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Insurance Industry Well Prepared to Absorb Sandy’s Losses

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OPEN finance expert Mike Periu on the insurance industry and its ability to pay out claims for Sandy. The insurance industry was not prepared for Hurricane Katrina, which caused over $75 billion in insured losses (in 2012 dollars). For Hurricane Sandy, it's a far different story. While the overall economic damage has yet to be calculated, insured losses are estimated at only $10 billion, ranking it as the 7th or 8th most costly hurricane. According to the Insurance Information Institute, the … [Read more...]

Home Price Index Shows Important Improvement

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OPEN finance expert Mike Periu on the Home Price Index and the real estate market rebound. The most important measure of home price performance in the U.S. is the S&P/Case-Shiller Home Price Index, which tracks changes in home prices on a national level and across important local markets. The index just released data for August 2012, which showed a respectable 2 percent increase in home prices across the country compared with the previous year, and a 0.9 percent increase compared to July … [Read more...]

The Hidden Costs of Hurricane Sandy Far Exceed Insured Losses

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OPEN finance expert Mike Periu on successfully rebuilding your small business and the hidden costs of hurricane sandy. The Hidden Costs of Hurricane Sandy Far Exceed Insured Losses Costs of hurricane Sandy are expected to cause between $10 and $20 billion in damages. This only addresses the explicit damage, such as broken windows, flooded houses and cars crushed by trees; it doesn't take into account the far larger opportunity costs borne by consumers, businesses and government agencies that … [Read more...]

Hurricane Sandy Threatens National Economy

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OPEN finance expert Mike Periu on Hurricane Sandy Threatens National Economy. As Hurricane Sandy weakens and moves westward, the process of providing assistance, assessing damage and cleanup begins along the northeast of the United States. The impact of the storm expands beyond its path and will have national repercussions. 15 percent of all U.S. flights over the past three days have been canceled with more expected. As many as 10 million homes will be without power for up to 10 days. Financial … [Read more...]

Tax Changes That Could Boost Retirement

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The Internal Revenue Service (IRS) recently announced several important tax changes to certain limits for tax year 2013. The Internal Revenue Service (IRS) recently announced several important changes to certain limits for tax year 2013. These changes mean that you can invest more money without having to worry about paying taxes on gains until the money is withdrawn during retirement. The annual contribution limit on 401(k) plans increases by $500 to $17,500.  The annual exclusion for gifts … [Read more...]

Are We on the Brink of a Global Recession?

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OPEN's finance expert Mike Periu on an unsettling new report on the economy Are We on the Brink of a Global Recession? With so much economic data being published every week, it can be difficult to see through the noise and identify trends that can help us determine what to expect in the near future.  Chugging through the data, there are a number of troubling signs that point to high probability of a recession starting next year.  In the U.S., the manufacturing sector has already stopped … [Read more...]

The Fiscal Cliff Explained

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A number of laws are set to expire or go into effect at the the new year. If no agreement is reached, the combined result will higher taxes. If I had to pick one wonky catchphrase that has been used and abused during this election cycle it would be "fiscal cliff."  Over 60,000 news stories have featured the “fiscal cliff” in the past month alone. Many commentators who use this term don’t have a good understanding of what it actually means or why its important.  It turns out that the fiscal … [Read more...]

Get the Inside Scoop on Tomorrow’s Economy

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Economic experts look to CFOs to gauge the economy. Use what they're saying right now to help plan your business's future. There is never a shortage of so-called experts on television, radio and the Web talking about what the economy will do next. Everyone has an opinion and seldom is a consensus reached unless it’s to state the obvious. Having a clear understanding of what our economy will do is essential for small-business owners making plans for the remainder of 2012 and 2013. If conditions … [Read more...]

Simple Math That Will Close Deals

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Show your leads what their return on investment will be and you're likely to win more clients. Math That Will Close Deals. During any sales process, there is always a point in time when you need to discuss price.  Hopefully you have previously discussed the general price range to make sure that you and your potential customer are at least within the same general range.  But at some point you need to prepare the actual price quote. It’s at this critical point that many small-business owners fail … [Read more...]

Why Business Loans Are Getting Cheaper

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The Federal Reserve releases its first quarter 2012 bank survey which helps gauge today's lending environment. Every quarter, the Federal Reserve conducts an extensive survey of lending officers at domestic banks and at the domestic branches of foreign banks operating in the U.S. The results of this survey provide key insight into what decision makers in the lending process are thinking and doing. The survey from the first quarter of 2012 has been released and the news is mixed. Lenders are … [Read more...]