Category Archives: Business Reports

By Tucker Lounsbury

Cyberattacks on small- and medium-sized businesses (SMB) continue to rise and will only intensify over the next few years. With the increased prevalence and cost of attacks, the absence of a safety net like cyber insurance is no longer an option SMBs can afford. 

Assessing The Threat

Ransomware is one of the most common forms of hacking and includes the cybercriminal holding files or devices hostage in exchange for payment. Unfortunately, bad actors know that SMBs, in general, are less likely to have the full spectrum of safeguards in place, leaving them particularly vulnerable to this growing threat. 

According to Astra, ransomware attacks have risen by 13 percent in the past five years, with an average cost of $1.85 million per incident. By 2031, it is predicted that a ransomware attack will happen every two seconds.

While training employees and requiring measures like strong passwords, regular password resets and multi-factor authentication are critical lines of defense, these steps are no longer enough.

Establishing a Safety Net  

By Renee Walrath

With the 2024 election drawing near, political tensions have increased and will only grow stronger over the upcoming months. Many Americans are bracing for these divisive political conversations, at home and work. 

Although there are always going to be some employees who are eager to share their opinions, a recent study found that over half of workers try to avoid having any discussion of politics in the workplace. That same survey concluded that 51 percent of workers believed that political discussions in the workplace hurt the work environment. 

While it should go without saying that the workplace is not an ideal place to have these conversations, it is unrealistic to expect discussions regarding political concerns not to crop up over the next several months. To help navigate political discourse in a professional environment, companies should be proactive in their approach. Ensure there are clear guidelines and expectations put in place to limit or eliminate any excessive political disruptions. Consider these practical recommendations to effectively navigate political conversations in the workplace. 

First and foremost, establishing clear policies or boundaries is essential. Formalizing policies set a framework of how conversations should be conducted to ensure no ostracizing of employees. 

Professional environments always require mutual respect among all parties. Employers should maintain vigorous anti-discrimination and anti-harassment policies to cover any protected characteristics such as race, gender, religion, etc., which often arise in political dialogue. 

By Christopher K. Kelly

Small business owners in New York face many decisions each day. Being part of a community bank, it’s not uncommon for us to be involved in conversations on how to best attract, retain, and take care of employees in terms of compensation, health benefits, vacation, and retirement.  This last item, retirement and financial security, is an increasingly common topic of interest. In our discussions with workers in New York, most understand there is a need for them to be saving for retirement. They know that people are living longer (meaning income will be needed for a longer period of time), Social Security benefits will not meet their income needs, and health insurance in retirement will be a significant expense.  These conversations often lead to two questions: (1) Does the employer offer a retirement plan and (2) Does the employee have the capacity to make saving for retirement a priority in their budget?  

Over the past several years, there has been an increased effort at the state and federal levels to help small businesses provide their employees access to a retirement savings plan. Small business owners have a variety of retirement plans to choose from, including: 401(k), 403(b), Profit Sharing, Pension Plans, SIMPLE IRAs, and SEPs.  Each of these programs offers its own set of features, requirements, varying complexity, and administrative costs. Knowing which type of retirement plan to implement is not an easy task, and often leads to no selection at all. The result is that many workers in New York are still not covered by an employer-sponsored retirement plan.

In an effort to give more employees access to a retirement plan, many state governments have developed their own programs. While these retirement programs differ by state, the common features include: mandates for businesses to participate based the number of employees, automatic enrollment for employees to save 3 to 5 percent of their pay into a Roth IRA, the ability for an employee to opt-out of saving, designated investment options, and low administrative fees.  

By David M. Kopyc, CRPC

The largest wealth transfer in the history of mankind will take place over the next three decades.  It is estimated to be in excess of 80 trillion dollars.  How will the Gen X and millennials manage this type of wealth and will they be able to work through the options they will need to take to protect these assets and minimize tax liability.

This transfer of wealth will take decades to play out, so most families will have time to take action to develop a plan to maximize their wealth transfer possibly for generations to come.  It is critical to have discussions on how this wealth can be utilized for all the future events that will take place in your family’s lives (weddings, college education, charitable intent, future income sources, etc.).

Regardless how big your pot of gold may be, you need to develop an estate plan.  A simple Will and beneficiary forms are important, but most of us will probably need to have a Trust or multiple Trusts.  Probate is expensive and if you want your money to follow your bloodline, there are options and strategies to take to accomplish this.

There are too many situations with families that ended badly because there was a lack of communication between the family members. It is critical that heirs have open, honest discussions about what they would like from the estate so conflicts do not arise.  While these conversations may be difficult and uncomfortable, it’s better to have your wishes known so there is absolutely no misunderstanding.

By Michael Cruz

Every January we work on resolutions. Business planning often tops the list of things we want to do better. There are numerous articles about the coming year and predictions from experts.  If you did a solid planning effort – great! If not, do not wait for the next new year.

This takes some work and should be done outside of your office in a planned event. The best planning events also bring in facilitators. A facilitator is someone outside your company who can discussions focused and move you through a solid process. Many of these discussions can become contentious. And, a good facilitator will make sure that everyone contributes and get you more buy-in from your leadership team.

A solid key to good planning is working on a SWOT with your leadership team. SWOT analysis is a framework for identifying and analyzing an organization’s Strengths, Weaknesses, Opportunities and Threats. The primary goal of SWOT analysis is to increase awareness of the factors that go establishing a business strategy.

Strengths are those things that your company is good at. Often, they are things that make you stand out from your competitors.  Weaknesses are those things that we should get better at. Opportunities are those things answered by the question ‘What if?’ For example what if we were able to add a new product offering? Finally, Threats are those things that are outside our control. For Threats we want (later) to have mitigation strategies. Examples include macro economic questions of the economy slowing down, government regulations and the like.

Provided by Meghan Murray, CRPC® When you plan to retire at a certain age, you can follow a strategy that incorporates your investment moves, your health insurance and other factors. But what happens if you’re forced to retire earlier than you anticipated? Unfortunately, this situation is not that uncommon. About 40% of Americans say...

 By John Gable

As you save for retirement, you’ll want to take full advantage of the investment vehicles available to you — and one of the best is a Roth IRA. But what sets it apart from other accounts?

Three key factors distinguish the Roth IRA:

• Tax-free earnings – When you invest in a Roth IRA, your earnings can grow tax free, provided you don’t begin taking withdrawals until you’re 59½ and you’ve had your account at least five years. If you don’t meet these criteria, withdrawals of earnings will be subject to taxes and a possible 10 percent penalty. 

• No penalties on withdrawals of contributions – You fund a Roth IRA with after-tax dollars, which means you can withdraw your contributions — not the earnings — at any time for any reason, without facing taxes or penalties. So, you could use some of your Roth IRA money for non-retirement purposes, such as helping pay for a child’s college education.

• No required withdrawals at age 73 – With a traditional IRA or a 401(k), you must start taking withdrawals — called required minimum distributions, or RMDs — once you reach 73. But this rule doesn’t apply to a Roth IRA — you can keep it intact as long as you like. You may need to tap into it for some of your retirement income, but if you don’t use it all, the remainder could benefit your beneficiaries. 

A Roth IRA does share one similarity to a traditional IRA: It can be funded with virtually any type of investment, including stocks, bonds, mutual funds, certificates of deposit (CDs) and so on.

Brian M. Johnson, MBA, CLTC

It’s no secret that Long-Term Care services such as In-Home Care, Assisted Living, Memory Care and Skilled Nursing can be financially devastating. Depending on the need, these costs can easily surpass $10,000-$15,000 per month.  The high cost means that not everyone will be able to get professional care. In those cases, who will provide care and what does that mean for those care providers? Today’s care environment is both a challenge for giving and receiving care. Whether by necessity or preference – care is often provided by loved ones (informal, unlicensed) at home.  

According to “Long-Term Care in America: Americans want to age at home” and a 2020 study by AARP, 88 percent of Americans would prefer to receive ongoing living assistance as they stay at home, 70 percent of people who provide care do so out of necessity, and 21 percent of Americans are currently caregivers.  As the Baby Boom generation ages, these numbers are only going to increase.  

According to “Caregiving in the U.S., AARP, 2020,” 36 percent of caregivers report high emotional stress and more than half of caregivers report financial strain from caregiving.  This includes an end or pause to saving for their own future, taking on more debt, using personal savings and paying bills late or sometimes not paying them at all.  In a 2018 report by the Harvard Business School, it’s estimated that if a caregiver is of working age, there is a 32 percent chance he or she will have to leave the workforce all together due to their caregiving responsibilities.  If a caregiver remains employed, his or her work often suffers as they are typically tired, stressed and not able to fully concentrate on their job.

So what are our solutions?  There’s no “silver bullet” here, but there are tools that can help Americans finance their potential need for care so they’re not a burden to those they love.  

By Paul Post 

The U.S. should have no trouble weathering a mild recession if one occurs, but inflation, a national labor shortage, and skyrocketing debt coupled with high interest rates are major causes for concern.

 That’s what a leading financial analyst told more than 200 people gathered for a recent Adirondack Regional Chamber of Commerce event at the Queensbury Hotel.

 Ken Entenmann is senior vice president, chief investment officer and chief economist for Norwich, N.Y.-based NBT Wealth Management. He holds a bachelor’s degree in applied economics and business management from Cornell University, an M.B.A. from the University of Rochester’s William E. Simon Graduate School of Business Administration, and oversees more than $9 billion in assets under management and administration in trust, custody, retirement, institutional and individual accounts.

 His presentation, supported by detailed graphics, was entitled, “Should I Stay or Should I Go?: Waiting for the Imminent Recession That Has Yet to Happen.”

 “Whether we have a recession or not, I don’t think is the relevant question,” Entenmann said. “Things are slowing, but because consumer and corporate balance sheets are relatively strong, I think we’ll weather a recession. I’m concerned because I think it’s fair to say Washington right now is dysfunctional, and the likelihood that they’re going to tackle some of the bigger problems like Medicaid and Social Security is small. Therefore, I think those problems are going to linger.”

 Since 2007, national debt has more than tripled from $9 trillion to $33 trillion.

 “Then the chickens came home to roost,” Entenman said.

 While debt was growing exponentially interest rates remained low, but have since gone up 550 basis points, meaning this year’s interest payments on debt will total about $800 billion and likely reach nearly $1 trillion in the next few years, or 8 percent of the federal budget.