Daily News

SPRINGFIELD — New England Public Media (NEPM) and the Academy of Music will present the Best of Valley Voices Story Slam on Saturday, April 13 beginning at 7:30 p.m. at the Academy of Music theater in Northampton. Click here to purchase tickets.

The show will conclude the ninth season of the popular, competitive storytelling series that features local storytellers sharing five-minute true stories live on stage at venues throughout Western Mass.

The best-of show features 12 local storytellers, all of whom were top-three finishers at the regular-season shows. While some storytellers featured in the Best of Valley Voices have performed on national platforms like the Moth Mainstage, the Moth Radio Hour, StoryJam, and SpeakUp, for others, telling stories with Valley Voices Story Slam is their first experience with the art form.

This is true for Josh Simpson of Shelburne, a world-renowned glass artist, who pitched the Valley Voices Story Slam line for the first time in January. He’ll be sharing his winning story about how he met his wife, NASA astronaut Cady Coleman, on the Best of Valley Voices stage. He’ll be joined by Ruthy Woodring, founding member of Pedal People Cooperative; Amy Dryansky, former poet laureate of Northampton; and nine others.

Rooted in the tradition of first-person narrative storytelling, story slams emphasize both content and performance, challenging storytellers to captivate audiences within a strict time frame of under five minutes. At the end of the show, the audience will vote on their favorite stories, and one lucky teller will be crowned the winner of season nine.

NEPM and the Academy of Music Theatre produced the first Valley Voices Story Slam as a promotion for a Moth Mainstage show at the Academy of Music in 2013.

“At the time, storytelling events were not really on the radar,” said Vanessa Cerillo, co-executive producer and co-host of Valley Voices Story Slam and senior director of Marketing and Events for NEPM, adding that Academy of Music Executive Director Debra J’Anthony approached her with the idea to try a small slam to test the market in Western Mass., since the Moth Radio Hour is aired on 88.5 NEPM. “The Moth has definitely inspired us, but we’ve really worked over the years to make Valley Voices Story Slam a truly local event, with a big following in Western Mass.”

What began as a small live-event series has evolved over the years to include a podcast and YouTube video series featuring the stories heard on stage at the live events, both produced by NEPM. In 2022, NEPM also produced a pilot season of Valley Voices Radio. Links to the podcast, YouTube, and radio episodes can be found at nepm.org/valleyvoices.

“In our ninth year of Valley Voices Story Slam, we are proud and delighted to encourage and include new voices to share their stories on stage throughout the Valley,” said J’Anthony, co-host and co-executive producer of Valley Voices Story Slam.

At the April 13 event, hip-hop DJ Pzo Pete will set the stage with a custom set that reflects the themes, stories, and storytellers throughout the show. He appears thanks to a partnership with Genuine Culture, a Holyoke-based organization connecting music enthusiasts with dynamic live shows and cultural events.

Daily News

SPRINGFIELD — 6 Brick’s Cannabis Dispensary will host a visit and event featuring NFL Hall of Famer Calvin Johnson Jr., famously known as Megatron, today, April 12, starting at 2 p.m. at 1860 Main St., Springfield.

Johnson, a 2021 NFL Hall of Fame inductee and the holder of the single-season NFL receiving record, will stop by to celebrate a collaboration between 6 Brick’s and his own, Michigan-based cannabis brand, Primitive, which is now offered in Springfield through 6 Brick’s.

“We are excited to host 2021 NFL Hall of Fame inductee Calvin Johnson Jr. and to carry his brand, Primitive,” said Payton Shubrick, CEO and founder of 6 Brick’s. “We have worked hard to make connections like this all over Massachusetts to bring synergies to our product line but also to continue to bring positive notoriety to our hometown of Springfield. This Massachusetts-Michigan connection is exciting.”

As a promotion, customers purchasing one eighth-ounce will receive a complimentary photo opportunity with Megatron.

“With a focus on connecting customers with the best products sourced across the state, these events provide wonderful opportunities for our customers and community alike,” Shubrick added. “In addition to the chance to meet Calvin Johnson Jr., attendees will have the opportunity to engage with the Primitive brand and its lineup of premium cannabis products.”

Daily News

CHICOPEE — Students at Elms College are nearing the conclusion of the spring 2024 semester and are making a difference throughout the region.

“At Elms, we strive to provide every student with at least one high-impact experiential learning opportunity during their college career,” said Jennifer Granger Sullivan, director of the Dolores Donlin Noonan ’39 Experiential Learning Program. “We want our students to be cognizant of their community and ready to step into their careers, and experiential learning is a way to make that happen.”

Elms College will highlight all of the experiential learning opportunities Elms CollegeElms CollegeElms Collegeover the past year at the annual Experiential Learning Showcase on Friday, April 26 starting at 9:30 a.m. on the Keating Quadrangle.

Elms is the only college in the area that has as a stated goal of providing every student at least one high-impact experiential learning opportunity during their tenure.

Indeed, experiential learning is one of the five pillars of the college’s 2020-24 strategic plan. Elms offers its students several options to learn outside the classroom, including internships, research projects, mission trips, service-learning experiences, study abroad, and course-based, community-engaged learning opportunities. Central to the mission and core values, the goal is for an Elms graduate to be career-ready and community-minded.

Two examples of how Elms students have made a difference are ArihJey Villion-Nahue ’25, a criminal justice and psychology double major, and Adam Rochette ’24, a social work and sociology double major.

Villion-Nahue completed her internship at the Community Justice Support Center in Springfield. Her work included observing group sessions, part of cognitive behavioral therapy, and participating in assessments that help determine how much time clients need to spend within the program based on feeling remorseful for their crimes or recognizing that crime is bad.

Rochette completed his internship with state Rep. Shirley Arriaga. He worked in Arriaga’s constituent services department, meeting with members of the community, listening to their personal needs, and calling agencies to advocate on their behalf.

Several other organizations offered Elms students experiential learning opportunities throughout the academic year, including Baystate Medical Center, Pioneer Valley Life Sciences, Polish Center of Discovery and Learning, the Springfield Thunderbirds, and Hartford Healthcare, to name a few.

Daily News

LEEDS — The VA Central Western Massachusetts Healthcare System is commemorating a century of dedication to serving U.S. veterans. Established in 1924, the healthcare system has continuously evolved to meet the changing needs of veterans, delivering compassionate care and innovative services.

To honor this significant milestone, the VA invites the community to an event on Saturday, May 11 from 9 a.m. to 3 p.m. at 421 North Main St., Leeds. The festivities will include special events, recognition ceremonies, and opportunities for veterans and their families to connect with one another, as well as food, games, and fun for the whole family.

“We are grateful for the unwavering support of our community partners, volunteers, and dedicated staff members who have contributed to our success over the past century,” said Sarah Robinson, Public Affairs officer for the VA Central Western Massachusetts Healthcare System. “As we reflect on our rich history and look toward the future, we reaffirm our commitment to serving those who have served us. Together, we will continue to uphold the promise of providing exceptional care and support to our nation’s heroes.”

For more information about the centennial celebration and upcoming events, visit www.va.gov/central-western-massachusetts-health-care or call Robinson at (413) 584-4040, ext. 3532.

Community Spotlight

Community Spotlight

planned redevelopment of the former Wilson’s department store

An architect’s rendering of the planned redevelopment of the former Wilson’s department store into a mix of retail and housing.

Virginia “Ginny” Desorgher is a retired emergency-room nurse, mother of three, and grandmother of nine.

She had no real desire to add ‘mayor of Greenfield’ to that personal profile, but Desorgher, a transplant from the eastern part of the state and, by this time last year, a veteran city councilor and chair of the Ways and Means Committee, decided that change was needed in this city of almost 18,000.

So she ran for mayor. And she won — handily. And now that she’s been in the job for three months, she can see many similarities between being an ER nurse and being the CEO of a city.

In both settings, there is a need for triage, she explained, noting that, in the ER and with this city, there is a steady stream of cases, or issues, to be dealt with, and they must be prioritized.

“You just have to take care of the thing that’s the most important at the time and try to keep everyone happy,” she said while trying to sum up both jobs.

There is also a need for communication.

Indeed, in the ER, Desorgher said she made a habit of visiting the waiting room and talking with the patients here, explaining why their wait was so long and asking them if they needed something to eat or drink or maybe some ice for their broken ankle. As mayor, she sees a similar need to communicate, whether it’s with other city officials, residents, neighbors of the Franklin County Fairgrounds, or business owners — a constituency she heard from at a recent gathering she described as a “listening session,” during which she received input on many subjects, but especially parking.

“You just have to take care of the thing that’s the most important at the time and try to keep everyone happy.”

“I thought I kind of knew how much people cared about parking,” she said. “Now I really know that parking is quite an issue.”

But while that subject remains mostly a sore spot for this community, there is momentum on many different fronts, and what Desorgher and others described as ‘game changers’ — or potential game changers — in various stages of development.

That list includes the much-anticipated adaptive reuse of the former Wilson’s department store into a mix of retail (in the form of an expanded Green Fields Market) and housing, both of which are expected to breathe new life into the downtown.

“The initial impact on foot traffic downtown from 61 new units will be extraordinary,” said Amy Cahillane, the city’s Community and Economic Development director, adding that the project is being designed to bring these new residents into the downtown area.

It also includes the prospects for the city becoming a stop on what’s being called the ‘northern tier’ of proposed east-west rail service — one that will in many ways mirror Route 2 — as well as the pending arrival of both a Starbucks and an Aldi’s grocery story near the rotary off I-91 exit 43 and a massive redesign of Main Street, now likely to start in 2027.

Together, these game changers — coupled with some new businesses downtown; efforts to inspire and support entrepreneurship, including a new pitch contest called Take the Floor; collective efforts to bring more visitors to Greenfield and the surrounding area, especially at its oldest continuously operating fairgrounds in the country; and a greater sense of collaboration among business and economic-development agencies — have created an upbeat tone in this community, with great enthusiasm for what comes next.

Ginny Desorgher

Ginny Desorgher says she wasn’t keen on adding ‘mayor’ to her personal profile, but became convinced it was time for a change in Greenfield.

“What I’m most excited about is that we now have all these people who are thinking collectively about how we can make the most of this momentum,” said Jessye Deane, executive director of the Franklin County Chamber of Commerce and Regional Tourism Council.

For this latest installment of its Community Spotlight series, BusinessWest takes an indepth look at the many developing stories in Greenfield.

 

Tale of the Tape

And we start with a somewhat unusual gathering downtown on the Saturday before Easter.

Indeed, Desorgher, Cahillane, Deane, and others spent several hours in the central business district cleaning the bases of streetlights, an undertaking organized by the Greenfield Business Assoc. (GBA).

All three had somewhat different takes on what they were expecting from this exercise, but the consensus is that it was more difficult, and time-consuming, to remove the remnants from countless posters for events — and the tape used to affix them to the structures — than they thought.

But while the work was a grind, they all said it was important, worthwhile, and much more than symbolism. And it even inspired a thought to create one or more community bulletin boards so individuals and groups would have a place to promote their events other than light poles.

Deane said the cleanup was an example of a greater sense of collaboration within the community and its many civic and business organizations, from officials in City Hall to the chamber; from the GBA to the Franklin County Community Development Corp. (FCCDC).

“What I’m most excited about is that we now have all these people who are thinking collectively about how we can make the most of this momentum.”

“There’s new energy taking place on a partnership level, and it was nice to see Greenfield leaders like the mayor come down and take action,” said Deane, adding that the cleanup was just one example of this energy. Another was the aforementioned listening session, which she said was likely the first of its kind.

“The business owners and community leaders really appreciated having the opportunity to have that kind of forum with the mayor — an open forum where they could say, ‘here’s what’s going really well, here’s what we think needs work, and how are we all going to work together to bring Greenfield forward?’ That was great.”

The streetlight cleanup project and listening session represent just two of many forms of progress, with some steps larger and more significant than others, said those we spoke with, but all critical to that sense of momentum and building toward something better.

And there are many reasons for optimism, especially what most refer to simply as the ‘Wilson’s project.’

For decades, the store represented something unique — an old-fashioned department store in an age of malls and online shopping. When it closed just prior to the pandemic, it left a huge hole in the downtown — not just real estate to be filled, but the loss of an institution.

There’s no bringing back Wilson’s, but the current plan, a proposal put forward by the Community Builders and Green Fields Market, a popular co-op currently located farther down Main Street, will bring retail and housing, specifically roughly 60 mixed-income units, to Main Street.

The housing units, as noted earlier, are expected to bring foot traffic and more vibrancy to the downtown, said Cahillane, noting that this will be foot traffic that doesn’t leave at 5 o’clock and should comprise a good mix of age groups, thus providing a boost for the growing number of restaurants and venues like the Hawks & Reed Performing Arts Center.

“The Community Builders is being thoughtful in the way they’re designing this space to encourage folks not to just exit out a rear door, get in their cars, and leave,” she explained. “Instead, they’re going to make it so it’s very easy to get from the apartments onto Main Street; this encourages them to come out into the community.”

Greenfield at a glance

Year Incorporated: 1753
Population: 17,768
Area: 21.9 square miles
County: Franklin
Residential Tax Rate: $20.39
Commercial Tax Rate: $20.39
Median Household Income: $33,110
Median Family Income: $46,412
Type of Government: Mayor, City Council
Largest Employers: Baystate Franklin Medical Center, Greenfield Community College, Sandri
* Latest information available

Meanwhile, several other properties downtown are in various stages of bringing upper floors online for housing, Cahillane explained, adding that this movement will help ease a housing crunch — which she considers the most pressing issue in the community — and generate still more foot traffic, which should help bring more businesses to the downtown.

There are already some recent additions in that area, including a computer-repair store on Federal Street, and, on Main Street, Sweet Phoenix, an antiques and crafts store, and Posada’s, a family-owned Mexican restaurant that the mayor said is “always packed.”

Meanwhile, the plans for Aldi’s and Starbucks, both in the early stages, are generating some excitement, the mayor added, noting that the latter, especially, will provide motorists on I-91 with yet another reason to get off in Greenfield and perhaps stay a while.

 

Getting Down to Business

These additions bolster an already large and diverse mix of businesses in the city, which still boasts some manufacturing — though certainly not as much as was present decades ago — as well as a healthy mix of tourism and hospitality-related ventures, service businesses, nonprofits (Greenfield serves as the hub for the larger Franklin County area), and several startups and next-stage businesses in various sectors, from IT to food production.

One of those long-standing businesses is Adams Donuts on Federal Street, now owned by Sabra Billings and her twin sister, Sidra Baranoski.

Originally opened in the ’50s, Adams Donuts is an institution, well-known — and in many cases revered — by several generations of area families. There have been several owners not named Adams, Billings said, adding that the one before her closed the establishment during COVID with the intention of reopening, but never did.

The two sisters stepped forward to keep a tradition alive — and work for themselves instead of someone else.

“It was kind of crazy; we’d never owned a business before, but here we were buying a shuttered business in the middle of a pandemic,” Billings said. “But it’s been really special to be part of the community, and what we call the ‘Adams community’; there are generations from the same families that are customers.”

Thus, they’re part of what could be called a groundswell of entrepreneurship in Greenfield and across Franklin County, one that John Waite, executive director of the FCCDC, has witnessed firsthand over the past 24 years he’s spent in that role.

He said there is a large, and growing, amount of entrepreneurial energy in Greenfield and across the county, largely out of necessity.

Indeed, since the larger businesses, most of them manufacturers, closed or left, the region and its largest city are more dependent on smaller businesses and the people who have the imagination, determination, and ideas with which to start them.

And the FCCDC is supporting these business owners in many different ways. The agency has several divisions, if you will, including direct business assistance — everything from technical assistance to grant funds to support ventures of various sizes — to a venture center that now boasts six tenants, to the Western Massachusetts Food Processing Center, which boasts 66 active clients processing, canning, and jarring everything from salsa to applesauce to fudge sauce.

Overall, the FCCDC served more than 350 clients in FY 2023, loaned out nearly $3 million to 31 businesses, and carried out work that resulted in the creation of 70 jobs and the preservation of 114 jobs, said Waite, adding that one of its more impactful initiatives is its loan program.

The loans vary in size from a few thousand dollars to $300,000, and the agency can work with area banks if a venture needs more. They are offered to businesses across a wide spectrum, including hospitality, a sector where there is often need, Waite noted, citing the example of 10 Forward, a unique performing-arts venue and cocktail bar on Fiske Avenue in the downtown.

“A lot of musicians need a place to play, and they’ll sign them up, and they’ll do comedy once in a while,” he explained, adding that the venue is part of an evolving downtown, one that now has more things happening at night and more events and programs to attract the young people who provide needed energy.

Meanwhile, Take the Floor, a CDC initiative that involves the entire county, is another avenue of support. The Shark Tank-like pitch contest has attracted dreamers across the broad spectrum of business, and the top three performers at three different contests — the latest was in Orange — will compete for $10,000 in prizes in the finale at Hawks & Reed.

“Developing our entrepreneurial infrastructure is very important to this region,” Waite said. “We want to make sure people know where they can go for resources to help them succeed.”

Where Are They Now?

Where Are They Now?

Will Dávila

Will Dávila says he’s always sought out career opportunities where he can make an impact.

 

Will Dávila says he’s learned from experience — and some not-so-pleasant experiences, to be more precise — that, when a job isn’t working for you, you don’t stay in it.

And in his case, ‘not working’ translates directly to “you don’t feel fulfilled, you don’t feel like you’re having an impact or making a difference, and it just doesn’t look like that’s going to be happening.”

Such was the case with his short tenure serving as campus executive director of the UMass Center at Springfield a decade or so ago. He envisioned the role as one where he could “bring education to this community and really promote higher education as an opportunity for kids like me, who grew up in Springfield, in the projects, and had limited opportunities.”

The reality was different as the facility struggled to ramp up enrollment.

“Instead, I spent almost all my time giving tours,” he told BusinessWest, noting that the facility, created on the mezzanine level at Tower Square, had just opened, and many business and civic leaders, as well as the press, wanted to see it. “I said, ‘I’m a social worker. I’ve been in human services my whole career. This is not a good use of my time.’”

Coincidentally, one of those who eventually came in for a tour was Jim Goodwin, president and CEO of the Center for Human Development (CHD), and during that visit, the two started talking, a discussion that eventually led to Dávila becoming vice president of Clinical Services for the agency.

He would spend a few years in that role before becoming a nonprofit consultant and executive advisor, then leading two nonprofits, and then returning to CHD last October to assume the role of vice president of Diversion, Shelter & Housing, a role where he believes he’s making a deep impact.

Overall, it’s a been a winding journey with a few of those jobs that weren’t working, but, overall, it’s been a rewarding career in the broad realm of health and human services, one that serves as an appropriate and poignant starting point for a new series we’re launching at BusinessWest called, appropriately enough, ‘Where Are They Now?’

“Part of the unfortunate reality is that they move through a continuum of services. So I consider myself privileged to have worked in many parts of that continuum.”

As the magazine prepares to celebrate its 40th anniversary of serving the region, and as some of its recognition programs — which have brought hundreds of individuals and groups into the spotlight — approach two decades of existence, there is a need to update many of the stories we have told over those years.

We begin with Dávila, who started his career with nonprofits focused on health and human services more than 20 years ago, when he became Metro Boston regional manager for Devereux Advanced Behavioral Health. Then came his first stint at the agency now known as Helix Human Services, then known as the Children’s Study Home.

But it was a few years later, when he was serving as director of Outpatient Services at the Gándara Center in Springfield, when he was first recognized by BusinessWest, as a member of the 40 Under Forty class of 2013.

Soon thereafter came that short stint at the UMass Center at Springfield, his first stint at CHD, work as a consultant, a return to what is now Helix as executive director and CEO (when that agency was being rebranded and also being recognized by BusinessWest as a Difference Maker), and then a very short stint — a cautionary tale, as he calls it — as CEO of the Villa of Hope in Greece, N.Y., another of those jobs that just wasn’t working, this time for different reasons.

“The board was not really forthcoming about the real condition of the organization,” Dávila said, adding that what he found did not match what he was told in interviews, regarding everything from the budget — the $20 million agency was trending toward a $4 million deficit for the fiscal year soon to come to a close — to the workforce, to the vacancies within its programs.

He is now back at the agency he calls home (this is actually his third stint there), in a role where he oversees a staff of roughly 240, an annual budget of $34 million, and a division with dozens of family and individual units, several emergency shelter hotels, and other housing options.

This latest assignment enables him to add another line, another area of focus — in this case housing — to his résumé and, far more importantly, make an impact and a difference in people’s lives.

“It’s an amazing department and an amazing service,” Dávila said. “It’s something different, but, surprisingly, it’s not all that different. A lot of the folks we’re dealing with are the same people we’re assisting in residential, in children’s services, foster-care and outpatient services, and substance-abuse services.

“Part of the unfortunate reality is that they move through a continuum of services,” he went on. “So I consider myself privileged to have worked in many parts of that continuum and actually lead some of them, so this is a nice addition to my portfolio, if you will.”

That’s where Dávila is now — and where he plans to be for some time, because this job definitely does work for him.

 

—George O’Brien

Construction

Taking Flight

Falcon Landing will be located just north of Westfield-Barnes Regional Airport.

Falcon Landing will be located just north of Westfield-Barnes Regional Airport.

In a location that once thrived as part of a computer manufacturing facility for Digital Equipment Corp., a joint-venture development team of Winstanley Enterprises LLC and NorthPoint Development is moving forward with approved plans to build a general warehouse and distribution facility. The recently obtained state and local approvals for the sought-after location come as the warehouse and distribution sector continues to thrive.

Falcon Landing is an approved 524,000-square-foot, state-of-the-art general distribution facility that will be constructed for one or two tenants adjacent to Westfield-Barnes Regional Airport on Falcon Drive in Westfield. The 126-acre parcel will include 362 parking spaces to accommodate two employee shifts and 322 tractor-trailer spaces. The site boasts easy accessibility and is located about two and a half miles from Mass Pike exit 41.

Last August, the joint-venture development team focused its multi-disciplinary group of planners, engineers, and architects on developing a scaled-down distribution facility at this location. After they listened to neighborhood concerns, the site plan incorporated a meticulously designed robust stormwater-management plan and preservation of mature trees for buffering, and also eliminated any connections to North Road. The project received state approval in October and local approval in February.

“Our project team worked very hard to put forward a sensible plan that is rooted in community input, prioritizes protection of sensitive resources, and delivers economic-development benefits to Westfield,” said Adam Winstanley, principal of Winstanley Enterprises. “We are excited to move the project forward.”

Marketing efforts have ramped up to secure a suitable tenant; however, the warehouse will be built on spec if a tenant is not secured prior to construction. With the needed approvals in hand, the team will continue to coordinate closely on finalizing both building-design elements and traffic-mitigation improvements.

“Falcon Landing is an ideal location for companies looking to grow their business at a brand-new, state-of-the-art facility that offers easy accessibility from the Mass Pike,” said Andrew Villari, Development manager for NorthPoint Development. “We are proud to be a part of this project and excited about the future in Westfield.”

“Our project team worked very hard to put forward a sensible plan that is rooted in community input, prioritizes protection of sensitive resources, and delivers economic-development benefits to Westfield.”

Winstanley Enterprises, a family-owned and operated commercial development company, has been a property owner in Westfield since 2018, when it purchased 1111 Southampton Road.

Winstanley owns and operates 12.5 million square feet of commercial real estate and is one of the largest local landlords of commercial properties in New England. The company believes its local presence and commitment to listening to the community is bolstered by the national experience of NorthPoint Development.

Established in 2012, NorthPoint is a privately held real-estate operating company specializing in developing, acquiring, leasing, and managing class-A industrial and multi-family properties. It currently has a 150.2-million-square-foot industrial portfolio, about 5,400 multi-family units developed and managed, and $19.5 billion in assets under management.

The project team supporting NorthPoint Development and Winstanley Enterprises on Falcon Landing includes Epsilon Associates, VHB, Good Earth Advisors, and Watkins Strategies.

Wealth Management

Why the Assignment Is Best Left to a Professional

By Linda Dagilus, Steve Hamlin, and Janice Ward

 

Linda Dagilus

Linda Dagilus

Steve Hamlin

Steve Hamlin

Janice Ward

Janice Ward

Years ago, they might have been known as an executor or, in the case of a woman, an executrix. And you still hear those terms occasionally.

But today, the phrase commonly used in reference to an individual handling someone else’s estate is ‘personal representative.’ And while the title may have changed, the responsibilities haven’t. They are significant, and there may actually be more of them today — a list that includes everything from the administration of a will to the handling of funeral arrangements; from preparing a final accounting and tax return to selling an estate; from investigating all claims against an estate and handling them accordingly to, yes, finding a home, or homes, for the pets of the deceased.

This broad and imposing range of responsibilities explains why those with estates, and especially large estates or those with complex assets, should think carefully about whom they choose to be their personal representative to administer their estate after they pass.

While family members have historically handled these duties, increasingly individuals are leaving these matters to third-party professionals, specifically trust officers — and for very good reasons. The most basic is the often-uncomfortable reality that settling an estate can be an unsettling experience, one that can potentially damage and destroy personal family relationships and result in mistakes that a professional might otherwise avoid.

But there are many reasons why individuals are increasingly looking to professionals to be personal representatives. First, they may not have family to turn to, or family they would consider qualified. Indeed, this is a considerable amount of work, some of it complex in nature, to put on someone who is not an expert in this area and has never done it before.

“Those with estates, and especially large estates or those with complex assets, should think carefully about whom they choose to be their personal representative to administer their estate after they pass.”

Also, many people simply don’t want to saddle a loved one with all that responsibility, especially at what will likely be a difficult time for them emotionally and when they are also likely juggling many other aspects of life and work. Additionally, choosing one family member over another to be your personal representative can often lead to conflict with the family member(s) not chosen.

Many of those turning to professionals, such as the Estate Settlement team within Greenfield Savings Bank Wealth Management and Trust Services, are recently divorced or surviving spouses who have found themselves suddenly in charge of their household’s financial savings and investments that had previously been handled primarily by their spouse.

The full list of responsibilities handled by a personal representative helps explain why it is best left to a professional and not a family member. It starts with pets, especially when there is no one else living with the recently deceased individual, but also includes everything from getting mail stopped and forwarded to a new address to securing the property to changing the locks and shutting off the water.

But it quickly proceeds to other, more complex financial matters that include:

• Entering the will into probate and assuring that all legal requirements of the settlement process are completed;

• Accounting for all personal property and arranging for the support of the family;

• Collecting all life insurance, rents, and other amounts due;

• Obtaining appraisals of the property for required tax purposes;

• Preparing a final accounting of the estate; and

• Distributing the estate as directed by the will.

While choosing a family member may seem logical and respectful, and some family members may actually volunteer for this work, most individuals are not fully qualified to handle such duties, and even if they are, they would often be placed in a difficult situation where relationships can become strained and matters can be delayed.

There is often a perception of unfairness if one family member is making all the decisions that affect the personal finances and tax consequences of each beneficiary. For example, is this individual liquidating all the assets — which might cause significant capital gains to family members who pay high tax rates — and are those decisions equally fair and appropriate for all affected parties?

It is a fact: estate administration is complicated and time-consuming. Money can, and often does, complicate relationships. Money can make people do things they wouldn’t ordinarily do. Money can breed distrust — and worse.

And that’s why the work of a personal representative is best left to a professional.

 

Linda M. Dagilus, vice president and trust officer, has more than 25 years of experience in the financial-services industry. Stephen B. Hamlin, CTFA, senior vice president and senior trust officer, is a certified trust and fiduciary advisor with more than 35 years of experience in trust banking and investment management. Janice E. Ward, Esq., CFP, first vice president and trust officer, is an attorney and certified financial planner with more than 20 years of experience in trust banking and wealth management.

 

Wealth Management

Securing the Future

By Patricia M. Matty, AIF

 

With the Secure Act 1.0 of 2019 and the updated Secure Act 2.0, which went into effect in 2023, there have been many important changes to the rules and regulations for retirement saving and investing over the past five years.

While the elimination of the ‘stretch IRA’ was a key feature of the first Secure Act, the update provides many enhancements for investors. (The so-called stretch IRA refers to leaving an IRA to a non-spouse beneficiary who could then ‘stretch’ distributions from the IRA over their lifetime, thus enhancing the tax-deferral feature of the IRA.)

As financial planners, one of our goals is to help clients save as much as possible for retirement in the most tax-efficient manner. This usually involves maxing out retirement-plan contributions (workplace plans like the 401(k) and 403(b), as well as IRAs), as well as deferring the income associated with retirement-plan withdrawals as long as possible.

“As planners, these changes often prompt investigating alternative ways to pass on wealth earlier to heirs, including layering in additional diversification with investments spread between retirement accounts, Roth IRA/401(k) plans, and non-retirement assets.”

Some key changes associated with these goals are summarized as follows:

• Starting in 2025, the workplace ‘catch-up’ contribution for individuals ages 60-63 will increase to $10,000 per year (from $7,500). The IRA catch-up contribution, which is now set at $1,000, will be indexed to inflation starting in 2024. For high-income earners, 2026 will see a change that restricts catch-up contributions in workplace plans to a Roth account in after-tax dollars.

• RMDs (required minimum distributions) from retirement accounts start at age 73, thanks to the Secure Act 2.0. Starting in 2033, this will increase to age 75. For retirees that have sufficient income and assets in non-retirement accounts, delaying RMDs as long as possible is generally preferred.

• The penalty for not taking your RMD decreased to 25% from 50% (of the RMD amount). This penalty will decrease to 10% if the IRA owner withdraws the RMD and files a corrected tax return in a timely manner. While these penalties are quite rare in our experience, the previous 50% rate was severe and too punitive.

Younger workers and their priorities also received some beneficial changes to the rules and regulations:

• Starting in 2025, businesses adopting new 401(k) and 403(b) plans must automatically enroll eligible employees at a contribution rate of at least 3%. We’ve found that inertia is the enemy when it comes to saving for retirement. Getting younger workers started on the habit of saving and investing is critical to reaping the benefits of tax-deferred growth over the long term.

• Student-loan debt and payments are often cited as a reason for not contributing to a workplace retirement plan. Starting in 2024, employers will be able to match employee student-loan payments with matching payments to a retirement account.

• For 529 college savings plans that have been open for at least 15 years, ‘unspent’ plan assets can be rolled over into a Roth IRA for the beneficiary (subject to a lifetime limit of $35,000).

These selected highlights represent a small sample of the changes brought about by Secure Act 2.0. On balance, we believe the changes provide enhancements to the ability of investors and savers to provide for a prosperous retirement.

As planners, these changes often prompt investigating alternative ways to pass on wealth earlier to heirs, including layering in additional diversification with investments spread between retirement accounts, Roth IRA/401(k) plans, and non-retirement assets.

Eliminating the stretch IRA is inducing non-spouse beneficiaries to take mandatory distributions out over a five- or 10-year period versus over their lifetimes. This can significantly increase the beneficiary’s tax bracket, which may not have been the intention of the financial/estate plan.

Here are just a few options your financial planner can help you look at to navigate these changes:

• Depending upon your own personal tax bracket, you may want to take larger IRA distributions and gift funds to your children before you pass.

• Convert pre-tax retirement assets to Roth IRAs.

• Diversify your savings between qualified and non-qualified accounts.

• If you give to charities, you can donate directly from your retirement accounts once you hit age 70. These gifts and distributions are tax-free to you and have zero tax implications on your income

• Take larger retirement-plan distributions (speak with your accountant and your financial advisor first to ensure this may be a good option, as taking larger distributions may also impact your Medicare premiums), and make annual gifts to your children while you are alive. If you are married, you have a higher AGI than if you are single in later years.

As is always the case, consult your financial professional or tax preparer to see how the changes in the Secure Act 2.0 affect your individual circumstances. This information is provided for informational purposes only and should not be construed as advice. St. Germain Investment Management does not offer any tax or legal advice.

 

Patricia M. Matty is senior vice president, financial advisor, and financial advisory director for St. Germain Investment Management.

Wealth Management

Stay the Course

By Jeff Liguori

 

One trillion dollars. That number of zeroes, 12 in all, is difficult to comprehend.

But in the world of investing, ‘trillion’ is becoming more common. Market capitalization, computed by multiplying the number of shares outstanding by the current price of that company’s stock, is a standard measure of valuation for a public company. There are currently seven stocks with a valuation that exceeds $900 billion: Microsoft, Apple, NVIDIA, Amazon, Meta (formerly Facebook), Alphabet (formerly Google), and Berkshire Hathaway, in order of size.

The valuation of those seven companies is currently $15.9 trillion in aggregate. At the start of 2020, the valuation of the same seven companies combined was roughly $5.6 trillion, and only two companies — Apple and Microsoft — had exceeded $1 trillion in market capitalization.

We will refer to these seven companies as the ‘Super Seven.’

Jeff Liguori

Jeff Liguori

“Comparing the output of a country to that of a technology company is a fun exercise, and not at all realistic, but it does illustrate the magnitude of these trillion-dollar behemoths.”

In a little more than four years, despite a global pandemic which took the S&P 500 down by nearly 30% in a month, the market cap of the Super Seven has increased by almost 300%, while the S&P 500 has returned almost 74%.

For perspective, the gross domestic product (GDP) of the U.S. is approximately $28 trillion, up from $22 trillion at the end of 2019, an increase of 27%. The U.S. workforce is about 134 million people, which means each worker contributes, on average, $209,000 to annual GDP. In contrast, the Super Seven have a total of 3.06 million employees (Amazon is more than half of that total) and should generate about $2.5 trillion in revenue this year, which equates to $827,000 of output per employee. Employees of the Super Seven contribute 300% more than the average employee in the U.S. contributes to our GDP.

If Microsoft was a country, it would be the sixth-largest in the world, slightly smaller than the GDP of India but larger than that of the United Kingdom. Apple would be the eighth-largest, in between the economies of France and Russia. If the two companies merged to form the country of Microapple, it would be the third-largest economy at nearly $6 trillion dollars, with fewer than 400,000 residents.

OK, maybe these are not fair comparisons.

Other than Berkshire Hathaway, the seven companies are technology-focused, which by their nature require fewer workers because the businesses are highly efficient. The U.S. economy is dominated by service jobs, and approximately 80 million of the 134 million employed are paid hourly. Comparing the output of a country to that of a technology company is a fun exercise, and not at all realistic, but it does illustrate the magnitude of these trillion-dollar behemoths.

What can this top-heavy market indicate about future returns? Jason Goepfert of Sundial Capital Research, which uses huge data sets to help frame market direction, looked at the performance of equally weighting the 500 stocks in the index versus the actual performance of the S&P 500, where it is weighted by size, thus dominated by the Super Seven.

In the past three years, the equally weighted index is up 25% versus 36% for the S&P 500. The gap widens further, a 75% versus 98% return, respectively, in the past five years. It is the second-widest spread since 1958. When was the gap higher? In late 1999, as the dot-com bubble was nearing a climax. Some market analysts are concerned that the artificial-intelligence boom, which has fueled growth in these large technology companies, is the new dot-com bubble.

Despite the average stock underperforming the S&P 500 for the past few years, there may be reason for optimism. My firm, Napatree Capital, put out commentary (click here) in October of last year highlighting shares of Target (TGT) as an example of a stock that could play “catch-up” and help fuel the rally. We noted that “shares of Target (TGT) are trading 25%-30% below its historic average valuation, and more than 50% below its peak valuation. The stock is down 27% year to date, after losing 34% of its value in 2022. If such stocks start to rally, it should be healthy for the broader market.”

Since Nov. 1 of last year, the price of Target’s stock has rallied nearly 65%. And it is a similar story for other bellwether stocks such as Citigroup (C), Delta Airlines (DAL), Home Depot (HD), Bank of America (BAC), Disney (DIS), and others, which had dismal performance leading into the third quarter of last year but have since beaten the S&P 500 by a wide margin.

If you’re frustrated by the returns in your portfolio, it implies that you don’t own large positions in a small number of stocks, mostly in the same sector. But stay the course. Prudent investing is built on broad diversification across a range of categories. Owning the underperformers may yield excellent results just yet. Following the tech bubble in 1999, those forgotten, boring, blue-chip-type stocks outperformed their tech brethren for nearly a decade.

Maybe past performance is an indication of future results.

 

Jeff Liguori is the co-founder and chief Investment officer of Napatree Capital, an investment boutique with offices in Longmeadow as well as Providence and Westerly, R.I.; (401) 437-4730.