🚨 ATTENTION BUSINESS OWNERS 🚨

Big changes are coming that will impact how we support employees' retirement savings!

When I was working as an account manager for employer-funded retirement plans, I learned a great deal about starting, funding, and maintaining a retirement plan. That was before the SECURE 2.0 Act of 2022—and now, it’s time to explore the updates!

Key Highlights of the SECURE 2.0 Act of 2022

Here are the important changes you need to know:

✅ Automatic Enrollment: Starting in 2025, new retirement plans must automatically enroll employees at a minimum of 3%, increasing annually. Employees can opt out if they choose.

✅ Tax Breaks for Small Businesses: Up to $5,000 annually in tax credits for new plans—plus additional credits for matching contributions!

✅ Starter 401(k)s: Beginning in 2024, low-cost retirement plans will be available to businesses without existing plans.

✅ Part-Time Employees: Starting in 2025, part-time employees working 500+ hours per year for two consecutive years must be included in retirement plans.

✅ Catch-Up Contributions: Bigger contributions for employees aged 60-63 will be allowed. However, new Roth rules will apply to high earners.

✅ Roth Matching Contributions: Employers can now offer Roth (after-tax) matching contributions, providing more flexibility for employees.

What’s the Big Picture?

These changes aim to simplify and expand retirement planning options for both employers and employees. But they also raise some important questions:

Are these policies an opportunity to strengthen the workforce, or just another challenge for small businesses?

💬 Weigh in below! Do you see these changes as a win for employees, a hurdle for employers, or both? How would you adapt your business strategy to stay compliant and competitive?

Stay Tuned

In my next article, I’ll dive into the specifics of which businesses are required to implement these plans. Don't miss it!

#SECUREAct #SmallBusiness #RetirementSavings #EmployeeBenefits #BusinessStrategy

When you purchase property and casualty insurance in Washington, understanding how your rates are calculated can give you clarity and even help you manage your expenses more effectively. Here are seven key factors that influence these rates:

1. State-Specific Regulations

Washington has its own rules for insurance pricing, enforced by the Office of the Insurance Commissioner (OIC). Insurers must file their rates with the OIC to ensure they are fair, adequate, and not discriminatory. This oversight means your premiums are influenced by both your personal risk factors and statewide regulations.

2. Risk Assessment

InsInsurance companies assess risk by analyzing the likelihood of a claim being filed. For property insurance, this involves evaluating factors like the location of your home, local crime rates, and natural disaster risks (e.g., floods or earthquakes). For auto insurance, it includes your driving record, frequency of use, and accident history.

Some carriers, have specifically classified areas like Liberty Lake and parts of Greenacres as fire risks. This has led to adjustments in rates and, in some cases, the non-renewal of policies. This highlights how localized risks can significantly impact your premiums.

https://firststreet.org/city/liberty-lake-wa/5339335_fsid/fire

3. Credit History

In Washington, insurers are allowed to use your credit history to determine your premium rates—although it is only one piece of the puzzle. Studies show that credit behavior often correlates with the likelihood of filing claims, so maintaining good credit can affect your premiums. In my experience when I sold Home and Auto Insurance, credit score made a HUGE difference in premium.

4. Type and Value of Your Property

For homeowners or renters insurance, the replacement cost and structure of your property affect your premiums. Homes made of fire-resistant materials may lower rates, while features like swimming pools can increase them due to heightened risk.

5. Coverage Options and Deductibles

The level of coverage you choose plays a major role. Higher coverage limits or adding optional riders (like earthquake insurance) will raise your premiums. On the flip side, selecting a higher deductible can lower your monthly payments—but you'll need to cover more out-of-pocket in case of a claim. We personally carry a higher deductible on our home because statistically, the chances and less than 10% each year that I will need to use my homeowners insurance and we could afford the higher deductible if needed. 

6. Claims History

Your past claims can significantly affect your rates. Insurers assume that a history of frequent claims increases the likelihood of future claims. In Washington, as in most states, this is an essential factor for calculating both home and auto insurance premiums. In my experience, even a claim that your insurer denied on your current home could prevent you from keeping your carrier if you sold your current home to buy a new one. Yes this actually happened.

7. Discount Opportunities

Many insurance providers in Washington offer discounts that could reduce your premiums. Bundling home and auto insurance, installing home safety devices, or maintaining a clean driving record can all earn you discounts. It's worth exploring these options when shopping for policies.

Final Thoughts

Understanding how property and casualty insurance rates are calculated in Washington can empower you to make informed decisions. Stay tuned for more tidbits like this and reach out if you would like to know who I recommend in the are for home and auto coverage!