Category: Business

The Tax Collector’s Office is often referred to as the DMV (Department of Motor Vehicles), but while it provides DMV services it is, in fact, not the DMV. The Tax Collector is an independent, constitutional officer elected by the citizens of the county in which they serve.

While Tax Collectors across the state serve as agents for the Department of Highway Safety and Motor Vehicles, the tax collector also provides services on behalf of our other state agencies and local taxing authorities.

The elected county office of Tax Collector in Florida was established in the 1885 State Constitution on the idea that property taxes were best collected and distributed at a local level. By being an elected office, it was determined the Tax Collector would be more responsible to the needs of the community from which he/she was elected.

Since that time, lawmakers have added to the duties of tax collectors through legislation and tax collectors themselves have lobbied to provide additional state services at the local level to better serve citizens.

In Bay County, Tax Collector Chuck Perdue’s Office currently provides motor vehicle and driver license services for the Florida Department of Highway Safety and Motor Vehicles, hunting and fishing license services for the Florida Fish and Wildlife Conservation Commission, birth certificate issuance for the Florida Department of Health, as well as, concealed weapon license application intake and renewal processing for the Florida Department of Agriculture and Consumer Services.

Each county tax collector is responsible for managing their own budget, but the Florida Department of Revenue provides review and approval of the budget. The Tax Collector’s budget is funded by the fees and commissions of the services they provide as outlined in the Florida Constitution. Additionally, an independent firm audits the office each year to ensure proper financial management.

What does this mean to Bay County citizens? It means fiscal responsibility and customer service matter to Bay County Tax Collector Chuck Perdue. As an elected official, Mr. Perdue listens to the feedback from customers and puts in place new processes and technology in his office to better serve Bay County. It also means he is bound to follow the processes and procedures of the state agencies he serves to ensure the proper documentation and requirements are followed in carrying out transactions.

While the standards and guidelines for processing transactions cannot be waived by Mr. Perdue, the opportunity to hear directly from customers regarding matters does put him in a unique position to work for change on their behalf. Tax collectors are in a position to make lawmakers aware of how legislation impacts local citizens and some of the unintended consequences resulting from current laws.

Mr. Perdue currently serves as an officer of the Florida Tax Collector’s Association, which provides tax collectors across Florida with a collective voice to meet with state agency leadership to discuss the challenges they see in their offices and the frustrations of customers. Additionally, it allows them the opportunity to meet with legislators from all over the state to lobby for change in the areas impacting the services they provide.

The Florida Tax Collector’s Association is working to make doing business more convenient for citizens. Currently, the Tax Collector’s Association is supporting legislation to move the 1.5 million mobile home registration renewal dates to the birth date of the owner just as was done last year with heavy trucks. They are also piloting a program for mobile DL/ID card services for home bound and nursing home residents and implementing the ability to clear toll stops in tax collector offices.

For more information regarding the Bay County Tax Collector’s Office and services provided, please visit BayTaxCollector.com.

By Jeremy Neel

Dear APEX,
I am a local property manager, and I have dealt with several different restoration companies in my career. I am curious to know why some companies only install drying equipment, and others remove damaged material from the properties before installing equipment? Can you help me understand the process for future reference? ~ James A.

Dear James,
We appreciate your question, and we will do our best to make the most sense out of an issue that has several determining factors. Let us start by first pointing out that every damage situation (loss) has many different variables that determine the correct approach. For professionally trained restoration companies, the first variable that needs to be assessed is the type of water that has affected the property. In the restoration industry water is divided into three separate categories: Category 1, Category 2, and Category 3. By IICRC (Institute of Inspection Cleaning and Restoration Certification) S-500 standards, the following is the breakdown of the three categories:

Category 1: This is liquid from a clean and sanitary source, such as faucets, toilet tanks, drinking fountains, etc. However, Category 1 can quickly degrade (within 24-48 hours) into Category 2.

Category 2: This category of liquid used to be called “grey water,” and is described as having a level of contaminates that may cause illness or discomfort if ingested. Sources include dishwasher or washing machine overflows, flush from sink drains, and toilet bowl overflow containing no feces.

(Please note that Category 1 water, when traveling through building materials is automatically elevated to a Category 2 level due to potential contaminants within the building materials themselves.)

Category 3: This is the worst classification and is grossly unsanitary. It could cause severe illness or death if ingested. It used to be called “”black water, and sources include sewer backup, flooding from rivers or streams, toilet overflow with feces, and stagnant liquid that has begun to support bacterial growth.

It is important for you to know that a thorough restoration contractor will do on site testing to determine which category of water is affecting the individual loss. Once the determination has been made, it is time to move forward in saving the materials that can be saved and disposing of those that could potentially cause harm. Should Category 3 be determined, it is recommended that all affected materials be discarded. In a Category 2 scenario, it is recommended for drywall, carpet pad, and any wooden materials made of pressed board be removed and discarded. If Category 1 is determined, it is to everyone’s benefit to minimize further damage to the property by attempting to dry wet materials without removal.

The second variable to assess is the construction materials, components, and methods of installation. While some materials may be resilient, such as tile flooring, the method of installation could give a false sense of security with regard to long term damage and potential health risks. For example, if tile is installed directly on top of concrete, the potential problems are minimal. If the same tile is installed directly on top of a wooden subfloor, the risk becomes elevated as water can become trapped between the layers of building materials and can create the perfect breeding ground for mold growth and structural issues such as rot.

As you can see it is very helpful to have a basic understanding of construction methods when it comes to restoring a water damaged property. Of course, there are numerous variables that have to be considered on every loss simply because every loss is different. We hope we’ve given you some insight on how professional restoration contractors make decisions when it comes to water damaged properties.

Feel free to contact us for further information. If you have any questions regarding any property damage related to water, fire, mold, or storms and would like us to answer it in our monthly column, please call us anytime at (877) 307-3088.

By Maurice Stouse, Financial Advisor and Branch Manager

We often get the question or the comment regarding a market correction or worse, a bear market. We also take note that, historically, many corrections have been made in September and October. Why that is so is the subject of speculation. Most folks are focused on now vs. the past of course and with the market having rallied for over a year now and multiples at historical highs, people are beginning to wonder.

While market corrections can happen at any time, we would even suggest that by the end of the day this article is being written, a correction could take place. Investors, understandably so, want to know if a market selloff is about to happen. The problem, at least in our experience, is that they don’t ring a bell at the top, signaling people to get out and they don’t ring a bell at the bottom signaling for people to get back in.

We feel investors should pay close attention to key drivers in asset valuations:

First, The Federal Reserve balance sheet. It has more than doubled in the past year and a half and is up tenfold since 2008. The current amount is $8.357 trillion as of September 8th (see federalreserve.gov/monetarypolicy).

The Fed’s balance sheet is made up on the asset side of Treasuries and mortgage type securities that it has purchased on the open market. The more The Fed buys, the more money or monetary stimulus, is released into the U.S. financial system. Where does The Fed get the funds for those purchases? Typically, it is through creating or “printing” more money. There are several factors that drive asset prices, and we feel that in this environment, the key driver is the growth of the balance sheet. So, as investors’ worry grows over market corrections, keeping an eye on the balance sheet is a good indication of the amount of liquidity that exists in the financial system. The greater the liquidity, the greater the support for asset prices. If liquidity is withdrawn (through tapering as an example) that, in theory, means less stimulus and potentially less liquidity. That might mean asset prices could become more volatile.

Second is the yields on the benchmark U.S. Treasury as another significant factor that drives markets and or adds to or lessens volatility. We suggest that our clients pay most attention to the yield on the 10-year U.S. Treasury bond. Why? That is what most professional investors and market followers focus on. The yield right now is approximately 1.35%. Note the yield on the S&P 500 is very close to that. So, if the yield climbs significantly, we think (from what we have researched and concluded) to approximately double the yield of the S&P 500, that in and of itself would be a trigger or drag on stock prices.

Third, we continue to be wary of bonds and the implications yields can have on them and potentially the stock market. Should clients desire to invest in that area, we express caution as we feel that climbing yields (because of inflation, an increase in the supply of Treasuries for sale as examples) would continue to put pressure on investment grade bond prices. Inflation’s most recent reading is 5.3% year over year (it was 5.4% when reported last month). We would suggest investors consider high yield bonds or floating rate bonds in an economic environment such as this. While those carry greater quality risk, they might fare better than their investment grade counterparts.

Finally, and always, at The First Wealth Management, we encourage our clients to 1) concentrate to accumulate and then diversify to preserve 2) to monitor and make changes to their strategies over time vs overnight 3) consider the impacts that taxes can have on their savings and investments.

The First Wealth Management is located at First Florida Bank, a division of the First, A National Banking Association, 2000 98 Palms Blvd, Destin, FL 32541. Branch offices are located in Niceville, Mary Esther, Miramar Beach, Freeport and Panama City. Phone 850.654.8124.

Raymond James advisors do not offer tax advice. Please see your tax professionals. Email: Maurice.stouse@raymondjames.com. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC, and are not insured by bank insurance, the FDIC, or any other government agency, are not deposits or obligations of the bank, are not guaranteed by the bank, and are subject to risks, including the possible loss of principal. Investment Advisory Services are offered through Raymond James Financial Services Advisors, Inc.

The First Wealth Management First Florida Bank, and The First, A National Banking Association are not registered broker/dealers and are independent of Raymond James Financial Services.

Views expressed are the current opinion of the author, not necessarily those of RJFS or Raymond James, and are subject to change without notice. Information provided is general in nature and is not a complete statement of all information necessary for making an investment decision and is not a recommendation or a solicitation to buy or sell any security. Past performance is not indicative of future results.

Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Investors should consult their investment professional prior to making an investment decision.

Investing in oil involves special risks, including the potential adverse effects of state and federal regulation and may not be suitable for all investors.

Treasury Inflation Protection Securities, or TIPS, adjust the invested principal base by the CPI-U at a semiannual rate. Rate of inflation is based on the CPI-U, which has a three-month lag. Investing within specific sectors, or in small and mid-size companies, involves unique, additional risks. Those risks include limited diversification, regulatory risks, limited liquidity, and lack of operating history.

There is an inverse relationship between interest rate movements and fixed income prices. Generally, when interest rates rise, fixed income prices fall and when interest rates fall, fixed income prices rise.

Investors should carefully consider the investment objectives, risks, charges, and expenses of mutual funds before investing. The prospectus and summary prospectus contain this and other information about mutual funds. The prospectus and summary prospectus are available from your financial advisor and should be read carefully before investing.

By Claire Sherman

A simple flip of the coin in Pensacola, Florida, landed Charles W. Lamar Sr. the opportunity of a lifetime. In 1908, when Mr. Lamar and J.M. Coe decided to dissolve their business partnership, a coin toss was used to divide their assets which included the Pensacola Opera House and the Pensacola Advertising Company, a small poster company created to promote the Opera House. Mr. Lamar lost the toss and was left with the less-lucrative poster company, which was later renamed Lamar Outdoor Advertising Company. Over the course of the next century Mr. Lamar and his descendants built Lamar Advertising from a small sign company on the Gulf Coast into one of the largest providers of Out-of-Home advertising in the nation. Lamar Advertising (Nasdaq: LAMR) with over 351,000 displays across the United States and Canada, offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats helping both local businesses and national brands reach broad audiences every day.

Locally Lamar has been operating on and off in the Panama City market since the 1930s leasing sign sites, constructing billboard displays, and selling space to advertisers. In addition to its traditional Out-of-Home inventory, Lamar also offers its customers the largest network of digital billboards in the United States.

After the devastation of Hurricane Michael, Lamar had the unique opportunity to rebuild the Bay County market, with the vision to build a prototype “market of the future” featuring state-of-the-art digital displays and modern advertising opportunities. Lamar Advertising of Panama City now offers 54 digital billboards and more than 500 premium static billboards in Bay County and the eight surrounding counties.

One of the greatest advantages offered by billboards is the ability to have a constant presence 24 hours a day / 365 days a year. Billboards can’t be turned off, tuned out, ad blocked, or thrown away. Advertising messages work for you all day, every day to reach consumers. With over 550 billboard locations in the Panama City market, Lamar can find the board or grouping of boards to hit any target audience.

Lamar Advertising of Panama City has been operating under the leadership of General Manager Claire Sherman for the past 14 years. Claire started with Lamar in 1997 as an Account Executive, before being promoted to Sales Manager and then VP / General Manager. She is extremely active in the community having served on numerous boards, in multiple leadership positions, and on the Board of both Chambers. Moreover she is proud of her Lamar family and co-workers. Building strong relationships, providing excellent customer service and delivering value to the customer is what Claire and her team aim to provide every day. “We live by the Golden Rule, and we operate with honesty and integrity in every aspect of our business.”

Do you want to break through the clutter and magnify your voice to your consumers? Do you have commercially zoned property and want an additional revenue source? If you answered yes to either of these questions, give us a call: (850) 763-6617 or visit www.lamar.com/PanamaCity.

By Brendan Smith

Dancing Goats® Coffee began in 1988, serving locally-roasted Batdorf & Bronson® coffee (which was established two years earlier, in 1986). A few years later, the two beloved institutions merged, paving the way for decades of innovation in the quest to create great coffee.

We are a family-owned, independent business built on doing things the right way. Our long-term relationships with coffee producers around the world provide our wholesale accounts and retail locations with the very best specialty-grade coffee. We offer a wide variety of single origin coffees alongside our very popular blends, developed by a team of highly skilled roasters. Our namesake and most popular blend, Dancing Goats®, refers to the legend of how coffee was discovered…

In the remote highlands of ninth century Abyssinia, now Ethiopia, a lone goatherd named Kaldi noticed his goats were full of energy, dancing, and prancing, after eating a small red fruit from a nearby shrub. Not wishing to be left out of the fun, he tried the cherries, and soon he was dancing too. According to legend, Kaldi and his goats had discovered coffee.

Dancing Goats® Blend is our bestselling coffee due to its versatility and accessibility. It is favored among baristas as a well-rounded espresso; it makes for an exceptional espresso shot and is the star component in any milk-based espresso beverage or Americano. As a drip coffee, Dancing Goats® is a deeply satisfying blend that can be enjoyed any time of the day.

From the beginning, we have been committed to producing outstanding coffee, striving to do more than our competitors. We want to do more for our farmers, more for our customers, and more for the environment. When running the day-to-day business of our company, we’ve used the same attention to detail that we put into perfecting each of our coffees. Dancing Goats® Coffee (under the Batdorf & Bronson® umbrella) was the first 100% green-powered coffee roaster in the United States. We know that as we grow our company, we will continue to have even more opportunities to exemplify what a business could do when it focuses on community and sustainability.

Since then, we have expanded as a wholesale coffee roaster with cafés worldwide and a steadily-growing online business. Our wholesale customers can count on professional trainers to educate their staff and have access to all the supplies a café will need to be successful. We are the only major coffee roaster with a dedicated training department serving Bay and surrounding counties. Our high-quality equipment, skilled specialists, and friendly demeanor provide our wholesale accounts with everything they need to become exceptional baristas. We offer our wholesale clientele the same information, skill, and encouragement that we give our own retail personnel. That means well-rounded training, high-quality equipment, and supplies. We can’t wait for you to be part of the way we do coffee!

By Jeremy Neel

Have you ever had an insurance claim denied? There are several reasons a claim can be denied.

1. The incident was not covered in your insurance policy. It is extremely important to read an insurance policy, and understand which perils may be covered and which ones are not before filing a claim. For example, your neighborhood floods, and you have not been covered by flood insurance, then your claim would be denied.
2. The premiums have not been paid in a timely manner. If your insurance company has not already canceled your policy, they have the right to deny your claim for late payments of your premiums.
3. Acts of negligence of the homeowner. For instance, you have a hot water leak, and you attempt to fix the problem on your own instead of hiring a plumber, this would be considered negligence. Your claim could be denied because of improper maintenance involving the hot water heater.
4. You may not have enough coverage on your home. Homes can be insured for either Replacement Cost or Actual Cash Value. Replacement cost would be the price to restore the home to comparable conditions as when the home was first purchased. Actual Cash Value is the cost of replacing the home back to current conditions minus depreciation, or the market value of your home. Once again, it is extremely important to make sure you have enough coverage on your home should you ever need to file a claim due to water, fire, mold, or other perils that may effect your home.
5. Not filing a claim in a timely manner. Waiting too long to file a claim could result in the denial of your claim. It would be advantageous to discuss with your insurance company the time frame in which to file a claim, just in case the occasion should arise.
6. Filing a claim under false pretenses. Once a claim is filed, an insurance adjuster will come to your home to prove it is worthwhile for the insurance company’s payment for necessary repairs. If the adjuster finds you have not been truthful with your claim, or the damage is not as extensive as he/she can prove, your claim may be denied. Taking pictures of your property, once your policy is written, and after damage has occurred, would be helpful to your adjuster.

Here are a few ways to minimize denial of a claim:
1. Get to know your homeowner’s insurance policy, front to back. Understanding what perils are covered and which ones are not will play an important role when unexpected incidents occur.
2. Increase your coverage when necessary. For instance, should you build an addition to your home, or remodel your kitchen, you will need to increase your coverage as your value will increase.
3. Pictures, pictures, pictures. Taking inventory and pictures of your belongings and the structure of your home can benefit the adjuster, or, if necessary, prove your case should your adjuster deny your claim.
4. Let your insurance agent know of any life changes, such as marriage, or addition of residents into your home. In this case, the added possessions should be covered in your insurance policy.
5. Review your policy at least once per year. Should you have any questions regarding your homeowner’s insurance policy, your insurance agent would be glad to explain your coverage. It is best to have the questions answered before an event occurs caused by an emergency. In this manner, you are properly prepared to handle the stress that comes with the unexpected.

Apex is the people’s choice when it comes to water, fire, wind or mold damage. Should you have an emergency water loss or mitigation needs, please contact Apex at (850) 660-6900.

As COVID-19 cases continue to rise in our area we recognize the need for many to take extra precautions to protect themselves and their loved ones. We wanted to highlight the many services we offer which can be accomplished over the phone, online or by mail.
If you visit our website BayTaxCollector.com, you’ll see a button titled Online Services. This page outlines the many services which can be accomplished online and provides direct links to process the transaction and/or the forms necessary to complete the transaction by mail or drop-box.

Among the Online Services Highlighted are:
• Property Tax
• Pay/ Print Receipt
• View Payment History
• Enroll in the Installment Plan
• Enroll in E-Billing
• Update your Mailing Address
• Vehicle/Vessel
• Renew Registration (Same day pick up available if renewing before 3 p.m. on a business day, no wait.)
• Order Paper Title
• Update Address
• Access Title/Registration Packet to register vehicle via mail/drop box.
• Driver License/ID Card Services
• Renew Card
• Card Reprint (Lost/Stolen)
• Address Change/Update
• Driver License Check
• Update Medical Certification or Self-Certify (CDL Drivers)
• Hunting/Fishing License
• Purchase/ Renew/ Upgrade a License
• Concealed Weapon Permits
• Renew permit
• Apply for permit

While we are still unable to provide testing services and original issuance driver license/ID card services remotely, we do have alternative methods to process many services for customers unable to physically make a visit to our office. If there is something you’d like to process remotely, but aren’t sure about how to go about it, please call us (850) 248-8501 or email us at Support@BayTaxCollector.com so we can determine how to best assist you.
Additionally, you can find a Chat Bot on the website which can answer a variety of questions 24/7.

Expanding the Team
Like so many businesses, we too are looking for individuals to join our work family. If you’re new to the community and looking for a career in customer service, we encourage you to check us out. We’re looking for individuals who love working with people and problem solving. We can certainly promise that no day in our office will look the same as another. The work is challenging and the learning curve is a bit intense, but the reward of helping others and serving our community is rewarding. We offer competitive pay, a great team to provide support as you learn and grow, a set weekly schedule and weekends and holidays off. If you’re interested in learning more about current opportunities, please visit www.baytaxcollector.com/join-our-team.

Express Lane Service
If you need to renew a tag, we offer Express Lane pickup in all four offices. How can you access Express Lane pickup? Simply renew online at BayTaxCollector.com before 3 p.m. on a business day. The online system allows you to select same day pickup, choose your pick up location and even designate someone else to pick up your renewal for you. You’ll receive an email when your renewal is ready for pick up and you can head to our office and pick up your renewal at the Information Desk without having to join a queue or wait.

For more information regarding services provided, please visit BayTaxCollector.com. For the latest information and updates follow them on social media- Facebook, Twitter and Instagram.

By Sean Mackenny

Originally from North Carolina, Tina Nastasi fell in love with the Emerald Coast and has made it her home for more than three decades. Over the years, she has become an established real estate investor and entrepreneur, drawing from her extensive experience with the launch of Emerald Beach Rentals with local realtor, Roger Rietsma.

Like Tina, co-founder and long-time friend Roger fell in love with the natural beauty of the area and made it his home. He has worked in Panama City Beach real estate for the past 20 years and has extensive experience within the hospitality sector, including managing several large-scale hotel chains. Roger is a top-selling agent with Allison James Estates and Homes. Tina and Roger co-founded Emerald Beach Rentals with the desire to build long-lasting relationships with property owners and vacation-goers alike.

Emerald Beach Rentals makes local waves providing long and short-term rentals in Bay County and Walton County, offering a wide range of stunning properties to fit all budgets and needs. Following its launch last year, it has grossed almost half a million dollars and has ambitious plans for expansion. Alongside this business, Tina is also the founder of Bay Professional Cleaning. It comes as no surprise that Emerald Beach Rentals have the cleanest units in Panama City Beach!

With customer service their top priority, they went all-in with top-of-the-line software that enables them to advertise their properties on a multitude of sites simultaneously to maximize income for their clients. Their strong ties to the community are an incredible asset, as together they know the best cleaners, maintenance, and repairmen in the area. Providing great service to the vacationers, it’s easy to see why a 5-star management company sprouted its home-grown roots on the Emerald Coast.

Tina knows how important it is to feel at home wherever you are. As a military spouse, she is used to moving around the country and is keen to deliver great experiences for her customers. Tina says, “Roger and I have worked day and night to make Emerald Beach Rentals the best experience our guests can have. We want them to come back to Panama City Beach over and over again and know we will do our absolute best to make their stay an experience they won’t forget. We are in this business to make a difference in the lives of our guests, owners and community.”

You can find all about Emerald Beach Rentals on their website at www.emeraldbeach.rentals as well as Vrbo, AirBnB and Booking.com. For any enquiries about property management or rentals please email info@emeraldbeach.rentals.

PCB Chamber Valued Member Spotlight

For years Jimy Thorpe had felt the urge to give back. A veteran, Jimy had served as a young man in the U.S. Army for eight years and had always held the highest regard for the men and women who serve our country and keep us safe. This group also includes first responders – the men and women who keep our communities safe. So how would he give back? In 2014, he created the tagline “Vets Helping Vets” – later elevated to “Vets Helping Vets & First Responders” – and decided to start giving what he had to give: HVAC units.
Jimy owns A Superior Air Conditioning Company, a local business he launched in 2003.

In the beginning, Jimy and his team decided to give away eight units per year. Vets and first responders were encouraged to apply online at ASuperiorAC.com; the giveaway was open to all who have served in the Army, Navy, Air Force, Marines, Coast Guard, and all first responders including EMT/Medics, Police, Sheriffs and Fire Fighters. American Legion Post 392 in Panama City met and voted on all submissions each quarter, selecting one veteran in need and one first responder in need to be awarded the units.

In 2015 the giveaway began taking the form of a quarterly appreciation lunch at Harley-Davidson of Panama City Beach… local musician Neal James opened the lunches with the National Anthem and played background music while Texas Roadhouse catered. The first event hosted around 40 guests and several local businesses co-sponsored. The next lunch brought in a few more guests and sponsors, and the Vet Center and other veteran-related organizations joined in. As word continued to spread, the guest list grew. By Fall 2017 the event moved to Texas Roadhouse and it’s been there ever since, now maxing out the restaurant at 380+ guests.

But Jimy still wanted to reach and help more veterans and first responders. In November 2019 Pastor Dave of Faith Assembly Church in Miramar Beach (affectionately known as “The Rock & Roll Church”) invited Jimy to launch a quarterly appreciation lunch there, thus reaching vets and first responders in the Walton/Okaloosa area. The appreciation lunch has taken place there ever since, slowly growing in attendance and giving away one HVAC unit per quarter, for a total of 12 HVAC units given away per year.

“I feel that giving back to veterans and first responders is like taking the time to help my father,” says Jimy, whose father served in the U.S. Marines. “It’s something that comes second nature; it’s instinctive and something that’s driven in me.”

Please help Jimy and his team spread the word to the Vets and First Responders that you know. The next two Veterans & First Responders Appreciation Lunches take place in October. The Walton-Okaloosa Lunch takes place on Tuesday, October 12 from 11:30 a.m. to 1 p.m. at Faith Assembly Christian Church (AKA The Rock & Roll Church), 306 South Geronimo Street, Miramar Beach, FL 32550. The Bay County Lunch happens on Tuesday, October 19 at Texas Roadhouse in Pier Park North. Vets and First Responders may register to win an HVAC unit at ASuperiorAC.com.

By Maurice Stouse, Branch Manager and Financial Advisor

Many businesses and individuals in the world and America in particular are experiencing and benefiting from (in spite of the increased spread of the virus) a huge growth in the money supply, strong earnings, early retirements and the sales of their businesses. While there is much to acknowledge by the financial security these can bring, it also means considering the impact taxes can have. Add to that Washington has increased spending and increased tax plans on its current agendas.

When it comes to taxes and investing, there are three main strategies individuals might want to consider. Each has its own merits and distinguishes itself from the other. Any one or combination of the three may help address the accumulation of wealth and the preservation of it as well.

The three are: 1) Tax reduction strategies 2) Tax free strategies and 3) Tax deferred strategies.

Tax reduction strategies (for current and future tax liabilities for individuals and perhaps their estates). This involves charitable giving or moving assets out of their estates. Americans are among the most charitable people in the world and they can combine their philanthropy with reducing their current taxes with contributions directly to a charity of their choice (including churches, schools/universities and certain societal causes). Another way that is utilized and is an increasingly popular strategy of Donor Advised Funds (or DAFs). And some, depending on resources they have, might even establish their own private foundation. The impact is that it reduces (within certain limits) income taxes for the current year while also fulfilling their support for the causes they care about. There are also tax reduction strategies that can impact current and future taxes by utilizing things like Charitable Remainder Trusts (CRTs), Charitable Lead Trusts (CLTs). And some may be looking to get assets out of their estates to address the tax burden for their heirs (so no current tax savings for them) and utilize things like Spousal Lifetime Access Trusts (SLATs).

Tax free strategies focus on those investments where income is not taxed federally (and in some states as well). These can help reduce current taxes particularly in a year where income may be surging. The main investments available in this case are municipal bonds or municipal bond funds or exchange traded funds. Many of these are considered more conservative (and hence not growth oriented) investments and pay monthly, quarterly or semi-annual tax-free income. Social security recipients should take note that the income while not taxable does go into their earnings calculations. Lastly, certain retirement accounts like the ROTH IRA, when certain requirements have been met by the holder, might deliver tax free income (post 59 ½ years old and after a certain waiting period for owners or beneficiaries) for life.

Tax Deferred Strategies. Many Americans do this at every paycheck by contributions to their 401ks, 403bs, SIMPLE (Savings and Incentive Match Plan for Employees) plans or SEP plans. These contributions not only reduce your current taxable income but they also can grow on a tax deferred basis (without annual taxes on growth, capital gains or any income they produce). In theory that means the investments have an advantage to taxable investments. Of course, on the other end, when distributions are made, those distributions are taxed, at that time. Tax deferred strategies for IRAs have current contribution limits of $6000 per year ($7000 if over 50 years old). For 401ks that can mean contributions of up to $19,500 ($26,000 if over 50) with a total annual maximum of $63,500 given certain limitations from their salaries and those plans that involve a company contribution through a profit-sharing plan to add to that. SIMPLE plans work similarly but with lower limits (and might be attractive to small companies). There are merits and considerations for SEP plans as well. Lastly, some people, particularly in their 50s or 60s might be wanting or needing to catch up on retirement savings and there are plans such as Defined Contribution Plans (DBPs) where the individual can potentially contribute 100% of their earnings within limits. Those plans currently would max out at $230,000 per year in contributions. It is important to seek professional tax planning assistance when considering any of these.

At The First Wealth Management, we encourage our clients to 1) concentrate to accumulate and then diversify to preserve 2) to monitor and make changes to their strategies over time vs overnight 3) consider the impacts that taxes can have on their savings and investments.

The First Wealth Management is located at First Florida Bank, a division of the First, A National Banking Association, 2000 98 Palms Blvd, Destin, FL 32541 with branch offices in Niceville, Mary Esther, Miramar Beach, Freeport, and Panama City. Phone 850.654.8124.
Raymond James advisors do not offer tax advice. Please see your tax professionals. Email: Maurice.stouse@raymondjames.com. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC, and are not insured by bank insurance, the FDIC, or any other government agency, are not deposits or obligations of the bank, are not guaranteed by the bank, and are subject to risks, including the possible loss of principal. Investment Advisory Services are offered through Raymond James Financial Services Advisors, Inc.

The First Wealth Management First Florida Bank, and The First, A National Banking Association are not registered broker/dealers and are independent of Raymond James Financial Services.

Views expressed are the current opinion of the author, not necessarily those of RJFS or Raymond James, and are subject to change without notice. Information provided is general in nature and is not a complete statement of all information necessary for making an investment decision and is not a recommendation or a solicitation to buy or sell any security. Past performance is not indicative of future results.

Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Investors should consult their investment professional prior to making an investment decision.

Investing in oil involves special risks, including the potential adverse effects of state and federal regulation and may not be suitable for all investors.

Treasury Inflation Protection Securities, or TIPS, adjust the invested principal base by the CPI-U at a semiannual rate. Rate of inflation is based on the CPI-U, which has a three-month lag. Investing within specific sectors, or in small and mid-size companies, involves unique, additional risks. Those risks include limited diversification, regulatory risks, limited liquidity, and lack of operating history.

There is an inverse relationship between interest rate movements and fixed income prices. Generally, when interest rates rise, fixed income prices fall and when interest rates fall, fixed income prices rise.

Investors should carefully consider the investment objectives, risks, charges, and expenses of mutual funds before investing. The prospectus and summary prospectus contain this and other information about mutual funds. The prospectus and summary prospectus are available from your financial advisor and should be read carefully before investing.