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Contents
T A B L E
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Advantages to working with a financial planner How to build, maintain strong credit
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How credit scores affect finances
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How to account for the rising cost of living
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Find a route to financial success
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Types of investments and tax-advantaged investing
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Potential passive income stream
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Know Your Dough promotes financial literacy How to prepare for tax season
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Is crytpocurrency a good investment?
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Advantages to working with a financial planner Investing requires some measure of risk. Risk understandably makes people nervous, especially in regard to their finances. Investing is an important component of securing your financial future, and the risk involved with investing should never prevent you from putting your money to work. Many people, including both novice and experienced investors, overcome their fears about investing and risk by working with certified financial planners, who can do a lot more than make suggestions. • Financial planners can make sense of complex products. Financial jargon can be hard to understand for those who do not work in finance. Financial planners simplify the complex array of products available to their clients, helping them understand each of their options as well as which of those options is best for them. • Financial planners can expand your investment options. Financial planners sometimes have access to products that are not directly available to everyone. Some financial product providers work exclusively through intermediaries (i.e., planners), so working with a financial planner can give investors more options in regard to how to invest their money.
Interviewing financial advisors Investors put a lot of faith in their financial advisors. Many professionals work hard to save up enough money to invest so they can secure their financial futures. Handing that hardearned money to a financial advisor can be nerve-wracking. But prospective investors can address their anxieties by discussing certain topics with planners before deciding to work with them. Fiduciary status
• Financial planners do the legwork. Even seasoned investors with a firm grasp of financial products and services may not have the time to stay up on all the latest investment options. Financial planners do so for a living. A good planner will inform his or clients of the latest products available and then help clients decide if such products are right for them. That’s a lot of work that busy professionals often do not have the time to do on their own.
People new to investing will no doubt find some financial jargon confusing. Fiduciary is one term that novice investors may be unfamiliar with. A fiduciary is a financial professional who must place clients’ interests ahead of his or her own. Fiduciaries also must disclose any existing or potential conflicts of interest that might affect clients’ willingness to work with them. That includes how they earn their money. Non-fiduciaries have no such responsibility, so they can sell clients a particular investment without having to tell clients how their own compensation is affected by that sale. Some fiduciaries work for specific funds that only allow them to sell those particular funds’ proprietary products. That’s the case even if they believe there are other investments that are better for given clients. Such arrangements must be shared with clients for advisors to maintain their fiduciary status. The Certified Financial Planner Board of Standards’ “Rules of Conduct” can be found at www.cfp.net. Fees
• Financial planners are certified. Investors should only work with certified financial planners. Certification standards vary by country, but certified planners have been vetted by third party organizations and have met rigorous professional standards. In addition, to maintain their certification, certified planners are required to provide their clients with straightforward advice and put clients’ needs ahead of their own. Those that don’t could be held financially accountable for providing misinformation or bad advice to clients. Investing is complicated, and many investors find working with certified financial planners is an effective way to secure their financial futures. F I N A N C I A L
Fees should be discussed before signing an agreement with a financial advisor. Ask each advisor you interview how they earn their money. Some might charge clients a percentage of the assets they’re managing while others may earn money by selling you specific products. Investors have a right, and an obligation to themselves, to understand how financial advisors they work with will earn money. That’s smart investing and can help investors sleep easy knowing their advisors have put clients’ interests first. Services Financial advisors offer different services. Some might only suggest investments, while others may help clients come up with comprehensive financial plans that focus on short- and long-term goals. Some investors may only want suggestions, while others may need more from their advisors. Determine which type of investor you are and then find the right advisor for you. Access Investors, particularly those without much experience, might be comfortable knowing they can contact their financial advisors as often as they’d like. Some advisors are more accessible than others, so discuss access with advisors before signing any agreements, and determine if you’re comfortable meeting just once a year to go over things or if you want more routine check-ins. Financial advisors help millions of people across the globe secure their financial futures. Discussing these topics and strategies with prospective advisors is a great way for investors to find the right individual for them.
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How to build, maintain strong credit
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strong financial history benefits consumers in myriad ways. Individuals with a history of paying their bills on time and avoiding significant consumer debt may be eligible for lower interest rates on big ticket items like homes and automobiles, potentially saving them tens of thousands of dollars over their lifetimes.
to financial products or be eligible for loan terms that people with lower scores are not privy to. Making the most of those advantages can save consumers considerable sums of money over the course of their lifetimes and may help them build generational wealth. How can individuals achieve high credit scores? The best way to build and maintain a high credit score is to understand the factors that influence that score. FICOTM is a data analytics firm that provides credit scoring services. Equifax notes that FICO scores consider five categories from individuals’ credit histories:
Though there are many ways to build a strong financial history, avoiding debt is always part of that equation. Credit scores are used to determine consumers’ creditworthiness in the eyes of lenders and can affect eligibility for loans and the terms of those loans. Understanding credit scores and how to build and maintain a good credit rating can be vital to individuals’ financial futures.
Each of these categories are weighted, and none bears more significance than payment history. Consumers who have demonstrated an ability to pay their bills on time and limit the amounts of debt they carry at any given moment are doing themselves a favor as they look to achieve and maintain a high credit rating.
What is a credit score?
Is all debt the same?
A credit score is a three-digit number between 300 and 850. The higher the number, the better an individual’s credit rating is. The lower the number, the less creditworthy consumers become in the eyes of lenders.
It’s important that consumers distinguish consumer debt from student loan debt. Though each type of debt will be reported to the three major credit bureaus, student loan debts that are paid on time each month are generally considered “good debt” because they demonstrate an individual’s ability to make installment payments on time over a significant length of time. That’s what consumers will need to do if they hope to purchase a home in the future and finance it with a mortgage loan.
What is the average credit score? According to Equifax, which along with Experian and TransUnion is one of three credit reporting agencies, the average credit score in the United States in February 2021 was 698. Is 698 or 650 good? There’s good news and bad news for consumers. The average rating falls into the “Fair” or “Good” range. However, consumers should aspire for scores that are higher than the average. A credit score above 720 is considered “Excellent,” and the online financial resource Nerd Wallet reports that individuals with scores above 750 are in even better shape. Such individuals may have access 04
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Unlike student loans being repaid in installments, consumer debts like credit card balances must be paid in full each month for consumers to avoid potentially hefty interest charges. Consumers who can’t pay those balances in full each month are not demonstrating creditworthiness in the eyes of lenders, and which will negatively impact credit ratings. Understanding credit and how to build and maintain a strong rating is vital to individuals’ financial futures. P L A N N I N G
How credit scores affect finances Monthly budgets help people make the most of their money. While a person’s income will affect how much they can spend on housing, food and clothing each month, another, more abstract factor can have a big impact on monthly budgets as well. Nearly every adult has a credit score, which can fluctuate daily. Various factors, including a person’s age and track record in regard to paying bills, combine to produce a credit score. Credit scores typically range from 300 to 850, though most consumers’ scores fall somewhere between 600 and 750. The Fair Isaac Corporation creates what’s known as a FICO Score, which is used by many lenders to determine prospective borrowers’ credit worthiness. FICO scores are often characterized using five terms:
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• Fair: Scores between 580 and 669 • Good: Scores between 670 and 739 • Very good: Scores between 740 and 799 • Exceptional: Score between 800 and 850 Some consumers may feel that these are just numbers on a page. But in certain instances, such as when consumers attempt to buy a home, a credit score can have a dramatic effect on a person’s monthly budget.
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When borrowing to buy a home, borrowers with desirable credit scores may be eligible for considerably lower interest rates than borrowers whose scores fall into the “very poor” or “fair” range. Over the length of a standard, 30-year, fixed-rate mortgage, a low interest rate can save borrowers tens of thousands of dollars in interest fees. In addition to paying more in interest fees, borrowers with subpar credit scores may have to do even more to earn the trust of lenders. Borrowers whose scores fall into the “very poor” range may be required to pay a fee or make a deposit when opening a new credit account, and some might not be approved for credit at all. Borrowers whose scores fall into the “fair” may be classified by lenders as subprime borrowers, making it hard for them to open new credit accounts or secure loans without a cosigner. Consumers can benefit from knowing their credit scores and how to improve them. Taking measures to improve low or subpar credit scores can put more money in consumers’ pockets, both in the immediate and distant future. F I N A N C I A L
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How to account for a rising cost of living
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ost of living is a significant component of financial planning. The cost of living may dictate where people live and work, and a high cost of living can influence how individuals spend their free time.
or fresh income streams. According to the Q3 2021 CNBC | Momentive Small Business Survey, 50% of small business owners say it’s harder to find qualified people to hire compared to a year ago. And nearly one-third of survey respondents indicate they have open roles they have not been able to fill for at least three months. Individuals can explore local employment opportunities in an effort to find a new, more lucrative job that can help them combat a rising cost of living. Others who want to remain in their jobs can look for part-time work to supplement their existing income.
Data from Statistics Canada indicates that consumer prices rose 4.1% and 5.3% in August 2021 in Canada and the United States, respectively. As Canadians headed to the polls in late September, a survey from Abacus Data found that 38% felt reducing their cost of living was a key factor affecting their vote. Similarly, a 2020 survey from TD Ameritrade found that 47% of Americans feel that cost of living is the biggest threat to their financial security and long-term investments. It’s worth noting that the survey was conducted prior to the pandemic. Since the onset of the pandemic, cost of living has increased considerably.
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Though the fight against a rising cost of living can feel like an uphill battle, individuals can take steps to prepare for such increases. n
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Apply lessons learned during the pandemic. A recent Pew Research Center analysis of U.S. government and Eurostat data found that roughly 9.6 million workers in the United States lost their jobs in the first three quarters of 2020. That period coincides with the onset of the COVID-19 pandemic. When forced to confront sudden and unexpected job losses, millions of individuals learned how to get by on less income. Cost-saving measures adopted during the pandemic can be continued or reimplemented, helping individuals to combat higher energy costs and other rising expenses.
Consider relocating. The pandemic forced many companies to transition from in office working to remote working overnight. That trial by fire could have lasting results. A 2020 survey of 317 Chief Financial Officers and leaders in the finance industry found that 74% will move at least 5% of their previously on-site workforce to permanently remote positions after the pandemic ends. The survey, conducted by Gartner, Inc., also found that nearly one-quarter of respondents will move at least 20% of their on-site workers to permanently remote positions. That could make it possible for millions of working professionals to relocate to regions with a lower cost of living than their current towns or cities.
The cost of living might be on the rise. But individuals can combat that increase in various ways.
Look for a new job or fresh income streams. A rising cost of living is a concern for people from all walks of life, but it may be especially concerning for retirees or individuals with costs like childcare that can be hard to pare back. In such instances, individuals can look for new a job F I N A N C I A L
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Find a route to financial success
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reparing financially for your future is similar to planning a road trip. Though it might be easy to identify the destination, there are bound to be a few detours along the way that alter your itinerary. There is an atlas full of decisions and investments for individuals to consider, and a financial plan is the route you take to reach your destination.
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Set goals.
A clear picture of your personal spending and savings rates is essential for securing a strong financial future. A financial plan can help everyone from the extraordinarily wealthy to those struggling to make ends meet.
Start by clearly identifying what you want to accomplish financially, then develop a strategy to achieve your objective. Goals can be either short-term or long-term. When preparing to devise goals, think about investing, managing risk, paying taxes and saving for retirement.
The Financial Planning Association says a financial plan identifies goals and objectives that take finances to achieve and creates a plan for making those things happen. A financial plan can serve as a map that people can look to for years to come as they work toward achieving their financial goals, such as purchasing a home or paying off student loan debt. Whether you aim to travel more, retire early or send your children to college, a financial plan can be just what you need to turn your dreams into a reality. Here are some steps for drafting your financial plan. For additional guidance, seek assistance from a financial planner. 08
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Evaluate budget.
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Conduct an audit of your finances so you can get a clear grasp of your current situation. Make a list of all of your assets, and then subtract existing debts to figure out your net worth. While calculating assets and liabilities, figure out how much money you bring in and spend each month so you can get a clear picture of your spending habits. Review the budget regularly to find ways to reduce costs.
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Eliminate debt.
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One of the key parts of a financial plan is to pay down high-interest debt to free up money for the future. Focus on paying off credit card balances, high-interest loans or balances for other accounts where interest is high. A debt consolidation loan may be worth exploring if you’re having trouble paying down high-interest debt.
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Start saving.
Building your savings is essential to reaching many goals. It also is key to help avoid financial ruin during emergency situations, such as home or car repairs, disability that takes you out of work, etc. Start small by having a certain percentage of money deposited into a separate account automatically. Then watch it grow. Investing in the right products also can help you grow your savings. F I N A N C I A L
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Types of investments Investing is a way to generate income and grow your net worth. When you make an investment, it means you allocate financial resources in the hopes of gaining a profit. However, an investment comes with an inherent risk. Understanding the different types of investment opportunities and the risks associated with each benefits an investor. Stocks
Bank Products
Most people know that the stock market is a popular way to invest funds. Buying a share of stock makes you a part owner of a corporation. When investing in stock, your success or failure is determined by the company’s own success or failure.
Banks and credit unions also offer services to customers that help them manage money and earn interest on savings. Unlike other investment tools, bank products keep cash liquid, meaning that it is easy to access for any reason. These products can include savings accounts, money market accounts and certificates of deposit.
Bonds A bond is a loan an investor makes to an organization in exchange for interest payments over a period of time, plus repayment of the principal at the bond’s maturity date. Bonds can be both short-term and long-term investments. Bonds are issued in multiples of $1,000, but the bond’s price is subject to fluctuations in the market. The risk varies by the type of bond you own. Mutual Funds A mutual fund is an investment company that pools money from many investors and uses specific investment goals to determine where to invest the funds. A mutual fund raises money by selling its own shares to investors. The money is used to purchase a portfolio of stocks, bonds, securities and assets that benefit investors.
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Annuities When planning for retirement, an annuity is a popular long-term investment tool issued by an insurance company designed to provide a fixed income stream to investors. Annuities are contracts between the investor and an insurance company that outlines regular payments in return of your investment. Retirement It’s never too early to save for retirement. Products that help people save for retirement include different types of 401(k)s, Target-Date Funds and Individual Retirement Accounts (IRAs). These plans often offer tax benefits and opportunities to compound savings over time.
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Tax-advantaged investing Investing has always been a means for people to grow their wealth and make their money work for them. Investors know that protecting investment earnings is important, and that often can be achieved through tax-advantaged investments. Tax-advantaged investing, also called tax-efficient investing, allows investors to maximize the profits they can keep after taxes are filed. Investment selection and asset allocation are important factors affecting returns, but minimizing taxes and other costs is also crucial, according to the Schwab Center for Financial Research. There are some ways for investors to keep more of their assets. A qualified financial advisor can help navigate the waters of the best tax-advantaged options. When investing on an annual basis, there are some general accounts people can use to their advantages. • A 401(k) or 403(b): These accounts are an ideal way to get “free” money. Funds in these accounts are put away pretax. Because your adjusted gross income is lowered, so is your federally taxable income. In addition, some employers may match contributions up to a certain percentage. Companies also may offer Roth 401(k) plans, which differ from traditional plans in regard to when you pay taxes. With Roth plans, you pay taxes up front. When the money is eventually withdrawn, those withdrawals are tax-free. • IRAs: Individual retirement accounts are similar to 401(k) plans in that they’re tax-deferred. However, they generally offer greater freedom in investment choices. Roth IRAs, like the Roth 401(k) plans, must be paid with after-tax dollars. But the advantages are higher contribution amounts, withdrawals that are tax-free and no mandatory withdrawals when a person reaches a certain age. • Tax-Free Savings Account (TFSA): Canadian investors can explore TFSAs. These are accounts that do not tax any contributions, interest earned, dividends, or capital gains, and can be withdrawn tax-free. It is available to individuals ages 18 and older in Canada and can be used for any purpose. • College savings accounts: Investing in a 529 plan can be wise for parents. While money is invested after tax, it is tax-free when withdrawn for qualified higher education purposes. • Health savings accounts: To get a tax deduction on health expenses, an HSA is the way to go. HSAs are linked to highdeductible health plans and allow account holders to use the funds for qualified spending. Working with a financial planner can help investors maximize their investments to be as tax-efficient as possible. Financial experts understand funding limits and the timeline in which to invest for tax advantages.
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Potential passive income streams
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Digital products
obs may be how many people earn their money, but there are other ways to generate income that may not require the level of effort of a nine-to-five gig.
Digital items, such as expert advice guides, books, informational articles, digital photography, digital artwork and more can be sold online. The product only needs to be created once, and then it can be sold infinite more times to generate an ongoing revenue stream.
Passive income streams can be a great way to earn substantial amounts of money. Passive income can be earned through investing in stocks, money market funds, real estate, livestock or savings bonds. Lending money also can provide passive income. Though such income streams are described as “passive,” they require an investment of time and/or money to get started.
Peer-to-peer lending Peer-to-peer lending (P2P) is the practice of lending money to borrowers who may not qualify for traditional loans. P2P is a growing market that removes large financial institutions from the lending process. Lenders serve as the “bank,” and the consumer pays interest on the principal.
Passive income streams enable the average person to make some extra money without taking on a full-time job. Unlike active income, where the more you work the more you earn, passive income often generates a flat level of return over time without the same level of commitment.
Real estate investment trusts
Passive revenue streams are continually evolving. Modern passive investments are varied, and can include the following ideas.
Real estate investment trusts, or REITs, offer the benefits of being a landlord without the hassle of dealing with fixing broken pipes or handling rowdy tenants. REITs are like stocks in the real estate market. You purchase a share in a company that owns, manages or invests in various real estate properties. The higher the dividend rates, the higher the risk, so investors must weigh REIT considerations carefully.
Home-rental service Popular sites like Vacation Rental By Owner (Vrbo®) and Airbnb put interested parties in touch with potential landlords. Vacation property owners or people who do not spend a lot of time at a primary residence may find this is a lucrative way to earn some extra money. Properties located in popular tourist areas may garner considerable income.
Passive income streams help you earn extra money and can be lucrative for those who take time to invest.
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Student programs promote financial literacy K N O W
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pening a birthday or holiday card to find cash is always a welcome surprise. In my younger years, a crisp fivedollar bill was more than enough to cover my major expenses: bubble gum and ice cream cones. These days, I still spend more than I would like to admit on ice cream cones, and $5 doesn’t begin to cover Colorado’s living expenses. However, growing up with some small opportunities to save and spend helped me learn the value of a dollar, and also how to stretch it. Buying bubble gum in bulk was like trading stock at the school lunch table, for example. I didn’t receive formal money management education until I enrolled in accounting as an elective my junior year of high school. So I developed budgeting skills and received financial education through trial and error my first year of working as a waitress. In fact, for the majority of today’s adults, formal finance education was absent from standardized public school curriculum. Fortunately, more states across the U.S., including Colorado, have introduced personal finance education into classroom curriculum in the last decade. Locally, the nonprofit organization Know Your Dough develops programming to distribute financial education to students in the Four Corners region. Established in 2013 by Allison Andersen and Paul Gervais, Know Your Dough aims to deliver quality personal finance knowledge, promote practical, short- and long-term financial literacy and empower students to gain financial independence and security. Executive Director Kathy Wilson said the nonprofit collaborates with the local school district and other educational institutions to provide programs designed for different age groups. As the only staff member of the small organization, Wilson develops the programs, raises funds, and manages marketing efforts. She also recruits and trains volunteers to lead programs. The curriculum is designed to grow with the students, Wilson said. For early elementary students, Never Too Young introduces children to needs and wants through hands-on activities and interactive discussions. Upper elementary students begin to develop the economic and mathematical skills 12
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associated with spending and saving money in the Feed the Pig program. To build on previous lessons in financial literacy, Wilson said The Money Game is an opportunity for middle school students to practice skills like decision making and goal setting while learning to be more financially independent. To track student progress, teachers distribute a pre-test and post-test with identical questions to measure lesson comprehension and individual improvement. The questions are split into two sections, behavioral and skills, to assess the impact of specific activities and lessons. Wilson said these youth programs are important to helping students develop a realistic relationship with finances and assess areas that need improvement. Moreover, the results of the post-test indicate that students often exhibit a better understanding of healthy financial behaviors. So she adapted her programs to continue to reach students in the region at the onset of the pandemic. According to the 2020-2021 Know Your Dough Impact Report, the nonprofit presented classes to at least 10 different educational institutions using a combination of three delivery methods: in-person, teacher-led online and remote online. Students that participated in Know Your Dough programs last year increased their financial literacy skills 32% on average in just one week. Know Your Dough programs establish a foundation for a stronger financial future that allows children to grow and work here, own businesses and contribute to the community, Wilson said. Programs are designed to be easy to implement in any classroom, and post program surveys indicate 100% of students would recommend this program to their peers. Spring Sign-Up Know Your Dough provides education in Durango and Bayfield public schools, in addition to Fort Lewis College, Durango Adult Education Center and the Boys and Girls Club of La Plata County. Educators and instructors can reach out to Know Your Dough to incorporate its programs into your 2022 curriculum. P L A N N I N G
How to prepare for tax season April is synonymous with many things. Many people get their first glimpse of spring blooms in April, while families of faith look forward to gathering for Passover and Easter. Sports fans may welcome the return of professional baseball in April, while scholastic athletes may associate April with the return of spring sports. Though each of those things tends to be welcomed with open arms, one day in mid-April may not be greeted so warmly.
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ach year in the United States, April 15 marks the official deadline for taxpayers to file their tax returns. Taxpayers in the United States must file their returns by this day or face penalties. Though the filing deadline may be in mid-April, it’s wise for taxpayers to begin preparing to submit their returns much earlier than that. For those who have not done so in the first two months of the year, March is a great time to begin preparations to ensure returns are accurate and filed on time.
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The Internal Revenue Service offers the following advice to taxpayers who want to get a head start on their returns so they make sure they file on time in 2022. n
Gather and organize your records. Many people rely on a professional to work on their returns, making April the busiest time of year for finance professionals. As a result, it’s imperative that taxpayers have all their necessary documents ready prior to their appointments. Any delays could force appointments to be rescheduled, and there’s no guarantee tax professionals will have any open dates on their calendar as the filing deadline draws closer. The IRS notes taxpayers will need their W-2s from employers, forms 1099 from banks and other payers and other income documents and records of virtual currency transactions. People who received unemployment income should recognize that such income is taxable, so they will need a record of that income, especially if they did not pay taxes on it when it was received. F I N A N C I A L
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Where applicable, confirm your Individual Taxpayer Identification Number has not expired. The IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security number from the Social Security Administration. The IRS notes that all ITINs not used on a federal tax return at least once in the last three years expired on December 31, 2020. In addition, all ITINs issued prior to 2013 with middle digits of 88 expired at the end of 2020. ITINs with middle digits 90, 91, 92, 94, 95, 96, 97, 98 or 99 that were assigned before 2013 and have not already been renewed also expired at the end of 2020. Visit www.irs.gov to learn more about ITINs. Contact your tax professional. 2021 was a complicated year, and that figures to create some unique challenges as people file their 2020 tax returns. So it pays to contact your tax preparation professional with any questions you have well in advance of April 15. That’s true for all taxpayers, but especially so for anyone who filed for unemployment, received an Economic Impact Payment or dealt with any other abnormal circumstances in the past year that could affect their tax returns.
Taxpayers may face unique challenges as they begin to work on their annual tax returns. Contact a local professional for guidance and service, or find more information available online at www.irs.gov. P L A N N I N G
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Digital dollars I S
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igital currencies continue to make headlines week after week. In the last few years, these headlines have raised awareness of cryptocurrencies and curiosity for investors as well.
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An Investor Optimism poll conducted by analytics company Gallup, found that 38% of investors are familiar with crypto currency, up 9% from 2018. Data experts continue to learn more about the people investing in cryptocurrency as well.
Experts in finance continue to hold mixed opinions of cryptocurrency, and advise clients to be cautious of investing. While owning cryptocurrency can diversify a portfolio, cryptocurrency has a higher risk than investment tools like bonds, stocks and mutual funds. With its potential for intense price swings, only those who can afford to lose the investment should pursue it.
The growth of digital currencies is primarily driven by young male investors. Information collected by Triple A suggests that nearly 27.5 million people in the U.S. own cryptocurrency, second only to India with over 100 million cryptocurrency owners.
Competition among cryptocurrencies is fierce, and not every cryptocurrency investment will pay dividends. Individuals can purchase cryptocurrency through peer-to-peer networks and exchanges, but should be mindful of fees associated with purchases.
But what is cryptocurrency, and why is it an investment tool? The answer begins with a brief introduction to blockchain technology.
Future of Cryptocurrency
Blockchain Technology Data encryption is what makes cryptocurrency secure and nearly impossible to counterfeit. Though blockchain technology was introduced in 1991, it rose to popularity with the creation of Bitcoin in 2009.
As more companies begin accepting cryptocurrency as payment, following in the footsteps of large corporations like Tesla and Mastercard, the interest in cryptocurrency will continue to experience steady growth.
Blockchains are a form of encryption technology that records information in “blocks” that are “chained” across a vast array of computers, rather than on a single server. Blockchains form a ledger of transactions that cannot be altered or destroyed. While cryptocurrencies use blockchain technology, the encryption method is also useful for storing other data as well, such as contracts, product inventory and tracking. Cryptocurrency Cryptocurrencies not only allow people to buy, sell and trade goods and services securely, they are also an alternative way to store wealth that is truly democratic and decentralized. This means there is no need for a central authority, such as a bank or government. Today, there are well over 10,000 different types of cryptocurrency, including Bitcoin, Coinbase, Dogecoin, Gemini, Polkadot and Tether to name a few. Though, the value of a cryptocurrency tends to fluctuate. 14
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Money management Managing finances helps individuals establish a budget, calculate expenses, save and spend money, invest wisely and generate supplemental income. Some tools can help users make routine financial tasks, such as paying bills or trading stocks, more simple. Others can seamlessly transfer money to different accounts or track spending habits.
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B U D G E T I N G Mint: With a nearly flawless rating and over 24 million registered users, Mint is the most recommended budgeting app. It is free to use and allows users to link checking and savings accounts, credit cards, loads, investments and bills. The app separates spending into categories and allows users to set limits for each category. It also shows users their credit score and tracks their net worth.
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Honeydue: Managing individual finances is hard enough. When there are multiple people involved, it can create more complexity. Honeydue is designed for partners to access the full scope of their joint finances through syncing bank accounts, credit cards, loans and investments. Honeydue sends reminders about upcoming bills, categorizes spending and allows the user to set custom spending limits. The app is free and each partner can choose how much data to share with their significant other.
I N V E S T I N G Acorns: Investors can use pocket change to grow their wealth with Acorns. As a robo-adviser, Acorn requires $5 to start investing. Though there is no account minimum, the app charges users a monthly fee. This app is popular because it rounds purchases to the nearest dollar and gives users the option to transfer the change into an investment portfolio. However, without a large sum of investing dollars, the app fees can counteract investment returns. Fidelity Investments: For an educational resource and investment tool in one, consider downloading the Fidelity Investments app. The software allows users to review financial news, manage and trade money, deposit checks and pay bills in one place. It is a good option for beginners and assistance with retirement planning. There is no account minimum, and the company eliminated commissions on trading stocks, ETFs and options trades. F I N A N C I A L
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You can SAVE & GIVE BACK MONEY MANAGEMENT OPTIONS FOR THE ENTIRE FAMILY! Mind Your Money Free financial literacy courses offered on alpinebank.com. Loyalty Debit Cards[1] You can support local nonprofits like the Boys & Girls Club, the Women’s Resource Center, and the Durango Arts Center to name just a few, simply by using your Alpine Bank VISA® Loyalty Debit Card. Choose the category that means the most to you: Arts, Community, Environment or Education. Every time you use your card Alpine Bank will donate 10 cents. Those dimes really add up and stay local! [1] Alpine Bank debit cards are available with no annual fee to individuals with an Alpine Bank checking account.
Youth Checking Simplified checking for our youngest customers with no minimum balance required, or minimum deposit to open. Youth Savings Starts kids on the road to financial success early, teaching them how and why it’s important to save. Pays for As Alpine Bank rewards kids for earning good grades, twice each year on January 31 and June 30. Change Matters[2] An easy way to save that earns rewards! With every debit card transaction, we round up to the nearest dollar and put that in your savings account. Alpine Bank gives a 5% bonus on the savings every quarter. [2] To qualify for the Change Matters program, you must have a checking account, debit card, and a money market account/saving account with Alpine Bank. The 5% bonus is calculated and automatically credited to account holders’ savings or money fund account quarterly. Bonus is subject to IRS and other tax reporting. Other standard account terms, conditions and fee schedule still apply.
Visit alpinebank.com, or stop into a branch today to learn more and get started! Downtown: 1099 Main Avenue, Durango | Three Springs: 175 Mercado Street, Suite 119, Durango
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