November 24, 2003 Baseball Now that the World Series is over and a team with a payroll one half the size of the Yankees won, I thought this comment by George Foster was very appropriate: “The triple is the most exciting play of the game. A triple is like meeting a woman who excites you, spending the evening talking, then taking her home. It drags on and on. You’re never sure how it’s going to turn out.” George Foster, Forbes 10/27/03 p. 264 Workers Compensation Insurance Costs Strain Economy The national economy is straining under the burden of rising costs for workers compensation insurance, which pays for treatment of on-the-job injuries and lost wages. This disturbing trend is forcing businesses to lay off workers and prompting the introduction of state legislation to curb an expense that has risen 50% in the past three years. The factors that have been singled out for the skyrocketing costs include: escalating legal and medical expenditures and a significant amount of fraud. Businesses are in a bind with workers compensation insurance because the coverage is mandated for every employee. The only way businesses can reduce the current outlays associated with the coverage is to reduce their payroll, close their doors, or move to another state where insurance costs have not risen as much. Insurers Cut Back on Home Activities Reacting to huge home-related underwriting losses, some insurers are restricting coverage on activities that pose a potential risk around the home. High on the target list are trampolines and swimming pools. Even family pets, whose bite could result in a claim, are coming under scrutiny. Insurers have lost $11,000,000,000 through homeowners policies during the past two years. To trim those losses, the industry is becoming more discriminate about what it will cover. Some deny coverage for homes with targeted items, while others demand modifications which will limit risk. For further details talk to your property and casualty insurance agent. Six Month Filing Extensions are coming in the next year or so. The IRS wants to eliminate the need for the Form to request an additional two months after the automatic four month extension. Kiplinger Tax Letter 9/12/03 Continuing Education During 2003 Howard Lisch has attended the following classes as part of our policy of continuing education: Single Member 401K - Pioneer Uni-K PIRAC - Private IRA Corporation Advanced issues for IRC 1031 Tax Deferred Exchanges Payroll Issues and The Law, Avoiding Common Mistakes and Legal Liability Supplemental Needs Trust, Part 36 Changes and Hot Topics in Article 81 Guardianship Understanding ERISA IRA Distribution Planning Alternative Investments Qualified Plan Distribution Strategies Charitable Giving Crossing State & National Borders: Electronic Commerce Shrinking Cash Flow Advanced Education Planning Strategies Value Pricings & Relationship Building Technology Futures 2003 The Fully Insured Plan 412(i) What's New for your Business in 2003 Retirement Plan Comparisons Planning for Long Term Care Insurance and Health Insurance for the Elderly The Impact of Tax Law Changes on Business Retirement Plans Lost Opportunity Cost IRA Planning Techniques Non-Qualified Deferred Compensation Making sense of change: How to respond to your Split Dollar Clients, A Review of the Final Regulations If you believe any of these topics may be relevant to your situation, please call us.If you have any questions about the foregoing or any other financial matters, please call us. If you want to read more, visit the AOHL Newsletter Archives at www.lisch.com Remember, We’re Here For You!!