The upcoming election is the most important election of our lifetime, but then that’s been said of every election in my lifetime. With such an important election at hand, why doesn’t the market seem to care?

The simple truth is that the Covid situation has completely overshadowed the election, and is likely to continue to throughout the remainder of the election cycle. The sad truth is that we all know the pandemic is being politicized. What is scary is that we really don’t know which parts. 

For the remainder of the cycle, expect the pandemic, and more importantly how governments continue to react to it, to be the primary force driving the markets. Currently we’re seeing markets approaching or exceeding all-time highs, as economic data continues to show an economy healing from the self-inflicted turmoil caused by rolling economic shutdowns. 

Barring another large-scale shutdown, we expect the economy to continue to improve. In fact, we expect GDP in the third quarter to be about +15%, a sharp rebound from the -34% experienced in Q2. Q3 GDP will be announced on October 29th, and a turnaround of that magnitude could sway some voters.

And this is where we have some concern. Normally, we would not expect another shutdown, but with schools about to reopen in various forms, and the rampant politization of the pandemic by both sides, we see the potential for a hyperbolic reaction to the almost inevitable case in which a student becomes sick. 

Make no mistake: in no way are we downplaying the tragedy of a child’s illness. What we are saying is the potential exists for that tragedy to be hijacked in such a way that results in a call to action by media and political groups to further restrict economic activity in ways grossly disproportionate to the actual risk. 

As for the election itself, there are only two scenarios which we think would rattle the markets initially, and those would be that either party sweeps.

We don’t have any proclivity toward one party or the other and, frankly, the market’s don’t much care either. What markets care about is uncertainty, and one-party rule means change. 

A Republican sweep seems highly unlikely, but a Democratic sweep would mean increased regulations and increased taxes which means individuals and businesses would have to revamp the plans they have in place. 

Gridlock is good and, from an economic perspective, the best possible outcome would likely be a divided Congress, regardless of who wins the White House. With Republicans defending 23 Senate seats, compared to the Democrats’ 12 seats, however, it seems less likely the Senate will remain in Republican hands. 

The election is still three months away, and with so much happening on the Covid front, we’d caution against letting the election projections determine your shorter-term investment strategies. Polls are notoriously wrong this far out. 

As always, this article contains forward-looking statements, which can change at any moment. Be sure to work closely with your Certified Financial Planner® professional to help ensure that your financial plan  and investment strategy remain reflective of your goals, and the current economic landscape.

Stephen Kyne, CFP® is a Partner at Sterling Manor Financial, LLC in Saratoga Springs and Rhinebeck. Securities offered through Cadaret, Grant & Co., Inc. Member FINRA/SIPC. Advisory services offered through Sterling Manor Financial, LLC, or Cadaret, Grant & Co., Inc., SEC registered investment advisors.Sterling Manor Financial and Cadaret, Grant are separate entities. This article contains opinion and forward-looking statements which are subject to change. Consult your investment advisor regarding your own investment needs.

SARATOGA SPRINGS — Cornell Cooperative Extension Equine (CCE Equine) and The New York State Horse Council (NYSHC) partnered in mid-March 2020 to create a Covid-19 impact assessment survey for equine-related business owners and managers in New York State. This survey was released in April 2020 with the objective to better understand the perceived economic impact COVID-19 had on New York State Equine- related businesses. 

The target population was businesses, owners or managers of equine-related business in New York State. This included feed suppliers, veterinarians, horse lesson or training facilities, breeding facilities, transportation services and more. The survey had over 500 respondents that indicated owning a business that serves NYS. The majority of respondents indicated their business and being either a lesson or training facility or a boarding facility. 

Business owners and managers were asked to report their annual gross revenue for a typical year; the 70-percent of respondents indicated their annual gross income as being less than $100,000. Respondents also indicated if their business was considered essential under the Pause Plan. Sixty-three respondents (13-percent) reported that their entire business was considered essential while 202 respondents (43-percent) reported parts of their business as being considered essential. 

The questions “How Severe do you expect the effects of COVID-19 to be on your Business?” One hundred fifty respondents (33-percent) reported the effects of COVID-19 to be Extremely Severe, one hundred thirty-eight (29-percent) indicated Very Severe. Sixty-six respondents (10-percent) indicated the effects of COVID-19 to be either slightly severe or not severe at all. There were 231 respondents (49-percent) that indicated they would be somewhat likely or extremely likely to make temporary or permanent reduction to staff due to COVID-19. 

The purpose of this survey was to provide an opportunity for Equine-related businesses owners and managers to report the perceived impact COVID-19 had on their business. It is clear that there is perceived financial distress. Over 30-percent of respondents indicated concern of losing their business while over another 30-percent of respondents indicated they were unsure if they would lose their business due to the COVID-19 crisis. 

Despite the reported struggle equine-related businesses are encountering, 73-percent indicated not receiving any financial benefit for programs, loans, or tax credits to offset losses. Respondents reported “applied for funding but haven’t heard back” and “applied for ppp but haven’t received any monies as of yet;” thirty-seven percent of respondents reported needing financial assistance to keep daily activities of their business going. This survey provides insight to the equine industry and the economic distress that is occurring. 

One respondent wrote that the crisis was “crippling any source of income, but we continue to have all of our normal expenses as horses continue to be fed and cared for which is a high expense…” 

Businesses are clearly indicating financial concern and more information is required to better understand the severity of the crisis on the equine industry. Any questions can be sent to Brieanna Hughes, CCE Equine Resource Educator at Bh548@cornell.edu or Sarah Collier, NYSHC Recording Secretary, at sara.collier@nyshc.org. 

If you are an Equine-Related business owner or manager looking for related resources, please visit the links below for more information or contact Brieanna Hughes at bh548@cornell.edu, 518-885-8995, visit our Facebook page at www.facebook.com/cceequine at www.cceequine.com. 

For over twenty years, I have worked with clients and their families to help their loved ones obtain Medicaid coverage for nursing home care.  In the course of my practice, there have consistently been a number of myths and mistakes in Medicaid Planning.  By “myths and mistakes,” I mean misunderstanding about the Medicaid rules and mistakes people make based on them.

The following questions and answers are designed to address some of the more common misunderstandings and give the reader more accurate information on Medicaid Planning.

Isn’t it true that my IRA will be considered a countable asset?

No.  Retirement accounts, like IRAs, are generally not considered assets by the Department of Social Services (DSS), as soon as the accounts are in payout status.  Instead, they are considered as a source of income.  For example, if you have a $100,000 IRA, DSS will make a calculation based on your age that will convert that asset into a source of income considered when you apply for Medicaid.  Since you can only have $15,750 in assets and qualify for Medicaid, this will allow you to potentially qualify – despite the fact that you have a $100,000 IRA.

What happens to my retirement income when I apply for Medicaid?

That depends on whether you are married or single.  If you are married, some of it may be made available to your spouse to pay their expenses if they are below the allowable income level for a community spouse.  That level is currently $3,216 per month.  If you are single, most or all of your income will likely be used to help pay for the cost of your nursing home care.

Is the Medicaid look back period seven years?

No.  The Medicaid look back period is five years.  At the time of your Medicaid application, DSS will require you to provide the last five years of your financial records for their review in determining your eligibility.

Isn’t it true there is no look back period for Community Medicaid?

Yes – but that will end soon.  Community Medicaid is available to pay for aides in your home, if you qualify.  Currently, there is no look back period for Community Medicaid, but that will end on January 1st of next year.  As of that date, a 2 ½ year lookback period will be phased in for all transfers after October 1st of this year.

Isn’t it true that I can put my assets in a Trust and DSS can’t touch them?

As a general rule, that is not correct.  However, if you create an Irrevocable Trust and the assets are transferred to that Trust more than five years before you apply for Medicaid, then yes – those assets will be protected for Medicaid Planning purposes.

Isn’t true that I can take money out of my Irrevocable Trust to help pay my expenses?

No.  In a properly drafted Irrevocable Trust used for Medicaid Planning, the assets you put in the Trust cannot come back out to you.  If the Trust provisions allow that to happen (or you take the assets out regardless of the Trust provisions), then the assets will be considered yours and counted against you when determining your Medicaid eligibility.

Isn’t it true that I can get a home equity loan after I put my house in a Trust?

If you put your house in an Irrevocable Trust for Medicaid Planning purposes, you generally cannot thereafter get a home equity loan with your residence pledged as collateral.  From the bank’s perspective, you no longer own the home (the Trust does instead), so you cannot pledge it as collateral.  In addition, if you have a home equity loan before you put your house in an Irrevocable Trust, the bank may not continue to permit you to take draws on that loan.

Isn’t it true that I can give away $15,000 a year without a Medicaid penalty?

No.  The $15,000 limit is known as the federal annual exclusion amount for gift tax purposes.  This is the amount of money you can give to someone without the need of filing a gift tax return.  This is a useful number to keep in mind if you have a large estate (i.e. in excess of $5 million) and you want to make lifetime gifts and reduce your potential estate tax burden upon your death.  Otherwise, the amount is likely not very important to your planning.

Is there an amount of money I can give away without fear of a Medicaid penalty?

Yes.  You can generally give up to $2,000 per person per year without fear of Medicaid penalty.  This is not a level established by statute or regulation, but rather a rule of thumb used by the local Medicaid authorities.  For more information on allowable gifting and how penalty periods work, please take a look at my March 9, 2020 article in Saratoga Today entitled “Medicaid Lookback Periods and Penalty Periods.”

People receive their information on Medicaid Planning from a variety of sources, including friends, family, websites, and elsewhere.  Amongst the information available, is unfortunately an abundance of misinformation that can lead to mistakes.  When it comes to Medicaid Planning, you should seek out the services of an experienced elder law attorney to make sure your planning is based on the most current, and correct, information.

Matthew J. Dorsey, Esq. is a Partner with O’Connell and Aronowitz, 1 Court Street, Saratoga Springs, NY.  Over his twenty-three years of practice, he has focused in the areas of elder law, estate planning, and estate administration.  Mr. Dorsey can be reached at 518-584-5205, mdorsey@oalaw.com, and www.oalaw.com.

CORINTH – With employee health being one of the most important topics in the workplace due to the emergence of COVID-19, Hudson River Community Credit Union (HRCCU) is proud to announce that it has been named a 2020 Healthiest Employer by the Albany Business Review for the second straight year. 

The awards program honors 30 companies in the Capital Region whose wellness programming and benefits go above and beyond. HRCCU works hard to cultivate a work environment and culture that is both fun and results oriented. They have built an enjoyable workplace for staff at their Operations Center complete with a full kitchen/break area, fitness facility and outdoor patio area. The credit union also brings in nutritionists and massage therapists periodically to help answer questions and keep their employees healthy.

“At HRCCU, we are really proud of the fact that we are able to offer our employees a workplace that integrates health into their work life,” said Sue Commanda, CEO. “Our company mission is to improve the financial well-being of our members, but we are also committed to improving the health and well-being of our employees. This is especially important with the rise of COVID-19 in our communities. We know that now more than ever we need to provide a workplace that is supportive of our employees’ physical, emotional and social well-being.”

Winners are determined by the Healthiest Employers LLC, a data and research company, which measures wellness and benefits factors using the Springbuk analytics platform. The assessment scored companies on their wellness program’s culture and leadership commitment, foundational components, strategic planning, communication and marketing, programming and interventions, and reporting and analysis.

Companies with an office of at least five employees were eligible in the following Capital Region counties: Albany, Columbia, Fulton, Greene, Montgomery, Rensselaer, Saratoga, Schenectady, Schoharie, Warren and Washington.

The winners were celebrated on July 30 at a virtual event.

SARATOGA SPRINGS – Five members of the 2017 Saratoga Springs Charter Review Commission met recently to plan for a public information initiative for the Charter Referendum, which will be on the November 3 ballot. 

Voters will decide whether to change city government from a commission form to a structure with a six member ward-based city council, a city manager and a strengthened mayor. The “Charter Women” believe that city government will be more inclusive and responsive under the proposed system.

The proposed City of Saratoga Springs Charter amendment replaces the existing commissioner form of government with a more common form of city government. The abstract on the Nov. 3 ballot reads: “shall the Saratoga Springs City Charter be amended to provide for a City Council elected from six neighborhood wards of equal population, presided by a Mayor elected citywide, and for the appointment of a professional City Manager and other administrative officials accountable to the Council?” 

The common form is comprised of two main elements including City Council elected from six neighborhood Wards, presided by a Mayor elected citywide and a professional City Manager hired by and accountable to the Council.  Term limits are provided, with a maximum of six full two-year terms for Council members, and three full four-year terms for Mayor.

Balllston Spa Announces Free and Reduced Meal Policy

Ballston Spa Central School District announced this week a free and reduced price meal (Free Milk) policy for area school children. Local school officials have adopted the following family eligibility criteria to assist them in determining eligibility. More information can be found on the district website at www.bscsd.org/Page/229.

Click here for Saratoga Area Home Sales Beat Zillow Zestimates in July

SARATOGA SPRINGS – In order to keep her business surviving through the

pandemic, Happy Hound Pet Sitting Service owner Kathy Lovelace completely reinvented herself and the business.

            Knowing dogs love social contact more than most people do, Lovelace wanted to continue her dog sitting and walking service to her clients. To achieve this, Lovelace first became COVID-certified by Pet Sitters International. In order to become certified, Lovelace learned about COVID-19 and how to not only protect herself but those around her as well.

“I learned all about the virus and the best ways to avoid it,” Lovelace said. “I want to keep my clients and their pets safe. I have also educated myself on the local regulations, such as stay at home orders, to know specifically how everything can impact our local area.”

Pet Sitters International is an international educational association for professional pet sitters based in North California. The pet-sitting association represents nearly 7,000 independent professionals, Lovelace being one of them.

            After becoming certified, she made some modifications to her daily routine as well as her business. Previously, Lovelace would meet and great clients and their pets inside. However, she recently changed the meet and great to be outdoors with masks and staying socially distanced.

“For home visits, if the client is home they will stay social distance with a mask or they agree to go into a separate room into their home. Sometimes they’re home because, well, they’re working from home. While I’m in the home, I wear a mask and while walking the dogs, I simply stay socially distanced,” Lovelace said.

She now enforces a strict hand washing routine as well and asked all clients to complete a COVID-19 form, asking recent travel, contact and quarantine questions. Her clients only have to fill it out once, and will sign to agree to report any changes of the form. Despite making those multiple changes, Lovelace still faces a challenge: clients working from home.

“I feel that the challenge is that I have established some nice clients who I really miss. Now, more and more people are working from home, so I’m not seeing my clients as much. I would see their dogs up to five times a week sometimes and I have became attached to them,” Lovelace said.

She believes that if other independent businesses adopt similar methods, they can be successful as well. However, one benefit to owning a professional dog service is that adoption rate has increased these past months.

“Pet adoption and dog ownership has gone way up. Adoption has helped bring sunshine into homes and it’s a great to see,” Lovelace said. “At the end of the day we are all in this together and we’ll make any and all changes as we need to.”

Lovelace can be reached by phone at 518-583-6561 and is located at 72 Waterview Drive in Saratoga Springs. To learn more about Lovelace and her business, visit https://www.petsit.com/pet-sitter-saratoga-springs-ny-happy-hound-pet-sitting-service-llc.

SARATOGA SPRINGS – The anticipated opening of Darling Doughnuts happened this past Wednesday, July 29.

The store will operate as a grab and go counter with limited outdoor seating. Owner of Darling Doughnuts Natascha Pearl-Mansman designed a rotating menu to feature ten different flavors of doughnuts each week.

            They offer full size doughnuts for $3.74 each, mini doughnuts for $2 each and a recent addition of “box of holes” that sells 12 holes for $6. Doughnut flavors range from fruity to savory and all flavors can be found online at https://www.darlingdoughnuts.com/menu.

Some menu items includes: Café Latte, espresso and cream glazed doughnut with a latte art design; Banana Split, banana glazed and topped with chocolate banana chips; and even a Pizza doughnut, topped with San Marzano tomatoes, fresh mozzarella and pesto, then baked until bubbly.

Darling Doughnuts can be reached by phone at 518-430-2018 or email at darlingdoughnuts@gmail.com. The shop is located at 441 Broadway, Saratoga Springs.

MIDDLE GROVE – Come join the herd from Into The Woods Farm and NY Goat Yoga In The Woods and their yoga instructor Christine Riccio for a blend of gentle flow and vinyasa flow yoga in the warm spring
sunshine in the woods. 

Goats, yoga and nature, a triple threat to de-stress, combined together are a great way to break from a normal mindset and reap the benefits of animal and laughter therapy and yoga. Open to yogis of every skill level, Goat Yoga In The Woods NY is not a typical yoga class but still offers a relaxing form of beginner level yoga. The event is guaranteed to involve smiles and laughter. Current available dates include July 31, Aug. 7, 20, and 27.

The Nigerian Dwarf Goats are just the right size to snuggle into a lap or take a nap on a mat as you move through the certified instructor Riccio’s guidance. Goat yoga allows guests to step outside of their everyday routine and remind them to not take life so seriously. Reservations can be made online and cash will be accepted at the door. 

For more information and dates www.intothewoodsfarmny.com/goat-yoga.

To reserve your spot go to intothewoodsfarmny.com, email intothewoodsfarm@gmail.com or the link below eventbrite.com/e/goat-yoga-in-the-woods-for-everyone-tickets-107495213076.

PORT HENRY – Stewart’s Shops Corp. opened its north country prototype store model Wednesday in Port Henry with an expanded lineup of beef, potatoes, fruit and frozen food. The prototype is part of a two-year, $25 million investment focused on communities with limited access to groceries and produce.

The 4,200-square-foot, $2.3 million shop on South Main Street is located on the western banks of Lake Champlain on the same property where Mac’s Market operated the community’s only grocery store until going out of business in September. The Covid-19 pandemic has accelerated the need for retailers to play a bigger role in rural upstate communities where grocery stores for the past decade have been finding it harder to survive.

“We have seen the explosion of grocery, frozen foods and nonfoods,” said Chad Kiesow, Stewart’s vice president of facilities. “With what we are going through with Covid, people are relying on us more for a bigger breadth
of product than your typical convenience store.”

Stewart’s, which operated a 3,000-square-foot shop next door, purchased the former Mac’s Market site for $737,100 a couple weeks after the grocery store closed. The additional space allowed Stewart’s to add
lettuce, strawberries, mushrooms, frozen ground beef, potatoes and an extended line of frozen vegetables, lasagna, paper towels, dog food and other non-grocery products.

The Port Henry store is part of what Stewart’s Shops president Gary Dake and chairman Bill Dake have described as a prototype or laboratory to help the company determine the best way to serve North Country
communities where residents have to drive for 20 to 30 minutes to reach the nearest supermarket.