THE
VOL. 4 | 2016
VAULT APRG — Guiding You to Personal & Financial Wellness
SCOTT Zimmerman Which Insurance Policy is Right for You?
IN THIS ISSUE LOU ESBIN Student Loans, The Gift That Keeps On Giving
MYLES MCNAMARA Aging with a Plan
ROB SCHWARTZ The Middle Class Takes Another Hit
GOING GREEN Why Solar Is Right for You
FERMENTATION So You Want to Live in the Wine Country
INFORMATION – EDUCATION - ENTERTAINMENT FROM THE BEST PROFESSIONALS IN THE SCV
APRG APRG | 1
SANTA CLARITA
SANTA CLARITA VALLEY
SOLVING PROBLEMS!
Our APRG members are committed to finding ways to make sure your problems get solved! Many have been told how to solve a problem, and paid for advice and counsel, only to find the problem still exists, remaining unsolved. Our goals and practices, working as experts in our fields, are to ensure that the solution is correct and lasting to you and your family. That is our pledge to you! We provide experts in many diversified services catered to you as you follow your path to financial security. One advantage of this Group is the availability of interdisciplinary thinking. Team thinking! Whatever decisions you face, we believe in providing the right expert to help assess the full implications – providing the right information, resources and options to fix the problem.
2 | Volume 4, 2016
WELCOME TO ANOTHER EDITION OF THE VAULT Welcome friends, We want to thank you for subscribing and sharing The Vault magazine. The goal of every APRG member and contributor is to educate and inform each of our combined clients and friends. The enclosed articles of each magazine are carefully prepared to help enlighten you about the possibilities for you and your family in regard to planning in the areas of finance, estate, insurance, mortgage, real estate, law, college and many other important aspects of your life. The goal of the APRG members is to help guide you and your family to personal and financial wellness with a team of professionals that has your best interests in mind. With this in mind, we would like to make sure you utilize our very informative website at www.aprgi.com. Our members have worked hard to make this site one of the best financial and personal resources available. Please visit our website at www.aprgi.com to learn more and share The Vault magazine with friends, family, and co-workers to make sure they receive sound advice from experienced and accountable professionals that you can trust. Thank you again for being an important part of our APRG family.
Don Goettling Don Goettling CEO APRGI APRG | 3
WHAT’S INSIDE … FEATURE STORIES
10 14 16 26 32 34 38 40 42 44 4 | Volume 4, 2016
Understanding Your Homeowner’s Insurance Policy by Carlos Villalobos with Carlos Villalobos Insurance
5 Things Not to Do When Selling Your Home By Steve Corn with Newhall Escrow
Non-Probate Transfers of Real Property by Claudia McDowell, esq. with Poole & Shaffery, LLP Law Firm
Why There Will Not Be a Housing Bubble in 2016 By Don Goettling & Gino Fronti with Skyline Home Loans
7 Tax Reasons to Start a 401K for Your Small Business By Chris Ingram with Ingram Financial Solutions
Domestic Violence and Consequesnces in Family Law By Matthew Breddan, Esq., The Reape-Rickett Law Firm
Which Insurance Policy is Right for You? By Scott Zimmerman with Corporate Strategies & Insurance Services
Aging With A Plan By Myles McNamara, CSA
The Middle Class Takes Another Hit Rob Schwartz, Premier College Guidance
Student Loans, The Gift That Keeps On Giving By Lou Esbin with Esbin Law
12 | GET TO KNOW: CARLOS VILLALOBOS, CARLOS VILLALOBOS INSURANCE
Q & A with our members
18 | GET TO KNOW: LISA ODOM, POOLE & SHAFFERY, LLP
Q & A with our members
20 | FOODIE – NEWHALL REFINERY
Newhall Refinery
22 | FERMENTATION – WINE COUNTRY
So you want to live in Wine Country
24 | FOODIE – FRESH FISH, FRESH FARE
Salt Creek Grille
28 | MAN CAVE
J David’s
29 | IN-STYLE – WOMEN’S FASHION SECRETS REVILED
Clay & Tiffany Friedman with N-Style Salon shares why the experience of your stylist matters and why less can be more
30 | GIVE YOURSELF CREDIT – Heartland 31 | ALL MIXED UP The Social 36 | HOW SWEET IT IS Kokolita’s
46| PAINTERS TIPS
A Allbright Painting
Plumbing by Kirk
47 | HOME CARE TIPS 48 | GREEN HOME
Sunpower by Green Convergence
51 | PRIVATE MONEY LENDING IS BACK
Get to know Jack Helfrich, Civic Financial Services
APRG Contributors and Resource Guide
52 | QUICK REFERENCE GUIDE
APRG | 5
CONTRIBUTORS
YOUR APRG EXPERTS
DON GOETTLING & GINO FRONTI SKYLINE HOME LOANS The foundation upon which Don Goettling and Gino Fronti have built their Skyline Home Loans Branch in Valencia, CA is a simple one: “It’s about relationships.” This simple declaration permeates every transaction and interaction in which they participate Throughout Southern California, Don and Gino have successfully applied their 38 combined years in the industry and their unique education-based approach to the real estate and lending industry. They pride themselves on taking the time and the effort to gain the support and knowledge you need to guide you towards the best options for your particular scenarios. Their unique combination of experience, knowledge, and desire to do what is best for its clients inspires everyone to constantly improve. This demanding drive comes easily to the team because, as Goettling puts it, “We all truly love what we do.” The team enjoys speaking at conferences and sharing its knowledge and mission with professionals across the county and has enjoyed the last three years hosting “The Don and Gino Real Estate and Finance Show” airing every Thursday from 12pm-2pm on AM 1220KHTS or live at www.donandgino.com. Join Don & Gino on The National Real Estate Cafe for their daily real estate and financial market updates at www.nrecafe.com.
6 | Volume 4, 2016
CHRIS INGRAM
ROBERT SCHWARTZ
INGRAM FINANCIAL SOLUTIONS
PREMIER COLLEGE GUIDANCE
Christopher Ingram exemplifies fiduciary responsibility and, as a financial advisor for over 15 years, has successfully transitioned from an employee at a financial services firm to an independent investment advisor. Servicing more than 150 households, he has dealt with a diverse array of financial situations and has used a myriad of financial tools, solutions, and products to help his clients achieve their financial goals. Mr. Ingram spent the first five years of his financial services career with PaineWebber, now UBS, and Morgan Stanley. While working at Morgan Stanley from 1999-2003, during one of the longest bear markets in history, he was awarded the National Director’s Award in each of the three years he was eligible to receive the honor. He was able to accomplish this feat by educating his clients on the importance of having a financial plan to guide them and help them achieve their financial goals and objectives. He brings sound advice and solutions to his clients’ most difficult and important financial challenges, and he does it with the utmost honesty, integrity, loyalty, and undivided service of the client’s best interest.
Rob attended UCLA and earned a bachelor’s degree in political science and business administration in 1998. He continued his education at California State University, Northridge, where he earned a master’s degree in U.S. and military history in 2002. Rob has dedicated the past decade of his life to providing sound and timely information to schools, parents and students in the realm of college admission and college admission testing. During this time, Rob worked for The Princeton Review and its subsidiary, Eureka Review, where he served as a Territory Manager and Director of Community Outreach, respectively. In taking his counseling interests to the next level, Rob joined renowned independent college counseling firm Total College Planning and returned to school to complete a college counseling certification program at UCLA. Since completing the program in 2012, Rob has steadily engaged a larger counseling role for families all across California. He is an active member of the Western and National Associations of College Admission Counseling (WACAC & NACAC) and in 2015 moved his program of service to Premier College Guidance, a full-service college counseling and financial aid services organization. Rob is also a new faculty member of the UCLA College Counseling Certification program, teaching the next generation of college counselors how to do their jobs. For information about the organizations Rob proudly represents, please visit www.premiercollegeguide.com and/ or www.schwartzscholarshipfund.org.
STEVE CORN
JIM REAPE
LOU ESBIN
NEWHALL ESCROW
THE REAPE-RICKETT LAW FIRM
ESBIN LAW
Steve has been employed in the Real Estate Settlement (Escrow) Industry for 25 years. His journey in the Escrow Industry started after realizing his potential in the field of Telecommunications with Siemens as a District Manager. Newhall Escrow Company, a family business, was established in 1963 and has served the Real Estate Industry for over 50 years. Steve transitioned to owner in 2004 and has since grown the company to be one of the premier Escrow companies in the Santa Clarita Valley. Steve is actively involved in the community and give back by serving as President of the Santa Clarita Valley Rotary Club, First Vice Chair of the College of the Canyons Foundation Board of Directors, member of the Capital Campaign Committee for the College of the Canyons Culinary Arts Building Campaign, Board Member of Single Mothers Outreach and Board Member of Campus After Dark. Steve is a Past President of the Santa Clarita Valley Escrow Association and is currently a member of Vistage International, The Tom Hill Institute, Southland Association of Realtors (Affiliate), California Escrow Association and the Escrow Agents Fidelity Corporation.
James P. Reape, received his Juris Doctorate from Pepperdine University in 1982. After practicing law in Encino for several years, he founded James P. Reape, A Professional Corporation in 1992 and moved his practice to Valencia, California. Mr. Reape has significant trial and settlement experience. His reputation and excellent track record are widely recognized in Southern California. He is a member of the Family Law Sections of the California State Bar, the Los Angeles County Bar Association, the San Fernando Valley Bar Association, and the Santa Clarita Valley Bar Association. Mr. Reape has throughout his career taken leadership roles in each of these organizations. He serves as an Arbitrator and Mediator for Los Angeles Superior Court and Arbitrator for Los Angeles County Bar Fee Dispute Program. He has served as Chairman of the Los Angeles area for UNICEF, pro bono attorney for Domestic Violence Clinics, and he donates his time to various non-profit groups within his community. Over more than 30 years Mr. Reape’s clients have included Business Owners, professional athletes, Doctors, Lawyers, Dentists, Corporate executives and celebrities, to name a few. Mr. Reape is an expert when it comes to highly compensated individuals and business owners.
Louis J. Esbin founded his law firm and has been practicing in Valencia, California since 1993, where he provides Bankruptcy, Corporate Formation, Transactional, Merger & Acquisition, and Commercial Law services to clients throughout California and other states. Mr. Esbin currently represents a diverse group of corporate and individual clients, including small emerging businesses, corporations and individuals, as debtors and creditors, as well as clients who operate in the restaurant, construction, entertainment, retail, casino, real estate and manufacturing industries, distressed debt traders, and mortgage bankers.
APRG | 7
CONTRIBUTORS
CLAUDIA MCDOWELL & LISA ODOM
SCOTT ZIMMERMAN
CARLOS VILLALOBOS
CORPORATE STRATEGIES
CARLOS VILLALOBOS INSURANCE
POOLE & SHAFFERY
Scott has been in the Financial Services industry for 25 years. His company Corporate Strategies, Inc. specializes in Employee Benefit Planning for firms of 2 lives to 1000+. As a company they help take care of 450 company’s employee benefits plans. Scott also is a life insurance, Disability Insurance and Long Term Care Insurance specialist. He is a member of the million Dollar Roundtable which members are in the top 1% of insurance professionals in the world. Scott’s firm is a Boutique agency, who’s focus is to offer the best service possible to all of their clients. When it comes to Insurance policies, the rates are the rates are the rates. We concentrate on offering the best policies possible for our clients and have amazing staff that helps service all of our clients so they all feel how important they are to us. Corporate Strategies, has offices in both Encino, CA and Valencia, CA.
Carlos Villalobos has been providing professional and knowledgeable insurance advice since 1981 and most of that in the Santa Clarita Valley since 1989. Mr. Villalobos insurance services include but are not limited to Homeowners, Automobile, Commercial, Life and Health. Carlos has expressed that his insurance agency is here to help you and your business. This can be as simple as requesting a quote on your car, business or home or a more complicated custom package that fits all of your insurance needs. We are your one-stop shop for all things that relate to insurance and protecting you and your family. At Carlos Villalobos Insurance, we work diligently on behalf of our customers to obtain the lowest rates with the best coverage along side the best insurance advice available.
Claudia McDowell and Lisa Odom, founders of McDowell Odom, LLP, recently joined Poole & Shaffery, LLP, a full-service business law firm, as partners. Poole & Shaffery specialize in business litigation, business transactions, employment counseling, employment litigation, estate planning, probate and trust administration. Poole & Shaffery are committed to assisting individuals and businesses throughout California on a wide variety of business and corporate law matters, contract drafting, estate planning, probate and trust administration, and real estate matters. Claudia and Lisa have over thirty five years combined legal experience, including large law firm and in-house counsel practice experience. Poole & Shaffery prides itself on its extensive “big city” legal representation acquired from their many years of practice, but with smaller firm, suburban rates, without sacrificing the quality or efficiency found in larger competitors. When you engage Poole & Shaffery, LLP as your business, real estate, or estate planning law firm, you can be confident that you will get intelligent legal representation with the personal attention you are looking for in your legal team.
8 | Volume 4, 2016
THE
VAULT PRODUCERS Don Goettling Brad Burnell Steve Corn
MYLES MCNAMARA COMFORT KEEPERS IN-HOME CARE Myles is the owner of Comfort Keepers In-Home Care. He is a Certified Senior Advisor, and has been working with seniors and their families to assist aging loved ones to remain safely in their homes for 14 years. Comfort Keepers provides non-medical caregivers that assist with normal activities of Daily Living such as meal preparation, medication reminders, personal hygiene, light housekeeping, transportation, and more. With the “age wave” firmly upon us, seniors want to remain in their own homes as they age. Active in the community, Myles is Past President of the SCV Senior Center Foundation, has served as a Board Member of the Senior Center’s Committee on Aging, and regularly participates or Chairs events benefiting non profits in Santa Clarita, most recently The “Santacolorita” Fun Run for the SCV Chamber of Commerce. Myles is also the host of the radio show “Aging with Power” airing on AM 1220 KHTS, focusing on the challenges faced during the journey called aging.
Gino Fronti Louis Esbin CREATIVE DIRECTOR Hillary Broadwater PHOTOGRAPHY Ed Ouellette ADVERTISING & MARKETING Brad Burnell - ALME Inc. CONTACT 661.888.4616
@PRGGROUP
APRGSCV
APRG | 9
UNDERSTANDING YOUR
Homeowner’s Insurance POLICY
by Carlos Villalobos 10Carlos | Volume 4, 2016 with Villalobos Insurance
If you own a home, every year you face the daunting task of reviewing your homeowner’s insurance policy to make sure you’re adequately covered. Let’s have a look at what you need to know when buying or reviewing your homeowner’s insurance. Did you know you need to have insurance for a minimum of 80% of your value excluding land? That means the value of your home, everything in it, any additional buildings like a garage, and everything in it. Do you have adequate insurance? Make sure you are proactive and have the correct coverage, before something ‘bad’ happens, and you find out you are not properly covered. In fact, you should review your policy annually to make sure you still have adequate coverage. We tend to buy things and then forget about them. When you are reviewing your policy, there are a few things you should know about your home insurance policy: DECLARATION PAGE This is an annual contract that you have with your insurance company outlining your coverage and premium. ACTUAL CASH VALUE COVERAGE There seems to be some confusion between this coverage and replacement cost. If you purchase a homeowner’s policy that pays actual cash value on your content, should something happen, you will receive a payment for what the item was worth at the time of the loss, not what it costs to replace it. FULL REPLACEMENT COST COVERAGE This is best type of coverage to carry. With full replacement coverage, if your property is destroyed, the insurance company will pay the full replacement cost or rebuild your property to the state it was prior to the loss, without any depreciation. Buying this type of coverage costs you no more than 20% more a year, and covers stolen, lost, or destroyed items. It’s definitely worth carrying comprehensive homeowner’s coverage.
your insurance company agrees to pay for the damage in a covered loss even if it exceeds your policy’s limit. The insurance company is obligated to rebuild or fully replace your property without any depreciation deductable. However, with this type of coverage, insurance companies always include a clause that maximizes how much they will pay out. Generally no more than 25 to 50% above the value you have your home insured for. You want to be sure you get back to where you were prior to the loss. If you haven’t had an appraisal of your home in the last decade, it would be a good idea to do so. That way, you can make sure you have adequate insurance coverage and aren’t underinsured.
GUARANTEED REPLACEMENT COST Again, there’s a great deal of confusion between guaranteed replacement cost and full replacement cost. These coverages are not the same. The latter is related to your contents, and the guaranteed replacement is related to the buildings and structures. With guaranteed replacement cost,
RIDER A rider is an insurance addendum that is added to your existing policy to cover specific items that are not covered or not fully covered under your insurance policy. People will often buy a rider to cover their jewelry and valuable items. In order to cover an item on a rider, you need to
have either the receipt or an appraisal. A rider allows you to make sure that you will have proper coverage for a specific item(s). Your home is one of the biggest assets you own and having the adequate coverage should a loss occur is peace of mind. The bottom line is don’t just automatically renew your policy this year. Call Carlos Villalobos for a complimentary policy review to make sure you’re fully covered, and you’re not paying too much. Carlos can be reached at 661-255-8282 or through his website at www.carlosvinsurance.com
CARLOS VILLALOBOS Carlos Villalobos Insurance PHONE: 661-673-7788 www.carlosvinsurance.com APRG | 11
CARLOS VILLALOBOS
12 | Volume 4, 2016
Q+A APRG: I’m excited to be here with one of the founding members of America’s Professional Resource Group, Carlos Villalobos, owner of Carlos Villalobos Insurance. Carlos, why don’t you share what your expertise is that you offer for our Professional Resource Group.
CV: What we offer is that we ensure you are properly covered for all your insurance needs. Whether it’s your home, or auto or maybe you have that business that you think you are fully protected on. We dig in, we look to see what you have and we make suggestions on what you should have. But of course, you make the decision as we are just the facilitators.
APRG: Since you handle our insurance for us why don’t you share with us what your experience is because that is key with a lot of our members of America’s Professional Resource Group.
CV: We have over 30 years of experience in the industry.
We have seen a lot of changes from Prop. 103 to the current stuff like re-construction costs that’s going through the roof, so we take that all into consideration to make sure that you are fully protected so when you need it, it is there for you.
APRG: So, should I be looking for the best rate or the best coverage? CV: That’s misleading, the best rate.
Because you know that doesn’t mean that you are fully protected. If you are just looking at the bottom line, there is a lot that goes into it before that bottom line. So look at your coverages, look at your deductibles a lot of times we see people with low liability limits on their autos and low deductibles and yet they have four rental properties, it is a ticking time bomb. So what we try and do is shift their dollars around to make sure they are better protected.
APRG: Since you have over 30 years’ experience what advantage does that give you over someone who is fairly new?
CARLOS V I LLALOB OS CARLOS VILLALOBOS INSURANCE
want to drive a Cadillac, and make endless amounts of money?” and of course I answered the ad and the next thing you know I have been doing this for over 30 years.
APRG: Do you drive a Cadillac now? CV: Absolutely not, but back then it was important. APRG: When you are not doing insurance, share with us what you do outside of insurance for fun.
CV: One of the things I like to do is travel.
We just got back from Italy and we are going to New Zealand this year in November. My Wife and I, we have been married for 30 years and we enjoy travelling. We like drinking wine of course; it is one of my hobbies. I collect wine, and even have a wine cellar in my basement full so that’s why I’m not going to give you my address so you don’t know where to go get it.
APRG: What about your family? CV: We have two kids; my daughter is working here in Los Angeles.
My son is a Geology major and looking for work in Idaho, so good luck for you buddy!
APRG: What makes your proud of being part of America’s Professional Resource Group?
CV: The most important part is that I can reach out to any of the professionals in our group, because obviously I do not have all the answers when people ask me questions about mortgage or refinances etc. so it’s great to have these professionals to reach out to them to guide them to the answers they are looking for.
CV: We know the industry, we know the cycles.
We know Insurance companies will sometimes try and buy the market by lowering their rates to get all the customers to go to them but then in reality the next year they raise their rates. Being an independent agent, we have resources that a captive agent doesn’t, that means that we can shop around for you to make sure you have the best rate and the best premium.
APRG: What got you into the insurance industry? CV: Well, I was young and kind of silly and I read an ad in the paper, I was working at Charlie Browns restaurant at the time, and it said, “Do you
APRG | 13
5 THINGS Not To Do When Selling Your Home By Steve Corn with Newhall Escrow
14 | Volume 4, 2016
When you make the decision to sell your home, you engage an emotional part of the brain that hasn’t been triggered in a long time. Many people all of a sudden become Real Estate Experts and with this, attract all kinds of unsolicited advice from friends and family that will validate just how much of an expert you really are. The problem with this is that you now start to doubt the professionals you hired to help you sell your valuable asset and position yourself directly in the way of an oncoming train. Here are my observations of the 5 things you shouldn’t do when selling your home. 1. Don’t override your Agent’s advice when it comes to pricing the home. The major issue here is you don’t have access to the valuation tools your Agent has. Don’t listen to your neighbor, friend, friend of a friend, Uncle or Cousin that sells real estate in San Diego. They have no idea how the market changes where your home is located therefore they have no way of accurately understanding the trends of the prior month or the month ahead. The last thing you want to do is be behind the pricing curve. Once you get to this place, you’ll have missed the boat on receiving offers from viable Buyer’s approved at the top of your price range and you will end up reducing the price way beyond what you would have sold it for if you priced it right to begin with just to get it sold. 2. Don’t count on the various online real estate portals that use computer algorithms to tell you what your home is really worth. If this resource was accurate, it would also drive to your home, stick a sign in the ground, upload the data to the MLS, hold an open house, network with other Realtors to market your property and look a Realtor in the eye when presenting an offer to you. 3. Don’t ignore your Agents advice to unclutter your walls with every picture or painting you have ever acquired or shelves with every knick knack you’ve collected along the way. As much as it may pain you to do this, it is twice as hard for your Agent to give you this honest and constructive advice. People who walk thru your home want to envision what their pictures would look like on your walls and what their prized possessions could look like on the mantle or corner of the family room. Your Agent has the best sense for how your property will show the best. Listen to them. Isn’t that what you hired them for?
Take their advice to heart. Do your part. 99% of the Agents I work with have no other motive than to help you realize your goal of moving up or down with the best possible set of circumstances. If you would like a referral to one of the Agents I put in the 99% category mentioned above, give me a call and I’ll connect you.
4. Don’t make it difficult to show your property. Once you have decided to sell, you need to be committed to being a model Seller. Don’t restrict access to your property; you’ll only be hurting your odds of receiving a top dollar offer.
Your Trusted Advisor In All Things Real Estate
5. Finally the last tip, if your circumstances in life are not what you envisioned but you have decided to sell, realize that you can’t have your cake and eat it too. Get out of your own way; listen to the team you have hired.
I hope you enjoy this edition of The Vault. I am always available to answer any questions relating to these points or any real estate matters. I can be reached by phone 661 259 3450 or email: stevecorn@newhallescrow.com
STEVE CORN Newhall Escrow PHONE: 661-877-4449 www.newhallescrow.com APRG | 15
NON-PROBATE TRANSFERS OF REAL PROPERTY
by Claudia McDowell, esq. 16 Volume 4, 2016 LLP Law Firm with|Poole & Shaffery,
There is currently pending in the California legislature a bill that would create a new nonprobate property transfer instrument. This “Simple Revocable Transfer on Death (TOD) Deed” would be effective upon the death of the property owner who proposed to transfer the property upon their death to the beneficiary designated in the TOD. Generally, current California law allows real property to be transferred at death through a will, a trust, a joint tenancy with right of survivorship, or community property with right of survivorship. Simple probate proceedings in California typically take at least a year to complete and typically take more than a year, especially given the recent downsizing of the court system in California. Probate also tends to be more expensive than administering a trust which can transfer real property more quickly and less expensively. The fees charged by personal representatives and attorneys in a probate case are established by statute and are based on the gross value of the estate. Given the cost and delays in probate proceedings, the California legislature is considering enacting a new law that would allow someone to execute a deed transferring property to a beneficiary upon that owner’s death. These deeds would be revocable by owner until death and at that time, the beneficiary would be able to transfer the real property into his name without going through probate. The beneficiary would, however, still be liable for the debts on the property, such as mortgages and taxes, and would presumably have to satisfy the debts of the deceased property owner. There are concerns about the potential for fraud in having unscrupulous people take advantage of the people and inducing them to execute these types of deeds without realizing the legal ramifications of these deeds or understanding them. It may be as a result of these proposed deeds that probate proceedings increase over disputes as to whether or not there was undue influence in having the TOD executed in favor of one heir and excluding the other heirs that would typically have inherited under the laws of succession in California. It isn’t clear how this proposed law will affect
reverse mortgages, which typically require the real property secured by the reverse mortgage to be sold upon the death of the property owner. Many of the elderly rely upon reverse mortgages to help them afford to continue living in their homes during retirement. Also, the question arises as to how much liability does the beneficiary of the TOD have to accept on behalf of the deceased property owner – is it limited to debts of the real property or does the liability extend to all the debts of the deceased – credit cards, judgments, child support obligations and so on. And these issues do not even begin to address issues concerning minors (who cannot legally own property under California law), special needs trust issues, and a plethora of other issues that are usually addressed in a revocable living trust. The ramification of this proposed legislation remains to be seen if and when the final bill is approved and passed. However, at the present time, the best and most effective way to avoid probate, manage the disposition of your assets and payment of your creditors remains through a revocable living trust. Claudia J. McDowell is a partner at Poole & Shaffery, LLP, a law firm based in Santa Clarita. For an appointment, please contact (661) 414-7125 or visit www.pooleshaffery.com.
CLAUDIA MCDOWELL Poole & Shaffery, LLP PHONE: 661-347-4245 www.pooleshaffery.com
LISA ODOM 18 | Volume 4, 2016
Q+A APRG: Well, I am very pleased to be here with one of our founding members of America’s Professional Resource Group, and our Estate Planner, Lisa Odom with Poole & Shaffery LLP. So, why don’t we start with what is your expertise that you offer our group?
LO: We have significant experience in estate planning, trust administration and probate and we also have a very significant business and real estate practice which has a lot of tie in which we are very proud about. Between my mom and myself we have 35 years of combined experience so we have seen a lot of different issues in our practice in the last 5 years that we have been together and certainly in the last 35 years of working with clients, ranging from individuals to multi-billion dollar companies. It gives us a great base of knowledge.
APRG: That is important, so why don’t you share that knowledge that you have plus all the various expertise you have, and share what your advantages are versus over someone going on line thinking they are protected with their estate.
LO:
Well, there are a lot of issues that we think about in an estate plan that an on line service can’t ask you about. Like, “Is your family blended? “, “Do you have significant life insurance assets with minor children?”, “Who should be the beneficiaries of those assets?”, “Issues with respect to your business?” These issues come up all the time and an online service cannot guide you on what you should do. There are lots of issues that an online service certainly cannot answer and not even every estate planning lawyer can answer because they don’t necessarily have the expertise or know- how on how to handle these complex issues because estate planning is not just can forms, it needs one on one attention, with someone who is thinking about all the issues with your best interest in mind.
APRG:
LISA ODOM POOLE & SHAFFERY, LLP
in a way that you don’t always get to connect with your business clients and I absolutely loved it. I don’t know if it’s because I was a psychology major in college, so I don’t know if that had something to do with it, but I LOVED it. I love connecting with my families and listening to them. You know estate planning requires that you know a lot about someone’s family and I really take the time to get to know my clients so I can do the best plan for them which is something you cannot get from an online service and frankly not all lawyers will do that either, I just love my clients.
APRG:
You spoke about family, tell us a little bit more about your family and what you like to do when you are not practicing law.
LO:
I have a wonderful husband of 14 ½ years. I have an 8 year old daughter and a 6 year old son. We are lovers of travel; we just love to see the world. I have a goal of seeing 60 countries before I am 60 years old that I am working very hard at achieving. We are also avid exercisers and fitness is a huge part of our family, our children are constantly doing burpees with us and things like that. We love to spend time together and we love to do activities, I am a believer in experience and that life should be about experiences and not things.
APRG:
Well, it’s fun getting to know Lisa Odom a little bit more. Last question, what makes you proud to be part of America’s Professional Resource Group?
LO:
To be honest, the people. The other professionals of the group are so great. Even on the hardest day when you don’t want to go to that meeting and you get there, and it’s this lively group of people who know their businesses and know their stuff, it’s just been a lot of fun to getting to know everybody. Knowing that if I have a need I can call any of them and get something done right away. I had an experience like that very recently and was so grateful for another member‘s assistance.
What got you into being an Estate Planner and an Attorney? I know you are a smart girl, 3rd in your class, so how did you get into it?
APRG: It has been great getting to know Lisa Odom.
LO:
LO:
Well, my mother is a Lawyer; obviously she’s my business partner. And so, I grew up thinking that I was going to have one of two jobs, Doctor or Lawyer and it was really which one was I going to pick. Very quickly I realized I hated math and so a Lawyer was going to prevail. So I went to school knowing I was going to be a Lawyer and right out of Law School I practiced in Bankruptcy area and Real Estate and there was a lot of overlap and tie in and frankly I just learned how to draft amazing contracts. When I started working with my mom she had the estate planning experience and it’s really funny because I loved it instantly, I got to connect with my clients
Thanks for having me.
APRG | 19
FOODIE
MAIN STREET REFINED The Newhall Refinery has found itself at the epicenter of a boutique business renaissance emerging in the downtown Newhall district. It also happens to be a culinary force to be reckoned with. With Executive Chef Will at the helm, some impressive work is being done in the kitchen. His sincerity towards putting his philosophies about food and cooking into practice is nothing short of visionary in a restaurant scene where he pushes limits of convention. The menu has been allowed to take its own living course—harnessing creativity out of necessity. At the core of the menu’s philosophy is perpetual change. This change, however, is not random, but actually carefully calculated and crafted. Our natural California environment and its seasons determine the fare being served at The Refinery. It’s difficult to discern between all the ethically conscious branding and marketing in the food world these days, so Chef Will keeps it simple. Everything guests eat at The Refinery is sustainable. Period. He even has an app on his phone from the Monterey Bay Aquarium that tracks which varieties of fish are most ecologically fit to be served in restaurants. Furthermore, and perhaps most uniquely important, he is a chef that shows his face. If there is any confusion about his menu, he has been known to leave the kitchen to speak with a guest directly—helping them navigate the intricacies of the ever-evolving menu, and to perhaps introduce them 20 | Volume 4, 2016
to something new. Chef Will encourages us all to trust our local chefs: “If you’re cooking for yourself you have a much higher risk of failure than if you’re cooking for your community.” When The Newhall Refinery was still under construction, Will found himself on the crew swinging a hammer—not a cleaver. Taking on whatever work he could find while planting new roots in town, this chef without a laboratory was at the right place at the right time. For a chef with a new family looking for a home, and a town hungry for what’s on the horizon, serendipity loves company at The Newhall Refinery. These days you can find Chef Will in his lab, immersed in a world of sharpened steel and flame—the syncopated crackling of oil and lipids reacting to each other. One of chef ’s latest creations couldn’t be more appropriately symbolic—a nest. A plate is lightly dusted with Hawaiian volcanic salt, the body of the nest is composed of peach salsa and fried corn silk; a succulent quail is set atop and dressed with chipotle crema, sesame, and a single delicately placed green onion ribbon—earthy, savory, and sweet simultaneously. Be on the look-out for further refinement.
APRG | 21
Wine FERMENTATION
SO YOU WANT TO LIVE IN
COUNTRY
by Tom Wark 22 |ofVolume 4, 2016Wine Consumer Coalition Founder the American
This may not matter to you, but if you travel on a regular basis, you need to count the long drive to and from the airport as a cost of living. THE PROS 1. The Rural Beauty There’s a lot to be said for the peace of mind that comes with living every day in eyeshot of or surrounded by the beauty of the vineyards. Not only does this ordered rural beauty calm the soul, it also provides a sense of the seasons where they are often not so pronounced. The beauty of wine country changes significantly based on the seasons. 2. The Food and Restaurants Where there is a wine country, there is great food. The connection between wine and food nearly guarantees that you’ll be surrounded by very good if not great restaurants. This is one of the true draws of wine country…access to world-class cuisine as well as world-class wine. 3. You’ll Live Amongst Very Interesting People For some reason, grapegrowing and winemaking attracts some pretty interesting (and eccentric) people. Here in Napa and Sonoma, you can’t shake a stick without hitting men and women who have given up very successful careers for the lure of growing grapes and making wine. Wine Country also tends to attract artists and craftspeople. As long as you don’t get tired of seeing paintings of vineyards and chairs crafted out of wine barrels and old gnarly vines, you’ll be fine.
The lure of wine country is strong—for a number of reasons. I ought to know. I’ve lived in the center of America’s most prominent wine countries (Napa Valley and Sonoma Valley) for the past twenty years. If you have considered setting down stakes in any of the numerous wine regions around the country, you aren’t alone. Home prices in these regions are often higher than surrounding regions, reflecting the lure. That said there are pros and cons to living amongst the vines and wines that anyone thinking of taking up residence among them should know. Let me start with the cons. THE CONS 1. Real Estate in Wine Country Can Be Very Expensive The fact is, homes are more expensive in wine country. In Napa Valley and Sonoma Valley, for example, a 3-bedroom home on a quarter of an acre can easily run into the low seven figures. It’s a function of supply and demand. The rural nature of wine country keeps supply low, while the beauty and lifestyle tends to keep it high. Prices are lower in wine producing regions outside of Northern California, however. Oregon’s Willamette Valley, the Finger Lakes of New York, Paso Robles in Central California and Mendocino Country in Northern California will all provide more reasonable housing options and give you an immersive wine country lifestyle. 2. You Must Like Tourists The economies of most wine regions are largely sustained by tourists. It means your roads and bridges are going to be much more crowded on weekends. As you wait 10 back at the stoplight, just remind yourself, these tourists keep the economy humming. 3. You’ll Likely Be A Good Distance From Transportation Hubs It’s called “wine country” not “wine city”, which means you are likely to be living a pretty good distance from the closest airport of any significance.
No matter where you choose to live, you give up something and you gain something. Living in Wine Country has its costs. But in the end, what has kept me and my family here is the sheer beauty and the camaraderie of others who share a passion for the particular beauty that is “Wine Country”.
WINE COUNTRY TOWNS ACROSS THE COUNTRY TO CONSIDER Saint Helena (Napa Valley) Sonoma (Sonoma Valley) Sebastopol (Sonoma County) Paso Robles (Central California) Boonville (Anderson Valley, Mendocino County, CA) McMinnville (Willamette Valley, Oregon) Walla Walla (Washington State) Canandaigua (Finger Lakes Region, New York) Culpepper (Virginia)
FOODIE
SALTCREEK GRILLE Salt Creek Grille is a classic American grille serving fabulous food, distinctive wines—in a casual warm ambiance—offering live entertainment, and a loyal team of service professionals. Think rustic meets California casual at Salt Creek Grille in Valencia. We are proud to be a part of the community for the past 15 years. If you’re looking for relaxed, upscale dining, it’s time to experience Salt Creek Grille. The award-winning Salt Creek Grille features mesquite grilled hand-cut steaks, PRIME Steaks, fresh Pacific seafood, tangy barbeque ribs, and Zagat Guide’s acclaimed “Best Pork Chop on the Planet” as well as signature salads, hearty pasta dishes and juicy half-pound burgers. An extensive wine list perfectly complements the classic American fare. Enjoy private parties, patio dining, a Sunday Champagne Brunch, live weekend entertainment, and a cozy outdoor fireplace to enhance your dining experience. Come experience Salt Creek Grille’s hospitality and impressive offerings that are the talk of the Santa Clarita Valley! Just like all the dishes we serve at Salt Creek Grille, we start with the highest quality and freshest ingredients. Considering our Halibut is one of our most popular signature entrées, Chef Ignacio Munoz is pleased to share the recipe with Vault readers and the community alike.
24 | Volume 4, 2016
Chilean Sea Bass Ingredients 4 8zo portions Chilean Sea Bass Marinate Marinate the Sea Bass for 24 hours in 4oz Buttermilk ½ oz of Sesame Oil After marinating remove Sea Bass from Marinate Sprinkle with 1 oz Sesame Seeds Preheat oven to 350 and cook for 12-14 minutes Sauce 2oz rice wine vinegar 1 Pinch of Cayenne Pepper 1 Pinch of Ground Fresh Ginger ½ Teaspoon of Sesame Oil Garnish with chopped tomatoes, chopped Green Onions & Daikon Sprouts We serve the Sea Bass with Salt Creek Grille’s Garlic Mashed Potatoes & Sautéed Asparagus Enjoy!!!
APRG | 25
WHY THERE WILL NOT BE A
HOUSING BUBBLE IN 2016
By Don Goettling & Gino Fronti 26 VolumeHome 4, 2016 with|Skyline Loans
This year may demonstrate that real estate is the most resilient asset class available for the average family in the U.S. We currently find ourselves in the most “natural” real estate market in decades. Let’s take a look at a few things that have caused bubbles in the past and see if we are currently experiencing any of these factors in today’s market and why none of them have a significant influence in 2016: RAPID APPRECIATION (This is characterized by widespread double digit appreciation.) Although some cites in the U.S. are experiencing rapid appreciation, the country as a whole is appreciating at a 3-8% pace. Not only is this a heathy pace of appreciation; it is also in line with the 50 year historical average of 4%. This pace alone indicates slow and steady growth. Therefore, this factor alone will not lead to a real estate asset bubble. For more info on appreciation see our video @ www.donandgino/com/ appreciation OVERBUILDING (Builders have been hesitant to take risks; environmental and capital restrictions have kept builders at bay.) Recently, we have seen a moderate uptick in building nationwide; however, nothing like what we saw in the years prior to the most recent real estate meltdown. In recent years, environmental restrictions have made building not only more expensive, but have delayed projects for years. In Santa Clarita, CA there are projects that have been held up for over a decade due to environmental restrictions. Large scale financing has also been limited due to a more diverse global investment opportunity. Technology has made it easier to invest in other countries adding transparency to markets that were previously considered too risky or otherwise impossible. Globally distributed capital will restrict disproportionate real estate investment in the U.S. For more detailed numbers on home building please see our video @ www.donandgino.com/ sticksandbricks LOOSE LENDING STANDARDS (Legislation has caused one of the tightest lending environments in recent history.) I could write ten articles about how the lending landscape has changed due to regulation. We are currently still in one of the tightest lending markets the U.S. has ever seen. You MUST prove your income in order to buy a home. Now this is not a bad thing at all; in fact, I feel that we are currently writing some of the lowest risk mortgages that have ever been written. This ensures that the most likely case of default would be due to job loss, divorce, or medical issues rather than creative products that only fuel speculative, inexperienced investors and optimistic homeowners who were only purchasing based on the guarantee that prices would continue to rise. The lack of creative financing will ensure that only high quality borrowers are purchasing homes. For more information on loan products and how they can influence a market checkout our video @ www.donandgino.com/nomorenodoc INFLATION (What’s that?) The government has been more concerned with Deflationary pressures; these pressures will continue with the crashing commodities market as well as a strong dollar causing deflation in emerging markets such as Brazil and Venezuela as well as the 800lb gorilla China. Worldwide lack of inflation and possible deflation will keep out foreign investors. I know that does not sound beneficial; however, the richest investors will continue to buy assets in the U.S. to protect their wealth in real assets rather than paper money. Although we do have a fairly large amount of foreign buyers yet not enough to cause a bubble. For a detailed look at historical inflation rates please check out our video @ www. donandgino.com/inflation
CHEAP RENTS DISCOURAGE HOMEOWNERSHIP (We definitely don’t have this issue.) Rents have been increasing at alarming rates – growing at the fastest pace in decades. The lack of supply in the multifamily dwellings due to an increased demand over the last decade is causing rents to skyrocket. This will continue to encourage renters to buy rather than rent. Find out more by checking out our video @ www.donandgino.com/ landlordswin SPECULATION Investors have been leery of sinking capital into real estate for numerous reasons – lack of liquidity, tough lending standards and, most importantly, a stock market that has been on fire and delivered gains of 8+% on average. This year the stock market is off to its worst start in history; however, the lack of liquidity in real estate investments is still causing investors to stay in cash rather than dump all their money into real estate. We are still very early in the investment cycle of the stock market, and we are not anywhere near the end of this cycle; therefore, liquidity is still more important than safety. If this bear market endures, it may push people into more secure real estate assets, starting to inflate values. Find out more on our video @ www.donandgino.com/notreadytocashout In conclusion, none of the above factors are stoking the fire in the real estate market that cause any concerns of a real estate bubble in 2016. We expect continued moderate growth for 2016, and there is no fear of a bubble. If you would like to get daily updates to keep you in the know, visit our daily video blog where Don and Gino break down national reports and project market performance based on market trends that the mainstream does not follow. Check us out at the National Real Estate Café @ www.nrecafe.com. Subscribe for next quarter’s Vault magazine where we share why the market will continue to be resilient in 2016 and beyond.
DON GOETTLING & GINO FRONTI Skyline Home Loans PHONE: 661-877-9872 www.santaclaritahomeloan.com APRG | 27
MAN CAVE
Not Your Average Clothing Store
One of the nation’s top custom clothiers is proud to call Santa Clarita home. David Guenther has been in the finer men’s clothing business for over 30 years based in the SCV. J David’s Custom Clothiers has built an amazing reputation for dressing many TV and movie personalities, several professional athletes, executives nationwide as well as many of the best dressed you see every day. J David’s has their Master Tailors on their premises in the Patios at Valencia Town Center and are also happy to do outside alterations for men and women. Their customer service has been regarded as second to none and an example of this is for men who don’t like to shop, once J David’s team has your measurements on file, you literally 28 | Volume 4, 2016
can just call them on the phone and have the items you want tailored and delivered to your home or office! Their staff will put together outfits for you for any occasion. J David’s carries everything from jeans and casual shirts to dress slacks, sport coats and suits. They offer over $500,000 of in-stock inventory but their real specialty comes out when they get to make you your custom suits or shirts etc. Imagine sitting in their lounge area next to the stone fireplace (with sports on the big screen TV of course!) while looking at their gorgeous fabrics from the world’s finest mills. They will assist you in all aspects of the selection, take all your measurements and pick the perfect style details.
IN-STYLE
In utilizing the best products and techniques in the beauty industry, and setting a top standard, ‘N Style Salon brings to you services that are nothing less than exceptional. With 27 years of experience, owners Tiffany and Clay Friedman not only offer their expertise and quality workmanship to the salon, but also bring a staff with talent and professionalism to serve you. They are also a L’Oreal Serie Expert Salon—so what does that mean? L’Oreal professional developed the technology for molecular precision hair care which is a dedicated range of products developed to treat hair from the core to the surface. Those specialized technologies target areas of the hair to provide complex renewal, strength, condition, and intense shine for extraordinary results. At N-Style hair salon we offer all of your of hair care needs with specialized cutting, coloring, weaving, and glazes. Our stylists take the time to find out who you are and what you want. It’s so much more than just a haircut here. We want out clients to know they are also our friends. We care about them whether they are in one of our chairs or living their daily life.” Our business philosophy is simple and genuine, “Making the mirror smile back at people with an emphasis on quality.” We have an open and inviting atmosphere, ‘N Style Salon can help you achieve confidence with the perfect look for you and your lifestyle. Don’t forget to ask about the L’Oreal Serie Expert conditioning treatments that will leave your hair feeling silky and better than ever. Take a seat and let the professionals work with you to create the perfect look. N-Style is the perfect salon to get you ready for those special events. Whether it is a soft and upswept or tight and styled, ‘N Style Salon will create a look of magic for you. Tiffany holds herself and her staff to the highest standard and not only believes in great service, but believes in giving back to the community as well. At N-Style hair salon “We believe in being the difference. We get involved with the community by creating a community with our stylists, clients, and families.” Making clients feel like family is ‘N Style’s top priority. A welcoming and warming environment adds to the ultimate experience at ‘N Style Salon. Put yourself into the trusted hands of the staff and get the ultimate treat with great customer service in an outstanding salon. Give yourself a treat you know you deserve. ‘N Style Salon is conveniently located at 26111 Bouquet Canyon Road, Suite A3 at Cinema Drive next to the Tea Garden and open from 9 a.m. to 6 p.m. Tuesday through Saturday. For more information, please call 661-254-4841.
www.nstylesalon.com APRG | 29
GIVE YOURSELF CREDIT
We’re proud of the work we do. From payment and payroll processing to enterprise-quality solutions in security, technology and marketing, we’re committed to your company’s success. CARD PROCESSING:
PAYROLL:
Fair, transparent pricing and data security that sets the industry standard. Heartland’s innovative payment processing solutions help entrepreneurs like you succeed.
Heartland provides employee payroll services to entrepreneurs ranging in size from small to large. Whether you are looking for a turnkey payroll service for your expanding employee base or offering a 401(k) for the first time, our full-service employee payroll services and HR support for all businesses offers reliable solutions you can trust.
Heartland Secure
Heartland Secure is the most secure card processing solution in the industry, backed by a comprehensive warranty. We use three powerful technologies— EMV, end-to-end encryption and tokenization—to protect your customer’s card data as soon as the card is used, making all data completely useless to hackers.
Industry-leading breach warranty
Heartland is confident in its solutions and committed to improving card data security. Demonstrating this commitment, we offer an unprecedented breach warranty to all merchants who are Heartland Secure and employing Heartland Secure-certified devices—for as long as they’re processing with us, at no additional cost.
Single Point of Contact
No phone trees. We provide you with a relationship that goes beyond average customer support. A dedicated payroll consultant who knows you and is familiar with your business is critical to your success. Our single-point-of-contact approach gives you the confidence of easy payroll management supported by simple payroll software.
Secure and Flexible
Heartland provides processing anytime, anywhere—with instant online access to all of your payroll data and employee information. Plus, we use the latest encryption technology to ensure your business and employee data stays safe.
Competitive Pricing
PAYROLL & PROCESSING
30 | Volume 3, 2015
We value transparency. That’s why we offer all-inclusive pricing with no extra fees and no hidden costs. In addition, we lock in your rate for three years so there are no surprises down the road. For more information please call or email: Clay Friedman 818-497-6920 clay.friedman@e-hps.com
Martini
ALL MIXED UP
The
Whether it’s the tangible preparation, the jargon, or subculture, martinis are a timelessly classic way of enjoying alcohol. The sound of ice colliding with metal, frozen water molecules combining with warm libations until the tin is strained, creating chilled nectar that is delicately poured into a glass vessel. The martini shaker itself seems to be some sort of time capsule, reminding us of a vastly influential cocktail culture and its rich history in our country. Martinis are certainly their own breed—the nuance and specificity of preparation and consumption is nothing short of liturgical. The martini has evolved over time, but in many respects has withstood trends and the fickle nature of the general public. This brings us to The Social, where Santa Clarita bartenders and patrons alike hold down the martini fort. The birth of The Social was pure and simple enough: To provide the citizens of the greater Santa Clarita area with something they were missing—a quality bistro restaurant and martini lounge with professional service. Ten years later the age-old adage remains, that the proof is in the pudding— especially when it comes to food and drink. Although the food menu is classically delicious, the martini menu defines the uniquity of The Social. Walking into the old brick building, one will notice the slightly-worn-from-use martini menus standing proudly on the cocktail tables in the bar. In an era when complex mixology is all the rage, The Social stands as a testament to amusingly straightforward martinis. The plethora of martinis on the menu feature both classic and modern styles. It’s not every day that one can order a vodka martini with hand-stuffed blue cheese olives and a rendition of a piece of key lime pie on the same menu. One of the more popular martinis is essentially an interpretation of a cosmopolitan, playfully named the “Porn Star.” Here is a recipe breakdown for consideration: KEY LIME PIE: Graham-cracker-rimmed martini glass, a dash of fresh whip-cream made in-house, vanilla vodka, sweetened lime juice and lemonade. The bartenders’ martini repertoires exceed the confines of the menu, so don’t be afraid to test their knowledge. The timeless originality of the place is complimented by the chic ambiance, custom art, and décor. The Social is an alternative to crafty beers and corporate cocktail menus. This is your invitation to socialize at The Social. APRG | 31
7 TAX REASONS TO START A 401(K) FOR YOUR SMALL BUSINESS
By Chris Ingram with Ingram Financial Solutions 32 | Volume 4, 2016
While most people may understand why a 401(k) plan is beneficial for saving for retirement, few small business owners fully understand the tax advantages they provide to the business owner. Most small business owners are more concerned with the potential cost of setting up and administering a 401(k), but they fail to see how the tax advantages can potentially outweigh the costs and actually benefit them in the long run. From tax deductions, tax reductions, and tax credits, a 401(k) can be a very valuable tool to help business owners keep more of their hard earned money and prepare for their future retirement. 1. Tax savings may be greater than the cost of administering the plan for firms with less than 10 employees In 2016, the maximum contribution into a tax-deferred 401(k) plan is $18,000 ($24,000 if you are over 50). Let’s assume you have 6 employees and you contribute the maximum amount of $18,000. If you are in a 25% tax bracket, you just saved $4,500 in taxes by making the maximum contribution. With a low-cost provider, the on-going cost of a 401(k) plan with 2-10 employees is approximately $1,200. If you subtract that cost, $1,200, from the tax savings, $4,500, the net savings to you is $3,300. Not to mention the fact that you also put $18,000 away for your retirement. 2. Solo 401(k) Solo 401(k) plans are for companies with no employees, just owners and spouses. The costs of a Solo 401(k) are much lower than the costs of a traditional 401(k). The annual fee for administering a Solo 401(k) can range from $150-$300 a year. However, the tax deferred contribution to a Solo 401(k) can be as high as $53,000 ($59,000 if over 50) and you can make that contribution for both the owner and, potentially, the owner’s spouse. That would be a combined contribution of $106,000 ($118,000 if both were over 50). 3. First time buyer tax credit If this is the first 401(k) plan that you have established for your company, you can qualify for a $500 tax credit in each of the first three years of the plan. That’s $1,500 over the first three years to help offset setup and administration charges for the maintenance of your plan. As long as your company has at least one employee, besides the owner, and the employee earns less than $120,000 a year, you qualify for the tax credit. The tax credit is equal to 50% of the administration and setup charges, up to a maximum amount of $500.
4. Deductible match While providing matching contributions to your employees is optional, most small business owners will choose to do so for these four reasons: 1. Matching contributions are tax deductible for the business 2. The owner benefits from the matching contribution as well since you are also an employee and you receive the match tax-deferred 3. A “safe harbor” match ensures that all employees, including you the owner, can contribute the maximum amount to the plan 4. By offering a small match that meets the “safe harbor” requirements, the plan avoids the hassles of government discrimination testing and ensures that everyone in the plan is served well 5. Save on payroll taxes As employees make pre-tax contributions to the 401(k) plan, their overall taxable income will be reduced. Because of this, your overall employer payroll taxes may be reduced. More tax savings. More money the employer keeps. 6. Retire tax-free with a no limit Roth If you are not as concerned with receiving a tax deduction today for your 401(k) contributions, you can direct your contributions to the Roth 401(k) option and receive income during retirement that is tax-free. In addition, while the Roth IRA is often off limits to the highly compensated due to income limitations, the Roth 401(k) does not have these income limits. Therefore, anyone in your 401(k) plan can put a portion or all of their contributions into a Roth 401(k) after-tax and receive the tax-free benefits in the future.*
7. Employee loyalty and longevity Establishing a 401(k) for your employees is a great benefit to provide for them and it shows that you care about them and their future retirement. Providing a match is an even better way to show your support for them and say “thank you” for the valuable service they provide to your company. This can create employee loyalty and, potentially, a better overall work ethic amongst your employees. In addition, if you are looking for qualified employees, offering a 401(k) and a match may be the difference in why they chose to work for your company versus your competitor. It may be just the thing that lures the talent to your organization. You can also provide incentives for staying with your company long-term. For example, you can make 1 year of service an eligibility requirement for employees to participate in the plan. You can also create a vesting schedule for matching contributions which would prevent the employee from leaving the company with 100% of your matching contributions. The vesting schedule may be 5 years until they can leave with 100% of the company match. This gives them extra incentive to stick around long-term. *Tax free Distributions must be qualified and after 5 taxable years of participation, on or after the age of 59 ½, death or attributable to being disabled.
Christopher M. Ingram Financial Professional 23734 Valencia Blvd., Ste. 301 Valencia, CA 91355 (661) 255-9555 Ext. 116 CA Insurance License # 0C63177 Securities and Investment Advisory Services offered through NEXT Financial Group, Inc. Neither Next Financial Group, Inc. nor its representatives give tax or legal advice. Please consult a professional for your specific situation.
APRG | 33
DOMESTIC
Violence
AND CONSEQUENCES IN FAMILY LAW
By Matthew Breddan, Esq. with The Reape-Rickett Law Firm 34 | Volume 4, 2016
Family Law is a minefield fraught with many traps, and a little bad advice can do long term damage to individuals and families. One area that is particularly perilous and difficult to master is domestic violence. In the rough and tumble world of he said/she said, words uttered in anger, frustration or jest can be taken out of context, twisted into threats and careers can be ruined and lives destroyed. A common area of confusion is the impact of domestic violence on spousal support. California Family Code § 4320 uses several factors to determine permanent spousal support. One factor is that a victim of domestic violence should not have to provide support to the perpetrator. Historically domestic violence has been perpetrated by men against women, and as men have historically been the higher income earner this was not a major financial issue. However, men and women are now earning closer to equal wages, consequently more domestic violence cases are being sought for strategic reasons. These days the higher earning spouse is more likely to want to avoid paying spousal support and with the remedy of a Domestic Violence Restraining Order, the likelihood of having to pay spousal support becomes more remote. Thus, the long term effects of a short term DVRO can be financially catastrophic. Domestic violence involving children can have dramatic effects on the amount and type of custody an abusive parent can have. If domestic violence is perpetrated against the child in some manner, the Department of Child Protective Services can become involved and can order the nonoffending parent to seek a restraining order against the offending parent for the benefit of the child. If a child is merely present when domestic violence occurs it can be used against the offending parent in a child custody case including the determination of visitation, and eventually legal and physical custody. A history of domestic violence can play an important role in determining what is in the best interests of the child. In the tortuous calculus that is Child Support, a large factor is the
custodial time with the child. The State’s aspiration is for each parent to have a strong relationship with the child, and that children are provided for by their parents first, and public funds second. Consequently, the financial aspects of parenting time can become a contentious issue. As a parent’s custodial time increases, so does their child support payment from the other parent. Therefore, basic economics dictates the financial motivation for one parent to have as much court ordered custodial time as possible. For a victim of domestic violence, the statutory preference for their custody of the minor children means there is a financial incentive to file for and secure a DVRO. Domestic Violence is a very complex area of law as there are many competing factors in every case. The motivations that drive abuse range from substance abuse, to psychological imbalance to a family history of abuse. As a society we have become more aware of not only the full range of what is abusive but also its long term effects on children. The complexities of Domestic violence can have permanent effects on individuals and families, thus the involvement of an experienced practitioner to root out the reality and present it to a judicial officer is of paramount importance.
JIM REAPE The Reape Rickett Law Firm PHONE: 661-250-6970 www.divorcedigest.com
APRG | 35
HOW SWEET IT IS
CAKES AND MORE
If the idea of a 1950’s themed bakery specializing in cupcakes and empanadas sounds delicious to you, then meet Kokolita’s Cakes & More—a family owned and operated bakery in Newhall! Kokolita’s has thrived in the Santa Clarita Valley since 2011 known for fast, friendly customer service. They are also known for having over 80 unique cupcake flavors and 20 different types of sweet or savory Chilean empanadas. Kokolita’s is a destination cupcake shop that will please all of your senses. The walls and shelves are filled with the owners’ childhood collection of memorabilia that will dazzle your eyes. Each Kokolita’s cupcake is uniquely beautiful, all of their names are inspired by something related to a movie, actor or term from the fifties. Knowing that everything is prepared on site with real fruit and quality ingredients will make you break down and take a bite. The heartbeat behind Kokolita’s is just as important as the quality and service given there. As expressed in our mission statement - “We are committed to a high quality, unique and delicious product accompanied by a passion for community, a love of giving, and a burning desire to change the world! One Treat, One Smile, One Day at a Time.” 36 | Volume 4, 2016
To bring even more smiles, we’re proud to say that we recently launched our new “Kokolita’s Corporate” program, where all of our baked goods make outstanding marketing messages customized with your logo, and now choose our tasty empanadas. (On empanadas with logos, please allow three weeks for the initial order.) For more info about Kokolita’s Cakes & More, please visit us online at Kokolitas.com or give us a call at (661) 257-9338 or stop by the shop at 24623 Arch Street, Newhall, CA 91321.
Pumpkin Caramel Cheesecake FOR THE CRUST 2 cups ground gingersnap cookies 1 cup melted butter 1/2 cup brown sugar FILLING 28 OZ. of Philadelphia cream cheese 4 eggs 1 3/4 cups sugar 1 tbsp. vanilla extract 1 1/4 cup Libbys pumpkin 3 tbs. all purpose flour 1 tap. all spice 1 tsp. cinnamon 1/2 tsp. nutmeg 1/4 ginger 1/4 cup caramel sauce 1 TBS vanilla extract
DIRECTIONS Let your cream cheese and eggs get to room temp while you follow the rest of the recipe. 1. Stir gingersnap crumbs, 1/2 cup brown sugar, and melted butter together in a bowl until mixture resembles sand. 2. Move a rack to the center position in oven. Preheat oven to 325 degrees F 3. Spray a 10-inch springform pan with cooking spray, spread crumbs into pan, and press crumbs into a firm crust going about 1 inch up the side of the pan. Place the pan on a heavy sheet of aluminum foil and bring the foil up the sides of the pan to the rim, crumpling it close to the pan and making a barrier to prevent water from leaking into the cheesecake. Place the foil and springform pan into a large roasting pan. 4. Place cream cheese and white sugar into the work bowl of a large stand mixer fitted with paddle attachment; mix low speed until smooth, about 1 minute. Raise speed to high and mix until light and fluffy, about 3 more minutes. 5. Place pumpkin puree in a separate large mixing bowl; stir in cinnamon, ginger, nutmeg, allspice, and vanilla extract until combined. Whisk flour into pumpkin mixture, followed by eggs one at a time. Whisk cream cheese mixture into pumpkin mixture until filling is completely smooth and free of lumps. Add caramel. Pour filling into crust; use a spatula to lightly and rapidly jiggle the filling in the center of the cheesecake to help shake out any bubbles. 6. Carefully place cheesecake in roasting pan onto center rack of oven and fill roasting pan with enough very hot (almost boiling) water to reach halfway up the side of springform pan. 7. Bake about 1 hour and 45 minutes. Check temperature after 1 1/2 hours. Filling will still be slightly jiggly in the center. 8. Turn off oven heat and open oven door for a few seconds to let out most of the hot air. Use a thin knife to separate cheesecake edge from inside of pan to help prevent cracking. Close oven door almost all the way, leaving a small opening (about 1 inch) to release additional heat. Let cheesecake cool in warm oven for 1 hour to finish setting. Remove cheesecake from water bath and let cool to room temperature on a counter, 2 to 3 more hours. Cover cheesecake with aluminum foil and refrigerate overnight.
APRG | 37
By Scott Zimmerman with & Insurance Services 38 |Corporate Volume 4,Strategies 2016
ADVISOR STRATEGY: WHICH INSURANCE POLICY IS RIGHT FOR YOU? QUESTION: Recently, I have read several magazine articles about life insurance that were contradictory. One article recommended buying term insurance and investing the difference. Another praised whole life insurance as the product to buy. And a third article recommended buying a universal life product. Which is the best product: Term, Whole Life, or Universal Life? ANSWER: The question to ask is not, “Which is best?” The best question you should ask yourself is, “What are my goals and needs, and what form of insurance best serves them?” Which do you believe are more useful, ¬cats or dogs? The answer to this question, of course, depends on what your needs are. If you have mice in your barn, a cat is going to do a far better job of getting rid of them than even the most eager-to-please dog. But if you’re a duck hunter, a dog is going to be a much more useful hunting companion. The question of term insurance versus whole life versus universal life is similar. They are all different products, they serve different purposes, and they are most useful in different circumstances. There is also a fourth type of life insurance, called a blended policy or blend, which is essentially a combination of whole life and term insurance. Term insurance is life insurance at its simplest. Each year (or more often) you pay a premium that increases, as you grow older. When you die, any person, group, or organization you choose gets a sum of money, called a death benefit, from your insurance company. Whole life (also called permanent insurance) is a multi-purpose form of life insurance. As with term insurance, your beneficiary gets a death benefit when you die. But a whole life policy is also a vehicle for accumulating cash with tax advantages while you are still alive. A whole life policy usually appreciates each year, much like a savings account. If you choose, you can borrow against your whole life policy while you’re still alive or even cash it in and receive the funds that have accumulated in it. These accumulated funds are called cash values.
Traditional whole life policies have an annual premium that stays the same every year and that normally must be paid as long as you own the policy. Recently, however, some new options have been introduced, some policies now have flexible premiums, and some limit the number of premiums required to twenty or ten or even fewer - while still providing coverage, accumulation of cash values, and borrowing privileges throughout your lifetime. Every life insurance policy is a variation of either term insurance or whole life - or a combination of the two. The variations on these two basic life insurance plans are virtually endless. Universal life is one such variation: It’s essentially a form of whole life with a flexible premium and a flexible death benefit. Blends are another common variation. A typical blend includes some whole life coverage (complete with cash accumulation) and some term coverage. This type of policy offers many of the best features of each. Which type of insurance is best for you depends entirely on your personal circumstances. If you have four young children, an annual household income of $50,000, a total of $10,000 in assets, and $1,000 to spend on life insurance this year, you need as much term insurance from a reliable company as that $1,000 can buy. On the other hand, if all your children have grown up and moved away and you have $400,000 in the bank, a good whole life policy is probably far more appropriate. Cash value accumulated via a permanent policy can be used for a number of scenarios including supplementing retirement, starting or investing in a business, purchasing or improving a home, or paying for a child’s or
grand¬child’s college education. The pres¬ence of whole life in an investment portfolio offers a stable return, though generally less than 5% per year. Whole life insurance is also well suited for cases involving par¬ents or caregivers of those with special needs or disabilities - an important feature for the “sand¬wich generation,” who find themselves simultaneously saving for retirement, supporting children, and taking in aging parents. A permanent policy’s cash value could be used as an extension to another source of “emergency” funds, including that money market account. “If you get laid off, you need to have created a financial plan that helps you with¬stand those unanticipated blows that come in life,” he says. People buy adjustable-rate mortgages because they seem cheap in the beginning, which is the same reason people buy term insurance. But, whole life can actu¬ally end up being the better value in the long run, because whole life gives a cash value, which could be tapped as an alternative to the three to six-month living expenses most financial advisors tell people to keep in a money market fund. Once a good insurance agent knows a little bit about you and your finances, he or she will tell you, up front and straightforwardly, whether you will be best served by a term policy, a whole life plan, a universal life plan, a blend, or even two or more different policies.
SCOTT ZIMMERMAN Corporate Strategies & Insurance Services PHONE: 661-347-2887 www.corpstrat.com
APRG | 39
Aging
WITH A PLAN
By Myles McNamara, CSA 40 Comfort | VolumeKeepers 4, 2016 with In-Home Care
Aging is a fact of life that we will all face during our lifetimes. However, what is different about aging is that it is not something that we typically study and become proficient in. Rather, aging often creeps up on us and, once apparent, requires immediate attention. The issues of aging are also unique in that people usually only get one try. In other words, we simply do not get the opportunity to learn from our mistakes and “do it better” or “try harder” the next time. Over 20% of American’s population is over the age of 55. Today, of the over 280 million people in the United States as recorded through the 2000 Census study, over 24 million are between the ages of 55-64 and another 35 million are age 65 or older. So what does that mean to you? It means that there are a lot of people competing for limited resources – whether it is medical personnel specializing in geriatric care, in-home care resources or retirement communities, etc. As such, planning ahead is now more important than ever. PLANNING AHEAD INVOLVES: 1. Knowing what signs to look for that may indicate functional challenges (both physical and mental). 2. Understanding living arrangement alternatives to be prepared if or when a change becomes necessary. 3. Being anticipatory and preventative. 4. Ensuring necessary legal documents are executed. 5. Developing a financial or retirement plan. 6. Evaluating insurance coverage options. 7. Creating a legacy of memories while still possible.
You are not alone—seek support and counsel. Talk with friends, neighbors, co-workers, and other people you see frequently whether at your place of worship, clubs, Senior Center, etc. Ask them if they know of anyone you might talk with who is currently facing or has recently faced the challenges associated with supporting an aging loved one. Do not hesitate to ask. You will find people truly want to help and comfort you. Myles McNamara is owner of Comfort Keepers In-home Care, with bonded and insured caregivers providing assistance to seniors in the comfort of their own home. He can be reached at (661) 287-4200
MYLES MCNAMARA Comfort Keepers PHONE: 661-430-6687 www.seniorcaresantaclarita.com
APRG | 41
THE MIDDLE CLASS TAKES ANOTHER
By Robert Schwartz Premier College Guidance 42 | Volume 4, 2016
A key change in the Federal financial aid formula in the past few years has dramatically reduced the protections made available to bolster the middle class when it comes to keeping college affordable. Mandi Woodruff of Yahoo Finance recently wrote a terrific article on a key change to the U.S. system, detailing how financial aid is calculated via the Free Application for Federal Student Aid (FAFSA). Specific changes were made to the amount of money each American family can keep as part of the Asset Protection Allowance (APA). The APA, in a nutshell, represents non-retirement account assets that are subtracted from the net worth of a family in the financial aid calculation. The APA amount is dependent on a parent or parents’ age and whether they’re applying for aid jointly or as an individual. Since the 2009-10 school year, the APA for 50-year-old married parents has fallen 63%, from $55,300 to $20,200 for 2016-17, and 46% since the 2014-15 academic year. Once the relevant amount of APA is removed from the rest of the family assets, that family can be assessed up to 5.64% of that sum toward the cost of college in a given year. Or for every $10,000 the APA is lowered, it can reduce a family’s financial aid eligibility by up to $564. So
when you take the given example above, the parent’s aid eligibility has been decreased by nearly $2,000, just this year alone. If this is a family starting the college process, and their student can graduate on time (which isn’t all that easy at a public college or university), their aid eligibility will likely be decreased by nearly $8,000 over the four-year period. That is a significant change in a very short period of time. I will spare you the formula for how the government figures all of this stuff out (it will make your head spin, while you scratch it), and it honestly doesn’t matter. More important is to understand that there’s nothing we can do about the formula – but their might be something we can do about the bigger picture (which is far more important). The first thing you can do is speak with a college financial planner well in advance of the time you will be applying to college. When I say well in advance, I am not kidding around. Have this conversation in the 9th grade year…or earlier. You will need time to decide what assets can be moved around, frontload retirement accounts, etc., as well as come to an understanding of what is in the realm of probable and possible. Sometimes there’s only token things you can do to lower your Expected Family Contribution (EFC), and other times a few shrewd moves on your part can make college a lot more affordable!
Other times the issue isn’t what you can do about your financial list but what you can do about your college list. One of the things you can do is research which schools cover all or almost all of a student’s demonstrated financial need (want a great list to work with? Contact me and I will be glad to share it with you). This means you can reduce the out-of-pocket costs for your family, who may have fewer assets to put towards college. You also have the option of considering schools that are safeties for you (or your student) where those schools are incentivized to offer more money to get a better student – a student who has “stronger” college options. This doesn’t mean sacrificing a quality education – this means finding schools that offer a student everything or almost everything they want, including quality instructors, the major(s) they want to explore, the location/geography/climate they seek, but at schools that aren’t in quite as much demand by other families. Again, I encourage you to contact me if you have questions in this regard. You can dramatically reduce the cost of college and still maintain the level of education by taking a few smart steps.
ROBERT SCHWARTZ Premier College Guidance PHONE: 888-223-7737 www.premiercollegeguide.com
APRG | 43
S The Gift That Keeps On Giving
By Lou Esbin with Law4, 2016 44 |Esbin Volume
Donald and Dorothy have three children. From the time they were each born, Donald had his employer take a portion of his pretax dollars and have them deposited into an education savings accounts to provide for payment of their college tuition. Unfortunately for Donald and Dorothy they could not foresee the exponential increase in college costs, having pegged their deposits to the then published costs, plus 3% for inflation. From 1990 to 2014 the annual cost of four year private not for profit school tuition increased from $9,340 to $31,231 and for annual public four year from $1,908 to $9,139. Average published in-state tuition and fees at public four-year colleges and universities increased by 21% beyond the rate of inflation over the five years from 2004-05 to 2009-10, and by another 17% between 2009-10 and 2014-15. The 10% real increase in average published tuition and fees at private nonprofit four-year institutions from 2009-10 to 2014-15 compares to a 13% real increase over the previous five years. As a result, Donald and Dorothy were faced with the parental conundrum that often faces good intentioned parents – (1) whether to take on the debt associated with the difference between what they had saved and the real costs or (2) explain to their children that they can only accept admission to colleges and universities for which there are monies available to pay. Donald remembered that when he was in college, there was a third option that only the children accept responsibility for student loans without parental guaranties, but that option is rarely available, but that option apparently is either no longer available or very difficult to obtain. Donald and Dorothy, not wanting to be perceived as “bad” parents, accepted financial responsibility by taking on “Parents Plus” loans and guaranteeing their children’s student loans. All totaled, Donald and Dorothy are indebted in the amount of $180,000 at 5%. They were confident that their children would graduate from college with degrees that would enable them to be gainfully employed and repay the student loans, so that Donald and Dorothy would not be stressed out over the monthly payments during the waning years of their own employment. Alas, their plans were like the best laid plans of mice and men. Two children are living at home. One who took the long road, finally earning a triple degree in psychology, kinetics, and astrophysics, is a barrister at a local coffee house, making minimum wage and tips. The other with a degree in economics and social science is waiting for the right opportunity and, in the meantime, reaching ever higher levels in the hottest new
smart phone game, earning millions of points, but earning no dollars. The third child is in law school, married to his high school sweetheart, with twins on the way, but she is staying with her husband’s parents down the street in their backyard cottage, with his father footing the bill for law school. The parents plus loans and student loans have been sold to Sallie Mae. Donald and Dorothy lament having taken on the financial responsibility for which their children seem to understand or care little about the train wreck facing their parents. Donald has consulted with the Certified Bankruptcy Specialist in his community, who has explained to him the student loans are generally not dischargeable in bankruptcy, although recent legislation introduced into the House of Representatives could change the law. It was also explained that tax refunds may be taken to pay student loans. There are programs available by which a payment plan may be worked out to pay an affordable amount monthly, but that those programs are needs based, using proof of income and expenses. Donald, who had worked late the night before and gotten up early this morning, was startled out of his slumber by Dorothy who was frightened by her husband yelling out loud “I hate my life!” “Donald, what were you dreaming about?” asked Dorothy. “I dreamt we had three children who we so entitled with everything, yet they cared very little about us and our financial well being. We took on massive amounts of student loans,” said Donald. “Well, we do have twins on the way, Donald,” said Dorothy. “With that premonition,” said Dorothy, “maybe we should consult our financial manager and a parents’ college counseling, now.” “I agree,” said, Donald, “We need to see how we should plan for their future, as well
as our own, and avoid the gift that keeps giving, student loans!” “In the very least, we need to be the best at parenting, rather than friendship, instilling in our children the time value of money, setting an example for savings and budgeting and teaching them that by working hard there are rewards that are gained.” “With that being said, maybe we should take advantage of that bankruptcy consultation now, just to get information,” said Dorothy, “after all we have our own debt we are struggling with from that failed “Top of the Muffin” franchise we opened at Towne Center.” “So, true, we need to get ourselves a fresh start, before we get in any deeper. So, let’s look at the APRG directory and give a few of the professionals a call to schedule times to meet; maybe three of them together to get a whole picture,” said Donald. Louis J. Esbin, is one of 145 certified bankruptcy specialists by the California State Bar Board of Legal Specialization. He has been practicing law since 1985, and has been associated with law firms in Century City, Los Angeles, San Francisco and New York. Louis also has an undergraduate degree from the School of Business of the University at Albany, New York. He is the principal of the Law Offices of Louis J. Esbin, providing insolvency, bankruptcy, business planning and consulting services, as well as private mediation services to resolve business and financial disputes as an alternative to litigation. To set a time to meet with Louis Esbin, reach him at 661-254-5050, or esbinlaw@sbcglobal.net, and on his website www.esbinlaw.com.
LOU ESBIN Law Offices of Louis J. Esbin PHONE: 661-454-5060 www.esbinlaw.com
APRG | 45
IT’S AN INTERVIEW NOT AN ESTIMATE
When you are considering your next painting project and looking to get a couple of estimates for the work you want done, consider this: you’re hiring someone for a job! You should be thinking like a “Human Resources Manager” who is conducting an interview because really you’re hiring someone for a job, and if you know how to conduct job interviews, you’ll make really good and safe choices. A trustworthy saying in the construction industry is, “Choose the person first, then choose the type of work to be performed.” In other words, don’t allow yourself to get so excited about colors and low prices that you miss the painting contractor’s character. A good Human Resources Manager will look for certain signs while conducting the interview. Here are a few things to look for when conducting your interview:
estimates” and then says, “Trust me, I’m going to do a quality job,” it’s a fairly safe bet that he’s not very honest. Lastly, follow-through is a big key indicator of a successful hire. Did he get you the written proposal on time and as promised? If not, he may say, “I’m sorry I was a little late, but trust me, I’m going to do a really good quality job!”
TRUTHFULNESS
The best questions you can ask are open-ended questions, just like a good hiring manger would. Ask questions that can’t be answered “yes” or “no.” For example, since most painting contractors have had a job go bad or not perfectly, you might want to ask, “What are some mistakes you’ve made on past jobs, and what did you do to correct them?” or “When was your last
BODY LANGUAGE
Most people learn whom they can trust and whom they can’t by reading body language. You could put that experience to work for you as you “read” prospective contractors. Does he look you in the eye when he speaks? Is he listening to you when you speak? If you get a “no” to any of these behaviors, you might want to look deeper.
ACTIONS
Most interviews start on time and a good applicant will arrive early and wait for the appointed time to enter the interview site. The same is true for painting contractors. This type of respect for your time is important to establish up front. Another action to look for is whether or not he is taking notes. Is he measuring the surfaces? If a painting contractor doesn’t write down on his proposal the level of preparation he is going to perform, the amount of coats he is going to apply or the quality of the brand of paint he is going to include, you might want to dig a little bit more. If you question these oversights and he says, “I’m going to include all of those things the other guys wrote down on their
46 | Volume 4, 2016
warranty call and what did you do to make it right?” Open-ended questions seem to flush out interesting stories. If no useful information is forthcoming, then that could be a red flag as well. If the contractor seems to resist your questioning, it’s better to expose his thin skin now rather than discover that he is hard to work with before you’ve paid a large deposit. Lastly, when a bid comes in much lower than the professional ones, you may want to look past your good fortune of finding the cheapest guy to get the work done. You may find that he may be doing things that aren’t very truthful when it comes to running his contracting business, like certifying to the State of California that he has no employees at this time, thus lowering his price because he isn’t paying taxes or workers’ compensation insurance. This is something you can check and verify (just like checking on an interviewee’s past employment). Go to www.cslb.ca.gov and check the license number of the contractors you are inviting for the interview. You will find all kinds of good information there about how long they have been licensed, bonded, insured and any judgments against them. Just remember that you’re not inviting contractors to come out and give you an estimate. You’re inviting them to come into your home or place of business and distinguish themselves from their competition by excelling at an interview. After all, you’re hiring and you want to pick the best candidate for the job!
WHAT MOST HOMEOWNERS
Don’t Know
Now that we are finally getting rain it’s very important that we continue preventative maintenance on our area drains in our front and back yards. These drains must be maintained just like we maintain our vehicles. If we take care of them they will work for us for years to come. Approximately 90% of most homeowners don’t touch them until they need them to work and by then it’s way too late. Area drains are the perfect breeding grounds for roots and other plants that can grow inside them. Here’s the facts Area drains fill up with dirt, water, fertilizer and other debris. All it takes is one little seed from any plant in the yard and we will have roots, not to mention outside roots that are in search of water coming from nearby trees and bushes. I can’t tell you how many times I have seen trees growing in the storm drains. To prevent this from happening use a root killer down select drains and maintain once a year whether needed or not. For those of you who have not maintained, start with the root killer and let it soak into your roots and then call your plumber to properly clear these drains ASAP. The proper way to maintain these lines is to have them snaked and or hydro-jetted at least once a year to prevent major stoppages and or possible flooding. Trust me you don’t want us to be snaking the drains in the rain trying to prevent your house from flooding. Also it’s a great idea to have a back up plan i.e. … Pumps, hoses and even sandbags to divert water away from potentially flooding your home.
48 | Volume 4, 2016
WE DON’T CALL YOU AT DINNER. HERE’S WHY YOU SHOULD CALL US! SunPower by Green Convergence offers both residential and commercial solar installations to clients in Santa Clarita as well as surrounding LA County and Ventura communities. As the first SunPower Master Dealer in the world, Green Convergence is able to provide the highest-producing, longest-lasting and best-looking solar panels on the market today. SunPower panels have an unbeatable, industry-leading 25-year warranty, producing 70% more energy in their first 25 years on your roof than conventional panels. As a locally-owned business, Green Convergence leads the industry in its passion for improving their community and customer care. Cofounders, Mark Figearo and Donald “DJ” Schramm have been proud members of the Santa Clarita community for more than a decade, participating and planning local events while providing their neighbors with great job opportunities for nearly as long. Together, Mark and DJ bring a combined 30+ years of roofing and electrical experience. As licensed roofing, electrical and general contractors, the Green Convergence team is uniquely qualified to provide our clients with an exceptional solar installation.
Since opening their doors in 2008, the team has grown to over 60 hard-working and dedicated staff members with one mission— to power and empower our community with quality solar and customer service. That’s why the Green Convergence team does things so differently. Unlike their competitors, Green Convergence often replaces the roof under your solar array with a 50-year warrantied Owens Corning roof, to protect your home from leaks and keep your solar investment safe. As a SunPower Master Dealer, Green Convergence is one of the few solar installers in Southern California able to flush-mount your solar panels.
Other installers have to mount solar panels several inches above your roof, making the panels looking obtrusive. But Green Convergence knows a better way. Whether you have a tile or a shingle roof, Green Convergence can mount your SunPower panels in a low profile manner, maintaining your home’s curb appeal. No other company does more to make your switch to solar simple and worthwhile. Choose quality solar and customer care. Choose SunPower by Green Convergence. Come visit our Solar Design Center and see “The Green Convergence Difference!
APRG | 49
THE DON & GINO REAL ESTATE & FINANCE SHOW National Sales Trainers for the nationally recognized Real Estate Radio Network that has helped launch over 100 radio shows nationwide and countless radio show hosts careers. The Weekly “Don & Gino Real Estate & Finance Show” Interviewing the top real estate & financial experts to help deliver the timely truth on what’s really happening in the real estate & financial markets today. Every Saturday at 9am on AM 1220 KHTS or live on-line at www.donandgino.com also replayed daily at www.donandgino.com.
Join us for daily real estate and market updates at www.nrecafe.com to watch The National Real Estate Café with Don & Gino
Like us on facebook today!! www.fb.com/donandginoradio
Find us & our interviews on Youtube www.youtube.com/donandgino
Sponsored By:
Licensed by the Department of Corporations under the California Residential Mortgage Lending Act | Company NMLS #12072
Skyline Home Loans is not endorsed by, nor acting on behalf of or at the direction of, the U.S. Department of housing and Urban Development, Federal housing Administration, the Veterans Administration, the U.S. Department of Agriculture or the Federal Government. Copyright 2014 Skyline Home Loans Company NMLS# 12072. All rights reserved Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. Loan products are not available outside of CA.
Q+A
JACK HE LFR ICH CIVIC FINANCIAL SERVICES
Jack Helfrich is a hard money lender based in Redondo Beach, CA. In 2014, Jack helped start Civic Financial Services which has since provided over $100 million in loans to real estate investors across the country. APRG: Jack, please share with us a little about what a hard money lender is.
JH: The terms “hard money “or “private money” financing describe a type of loan that is asset backed. Hard money is typically shorter in duration and can be higher in risk depending on the collateral, borrower, or condition of the property. Our loans are strictly for investment purposes (non owner-occupied) and my clients typically purchase properties to fix and flip, or to hold for rental purposes.
APRG: How did you get into the industry? What has been your experience so far?
JH: I started my career at a conventional lender in Santa Monica.
I learned the processing side of A-paper financing for borrowers purchasing mansions in the hills of Los Angeles. As a Jr. processor, I was exposed to financial statements of some of the wealthiest people in Los Angeles and found that no matter how much money someone has, the ability to qualify for a conventional loan was practically impossible! Separately, I was always interested in real estate investment, so when the opportunity arose to help start an investment financing group (Civic Financial Services), I jumped all over it. It has been a wild ride that has included a couple 15-hour workdays and some weeks that I don’t see the sun, but I have thoroughly enjoyed the experience.
APRG: How has the industry changed, and where do you see it heading? JH: Prior to the recession, the term “hard money” was typically looked at in a negative light. The not-so-distant memory of a time where 15% interest rates and 6 points were the norm certainly established a negative
connotation among borrowers. I believe that some lenders back then took advantage of their borrowers’ financial situations to yield a high return on their loans. Fortunately, the market is in the process of changing for the better. Companies like Civic have emerged who aim to put an end to high cost lending and focus on putting our borrowers in the best possible position to make money by investing in residential real estate. I think that Civic has the chance of becoming a great standard for the industry.
APRG: Hard money seems like a niche product for a limited number of clients. Are you concerned about that at all?
JH: The idea that real estate investing is only for a select group of people is something that I quickly learned couldn’t be farther from the truth. The population of California is projected to reach 50 million people by 2050. With new residential developments virtually coming to a stand still over the last 10 years, you see housing prices soar in cities like San Francisco and Los Angeles. This high demand for quality housing leads to a great opportunity to fix and flip properties in the greater metro areas of California. I also believe that building a rental portfolio can be extremely lucrative right now, especially for properties valued under $1 million where the rental cash flow outweighs the monthly mortgage payment.
APRG: Thank you for joining us today, Jack.
RESOURCE GUIDE YOUR APRG EXPERTS
DON GOETTLING & GINO FRONTI Skyline Home Loans DON PHONE: 661-510-3995 GINO PHONE: 818-652-9379 27441 Tourney Rd. #100 Valencia Ca 91355
CHRIS INGRAM Ingram Financial Solutions OFFICE: 661-255-9555 x 16 CELL: 661-312-4456 23734 Valencia Blvd, Valencia, CA 91355
LISA ODOM & CLAUDIA MCDOWELL Poole & Shaffery OFFICE:661-290-2991 LISA CELL: 818-636-5710 25350 Magic Mountain Parkway, 2nd Floor Valencia, CA 91355
STEVE CORN Newhall Escrow OFFICE: 661-259-3450 CELL: 661-478-1662 24010 Lyons Ave Santa Clarita, CA 91321
LOU ESBIN Esbin Law OFFICE: 661-254-5050 CELL: 661-305-8995
52 | Volume 4, 2016
25129 The Old Rd, Suite 114 Stevenson Ranch, CA 913815
JIM REAPE The Reape-Rickett Law Firm OFFICE: 661-288-1000 25152 Springfield Ct, Suite 100 Valenica, CA 91355
CARLOS VILLALOBOS Carlos Villalobos Insurance OFFICE: 661-255-8282 CELL: 661-904-1830 25001 The Old Road Santa Clarita, CA 91381
SCOTT ZIMMERMAN Corporate Strategies OFFICE: 818-377-7270 CELL: 818-481-9342 16255 Ventura Blvd #320 Encino, Ca 91436
ROBERT SCHWARTZ Premier College Guidance ROB CELL:818-359-3779 RYAN CELL: 415-312-3718
MYLES MCNAMARA Comfort Keepers In-Home Care SCV OFFICE: 661-287-4200 ENCINO OFFICE: 818-776-5060 SANTA CLARITA 23900 Lyons Avenue Santa Clarita CA 91321 ENCINO 17915 Ventura Blvd. #216 Encino CA 91316
APRG | 53
RESOURCE GUIDE
YOUR APRG CONTRIBUTORS
FERMENTATION Tom Wark 707-246-6451 tom@warkcommunications.com 1135 Serendipity Way Napa, California 94558 FOODIE Salt Creek Greg Amsler 661-312-6347 gregorysa@aol.com 24415 Town Center Drive #115 Newhall Refinery 661-388-4477 24258 Main St, Santa Clarita CA 91321 GOING GREEN Sunpower | Green Convergence 661-591-4888 28490 Westinghouse Pl., 160 Santa Clarita, CA 91355 GIVE YOURSELF CREDIT Heartland Payment Systems Clay Friedman 818-497-6920 Clay.friedman@e-hps.com HOW SWEET IT IS Kokolita’s Martha Aguilara 661-257-9338 24623 Arch Street Newhall, CA 91321 info@kokolitas.com IN-STYLE N-Style salon Tiffany/Clay Friedman 661-254-4841 Nstyle.salon@att.net 26111 Bouquet Canyon Road Santa Clarita, California 91350
54 | Volume 4, 2016
THE MAN CAVE J David’s Custom Clothiers 661-287-3636 24201 Valencia Blvd #3840 Valencia, CA 91355 PLUMBING BY KIRK 661-287-3636 16654 Soledad Canyon Rd, #297 Santa Clarita CA 91387 A ALLBRIGHT PAINTING 661-294-1159 27903 Smyth Dr Valencia, CA 91355
Do you know or are you a SCV business owner who is involved in our community, have significant experience in their fields, solid reputation and long-term commitment to meeting their clients’ needs? APRG is currently looking for LOCAL business owners to share their expertise to our group.
PROFESSIONAL SERVICES CPA* FOR THE HOME Bath and Kitchen Contractor Pool Contractor Flooring Contractor Interior Design Landscape Contractor HVAC Roofers Shutter and Windows Plumbing Contractor
HEALTH AND WELLNESS Dentists Dietitians Holistic Health Practitioners Optometrists Physical Therapists Weight Loss & Control
For more information please send an email to Member@APRGI.com
Members must apply for their exclusive position in their field of expertise, in which they must go through an evaluation process based on experience, reputation, community involvement and core belief in the importance of extraordinary service.
LOOKING FOR A BETTER FINANCIAL FUTURE? APRG has created the best resource in the SCV for your personal and business success
And It’s Absolutely FREE “The information given by our own local professionals will become a tremendous resource on important issues for the prosperity of our community” -Kyle Burton Don’t miss out on our life changing information with your complimentary subscription to the Vault Magazine*; the leading source for reliable and up to date Personal Finance and Real Estate guidance from the top Local Professionals hand picked to be part of America’s Professional Resource Group. Plus we are adding more great contributors and valuable resources every month that you won’t want to miss even one month of APRGI’s “The Vault” magazine.
TO RECEIVE YOUR COMPLIMENTARY SUBSCRIPTION
*The Vault Magazine is a digital magazine delivered monthly to the email address provided | www.APRGI.com