Newsletter

At DB&C Advisors, exceptional service is not just about delivering tailored wealth management solutions; it’s about the heart of our practice—the people behind it. Our advisors don’t just bring financial expertise to the table; they bring their personalities, passions, and life experiences, making every client relationship personal and meaningful. In this blog, we’re excited to highlight three key team members who embody the spirit of DB&C: Deanna Sears, Shannon Simon, and Dan O’Mealey.

Deanna Sears – Client Services Associate

Family as a Driving Force

Deanna’s close-knit family has always inspired her, instilling in her the importance of love and connection, no matter the distance. This personal value translates directly into her work at DB&C Advisors, where helping clients plan for their families’ futures is a cornerstone of her role. Deanna sees financial planning as a way of protecting and nurturing relationships, much like she does with her own family.

Finding Balance Through Nature and Connection

Outside of the office, Deanna recharges through a variety of activities that connect her to both nature and community. She enjoys walking her dogs in the woods, gardening, and relaxing on the beach. When the weather isn’t cooperating, you’ll find her reading, sewing, or catching up with friends and family. Deanna’s philosophy is centered around balance—whether through quiet reflection, exercise, or shared laughter—helping her bring a positive, grounded energy into her work each day.

A Philosophy Rooted in Positivity

For Deanna, a smile goes a long way. Even when clients can’t see her, she believes they can sense the positivity in her voice. Her service philosophy is simple: stay upbeat and always approach life with kindness. This attitude resonates in her interactions with clients and colleagues alike, creating an environment where people feel supported, valued, and genuinely cared for.

The DB&C Family Atmosphere

One of Deanna’s favorite aspects of working at DB&C Advisors is the sense of family she feels with her team. Every day, she connects with clients and colleagues, forming relationships that go beyond transactions. For Deanna, it’s these connections that make her work so fulfilling.

Shannon Simon, BFA ®, CWS ® – Wealth Advisor

Client-Centered Relationships and a Family-First Philosophy

Shannon’s family plays a significant role in both his personal and professional life. His daughter is a teacher in Louisiana, and his son works for an airline in Michigan. Shannon’s focus on family mirrors his approach to working with clients, ensuring that every financial plan is deeply personal and rooted in each client’s life goals. He emphasizes, “It’s important to meet people where they are in their life’s journey—retirement, mid-career, or just starting out—and understand their goals and the steps they’ve taken toward achieving them.”

Enjoying Michigan Summers and Southern Cooking

Outside the office, Shannon enjoys spending quality time with his family, golfing (although not as much as he’d like), and fishing. As a native of Louisiana, he also loves cooking, particularly the foods he grew up eating, like gumbo, jambalaya, and barbeque. His time outdoors and in the kitchen helps him stay balanced and energized, allowing him to bring that same level of energy to his work.

Fostering Client Relationships as Family

For Shannon, DB&C Advisors feels like more than just a workplace—it’s a family. He notes that, “No matter what team or division you’re with, it feels like you are part of the family. Our goal is to extend that feeling to our clients, so we become an important part of their family as well.” He believes in creating strong, trust-based relationships with clients, helping them navigate challenges, and offering guidance through life’s significant events.

Dan O’Mealey, CFP ® – Chief Compliance Officer & Director of Financial Services

A Commitment to Setting a Good Example

Dan’s dedication to his family is mirrored in his professional life. As a father, he strives to set a strong example for his children, both in his career and in the way he approaches life. This commitment is reflected in how he engages with his clients, ensuring their needs are always the top priority.

Staying Energized Through Fitness and Fun

Dan’s life outside of the office is filled with a variety of activities that keep him balanced and energized. Whether it’s CrossFit, yoga, or spending time outdoors with family, Dan believes that staying active helps him maintain the focus and stamina necessary to serve his clients well. Summertime cookouts and travel are also significant parts of Dan’s life, providing the perfect way to unwind and recharge.

A Philosophy of Client-First Service

Dan’s personal service philosophy is straightforward: always put the client first. He believes that by focusing on the needs of his clients, everything else will naturally fall into place. This client-first mindset is at the core of how he approaches financial planning and is a key reason why he enjoys helping clients navigate both expected and unexpected challenges.

From Southeast Alaska to Wealth Management

One surprising fact about Dan is his unique background—he grew up in a fishing village on an island in Southeast Alaska. Before entering the world of financial planning, he spent ten years as a tool and die maker. This hands-on experience gives him a practical approach to problem-solving, which he applies to his financial planning strategies today.

Building Strong Client Relationships

For Dan, the best part of his job is getting to know the clients he serves. Whether it’s solving a small challenge or helping them navigate life’s big surprises, he values the trust his clients place in him and feels fortunate to be part of their journey.

DB&C Advisors is more than just a team of financial planners; we are a family of professionals who genuinely care about the people we work with. Deanna, Shannon, and Dan – along with the rest of the team, bring their full selves into their roles—combining technical expertise with authentic, human connections. When you work with DB&C Advisors, you’re not just getting a service; you’re gaining a partnership rooted in trust, integrity, and shared values.

As our population ages, seniors increasingly become targets for a variety of scams. These fraudulent schemes can have devastating financial and emotional impacts on older adults, who may be more vulnerable due to factors such as isolation, cognitive decline, or simply a trusting nature. The Internal Revenue Service (IRS) has been proactive in issuing warnings and providing guidance to help protect seniors from these threats. This article will delve into the nature of scams targeting seniors, what to be on guard for, awareness and protection strategies, IRS advice, and steps to take if one falls victim to a scam.

Understanding the Threats – Scammers employ a range of tactics to deceive seniors, often posing as representatives from government agencies, familiar businesses, or charities. The IRS, in its news release IR-2024-164, highlights the rising threat of impersonation scams targeting older adults. These fraudsters use fear and deceit to exploit their victims, often pressuring them into making immediate payments through unconventional methods such as gift cards or wire transfers.

Common Scams Targeting Seniors

• Impersonation of Known Entities: Fraudsters often pose as representatives from government agencies like the IRS, Social Security Administration, or Medicare. By spoofing caller IDs, they can deceive victims into believing they are receiving legitimate communications. These scammers may claim that the victim owes money, is due a refund, or needs to verify personal information.
• Claims of Problems or Prizes: Scammers frequently fabricate urgent scenarios, such as outstanding debts or promises of significant prize winnings. Victims may be falsely informed that they owe the IRS money, are owed a tax refund, need to verify accounts, or must pay fees to claim non-existent lottery winnings.
• Pressure for Immediate Action: These deceitful actors create a sense of urgency, demanding that victims take immediate action without allowing time for reflection. Common tactics include threats of arrest, deportation, license suspension, or computer viruses to coerce quick compliance.
• Specified Payment Methods: To complicate traceability, scammers insist on unconventional payment methods, including cryptocurrency, wire transfers, payment apps, or gift cards. They often require victims to provide sensitive information like gift card numbers.

Awareness and Protection Strategies

Awareness is the first line of defense against scams. Seniors and their caregivers should be educated about the common tactics used by scammers and the red flags to watch for. Tips for Seniors:

• Verify the Source: Always verify the identity of the person or organization contacting you. If you receive a call, email, or text message claiming to be from the IRS or another government agency, do not provide any personal information. Instead, contact the agency directly using a verified phone number or website.
• Be Skeptical of Unsolicited Communications: Be cautious of unsolicited communications, especially those that request personal information or immediate payment. Legitimate organizations will not ask for sensitive information through unsecured channels.
• Do Not Rush: Scammers often create a sense of urgency to pressure victims into making hasty decisions. Take your time to verify the legitimacy of the request and consult with a trusted family member or friend before taking any action.
• Use Secure Payment Methods: Avoid making payments through unconventional methods like gift cards, wire transfers, or cryptocurrency. Legitimate organizations will not request payment using these procedures.

• Monitor Financial Accounts: Regularly monitor your bank and credit card statements for any unauthorized transactions. Report any suspicious activity to your financial institution immediately.

Tips for Caregivers

• Educate and Communicate: Regularly discuss potential scams with the seniors in your care. Ensure they understand the common tactics used by scammers and encourage them to reach out to you if they receive any suspicious communications.
• Set Up Protections: Help seniors set up protections such as fraud alerts on their credit reports and two-factor authentication on their online accounts.
• Monitor Communications: If possible, monitor the mail, phone calls, and emails that the senior receives. This can help identify potential scams before any damage is done.
• Encourage Reporting: Encourage seniors to report any suspicious activity to the appropriate authorities. Reporting scams can help prevent others from falling victim to the same schemes.

IRS Advice and Resources – The IRS has been actively engaged in efforts to protect taxpayers, including seniors, from scams and identity theft. The Security Summit partnership between the IRS, state tax agencies, and the nation’s tax professional community has been working since 2015 to combat these threats. Remember that:

• The IRS will never demand immediate payment via prepaid debit cards, gift cards or wire transfers. Typically, if taxes are owed, the IRS will send a bill by mail first.

• The IRS will never threaten to involve local police or other law enforcement agencies.
• The IRS will never demand payment without allowing opportunities to dispute or appeal.

• The IRS will never request credit, debit or gift card numbers over the phone.

Key IRS Recommendations

• Know the IRS Communication Methods: The IRS will never initiate contact with taxpayers by email, text message, or social media to request personal or financial information. Initial contact is typically made through a mailed letter.
• Questions or Concerns About Your Taxes: Contact your tax professional.
• Report Scams: If you receive a suspicious communication claiming to be from the IRS, report it to the IRS at phishing@irs.gov. You can also report scams to the Federal Trade Commission (FTC) at www.ftc.gov/complaint.
• Protect Personal Information: Be cautious about sharing personal information. The IRS advises taxpayers to use strong passwords, secure their devices, and be wary of phishing attempts.
• Seek Professional Help: If you believe your identity has been compromised, contact this office immediately. The IRS has special provisions for victims of identity theft to protect their tax filings.

What to Do if Scammed – Despite all precautions, scams can still happen. If you or a loved one falls victim to a scam, it’s important to act quickly to minimize the damage. Immediate steps to take:

• Stop Communication: Cease all communication with the scammer immediately. Do not provide any further personal information or make any additional payments.
• Report the Scam: Report the scam to the appropriate authorities. This includes the IRS, the FTC, and your local law enforcement. Reporting the scam can help authorities track down the perpetrators and prevent others from being victimized.
• Contact Financial Institutions: Notify your bank, credit card companies, and any other financial institutions involved. They can help you monitor your accounts for fraudulent activity and take steps to protect your assets.
• Place Fraud Alerts: Place a fraud alert on your credit reports with the major credit bureaus (Equifax, Experian, and TransUnion). This can help prevent further identity theft.
• Review Credit Reports: Obtain and review your credit reports for any unauthorized accounts or activities. You are entitled to a free credit report from each of the major credit bureaus once a year through www.annualcreditreport.com. You may even want to put a freeze on your credit, which will help prevent fraudsters from opening credit accounts in your name or accessing your credit reports. To do so you’ll need to contact the three major consumer credit bureaus. The drawback to doing so is the inconvenience of contacting the credit bureaus again if you need to lift the freeze on your credit card(s).
• Secure Personal Information: Change passwords and security questions on your online accounts. Consider using a password manager to create and store strong, unique passwords.

Long-Term Steps

• Monitor Accounts: Continue to monitor your financial accounts and credit reports regularly for any signs of fraudulent activity.
• Educate Yourself: Stay informed about the latest scams and fraud prevention strategies. The IRS and other organizations regularly update their websites with new information and resources.
• Seek Support: Falling victim to a scam can be emotionally distressing. Seek support from family, friends, or professional counselors if needed.
• Legal Assistance: In some cases, it may be necessary to seek legal assistance to resolve issues related to identity theft or financial fraud.

Scams targeting seniors are a growing concern, but with awareness and proactive measures, older adults can be protected from these threats. By staying informed, verifying communications, and taking swift action, when necessary, seniors and their caregivers can safeguard against fraud and ensure financial security.

Remember, if you or a loved one is ever in doubt about a communication or request, it’s always better to be safe than sorry. Reach out to trusted family members, friends, or professionals for advice and support. Together, we can create a safer environment for our seniors and help them enjoy their golden years without the fear of falling victim to scams.

In the realm of taxes, understanding who is required to pay self-employment tax and who is exempt is crucial for individuals navigating their financial responsibilities. Whereas employees have Social Security and Medicare taxes withheld from wages–often referred to as FICA taxes– individuals who work for themselves are subject to self-employment (SE) tax, which they pay in lieu of the Social Security and Medicare taxes employees pay via payroll withholding. Employees and employers share the employee’s liability, while self-employed individuals pay both the employer and employee liability.

Understanding Self-Employment Tax – Before diving into the specifics of who must pay self-employment tax, it’s essential to understand what it entails. Self-employment tax is governed by the Self-Employment Contributions Act (SECA), under which individuals who earn income directly from their business activities, rather than as employees, are required to contribute to Social Security and Medicare. This tax is calculated as a percentage of net earnings from self-employment.

For 2024, the self-employment tax rate is 15.3%, comprised of 12.4% for Social Security contributions on the first $168,600 of net earnings and 2.9% for Medicare contributions on all net earnings. Unlike employees, who share these tax responsibilities with their employers, self-employed individuals bear the full burden. An additional Medicare tax of 0.9% of net self-employment income applies for those with SE income above the following thresholds: $250,000 married joint, $125,000 married separate and $200,000 all others 

Who is Required to Pay Self-Employment Tax? – Generally the following are subject to self-employment tax:

• Sole Proprietors and Independent Contractors – Individuals operating their businesses or offering services as sole proprietors or independent contractors are required to pay self-employment tax on their net earnings if they exceed $400 in a tax year.
• Partners in a Partnership – Members of a partnership that conducts a trade or business are subject to self-employment tax on their share of the partnership’s income.
• Members of a Limited Liability Company (LLC) – Depending on the election made by the LLC, members may be treated as sole proprietors or partners for tax purposes and thus be required to pay self-employment tax on their share of the LLC’s profits.
• Clerics – A cleric is required to pay self-employment tax on income from services as a minister unless the individual has taken a vow of poverty. The following are examples of common situations related to the self-employment income of clerics:
  • W-2 Income – from the Church is subject to income tax, and self-employment tax. It’s important to note that the church does not withhold FICA taxes for this income.
  • Self-employment Income – Clerics who do not work for a specific church or who receive income for presiding over weddings, funerals, etc., have non-employee income that is taxable and subject to self-employment tax, based on the net profit from the self-employment activity.
  • Schedule C – This is the IRS form on which clerics report their SE income, which can be offset by associated expenses, resulting in the net profit that’s subject to SE taxes.
  • Most clerics receive a Housing (Parsonage) Allowance from the church they work for. To the extent allowed by law, this income is not subject to income tax but is subject to self-employment tax.

Who is Exempt from Paying Self-Employment Tax? – While the scope of self-employment tax is broad, there are specific exemptions and special cases:

• Employees: Individuals who work as employees and receive a W-2 form are not subject to self-employment tax on their wages, as their employers withhold Social Security and Medicare taxes throughout the year that the employer pays over to the government.
• Rental Income: Generally, income derived from renting out property is not subject to self-employment tax unless the individual is engaged in a rental business that provides services for the convenience of tenants.  This generally includes rents paid in crop shares.
• Limited Partners: Limited partners in a partnership may be exempt from self-employment tax on certain income distributions, as their involvement in the business is typically passive, i.e., more in the nature of an investment.
• Certain Business Owners: Owners of corporations, including S corporations, may not be subject to self-employment tax on their share of the corporation’s profits, though they must pay themselves reasonable compensation subject to the FICA employment taxes.
• Commissions Allowed by the Probate Court – Commissions (fees) allowed to nonprofessional fiduciaries (such as an estate executor or trustee) by a probate court under local law generally aren’t considered self-employment earnings. However, if the fees relate to active participation in the operation of the estate’s business, or the management of an estate that required extensive management activities over a long period of time, the fees would be SE income to the extent they represents a special payment for operating the business. 
• Termination Payments of Former Insurance Salespeople – The law provides that net earnings from self-employment don’t include any amounts received from an insurance company for services performed by an individual as an insurance salesperson for the company if certain conditions are met.
• Religious Exemptions – Ministers, Christian Science practitioners, and members of religious orders who have taken a vow of poverty may get an exemption from self-employment tax on their earnings if certain requirements are met.  To get the exemption, Form 4361 must be filed with the IRS.

Retired clergy receiving parsonage or rental allowances are not subject to self-employment tax. 

• Notary Public – The fees for the services of a notary public are exempt from the self-employment tax.
• Nonresident Aliens – Nonresident aliens engaged in a trade or business within the United States may be subject to self-employment tax, with specific exemptions based on tax treaties.
• Miscellaneous Income from an Occasional Act or Transaction – Income from an occasional act or transaction, absent proof of efforts to continue those acts or transactions on a regular basis, isn’t income from self-employment subject to the SE tax.  An example is a nonprofessional fiduciary who manages the estate of a relative or friend.  However, professional fiduciaries are subject to self-employment tax

Special Situations

• Self-employment Tax Deduction – Self-employed individuals can deduct half of their self-employment tax when calculating their adjusted gross income, providing some relief. The purpose of this deduction is to make up for the self-employed person having to pay both sides of the Social Security and Medicare taxes. However, this is not a deduction on the individual’s business form, such as Schedule C. It is deductible whether the individual itemizes their deductions or claims the standard deduction.
• Optional Methods – There are two methods – one for farmers and another for nonfarmers – that can be used when net self-employment earnings are less than $400 and paying SE tax isn’t required.  Use of these methods allows a taxpayer to continue accruing credit toward their Social Security coverage in years when profits are small (or even when there is a loss). Using the optional method may also allow the individual to qualify for the earned income credit and certain other credits, or to receive a larger credit. These individuals are subject to special rules for self-employment tax, with different thresholds and rates applying to their net earnings.

Understanding the intricacies of self-employment tax is vital for anyone earning income outside of traditional employment. While the responsibility to pay rests on many self-employed individuals, exemptions and special cases exist. 

Contact our office with questions regarding self-employment tax and how it may apply in your specific circumstances.