Biz Tips & Industry News Archives

AGAWAM — Farmers in Western Mass. are invited to apply for Local Farmer Awards of up to $2,500. These awards are for capital/infrastructure improvement projects related to growing, harvesting, and processing that will help farms compete in the marketplace. The Harold Grinspoon Charitable Foundation, in partnership with Big Y and with the support of other funders, is entering the ninth year of the awards program, which has helped more than 235 farmers carry out a total of 474 projects.

Some examples of how the awards have been used include electric fencing, no-till equipment, irrigation improvements, frost-free water systems, feed troughs, and shade cloth for greenhouses.

“Farmers don’t typically ask for help,” philanthropist and project founder Harold Grinspoon said. “They are genuinely appreciative of these awards and use the money in creative ways for projects to help their farms grow.”

To be eligible, farms must have gross sales of $10,000 or above and either be a member of buy-local organizations Berkshire Grown or Community Involved in Sustaining Agriculture (CISA) or farm in one the four counties of Western Mass. For a full list of eligibility requirements and application information, farmers are encouraged to visit www.farmerawards.org. The deadline for applying is Jan. 31.

Business Confidence Falls Again in June

By BusinessWest Staff July 5, 2022

Biz Tips & Industry News Business Management Daily News News

Confidence among Massachusetts employers edged close to pessimistic territory in June as businesses struggled with surging inflation and concerns about a possible recession.

The Associated Industries of Massachusetts Business Confidence Index (BCI) fell 3.9 points to 50.8. The Index now rests 12.6 points lower than a year ago and marginally higher than the 50 mark that separates an optimistic from a pessimistic view.

The decline, which left the Index at its lowest point since December 2020, reflects particular concern about the course of both the state and national economies. The BCI’s US Index plummeted 9.1 points for the month and more than 20.3 points for the year.

The Central Massachusetts Business Confidence Index, conducted with the Worcester Regional Chamber of Commerce, fell from 57.5 to 49.0. The North Shore Confidence Index, conducted with the North Shore Chamber of Commerce, dropped from 61.8 in May to 52.6 last month.

The confidence numbers came at a time when 76% of CEOs globally tell The Conference Board that they expect a recession by the end of 2023 or believe it’s already here. The economy appears to be growing, but employers face growing struggles with soaring fuel prices, supply chain disruptions and financial market volatility.

“Central banks around the world are raising interest rates with new urgency, hoping to cool inflation by slowing growth of aggregate demand and achieving a closer balance with supply,” said Sara L. Johnson, Chair of the AIM Board of Economic Advisors.

“Capital markets remain open, but financing costs are rising for businesses, consumers, home buyers, and governments. The year ahead will bring a more difficult environment for builders and capital good producers.”

The constituent indicators that make up the Index were uniformly lower in June.

The Massachusetts Index assessing business conditions within the Commonwealth shed 6.6 points to 47.2, down 16.4 points since June 2021. The US Index measuring conditions throughout the country fell to 38.6.

The Current Index, which assesses overall business conditions at the time of the survey, declined 3.3 points to 53.4. The Future Index, measuring projections for the economy six months from now, lost 4.6 points to 48.1.

The confidence employers have in their own companies declined 2.6 points to 56.0, ending the month 8.7 points lower than in June 2021.

The Manufacturing Index fell 5.2 points to 49.3, 11.6 points less than a year ago.

Small companies (52.6) were more optimistic than large companies (50.2) or Medium-sized companies (49.8).

Elmore Alexander, Dean Emeritus of the Ricciardi College of Business, Bridgewater State University, and a BEA member, said the Russian invasion of Ukraine and COVID-19 lockdowns in China have added to the supply chain woes experienced by Massachusetts employers.

“Elevated demand continues to collide with supply restraints and most economists believe inflation will remain above the Federal Reserve’s 2% target through the end of 2023,” Alexander said.

AIM President and CEO John R. Regan, also a BEA member, noted that recent polls find that among all of the vexing issues facing the commonwealth, Massachusetts residents remain most concerned about the economy and jobs, inflation, housing costs and taxes.

“The citizens of Massachusetts clearly understand that economic growth and jobs form the basis of their ability to establish a stable life and raise a family. The emphasis on jobs is especially notable at a time of an acute labor shortage that has allowed workers participating in the ‘Great Resignation’ to pretty much have their pick of new positions,” Regan said.

State Maintains R&D Leadership, Says New Innovation Economy Index

By BusinessWest Staff June 28, 2022

Biz Tips & Industry News Coronavirus COVID-19 Daily News Economic Outlook

BOSTON – The echoes of the COVID-19 global health crisis were apparent in the latest edition of The Index of the Massachusetts Innovation Economy, a report that tracks the strength of the Commonwealth’s tech and innovation sectors.

Even with net job losses in nine of 11 key tech sectors in 2020, the Massachusetts tech and innovation economy continued to be a top state in terms of total R&D investment ($36 billion in 2018, second only to California), record venture capital investment ($15.8 billion in 2020), and increased investment in higher education per student (up 29.4% since 2015).

Despite the data capturing the worst of the COVID-19 recession, all three of the sectors below were well above their 2015 employment levels, with the first two having actually added jobs during 2020:

• Biopharmaceuticals and Medical Devices (+37.8% since 2015);

• Scientific, Technical, & Management Services (+25.4% since 2015); and

• Software & Communications Services (+16.8% since 2015).

The 2021 Index found the following areas were bright spots for the innovation economy:

Leading Higher-Ed:

• A marked increase in higher education investment, with appropriations per student up 29.4% since 2015, greater than any of the LTS save for California;

• Highest number of degrees conferred per capita among the LTS (18.1 per 1,000 residents);

• 47.6% of the workforce has at least a bachelor’s degree, higher than any other state and well above the U.S. average of 34.4%.

R&D and VC Investment Rising:

• Massachusetts is one of the leading producers of patents per capita, with 1,275 utility patents per million residents in 2020, second in the LTS;

• Of the 5 LTS with more than $1 billion in annual investment in 2015, Massachusetts saw the fastest growth in VC funding, up 88.3 percent from 2015 to 2020.

Healthcare Research:

• $3.3 billion in National Institutes of Health (NIH) funding in Massachusetts in 2020;

• $5,659 of NIH funding per $1 million GDP;

• 11 Massachusetts research institutions received more than $100 million in NIH funding in 2020.

“While the pandemic’s impacts were stark, the investments made by the private and public sectors continue to fuel growth in the areas that are driving our innovation economy,” said Pat Larkin, director of the Innovation Institute at MassTech. “On education, we’ve seen the clear rise in higher-ed investment by the state, which is a key driver for our talent development pipeline. The Index also points to the potential for further strengthening, as the state expands Innovation Pathways programs at the K-12 level, efforts which will further train students for careers in advanced manufacturing and robotics, which desperately need talent.”

All 10 leading tech states saw net job losses in key sectors during 2020, including in Massachusetts. Since 2015, the Commonwealth’s innovation job losses were concentrated in a few key manufacturing sectors, including: Diversified Industrial Manufacturing (- 6.9%); Advanced Materials (-7.4%); and Computer & Communications Hardware (-16.9%).

To download a copy of the Index of the Massachusetts Innovation Economy, or to access interactive copies of the graphs and charts from the report, visit masstech.org/index.

Parents

By Columnist August 1, 2019

Local Business Advice

The Wealth Technology Group

By: Gary F. Thomas, JD, LLM, CLU, ChFC, AIF, CDFA

Earlier this year I received a call from “Jen”, a concerned client. She had just learned from her older brother that her widowed, elderly mother, who lives in Rhode Island, had fallen a couple of days before and had been admitted to the hospital with broken ribs and several fractures. Even though Jen was in the regular habit of calling her mother once or twice a week, the fall occurred shortly after their last conversation and was a shock.

Jen immediately dropped what she was doing and drove to the hospital. While visiting she perceived that her mother was suffering from more than the fractures, but was also somewhat disoriented, which Jen assumed was because of medications that were administered to alleviate pain.

When asked why she was not notified of the fall immediately she was told that mother and her brother who lived nearby just “didn’t want to worry her”. Of course Jen was worried, not only about her mother’s health but also about her mother’s finances, and whether any plan was in place to prepare for the unexpected. All along she had assumed that her brother, who was a retired comptroller, had everything under control.

When Jen questioned her brother, he said that even though he had dealt with finances for his entire life, he was uncomfortable talking to Mom about money, because it was too close to home. He wasn’t sure what planning their mother had done, whether or not she had even the most basic legal documents, and if so where they were located.

“They learned that their mother, who had lost her husband more than twenty years earlier, had never updated the documents after their father’s death.”

Unfortunately, they were forced to have the difficult conversation about money with their mother while she was still in the hospital, admittedly, not an ideal time. They learned that their mother, who had lost her husband more than twenty years earlier, had never updated the documents after their father’s death. Mom said that the lawyer who had prepared them had retired long ago, and she wasn’t sure where the originals were. More than that, she was not quite certain of her banking and financial accounts because the names of the institutions had changed so many times over the years, and she found it difficult to keep track of what she owned. Mom said she had just been assuming that, because of her son’s financial background “he would take care of things” should any health or financial issues arise.

Fortunately since her accident, Mom has returned home and appointments were made for the whole family to meet with a local attorney to complete some basic estate and elder law planning. Now, both Jen and her brother have located Mom’s insurance policies, financial accounts, and credit cards, and keep track of accounts monthly. They have updated the beneficiaries on life insurance and retirement accounts, which are now set up to avoid probate. For the first time, they have a clear picture of their mother’s assets, income and expenses.

Unfortunately, many incidents like this don’t quite turn out as well. Lack of planning and lack of time can cause a financial disaster. Often costly financial decisions are made in the heat of the moment and without full knowledge of the resources available, tax consequences, or the affect of the parent’s ongoing needs.

Our advice: Broach the conversation about money after you have completed your own estate and financial plan, then share with your parents what you have done, which may make it easier to begin the conversation.

Gary F. Thomas

JD, LLM, CLU, ChFC, AIF, CDFA

“Because it’s not what you make … it’s what you keep!”

Gary is the President of The Wealth Technology Group, with offices in Pittsfield and Westfield. His company serves over a thousand individuals and businesses in Massachusetts, Connecticut, and across the country, helping them reduce taxes, diversify their portfolios, and keep more of what they have.

Gary is a native of Pittsfield and is a graduate of the Massachusetts College of Liberal Arts and Western New England University Law School. He is a member of the Massachusetts Bar and holds the prestigious Master of Laws in Taxation degree from Boston University Law School. Gary is a Chartered Life Underwriter and a Chartered Financial Consultant. He is also certified as an Accredited Investment Fiduciary, having met the ethical and education standards of a prestigious network of forward-looking investment professionals dedicated to advancing fiduciary responsibility.

Gary has conducted courses on retirement planning, financial management, and estate planning at General Dynamics Corporation, Tubed Products, the Massachusetts Nurse’s Association, Plumbers and Pipefitters Locals 4 and 104, Westfield State University, Berkshire Community College and the Massachusetts College of Liberal Arts, and has lectured financial planning and insurance professionals throughout the U.S. and internationally on best practices and customer service. He specializes in education about safe money management and the maximization of pension and Social Security benefits, so that his clients enjoy a stress-free retirement.

Gary is a member of the Massachusetts Bar Association, the Financial Planning Association, the National Association of Insurance and Financial Advisors, and the International Association of Financial Planners; he sits on the Board of Directors of the MCLA Foundation. Last year, Gary was honored to be appointed a member of the Board of Trustees for Western New England University. He also underwrites programming for WHMP, Channel 57, and is a member of the Westfield Chamber of Commerce and the Better Business Bureau. He was chosen Outstanding Philanthropist of the Year for 2013 by the Western Mass Association of Fundraising Professionals.

Gary is a presence on local media and is sometimes called upon to comment on financial news. Every few weeks Gary also has some fun talking about financial topics with Bax & O’Brien on Rock102. His programs are available on the station websites, and are podcast on iTunes and at www.wealthtechnology.com. He has appeared nationally on Fox Business News, and has been quoted on the Forbes and CNN Money websites.

(800) 266-6793

[email protected]

www.wealthtechnology.com

Asset Protection

By Columnist May 27, 2019

Local Business Advice

The Wealth Technology Group

By: Gary F. Thomas, JD, LLM, CLU, ChFC, AIF, CDFA

A couple of weeks ago I spoke with a potential client on the phone who had recently purchased some trusts through an online service, and had questions about them. To create the trusts he spoke with an individual on the phone and filled out a short questionnaire listing his wishes, assets and beneficiaries. A short time later received the documents. He was told that the trusts would accomplish his three primary objectives:

Probate Avoidance

Estate Tax Reduction

Asset Protection

I responded that without reading the trusts carefully as well as knowing more about his current financial situation, it would be impossible for me to answer his concerns. We agreed to meet.

Bill arrived carrying a handsome, two-inch thick leatherette folio with his family name embossed in gold lettering on the cover. The binder included two trusts: a Revocable Living Trust and an Irrevocable Asset Protection Trust. Neither trust was funded. In addition, there was a “pour-over” will, designed to fund the Living Trust with probate assets at the time of Bill’s passing.

After chatting with Bill, I learned that he was seventy-three years old, and had two adult sons who were comfortable financially. Up until the creation of his trusts, he had a simple Will leaving all his assets to Martha, his wife of 40 years. She had recently passed after a lengthy illness, motivating Bill to reconsider his estate planning options.

Bill’s major assets included a sizable conservatively invested 401k which listed his children as beneficiaries. Bill’s other assets consisted of a couple of CDs, a modest checking account and a three-bedroom ranch built in the 1960s. Although Bill would be considered to be financially comfortable, his combined assets were only slightly above the one million dollar threshold for Massachusetts estate taxes, with no likelihood of approaching the Federal limits.

The trusts would not serve to avoid probate or to protect Bill’s assets. His major asset, the 401k, was already set up to avoid probate as it had named beneficiaries. As a retirement account it is protected from creditors under both Massachusetts and Federal law. Transferring his 401k to the Irrevocable Trust would necessitate cashing it out, resulting in an income tax disaster.

Bill asked what course he should take regarding the CDs and his home. He could, if he chose, transfer his CDs into either trust but as they were only a modest portion of his assets, the net effect of doing so would be marginal. And although he could transfer his home to the Irrevocable Trust in the hopes of protecting it from the high cost of long-term care, he would still be required to spend down his other assets to qualify for care.

Properly structured, drafted and funded, trusts are valuable tools for probate avoidance, asset protection and estate tax avoidance, but they are not needed by everyone. Basic estate planning documents such as a Will and a Durable Power of Attorney, with careful selection of beneficiaries plus proper insurance planning often produces the desired outcome.

Please consult a qualified professional who can assess your situation and guide you properly through your estate planning journey.

Social Security Informational Workshop: June 11, 13, 18, & 20th • 6:30 pm

Wealth Technology Conference Center – 130 Southampton Rd, Westfield, MA

Gary F. Thomas

JD, LLM, CLU, ChFC, AIF, CDFA

“Because it’s not what you make … it’s what you keep!”

Gary is the President of The Wealth Technology Group, with offices in Pittsfield and Westfield. His company serves over a thousand individuals and businesses in Massachusetts, Connecticut, and across the country, helping them reduce taxes, diversify their portfolios, and keep more of what they have.

Gary is a native of Pittsfield and is a graduate of the Massachusetts College of Liberal Arts and Western New England University Law School. He is a member of the Massachusetts Bar and holds the prestigious Master of Laws in Taxation degree from Boston University Law School. Gary is a Chartered Life Underwriter and a Chartered Financial Consultant. He is also certified as an Accredited Investment Fiduciary, having met the ethical and education standards of a prestigious network of forward-looking investment professionals dedicated to advancing fiduciary responsibility.

Gary has conducted courses on retirement planning, financial management, and estate planning at General Dynamics Corporation, Tubed Products, the Massachusetts Nurse’s Association, Plumbers and Pipefitters Locals 4 and 104, Westfield State University, Berkshire Community College and the Massachusetts College of Liberal Arts, and has lectured financial planning and insurance professionals throughout the U.S. and internationally on best practices and customer service. He specializes in education about safe money management and the maximization of pension and Social Security benefits, so that his clients enjoy a stress-free retirement.

Gary is a member of the Massachusetts Bar Association, the Financial Planning Association, the National Association of Insurance and Financial Advisors, and the International Association of Financial Planners; he sits on the Board of Directors of the MCLA Foundation. Last year, Gary was honored to be appointed a member of the Board of Trustees for Western New England University. He also underwrites programming for WHMP, Channel 57, and is a member of the Westfield Chamber of Commerce and the Better Business Bureau. He was chosen Outstanding Philanthropist of the Year for 2013 by the Western Mass Association of Fundraising Professionals.

Gary is a presence on local media and is sometimes called upon to comment on financial news. Every few weeks Gary also has some fun talking about financial topics with Bax & O’Brien on Rock102. His programs are available on the station websites, and are podcast on iTunes and at www.wealthtechnology.com. He has appeared nationally on Fox Business News, and has been quoted on the Forbes and CNN Money websites.

(800) 266-6793

[email protected]

www.wealthtechnology.com

Social Security: When Your Ex-spouse May Be Your Best Friend

By Columnist April 15, 2019

Local Business Advice

The Wealth Technology Group

By: Gary F. Thomas, JD, LLM, CLU, ChFC, AIF, CDFA

Earlier this year, I was conducting a workshop for a small group of clients and their friends. Most had not retired yet, and the discussion turned to Social Security.

After the workshop, a guest of one of my clients approached me somewhat timidly. For example’s sake I’ll call her Mary. Mary left college to support her husband, who was in dental school. Almost immediately after his graduation and licensure, they started a family. She devoted her time to bringing up the children with the intention of finishing her education once the kids were in high school. Unfortunately, the marriage did not survive the stresses of a growing dental practice along with a growing family. The couple divorced. She received child support and additional alimony so that she could finish her education and rejoin the workforce. At 46 years old, she began her new life working for a non-profit social service agency at a very modest salary. Although she remained single, her ex-husband remarried shortly after the divorce was finalized. He continued to work in his practice even though he had also reached full retirement age (FRA).

Because of her shortened working career and modest salary, Mary’s Social Security benefit was $1,150 monthly at her FRA. Mary had decided to keep working and delay collecting benefits because she thought that this strategy would accumulate additional credits and would boost her Social Security benefit by a few hundred dollars a month.

I began to work with Mary in order to discover if delaying benefits would be beneficial.

We determined Mary’s ex-husband’s Social Security benefit at FRA was $2,950 per month.

She was surprised to learn that because they had both reached FRA, she could still claim the greater of her benefit or 50 percent of his benefit, even though they had been divorced for more than 20 years and one had a new spouse. Mary was immediately entitled to $1,475 per month.

Mary shared that she was in a committed relationship and was curious to learn whether, if she were to marry again to an individual with a modest salary history, she would lose the benefit earned from her prior marriage.

In Mary’s case, she would not, because she was over the age of 60. If one remarries before age 60, different rules apply.

Before she left, Mary asked whether her claiming the spousal benefit would reduce either her ex-husband’s benefit or that of his second spouse. The answer was no. Claiming on a former spouse’s account does not reduce their benefit, or that of their new spouse should they remarry.

There is plenty of information on the internet offering incorrect or conflicting advice about Social Security claims. There is no one-size-fits-all answer. Changes to Social Security claiming strategies that go into effect this year add still new twists.

Social Security rules affecting divorced couples can be confusing. The law governing divorce finance is complicated, and often not obvious, and making the right decisions about Social Security and other aspects of property division requires the services of a professional with specific training and experience.

Gary Thomas is an attorney and is the Registered Principal of The Wealth Technology Group. He holds a master’s degree in Tax Law and is a Chartered Life Underwriter (CLU), a Chartered Financial Consultant (ChFC), a Certified Divorce Financial Analyst (CDFA), and an Accredited Investment Fiduciary (AIF).

Social Security Informational Workshop: May 7 & 9th • 6:30 pm

Wealth Technology Conference Center – 130 Southampton Rd, Westfield, MA

Gary F. Thomas

JD, LLM, CLU, ChFC, AIF, CDFA

“Because it’s not what you make … it’s what you keep!”

Gary is the President of The Wealth Technology Group, with offices in Pittsfield and Westfield. His company serves over a thousand individuals and businesses in Massachusetts, Connecticut, and across the country, helping them reduce taxes, diversify their portfolios, and keep more of what they have.

Gary is a native of Pittsfield and is a graduate of the Massachusetts College of Liberal Arts and Western New England University Law School. He is a member of the Massachusetts Bar and holds the prestigious Master of Laws in Taxation degree from Boston University Law School. Gary is a Chartered Life Underwriter and a Chartered Financial Consultant. He is also certified as an Accredited Investment Fiduciary, having met the ethical and education standards of a prestigious network of forward-looking investment professionals dedicated to advancing fiduciary responsibility.

Gary has conducted courses on retirement planning, financial management, and estate planning at General Dynamics Corporation, Tubed Products, the Massachusetts Nurse’s Association, Plumbers and Pipefitters Locals 4 and 104, Westfield State University, Berkshire Community College and the Massachusetts College of Liberal Arts, and has lectured financial planning and insurance professionals throughout the U.S. and internationally on best practices and customer service. He specializes in education about safe money management and the maximization of pension and Social Security benefits, so that his clients enjoy a stress-free retirement.

Gary is a member of the Massachusetts Bar Association, the Financial Planning Association, the National Association of Insurance and Financial Advisors, and the International Association of Financial Planners; he sits on the Board of Directors of the MCLA Foundation. Last year, Gary was honored to be appointed a member of the Board of Trustees for Western New England University. He also underwrites programming for WHMP, Channel 57, and is a member of the Westfield Chamber of Commerce and the Better Business Bureau. He was chosen Outstanding Philanthropist of the Year for 2013 by the Western Mass Association of Fundraising Professionals.

Gary is a presence on local media and is sometimes called upon to comment on financial news. Every few weeks Gary also has some fun talking about financial topics with Bax & O’Brien on Rock102. His programs are available on the station websites, and are podcast on iTunes and at www.wealthtechnology.com. He has appeared nationally on Fox Business News, and has been quoted on the Forbes and CNN Money websites.

(800) 266-6793

[email protected]

www.wealthtechnology.com