trend now is to have an LLC as they are more flexible, easier to manage, no shareholder meetings, etc. but it is really where you want to be tax wise. Monis Zaidi described the main benefit of an S-Corp is on self-employment taxes. Under an LLC, you must pay self-employment tax (15.43%) on that $100,000. With an S-Corp, you would take a small salary and the rest in distributions and you do not pay self-employment tax on distributions.
- Mike Moore, Moore Insurance Agency, asked Ken Teagle, Innovative Roofing, if the spray insulation saves on any roofing costs? No, it makes it more efficient but does not affect the roof itself. Ron Schulz, Supreme Lending, added that he had a friend who did spray insulation in the walls and when he wanted to later add a media system it made it really difficult!
- Paul Chafetz asked Thomas Gallatin, Merrill Lynch Global Wealth Management, what the market is going to do? While there is no crystal ball, traditionally election years are usually pretty positive. They are optimistic about another great year at 8% as opposed to last year which was 30% in the market. Still looking at US and International stocks, and bonds depending on your age.
- Erika Herman, Cornerstone Chem-Dry, asked Barbara Scribner, Keller Williams Residential, how the housing market was looking? We are approaching the busy season, which is the spring season. Most importantly are the low interest rates as Ron Schulz mentioned. It is good for buyers and for sellers because buyers are going to buy, and sellers are going to be able to sell to those buyers in the market. And then add in those 15-year rates and it is a great time to buy!
- Barbara Scribner, Keller Williams Residential, asked Ron Schulz, Supreme Lending, how he handles LLC loans? It depends on the assets are of the LLC. For instance, a lot of doctors make a lot of money, but the LLC doesn’t really have any assets other than holding properties for liability protection. In that case, you would close the loan in your name and then move it into your LLC.
- Erika Herman, Cornerstone Chem-Dry, asked Michael Bosco, SafeHaven Pest Control, what is the most common and most unique pest you have had to deal with? The most common is ants and unfortunately if there is an ant there is a colony somewhere which may be harder to find. The most unique was probably flying squirrels that a customer thought was rats. Did you know that when you shine an ultraviolet light on flying squirrels their fur glows a bright, bubble gum pink color! Darren Gardner, ProActive Leadership Group, also asked about bobcats and coyotes in neighborhoods and what to do about those? For the most part, bobcats live happily in the storm drain systems and with large rabbit populations they stay fed. They are probably doing better here than out in the wild! Coyotes are extremely inventive on surviving amongst us!
- Mike Moore, Moore Insurance Agency asked Erika Herman, Cornerstone Chem-Dry, what is the first thing you should do if you find standing water in your home? First, call a professional as you won’t get all that out with a wet vacuum. Make sure there is nothing electrical plugged in around the area and remove anything with metal on the bottom which touches the floor (furniture legs, etc.). The biggest mistake people make is they feel like they can clean up the problem themselves and then later they find mold. And also make sure the plumbing issue has been resolved – there is no sense having them clean everything up if it may happen again!