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Have a plan before moving in together

Address shared expenses, insurance and other issues

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So youā€™re thinking about taking your relationship to the next level by moving in together.Ā From a financial planning standpoint, this is a much bigger decision than agreeing on a place and comingling your possessions.

When living together, there is no family law to protect you and you are not afforded the same financial (and legal) protections and benefits as couples that are legally married.Ā While you should consider talking to a legal expert to determine whether you should enter into any contractual obligations, here are a few financial issues to think about.

Determine how to deal with common expenses first. Consider keeping your bank accounts and credit cards in your own name but also establishing a joint account for expenses such as mortgage payments, household utilities, groceries and other essentials.Ā  Not all couples earn similar incomes, so think about what is equitable and what you are both comfortable with.Ā Should you contribute toward joint expenses in proportion to your income or simply have a 50/50 split?Ā Should you add money to the pot to include joint entertainment and dining and include a little extra for joint vacations?Ā While this sounds like an unexciting exercise during an exciting time in your life, it is important as longer-term financial planning is often influenced by current cash flow issues.Ā For example, if cash flow is tight, as it is for so many these days, the amount that you feel you should put away monthly for retirement could be reduced by the amount you want to save for that dream vacation or holiday home.

Reaching financial independence takes disciplined planning and this should now be done with both partiesā€™ goals in mind.Ā If one of you earns less and/or has put away less towards saving, yet you envision retiring together and living a similar retirement lifestyle, the partner who falls behind can derail both goals. Discuss when you want to retire, where you want to live and how you envision your retirement.Ā If there are children involved, talk about how one or both of you would like to save and pay for college.Ā Of course, these are not issues specific to same-sex partnerships, but typical for couples living without the legal protection that marriage brings.

Think about protecting yourself in other ways, too.Ā For example, if you buy big-ticket items together like a house or car, speak to an attorney about the best way to title the property and think carefully before only one name is on the loan paperwork unless you have something in writing protecting you against the liability.Ā  If the relationship ends, the partner with the debt may be left with little or no legal standing if careful planning strategies have not been executed.

Protecting your income in the event one of you becomes disabled should be another consideration. If your current lifestyle and common long-term goals are contingent on both your incomes and a savings strategy, make sure that you have adequate disability insurance to replace lost income.Ā Also consider how you want your partner to live if you die prematurely. If the partner with less assets or lower earning power is left behind, they will not be afforded the same benefits heterosexual married couples get such as Social Security and pension survivor benefits.

Discuss these issues with each other and speak to an insurance professional about obtaining the appropriate amount of life insurance to make sure you are both provided for.Ā If you believe you will leave a large estate, your partner wonā€™t receive your assets automatically and gift tax-free.Ā Life insurance can help offset these potential inheritance taxes and estate taxes.Ā There are other estate planning issues you should discuss with an attorney such as putting together and executing a will with the appropriate accompanying documents such as a living will and power of attorney.

So, when you are ready to take this big step, donā€™t forget to focus on your finances so you can move toward planning a financial future with your loved one.

This material is for informational purposes only and is not intended to act as specific advice.Ā Please talk to a financial professional prior to investing and a tax adviser for tax advice.Ā Benefit guarantees for insurance are subject to the claims paying ability of the insurer.

Terry-Ann Gardemal is a certified financial planner and financial adviser with Potomac Financial Management. She can be reached at 301-840-0770, ext. 110 or tagardemal@po- tomacfm.com.

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Business

Small businesses and a big plan

Kamala Harrisā€™s plan could impact D.C. small LGBTQ-owned establishments

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Jimmy Hopper of Three Fifty Bakery shows off his wares. (Photo courtesy of Hopper)

One of the unique aspects of living and working in Washington is that residents constantly witness how presidential elections shape policy and, in turn, how those policies directly impact daily life.

For some people, policy changes seem irrelevant, but for a growing number of Americans working in small businesses, presidential policy is crucial. These policy shifts that change with the sitting president can often mean the difference between having a thriving business, or no job at all.

In September, Vice President Kamala Harris announced her economic plan to help small businesses grow. This plan, which she has called her ā€œEntrepreneurs and Innovators Policy Plan,ā€ attempts to address some of the biggest issues that small business owners face when starting and growing their businesses.

The Washington Blade sat down with several LGBTQ business owners in Washington to discuss how they feel the vice presidentā€™s plan could impact them if she gets elected.

David Burton, the owner of the Capital Candy Jar, a candy maker and shop, was excited to hear about the policyā€™s goal to increase access to capital for underserved communities, especially within the LGBTQ community.

When he began his candy business 10 years ago, Burton lacked the large access to capital he needed to get things started, so he relied on generous hello from family and friends.

ā€œThis is going to be a game changer for a lot of startups,ā€ Burton said. ā€œWhen I was first starting out I was calling friends and family and maxing out every credit card I had, begging people to loan me money for three or four months until I could get through the holiday season and pay them. Luckily, I had some very generous and really kind people in my life that were able to help me.ā€

This issue of high startup costs is not unusual for small businesses. These high initial costs can act as a barrier for potential entrepreneurs.

Jimmy Hopper, owner of Three Fifty Bakery in Dupont Circle, says he experienced these issues when he opened the bakery 10 years ago.

ā€œFor new business, it’s really tough,ā€ Hopper said. ā€œYou can either use your own money or you get loans from friends because banks will not give you a loan unless you have collateral. When I opened the bakery, I pretty much spent all of my savings, my retirement, everything to open the bakery, because there was nothing available for me.ā€

One of the ways the vice president is attempting to alleviate this stress of high startup costs is by launching the largest-ever direct federal investment in small business incubators and accelerators. This program would provide small businesses with resources, mentorship, and networks during the first few years of the company to encourage growth.

In her policy, Harris wants to change the startup expense deduction of $5,000 to $50,000, which is 10 times bigger than it stands now.

Joshua Hill, the co-founder and principal at Hill & Hurtt Architects and president of the Equality Chamber of Commerce, Washingtonā€™s nonprofit LGBTQ business organization, feels this policy could especially help LGBTQ business owners when starting up.

ā€œI think so many LGBTQ businesses, and potential future business owners are starting at a disadvantage, potentially, right?ā€ Hill said. ā€œThey have been discriminated against in their workplace. So they launch their own business. And in the D.C. area, it’s a lot better than it is in other parts of the country, for sure, or other parts of the world, but they’re still starting at a disadvantage.ā€

Hill continued, saying that providing this access to capital is one clear way to alleviate these disadvantages.

ā€œMost people don’t have the opportunity to sock away 50K for living expenses while they’re making nothing and building their business,ā€ he said. ā€œI think that, certainly for me, would have helped just move things along more quickly.ā€

Another large aspect of Harrisā€™s Entrepreneurs and Innovators Policy Plan is to simplify tax filing for small businesses.

The way that taxes are collected for small businesses in the U.S. is very complex and requires lots of information from the business owner. A very simplified view of this process includes finding the right tax form (singular owners use one tax form whereas corporations and partnerships each have their own different set of forms), report on the income and payroll of the business, calculate their sales tax, claim deductions and credits for various business expenses, calculate state tax, and then pay off the taxes.

This complex taxing process has lots of places where one error in reporting could cost a business time, money, or possibly jail time.

Harrisā€™s plan advocates for the development of a standard deduction in the tax code, like how individual people file taxes that Harris argues can save small businesses time and money by simplifying filing.

Every person the Blade interviewed did say they hire a tax expert, either an accountant or a tax attorney, to help them keep their taxes in line. Collectively, the business owners felt that by simplifying how the business taxing process goes, their businesses could save time and money.

ā€œOnce you get into business, unless you’re an accountant, you probably have to pay someone to do your business taxes,ā€ Burton explained. ā€œThe problem is, the bigger you get, the more they charge you. And that can add up very quickly, the bigger you get in the more complex it gets.ā€

Another concern raised by some LGBTQ business owners is the lack of a unified system for filing different levels of taxes, which makes the process more challenging.

ā€œI think that’s where the most challenges were because you have the state, the local, federal, and it’s a lot of filings to keep track of, especially someone who doesn’t have a huge tax background,ā€ said Hopper. ā€œAnd a lot of the forms, in my opinion, are unnecessary but you still have to file them- even if they’re [the tax] $0, or you get assessed with a penalty.ā€

Hill, whose architecture firm works in Maryland, Virginia, and D.C., felt that he was having difficulty making sure that he complied for every state he worked in.

ā€œAs an architect where our business is in D.C. but we do work in Maryland, the income that we make from clients in Maryland has to be reported differently, and it’s taxed differently,ā€ Hill said. ā€œThat goes for any companies that are a service based company. So it can get complicated pretty quickly. The more simple it can be, that’s another win on the financials, with time and money savings. Wouldn’t you rather be spending that time building your business or marketing or doing the things you love, instead of filling out tax forms or paying someone to do that?ā€

Harrisā€™s plan also calls for 25 million new small business applications by the end of her first term. The plan explains this can be achieved by reducing excessive occupational licensing requirements, encouraging states and local governments to cut red tape, expanding capital to underserved communities ā€” including the LGBTQ community, and by expanding the rural partners network nationwide to all states and territories.

The business owners also mentioned this ambitious goal, which reflected many of the points they had made earlier ā€” specifically by supporting small businesses and simplifying red tape.

ā€œI think you have to make it easy for people to start businesses, because there are a lot of regulations and roadblocks,ā€ Burton said. ā€œIt seems that it’s very challenging to learn all the regulations as you start a business. So you might have a great idea, but then all of a sudden, you go to get your business license and find out ā€˜Oh, there’s all these other things you have to do.ā€™

I think anything that can be done to remove regulatory roadblocks to starting businesses is going to help, because it’s not just LGBT ones. And then the second one, I, as I said before, I think is access to capital. I was super fortunate that I had savings and things that I could live on for the first year and even partially for the second and third years. But most people don’t have that, and so you might have the greatest idea in the world, but if you can’t afford to feed yourself, then you’re not going to start a business.ā€

Hill was surprised to read that during the Biden presidency a record 19 million new business applications were filled and felt if the focus stays on nourishing the small business that make up America, Harris can do it.

ā€œI was pretty impressed by that stat, because the 19 million in new recorded business applications was from the start of the Biden-Harris administration, so three and a half-ish years, and now our goal is 25 million in the first year,ā€ Hill said. ā€œIt’s a huge jump. I kind of see this as two, as two parts.

ā€œOne is the investment in the main streets and even the bids, would be really important. It’s interesting, because you can walk down the street and you can, like, all over the city, and there’s lots of missing teeth. There’s lots of shops that closed after COVID or shops that have closed because the COVID impact was just too much for them. And it seems like it’s taking a long time to get new folks to move in and start up. I feel like that, as a broad generalization, is happening all over the country. We live in D.C., where I think things are generally more stable than most parts of the country.ā€

ā€œI think the other thing would be to not just focus on those main streets and bids in general, but also specifically in areas that need more money,ā€ Hill added. ā€œPlaces that have been either devastated by natural disasters that are low income, the places where parts of the infrastructure that need to be updated, that are that are falling apart. I feel like we really need to focus on those parts of our cities and do it in a way that, I mean, this is me getting on my soapbox a little, but do it in a way that really is about lifting up the people in the communities that are there, and the cultural heritage of those communities, and not just tearing things down and moving people out and gentrifying the area.

I think that if you’re really serious about this 25 million new business applications in the first year then I think that those are places where you can do a lot.ā€

Hopper, on the other hand, felt the focus should not be on getting a goal of applications in, but rather on supporting the small businesses currently struggling.

ā€œSo what gets me there a little bit, is applications,ā€ Hopper said. ā€œIt’s easy to get applications, but how hard is it going to be for those applications to get any kind of funding? It is kind of everything we’ve talked about with helping a small business. If you don’t do that, you can have all those applications, but none of them turn out to be a business that’s actually opened unless you really back it up.ā€

Then, Michael Graham, Hopperā€™s partner, chimed in and explained he felt this could be achieved if more support was provided as the business grows through a sort of government assisted networking or mentorship program.

ā€œI drive by coffee shops in areas, and I’m like ā€˜I know what it takes to run that here,ā€ Graham said. ā€œā€˜We’re in Dupont, I know how many cups of coffee you have to sell, how many people you have to have come in to make it.ā€™ So when you see a business that opens and you’re like ā€˜Okay they just, if they did this, and if they did this it would make them successful.ā€™ So I think maybe if the government had a better understanding, or putting that information out there through all of the agencies that you have to deal with, with opening a business, if you knew your LGBTQ contact for that department that would be super helpful, at least.ā€

One thing not mentioned in Harrisā€™s plan that these business owners felt would greatly help improve the growth of LGBTQ businesses is to get a designated protected class status for the LGBTQ community. This status would safeguard LGBTQ people against discrimination from businesses and government entities.

This, although it would greatly help all aspects of being a member of the LGBTQ community, is difficult to achieve. This would require congress to pass legislation codifying the group as a protected class into law.

Burton believes that gaining this protected status and securing access to the 5 percent minimum of jobs reserved for minority-owned businesses within government contracts would strengthen the LGBTQ business community.

ā€œThe full 10 years we have been as an LGBT owned business, and every year, especially during pride month, I get a lot of business from people wanting to support LGBT owned businesses. There is nothing in the federal government right now that requires the federal government to support specifically LGBT owned businesses. Putting that in, I think that it would benefit all LGBT owned businesses.ā€

Hopper and Graham agreed, but felt the status impact on directly protecting discrimination lies at the heart of it.

ā€œLet’s be real,ā€ Graham said. ā€œWe are a minority, and we’re still fighting for our rights every single day.ā€

ā€œIf we were both straight white guys and we were opening a business anywhere, we’re not going to ever be discriminated against,ā€ Hopper added. ā€œA building owner isn’t going to be like, ā€˜Oh, you’re two straight white guys. I don’t want to lease to you.ā€™ But I could see some businesses where you could go to the landlord and be like, ā€˜We want to lease your space for a kitchen,ā€™ only to find out that they are not going to lease to you because they don’t agree with you being gay. I think being a protected class, a protected minority, would help keep you from being discriminated against, and that affects you opening your business, running your business, or any of that.ā€

Hill read through the policies and noticed LGBTQ businesses werenā€™t highlighted like other minority groups were. That caused him to start thinking as both a business owner and as president of the Equality Chamber of Commerce, where he felt this protected status would allow for a broader sense of community within the LGBTQ business community.

ā€œOne thing that definitely made sense to me was this connection to organizations like the National LGBT Chamber of Commerce and if there is a way to encourage more of LGBTQ owned businesses to join groups,ā€ Hill said. ā€œThere’s so many people who don’t even know that this group exists, but that that is a key to giving those groups access to broader contracts. You know a lot more in terms of supplier diversity and really bringing money directly into the LGBTQ community.ā€

When asked if they believe Harrisā€™s ā€œEntrepreneurs and Innovators Policy Planā€ would directly help them as an LGBTQ-owned business, each person emphatically said yes.

ā€œI think so many people would benefit from this, and the people that we care so much about,ā€ Hill finished. ā€œIt’s the American dream, Right? Finding something that you’re excited or passionate about and starting your own business. Everyone should have that opportunity.ā€

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Real Estate

Migration trends: LGBTQ buyers moving to suburbs, small cities

Finding welcoming communities beyond traditional urban strongholds

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Remote work has enabled many LGBTQ homebuyers to leave big cities for larger homes in the suburbs. (Photo by trongnguyen/Bigstock)

Over the past few years, a significant migration trend has emerged: many buyers are leaving urban areas in favor of suburban or smaller city life. This shift is largely driven by the rise of remote work, lower cost of living, and the appeal of a quieter, more spacious environment. For LGBTQ buyers, this trend offers unique opportunities and challenges as we seek welcoming, affirming communities beyond the big cities.

Why LGBTQ Buyers Are Considering Small City Living

Historically, LGBTQ individuals have flocked to larger cities known for their vibrant queer communities, social support, and acceptance. Cities like San Francisco, Chicago, New York, Miami and Los Angeles have long been hubs for LGBTQ life. However, recent trends show a shift in priorities:

  1. Remote Work Flexibility: The pandemic accelerated the adoption of remote work, giving many the flexibility to live outside urban centers. LGBTQ individuals can now prioritize factors like home space, affordability, and lifestyle without being tied to a city office. This newfound freedom allows us to consider locations that may offer a more balanced quality of life.
  2. Affordability and Space: Urban centers have high costs of living, making homeownership a challenge. Many LGBTQ buyers are looking to build families and settle down, which often requires more space than city living affords. Suburbs and smaller cities typically offer larger properties and single-family homes at a more affordable price, making them appealing options for those seeking more space and financial savings.
  3. Emerging LGBTQ-Friendly Communities: While cities have traditionally been safe havens for LGBTQ individuals, many suburbs and smaller cities are becoming increasingly inclusive. With Pride festivals, community centers, and local businesses openly supporting LGBTQ causes, these areas are actively working to attract and retain LGBTQ+ residents

Considerations for LGBTQ Buyers in the Suburbs

Moving to a less densely populated area may offer financial and lifestyle benefits, but itā€™s essential for LGBTQ buyers to research and ensure they are moving into a supportive environment. Here are some factors to consider:

  • Assessing Inclusivity and Safety: Before moving, itā€™s wise to visit potential neighborhoods to get a feel for the local culture. Researching online forums, LGBTQ community groups, and checking local nondiscrimination laws can also provide insight into a location’s inclusivity.
  • Access to LGBTQ Services and Community: Many LGBTQ individuals value access to queer-friendly healthcare providers, legal support, and social networks. Some smaller communities may lack these resources, so itā€™s important to verify that youā€™ll have access to the necessary support services.
  • Finding Local LGBTQ Groups: Community connection is crucial for LGBTQ individuals. Many suburbs have smaller but growing LGBTQ groups, often organized through social media or apps like Meetup. These groups can help you form connections, find local allies, and establish a sense of belonging in your new area.

Suburban Growth and Its Impact on LGBTQ Buyers

The migration to suburban areas has led to increased demand for single-family homes, which can lead to supply shortages and higher competition. In some LGBTQ-friendly suburbs, this demand has driven property values up as more people seek out homes that provide both the physical and emotional space they need to thrive.

Some suburban areas are responding to this demand by creating or improving amenities such as public transportation, dining, and cultural attractions, all of which contribute to a vibrant community. For LGBTQ buyers, this trend could mean greater access to the cultural and social opportunities they may miss from city life, alongside the benefits of suburban living.

The migration of LGBTQ individuals to suburbs and smaller cities highlights an exciting shift in lifestyle and priorities. As more suburban areas embrace diversity and inclusivity, LGBTQ buyers have the opportunity to find welcoming communities beyond traditional urban strongholds. 

At GayRealEstate.com, weā€™re here to help you find LGBTQ-friendly real estate agents who understand your unique needs and can guide you through the process of finding your perfect home, wherever that may be. Whether youā€™re looking in a bustling city, a tranquil suburb, or a charming small town, our network is here to support you every step of the way.


Jeff HammerbergĀ is founding CEO of Hammerberg & Associates, Inc.Ā Reach him at 303-378-5526 orĀ [email protected].

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Autos

Crazy cool coupes

Subaru BRZ, Mustang Ecoboost offer muscle-car moxie

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Ford Mustang EcoBoost

Iā€™ve written before about my first car: a used-but-pristine sports coupe, bought by mom for my 16th birthday. Recent test drives in two cool coupes brought back a flood of fond memories from those gawky teenage years. 

But while a two-door ride may not be the most practical vehicle for a decades-older me, itā€™s easy to appreciate the fast-and-furious allure. 

After all, buying a sports car is often associated with a midlife crisis. So who knows, there still may be roomā€”or vroom!ā€”for a sportster in my future. 

FORD MUSTANG ECOBOOST

$33,000 

MPG: 22 city/33 highway

0 to 60 mph: 5.6 seconds

Cargo space: 13.5 cubic feet

PROS: Muscle-car moxie. Surefire handling. Tech-laden cabin. 

CONS: Snug backseat. Pricey options. Intra-model competition.

IN A NUTSHELL: Introduced in 1964, Ford hoped to sell 100,000 Mustangs annually. But by tapping into the Boomer zeitgeist, almost 700,000 units were sold the first model year. Mustang is now the automakerā€™s longest running nameplate and the best-selling sports car in the world. 

This was the original ā€œpony car,ā€ with a high-test engine, long hood and affordable price tag. Luckily, the latest Mustang ā€” recently redesigned and in its seventh generation ā€” has stayed true to its roots. 

So, too, has the EcoBoost engine. Developed 15 years ago as a more enviro-friendly powerplant, these turbos often have been used on base models. The latest EcoBoosts ā€” there are more than half a dozen ā€” are 20% more fuel efficient and produce 15% fewer emissions than other Ford engines. And while the original could barely eke out 122 horsepower, todayā€™s four-cylinder EcoBoost in the Mustang delivers 315 horsepower. 

The only bummer: no manual transmission. For that, you need to dig deeper into your wallet ā€” much deeper. The Mustang GT, with a 486-horsepower V6, costs $50,000. And the boffo Dark Horse trim level, boasting a 500-horsepower V8, is $62,000. These MSRPs are without any options, which add up quickly.

But the Mustang EcoBoost still offers plenty of features: LED headlights, keyless entry, smartphone integration and Wi-Fi hotspot. Various driving aidsā€”blind-spot monitor, rear-parking sensors, lane-keeping assist, forward collision warning with automatic brakingā€”are all standard. 

The stodgy interior has been replaced with a mod, techno cabin with better upholstery and soft-touch surfaces. Various configurations of the digital instrument panel can be viewed at the whim of the driver. And the larger, 13.2-inch infotainment screen is user-friendly. 

Such upgrades remind me of the Mustang Mach-E. Though purists initially derided the use of the Mustang label on a four-door electric SUV, the Mach-E was the fourth best-selling EV last year. Similar in price and acceleration to a traditional gas-powered ā€˜Stang, the Mach-E is arguably just as fun. But add in the retro-cool factor, and thereā€™s no comparison.

SUBARU BRZ

$33,000 

MPG: 20 city/27 highway

0 to 60 mph: 6.6 seconds

Cargo space: 6.3 cubic feet

PROS: Sporty. Zippy. Fits anywhere.

CONS: Low ground clearance. Bouncy. Tiny trunk.

IN A NUTSHELL: The Subaru BRZ may not have the aura of a Ford Mustang, but this compact coupe still checks plenty of boxes. 

Porsche-like styling. Precision steering. Punchy power. Even pricing is a plus, with a top trim level less than $37,000. 

Despite Lilliputian dimensions ā€” the BRZ is a third smaller than a Mustang ā€” thereā€™s still more passenger room than in the rival Miata. As a tallish driver, I appreciated the unexpected amount of headroom and legroom in the front seats. 

But trunk space is another matter. With less than half the stowage space of a Mustang, donā€™t expect to haul more than a few grocery bags. And while you literally have to climb into certain jumbo SUVs and pickups, the opposite is true with the low-slung BRZ. These seats are so close to the chassis that it feels like sitting in a go-kart. Luckily, once I scooched myself down into the cabin, it didnā€™t take long to get used to the seating position. 

Three trim levels, all with rear-wheel drive, dual-zone climate control, push-button start and Subaruā€™s renowned EyeSight package: adaptive cruise control, automatic high-beam headlights, lane-departure warning and automatic emergency braking. Step up to the Limited version for larger wheels, heated seats, fancier upholstery, extra safety gear and a better sound system. The performance-oriented tS comes with sport-tuned suspension, premium Brembo brakes, dark gray metallic wheels and sporty interior stitching. 

Only one engine is available: a very capable 228-horsepower four cylinder. My test car also came with the six-speed manual transmission, which added more gusto. 

With such a short wheelbase, the ride is firm but controlled. And keeping weight down on the BRZ must have meant installing less insulation. After all, thereā€™s some noticeable road noise, especially on the freeway. But then, you also hear the constant purring and revving of the engine, which is music to the ears of sports-car aficionados. 

Subaru BRZ
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