Money Matters Newsletter

Do you need fire insurance, been cancelled or know anyone who has? It can be frustrating. Let me take the worry out of the situation and find you a policy you can live with. Let me answer your questions and guide you through the process.

Join our Facebook Page “Fire Insurance Information and Inquiries” here:

https://www.facebook.com/groups/424062531773299/

This page has updates and posts from other homeowners and people asking the same questions.

Sign our petition on Change.org.     Click link below:

https://www.change.org/p/california-governor-fire-insurance-cost-relief-to-homeowners-also-to-the-cal-ins-commissioner-and-congressman-lamalfa

Specifically it asks:

The Organization for Affordable Fire Insurance

The increase in the cost of fire insurance is hitting the working family through no fault of their own. Many can’t afford the massive increases and for many the added costs are crippling budgets and hurting the state economy.  We the people of California petition the Governor to allocate emergency funds to reimburse all those that have had premium increases over and above the CPI inflation index. We also request the insurance commissioner to negotiate and regulate insurance companies to resume underwriting in fire prone areas with reasonable and if necessary subsidized rates.

Need guaranteed income for life? Never outlive your money? How about a minimum guaranteed with also stock market upside participation possible? The Best of Both Worlds. Or monthly income? Retirement planning? College planning? Tax free pass on assets to heirs with no tax?

CONTACT ME.

(530) 559 1214

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My take on the Town Hall Meeting with Insurance Commissioner Ricardo Lara

They say first impressions are the most important. I have to admit what I expected to see when Insurance Commissioner Ricardo Lara showed up at the local town hall meeting on fire insurance and what I saw did not exactly mesh, at least for me.

What I expected was a seasoned insurance man, in the know about the insurance business hardened by years of experience. What I saw was a handsome, strapping younger gentlemen, dressed in peg-legged jeans, cowboy boots and a Nehru type shirt, tight fitting around rather impressive biceps, all indicating this man spent at least some of his waking hours in the gym. Not exactly the fat old guy in a tie and suit that I expected.

Lara’s background as it turns out has little to do with experience in the insurance industry. Born in Commerce, California, Lara is the son of a formerly undocumented factory worker and seamstress from Mexico. Lara attended Los Angeles Unified School District schools and graduated from San Diego State University, where he earned a Bachelor of Arts degree and served as student body president. He is currently pursuing a master's degree from the University of Southern California.

A longtime Assembly staffer, Lara worked as Chief of Staff to Assemblyman Marco Antonio Firebaugh (D–South Gate) when Firebaugh served as Majority Leader. Lara later served as Fabian Nuñez's district director during Nuñez's time as Speaker. He then served as communications director for Assemblyman Kevin de León (D–Los Angeles). (Wikipedia).

All this has to tell you something and you got the feeling he was to be protected and isolated the entire time he was there and he was.

From the onset, a celebrity like aura engulfed the building. Photo ops and handshakes occupied the first 15 minutes and after the obligatory thanks you and introductions from those that do such things, Lara took to the stage in front of a video screen that I imagined would act as a security blanket and guide all in one.

After all, it’s easier for the speaker and audience-distracting if they, the audience, have a TV to watch instead of focusing their entire attention on a speaker. It’ the reason I use no such visual complements when I speak. I WANT the complete attention of the audience.

Not one to jump to conclusions however, I let the cameras and microphones roll and sat back to see what nuggets of wisdom and subsequent action Lara was to bequeath to the room full of anxious homeowners and insurance professionals, dignitaries and wannabes that were in the packed house that was the Foothill Event Center on August 22, 2019.

He started out by what I perceived as a prepping us for a watered down presentation what was to follow by saying the department somewhat has its hands tied and “is trying” to get the insurance companies to do this and that.

Oh boy. Starting with the “poor us” theme didn’t instill a lot of confidence, at least in my mind, and probably a few others in the room as well.

Flipping from slide to slide, Lara attempted to instill some sort of rebound by illustrating some of the problems homeowners were having obtaining, keeping and paying for fire insurance.

Tell us something all of us in the room don’t know sir.

I have to admit I was somewhat taken in by his charm and good looks, as I’m sure others were, and gave him the benefit of the doubt that this was a sincere and caring man in front of me. That said, I caught myself shaking my head thinking “if this is our main defense against the huge conglomerates that are the insurance companies, we’re all screwed”.

I kept thinking as the slides slipped by illustrating little but visual lip service, this vegetarian type of presentation resembled the Beyond Meat phenomenon. Beyond Meat is a company that makes vegetarian hamburgers that look and taste like meat but have no real meat in them.

Yea, the evening was kind of like that.

Lara dived into what I perceived as a less than critical “honey do’ list of things the department was trying to implement such as longer notification times for cancellations and such. I’m thinking “we all came tonight because insurance is so damned expensive, not because a 45 days’ notice is too difficult to understand.

You get what I’m saying here?

After an hour or so, and without questions, the commissioner left the stage and ended what was obviously a very well prepared presentation. In the old days it was known as the proverbial “dog and pony show”.

Hearing him speak and in speaking with him, I perceived mostly lip service, generalities and prepared responses to the same old questions he was hearing in the green rooms of the many such presentations he was giving on this road show.

After a few more smiling photo ops with those waiting in line to shake the hand of this handsome gent, Lara was whisked away in a waiting black SUV (yea I know) and in his place two topic knowledgeable non-politicians fielded handwritten and prepared questions taken earlier from the audience by staffers.

If there was meat in this dish, we got a taste of it from these two. For more than an hour, they answered honestly and diligently every question handed them, and it was here that we learned at a bit more about the department and its machinations that are taking place addressing this very serious issue.

I have to at least give the Department of Insurance (DOI) some credit for making the effort to address the fire insurance issue in California by these ongoing roadshows, if not really making a lot of real headway on the main issue of insurance costs, but holding the hands of nervous and concerned homeowners. In the final end however, when I think of whom I saw from the DOI at this town hall meeting, then picturing them going up against armies of Ivy League educated CEOs and VPs of huge and powerful conglomerate insurance companies, in reality these DOI folks don’t stand a snowballs chance in hell, or should I say our house’s chance of survival in an out of control wildfire.

Marc Cuniberti hosts “Money Matters” on KVMR FM aired on 66 radio stations nationwide. He is a financial columnist for a variety of publications. Marc holds a BA in Economics from SDU with honors 1979. His website is moneymanagementradio.com and he can be reached at (530) 559-1214. Visit him on Facebook (FB) under Marc Cuniberti and also on the "Money Matters” and “Money Matters Investing in Community" FB pages and You Tube. The views expressed are opinions only.

Tit for tat. 
Do tariffs really accomplish anything besides spawning inflation?

In a recent article from Money and Markets entitled “Fed: Tariffs Will Cost Average Family $831 More in 2019”, the argument was made that after the latest increase from 10% to 25% on $200 billion in tariffs on Chinese goods, the average U.S. family will pay $831 more a year for the same goods they bought last year. What the article didn’t include was the next round of tariffs on Mexican goods. Also not factored in is the rising costs of goods and services as a general result of inflation here in the United States. Indeed no one needs to remind you of the sudden increase is gasoline which pushed close to four dollars or more per gallon in recent months. This also means the approximate 6000 other things made out of petroleum will also likely go up in price.  

The average American family is having a hard enough time making ends meet and the challenging effects of increasing prices undoubtedly put more strain on some families.

Tariffs are fees put on incoming goods coming from countries outside the U.S. under the auspices of protecting the American business counterpart of whatever it is you’re applying the tariff to, and/or punishing the other country for some egregious act or violation, as the case may be.

Tariffs are not new and usually there are tariffs on a variety of imports at any one time. To the degree we are seeing them now however is something of a rarity historically.

Because the price of something in the market place is somewhat arrived at by the sum of all prices of the item with slight variances off the average price to account for local demand and conveyance, raise the price of any one major supplier of something and the price of that something will rise. Since tariff money goes to into government coffers and the consumer ends up paying the higher price, tariffs are generally believed to be ultimately paid by the consumer.

I have made the argument in a previous article that should protection of U.S. companies selling into any market where imports are sold competitively, a tax CREDIT to the U.S. company would serve the same purpose. Although tariffs raise the price of a good to the consumer and therefore make a domestic made good that much cheaper in comparison, a tax credit would enable the U.S. company to sell its product cheaper and thus better compete with the import just the same. The difference being the average cost of the good would decrease thereby lowering the cost of the item to the consumer.

I don’t hear the argument for tax credits anywhere in the media and that’s baffling. Both a tariff and a tax credit accomplish the same thing which is to punish the importer and give an advantage to the domestic producer.

As to who pays the tariff and where the money ends up is quite different thing. In the case of the tariff Washington gets the money that the consumer pays in the price increase. In the case of a tax credit, the consumer would pay less for the good and therefore have more money left over to spend on other things. In the latter, the economy would also benefit from higher consumer spending which came from the consumer having more money to spend because of the savings.

This article expresses the opinions of Marc Cuniberti and are opinions only and should not be construed or acted upon as individual investment advice. Mr. Cuniberti is an Investment Advisor Representative through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Marc can be contacted at SMC Wealth Management, 164 Maple St #1, Auburn, CA 95603 (530) 559-1214. SMC and Cambridge are not affiliated. His website is www.moneymanagementradio.com. California Insurance License # OL34249

Do be unprepared and do not panic

Do you need fire insurance, been cancelled or know anyone who has? It can be frustrating. Let me take the worry out of the situation and find you a policy you can live with. Let me answer your questions and guide you through the process.

Join our Facebook Page “Fire Insurance Information and Inquiries” here:

https://www.facebook.com/groups/424062531773299/

This page has updates and posts from other homeowners and people asking the same questions.

Sign our petition on Change.org.     Click link below:

https://www.change.org/p/california-governor-fire-insurance-cost-relief-to-homeowners-also-to-the-cal-ins-commissioner-and-congressman-lamalfa

Specifically it asks:

The Organization for Affordable Fire Insurance

The increase in the cost of fire insurance is hitting the working family through no fault of their own. Many can’t afford the massive increases and for many the added costs are crippling budgets and hurting the state economy.  We the people of California petition the Governor to allocate emergency funds to reimburse all those that have had premium increases over and above the CPI inflation index. We also request the insurance commissioner to negotiate and regulate insurance companies to resume underwriting in fire prone areas with reasonable and if necessary subsidized rates.

Need guaranteed income for life? Never outlive your money? How about a minimum guaranteed with also stock market upside participation possible? The Best of Both Worlds. Or monthly income? Retirement planning? College planning? Tax free pass on assets to heirs with no tax?

CONTACT ME.

(530) 559 1214

Do you need fire insurance, been cancelled or know anyone who has? It can be frustrating. Let me take the worry out of the situation and find you a policy you can live with. Let me answer your questions and guide you through the process.

Join our Facebook Page “Fire Insurance Information and Inquiries” here:

https://www.facebook.com/groups/424062531773299/

This page has updates and posts from other homeowners and people asking the same questions.

Sign our petition on Change.org.     Click link below:

https://www.change.org/p/california-governor-fire-insurance-cost-relief-to-homeowners-also-to-the-cal-ins-commissioner-and-congressman-lamalfa

Specifically it asks:

The Organization for Affordable Fire Insurance

The increase in the cost of fire insurance is hitting the working family through no fault of their own. Many can’t afford the massive increases and for many the added costs are crippling budgets and hurting the state economy.  We the people of California petition the Governor to allocate emergency funds to reimburse all those that have had premium increases over and above the CPI inflation index. We also request the insurance commissioner to negotiate and regulate insurance companies to resume underwriting in fire prone areas with reasonable and if necessary subsidized rates.

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Need income for life?

Never outlive your money

Plan for kids or grandkids College

Help Pass on assets to heirs tax free

CONTACT ME

(530) 559 1214

Laddering assets for diversification

Laddering is a strategy investors can use in a variety of asset classes. Laddering is structuring a number of similar assets with differing time periods or maturity dates. In my opinion laddering is best explained by using Certificates of Deposits (CD) that you would get from a bank. 

To ladder a group of CDs, an investor would buy a group of CDs with differing maturities.  Typical lengths of CDs are 21 days, 1 month, 3 months, 6 month, 7 months, 9 months, 1 year, 2 year, 3 year, 5 year, and 10 years. There are 11 CDs above with 11 different maturity dates.

An example would be to buy one CD of each length above. This would mean the investor would have a CD coming due according to the maturity dates above. This accomplishes two things. It means the investor would have cash due him when each CD matures, continually making cash available for up to 10 years with 11 dates in total had the investor bought all the CDs listed. Of course not all 11 have to be bought. An investor could buy as many or as few as he desired. In addition to having an amount available at every maturity date, the investor would get a different amount of interest paid to him with each CD. The longer dated ones would usually pay a higher amount with the shorter duration paying less. This is not always the case such as when the yield curve inverts, an event typified by shorter maturity dated CDs paying more than longer dated ones but that occurrence is rare and is a story for another day.

Although the longer dated CDs pay more interest, they are more susceptible to movement in the economy’s general interest level. Since your interest rate on a CD purchased is locked until the maturity, when rates rise for example, you can buy the higher interest rate CDs when each of your CDs matures. If interest rates fall however, you longer maturity CDs would look more attractive, as the higher rates they pay are locked in.

Laddering can also be used on annuities. In this case, an investor would buy a handful of annuities with different payment conditions, different maturity dates and perhaps even differing “gearing” to an underlying index. In other words the investor buys a handful of different annuities. Since annuities come in a variety of structures and there are literally hundreds available, selecting a few different ones might provide an additional level of performance based on what happens in the markets.

Although how one sets up a ladder on whatever asset class they choose will take some knowledge, your investment advisor or some time spent in researching what is available and how laddering works might go a long way in accomplishing better diversification in your portfolio.

Laddering can also be used on a variety of what is called fixed income investments such as individual bonds, mortgages and other types of debt instruments. In simple terms, buying a variety of time sensitive investments with different maturities and conditions might be preferred over owning a lot of just one thing.

Laddering may not necessarily prevent losses. This is not a recommendation to buy or sell any securities. Investing involves risk depending on the type of investment. Consult with a financial professional before making any investment decisions and do your own research before investing.

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This article expresses the opinions of Marc Cuniberti and are opinions only and should not be construed or acted upon as individual investment advice. Mr. Cuniberti is an Investment Advisor Representative through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Marc can be contacted at SMC Wealth Management, 164 Maple St #1, Auburn, CA 95603 (530) 559-1214. SMC and Cambridge are not affiliated. His website is www.moneymanagementradio.com. California Insurance License # OL34249

Policies are available and I can answer questions... (530) 559-1214

Do you need fire insurance, been cancelled or know anyone who has? It can be frustrating. Let me take the worry out of the situation and find you a policy you can live with. Let me answer your questions and guide you through the process.

Join our Facebook Page “Fire Insurance Information and Inquiries” here:

https://www.facebook.com/groups/424062531773299/

This page has updates and posts from other homeowners and people asking the same questions.

Sign our petition on Change.org.     Click link below:

https://www.change.org/p/california-governor-fire-insurance-cost-relief-to-homeowners-also-to-the-cal-ins-commissioner-and-congressman-lamalfa

Specifically it asks:

The Organization for Affordable Fire Insurance

The increase in the cost of fire insurance is hitting the working family through no fault of their own. Many can’t afford the massive increases and for many the added costs are crippling budgets and hurting the state economy.  We the people of California petition the Governor to allocate emergency funds to reimburse all those that have had premium increases over and above the CPI inflation index. We also request the insurance commissioner to negotiate and regulate insurance companies to resume underwriting in fire prone areas with reasonable and if necessary subsidized rates.

Questions about Money Management, new areas of promise in the stock market, income portfolios, green investments or retirement planning with guarantees?   Contact me. There is a whole slew of investments that you may not know about!

Do you need fire insurance, been cancelled or know anyone who has?

It can be frustrating. Let me take the worry out of the situation and find you a policy you can live with.

Let me answer your questions and guide you through the process.

------------------------------------------------------------------------

Join our Facebook Page “Fire Insurance Information and Inquiries” here:

https://www.facebook.com/groups/424062531773299/

This page has updates and posts from other homeowners and people asking the same questions.

Sign our petition on Change.org.     Click link below:

https://www.change.org/p/california-governor-fire-insurance-cost-relief-to-homeowners-also-to-the-cal-ins-commissioner-and-congressman-lamalfa

Specifically it asks:

The Organization for Affordable Fire Insurance

The increase in the cost of fire insurance is hitting the working family through no fault of their own. Many can’t afford the massive increases and for many the added costs are crippling budgets and hurting the state economy.  We the people of California petition the Governor to allocate emergency funds to reimburse all those that have had premium increases over and above the CPI inflation index. We also request the insurance commissioner to negotiate and regulate insurance companies to resume underwriting in fire prone areas with reasonable and if necessary subsidized rates.

Sign the petition on the FACEBOOK SITE 

CONTACT ME FOR FIRE INSURANCE.

(530) 559-1214

Email: bayareaprocess@att.net

Financial services and money management

Retirement solutions

Life income and annuities

Show #287 covered

FIRE INSURANCE, HEALTH INSURANCE AND ACCIDENT INSURANCE

We hurried to post it due to the many requests we had for this show. Here is the link:

https://moneymanagementradio.com/radioshow_titles

If you need any type of insurance, including annuities, contact me immediately!

The fiasco that is fire insurance is certainly hair pulling frustrating!

Buzz me!

And those wanting income, green and sustainable investing options, guaranteed options or other strategies for your retirement plans,

also hit me back. IRA’s, college plans, income generating, tax and non-taxable information and accounts are available.

(530)559-1214

Heath Insurance too expensive? 

Mine was too so I did some research.

Lots of research
I found an alternative!

I now use it with our family as well

and have helped many save as well

I had Anthem. I now use this type

Reach out and email me

or call (530) 559-1214

Family and Individual

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Market seems to run fine now but when it breaks does it cause you angst?

A way to stop the stress of market crashes? 
Keep reading..

I wasn’t a big fan of annuities for the longest time. I saw too many of them with high fees, complicated terms and so many hooks I had to get out my tackle box to house them all. That said, when I started offering annuities to clients with specific needs and desires not too long ago, I reviewed literally hundreds of them and in the pile I have found a few I thought advantageous.

First off, the description of annuity I like to use is a contract between an insurance company and a person that stipulates in return for a sum of money paid by the client, the company will promise payments over a period of time or even a lump sum at the conclusion of the contract. Annuities have all sorts of versions and terms but just know the contract is a promise to pay. How, when and how much depends on the contract.

The promise is a good as the company making it so realize they are not guaranteed by the U.S. government in any way, shape or form. You can pay the company a sum of money in a lump or over time. The annuity can be tied to a moving target such as a stock index or be just a fixed rate of return. There are other variations and they literally come in all shapes and sizes.

Without getting too technical, annuities can have a tie up period where the client has to commit to leaving at least some of the money with the company for a specified length of time. Some allow a portion of money to be taken out at certain times at the clients option and most have a hardship clause that allow for special circumstances such as a death of the primary person(s) specified in the contract.

I find that investors who want a stream of income later in life that won’t go away or cannot stomach the ups and downs of markets are primary candidates for annuities but know that annuities are not for everyone nor should they be offered up carte blanche to all investors.

Certain investors will ask me for an annuity and others have to be explained as to how they work. As an advisory, I am approached by annuity companies trying to get me to offer their particular version but honestly, I find all but a handful of annuities way too complicated for most investors. Sure I could place a complicated annuity with a client but I wouldn’t do that knowing the client doesn’t fully understand how they operate. Truthfully some are so complicated I have to study them for an hour or two in order to fully understand them myself and I’m in the business!

The annuities I lean towards are the ones that are straight forward and simple. The terms are clear and usually there are not a whole lot of them compared to others. My thinking is if I can explain it to a client and they understand how it works, it will be better for all concerned, which is the investor, the advisor and the insurance company writing the contract.

The regulations and oversight on annuities is severe and very strict and protection to the consumer is a lot better than it was decades ago where annuities where sometimes regarded one of the black boxes of financial products.

Not so today. Many are simple, easy to understand and perform as promised. The importance of understanding them by both the client and advisor is tantamount to a successful placement and an honest and straight forward conversation by both parties is the cornerstone of that success.

Wish to talk? Hear more?

Email me for a cost and obligation free consult for money

portfolio review, insurance or annuities.

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Nevada County and all of Northern California 

(530) 559-1214

Investors should carefully consider the investment objectives, risks, fees and expenses before investing. For this and other important information please obtain the investment company fund prospectus and disclosure documents from your Rep/Advisor. Read this information carefully before investing. Guarantees are based on the claims paying ability of the issuing insurance company.

This article expresses the opinions of Marc Cuniberti and are opinions only and should not be construed or acted upon as individual investment advice. Mr. Cuniberti is an Investment Advisor Representative through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Marc can be contacted at SMC Wealth Management, 164 Maple St #1, Auburn, CA 95603 (530) 559-1214. SMC and Cambridge are not affiliated. His website is www.moneymanagementradio.com. California Insurance License # OL34249. Indexes may not be invested into directly and consider consulting a qualified financial advisor if you have any questions or concerns and before making any investments decisions.

Do you know where your money is? 

252929

Welcome Money Matters fans,

Knowing where your money is an important aspect of an investment plan. Like knowing where your kids are, knowing where your money is may help not lose some of it.

As an advisor, I have clients that tell me they might not want own this or that because of moral convictions. Others try and second guess the economy based on what they might feel about the administration, their view of the unemployment environment, or perhaps which way the wind blows.

Although not owning something due to a moral conviction is a valid one, second guessing which way the market will go is impossible for the experts, let alone the novice retail investor like Mr. and Mrs. Smith on Main Street.

You can however at least get a feel as to what your money is invested in to start down the road of being a better investor.

You might not fully understand the entire investment makeup of the portfolio but knowing at least what asset classes you’re in and what kind of companies you hold will go a long way in improving your knowledge of money. After all, investing is more like a sociological study then a science. There are many outside events that can influence overall market direction. The more eyes looking at a portfolio the better.

For example, do you think there is a lot of debt in the world today?

If you do, you might not want to own a lot of bonds. That’s just another word for debt. Bonds can also be held in “Income” funds or other funds with names indicating they hold a wide variety of investments, bonds being one of them.

High income funds or funds that have the name “high yield” in them might hold what is called “junk bonds”. These are riskier than an investment grade bond. They hold these to get that “high” yield. If you told your advisor you a conservative investor, perhaps he placed you in something that has higher risk investments. Knowing what is risky and what is safer will help you steer him in the right direction if he took a wrong turn somewhere or misunderstood your risk profile.

Momentum funds trade on something like the waves of favor sort of speak. Certain formulas and methods are used to track which way the investing wind is blowing then managers of these funds put a money sail up to catch it, the sail being just my metaphor for buying certain stocks they think might move in the upward direction.

A “dog” fund might hold out of favor Dow stocks while an ETN fund (don’t confuse this with an ETF) might not hold anything at all. ETN stands for “Exchange traded note” and its movement relies on the managers ability to track an underlying investment area of some sort.

A leveraged fund ratchets up the risk by in essence “doubling down” and these can fall in value just because the clock is ticking. They also can move faster than the overall market, meaning they are more volatile. A contrary fund (versus some funds that may have the word “contrarian” in them) or bear fund might actually be designed to move opposite the general market.

Like knowing where you kids are, knowing what your money is invested in may be just as important and probably a good practice for you to considerer.

Have questions? Let me review your portfolio and tell you where your money is. No cost and no obligation! 

I"ll buy the coffee.

Stay Tuned

"Watching the market so you don't have to" 

Marc

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