As the new year launches, it’s time to think about how to make 2018 a financial success for you and your loved ones. Though there is little consensus about their origins, we know that Americans have been making New Year’s resolutions since at least the 1770s.

Some of my last minute and realistic resolutions for 2018 are: 

• Create emergency savings: Life is full of unexpected emergencies, and some extra cash can help a serious illness, home repair, or other sudden financial need from derailing your finances. Prepare for unpredictable expenses by putting aside six to eight months of expenses in an easily accessible cash-equivalent account.

• Maximize your retirement-plan contributions: Tax-managed retirement accounts are one of the most powerful ways to save for a more comfortable retirement. Make the most of them by contributing as much as you can each tax year. We usually recommend maxing out employer-sponsored plans first to take advantage of any matching contributions your employer may offer. 

• Protect your credit identity: Identity theft and financial fraud are serious threats that can compromise your financial wellbeing. Protect yourself by reviewing financial statements and bills carefully for unauthorized activity.                

Richard W. Paul is president of Richard W. Paul & Associates, LLC (www.rwpaul.com) and author of “The Baby Boomers’ Retirement Survival Guide: How to Navigate Through the Turbulent Times Ahead.” 

DeWITT — The property and casualty (P&C) insurance industry contributes more than $40 billion annually to New York’s economy, an industry group said in a recently released report.

The report by New York First, Inc. also said the industry will support more than 152,000 jobs annually, produce over $200 billion in output, and pay more than $66 billion in wages and salaries over a five-year period between 2016 and 2020.

“The property-casualty insurance industry underpins the New York State economy,” Richard MacDonald, co-chair of New York First, said in a news release. “This report shows just how important it is to the state’s job market, tax base, and financial security.” 

MacDonald also serves as board chair of DeWitt–based Big I New York, the state’s oldest insurance-producer trade association, and is VP and director of sales at Haylor, Freyer & Coon, Inc. in Salina.

Big I New York is the former Independent Insurance Agents & Brokers of New York, Inc. (IIABNY). Big I New York provided details about the report in a news release issued Dec. 4.

Formed in 2004, New York First is a coalition of insurance companies licensed to do business in New York that support the independent-agency system. Through industry research, legislative and regulatory advocacy on common issues, New York First says it “advances issues to support the independent agency system…”

Report findings

Goss & Associates and the Goss Institute for Economic Research, both headquartered in Omaha, Nebraska, prepared the report.

It estimated that the P&C industry will produce $202.9 billion for the state economy between 2016 and 2020. It will provide $66.3 billion in wages and salaries and $7.8 billion in self-employment income.

Productivity growth in New York’s insurance sector has been 2.33 times that of the insurance industry nationwide.

New York P&C firms supported wages per job of $85,270 in 2016 — about 45 percent above the state average. The industry will support an average of 152,775 jobs per year between 2017 and 2020, the report found.

Every 1,000 New York P&C jobs support 1,550 non-P&C jobs in the state.

Between 2006 and 2015, P&C companies’ purchases of New York municipal bonds reduced the bonds’ interest rates by 0.45 percent, saving state taxpayers $153.6 million annually, for a total savings of $1.5 billion, the analysis found. The P&C industry invests one-third of its fixed-income investment portfolio in state and local municipal bonds.

The industry produced $2.4 billion in state and local taxes in 2016. It will generate another $9.5 billion between 2017 and 2020. Each P&C industry job creates almost $41,000 in state and local taxes annually. 

The New York State Department of Financial Services has proposed new consumer protections that would adopt a “best interest” standard for those licensed to sell life insurance and annuity products in the state.

It’s a new requirement that would compel the seller to offer the product that “best reflects the customer’s interest” ahead of what is “most profitable” to the seller, the office of Gov. Andrew Cuomo said in a news release issued Dec. 27. 

The proposed regulation comes as the federal government has recently delayed by a year and a half implementation of similar, increased regulations on those who sell life insurance and annuities.

“As Washington continues to ignore and roll back efforts to protect Americans, New York will continue to use its role as a strong regulator of the financial services and insurance industries to fight for consumers and help ensure a level playing field,” Cuomo contended in the release. 

“Given the key role insurance products play in providing financial security to middle class New Yorkers, it is essential that a provider adhere to a higher standard of care and only recommend insurance and annuity products that are in the consumer’s best interests,” Maria Vullo, New York’s financial-services superintendent, said.

Reaction to DOL delay

On Nov. 27, the U.S. Department of Labor (DOL) announced that it would delay by 18 months implementation of a fiduciary rule, adopted under the previous administration, which expands the definition of investment advice under the federal Employee Retirement Income Security Act, applies to certain annuity and life-insurance sales, and requires financial advisors to adhere to “enhanced” standards of conduct. The date of implementation has been pushed back from Jan. 1, 2018 to July 1, 2019.

During the 18-month transition period, “fiduciary advisers have an obligation to give advice that adheres to ‘impartial conduct standards.’ These fiduciary standards require advisers to adhere to a best interest standard when making investment recommendations, charge no more than reasonable compensation for their services, and refrain from making misleading statements,” the DOL said.

The proposed amendments to New York’s current suitability regulation would provide for a “best interest standard of care” for all sales of life insurance and annuity products, “beyond” the types of advice covered by the federal DOL rule. That includes retirement planning, and when recommendations are made prior to the sale of an insurance product, or after the sale — but during the servicing of the product — for the consumer. 

A transaction is considered in the best interest of a consumer when it assists a consumer’s needs and objectives and is recommended to the consumer “without regard to the financial interest of the product seller,” the state says. Insurers would also be required to develop and maintain procedures to “prevent financial exploitation of consumers.” 

The amendments “supplement” consumer protections already in effect in New York and that are “key elements” of the conflict of interest rule. They include setting limits on compensation and compensation transparency for the sale of a life insurance or annuity product in New York.

The proposed amendments are subject to a 60-day notice and public-comment period following the Dec. 27, 2017, publication in the New York State Register before its final issuance.

Industry reaction

In a Dec. 27 Bloomberg article, the Life Insurance Council of New York, expressed concern about New York’s proposed regulations putting the state’s life insurers at a competitive disadvantage against insurers from other states.

“We do have serious concerns about implementing any regulations that will result in an unfair playing field for New York’s life insurance companies,” the group said in an emailed statement to Bloomberg. “Any implemented regulation should be uniform across the country, so companies do not face different standards in different states.”

SENECA FALLS — Generations Bank announced that Cynthia Aikman of Auburn has joined its board of directors, effective Jan. 1.

Aikman currently works as a business-development specialist and serves as a mentor and coach to area managers, CEOs, and organizations, Generations said in a news release. She also serves on the board of directors for the Cayuga Economic Development Agency (CEDA). In addition, Aikman is the founder and trustee of the Cayuga Women’s Business Trust Fund as well as a member of the Cayuga Community Fund Leadership Council.

“The board was unanimous in its support of Cynthia becoming a director,” Menzo Case, president and CEO of Generations Bank, said. “Her breadth of knowledge and her ability to create and foster meaningful relationships across the region is an asset. She brings a unique perspective that will benefit our organization for years to come.”

Generations Bank is headquartered in Seneca Falls and has additional branch offices in Auburn (2), Union Springs, Waterloo (2) Geneva, Phelps, and Farmington. 

OSWEGO — Pathfinder Bancorp, Inc. (NASDAQ: PBHC), holding company for Pathfinder Bank, recently declared a quarterly cash dividend of 5.75 cents per share on its common stock for the fiscal quarter ending Dec. 31. That’s up from the 5.5 cents a share it paid in the previous quarter.

It’s the third straight quarter in which Pathfinder has boosted its dividend by a quarter of a cent.

The new, increased dividend will be payable to all Pathfinder shareholders of record on Jan. 12 and will be paid on Feb. 3, the banking company announced in a news release.

At Pathfinder’s current stock price, the dividend payment yields about 1.4 percent on an annual basis.

Pathfinder Bank is a New York state–chartered savings bank headquartered in Oswego. The bank has nine full-service branches located in its market areas of Oswego and Onondaga counties.

Pathfinder Bank ranks first in deposit market share in Oswego County with a 42 percent share of all deposits, according to the latest FDIC data from June 30, 2017. The bank also has the most branch offices in the county with seven.

Thomas W. Schneider is president and CEO of Pathfinder Bancorp.