Tips to Keep Small Businesses Financially Healthy Under Health Care Reform

RISMEDIA, June 23, 2010–While it’s still too early to know all the financial consequences the health care bill may have for business owners, they should start now to consider financial strategies to manage possible increased costs, taxes and borrowing rates, advises fee-only financial planner Rick Kahler, president of Kahler Financial Group.

A recently released study found the Congressional Budget Office overstated projections that the health care bill will reduce the federal deficit and may actually increase it. That could affect the cost of business borrowing, warns Kahler.

“Higher government debt could put upward pressure on interest rates,” Kahler says. “Business owners should consider refinancing loans now to lock in today’s low interest rates, as well as pay off existing debt and avoid new debt.”

Beginning in 2014, deductibles for group health plans cannot be higher than $2,000 for individuals and $4,000 for families. But existing policies with higher deductibles will likely be grandfathered, so Kahler advises business owners consider implementing a high-deductible plan now to help keep future premiums more affordable.

“The health care bill rewards companies that remain small and pay lower wages,” says Kahler.

He notes for the next few years small firms with 10 or fewer workers and average annual wages under $25,000 will be eligible for a full tax credit of 35 percent of annual health insurance premium costs. But that tax break will be phased out for businesses with more than 10 workers with the amount of tax credit decreasing based on the number of employees above 10 and of those whose wages exceed $25,000.

Starting in 2014, the health care bill mandates businesses with over 50 employees offer adequate coverage or face a penalty of $2,000 per employee, with no fine for the first 30 employees. For example, a firm with 100 employees will pay $140,000. Part-time employees do count toward the number of employees. However, owners and family members don’t. Smaller companies with fewer than 50 employees are exempt from penalties.

“Strategies business owners could pursue to stay within those minimum employees, wage requirements might include spin off companies to non-controlled or affiliated groups, reduce employee count, or outsource work,” Kahler suggests. “But, these actions could take a few years to implement, so even though some health care bill provisions don’t start until 2014, start to explore these options now.”

Kahler expects insurance costs to continue to increase in the near term. To offset higher costs, Kahler suggests eliminating insurance for “extras” like dental and eyeglasses. For closely held C corporations, a medical reimbursement plan may allow businesses to write off all qualifying non-deductible expenses without being subject to HSA and FSA plan caps.

“Perhaps the most important strategy is for business owners to pay close attention as the law is implemented so they can manage the health of both their businesses and employees,” Kahler warns.

Effort to Extend Tax Credit Closing Deadline Gains
The U.S. Senate voted Wednesday to extend the home buyer tax credit closing deadline to Sept. 30, giving an estimated 180,000 buyers who met the contract deadline of April 30 extra time to close the transaction. The extension was added to a bill to pay for jobless benefits, which still must pass.

The NATIONAL ASSOCIATION OF REALTORS® estimates that one-third of qualified applicants have been notified that they will be unable to close by the deadline. The Mortgage Bankers Association says delays are caused largely by the volume of transactions.

The overall bill, once it passes the Senate, must be approved by the House.

Source: Associated Press, Andrew Taylor (06/16/2010)

For Your Clients: Summer Remodeling Ideas

By Paige Tepping

RISMEDIA, June 16, 2010–Other than vacations, summer is the time of the year most popular for home improvement. The long days and warm, sunny weather make a great time to work on repairs and renovations without much of the hassles and delays that rain and other elements bring. For this reason and more, a good number of homeowners undertake home improvement projects during the summer.

Eugene Makeev, a home improvement expert offers the following tips for homeowners who are looking to spruce their homes up this summer.

Patios and Decks
What better way to enjoy the warm days than by creating an outdoor living space for the family to enjoy. Decks and patios are among the most popular summer remodeling ideas. There are various factors to take into consideration when deciding whether a patio or deck is the most appropriate project to undertake. Such factors include soil condition and consistency, site terrain, use, capacity, privacy as well as the cost and maintenance you are willing to put up with.

Home Maintenance
Throughout the seasons, your home has taken good care of you and your family and now is the best time to give back. Go through your property to evaluate and create a checklist on areas that need mending or replacement. This list is a crucial preparation before calling a contractor or handyman for maintenance and repair services. Some common maintenance and repair include:

-Waterproof the basement
-Re-caulk and replace weatherstrip
-Clean and seal wooden decks
-Trim bushes and trees
-Re-align downspouts and gutters
-Repair roof
-Clean the pool
-Mend the fence
-Seal cracks along driveways, foundation, walkways, etc.
-Maintenance of HVAC systems

Energy Efficient Renovation
When it comes to summer remodeling, there’s no better way to invest your hard-earned dollars than by making your home energy efficient. An energy efficient summer remodel is truly a worthwhile endeavor as it will result in years of savings on your energy bills. Some of the common items you can buy and integrate into your energy efficient renovation include:

-Insulation systems and materials
-Roofs that resist heat gain
-Biomass burning stoves
-Energy-efficient windows
-HVAC systems with the highest efficiency tier
-Solar panels
-Fuel cells
-Geothermal heat pumps
-Wind energy systems

June 11, 2010

Sale of ‘Le Belvedere’ sets new record for 2010

More on the long rumored sale of the Bel Air mansion “Le Belvedere” in today’s Los Angles Times article, “Bel-Air mansion fetches highest price this year for a U.S. residence.”

In a nutshell:

Although he wouldn’t release the sale price, seller Mohamed Hadid confirmed that it was in excess of the previous record of more than $46.5 million set this spring in Colorado, falling between $50 million and the asking price of $72 million. In Los Angeles County, sale prices can take more than a month to appear on the public record.

Designer-developer Hadid had listed the walled and gated estate 15 months ago at $85 million.

The 48,000-square-foot estate, called Le Belvedere, was bought in the name of a limited liability company, not an individual. “Even I don’t know who bought it,” said Hadid, who has built Ritz-Carlton hotels, office buildings and king-size estates nationwide during his 30-year-plus career.

6 Backyard Improvement Ideas to Add More Value to Your Home

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RISMEDIA, June 10, 2010—If you’re like most homeowners, there is never a shortage of options when it comes to projects around the house. But studies have shown that some of the highest return on household improvements can come from those on the outside, not the inside.

A primary reason is that outside investments can produce curb appeal, which is especially important if you are planning to sell your home. Those same improvements can enhance the enjoyment factor if you and your family plan to stay in your home. 

For example, one national industry resource—the National Association of Realtors, reported recently their experience shows a new wood deck produces the second highest return on home improvement investment of any common addition, remodel or replacement project.

However projects don’t have to be big to add value or enjoyment, according to Jimmy Rane, president of Great Southern Wood Preserving, a leading producer of pressure-treated lumber products and maker of YellaWood brand products.

The following popular outside improvement projects will increase the curb appeal or value of a home: 

Adirondack chairs—Uniquely-American classic outdoor furniture is made entirely of wood and has a straight back and seat, which are set at a slant to sit comfortably on a hillside or mountain incline, but still be comfortable at any angle.

Gazebo—A gazebo can be freestanding or attached to a garden wall, roofed and open on all sizes to provide shade or shelter.

Planters and window boxes—Planters have become popular because they are both functional and ornamental. Additionally, some can be moved frequently to account for seasonal weather or just to create a change in scenery.

Picnic table—Picnic tables go well on a patio or a deck, but equally as well on the grass or under a tree in the yard. A traditional picnic table is all in one piece so that it wears well without a lot of maintenance.

Trellis—A trellis can function as a unique sun screen or it can be the framework for an outdoor hanging garden. Building it with pressure treated lumber can add life by minimizing rotting and other threats.

Trash can corral or compost bin—While many outdoor projects tend to be cosmetic in nature, here are two ideas that are both practical and pretty. With a trash can corral, you can hide unsightly trash cans and with a compost bin, you can reduce your own carbon footprint in a way that doesn’t take away from the visual appeal of the place.

For more information, visit www.greatsouthernwood.com.

CLOROX VERSUS PEROXIDE

Clorox vs. Peroxide VERY interesting and inexpensive. This was written by Becky Ransey of Indiana  (a doctor’s wife), and I want to share it with you. She was over recently for coffee and smelled the bleach I was using to clean my toilet and counter tops. This is what she  told me. ‘I would like to tell you of the benefits of that Plain  little ole bottle of 3% peroxide you can get for under $1.00 at any  drug store. What does bleach cost? My husband has been in the medical  field for over 36 years, and most doctors don’t tell you about  peroxide. Have you ever smelled bleach in a doctor’s office? NO!!!

Why? Because it smells, and it is not healthy!  Ask the nurses who work in the doctor’s offices, and ask them if they  use bleach at home. They are wiser and know better!

Did you also know bleach was invented in the late 40’s? It’s chlorine, folks!  And it was used to kill our Troops. Peroxide was invented during WWI  in the 20’s. It was used to save and help cleanse the needs of our troops and hospitals.

Please think about  this:

1. Take one capful (the little white cap that comes with  the bottle) and hold in your mouth for 10 minutes daily, then spit it  out. (I do it when I bathe.) No more canker sores, and your teeth  will be whiter without expensive pastes. Use it instead of  mouthwash.

2. Let your toothbrushes soak in a cup of peroxide to  keep them free of germs.

3. Clean your counters and table tops  with peroxide to kill germs and leave a fresh smell. Simply put a  little on your dishrag when you wipe, or spray it on the  counters.

4. After rinsing off your wooden cutting board, pour  peroxide on it to kill salmonella and other bacteria.

5. I had  fungus on my feet for years until I sprayed a 50/50 mixture of  peroxide and water on them (especially the toes) every night and let dry.

6. Soak any infections or cuts in 3% peroxide for  five to ten minutes several times a day. My husband has seen gangrene that would not heal with any medicine but was healed by soaking in  peroxide.

7. Fill a spray bottle with a 50/50 mixture of peroxide  and water and keep it in every bathroom to disinfect without harming  your septic system like bleach or most other Disinfectants will.

8. Tilt your head back and spray into nostrils with your 50/50 mixture whenever you have a cold, plugged sinus. It will bubble  and help to kill the bacteria. Hold for a few minutes, and then blow  your nose into a tissue.

9. If you have a terrible toothache  and cannot get to a dentist right away, put a capful of 3% peroxide  into your mouth and hold it for ten minutes several times a day. The  pain will lessen greatly.

10. And of course, if you like a  natural look to your hair, spray the 50/50 solution on your wet hair  after a shower and comb it through. You will not have the  peroxide-burnt blonde hair like the hair dye packages but more  natural highlights if your hair is a light brown, reddish, or dirty blonde. It also lightens gradually, so it’s not a drastic  change.

11. Put half a bottle of peroxide in your bath to help  get rid of boils, fungus, or other skin infections.

12. You  can also add a cup of peroxide instead of bleach to a load of whites  in your laundry to whiten them. If there is blood on clothing, pour it directly on the soiled spot. Let it sit for a minute, then rub it and rinse with cold water. Repeat if necessary.

13. I use peroxide to clean my mirrors. There is no smearing, which is why I love it so much for this.

14. Another place it’s great is in the  bathroom, if someone has been careless & has peed on the floor  around the toilet & it’s begun to smell of urine. Just put some  peroxide in a spray bottle & spray. In the blink of any eye all  the smell will be gone & the bacteria eliminated!

I could go  on and on. It is a little brown bottle no home should be without!  With prices of most necessities rising, I’m glad there’s a way to save tons of money in such a simple, healthy manner!

This  information really woke me up. I hope you gain something from it,  too.

Flood Wipes Out 1,700 Jobs at Gaylord Opryland

Hotel Owner Force to Cut Staff as Nashville Resort Undergoes Major Restoration

By Andrew Deichler

June 7, 2010

In the aftermath of a devastating flood that hit downtown Nashville early last month, Gaylord Opryland Resort announced that 1,743 workers will be out of a job by the end of the week.

Following the “once in a 1,000-year event,” that occurred on May 2 and 3, Gaylord Entertainment is releasing more than 65% of its Opryland staff as it begins a lengthy restoration at the facility. The hospitality company said it would be providing affected employees with two weeks pay, as well as payment for any unpaid vacation time. Additionally, health care benefits are to be extended through September.

“We are deeply sorry to have to make this incredibly difficult decision, as our employees are and have always been the driving force behind the success of our business,” said Colin Reed, chairman and CEO of Gaylord. “The cost of this disaster has meant that we have to balance the future of our business and our fiduciary duty to our shareholders with the duty we have to our employees.”

Gaylord is keeping 919 employees on staff as it goes about restoring the hotel, the Grand Ole Opry and the other surrounding facilities. These employees are primarily in the reservations, accounting, sales, IT, engineering, horticulture and security departments.

There could be a silver lining for displaced employees, but not for several months. Gaylord expects the resort to begin operating again by November, and estimates that it will start rehiring about six to eight weeks prior to the grand reopening.

The damage to Gaylord’s facilities has been catastrophic. The hotel’s lobby was ravaged and has since been gutted. The restaurant and kitchen areas need major repairs, as well as 117 guest rooms. The basements, which contain the facility’s power plant and technology systems, were completely submerged and will need to be replaced - a process that will take approximately four months.

The iconic stage and pews of the Grand Old Opry, Reed said, are gone. The dressing rooms and backstage areas, as well as the front lobby and retail store, are severely damaged and require a major overhaul.

The company estimates that repairs could cost between $215 million and $225 million. After insurance, tax refunds and other offsets, Gaylord is looking at a total impact of about $169 million to $179 million.

Additionally, the hotel owner’s business is also taking a big hit, as approximately 330,000 room nights were booked in the hotel over the next six months. Many of the bookings were related to conventions, and Gaylord is in the process of moving these events to other hotels within its own network. To date, 36,000 reservations have been transferred to other Gaylord hotels. However, more than 66,000 room nights have been moved to other hotels throughout Nashville and Tennessee.

The 2,881-room, 600,000-square-foot Gaylord Opryland accounts for 10 percent of the total number of hotel rooms in Nashville. Gaylord said that it receives more than 1 million visitors annually, generating about 25 percent of the city’s total hotel tax revenue.

From Buyer to Owner: The Home Buying Process

Buying a home is a complex process, and one of the biggest decisions you’ll ever make. Here are some of the key phases of the home buying process.

Find the right real estate agent and shop for homes in your price range

Once you have received mortgage prequalification or preapproval, look for a buyer’s agent to help you find and buy a home. A buyer’s agent will generally split the commission from a home transaction with the seller’s agent (who represents the seller’s interest rather than yours). Make sure to find an agent who understands what you want in a home and who has either sold homes in a neighborhood you’re researching or worked with clients who have bought homes in your intended price range. That way, you’ll know the agent can locate appropriate properties.

Seek mortgage prequalification or preapproval

Before you begin shopping for a house or condominium, it’s wise to seek mortgage prequalification in order to find out how much money you can borrow to buy a house and also whether you need to save more of a down payment or repair your credit report in order to qualify for financing. Once you’ve studied what you can afford in your marketplace and are ready to look more seriously at properties, it’s best to get mortgage preapproval - a pending offer from a lender or via mortgage broker to grant you a loan for a certain amount as soon as you identify a property.

Make an offer - and arrange an inspection

Once you find the home you want, ask your agent to look at comparable homes nearby so you can make a logical offer. Not all homes sell for their asking price. In your offer you will name the price you’re willing to pay, a “closing date” by which you’ll finish the purchase, and a deposit of “earnest money,” usually ranging from one to five percent of the home’s cost which will be applied to the purchase if it goes through. You most likely will include contingencies in your offer, and conducting a home inspection of the property is one of these. In some states, inspections are required by law but in others they are optional. Inspections may also be required if you choose certain types of mortgage loans (typically those with low down payments or targeted at first-time buyers).

Finish your “to-do” list before closing

Once the seller accepts your offer, contact your lender to finalize financing and then schedule a home inspection. Be prepared to join your agent on inspection day, and bring paper to take notes on the inspector’s discoveries. Once the inspection is complete, you and your agent should discuss the findings and your next steps. You present the seller with your requests, and once you and the seller have reached an agreement on the outcome, you proceed to closing.

Prepare for closing

Once your offer and its conditions have been accepted, you will have several tasks to complete before “closing” (or finalizing the purchase) on your property. You’ll need to meet with your lender to finalize loan paperwork, and you’ll also need to secure home insurance. You’ll learn from your lender what your “settlement” (or final payment) costs will be, and you’ll need to pull together the funds you’ll present on closing day to finalize your purchase. On closing day, you’ll present those funds and combine them with the earnest money that’s been sitting in escrow to representatives of the seller, and soon after you’ll receive title for the house and your municipality will record the transaction. Finally, you’re a homeowner!

Curious about home-buying?

The Fannie Mae Foundation offers a free guide to the process: http://www.homebuyingguide.org/.

 By John Spence Print Article

RISMEDIA, November 4, 2009—(MCT)—Congress is a step closer to extending the $8,000 first-time homebuyer tax credit and offering a new credit to other types of buyers, but some analysts are downplaying the controversial stimulus’ effect on the housing market. 

In a recent interview, Fox-Pitt Kelton analyst Robert Stevenson said the Senate’s proposal for extending the $8,000 tax credit for new homebuyers will have a “limited impact” on home sales.

A Senate committee reached a deal last week to extend the $8,000 tax credit and offer a smaller $6,500 credit for some existing homeowners. The main pitfall of the proposal is that it only pushes back the expiration of the tax credit to the end of April, Stevenson said. It is currently set to go away on Dec. 1. Stevenson said he’s skeptical the tax credit will drive activity during the slower winter months. The prime selling season for the housing market kicks off in the spring and tends to run through the warmer months. “Of course, Congress could come back and extend it again,” the analyst said. “When the next selling season starts, the housing market will depend on the state of the economy and mortgage rates, rather than tax credits.” 

The $6,500 credit for some repeat homebuyers would let more buyers participate albeit at a lower level, “but a lot of those people are effectively trapped in their current homes,” Stevenson said. 

From their peak in 2006, U.S. home prices have fallen about 30% through the end of August 2009 during the housing downturn, according to the S&P/Case-Shiller home price index. More Americans are falling behind on their mortgage payments or losing their homes in the recession as job losses pile up. Rising foreclosures are another key worry. Yet hopes that a recovery is in place were fueled by a report showing the fourth straight month of rising home prices. Some attributed the tentative rebound to buyers rushing to cash in on the expiring $8,000 tax credit. The push to extend and expand the credit has been led by home builders, Realtors and other groups connected to the housing market. 

“Failure to act now could derail the fragile housing recovery even before it has time to take root,” said Jerry Howard, president of the National Association of Home Builders, in a statement urging Congress to stretch the tax credit. “The consequences would be devastating for both housing and the economy.” Howard said the tax credit has already helped create nearly 200,000 jobs, drive home sales, stem foreclosures and stabilize prices. Homebuilder stocks were up sharply in the wake of the news on the Senate compromise. Still, some economists say the incentive’s impact is overblown. 

“I am not applying the recent home-price rebound to the tax credit,” said Cameron Findlay, chief economist at LendingTree, in a recent interview. “I don’t think the tax credit makes as big an impact as people make it out to be, although it certainly motivates first-time buyers,” he said. “If it expires, I don’t think it would shake the housing market as much as some have predicted.” 

The compromise on extending the tax credit doesn’t mean it’s a sure thing, and the proposal still face votes in Congress. One potential snag is a recent government report that uncovered fraud and abuse associated with the tax credit. Thousands of ineligible taxpayers have received millions of dollars under the program, according to the report. 

Stephen East, an analyst at Pali Research, said the proposed new $6,500 credit would likely have some impact on the lower-end of the move-up market. “In essence, this could slowly start to prime the pump,” East forecast. “That said, we remain wary that any measurable impact will be seen until after the holidays and investors need to reconcile their expectations to that.” 

(c) 2009, MarketWatch.com Inc.

Distributed by McClatchy-Tribune Information Services. 

“Reprinted from RISMedia Real Estate News Service [month, year] with permission of RISMedia, Inc. www.rismedia.com, Copyright 200x. All rights reserved.”