Category: Blog

How Businesses Can Adapt, Grow During COVID-19

Businesses Grow During COVID-19In order to survive – and even thrive – during these unprecedented times, small businesses have had to find new ways to make money. The UPS Store’s Small Biz Buzz survey found that 41 percent of small businesses in the United States took steps to modify their businesses in hopes of survival. Fifteen percent provided customers with curbside delivery options, 28 percent moved to online sales as their primary source of sales, and 65 percent made a concerted effort to grow their e-commerce capabilities.

More than 50 percent of those polled by a U.S. Census Bureau Small Business Pulse Survey said it would be at least half a year before pre-COVID levels of business come back. Looking at overall economic recovery, and we could be waiting five years or more for things to return to where they were before. When it comes to small businesses, it might take even more time; however, businesses that adapt will be more likely to succeed.

In order to increase the chances of the pivot being successful, Harvard Business Review recommends doing so based on the newly created conditions of the crisis. In the case of the pandemic, it’s created more telecommuting, disrupted supply chains, and required everyone to socially distance for work, leisure, and daily tasks. In light of these circumstances, there are three factors for a pivot to be successful.

Social Distancing Opportunities

With the pandemic demanding less contact, chiefly through social distancing, businesses must find ways to work around the new circumstances. One example is how dating websites have added video dating for users. Other examples include grocery stores limiting in-store customers, requiring workers and customers to wear masks, and adding more and wider delivery areas for groceries and other products.

Building on Original Business Concept

The second recommendation by HBR is that businesses examine how additional and different services or products complement the original business concept.

Let’s consider Airbnb; when travel and resulting bookings collapsed, the platform’s hosts received financial assistance that helped facilitate guest relations virtually. In a shift from its non-hotel lodging option via homeowners and apartment dwellers offering their abode for rent, Airbnb moved to provide hosts with the ability to hold online events, such as cooking classes, art therapy, virtual tours, or other activities.

Looking to the future and building on the opportunity for growth, tourists could learn about new places to travel and things to do and learn while visiting the new destination.

Adapting to Change by Adding Value

The final ingredient of a successful pivot, according to HBR, is that the move demonstrates how well a company can adapt, work through problems and adjust to market forces while proving profitable and resonating as a value in the consumer’s view.

Before the lockdown orders, Spotify placed a sizeable portion of its business model on having primarily free customers stream music on personal devices. Spotify would benefit in two ways – they wouldn’t have to send out Spotify-specific devices, along with relying on receiving advertisers’ income that free users would listen to in exchange for a free Spotify membership. However, when the pandemic hit, Spotify’s advertisers cut their marketing budgets, making this business model difficult for Spotify to sustain.

Spotify’s pivot offered podcasts for users from music artists, talk show hosts, celebrities, etc. By offering premium subscriptions for its podcasts, along with curated, niche programming, Spotify gave customers more control and a better value over previous media offerings.

While the pandemic doesn’t necessarily mean a “going out of business sign” for companies, it could spell the end of the road for those that don’t adapt to the new economy.

Sources

https://www.uschamber.com/co/start/strategy/metlife-us-chamber-small-business-index-covid-19

https://hbr.org/2020/07/how-businesses-have-successfully-pivoted-during-the-pandemic

https://www.uschamber.com/co/start/strategy/pivoting-your-business-to-survive-pandemic

2021 Social Security Tax and Benefit Increases Announced

Social Security Administration 2021 increasesThe Social Security Administration recently announced 2021 increases to both benefits and the taxable wage base for FICA taxes.

Increases Announced for 2021

Workers are facing a 3.7 percent increase in the taxable wage base subject to Social Security taxes, increasing the amount from $137,700 up to $142,800. This means high earners who make as much as or more than the taxable wage base will pay $8,853.60 of the employee withholding portion or $17,707.20 in total for the self-employed – who pay both employee and employer portions of the tax.

Retirees receiving benefits will only garner a 1.3 percent cost-of-living (COLA) raise in 2021, resulting in a raise of $20 per month for the average single beneficiary and $33 per month for the average retired couple. COLA increases for beneficiaries have been low for a long time, with several years seeing zero increases in the past decade or so. You can see the historic trend of COLA increases in the chart below, going back to 1975.

Historical Social Security COLA Increases1
Year Increase Year Increase
2020 1.3% 1997 2.1%
2019 1.6% 1996 2.9%
2018 2.8% 1995 2.6%
2017 2.0% 1994 2.8%
2016 0.3% 1993 2.6%
2015 0.0% 1992 3.0%
2014 1.7% 1991 3.7%
2013 1.5% 1990 5.4%
2012 1.7% 1989 4.7%
2011 3.6% 1988 4.0%
2010 0.0% 1987 4.2%
2009 0.0% 1986 1.3%
2008 5.8% 1985 3.1%
2007 2.3% 1984 3.5%
2006 3.3% 1983 3.5%
2005 4.1% 1982 7.4%
2004 2.7% 1981 11.2%
2003 2.1% 1980 14.3%
2002 1.4% 1979 9.9%
2001 2.6% 1978 6.5%
2000 3.5% 1977 5.9%
1999 2.5% 1976 6.4%
1998 1.3% 1975 8.0%

Medical Expenses Outpacing COLA increases

Low COLA increases are putting pressure on retirees’ finances as medical expenses are rising at a much faster pace, with some believing they are given too little weight in the COLA calculation. Moreover, retirees need to consider Medicare Part B and Part D premiums.

While the official 2021 premiums are not announced yet, there are estimates out there that Part B premiums (covering doctor and outpatient services) will raise $9 per month, or approximately 6.2% percent, from $144.30 to $153.30. These are just average figures, as there are income-related surcharges that apply to both Part B and Part D drug premiums. During 2020, for example, individuals making more than $87k per year and couples filing jointly making over $174k per year began paying higher premiums for Part B and Part D than other recipients, with those at the top of the surcharge paying almost $1,000 per month for Part B premiums alone.

Income Caps on Working Beneficiaries

Finally, there are new earnings limits for workers below full retirement age (age 66 for people born in 1943 through 1954). In 2021, those who are not at full retirement age will lose $1 in Social Security benefits for every $2 they earn over $1,580 a month ($18,960 per year). After reaching one’s full retirement age, there are no earning thresholds that will impact benefits.

Conclusion

The 2021 COLA increase continues the recent trend of coming in low and putting pressure on retirees’ finances, while medical expenses continue to rise at much faster rates. As a result, retirees will see less disposable income from their benefits, while high-earning workers will see continued tax increases that outpace benefit payouts. This puts pressure on all beneficiaries of the system.

1 Starting in 1975, Social Security benefit increases have been based on cost-of-living adjustments (COLAs). Pre-1975, the benefit increases were set by legislation.

Last Minute Financial Moves for Year’s End

Last Minute Financial Moves for Year's End 2020There are certain year-end financial transactions that must clear by Dec. 31 to be reported on the 2020 tax return. It’s important to take a good look at your financial portfolio in light of the plethora of unusual events that occurred this year. Now is a good time to see if you have fallen off track and reposition your portfolio for better opportunities in 2021.

Investment Portfolio

Despite the dramatic stock market drop that accompanied the outbreak of COVID-19 on our shores, markets have recovered remarkably well. This means the traditional strategy of harvesting gains and losses at year-end could be appropriate for many investors. When your capital losses are more than your capital gains for the year, you can claim up to $3,000 to reduce your taxable income and even carry over remainder losses on next year’s tax return.

Harvesting is also a good way to rebalance your asset allocation strategy, so you are well-positioned to meet long-term goals starting in the New Year. If you are interested in selling winners and losers to mitigate your 2020 tax liability, make sure, these transactions are fully completed by Dec. 31.

Tip: Some investors might be tempted to sell shares for a loss and then buy back into that position. However, take pains to avoid running afoul of the “wash rule,” which is when an investor purchases a “substantially identical” security within 30 days of a loss sale. Doing so diminishes the losses you can claim on your taxes, even if you buy it back in January. This also can occur inadvertently through automatic dividend and capital gains reinvestment purchases – so monitor your holdings and make sure there’s a 30-day lag between sale and reinvestment.

Retirement Accounts

For workers who invest in an employer-sponsored 401(k) plan, you have until the end of the year to defer up to $19,500 ($26,000 if you’re age 50 or older) from your paycheck. If you’d like to stash away more money, the combined annual limit for traditional and Roth IRAs is $6,000 ($7,000 for age 50+) for 2020. Note, however, that contributions for these accounts may continue to be made up until you file your 2020 tax return.

Tip: Given the potential for higher taxes under the new administration, it might be wise to max out after-tax Roth IRA contributions while taxes are low. When taxes are higher, traditional IRAs and 401(k)s tend to be more valuable because tax-deferred contributions help reduce current income. You also might want to convert a portion of traditional IRA funds to a Roth this year to take advantage of the lower tax environment. Convert only a strategic portion to avoid tipping your current income into a higher tax bracket.

Retirement Plan Withdrawals

You have only until year-end to withdraw up to $100,000 without penalty from a retirement plan if you have been directly affected by COVID-19 this year. Note, too, that subsequent income taxes on this withdrawal either can be spread out over a three-year period or avoided entirely if you re-contribute the funds over the next three years.

Tip: Legislation passed early in the year permits retirees to skip taking required minimum distributions in 2020. However, because the stock market has recovered nicely, and in light of higher taxes in the future, it might be a good idea to go ahead and take this distribution before year-end.

Education Savings Accounts

If your college student received a tuition refund this year because the class experience moved online, be aware that any refunds of College Savings 529 plans must be deposited back into that account. Otherwise, that money is considered a distribution for non-qualified expenses. Make that deposit back into the 529 account by year-end to avoid any taxes or penalties.

Tip: Parents and grandparents can reduce their estates by making a year-end gift to a student’s 529 plan. You may gift up to $15,000 ($30,000 for married couples) per beneficiary without incurring gift taxes or affecting your lifetime gift tax exemption ($11.58 million).

COVID-19 Vaccine Rollout: Where We Are So Far

COVID-19 Vaccine RolloutWhile the pandemic is not over, we do have some good news. There are vaccines and they will be available soon. Here’s where we are in terms of an overall plan and where states are with distributing the vaccines.

Operation Warp Speed

The current administration has already purchased hundreds of millions of doses of several vaccine candidates. Two of them are from Moderna and Pfizer and they’ve shown significant efficacy in Phase 3 clinical trials. The incoming Biden administration will take on distribution and has established a COVID-19 Task Force. A limited number of doses may become available as early as December.

The Interim Playbook

This document from the Center for Disease Control and Prevention (CDC) is the roadmap for state, territorial, tribal, and local public health programs and their partners. It focuses on how to plan and operationalize a vaccine response to the pandemic within their jurisdictions. It’s quite comprehensive and is a good reference for the coming months.

Phased Approach

In the Interim Playbook, the CDC has given states a set of planning assumptions by which they can develop their distribution plans and explains how the vaccine will likely be administered in phases.

  • Phase 1 – there is an initial limited supply of vaccine doses that will be prioritized for certain groups. The distribution will be more tightly controlled and a limited number of providers will be administering the vaccine.
  • Phase 2 – supply would increase and access will be expanded to include a broader set of the population, with more providers involved.
  • Phase 3 – there would likely be sufficient supply to meet demand and distribution would be integrated into routine vaccination programs.

Common Themes and Concerns from State Plans

The Kaiser Family Foundation (KFF), a non-profit organization focusing on national health issues, sought to collect plans from all 50 states and DC. As of Nov. 13, they’ve reviewed 47 of these plans and have singled out key areas contained within each plan.

  • Identifying priority populations for vaccination. Each state will determine who will be first in line, initially; however, every plan highlights the following categories as being the priority during Phase 1: healthcare workers, essential workers, and those at high risk (older people and those with pre-disposing health risk factors). A majority of states (25 of 47, or 53 percent) have at least one mention of incorporating racial and/or ethnic minorities or health equity considerations in their targeting of priority populations. 
  • Identifying the network of providers in their state will be responsible for administering vaccines. Even though states are at different points in the process, providers will likely include hospitals and doctors’ offices, pharmacies, health departments, federally qualified health centers, and other clinics that play a role in administering vaccines today. Given the need to quickly vaccinate most residents, additional partners will be needed, such as long-term care facilities, and will (potentially) set up public locations like schools and community centers for mass vaccinations.
  • Developing the data collection and reporting systems needed to track the vaccine distribution progress. Many states are relying on (and often expanding) existing state-level immunization registries, while other states are developing new systems or using those provided by the federal government. To sum it up, each state is at a different stage in this process.
  • Laying out a communications strategy for the period before and during vaccination. The CDC has asked states to design plans that anticipate and respond to different populations and include the need to address misinformation and vaccine hesitancy. Not surprisingly, some of these states’ plans are detailed while some are not.

All of these things are high-level summations of what is planned so far. For a more detailed explanation, check out the Interim Playbook from the CDC. The COVID-19 situation is ever-changing, but the most important takeaway is that steps are being put in place to help protect us all. Stay safe.

Sources

States Are Getting Ready to Distribute COVID-19 Vaccines. What Do Their Plans Tell Us So Far?

https://www.nytimes.com/2020/11/16/health/Covid-moderna-vaccine.html?action=click&module=Top%20Stories&pgtype=Homepage

https://www.newsweek.com/fauci-optimistic-about-covid-19-vaccine-says-high-risk-could-get-it-december-1546384

https://www.cdc.gov/vaccines/imz-managers/downloads/COVID-19-Vaccination-Program-Interim_Playbook.pdf

Will StarLink be the Next Disruption to the Telecommunication Industry?

StarLinkWith every new project comes expectations, uncertainties, questions, opposition, and more. Elon Musk’s StarLink internet is one such project.

Just last month, on Nov. 24, SpaceX launched 60 StarLink internet satellites – making a total of more than 900 of its flat-panel satellites already on low earth orbit (LEO). This also marked the company’s 23rd space launch since the start of 2020.

But just what is StarLink; why is it a big deal; and will it replace existing internet infrastructure?

Follow along for information already in the public domain that will help answer some of these questions.

What is StarLink?

StarLink is an initiative by SpaceX that aims to provide internet from space. Its goal is to do this through a low earth constellation of micro-satellites that promise high speed and low latency internet access to all parts of the world. What this means is that you can access fast internet from any corner of the world, whether in the forest, in the middle of the ocean, or anywhere else.

How Does StarLink Internet Work?

First, a little history. Product development started in 2015, and by February 2018, two prototype test flights were launched. In May 2019, the first large deployment made up of 60 operational satellites was launched. Since then, it has been a continuous process to send more satellites into space. SpaceX intends to have launched 12,000 satellites by 2028, with an ambitious target of 1,440 per year.

So how does StarLink internet work? Unlike other satellites that are placed in higher earth orbits, StarLink satellites are placed in low earth orbits. The high-placed satellites have to travel long distances, which leads to high latency – and this is what SpaceX intends to solve.

Will StarLink Replace ISPs?

Currently, service providers like Verizon and AT&T are already spending millions to reinforce their fiber infrastructure reach to cover more ground. In addition, 5G is already available in many areas and promises superior reliability, negligible latency, and high speeds. Yet more StarLink satellites are being sent to space.

In fact, if the project is successful, there will be a constellation of satellites surrounding the earth as Musk plans to have an additional 30,000 added to the initial approved 12,000 (although this doesn’t go well with astronomers, who have raised concerns that this will ruin the night sky).

So, will StarLink replace other ISPs? There is no telling the long-term plan that SpaceX has, but one thing that Musk has given an assurance on is that he intends to serve only remote areas and mobile applications, such as in planes, trains, and ships.

If we were to compare StarLink and 5G, you would find that they do have different characteristics. However, it would cost a lot more for 5G to cover large areas, while StarLink would be able to cover most of the world if all satellites are placed correctly. Nevertheless, the two may work together. For example, in situations where there is no internet connection, StarLink could provide internet backhaul to 5G remote towers.

If you are in a densely populated city, you will still need your ISP. According to Musk, StarLink can’t work in cities with dense populations due to bandwidth limitations.

When Will StarLink be Available to the Public?

On Oct. 26, 2020, a public beta test was launched in select areas in the northern United States and Canada. StarLink internet is expected to be available in more regions in 2021.

One of the few instances of when StarLink has publicly been reported on is by Washington emergency responders in early August when the organization offered the internet to areas devastated by wildfires. Following an interview with CNBC, emergency telecommunications leader Richard Hall praised StarLink as being quick to set up and reliable.

As we wait for the internet to go public, one sure thing is that there are a lot of interested people. In March 2020, SpaceX got a license for up to one million user terminals from the Federal Communications Commission (FCC). By August, there were already more than 700,000 people registering interest across the United States, and so the company asked for expansion for up to 5 million user terminals.

Final Thoughts

As already pointed out, the StarLink internet might not initially disrupt the monopoly of the telecom sector. Instead, it could be a beneficial project and even complement the telcos.

Keeping in mind that the internet has played a great role in improving economic opportunities and easing communication, StarLink could be the bridge to help solve the digital divide by providing internet to remote areas.

How to Effectively On-board & Train Employees Virtually

How to Effectively On-board & Train Employees VirtuallyWith COVID-19 still requiring remote working, companies that effectively on-board new workers retain their workers longer, have better worker performance, and increase their profits by almost 100 percent, according to the U.S. Chamber of Commerce. However, there are many considerations that companies should take during this important process.

For remote orientations, a welcome package that discusses the company’s products or services can be emailed to attendees prior to the live introduction. It’s also imperative that essential employees for the new hires (training and supervisors, for example) and existing employees who they will be working with are on the virtual meeting for introductions.  

Other considerations include maintaining a sense of professionalism. If a company has a dress code, training managers should serve as an example by dressing appropriately and communicating the requirement to new hires. This also can apply to the physical background of remote workers – having a professional-looking environment with muted colors.

Equip Workers With Varied Communication Tools

While almost everyone uses email to communicate, Harvard Business Review (HBR) suggests that email should not be the sole method of communication for remote workers. Along with team communication platforms, video conferencing benefits workers because communicating with body language helps normalize the remote work experience. Video conferencing with recording capabilities also can be used for online training so that employees may access this resource at their own convenience.

Managing Virtual Communication

Regardless of how virtual employees communicate, there needs to be some structure to find the right balance for efficiency. Examples could include using instant messages for urgent but simple communication needs. When it comes to video conferencing, consider touching base for 10 to 15 minutes once a day for a check-in or feedback session. Determining communication frequency depends on when workers work (different time zones, staggered shifts, etc.) and what’s effective for managers and employees.

Schedule a check-in phone call – either once a day or perhaps once in the morning and once in the late afternoon. It can be modified depending on the individual or the type of worker, be it a call with a single employee or an entire group if they are used to working together.

HBR says that workers are heavily influenced on how to deal with abrupt changes or crises based on their leaders’ actions. Whether a manager is calm and collected or anxious and not in control, those they are supervising will act similarly. Regardless of the situation, managers who empathize with feelings of uncertainty and give verbal encouragement will impart a sense of confidence to the entire team.

Regardless of how social a person is during office hours, the lack of morning greetings, break room conversations, water cooler chat, and saying goodbye when leaving the office reinforces the isolation of working remotely – and that can affect anyone.

Therefore, weaving in time for employees to build rapport is also recommended by HBR. Whether it’s going around virtually to ask how everyone’s weekend was, or having the company deliver a meal to remote workers for a virtual office party, it’s been reported that these types of activities relieve feelings of isolation and garner goodwill with the company.

Businesses that take the appropriate steps to build and develop a balanced remote workforce can survive and thrive, but only by adapting to the very different demands of working virtually.

Sources

https://www.uschamber.com/co/run/human-resources/onboard-employees-during-covid-19

https://hbr.org/2020/03/a-guide-to-managing-your-newly-remote-workers  

Our Top 6 Year-End Tax Planning Tips

Our Top 6 Year-End Tax Planning 2020This has been a year of economic and tax uncertainty with the impact of the COVID-19 pandemic, potential stimulus bills, and the presidential election. As a result, tax planning may be more important than usual this year. To help guide you, we will cover six year-end tax planning strategies – three for individuals and three for businesses.

Individual Year-End Tax Planning Tips and Strategies

1. Take advantage of above-the-line charitable deductions.

Unlike previous years, where taxpayers needed to itemize their deductions in order to see any tax benefit from charitable deductions, everyone can benefit on their 2020 tax return. The CARES Act created an above-the-line charitable deduction for taxpayers who don’t itemize. In order to benefit from the $300 cash contributions deduction, make sure to donate before the end of the year if you haven’t already.

2. Stimulus Check Impact

The CARES Act also created the stimulus payments of up to $1,200 per taxpayer and $500 per qualified dependent child. While the initial round of stimulus checks was based on 2018 or 2019 tax return filing information, these stimulus payments are technically pre-paid 2020 tax credits. As a result, your 2020 tax return will calculate the credit due based on your income level, and there’s nothing but good news here. If your 2020 return shows you should receive an additional credit, you can claim it on your return. But if your return shows a credit less than a stimulus check you’ve already received, there is no clawback.

3. Investment With Opportunity Zones

Congress created powerful incentives for investing in very specific geographic regions by creating special tax treatment for “opportunity zones.” Investments in opportunity zones offer taxpayers the potential to defer tax on gains until as late as 2026. Moreover, there is the potential to recognize only 90 percent of gains on investments held for at least five years; and no tax on those held for 10 years (there are other rules, but they are out of the scope of this article). As a result, investments in opportunity zones can provide tax-free potential and protect against future tax law changes.

Business Year-End Tax Planning Tips and Strategies

1. Accelerate AMT Refunds

The Tax Cuts and Jobs Act repealed the corporate Alternative Minimum Tax (AMT) and let companies claim all of their unused AMT credits in any taxable year beginning after 2017 but before 2022. The CARES Act accelerated the refund timeline, letting companies claim all their unused credits in either 2018 or 2019. For many, the most effective way to take advantage of this is to file a tentative refund claim on Form 1139, which must be done by Dec. 31, 2020.

2. Use Current Losses for Quick Refunds

The CARES Act brought back a tax provision that allows businesses to take current losses and offset them against income from prior years and receive refunds now. Net operating losses (NOLs) that are the result of 2018, 2019, and 2020 business activity can be carried five years back to claim refunds against taxes paid.

Careful consideration should be given to the strategy for claiming these NOL carry-backs because, depending on the type of business entity, your tax rate may have been higher in some of the five available years versus others. Make sure to leverage any tax rate arbitrage to maximize your benefit.

3. Payroll Tax Deduction Timing

Another provision of the CARES Act gives employers the option to postpone payment of their portion of Social Security taxes until the end of 2020. The deferred amounts are due half by the end of 2021 and 2022. This may be great from a liquidity perspective; however, depending on your business’s accounting, this could also mean a deferral of the deductibility of this expense as well. You should weigh the liquidity benefits of the deferral versus the value of a current year deduction – especially considering the accelerated NOL provisions discussed above.

Conclusion

These are just a few of the potential year-end tax planning strategies you can employ before the end of 2020. Make sure to consider these and speak with your tax advisor to see what makes the most sense for your situation.

A Realistic Picture: Will You Be Able to Afford In-Home Elder Care?

By the end of September, the nation had recorded over a quarter-million cases of COVID-19 and nearly 60,000 deaths in nursing homes that were attributed to the disease. The recent pandemic offers yet another reason why more than 90 percent of seniors say they want to grow old in their homes rather than move into a senior housing facility.

But just how feasible is that goal, from a financial perspective? Much depends on how independently you can live for the rest of your life. That is something we cannot plan. Even elderly people with an excellent gene pool and no known health conditions can experience a fall or other accident that could render them helpless. And the older you get, the higher the risk of cognitive decline, which can make it unsafe to live alone.

However, you might still be able to live out your golden years in your own home if you can afford to pay for in-home care. Each year, Genworth Financial publishes a Cost of Care Survey that examines the cost of various types of long-term care. However, when you break down the assumptions, you might find the survey’s cost estimations are lower than what many people actually pay.

For example, the average fee for homemaker services (household chores, prepare meals, run errands, accompany to appointments) is $22.50 an hour. For a home health aide (help with bathing, dressing, toileting and simple first aid) the average hourly wage is $23. Depending on your location, you could pay more for a company that employs home workers or pay less for independent caregivers. Be aware that if you choose the independent route, you’ll have to vet abilities, trustworthiness and schedule your own back-up resources if they don’t show up for some reason.

However, according to the Genworth report, the average daily rate for a homemaker is only $141, or $4,290 a month. That breaks down to about six hours a day. What happens when you reach a point where it’s unsafe for you to mill about the house by yourself because you might leave the stove on, or you might fall and there’s no one to help. If you pay a caregiver to stay with you 16 waking hours a day, that would cost you $360 per diem, or about $11,000 a month.

If you don’t sleep well and tend to have to use the restroom at night, you might need to pay for a night shift caregiver just to make sure you get around OK. That means 24-hour care will run you more than $16,000 a month, or $195,000 a year – and that’s in today’s dollars.

If you’re planning on in-home care 10 to 15 years from now, those rates will probably be higher.

There are a couple of other issues to note. First, you don’t need to be completely incapacitated to require 24-hour care. It could be as simple as mild but gradual progressive dementia; a mobility issue; or fear of living alone after a spouse dies. Also, if a couple is living comfortably at home with 24-hour care, that expense probably won’t go away if one spouse dies – but household income will probably decrease.

There are alternative ways you might consider that would allow you to stay home throughout your elder years, and the earlier you plan for them the better they will work out. First of all, be nice to your grown children. Not only might you prefer to move in with them or they move in with you, but if things don’t work out, they will likely be the ones to determine where you live out your golden years.

Second, consider your housing situation and if you can negotiate room and board to one or more caregivers in exchange for their help. You might also consider cohabitating with an elderly friend or family member to help share caregiver fees, and perhaps eliminate the need for excess hours a day. Better yet, consider moving in together with several friends to help spread out the costs and improve your chances that some seniors will be less informed than others.

Since 2010, on average more than 10,000 Baby Boomers turned age 65 per day and by the year 2030, all Baby Boomers will be 65 or older. Among them, 52 percent will require long-term care in their lifetime. If you want to remain at home but worry about the cost of caregiving, you’ll have plenty of housemates from which to choose.

Why Gratitude is Important During a Pandemic

Why Gratitude is Important During a PandemicWe’re living in unprecedented, challenging times. If you’re feeling stressed and scared, you’re not alone. However, there is a way to navigate through all of this uncertainty: gratitude. Studies have shown that keeping in mind the things you’re grateful for on a regular basis not only helps you mentally but also physically, which is something we all need these days.

Gratitude Improves Your Immune System

According to Lisa Aspinwall, Ph.D., a psychology professor at the University of Utah, there’s data to back this up. In one study, researchers compared the immune systems of healthy, first-year law students who were under stress and characterized themselves as optimistic to their more pessimistic classmates. Result: The former maintained a higher number of blood cells, which protect the immune system. Specifically, white blood cells are key players in your immune system and move through blood and tissue looking for foreign invaders (microbes) such as bacteria, viruses, parasites and fungi. When they find them, they launch an immediate attack. Tip: The moment you notice that you’re appreciative of something – the sun is shining, the sky is blue, you have clean water to drink – stop and savor. Bask in the experience. 

Gratitude Affects Your Brain

When you’re feeling appreciative, it wires and fires new neural connections to the bliss center and enhances dopamine and serotonin, the neurotransmitters responsible for happiness. Gratitude also reduces fear and anxiety by regulating the stress hormones; and it fosters cognitive restructuring by evoking positive thinking. Tip: When you’re eating, give thanks for the bounty before you. Make mealtimes mindful.

Gratitude Reduces Pain

In the research report, Count Blessings Versus Burdens (2003), patients who kept a gratitude journal reported reduced pain symptoms and were more inclined to work out and cooperate with the treatment procedures. A deeper dive revealed that by regulating the level of dopamine, gratitude fills us with more vitality, which reduced the subjective feelings of pain. Tip: Try keeping a journal. If you think you have nothing to be grateful for, think about all the little things you have. You might find that you’re taking for granted certain abilities or privileges you have that others don’t.

Gratitude Affects Sleep

Studies have shown that receiving and displaying simple acts of kindness activates the hypothalamus, and thereby regulates all bodily mechanisms controlled by the hypothalamus, one of which is sleep. The hypothalamic regulation by gratitude helps us get deeper and healthier sleep, naturally. Tip: Hold the door for a stranger. Let someone have that parking space you both came upon. Share that compliment that’s on the tip of your tongue. To give is to receive. You might just rest easier.

Gratitude Gets Rid of Toxic Emotions

The limbic system is the part of the brain that’s responsible for all emotional experiences. It consists of the thalamus, hypothalamus, amygdala, hippocampus, and cingulate gyrus. Research has shown that the hippocampus and amygdala, the two main sites regulating emotions, memory, and bodily functioning, get activated with feelings of gratitude. Specifically, what we call emotions or feelings are neural activations in the neocortical regions of the brain (Moll et al. 2005). Further, a study conducted on people who were looking for mental health guidance revealed that those who wrote letters of gratitude, in addition to having regular counseling, felt better and recovered sooner. In the other group, people who journaled about their negative feelings felt anxious and depressed. Tip: In addition to journaling, maybe there’s a letter you need to write to someone expressing how you feel, releasing a past hurt. The simple act of writing can be powerful. You don’t even have to send it to feel better.

Right now, when we’re faced with so many unknowns, staying present and giving thanks can do a world of good. Give it a try and see.

Sources

https://www.adventhealth.com/blog/why-gratitude-important-during-coronavirus-pandemic

https://www.webmd.com/women/features/gratitute-health-boost#1

https://www.betterhealth.vic.gov.au/health/conditionsandtreatments/immune-system?viewAsPdf=true

https://positivepsychology.com/neuroscience-of-gratitude/

https://www.psychologytoday.com/us/blog/minding-the-body/201111/how-gratitude-helps-you-sleep-night

Exploring Brain Computer Interface: Tech That Connects to Your Brain

Tech That Connects to Your BrainImagine using your mind to control machines, or your employer reading how you feel in real-time from a dashboard? This is the future of BCI technology.

Do we really need this technology? What are the potential benefits and possible implications of this emerging field?

What is BCI?

Brain-Computer Interface (BCI) is also referred to as a Brain-Machine Interface or Neural Interface.

Wikipedia defines BCI as a direct communication pathway between an enhanced or wired brain and an external device.

The brain is said to process billions of bits of information per second and runs on electrical signals that could control electronics, and BCI attempts to create this connection.

The BCI technology that connects internally (invasive BCI) or externally (non-invasive BCI) to the brain is meant to read brain activity and process it to information and even transmit information back to the brain.

Although this research began in the 1970s, the first neuroprosthetic device to be implanted in humans was done in the mid-1990s. Currently, large tech firms and a good number of startups are already working on producing cheaper, safer, and more accurate BCIs.

The hype around BCI has been pushed by advanced modern computing, data science, machine learning, and neural networks. A combination of the brain and artificial intelligence would surpass human capability.

Applications of BCI

BCI is already used in medicine to measure brain signals for medical applications such as cochlear implants, which are used by individuals with hearing deficits. These implants translate audio signals to electric pulses that are sent directly to the brain.

Other uses in medicine include detection and diagnosis, such as forecasting and detecting abnormal brain structure and other brain disorders such as epilepsy.

According to researchers, BCI could even replace lost functions, such as speaking or moving and general control of the body. This is beneficial to people with different forms of longstanding paralysis, such as that caused by a stroke.

BCI would also help improve the quality of life for elderly patients, especially due to changes in memory and brain function as a result of aging. Assistive BCI would help those suffering from motor control impairments to control home appliances in a smart home.

BCI in Business

Although initially meant to help in medical issues, other applications of BCI are emerging. Several companies and startups are exploring application of BCI not related to medicine. These fields include:

  • Marketing – to help measure attention levels of commercial and political ads, with an intention to optimize the ads. Companies will benefit from brain data as it will help increase product or service personalization.
  • Workplace analysis – to help improve performance at work. This is possible using headbands that measure mental fatigue, the cognitive state, stress levels and focus levels. As a result, the work environment would adapt to employee stress levels and thoughts. For drivers operating dangerous machines, BCI will help analyze signals of drowsiness and give an alert or stop the machine to avoid accidents. Employers could use BCI when evaluating, monitoring and even training employees.
  • Education – to help teachers personalize their interaction with students depending on the students’ ability to grasp concepts.
  • Entertainment – BCI offers an immersive experience with the ability to control avatars in video games using thoughts. It would be possible to produce games that respond to the mood of players and their attention level, thus creating a personalized experience.
  • Military – to help in controlling or piloting a swarm of drones.

BCI Challenges

It is reasonable to have technology that improves the quality of life for people who have disabilities. But when it comes to augmenting functions of a physically fit human, this technology raises ethical concerns and debates.

First, who will own the data produced by our brains? We already have cases of personal data generated on the internet that is being sold. How safe would the data be that is generated by BCI; especially considering that BCI is invasive and involves sensitive personal information such as feelings, moods, and emotions.

The thought that a third party can access your personal data without your knowledge brings up questions of privacy. Another person would know exactly how you feel at a given time; and if companies were to roll out the use of BCI, what rights would employees have?

What would happen if the BCI device is hacked? Brain data could be intercepted by hackers who would then know more about you than you’d want to share.

Human augmenting will also give an unfair advantage over those who cannot afford BCIs; and at some point, the efforts to transcend human limitations could be a disaster.

More potential risks include people being controlled, misuse by rulers, psychological harm, unknown long-term mental effects, and physical harm such as brain damage or hemorrhaging in cases of invasive BCI.

The Future of BCI

The BCI technology offers many benefits. But before actual BCI systems reach the market for a consumer applications, the risks and unknowns can’t be ignored. This begs for a plan on ethical and policy issues. Business leaders also should start considering a BCI strategy as well as new BCI business models to balance the potential benefits and address the risks.