The ‘Personal’ in Personal Finance
Picture this: Two buddies hiking through the woods, when suddenly, out pops a massive bear. One guy takes off like a rocket – survival instincts kicking in. The other, oddly composed, yells after him, “What’s the point? You can’t outrun a bear!” The sprinting hiker retorts, “I don’t need to outrun the bear, I just need to outrun you!”
Sometimes, competition is the key to success. Beating your colleagues in the company fantasy football league makes you the water cooler hero. Getting in on a high-flying stock will make you a star at wedding conversations. Those feel-good victories definitely have their place, and may save your life in a bear attack.
But here’s the twist: When it comes to your personal financial goals, it’s not about beating anyone. It’s not even about the S&P 500. Imagine someone beating the S&P 500 by 10% a year, but at age 83 they’re sitting on a park bench, struggling to pay their electric bill. What did the outperformance bring them? Bragging rights won’t keep the lights on.
So when it comes to your personal finances, remember:
- Your goals, your rules: Whether it’s buying a house, retiring in comfort, or traveling the world, your financial goals are all about you. What your neighbor or coworker is doing is irrelevant. Focusing on your individual needs and aspirations will help create a personalized investment plan rather than chasing someone else’s dream.
- The risk factor: Remember, not all investments are created equal. Trying to “win” by picking riskier stocks might get you those sweet bragging rights…for a while. But if it jeopardizes your long-term financial stability, is it really worth it? Picking investments based on your risk tolerance keeps you focused on the bigger picture.
- Time is on your side: Investing is a long game. Sure, seeing your portfolio outperform the market feels great, but what if those gains come with a side of heart-palpitating-volatility? A slow and steady strategy tailored to your needs sets you up for sustainable, long-term growth.
So, the next time you start comparing your portfolio to your buddy’s, stop. Remember, it’s not a competition. Focus on building a financial future that secures the life you want to live. After all, what good is bragging about outperforming a bear market if you can’t pay your bills?
This material has been prepared for informational purposes only, and is not intended to provide or be relied upon for legal or tax advice. If you have any specific legal or tax questions regarding this content or related issues, please consult with your professional legal or tax advisor.
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Federal Staffing Mandate For Nursing Homes Means Trouble For Staffing
Hard hit by the pandemic, the nursing home industry is still struggling to recover and rebuild its workforce. Standing in its way is the Biden Administration’s proposed federal staffing mandate. If passed, this mandate will cost nursing homes billions of dollars, compromise access to care for seniors, and increase the challenges already facing operators who are already responding to industry flux by limiting admissions and closing facilities.
According to a recent report by the American Health Care Association (AHCA), despite higher wages, the nursing home sector suffered the worst job losses out of all other health care sectors in the Covid period. In order to return to pre-pandemic levels, another 130,000 workers would still need to return to the industry.
The industry is up in arms and urging support for the Protecting Rural Seniors’ Access to Care Act, which would prohibit the Centers for Medicare and Medicaid Services (CMS) from finalizing its proposed federal staffing mandate for nursing homes, and would establish an advisory panel on nursing home staffing. The staffing mandate proposed by CMS would compel nursing homes to meet unjustified staffing minimums, without offering any resources or workforce development programs to soften the impact.
The proposed rule consists of 3 central staffing proposals:
- The first calls for minimum nurse staffing standards of 0.55 hours per resident day for registered nurses and 2.45 for nurse aides.
- The second rule mandates having an RN on site 24 hours a day, 7 days a week.
- The final rule imposes additional facility assessment requirements.
According to a joint letter of protest written by the American Health Care Association and the National Center for Assisted Living, nearly 95% of nursing homes do not meet at least one or more of the three proposed requirements of the proposal. If the proposed rule is implemented, facilities would be forced to downsize or close down – displacing hundreds of thousands of nursing home residents.
The AHCA’s 2024 State of the Sector report asserted that if the staffing proposal is finalized, the sector will need to inject 100,000 more staff members into the workforce at an annual cost of $7 billion. An anticipated 280,000 residents would be displaced as facilities would be forced to downsize or close and the result would limit access to care for our most vulnerable population.
Ensuring that our nation’s sick and elderly population receives safe, reliable, and quality nursing home care is crucial. Further limiting the nursing home industry’s access to a competent workforce, without offering programs or funding to soften the blow, is untenable for both the industry and its beneficiaries.
This material has been prepared for informational purposes only, and is not intended to provide or be relied upon for legal or tax advice. If you have any specific legal or tax questions regarding this content or related issues, please consult with your professional legal or tax advisor.
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5 Essential Qualities of Successful Leaders
Whether you are running a small business or are the CEO of a Fortune 500 company, having great leadership is critical for the success of any organization. Great business leaders don’t just inspire their employees to work harder and achieve more – they create a positive work culture that fosters growth, development, and success. The best business leaders create a vision for their company and help their employees turn that vision into a reality.
Becoming a great leader is a process — one that thrives on embracing challenges, seeking feedback, building connections, and cultivating understanding. While some leaders have certain innate skills that allow them to thrive, the majority of business leaders develop the necessary skills through a continuous journey of learning and growth. According to Professor Linda Hill, chair of the Leadership Initiative and author of Collective Genius: The Art and Practice of Leading Innovation, great leaders have intentionally put themselves into situations where they’ve had to learn, adapt, and grow. Finding and capitalizing on these situations is critical for developing the tenacity and fortitude to motivate and guide others.
There are certain qualities that great leaders need to have, like excellent communication, problem-solving skills, and delegating skills. I’ve written about these skills before, and they are a must for any strong business leader. Here are 5 additional qualities for successful leadership – according to Professor Linda Hill, along with ideas on how to help develop them:
- Curiosity
Great leaders understand that curiosity is a mindset. They enjoy exploring uncharted waters and trying to understand the art of the ‘possible.’ They can look at situations and problems from the perspective of external stakeholders, such as customers or competitors, which enables them to better consider the broader context, beyond just an internal organizational viewpoint.
How to nurture curiosity
Be open to new experiences and people outside of your immediate division, function, and industry. Don’t be afraid to question the status quo, even if the questions seem basic or naive. The inspiration for the Polaroid instant camera came when Edwin Land’s daughter wanted to see a photo her father had just taken. When he explained that the film had to be processed, she wondered aloud, “Why do we have to wait for the picture?”
- Adaptability
As technology evolves, the world changes faster and stakeholder expectations grow quicker. As a leader, you need to be able to adjust to these ever-shifting demands and cultivate an agile work culture. Adaptability allows you to swiftly respond to different issues, pivot when needed, and embrace new opportunities and challenges.
How to strengthen your adaptability
Venture beyond your comfort zone and push yourself to work in new environments with different kinds of people. By taking on assignments and seeking experiences that demand flexibility, you can help foster your adaptability.
- Creativity
Any idea that is new and helpful to your company – is creative. Diversity of thought is the driving force behind true innovation, as each of us brings our own unique perspective and “slice of genius” to the table.
How to cultivate creativity
A leader’s job is not to come up with all the great ideas on their own, but rather to establish an environment that nurtures creativity in others. Encourage and promote diverse perspectives on your team. Different viewpoints standing against each other is when creativity flourishes and great ideas are born.
- Authenticity
Being genuine and true to who you are is fundamental to success in any role and is even more important in leadership roles. Your talent and skills are not enough; people need to trust your character and connect with you, otherwise they will not be willing to take risks with you.
How to show your authenticity
Understanding how people perceive you is crucial for growth, but asking for and receiving feedback is not easy. Seek feedback at a time when you can remain open, without becoming defensive. Start by asking for feedback in more casual, low-pressure situations and work your way up to more formal and intensive reviews.
- Empathy
Understanding and connecting with others on an emotional level is crucial to building trust and strengthening relationships. Great leaders need to see their employees not as robots, but as valuable team members. Leaders need to understand what matters to their employees, what their priorities are, and be able to find common ground. Developing empathy will give you a deeper appreciation of the challenges others are working through, and will help you foster a more supportive and nurturing environment.
How to develop greater empathy
Make a point to interact with employees by asking questions about their work preferences, the pressures they’re under, and their strengths and weaknesses. Your goal is to build understanding and connection. If someone’s opinions or actions strike you as illogical, it’s likely you don’t understand what matters most to that person.
Leadership isn’t a quality you either innately possess or lack. It is the composition of different skills that can be developed and perfected over time.
This material has been prepared for informational purposes only, and is not intended to provide or be relied upon for legal or tax advice. If you have any specific legal or tax questions regarding this content or related issues, please consult with your professional legal or tax advisor.
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Nonprofits and Insurance: Getting it Just Right
Whether you’re starting up a not-for-profit organization or your nonprofit has existed for years, you may have questions about insurance. For starters: What kind do you need? How much? Are you required by your state or by grantmakers to carry certain coverage?
Much depends on your organization’s size, scope and programming. But your goal should be to carry what’s required to meet any regulatory or funding mandates and to address legitimate risks. Although there are many types of insurance available to nonprofits, it’s unlikely that you need all of them.
The essentials
One type of insurance you do need is a general liability policy for accidents and injuries suffered on your property by clients, volunteers, suppliers, visitors and anyone other than employees. Your state also likely mandates unemployment insurance as well as workers’ compensation coverage.
Property insurance that covers theft and damage to your buildings, furniture, fixtures, supplies and other physical assets is essential, too. When buying a property insurance policy, make sure it covers the replacement cost of assets, rather than their current market value (which is likely to be much lower).
Depending on your nonprofit’s operations and assets, you might want to consider such optional policies as automobile, product liability, fraud/employee dishonesty, business interruption, umbrella coverage, and directors and officers liability. Insurance also is available to cover risks associated with special events. Before purchasing a separate policy, however, check whether your nonprofit’s general liability insurance extends to special events.
Biggest threats
Because you’re likely to be working with a limited budget, prioritize the risks that pose the greatest threats. Then discuss with your financial and insurance advisors the kinds — and amounts — of coverage that will mitigate those risks.
Be careful not to assume insurance alone will address your nonprofit’s exposure. Your objective should be to never actually need insurance benefits. To that end, put in place internal controls and other risk-avoidance policies such as new employee orientations and ongoing training.
Don’t go overboard
Some organizations buy more insurance coverage than they need, which can be costly. Make sure you’ve thoroughly analyzed your nonprofit’s risks and buy only what’s necessary to protect people and assets.
This material has been prepared for informational purposes only, and is not intended to provide, nor should it be relied upon for, legal or tax advice. If you have any specific legal or tax questions regarding this content or related issues, please consult with your professional legal or tax advisor.
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Webinar Recap | Clarifying NYS Budget Impact on Universal Meals
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