Special Credit Considerations for Seniors

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There is a reason that seniors often have the best credit scores, according to Experian. By the time people retire or reach senior status, they have likely been focusing on credit scores and building or maintaining good credit for a significant span of time, with often-impressive results.

While some people believe that they can relax their credit concerns once they retire, that is not necessarily the case. You will still want – and need – good credit if you decide to move or make updates to your current home, enter an assisted-living facility, or apply for a new credit card that offers great rewards points and perks.

In addition, solid credit scores will enable you to qualify for the best rates when it comes to mortgages and insurance, and can help if you decide to return to the job market, since employers are increasingly checking on applicants’ credit histories before making an offer.

How to earn extra credit

First of all, make a note on your calendar to check your credit report annually to ensure that you are not a victim or fraud – credit reports can also contain costly errors. AnnualCreditReport.com offers a free report once a year. No matter your age or stage, everyone should remain vigilant, particularly in the wake of recent serious data breaches.

Even a stellar credit report can decline if payment history, the biggest portion of your credit score, suddenly dwindles. It is important to keep your credit record active by using your current credit card(s) to pay for groceries, gas, travel and entertainment. You can earn rewards points, organize your bill paying and continue to bolster your credit score by using your cards.

Finally, continue to pay your bills on time, keep credit card balances low and think twice before opening any new accounts. Good payment history, and the longevity of your accounts, should continue to keep your credit score high.

Even if you are relatively debt-free, your credit score still matters.

We want to hear from you

Do you have a topic suggestion for an article in a future issue of Sims Insights newsletter? We would love to hear from you. Share your ideas here.

The material presented here is for information purposes only and is not to be considered an offer to buy or sell any security. This report was prepared from sources believed to be reliable but it is not guaranteed as to accuracy and it is not a complete summary of statement of all available data. Information and opinions are current up to the date of publication and are subject to change without notice. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objective of each investor and with the advice and counsel of a professional advisor. The opinions expressed by Ms. Morrow are strictly her own and do not necessarily reflect those of Herbert J. Sims & Co., Inc. or their affiliates. This is not a solicitation to buy or an offer to sell any particular investment. All investment involves risk and may result in a loss of principal. Investors should carefully consider their own circumstances before making any investment decision.

Breaking Bad Online Habits

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By Megan Morrow

January is the month of New Year’s resolutions – exercise more, stop smoking, eat more vegetables, try something new – yet “break bad online habits” is probably not a top 10 resolution, even though it likely should be. As we perform more life tasks online, such as paying bills, downloading new apps, keeping in touch with old friends and sharing funny videos, we do not always pause to think of the best ways to keep our personal data secure and private.

Following are three steps you can take to break your bad online habits and set the stage for a safe and secure 2020:

  1. Avoid using the same passwords over and over again. Granted, it is easier to remember your passwords when they are all a variation of your kids’ names, your address or your birthday, for example. However, when you recycle passwords, a hacker who uncovers one password will have much easier access into the rest of your accounts. You can save your most robust, complicated passwords for financial sites.
  2. Resist the temptation to say “yes” without more careful examination. Scam emails are getting more sophisticated, so it is always wise to verify online requests for money or account access, while many apps will ask for your location or the ability to access other account features. Offer the bare minimum of information when you launch a new app or website and say “no” to most location requests (other than maps, which need to know where you are so they can get you to your next destination).
  3. Lock your devices. Many people assume work laptops are safe and that their phones are usually nearby, thus choosing not to use “lock screen” protections. It only takes a few moments for someone to install spyware or malware on your device or to see confidential information that you have left up regarding clients or your own personal information. This is a simple step that can protect you at work and at home.

Other simple changes you can make to protect yourself include: never check your bank accounts over public wi-fi, pay attention to anti-virus updates, do not click on links or download files from suspicious or strange email addresses, and always take advantage of the free annual opportunity to check your credit report.

While online banking, shopping and communication can offer ease and convenience, they can also lead to identify theft and long-term issues: If you have not already, make online security one of your New Year’s resolutions.

We want to hear from you

Do you have a topic suggestion for an article in a future issue of Sims Insights newsletter? We would love to hear from you. Share your ideas here.

The material presented here is for information purposes only and is not to be considered an offer to buy or sell any security. This report was prepared from sources believed to be reliable but it is not guaranteed as to accuracy and it is not a complete summary of statement of all available data. Information and opinions are current up to the date of publication and are subject to change without notice. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objective of each investor and with the advice and counsel of a professional advisor. The opinions expressed by Ms. Morrow are strictly her own and do not necessarily reflect those of Herbert J. Sims & Co., Inc. or their affiliates. This is not a solicitation to buy or an offer to sell any particular investment. All investment involves risk and may result in a loss of principal. Investors should carefully consider their own circumstances before making any investment decision.

HUD Goes All-In on OZs

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By Anthony Luzzi

The 2017 Tax Cuts and Jobs Act created a new tax incentive known as Qualified Opportunity Funds, to spur new investment in low-income communities located in certain Census Tracts that are designated by the Secretary of the Treasury as Opportunity Zones, or OZs. There are approximately 8,700 OZs nationwide and in the US Territories, including Puerto Rico, where approximately 94% of La Isla Encantada qualifies.

We’ll leave it up to the legions of lawyers and accumulation of accountants to describe the mechanics of investing in Opportunity Funds and how private investments in these OZs are eligible for potentially significant capital gains tax relief. But we can tell you about some of HUD’s recent initiatives to promote development and investment in OZs through its multifamily mortgage insurance programs.

HUD has designated specialized Senior Underwriters in each region of the country to process applications for mortgage insurance for properties in qualified OZs. This will ensure expert and expedient review of these applications by HUD underwriters.

Properties located in qualified OZs will be eligible for reduced mortgage insurance application fees. Market-rate and affordable deals will see their application fees reduced by 33%, from .3% to .2%. “Broadly affordable” deals will have a steeper 66% discount on its application fees, as they will be reduced from .30% to .10%. What’s a broadly affordable project? They have at least 90% of units covered by a Section 8 Project Based Rental Assistance (PBRA) contract; or at least 90% of its units covered by an affordability use restriction under the Low-Income Housing Tax Credit program.

Last summer, HUD Secretary Carson announced that the Section 220 mortgage insurance program, historically used to finance mixed-use rental projects in specially-designated “downtown” urban-renewal areas and other areas where local governments have undertaken designated revitalization activities, will now be available in all of the approximately 8,700 Opportunity Zones.

The introduction of Section 220 into all Opportunity Zones has the potential to be a game-changer, as HUD expects it will promote more economic activity, both commercial and residential, in low-income, economically distressed areas that have not experienced a great deal of growth in recent years.

Section 220 underwrites similarly to HUD’s “mainstream” Section 221(d)(4) program for multifamily new construction and substantial rehabilitation. Both have 40-year loan amortizations, loan-to-cost ratios ranging from 85% to 90%, and debt service coverage ratios from 1.11 to 1.17. Both programs limit the maximum amount of commercial space to 25% of the total project area, but under Section 220, the maximum amount of commercial income in a project can be 30% of the total income, double the Section 221(d)(4) limit. In addition, under Section 220, 20% of the cost of project’s non-residential components can be added to the calculation of the mortgage based on statutory unit limitations; the Section 221(d)(4) limit had been 15% until recently, when it was increased to 20%.

We applaud the intent of the Tax Cuts and Jobs Act to spur economic development in disadvantaged communities, and HUD’s efforts to maximize the impact of the Act through its multifamily mortgage insurance programs. We are currently developing a mortgage insurance application for a Louisiana rental project in an urban area that also is designated an OZ. Keep tuned to this space for updates on this deal.

What You Need to Know about Electronic Wills

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By Megan Morrow

While most adults believe that wills are important, less than half of them actually have one, according to a recent survey, the chief reason being that “I have not gotten around to it yet.” Designed to make the process of creating a will easier and more accessible for all, electronic wills have previously required printing and signing on the dotted line in front of a witness. While e-signatures are common and widespread, e-notarization is not.

However, Indiana and Nevada have passed laws permitting e-signatures while Arizona and Florida are expected to adopt such legislation in 2020, with more states to follow. This sets the stage for expanded use of electronic wills that can be wholly completed online.

The Uniform Electronic Wills Act was adopted by the Uniform Law Commission to create a model for executing a will with online technology that other states can follow. In essence, those who wish to create an electronic will could do so online, then connect with a notary via video chat. The notary can talk with the individual and ask any pertinent questions before notarizing the will and returning it. The electronic will is constituted as valid, without the testator ever having to be in the physical presence of the notary.

Benefits of electronic wills include access, availability, convenience and simplicity. No matter where you live or what your schedule, you can create a valid will on your own time table.

Concerns with electronic wills center on fraud – particularly the possibility of undue influence or duress in the creation of the document. Likewise, without the advice of an attorney, individuals could use boilerplate wills that lack the details or specificity that their estate requires. A one-size-fits all will, naturally, will not work for everyone. Issues with revocation and storage also remain to be further determined.

At present, electronic wills might be ideal for younger people – only one in five Millennials have a will – or those with fewer assets and complications. With more states expected to adopt electronic will legislation in the coming years, options for online wills are anticipated to grow as well.

We want to hear from you

Do you have a topic suggestion for an article in a future issue of Sims Insights newsletter? We would love to hear from you. Share your ideas here.

The material presented here is for information purposes only and is not to be considered an offer to buy or sell any security. This report was prepared from sources believed to be reliable but it is not guaranteed as to accuracy and it is not a complete summary of statement of all available data. Information and opinions are current up to the date of publication and are subject to change without notice. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objective of each investor and with the advice and counsel of a professional advisor. The opinions expressed by Ms. Morrow are strictly her own and do not necessarily reflect those of Herbert J. Sims & Co., Inc. or their affiliates. This is not a solicitation to buy or an offer to sell any particular investment. All investment involves risk and may result in a loss of principal. Investors should carefully consider their own circumstances before making any investment decision.

Twenty Trends to Anticipate in 2020

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By Megan Morrow

What will the next year bring? What will phase in and what fill fade out in 2020?

According to prognosticators across industries, the following twenty trends will top the charts in the upcoming year:

  1. The workforce will become more global: More people of all ages will move and migrate in search of new experiences and cultures.
  2. Mobile apps will continue to redefine industries: Apps will continue to provide convenience, customization and customer service across industries.
  3. “Enough-ism:” As opposed to consumerism, the concept of enough-ism insists that we already have enough and may need fewer things, less time at work and reduced expectations in order to enjoy a more satisfied and fulfilled life.
  4. More robots and artificial intelligence: Companies will seek to save more money by using more predictive technology to meet their customers’ evolving needs.
  5. Patience is no longer a virtue. As Amazon reduces its shipping time to near-instantaneous, customers are demanding fast service and faster delivery. More companies will find a way to meet this interest for consumers who want something “right now!”
  6. Businesses prioritize worker happiness. Companies are increasingly recognizing that happy employees are productive, long-term employees and are therefore, investing in programs and incentives to this end.
  7. Cloud health: As people seek to prevent chronic disease, personal mobile tools (housed within the Cloud), can deliver customized fitness and diet solutions designed for prevention and healing.
  8. Crowdfunding will get even more crowded. Crowdfunding platforms continue to explode as a means of funding new enterprises, supporting individuals in need and creating new partnerships. Expect even more crowding in the year to come.
  9. Cybersecurity will be a threat and a focus: Cyber-threats across industries continue to plague companies and their customers, who need their information to be safe and secure. Companies must continually update software and security planning efforts to prevent ongoing threats to cybersecurity.
  10. Menus meet health needs. Diners are in search of food that offers natural enhancement and health. More healthy substitutes and plant-based foods will make their mark, and restaurants and grocery stores will continue to serve customers interested in Paleo, keto, gluten-free and other specific diet trends.
  11. Recommendations are required. User reviews and recommendations from friends will be king in the year to come. Many consumers will not buy anything without first finding the right reviews.
  12. 5G is a high five. Changing how we interact online, 5G offers incredibly fast download speed and will expand to drones, smart vehicles and other applications.
  13. Mindfulness matters. To combat the stress of a busy life, meditation, yoga and other forms of mindfulness will continue to inspire people to slow down, breathe deeply and let go.
  14. Baby Boomers will retire while Millennials move into management. These generational trends will change the face and shape of the workforce for the future.
  15. Home design will be neutral and blue. A deep shade of blue and neutrals, as well as geometric patterns and the natural world, will inspire home design in 2020.
  16. The gig economy will grow. Workers love flexibility and the ability to freelance, further enhancing this already growing trend.
  17. Consumers become partners in their own health care. Rather than simply watching and absorbing, patients will become more active and aware in their overall health care.
  18. Voice is everywhere. Alexa, Google Assistant and their cousins become even smarter and more connected in homes, offices and on the go.
  19. Politics… You probably do not need an expert to tell you that the political scene in 2020 is expected to be contentious, engaging and memorable.
  20. Retirement planning is more important than ever. As legislation and individual needs evolve, it is critical to pay attention to your retirement plans. Naturally, the start of a new year is a great chance to connect with your advisor to discuss your plans going forward.

What are you looking forward to in 2020? Doubtless, you will enjoy trends and experiences for you own top-twenty list.

Contact an Advisor

Should you have any questions about this subject matter, contact your financial advisor to help navigate any challenges you may have. 

We want to hear from you

Do you have a topic suggestion for an article in a future issue of Sims Insights newsletter? We would love to hear from you. Share your ideas here.

The material presented here is for information purposes only and is not to be considered an offer to buy or sell any security. This report was prepared from sources believed to be reliable but it is not guaranteed as to accuracy and it is not a complete summary of statement of all available data. Information and opinions are current up to the date of publication and are subject to change without notice. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objective of each investor and with the advice and counsel of a professional advisor. The opinions expressed by Ms. Morrow are strictly her own and do not necessarily reflect those of Herbert J. Sims & Co., Inc. or their affiliates. This is not a solicitation to buy or an offer to sell any particular investment. All investment involves risk and may result in a loss of principal. Investors should carefully consider their own circumstances before making any investment decision.

The Upside of Aging

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By Megan Morrow

Yes, you will have “senior moments.” And true, your short-term memory may start to fade, and aches and pains may last longer. Yet, many older Americans are discovering that there is a true upside to aging, from relationships to wisdom to free programs and tax benefits.

If you tend to brush your birthday aside or worry about the number of candles on your cake, it might be time to focus on the benefits of getting older, which can include:

  • Happiness! Older people tend to be happier. Studies show that most people are unhappiest in their 40s and 50s as they face stressors from work and family and that happiness increases as middle age passes. Happier people are also healthier, more productive and more aware of what they have.
  • Seniors are better at navigating emotions. They tend to learn how to manage social conflicts, with the abilities to imagine alterative points of view and work out compromises. What bothers someone in their 20s hardly makes a blip on the radar of someone a few decades older, according to studies.
  • Financial perks such as guaranteed minimum income, Social Security, Medicare and senior discounts. Programs such as Social Security, Medicare and Medicaid can support seniors with health insurance and a safety net. Likewise, special senior discounts can provide incentives for getting out, exploring new things and staying engaged.
  • Seniors are more likely to be involved. From politics to volunteering, seniors often have more time to participate in activities and organizations that matter to them. One in four seniors volunteers actively, according to the Bureau of Labor Statistics, and those over the age of 65 report the highest voting rate of any age group.

While stereotypes about aging persist, more people of all ages are recognizing the beauty of getting older and wiser. We also know that attitude goes a long way: Participants in a study on aging who had a positive attitude about the process also showed enhanced cognition, one more reason to focus on the upsides of aging.

No matter what your age, it is important to maintain relationships and connections with people of diverse ages and backgrounds and to cultivate a positive mindset.

We want to hear from you

Do you have a topic suggestion for an article in a future issue of Sims Insights newsletter? We would love to hear from you. Share your ideas here.

The material presented here is for information purposes only and is not to be considered an offer to buy or sell any security. This report was prepared from sources believed to be reliable but it is not guaranteed as to accuracy and it is not a complete summary of statement of all available data. Information and opinions are current up to the date of publication and are subject to change without notice. The purchase and sale of securities should be conducted on an individual basis considering the risk tolerance and investment objective of each investor and with the advice and counsel of a professional advisor. The opinions expressed by Ms. Morrow are strictly her own and do not necessarily reflect those of Herbert J. Sims & Co., Inc. or their affiliates. This is not a solicitation to buy or an offer to sell any particular investment. All investment involves risk and may result in a loss of principal. Investors should carefully consider their own circumstances before making any investment decision.

Axxcess Platform Announces Partnership with HJ Sims

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HJ SIMS: Tara Perkins, AVP Marketing Communications, [email protected] | 203-418-9049

AXXCESS PLATFORM: Alexis Brock, Marketing and Communications, [email protected] | 866-217-5607

AXXCESS PLATFORM ANNOUNCES PARTNERSHIP WITH HJ SIMS

FAIRFIELD, CT— Axxcess Platform (Axxcess), an enterprise turnkey asset management platform, announced today a partnership with HJ Sims, a privately held investment bank and wealth management firm headquartered in Fairfield, CT. HJ Sims and Axxcess have partnered  to deliver a suite of portfolio management technology for the HJ Sims private client wealth management team.

“We are thrilled about partnering with HJ Sims to equip their team with our asset management solution to help them continue to deliver a rich client experience. We are confident the HJ Sims team will find incredible value in our platform, which offers the tools and resources needed in one technology stack, further optimizing their client management approach,” says Michael Seid, CEO of Axxcess.

Founded in 1935 on Wall Street, HJ Sims is entrusted with $2.3 billion of assets under management. Herbert J. Sims, founder, was an innovative and revolutionary thinker with an imaginative and pioneering spirit. During the Great Depression, Herbert recognized opportunity to create jobs and support important infrastructure, such as county roads, natural gas systems, and bridges and causeways, through municipal financings. Today, HJ Sims supports individual investors, organizations, municipalities and institutions with expert wealth management, trading services and investment banking solutions.

HJ Sims will utilize the Axxcess platform as an end-to-end portfolio management tool, allowing their wealth management experts to serve their clients’ financial needs with a seamless and scalable approach–including aggregating accounts, identifying risk, analyzing holdings, modelling and blending investment strategies, and accessing third-party directed solutions.

“Partnering with Axxcess by incorporating their customized technology and sophisticated interface via a first-class portfolio management tool will help our advisory team deepen their client relationships. The comprehensive technology platform provided by Axxcess empowers us to revolutionize our client experience with open architecture and access to best in breed money managers,” said Dan Mullane, Managing Principal of HJ Sims.

ABOUT AXXCESS PLATFORM

Axxcess integrates third party investment managers alongside real estate, private equity, and hedged investments to create a unique UMA/TAMP Platform to transform your Wealth Management practice. The Axxcess Platform is built for the experienced Advisor looking to improve its current RIA Platform, or as an operational solution for a high caliber professional thinking of going independent and seeking a seamless transition. We offer Advisors open architecture, with a full array of wealth management and investment advisory services to move your practice upstream. Axxcess combines true alternatives like private equity, private credit, hedge funds and directed real estate alongside traditional SMA strategies.

Our focus is on 3c(1) and 3c(7) clients and the Advisors that serve them. If you are interested in providing a platform of services designed to move your business upscale, Axxcess is your solution. Contact: 866-217-5607 |https://axxcessplatform.com/

ABOUT HJ SIMS

Founded in 1935 on Wall Street, HJ Sims is a privately held investment bank and wealth management firm. HJ Sims is known as one of the country’s oldest underwriters of tax-exempt and taxable bonds, having raised $28+ billion for projects throughout the US. The firm is headquartered in Fairfield, CT, with nationwide investment banking, private wealth management and trading locations. Visit www.hjsims.com/ourstory. Visit www.hjsims.com/ourstory. Follow HJ Sims on Facebook, LinkedIn, Instagram and Twitter.

Investments involve risk, including the possible fluctuation of principal. Past performance is no guarantee of future results. HJ Sims is not affiliated with Axxcess Wealth Management. Member FINRA, SIPC.