Great Ways To Use Your
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Financial Preparation
Save and Invest If you donʼt need your coronavirus stimulus check to cover basic living expenses, one of the wisest things to do is saving it for the future. Where should you invest it, though? At times of uncer-tainty, many people may be wondering the smartest plac-es to put their extra money, something there isnʼt a clear answer for because every individual is different. It depends on your goals, your risk tolerance and the time-line youʼre saving for. Talk to a qualified financial planner or investment advisor in your area for personalized, expert advice. RETIREMENT For many Americans, the dream of a financially
secure retirement is worth saving for. With the stock market well off its all-time peaks, now may be an ideal time to invest for future gains — if youʼre willing to endure some potential for market volatility in the short term. While no one can predict the future precisely, an expe-rienced financial advisor can walk you through your options, including the poten-tial risks and rewards. EMERGENCY FUND If you donʼt already have an emergency fund in place, now is the perfect time. Uncertainty
feels much better when you have a pile of savings in the bank. Consider using the stimulus money to start or grow your emergency savings to help cover the things that are impossible to predict in life. COLLEGE Another possibility, if you have children who hope to receive a college education some day, is to save for their future schooling. The most common way to do that is through a 529 plan, named for Section 529 of the Internal Revenue Code.
These plans offer tax advantages that encourage savings. According to Investor.gov, there are two types of 529 plans: prepaid tuition plans and education savings plan. All 50 states offer at least one type of 529 plan, so look into the options available in your area. PAY OFF DEBT According to Northwestern Mutualʼs most recent Planning & Progress Study, which was conducted last year, adults in the United States said they have an aver-age of $29,800 in personal debt, not counting their mort-
gages. The study also revealed a disappointing figure: 15 per-cent of respondents expected to be in debt for the rest of their lives. The coronavirus stimulus check, however, gives Americans an opportunity to start changing that pattern. If you donʼt need it for ordinary bills, you could use it to pay down your debt load. Typically there are two approaches to reducing debts.One is to pay them off based on the balance, from the smallest to the largest. This has an emo-
tional advan-tage, letting you get early wins and clearly see the progress as your list of debtors gets short-er over time. The other is to pay the debts off based on interest rates, from highest to lowest, which has a mathematical advantage. If you pay off your high-interest-rate debts first, youʼll save slightly more money on interest payments. Either way, taking steps to get on solid financial footing is a smart way to put extra money to use.
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Automotive
Buy A Car Buying a vehicle that is reliable, affordable and a good fit for your lifestyle is a smart way to put your stimulus check to good use. Here are some things to think about if youʼre wanting to use your stimulus money to buy a car, truck or SUV. LATEST TECHNOLOGY Todayʼs newest cars have features that make them safer and more enjoyable to drive than ever before. Theyʼre also more reliable, with the difference between the “best” and “worst” new vehicles narrower than in the past. While the overall refinement and features seem to get better with each passing year, itʼs the technology that really sets todayʼs best vehicles apart from the others. Todayʼs automotive tech falls into three broad
catego-ries. First, active safety features use sensors, warnings and intervention to help the driver avoid accidents. Many of the new cars for sale today offer blind-spot sensors, automatic braking and cameras that help when parking. Second are features that assist the driver. Itʼs becoming much more common to see affordable cars that come close to driving themselves, at least for short periods of time on well-marked roads. Semi-autonomous capability such as lane following and adaptive cruise control making long trips safer and more comfort-able in todayʼs cars. Third are the digital
enter-tainment features. The best new cars are designed to work in conjunction with your smartphone, including offer-ing interfaces with Appleʼs iPhone and Googleʼs Android operating system that let you access your phoneʼs functions more safely using the carʼs digital screen and controls. With Apple CarPlay and Android Auto, the most popu-lar interfaces in modern vehi-cles, your phone and your car work together seamlessly. CONSIDER A CROSSOVER There are plenty of good choices for vehicles today, especially in the most popular segment of all: crossovers.
These family-friendly vehi-cles look like SUVs but are built more like traditional cars. They offer the handsome looks, visibility, spaciousness and capability of a traditional SUV without the downsides. Their car-like construction means they handle better on the road and get better fuel economy than their truckbased SUV ancestors, which is why theyʼre the most popular new vehicles for sale today. If you havenʼt driven a crossover before, check them out. You might see why so many buyers are switching from traditional sedans to these practical and stylish alternatives. PAY CASH If youʼre in a position to
do so, the most affordable way to drive is by paying cash for a good used car. Itʼs the move many financial advisors rec-ommend for a variety of rea-sons. At the top of the list are two big benefits: no monthly pay-ments to worry about, and less depreciation than new cars. While you wonʼt get that new-car smell, you will get peace of mind knowing the car belongs entirely to you, not a lender. SHOP CAREFULLY Used cars donʼt come with-out risks, though. You can minimize the risks by shop-ping at dealers with a great reputation and getting a pre-purchase inspection performed by an independent mechanic.
Take the time to research the reliability ratings of differ-ent vehicles before deciding which model to purchase. Some brands and model years are more reliable than others, so look for online sources that have unbiased data about a car or truckʼs dependability. One way to check the histo-ry of a vehicle is by obtaining the VIN and using an online service to uncover significant incidents it may have endured. Many vehicle histo-ry reports will disclose any accidents it was involved in, substantial repairs or devas-tating experiences like flood-ing. With some careful shop-ping, you can find a reliable car at a fair price.
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Real Estate
Make A Move If youʼve been thinking about moving to a new house, your stimulus check could help you turn that dream into reality. With many Americans spending time isolated at home, they have plenty of time to think about where they live and whether they might be happier in a differ-ent situation. There is a long list of rea-sons moving might make sense, such as wanting a more peaceful lifestyle in the coun-try, a shorter commute in the city, or a more affordable home to give peace of mind in stressful times. IDEAL TIMING Whatever your real-estate goals, thereʼs no better time than now for making a move if youʼre in a good position to do so. More houses will likely
be coming on the market as the economy slows and changes, which means greater selec-tion for buyers and potential-ly a softening in prices after years of record gains. Interest rates also are unusually low right now. If youʼve got decent credit, you can qualify for spectacularly low mortgage rates by histori-cal standards, making your new home even more affordable. STOP RENTING If youʼre currently a renter, buying a home could let you pay yourself instead of a land-lord. Home ownership can be a good way to start building
up equity as you own property instead of just leasing space. Depending on your situa-tion, you may be able to buy a home with very little money down. But the more youʼre able to pay now, the more benefits youʼll get, often including lower principal pay-ments, no private mortgage insurance and lower interest rates. SIMPLIFYING Another trend is for people to use real estate to simplify their life. This is epitomized by the “tiny house” move-ment, but thatʼs not the only way a new house can make your life simpler.
Whether you want to down-size in space, downsize in price, or upsize in natural beauty by moving to a more rural home, a move could give you peace of mind that is especially valuable at times like the current pandemic. BUY A RENTAL Even if youʼre happy where you currently live, the same combination of factors that makes now a good time to consider moving — low inter-est rates and a potentially bet-ter selection of housing inventory — also makes it a good time to buy investment properties.
Using your stimulus check from this short-term crisis as an incentive to invest for the long term could turn out to be a wise move. REMOTE HELP Many real estate agents arenʼt stopping their jobs during this pandemic. They are still working from home, where possible, to keep up their important task of connecting buyers with sellers. Home listings have added more digital content for years, ranging from virtual tours and video tours to extensive still photography. The coronavirus outbreak has
only underlined the point that online shop-ping is important, and the best agents know this. Theyʼve already gathered the informa-tion to help you shop for a home, or list your home for sale, while taking precautions to minimize the risk of spreading viruses. The closing process, too, is becoming more digital. Many home transactions are con-tinuing to take place either through digital signatures on documents or by keeping people isolated while still signing papers in person.
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Home Improvement
Make A Change
5 Outdoor Projects That Add Value To Your Home Exterior renovations can enhance the appearance of a property and make it more enjoyable for homeowners. Certain renovations have the potential to add value to a home, while others may do the opposite. Learning which one have the largest return on investment can help homeowners select features that will have the most positive impact. Curb appeal goes a long way toward attracting potential buyers. Accord-
ing to the National Association of Realtors, first impressions of a property have a strong influence on buyers. Landscaping and external features can do much to influence such impressions. LAWN CARE PROGRAM Investing in a lawn care program that consists of fertilizer and weed control application and can be transferred over to a subsequent home owner is an attractive feature. NAR says such a care program
can recover $1,000 in value of the $330 average cost, or a 303 percent ROI. LOW-MAINTENANCE LIFESTYLE When choosing materials for projects, those that offer low-maintenance benefits can be preferential. These include lowmaintenance patio materials, composite decking, vinyl fencing, and inorganic mulched beds. FIRE PIT A fire pit can be used
for much of the year. In the spring and summer, the firepit is a great place to congregate to roast marshmallows or sip wine and gaze into the fire. In the fall, the fire pit can make for a cozy retreat. A fire pit that has a gas burner is low-maintenance, and the National Association of Landscape Professionals says that most can recoup about $4,000 of their $6,000 average price tag. SOFTSCAPING Hardscaping refers to
structures like outdoor kitchens or decks. Softscaping involves the living elements of the landscape. Hiring a landscape designer to install trees, shrubs, natural edging, and rock elements can do wonders toward improving the look and value of a home. POOL OR WATER FEATURE In certain markets, particularly hot climates, a pool or another water feature is a must-have. However, in other areas where
outdoor time is limited, a pool or water feature can actually lower the value of a home. Speaking with a real estate professional can give homeowners an idea of how a pool will fare in a given neighborhood. Outdoor improvements can improve the marketability of a home, as well as enhance its appearance and function.
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Home Improvement
Freshen Up
Exterior Renovations That Can Improve Home Value Renovating a home to improve its value can be a smart investment. Interior improvements, such as updating kitchens and baths, offer good return on investment, but there are plenty of exterior renovations that can add value to a home and give it that coveted “wow” factor. LANDSCAPING Abundant and wellplanned landscaping can instantly boost curb appeal. According to the landscaping company Lawn Starter, 71 percent of prospective home buy-
ers say a homeʼs curb appeal is an important factor in their buying decisions. As buyers use the internet to look for their dream homes, thereʼs no denying a beautifully landscaped, nicely photographed property can entice buyers to click and read more about a house. ADDRESS INSECTS AND MINOR REPAIRS Improving home value may come down to fixing areas of the home that can negatively affect its appeal to buyers. Hire an
inspector to look at key components of the house and recommend what needs to be fixed. This way it is discovered before home buyers come in and do their own inspections. Termite infestations, deteriorating roofs and hidden water leaks are some things that might need fixing. IMPROVE THE ENTRYWAY The front door is the focal point of a homeʼs exterior. Invest in a new door or paint it a striking color to add appeal. Remodeling magazineʼs
“Cost vs. Value Report 2019” indicates changing an entry door to a steel replacement can offer 74.9 percent ROI. Such a door provides visual appeal and added security — things buyers look for. In addition to the front door, make sure that the entryway has a level walkway, steps that are in good repair, accents that are free from rust or tarnish, and decorative plants. OUTDOOR LIGHTING Outdoor lighting can add to the ambiance of a property and serve as a
security feature. Utilize different lights, such as a bright light by the entry, uplighting in trees and shrubs for drama, a lightlined path to the door to improve visibility, and motion-detection lights to improve the security of the property. REPAINT OR RESIDE THE EXTERIOR A fresh coat of paint or new (or cleaned) siding can instantly give homes a facelift. Neutral, warm and inviting colors tend to have the widest appeal. Adding manufactured stone veneer to the home
can offer a 94.9 percent ROI, says Remodeling. And after doing the front door and siding, investing in a garage door replacement offers the highest ROI of all exterior projects listed on the “Cost vs. Value Report 2019.” This improvement returns 97.5 percent when selling. Knowing which improvements add value to a home can help homeowners tailor their efforts to those that are most financially beneficial.
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Risk Reduction
Shop For Insurance Having the right insurance policies in place can give you peace of mind. Thatʼs especially important in times of uncertainty like this. If you do a careful job shop-ping for insurance policies right now, you have an added benefit: the ability to pay for the policy in full using your stimulus check, something that might save even more money. COVERAGE AND PRICES Comparing different insur-ance policies can help you save money or find coverage that will better protect you from risk, something thatʼs a good idea all the time but especially wise right now. Many people are looking at making the most of their bud-get as the econ-
omy takes a temporary dip during the pandemic shutdown. The longer itʼs been since youʼve shopped for policies for homeownerʼs insurance, life insurance and auto insur-ance, for example, the more likely you are to find good deals on coverage. You may be surprised at how much you can save — or how much bet-ter coverage you can get — if you shop carefully. LOOK AT DETAILS When shopping for insur-ance, take a look at the fine details and figures for each policy. If youʼre in the begin-ning
of this process, insurance representatives should act more like teachers instead of salespeople.
mind. While reviewing your options, make sure you are comparing similar policies. If a premium
Your choices may be com-plicated, with a range of pric-ing options, deductibles and exclusions. A good company will give you choices, explain them clearly and let you make up your own
seems unusually low, it might have a higher deductible or more limitations. NOT JUST PRICE Customer service always plays a key role in determin-ing which insur-
ance company youʼll want to work with. Some have better reputations than others. Each company has a differ-ent customer service philoso-phy. Some prefer to use a local representative to com-municate with clients. Others will discuss policies through their website or a 24-hour phone number. Many insurance companies, however, use a combina-tion of these methods. They might give you 24-hour access to national representatives along with a local advisor.
ASK ABOUT DISCOUNTS Many insurance policies offer discounts if you pay for a full yearʼs premium in advance, something that could be a smart move to ease your expenses in the next 12 months. If you use your government stimulus check to pay for the coming yearʼs insurance in advance, you wonʼt have that monthly or quarterly bill to worry about. You might also get an even bigger price break for paying up front in a lump sum, giving you two ways to save down the road.
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Charity
Make A Donation If you始ve been fortunate enough to have a predictable income and healthy cushion of savings at this point, you should consider donating your stimulus funds to charity. Many non-profit organiza-tions are struggling right now from a one-two punch: increased needs from people out of work, plus decreased donations coming in to help them. Your gift could be extremely helpful at a critical time when it would do the most good for people in need. LOOK LOCAL Putting your donation to work in the local community can be a rewarding way to make a difference.
If you vol-unteer with an organization, have a close connection to one particular non-profit or have seen the help a specific organization has provided in your community, think about giving them some financial support. When you keep your money close to home, you can often see the tangible benefits that come from it. From feeding hungry chil-dren to supporting the arts, you始ll be making your com-munity stronger at a
time when the help is greatly appreciated. DONATE ONLINE Both local and national charity organizations are increasingly allowing online options for making dona-tions. You can make a onetime gift with your stimulus pay-ment or, if you始re feeling extra generous, could consider set-ting up an ongoing monthly payment as a regular contribution to your favorite non-profit.
By donating digitally, you can maintain social distancing while exercising your social conscience. CHECK THEM OUT Another thing you can do online is check into the back-ground and ratings of many non-profits to make sure your money is going to a reputable place. There are several websites that score non-profits on how effective and wise with money they are. Each ranking site uses its
own criteria to deter-mine which charities best manage money, so look into their guidelines to see exactly what they始re measuring. The two most popular charity-ranking websites are Charity Navigator and CharityWatch, both of which offer independent assess-ments of nonprofit organiza-tions based on public data. TIP GENEROUSLY Another way you can directly help people is by leaving extraordinarily
gener-ous tips when you can. You might not need your stimulus check to survive, but some people do. Wait staff and service work-ers have seen their income, which is primarily derived from tips, dry up recently. Using your money from the government to tip generously could help your economically vulnerable neighbors when they need it most.
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Money
Save While Spending
Reduce your grocery bill with these simple tips Expenses for the average household can pile up quickly. One of the easiest ways to keep a budget in check is to focus on how much is being spent on food. Chances are grocery bills can be reduced dramatically without upsetting daily routines. A 2012 Gallup poll found the average American family spends $151 a week on food. Cutting food costs often involves making smart choices. The following are some tips to help get started on the path to decreased food spending. MAKE MORE MEALS AT HOME Although there are plenty of budget-friendly options at area restaurants, the average price for one meal enjoyed in a restaurant is still much more than the cost of cooking the same meal at home. Incorporate more homecooking into the mix
and you can save. SHOP SALES Rather than planning meals on a whim, let sales guide what you eat each week. GO MOSTLY VEGETARIAN Meat tends to be more expensive than produce and grains. As a result, vegetarian-inspired meals provide an easy way for shoppers to trim their grocery bills. REDUCE READY MADE OPTIONS Convenience costs money, so anything that is premade, prepackaged or already sliced and diced is bound to cost more per unit than the same items that have not been prepared. USE A LIST The experts at the financial site The Simple Dollar say that making a list of items needed before setting foot in the store is a great way to stop im-
pulse buys that can foil a budget. Only purchase the items that are on your shopping list. CONSIDER A DISCOUNT GROCER Many people get hung up on brand names. But remember, the advertising costs for making those names known in households are passed on to consumers. Discount grocers like Fareway, Aldi, Price Rite, and Lidl, for example, have many highquality comparable goods at a fraction of brandname prices. Plus, shopping these grocersĘź sale items helps you save even more. USE LEFTOVERS DonĘźt be wasteful with food. Practic portion control so you are not wasting food and consume leftovers before they spoil. Reducing grocery bills is a great and simple way to save money.
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Charity
Donating Wisely
Deductions and Donations: What Donors Should Know Giving to charity is a selfless act thatʼs worthy of recognition. That recognition can come in many forms, and donors should know that even the “tax man” likes to reward men and women who donate to charity. Both the United States and Canada reward donors with tax credits. The financial services firm H&R Block notes that, in the United States, taxpayers can deduct donations made to qualified charities. Such deductions must be itemized, but they can greatly reduce a personʼs taxable income. According to TurboTax®, Canada also has a generous tax credit system, rewarding taxpayers who donate to charity by giving them a credit thatʼs up to 29 percent of the amount donated at the federal level. In addition, taxpayers also may be entitled to an additional amount up to 24 percent depending on which province they call home. Laws regarding donations and tax deductions can be difficult to understand, so donors should always discuss their donations with their financial planners or tax preparers
before filing their returns. The following is some general information regarding donations and deductions that can be useful to prospective donors. Are all donations deductible? H&R Block notes that, in the United States, donations must go to one of three types of groups in order to qualify for deductions. Donations made to nonprofit religious groups, nonprofit educational groups and nonprofit charitable groups, which are often referred to as 501(c)(3) organizations, may qualify for deductions. The Government of Canada notes that the Charities Directorate can be contacted directly at 1800-267-2384 to confirm if a charity qualifies for a tax deduction. In addition, TurboTax® notes that the Canada Revenue Agency (https://www.canada.ca/e n/revenue-agency.html) provides a searchable online database that allows donors to confirm if a charity is registered and eligible for deductions. Does a donation have to be money in order for it to be deducted?
Non-cash donations are eligible for deductions in both Canada and the United States. Do I need to get anything from the organization I donate to? In most instances in the United States, H&R Block notes that charitable organizations must provide donors with certain information in order for donations to be deducted. A receipt that indicates the organizationʼs name and address and the date and location of the donation must be submitted. In addition, the amount of the donation when donating cash or, in the case of non-cash donations, a reasonably detailed description of the items donated. The Government of Canada advises donors to keep official donation receipts from registered charities and other qualified donees for five years. Official receipts should not be sent in with tax returns. For a list of what items must be on the receipts, visit Canada.ca. Donating to charity is a selfless endeavor that may lead to rewards when donors file their tax returns.
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Money
Spending Wisely Financing Funerals According to Lincoln Heritage Funeral Advantage, the average funeral costs bet w e e n $7,000 and $10,000. It can be easy to overlook planning for such a large expense, and many people may think their funeral costs will be covered by their life insurance policies. However, that isn始t always the case and certain complications can arise. The funeral planning information guide Funeral Basics states that sometimes insurance policies become invalid if payments have not been made. Policies may have liens on them, or some named beneficiaries may no longer be alive. This can stall the process as issues are worked through. In addition, it can sometimes take between six and eight weeks for beneficiaries to receive life insurance policy payouts. Since many funerals take place within a week of a person始s death, it始s unlikely that surviving family members will be able to finance funerals with life insurance payouts. In addition, some policies may not be assignable, which means the benefits
cannot be assigned to go to a third party who will file the claim for you (i.e., the
funeral home or an assignment company with which the funeral home partners). It始s important to determine if an existing policy is assignable and to take appropriate measures if it is not. Individuals
may want to consider burial insurance or preneed funeral insurance. Another option is to use preplanning services, w h i c h allow people to prepay for funeral expenses and make planning decisions regarding the services and burial so that family members will not be tasked with financing and/or planning a funeral during a difficult time in their lives.
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