Life Insurance is a very usefull, and efficient tool for Estate Planning!

When executing an Estate Plan, how does one provide for the subsequent, peaceful transfer of equal shares of their assets to their heirs? One of the most efficient, and user freindly tools available to Executors is a “BOLIP”! That stands for “Big Ol’ Life Insurance Policy!” Let’s say the family business is run by one, or several of the children of the founder, how can you allocate their continued ownership and square that with an equal amount to those children not involved, or having no interest in maintaining the family business? Use a “BOLIP” to fund their share of the businesses value in the total inheritance so that they get an equal amount, and the current involved children maintain their interest in, and control of, the family business.

This would work the same for a family summer home, where not all the children can afford to, or even want to be involved with the ongong ownership, maintenance and expense of the property.  A “BOLIP” can be used to augment the value in the house that the disinterested children would be aloocated in an evenly devided estate, while the interested children keep their ownerhsip of the family home, in their family.

Another useful strategy for “BOLIP’s is to offset Estate Taxes. How can one shield their Estate from the maximum  55% estate tax due on those values exceeding the $5 million dollar exemption? Lets say you have a $10 Million dollar estate, of which $5 Million is going to be subject to that tax? Buy a $2.75 Million dollar “BOLIP” on the Prinicple, so that when they pass, the life insurance pays the beneficiaries the amount they need to pay the taxes on the total estate. The ownership of the Policy must be held in an Irrevocable Life Insurance Trust (ILIT) to keep it seperate and apart from the Estate, and thus not also part of the taxable Estate amount.

Life Insurance pays a benefit that is many times greater than the cost of that benefit, and is backed by the full faith and credit of each Life Insurance company.  Most major Life Insurance companies are all highly rated for their financial soundness and stability, and thus, the risk that this benefit will not be paid by them is miniscule. And, some carriers have adopted a strategy that entails a “premium deposit fund”, which allows the policy purchaser the ability to ‘fire and forget’ this element of their estate plan. This “premium deposit fund” is a seperate account that is linked to the Policy, from which the premium is drawn on a regular basis. Thus the policy wil not require any maintenance and attention, and any remnant in the premium deposit fund will also revert to the beneficiaries. You need to buy a permanent policy for this to work as Term policies end, and then the cost of insurance and/or health issues may make the buyer uninsurable.

For information contact us on our website: http://www.farmersagent.com/ctrowbridge

 

 

 

 

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Homeowners Insurance Loopholes and Limitations

Many Insurance companies would have you believe that whatever happens they will take care of your loss (witness the obscure space junk falling in the University of Farmers commercial), but there are several (more common) scenarios you need to be aware of where your Homeowners insurance may not protect you.

If your property is vacant (generally for more than 30 days) there may be some difficulty getting coverage for vandalism, or arson. Homeowners and Landlord policies are designed and priced with the assumption that there is someone living in the property and exercising at least some degree of care for the property.

If you have an employee who works inside the residence, and they are injured in the course of their duties (childcare, live in maids, etc.) their workers comp. protection may not be covered by your Liability unless noted in the policy with an endorsement. Likewise, Gardeners or property managers! The extension of your Liability coverage to Workers Comp coverage is aimed at employees who are only there temporarily, like house painters etc…though we hope you will only hire fully insured workers!

Homeowners coverage also protects your personal property away from home, but only a percentage of what your coverage is on your premises. On the flip side, it could replace your boat, jet ski, and their trailers while parked on your property, but will not cover them away from the property.

If you have valuable jewelry, silverware, fine arts, or firearms stolen from the home, Homeowners policies generally have sub-limits for theft as these types of articles can “get up and walk away”. Check your policy language, or better yet call your agent, to see if you need a Valuable Articles Floater to make sure these important valuables are truly protected from any loss.

If you own vacant land you may have liability exposure if someone trespasses on it and hurts themselves. Your Homeowners policy can extend liability coverage to these locations but they must be listed in the policy.

And finally, Homeowners does not protect you from Flood or Earthquake hazards. You need Specific Flood and Earthquake policies to protect you from those perils. While water damages are the most common of homeowner claims, the only damages generally covered by your Homeowners is from that of a pipe bursting. If the Carriers adjuster finds evidence that the loss occurred after evidence of a slow leak they may deny the claim. Remember, your Homeowners insurance protects you from a “sudden, catastrophic” loss, and should not be used to try to recover damages from what may have been a loss resulting from a lack of maintenance or repair.

For information contact us on our website: http://www.farmersagent.com/ctrowbridge

 

 

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Red Flags of Moving Fraud

 
Rogue movers typically work like this: Without ever visiting your home or seeing the goods you want moved, they give a low-ball estimate over the phone or Internet. Once your goods are on their truck, they demand more money before they’ll deliver or unload them. They hold your goods hostage and force you to pay more—sometimes much more than you thought you had agreed to—if you want your possessions back.

Your best defense is to recognize a rogue mover before they have your goods. Here are the “red flags” to look out for:

No inspection

  • The mover doesn’t offer or agree to an on-site inspection of your household goods and gives an estimate over the phone or Internet—sight-unseen. These estimates often sound too good-to-be-true. They usually are.

Payment first

  • The moving company demands cash or a large deposit before the move.

Your Rights and Responsibilities When You Move

No local address, license or insurance

  • The company’s Web site has no local address and no information about licensing or insurance.

Mover claims

  • The mover claims all goods are covered by their insurance.

No company name

  • When you call the mover, the telephone is answered with a generic “Movers” or “Moving company,” rather than the company’s name.

Office conditions

  • Offices and warehouse are in poor condition or nonexistent.

Generic Rental truck

  • On moving day, a rental truck arrives rather than a company-owned and marked fleet truck.

If you know someone in the business that you have used, and trust, that is someone worth passing along. I know personally Bob Landsinger, of Vector Atlas Moving, In San Francisco, and can only say good things about him! if you live in the bay area give him a call, 415-822-2377.

This info (except for that last part about Bob) was copied from a USA.gov posting on 5/16/13

 

 

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Thieves Favorite Cars to Steal

According to the Federal Bureau of Investigation, an automobile is stolen in the United States approximately every 26 seconds. One in 200 people will be a victim of automobile theft with higher odds in urban areas. Depending on the make and model of your car, the likelihood of having your car stolen can increase substantially.
(1) 1995 Honda Civic. Unfortunately, for owners of this automobile, it has the highest incidence of theft in the past decade.
(2) 1991 Honda Accord
(3) 1989 Toyota Camry
(4) 1997 Ford F-150- The 1997 Ford F-150 has the highest incidence of theft over every other pick-up truck combined.
(5) 1994 Chevrolet 1500
(6) 1994 Acura Integra
(7) 2004 Dodge Ram Pickup
(8) 1994 Nissan Sentra
(9) 1988 Toyota Pickup
(10) 2007 Toyota Corolla
The National Insurance Crime Bureau (NICB) has recognized that although auto theft is declining, the above makes and model are continuously on the “most stolen” lists throughout the years. The obvious trend of the list is a mixture of makes and years. The reason for the variety is attributed to the likelihood that these automobiles are the “easiest” to steal without after-market anti-theft devices, and that the automobiles listed are stolen for the sole purpose of parts.
To prevent your automobile from theft, it is suggested to make your car unattractive to thieves. Install anti-theft devices, lock your doors, tint your windows and always park in well-lit parking lots. Never leave your automobile running and do not make the amateur mistake of using a magnetic key-holder in the undercarriage. Thieves always look for spare keys.
Copied Liberally from Farmers suggested Blog contributions….For information contact us on our website: http://www.farmersagent.com/ctrowbridge
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What You Should Know Before Buying Life Insurance

 

Three in 10 American households are uninsured and half say they need more life insurance, according to the LIFE Foundation, a nonprofit organization that works to educate people about the importance insurance in protecting their financial futures.

Many people realize that life insurance is an important way to provide for their families, but buying life insurance can seem daunting. How do you know if you’re picking the best coverage for you and your family?

The American Council of Life Insurers offers the following tips to help you pick out the best plan:

  • Decide if you need permanent or term life insurance. Permanent policies will provide money to your family no matter when you die. Term policies will pay only if you die during a specific period of time.
  • When you’re trying to decide between life insurance companies, ask family and friends for recommendations. You can also meet with an insurance agent to talk through your options.
  • Ask for the outlines of several plans so you can compare the features of the various options you’re considering.
  • Always answer the questions on your application truthfully.
  • Once you select a plan, store the policy with your other important financial documents, but not in a safe deposit box. Upon death, boxes are sometimes sealed temporarily by the bank, which could delay your family’s access to the coverage.
  • Review and update your policy from time to time, especially after major life events like marriages or children being born.

Copied from USA.gov email. For a free quote contact us on our website: http://www.farmersagent.com/ctrowbridge

 

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Where to Go During an Earthquake?

Remember that stuff about hiding under a table or standing in a doorway? Well, forget it! This is a real eye opener. It could save your life someday.

EXTRACT FROM DOUG COPP’S ARTICLE ON ‘THE TRIANGLE OF LIFE’

My name is Doug Copp. I am the Rescue Chief and Disaster Manager of the American Rescue Team International (ARTI ), the world’s most experienced rescue team. The information in this article will save lives in an earthquake.

I have crawled inside 875 collapsed buildings, wor ked with rescue teams from 60 countries, founded rescue teams in several countries, and I am a member of many rescue teams from many countries. I was the United Nations expert in Disaster Mitigation for two years, and have worked at every major disaster in the world since 1985, except for simultaneous disasters.

The first building I ever crawled inside of was a school in Mexico City during the 1985 earthquake. Every child was under its desk. Every child was crushed to the thickness of their bones. They could have survived by lying down next to their desks in the aisles. It was obscene — unnecessary.

Simply stated, when buildings collapse, the weight of the ceilings falling upon the objects or furniture inside crushes these objects, leaving a space or void next to them – NOT under them. This space is what I call the ‘triangle of life’. The larger the ob ject, the stronger, the less it will compact. The less the object compacts, the larger the void, the greater the probability that the person who is using this void for safety will not be injured. The next time you watch collapsed buildings, on television, count the ‘triangles’ you see formed. They are everywhere. It is the most common shape, you will see, in a collapsed building.

TIPS FOR EARTHQUAKE SAFETY

1) Most e veryone who simply ‘ducks and covers’ when building collapse are crushed to death. People who get under objects, like desks or cars, are crushed.

2) Cats, dogs and babies often naturally curl up in the fetal position. You should too in an earthquake. It is a natural safety/survival instinct. You can survive in a smaller void. Get next to an object, next to a sofa, next to a bed, next to a large bulky object that will compress slightly but leave a void next to it.

3) Wooden buildings are the safest type of construction to be in during an earthquake. Wood is flexible and moves with the force of the earthquake. If the wooden building does collapse, large survival voids are created. Also, the wooden building has less concentrated, crushing weight. Brick buildings will break into i ndividual bricks. Bricks will cause many injuries but less squashed bodies than concrete slabs.

4) If you are in bed during the night and an earthquake occurs, simply roll off the bed. A safe void will exist around the bed. Hotels can achieve a much greater survival rate in earthquakes, simply by posting a sign on the back of the door of every room telling occupants to lie down on the floor, next to the bottom of the bed during an earthquake.

5) If an earthquake happens and you cannot easily escape by getting out the door or window, then lie down and curl up in the fetal position next to a sofa, or large chair.

6) Most everyone who gets under a doorway when buildings collapse i s killed. How? If you stand under a doorway and the doorjamb falls forward or backward you will be crushed by the ceiling above. If the door jam falls sideways you will be cut in half by the doorway. In either case, you will be killed!

7) Never go to the stairs. The stairs have a different ‘moment of frequency’ (they swing separately from the main part of the building). The stairs and remainder of the building continuously bump into each other until structural failure of the stairs takes place. The people who get on stairs before they fail are chopped up by the stair treads – horribly mutilated. Even if the building doesn’t collapse, stay away from the stairs. The stairs are a likely part of the building to be damaged. Even if the stairs are not collapsed by the earthquake, they may collapse later when overloaded by fleeing people. They should always be checked for safety, ev en when the rest of the building is not damaged.

8) Get near the outer walls of buildings or outside of them if possible – It is much better to be near the outside of the building rather than the interior. The farther inside you are from the outside perimeter of the building the greater the probability that your escape route will be blocked.

9) People inside of their vehicles are crushed when the road above falls in an earthquake and crushes their vehicles; which is exactly what happened with the slabs between the decks of the Nimitz Free way. The victims of the San Francisco earthquake all stayed inside of their vehicles. They were all killed. They could have easily survived by getting out and sitting or lying next to their vehicles. Everyone killed would have survived if they had been able to get out of their cars and sit or lie next to them. All the crushed cars had voids 3 feet high next to them, except for the cars that had columns fall directly across them.

10) I discovered, while crawling inside of collapsed newspaper offices and other offices with a lot of paper, that paper does not compact. Large voids are found surrounding stacks of paper.

Spread the word and save someone’s life…

In 1996 we made a film, which proved my survival methodology to be correct. The Turkish Federal Government, City of Istanbul, University of Istanbul Case Productions and ARTI cooperated to film this practical, scientific test. We collapsed a school and a home with 20 mannequins inside. Ten mannequins did ‘duck and cover,’ and ten mannequins I used in my ‘triangle of life’ survival method. After the simulated earthquake collapse we crawled through the rubble and entered the building to film and document the results. The film, in which I practiced my survival techniques under directly observable, scientific conditions , relevant to building collapse, showed there would have been zero percent survival for those doing duck and cover.

There would likely have been 100 percent survivability for people using my m ethod of the ‘triangle of life.’ This film has been seen by millions of viewers on television in Turkey and the rest of Europe, and it was seen in the USA , Canada and Latin America on the TV program Real TV.

Subject: Save your life with “The Triangle of Life”

“Triangle of Life”:

Without listening or reading, simply by looking at the following self-explanatory photos, you can learn more than in a thousand words about how to protect yourself during a major earthquake…

If you are inside a vehicle, come out and sit or lie down next to it. If something falls on the vehicle, it will leave an empty space along the sides.

For information contact us on our website: http://www.farmersagent.com/ctrowbridge

 

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An innovative way to get Life Insurance!

Back when Neil Armstrong and his fellow Apollo Astronauts were getting ready for their moon missions the cost of Life insurance on them would have been prohibitive. They only made $17,000 a year back then, and a Life insurance policy would have run them about $50,000 a year, or $300,000 in today’s dollars!

So what they did was bank on their place in history! To insure they did not catch any bugs before their historical mission they were quarantined. So about a month before they were set to go to the moon, Neil Armstrong, Michael Collins, and Buzz Aldrin were locked into a Plexiglas room together and got busy providing for their families the only way they could — they signed hundreds of autographs.

In what would become a common practice, the guys signed their names on envelopes emblazoned with various space-related images. The ‘covers’ would, of course, become intensely valuable should the trio perish on the mission. They’re now often referred to as ” Apollo Insurance Covers.”

And to ensure the covers would hold maximum value, the crew put stamps on them, and sent them in a package to a friend, who dumped them all in the mail so they would be postmarked July 16, 1969 — the day of the mission’s success — or its failure. Fortunately, the trip went off without a hitch and all three men went on to live long, healthy lives and all remained alive until Neil Armstrong’s death a few days ago. The covers are still around, and not too hard to find. In 2011, Collectors Weekly pegged their average value at around $5,000.

While this may be a clever example of American ingenuity and resourcefulness, if you can’t bank on your autographs value, you may want to consider purchasing a Life insurance policy to protect your families financial security? And, a fully funded permanent policy will guarantee a benefit for your loved ones! Call your insurance agent today, and get this taken care of.

Liberally copied from Business Insider, Inc. 2012 by Corrin Trowbridge, Trowbridge Insurance. If you would like a quote for Life Insurance or any of your Insurance needs contact us on our website: http://www.farmersagent.com/ctrowbridge

 

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Beneficiary Designations: Do the Right Thing

You generally need a will to ensure that certain assets in your estate will be distributed according to your wishes. Without a will, a court may make that decision, and there’s a good chance the outcome may not be what you intended.However, not all assets pass through your will. Some provide that you may designate a beneficiary to receive the assets when you die.

Naming Names

Make sure your beneficiary designations are up to date on your:

  • Retirement plan account. When you joined your employer’s 401(k) or other retirement plan, you named someone to receive the account balance at your death. If you’re married, you may have been required to name your surviving spouse unless your spouse signed a waiver allowing you to name someone else. Check all other employer-provided benefit plans, as each may have a separate beneficiary designation.
  • Life insurance. Whether you own the policy yourself or are covered under a group policy offered by your employer, you generally will be able to fill out a beneficiary designation form naming someone to receive the policy’s proceeds upon your death.
  • Individual retirement account (IRA). You generally are not required to name your spouse as beneficiary of a traditional or Roth IRA

A Little Less Common

Beneficiary designations also may play a role in passing along assets other than those mentioned above. Look into your ability to designate a beneficiary if you’re entitled to any of the following benefits.

  • Stock options. Your employer’s plan may allow you to designate a beneficiary to exercise your options within a certain time after your death.
  • Employee stock purchase plan. You may be able to designate a beneficiary for any company stock you bought through automatic payroll deductions.
  • Deferred compensation plan. If you are a participant in the Farmers Agency Force Deferred Compensation Plan you can, and should, designate a beneficiary to receive these benefits upon your death.

Beneficiary designation assets are “non-probate” assets and, therefore, are generally not governed by your will. For that reason, you should take special care to review your beneficiary designations when there are any changes in your personal circumstances. Births, deaths, divorce, or remarriage are all events that warrant another look.

Copied from Farmers Benefits: 2012 MullinTBG Advisors. All Rights Reserved.

For information contact us on our website: http://www.farmersagent.com/ctrowbridge

 

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3 Little-Known Metrics That Can Help Optimize Your Facebook Page

 

By Amy Porterfield|July 9, 2012

3 Little Known Metrics That Can Help Optimize Your Facebook Page

Ever wonder why a particular Facebook post seems to get a lot of “likes” and “shares” one day, but with the next post, there’s little to no fan interest? A lot of business owners get frustrated because they don’t have the answer to why something works.

Facebook has the answer — and so should you. Facebook happens to be a powerful repository of data, yet few business owners bother to use this information, either because they don’t know how to find it or they don’t want to take time to analyze it.

What they don’t realize is that Facebook’s Insights dashboard, which measures your page’s user data, can be quite easy to manage once you become acquainted with a few key metrics. Here’s a look at three areas in Insights that most people don’t know exist and how to use them effectively:

1. Track “engaged users” to optimize post types.
Don’t guess which posts your fans will respond to. Instead, measure which ones are already popular.

Visit your Insights dashboard, where you can click on the tool icon under your Timeline cover photo and select View Insights in the dropdown menu. Then scroll down until you see a chart of page posts. Next to each post are several columns, including the number of “engaged users,” which measures how many of them clicked on a particular post.

An example from my own Insights, showing engagement metrics for each of my Facebook posts

Related: Facebook’s Marketing Tools You Might Not Know About

Once you check out the metrics, look for similarities among your top posts and less popular posts. Make note of what worked and what didn’t. For example:

  • Did you ask a compelling question? Was it short, long, yes/no?
  • Which calls to action did you use (like this, click here, watch, etc.)?
  • Did you include an image or short video? (I got over 1,500 engaged users on a single short video, but less than half that number on other posts.)
  • Are the posts long or short? Entertaining or informative?

2. Monitor incoming traffic from external referrers. 
For a Facebook page to gain traction, it needs visitors. That sounds obvious, but many of us forget to drive traffic to Facebook, not just from Facebook to our website.

To find out where your visitors are coming from, go to the Insights dashboard, click on Reach and scroll down to find “external referrers” at the bottom of the page. You’ll see a list of websites and the number of users who arrived from each. Your website and search engines should be near the top of that list.

If external traffic is low, try the following:

  • Optimize for Google. Fill out your profile completely, especially the About section, using keyword-rich information to help Google users find you and the service, product or niche you represent.
  • Drive leads to Facebook. Guest posts, webinars, teleconferences, interviews and your own blog are all great places to promote your Facebook page. For example, whenever I do a webinar, I invite people to Facebook to talk about it and ask questions—giving me valuable feedback, higher engagement and often a few new fans, too.
  • Include social icons and share buttons on your website or blog. Make it easy for people on your website to interact with you on Facebook.

Related: 3 Ways to Supercharge Fan Engagement on Facebook

3. Pay attention to your “talking about this” score.
“Talking about this” is a measure of how many people over the past seven days engaged with your page in any way — tagging it, clicking “like,” making a comment or sharing a post. It’s a high-level view of your success on Facebook and can be critical to increase the ratio of “talking about this” to total “likes.”

One good reason is that “talking about this” is a public metric. People will see it next to the number of “likes” on your page and know how connected your brand is with its fans. Five or 10 percent week over week is a good target to start with, but the average is much lower than that — closer to 2 percent — for most businesses.

To see details about your number, click Talking About This in the main Insights dashboard. Here, you can access the number’s change from week to week, demographic information about users, and even more interesting, something called “viral reach.”

Talking About This in the main Insights dashboard

Viral reach is a measure of how many unique people saw a story published by a friend about your page. A story could be a new “like,” comment or share. On Facebook, the more people who talk about a post, the more feeds it reaches — which is why engagement is so crucial.

If you want to raise your “talking about this” score, just ask your fans to share an event with friends. Ask them to click “like” on a video. If you’re using tip No. 1 to improve your posts, don’t forget to tell fans how to show their approval using clear, quick calls to action. Simple, but it works.

 

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Top 10 Critical Financial Tips During Divorce

Having come from a long line of divorced couples, and determined to not have it happen in my marrage, none the less, it happens. Here are some simple, but important, tips that can help you organize your finances before and after the dissolution of your marriage.

1. Devise a New Budget

With your household income taking a hit, you need to sit down and make sure you can cover your monthly expenses. In addition to ensuring you live within your new means, it’s important to establish a cash emergency fund. Expenses for attorneys and other costs can mount. And don’t forget to include savings for retirement in any plan you devise.

2. Monitor Your Credit Report

Before the divorce is complete, monitor your credit rating to make sure you maintain a good rating. Remember that even debts normally paid by your spouse can reflect on your credit score

3. Close Joint Accounts

Make sure that all joint credit cards, bank accounts and other shared accounts are closed, paid off or put in one person’s name or the other. Use your credit report to make sure you don’t forget any accounts. This will help protect your credit score from delinquent payments on the part of your former spouse. 

4. Open Accounts in Your Own Name

After you close accounts that carry the names of both you and your spouse, you’ll want to establish credit on your own. Apply for credit cards and open bank accounts in your own name. Be sure to use a different bank than you used for the joint accounts.

5. Estimate Your Worth

Make a list of all the personal property you and your spouse have accrued. Estimate its worth. If you own a home, consult a real-estate agent to determine its market value. To further ease the divorce process, list the items that you “must” have in any settlement. As difficult as it might be, try to be fair. 

6. Assess Liabilities

Once you have a list of your assets, you need to consider all your liabilities. That would include a mortgage and any other loans, credit card and other debts.

7. Update Beneficiaries

It might be easy to forget all the places your ex-spouse has been named as your beneficiary. Among the places to make a change are retirement accounts and insurance policies (don’t forget that policy you get as part of your employee benefits package). Remember to change your will and any other legal documents, such as a medical proxy.

8. Watch Those Taxes

Any divorce settlement can impact your tax situation. Make sure you are aware of how you will be affected so you don’t receive any April surprises from the IRS.

9. Insurance Needs

Besides health insurance, you’ll need to make sure other needs are met. Many times, one partner is more aware of the property, casualty, auto and other types of insurance carried by a family. It’s important you have enough insurance of all types to protect you and your children.

10. Settle If You Can

Divorce battles can be long, drawn-out affairs that can leave emotional scars on you and your children. If you can, agree to a division of property, alimony, child support and visitation rights without airing your grievances in court. Besides the emotional savings, you’ll spend a lot less money on the split.

Copied from Dan Berman, AdvisorOne   June 27, 2012

Posted in “Protecting your Family’s Financial Future” | Leave a comment