By Todd Ihrig, Advisor
Managing your financial affairs is a process, not a series of discrete decisions or events. When you think of it this way, it means that there must be a starting point to the process. Just like building a house, you have to start with a firm foundation so that the rest of the structure will be stable. If your financial foundation is strong, everything else will be more stable and increase the chances you will meet your goals. Handling these “Three Foundational Rules” will create a firm financial foundation to build upon:

• Live below your means;
• Maintain a solid cash reserve; and
• Maximize your contributions to an employer retirement plan.

Live Below Your Means
While this sounds obvious and basic, it is hard for most of us to achieve in practice. Notice that the rule does not say "Live within your means" - it specifically calls for us to live below our means. We need to create the capacity to save and invest. Having a buffer each month creates that capacity and makes sure that we are not generating debt to sustain our lifestyle. If your lifestyle spending is too tight against your income, an unexpected expense will force debt without a way to pay it off. The ultimate goal of this rule is to live debt free. Think about that for a second; how would you feel if you had no mortgage payments, no car payments, no student loans, etc.?  

by Kelly Heinrich, President, Global Freedom Center

President Obama declared January to be National Human Trafficking Awareness Month. While this a broad call to action, how can Chamber members be more aware and take action?

First, learn the basics. Human trafficking is compelling someone into work or commercial sex through whatever means necessary, physical or psychological. It’s happening worldwide, nationwide and in Arlington on a total scale of 27 million. 78% is labor trafficking and 22% is sex trafficking. Men and women, boys and girls from factories to agriculture and janitorial services to construction. The Global Freedom Center’s slideshow will give you a good sense of how, why and where this happens. We also provide custom training on how to identify and prevent trafficking.

Second, be aware of the risks that human trafficking presents to your business: Safety, particularly when there is gang involvement; Legal, both civil and criminal liability; Compliance, for federal contractors, retailers and manufacturers; Profitability, when you have to replace a liable contractor; and Reputation, when word gets out.

Third, consider getting help from the Global Freedom Center to assess and mitigate risk through revamping policies, practices and training. Each industry and business will have unique needs.  For example:

• Hotels – Traffickers have used hotels as venues for child sex trafficking so hotel managers, front desk, housekeeping, security and other staff should know what to look for and report suspicious behavior.
• Grocery stores – Traffickers were prosecuted for the labor trafficking of men and women cleaning offices and grocery stores at night so look out for the labor practices of any contracted labor. If you source locally, look into the labor practices at the farms.
• Construction companies – If you work with labor brokers, recruiters or other contractors to supply you with labor, ask a lot of questions and check in with the workers themselves.
• Restaurants – The majority of trafficking victims in the United States have been in agriculture so do what you can to know more about where the food comes from that you are purchasing as well as the hands that harvested and packaged it.
• All businesses – Consider the types of contractual services you use and how you can minimize risk because human trafficking has occurred in ordinary business services such as landscaping, security, IT, call centers, janitorial services, and travel services.
• Nonprofits – Consider whether the clients you serve are at risk for human trafficking. Do you have appropriate screening and referrals in place?

Thanks to all members for their continued support of the Global Freedom Center and your interest in taking steps to identify and prevent human trafficking.

by Scott Greenberg, CFP®, RICP, ChFC, Scott J. Greenberg Private Wealth Management
Every week I meet with successful individuals and families who want help getting their financial house in order and their investments optimized. When we look at the statements together, one of the items that most people immediately look for is the average returns they received on their investment and retirement accounts. Unfortunately, these numbers are not the best way to gauge which fund, manager, or security is the best option to include in your portfolio. Of course there are important factors to consider like investment philosophy, risk comfort level, turnover ratio, time horizon and others, but I thought it would be helpful to focus just on the “average return” item to help add some clarity.
Picture a hypothetical investment (any kind) that goes up by 25% in one year, and then down by 25% the next year. Most people can identify that in this scenario, the average return is 0%. And, most people intuitively think that means the account would have returned 0%, and they would be back to the starting amount. However, that is not the case.  Let’s say we started with $100.  After the first year we would have $125.  After the second year we would have $93.75. What?!  Yes. The same thing occurs if we pretend we lose 25% in the first year (giving us $75) and then gain 25% in the second year, bringing us to $93.75.
So this is how averages can be misperceived, because the starting point is rarely the same. The problem is that the greater the account becomes, the more painful the percentage losses are, and the smaller the account becomes, the less powerful the percentage gains are. So, for my clients, I don’t talk about average returns, (partially because they don't give the investor a good representation of how much they actually will have at the end of the period), and partially because they certainly don’t give any measure of what will occur. Focus on managing volatility and constraining downside losses through appropriate, diversified investments. Need help managing volatility with your portfolio? Just ask, I am in the neighborhood and ready to assist.
This general information should not be construed as investment advice. Diversification does not guarantee a profit or protection against an investment loss. The examples discussed in this article are entirely not indicative of any particular investment, asset class or financial product.  Scott Greenberg offers securities through AXA Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC, offers investment advisory products and services through AXA Advisors, LLC, an investment advisor registered with the SEC, and offers annuity and insurance products through AXA Network, LLC. Scott J Greenberg Private Wealth Management is not a registered investment advisor and is not owned or operated by AXA Advisors or AXA Network.  Individuals may transact business and/or respond to inquiries only in state(s) in which they are properly qualified. AGE- 109876(01/16)(exp.01/18).

​by David Griffin, Director of Marketing, Capitol Shine
 
It’s interesting to note that most new cars are sold at the end and beginning of the year. After all, auto dealerships are in a hurry to liquidate their inventory as a method to increase their final numbers for the year. Often times, these sales and discounts extend into the beginning of the New Year – lucky for the consumer! There’s nothing quite like owning a new vehicle – the exclusive new car smell, the low odometer numbers, the sense of pride and let’s face it, making co-workers a little jealous.
 
However, the fact is that just because a car comes new off the lot, that doesn’t mean it’s necessarily perfect. Many times, whenever products are sold in bulk, a decrease in quality control may take place. In the United States alone, close to 16 million vehicles were sold in 2015 (according to the Wall Street Journal). Dealerships need to keep every vehicle looking shiny and fresh, and every time it rains, dirt and water spots stay on all of those cars. At Capitol Shine, we’ve often preached about the dangers of automatic car washes – how they have the tendency to leave swirls and scratch marks. We’ve also mentioned to our customers how using a dirty rag, or a using the same rag on more than one vehicle, can retain dirt that can scratch paint. It’s important to note that not all dealerships use automatic car washes or practices unsafe to a vehicle’s paint, but sometimes that is the case - keeping all cars on the lot clean sometimes means a rush on the washes.
 
The good news is that one of the services provided by Capitol Shine is paint correction - a process where we remove scratches and swirl marks. The majority of the time, the scratches are in the top layer (clear coat), which means they can be removed without the use of touch-up paint. Your car has four basic layers: sheet metal (body), a primer coat, paint and then one or more layers of clear coat. With some buffing and detailing techniques, a clear coat can be restored. If you’ve recently purchased a new car, but the paint seems to be scratched (or if your older vehicle has scratches), stop on by one of our locations and let us take a look at it. In just about 30 minutes, we can give you an estimate on what is needed to get your vehicle looking the way it was meant to. In fact, we even have a package specifically designed for getting new vehicles ready. Call or email us to find out more.

​by Dave Notari, CEO, Innovation Health
For business owners, December marks a critical moment for assessing both the successes and shortcomings of the past year. With regard to our health insurance, this month is also a time for reviewing the needs of our employees and our business. As the health care industry continues to evolve, it is important for business owners to know where it is headed, and adjust accordingly to meet their needs.
To make sure you and your business are best able to prepare for the year ahead, here are my top four predictions for the New Year and beyond.

Shift from volume of care to value of care
Over the past few decades doctors had been compensated based on the number of services they provided to people, rather than the outcomes those services produced. Recently, we have seen a shift in this approach. Increasingly, employees and companies are paying doctors for the quality of the care provided – i.e., keeping patients healthier and helping them to better manage their care. In 2016 we can expect to see this overall “quantity” trend continue to die out across the country. This is good news for your employees’ health and your business.
In 2016 you will have access to more health plans focusing on cost-effective care. Since these are specifically designed to keep your employees healthier and out of the emergency room, they could save your business quite a bit on unnecessary copays and premium payments. As we move into the New Year, be sure to talk to your broker and be on the lookout for health plans focusing on value-based care.

Alignment of health plans and providers

For too long, health insurers and health providers have been on different teams. Health plans are in the business of managing risk, and they have looked to reduce the number of claims paid to providers in an effort to improve their revenue. This approach put many hospitals and physicians at odds with health plans; the approach simply wasn’t working. Fast forward to today and businesses and employees now have access to health plans that work to reduce risk by improving member health. This means that the health plan, doctors and hospitals are all on the same team and working together to achieve what is best for the individual.  
Given the industry success this approach has seen, moving forward there will be more health plans partnering with hospitals and physician networks. As you select your coverage for 2016, be sure to look for these collaborative plans in your area. They could improve employee health and save your business money for years to come.

Increased role of the consumer in health care

Since the implementation of the Affordable Care Act (ACA) people have become more involved in their health care decisions, demanding plans that are transparent, easy to access and understand, and are affordable. In 2016 these expectations, and employee involvement in the health plan selection process, will become the norm. This means that moving forward your business will need to find plans that address those specific employee wants and needs.
To make sure you’re paying for the care that is most valuable to your workforce, look for plans with access to easy online enrollment, clear language in the plan descriptions and on-the-go tools that can help them look up the cost of a local MRI visit or the copay at a nearby physician’s office. Moving forward, those plans will be most valuable to your employees.

Continued growth of private exchanges

Bottom line: people like to be able to customize the things they buy. It is for this very reason that6 million people selected health plans through private exchanges in 2015. Looking ahead, I think we can expect this number to rise. Why? Because private exchanges allow employees to choose the health plan that works best for them and, as I mentioned  earlier, that choice is very important these days.
The great news about private exchange growth is that it can be really good for businesses. Despite the recent implementation delay of the Cadillac Tax, many employers are trying to find ways to move away from rich benefit plans, while still offering employees the coverage they want. Moving to a private exchange means employees can choose the care they want at the price they want without employers being penalized. Because of the “win-win” they offer you can expect to see more businesses taking advantage of the private exchange option in the coming years.  

The key to success in any business lies in our ability to adapt. With each year comes new challenges and opportunities to improve the care we provide our employees. By preparing for these four trends you can ensure your business is prepared and your employees have the care they need for a healthy and prosperous 2016.