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SAN LUIS VALLEY
2018
PROGRESS
Finance & Insurance
February 21, 2018 719-852-3531 835 First Ave. Monte Vista, Colo.
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Finance Progress
Wednesday, February 21, 2018
How to slay the formidable credit beast B Y LYNDSIE FERRELL
Chuck Blasi
BLASI named next chief credit officer of FCSC
COLORADO SPRINGS, Colo. – Chuck Blasi has been selected as the next chief credit offi cer at Farm Credit of Southern Colorado. He is currently the senior vice president of lending. “Chuck brings to this role a strong understanding of credit and background in working with our branches that I feel will be important as we move forward,� said Jeremy Anderson, president and CEO, Farm Credit of Southern Colorado. As chief credit offi cer, Blasi will be a member of the executive leadership team and will provide subject matter expertise and oversight for all credit activities and actions. He is currently senior vice president of lending and has nearly 32 years of lending experience with Farm Credit. Since 2016, he has served as Senior Vice President of Lending, providing oversight to Farm Credit of Southern Colorado’s six branches. Previously, Blasi was senior credit officer for three years, where he helped complete the conversion of the association to centralized credit underwriting.
Prior to moving to the administrative offices of Farm Credit of Southern Colorado in 2013, Blasi was a senior loan officer in the Burlington Branch where he had worked since 1986. Blasi is a graduate of Colorado State University. Blasi is looking forward to his new role, “Farm Credit of Southern Colorado has a great team with tons of experience,� said Blasi. “Under the leadership of our new CEO, Jeremy Anderson, I am looking forward to working through the current ag crisis and good things to come.� Blasi will assume the role of chief credit officer March 1, 2018, upon the retirement of current Chief Credit Officer David Self. Farm Credit of Southern Colorado’s mission is to provide innovative financial solutions to a diverse rural America one relationship at a time. The cooperative financial institution serves agriculture and rural communities through branches in Burlington, Colorado Springs, La Junta, Lamar, Limon and Monte Vista. For more information, visit www.aglending.com.
What’s new for income tax 2017?
First-time Home Buyer Savings Account subtraction Claim on the DR 0104AD, line 16. Taxpayers may deduct the amount of taxable interest and/or earnings on a qualified First-time Home Buyer Savings Account in the tax year claimed. A “first-time home buyer savings account� is an account with a financial institution designated as such in accordance with section 3922-4704(1) & 39-22-4703(6), C.R.S. Taxpayers must complete the form DR 0350 and submit the form with their return if they designate a First-time Home Buyer Savings Account in order to claim this subtraction. Colorado requires taxpayers to file this form annually with the Department when filing their income taxes once they have designated a First-time Home Buyer Savings Account, even if they are not claiming a subtraction for that tax year. Also, taxpayers must submit account statements and/or a 1099showing the taxable interest and/or earnings on the account in the tax year a subtraction is claimed. Upon withdrawal from the First-time Home Buyer Savings Account, taxpayers must also submit a real estate settlement statement that shows that the withdrawal was used for an eligible expense. Eligible expenses are down payments or closing costs that are included on the settle-
ment statement (including, but not limited to, appraisal fees, mortgage origination fees, and inspection fees.) Please see the form DR 0350 for additional requirement information on how to claim the subtraction. Taxpayers should maintain careful records for their First-time Home Buyer Savings Account, because if the money is not used for eligible expenses it is subject to recapture and penalty.
Emancipation Day changes Colorado tax due date The filing due date for 2017 Colorado income tax returns is Tuesday, April 17, 2018, rather than April 15. In some years, the District of Columbia’s observance of Emancipation Day can affect the nation’s filing deadline. Emancipation Day falls on Monday, April 16. This will push the tax filing deadline to the next business day for federal and Colorado income tax, making the due date Tuesday. Returns filed on Tuesday, April 17 will be considered as timely filed. Revenue Online will accept returns as timely filed until midnight. Returns that are mailed must be postmarked by April 17. An automatic extension to file is granted until Monday, October 15, 2018, but there is no extension to pay. See page 27 of the 104 Booklet for more information on extensions.
SAN LUIS VALLEY—It’s true. The things lurking in the dark corners of the child’s bedroom suddenly come into the light as an adult and has a name—credit. That thing that most adults have been able to get the concept of, but one that can still elude even the most successful entrepreneur in this day and age. Credit is a number that classifies how dependable a person can be, should be and with it banks base their entire empires on, just to give out loan after loan after loan until the coffers are completely empty, relying solely on the borrowing party to make timely payments for the rest of their days. A more black and white description of credit is as follows, “Credit is the trust which allows one party to provide money or resources to another party where that second party does not reimburse the first party immediately (thereby generating a debt), but instead arranges either to repay or return those resources (or other materials of equal value) at a later date.� Not so scary, is it? Several years ago, the credit report was something that could be obtained once a year for free through the credit bureau that generates a detailed report of three credit bureau scores: Experian, Transunion and Equifax. Through these three reporting companies a credit score is born. Banks and other such tycoons take an average of the three scores and base their decisions, in part, on the deciding number. The definition states, “A number assigned to a person that indicates to lenders their capacity to repay a loan.� For most of the young adult’s life, they go without even glancing in the direction of the formidable beast known only as credit, but as they grow older, they learn that very little in today’s society can be done without it. Everything from obtaining a loan for college, buying a home or car, purchasing a wedding ring for the significant other, everything depends on those three little numbers and if those numbers fall below the 500 range, the trouble to bring it back to good standing is a battle many lose. Resources with simple ways to raise the credit score exist by the millions today. Online data bases spew forth hundreds of thousands of sites that claim to help bring credit back to where it should be, which typically means a 640-credit rating or above. The tried and true way to fix a credit score remains a simple secret that resides in common sense— don’t be late. The easiest way to begin a journey as treacherous as fixing a credit score is by
obtaining the credit report and slaying the beast. One thing to keep in mind is that besides the free annual report through the credit bureau, any time a company checks the credit score of a potential lender, a negative mark is placed on the report. Tricky right? Anything negative on the report can be resolved. It simply takes time to call each and every one of the bad accounts and negotiating a settlement that will remove the negative mark from your report. The key here is to be ruthless. Some companies will claim all is well and then turn around and never do what they said they would do. Another option is to hire a company that can help fix the credit, but they can be expensive and people interested in hiring someone should always do research prior to signing into a contract. These companies do the legwork, calling creditors and asking them to negotiate down to a feasible price or consolidate debt into a low monthly payment, which for some, is a life saving event. The next step is to gain the trust of some company willing to give you a loan or line of credit. Again, the web is full of information in regard to low score credit card approvals, but again these can be a tricky treat if one is not paying attention. Once a line of credit is established, it’s back to rule number one— don’t be late. The most important thing to remember when building a credit score for the first time or the third time— don’t be late. Make scheduled payments on time and try not to get into too much debt. Many of today’s society rely solely on credit to live, while others, the rare bunch that exist only in dreams, live in a world where a balance of credit and hard-earned money resides. Last but not least, there are what is called, “soft credit reports� that can be checked on a daily basis that do not affect the credit score. Companies like Credit Karma are some of the most used databases today, allowing people to monitor their credit scores and stop negative or fraudulent hits from becoming a lasting issue. The one thing to remember in regard to these companies is that the entirety of the credit report is not shown and there may still be monsters in the closet, so always get the annual free report from the credit bureau. For more credit tips, tricks or help, type credit into the search icon in any computer and hold on for dear life. Just remember to do research and pay attention to scams. Good luck and may the odds be ever in your favor.
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Wednesday, February 21, 2018
Finance Progress
Page 3
Affordable Care Act remains intact
COLORADO—After much debate in Washington D.C. last year, the Affordable Care Act remains the law of the land though there was one important change you should understand. In the federal tax bill that was passed by Congress in late 2017, the penalty requiring individuals to have a Qualified Health Plan or pay a penalty was repealed starting in 2019. This is the only part of the law that was repealed and for 2018, the tax penalty for not having health insurance remains the law. The rest of the law, including financial assistance in the form of tax credits, remains in place. As Colorado’s health insurance marketplace, Connect for Health Colorado will continue to deliver on their mission to increase access, affordability and choice for Coloradans purchasing health insurance. They remain the only place where Coloradans can apply for financial help to lower the cost of their 2018
health insurance premiums. Do I Still Need Health Insurance? If you are still asking yourself “Do I still need health insurance?” The answer is “YES!” What remains constant and true is the importance of protecting the health and financial future of you and your family. Broken bones, disease and other chronic conditions aren’t political, but can happen at any time. And, in some cases, are preventable if you have access to care and health insurance. Join the thousands of Coloradans who already signed up for 2018 health insurance and, if you qualify, take advantage of the financial help to help you afford coverage. Responding to Change Yields Results If anything has been constant in the organization’s history it is the inevitability of change, whether it’s in market dynamics,
regulation or the public policy environment. In the past, when confronted with change we thrived. Their ability to change course is best demonstrated by the following successes: •More than 93 percent of Coloradans have health insurance, the highest rate in the state’s history and one of the highest rates in the country. • Nearly 600,000 residents of the state have gained coverage since the Affordable Care Act (ACA) went into effect. • Bankruptcies tied to medical debt have dropped by more than 60 percent, to 41,000 a year and people are having an easier time paying their medical bills. • They have an established a broad network of expert stakeholders from hospitals, trusted community-based organizations, Assistance Network partners, and brokers that mobilize each year to get more Coloradans enrolled in
health insurance.
Future of Connect for Health Colorado It is important to remember that Colorado’s path to building a health insurance marketplace started years before the ACA. Starting in 2006, the Colorado General Assembly and Gov. Bill Owens established the Blue-Ribbon Commission for Health Care Reform, known as the “208 Commission.” The Commission produced the “Final Report to the Colorado General Assembly,” which put forth recommendations from a diverse set of bipartisan stakeholders, one of which was the concept of a health insurance marketplace, much like the one we operate today. In many ways, our state was ahead of the curve. The organization’s board of directors has adopted a strategic plan for 2017 through 2020; board meetings are open to the public.
Division of Insurance comments on Aetna’s California case COLORADO— In response to information arising from a lawsuit in California against the health insurance carrier Aetna, Interim Insurance Commissioner Michael Conway is emphasizing that the Division of Insurance (DOI) will work to ensure that Colorado consumers’ appeal rights are offered in compliance with Colorado law. “We take this information seriously,” said Commissioner Conway. “This is a story out of California, but Aetna is a national company with a footprint in many states, including Colorado. Our office will be contacting Aetna to inquire further.” The case involves an appeal by one of Aetna’s insureds who was denied coverage for a medical procedure. According to reports, during a deposition for the case, the company’s former medical director for
8 ways to start saving now
Saving money is difficult for many people across North America. According to a 2017 GoBankingRates survey, 57 percent of Americans have less than $1,000 in their savings accounts, and 39 percent have no savings at all. A recent Ipsos survey on behalf of the accounting firm MNP found that more than half us are living within $200 per month of not being able to pay all of their bills. With such little room for error, even minor unexpected bills can pave the way to financial hardship. Fortunately, many people do not have to make drastic changes to save more. Here are several ways to start saving more now. 1. Plan meals. Decide what you will make in advance and list all the ingredients, enabling you to shop for the lowest prices. 2. Cut the cord. Cutting ties with traditional cable television providers can save consumers substantial amounts of money. Streaming services like Netflix, Hulu, and Amazon Prime provide a slew of content for a fraction of the cost of mainstream cable. 3. Establish a goal. It’s easier to save when you have an end goal, whether it’s financing a vacation, buying a home or growing your family. Establishing a goal gives men and women something to strive for. 4. Make coffee at home. Make your daily coffee at home rather than paying several dollars per day . 5. Wait before checking out. Impulse buys can quickly add up. Store that online item in the shopping cart for a day or two to really think about if it is a necessity or just an impulse buy. 6. Shop quality not quantity. Bulk buys may seem advantageous, but not if the items break or wear out prematurely. When shopping, opt for quality merchandise that may cost more initially, but thanks to its durability, will save money in the long run. 7. Don’t worry about your neighbor. Trying to keep up with the Joneses, Smiths or Murphys is a recipe for overspending. Stick to your budget and make improvements or upgrades as you can afford them. 8. Rely on automatic deductions. Set up automatic deductions so a predetermined amount of money is deposited into a designated savings account each paycheck. Chances are you won’t miss it, and the savings will add up. MM17C532
Southern California stated that he did not look at patients’ records when deciding to approve or deny coverage. Colorado law states that in appeals to an insurance company, the physician conducting the review must be familiar with the standards of care for Colorado, must evaluate the appeal, must consult with other specialists if the case is outside of the physician’s area of expertise, and must sign a written determination. If the appeal involves what was a request for a preauthorization of a service, the physician evaluating the appeal must be different than the one who reviewed the initial preauthorization request. When consumers contact the DOI regarding health insurance appeals, part of the Department of Regulatory Agencies (DORA), the Division helps them under-
stand their appeal rights and ensures that the insurance companies follow the steps required by Colorado law. “It’s an important part of consumer protection,” said Dayle Axman, director of the Division’s health insurance section of consumer services. “We want to make sure that consumers understand and take advantage of their appeal rights.” For more information about appeal rights, the Division offers the brochure “When your health insurance carrier says ‘No’ - Your rights regarding pre-authorization and appeal procedures” on its website. If you have questions or concerns about your appeal processes and rights, contact the Division of Insurance - 303-894-7490 / 800-930-3745 (outside the Denver metro area) DORA_Insurance@state.co.us / AskDORA.colorado.gov (and click on the
“Health Insurance” tab).
About the Division of Insurance The Colorado Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA) regulates the insurance industry and assists consumers and other stakeholders with insurance issues. Visit dora.colorado.gov/insurance for more information or call 303-894-7499 / toll free 800-930-3745.
About DORA DORA is dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. Consumer protection is our mission. Visit dora. colorado.gov for more information or call 303-894-7855 / toll free 1-800-886-7675.
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Finance Progress
Wednesday, February 21, 2018
Conway appointed as new interim Colorado insurance commissioner Salazar to focus exclusively on role as DORA executive director
COLORADO – In December Colorado Department of Regulatory Agencies (DORA) Executive Director and Colorado Insurance Commissioner Marguerite Salazar announced that Michael Conway was selected by Gov. John Hickenlooper to serve as interim Colorado insurance commissioner, effective Jan. 1, 2018. As insurance commissioner, Conway will also head the Division of Insurance (DOI), part of DORA. Director Salazar, who was appointed insurance commissioner by Gov. Hickenlooper in 2013, has been serving in two roles since her appointment as DORA Executive Director in July 2017. Salazar has chosen to step down as Commissioner in order to focus exclusively as DORA Executive Director “While I have enjoyed serving as Insurance Commissioner, it gives me great pleasure to see the team that will continue to regulate the business of insurance for the State of Colorado,” said Director Salazar. “I couldn’t be more pleased with the selection of Michael Conway. He has the ability to reach into the finer points of issues affecting consumers and industry, whether it is title insurance, health insurance or
the details of legislation. It’s a skill that always helps resolve problems.” Conway has been at the DOI since March of 2016, serving as deputy commissioner for Consumer and Compliance Services. On top of many other duties, he guided the DOI’s strategies for retaining health insurance companies on Colorado’s individual market for 2018. This made Colorado one of only a handful of states to go into 2018 with the same on-exchange lineup of companies as in 2017. He came to the DOI from the Colorado Attorney General’s Office, where he served as an Assistant Attorney General in the Insurance Unit for approximately six years, representing the DOI in all facets of the regulation of the insurance industry. “He will continue to have the steady and vast knowledge of Peg Brown who serves as chief deputy commissioner, as well as Rolf Kaumann, deputy commissioner of finance,” continued Salazar. “Peg has been the DOI’s foundation for many years and she will be for many years into the future. Rolf’s experience is an amazing asset and he is truly irreplaceable. Their leadership has taken the Division of Insurance to a new level of consumer protection as well as creating a safe, open marketplace for the industry.” “Furthering the work that Marguerite has done for the Division will be my priority,” said Conway. “We’ve weathered some serious storms in recent years and I’m sure the coming
Michael Conway, new interim Colorado Courtesy photos Insurance Commissioner Marguerite Salazar, DORA executive director year won’t be any different. But I know the entire DOI team is up to the challenge.” Though he is being appointed as interim commissioner, Conway will serve through the remainder of Gov. Hickenlooper’s term.
With the exception of three years he spent in Miami for law school, Conway has called Colorado home for nearly 20 years since moving to the state to attend the University of Colorado at Boulder.
Factors that impact auto insurance premiums Auto insurance rates vary from person to person, even though it may seem like the offerings are the same. But no two drivers are the same, and certain factors may be affecting drivers’ auto insurance premiums without the motorists even realizing it. Automotive insurance provider State Farm says most insurance companies consider several factors when calculating the cost of car insurance. Recognizing which situations can increase or lower costs can help drivers get the best rates and coverage needed. Although it can be tempting to reduce the price of insurance by choosing lower amounts of coverage, there are other ways to make insurance more affordable. • Move. Insurers typically look at where a person lives when calculating rates. Those people who live in highly populated, urban areas likely will have higher premiums than others who live in more rural towns. That’s because greater population density often translates into more people on the road — and a greater chance for insurance claims due to fender benders or theft. By moving, a person may be able to cut rates.
• Gender and age are factors. One can’t step into a time machine, but it’s helpful to know that growing a little older can lower insurance premiums. The financial advice source Money Crashers say that young men usually incur higher rates than young women because statistically men get into more accidents. However, as a person moves into his or her senior years, the roles reverse. Older women may see higher rates than men the same age. • Keep make and model in mind. The type of vehicle driven can affect insurance premiums. Certain insurance carriers will increase premiums on vehicles that are more susceptible to damage. Flashy sports cars or those that do not score as highly on vehicle safety ratings calculated by industry experts may result in high premiums. Vehicles that are desirable to car thieves also may cost more to insure. Researching vehicles prior to purchase and checking the rates for those Courtesy photo cars or trucks with insurance companies can Insurance rates are impacted by different factors, some of which vary between insurers. help keep costs low. • Commuters may pay more. Individuals muting may pay more than people who drive risk for an accident, says State Farm. Reducwho use a car for business or frequent com- less because statistically there is a greater ing commute times can lower premiums. • Tie the knot. Insure.com says married couples have been found to be less of a risk to insurance providers statistically than those who are single. A study by the National Institutes of Health found that single drivers were twice as likely to be in an auto accident as married drivers. Combining policies also can help married people save. • Follow the rules of the road. Drivers who have moving violations, drink and drive or this year’s open enrollment period was 22 rectly from an insurance company or agent. engage in otherwise risky behavior behind days shorter,” said Interim Insurance Com- It is not for people who get their health insurthe wheel may see their rates soar. missioner Michael Conway. “Maintaining ance from an employer. Insurance companies weigh factors such health insurance coverage is vitally important Individuals who are not eligible for this as driving record, age, locality, and more to so many people and their families, and SEP and missed signing up during open when assessing premium costs. Drivers have these results are a tribute to our efforts in enrollment will only be able to purchase some room to get lower rates by knowing Colorado, despite the uncertainty and chaos individual coverage in 2018 if they have a the factors that determine their premiums. taking place at the federal level this past year. qualifying life event, such as getting marSC183775 “And there is still time for some individuals ried or divorced, having a baby or losing to get enrolled under this Special Enrollment employer-based health insurance. Period. We encourage people who are eligible To learn more about life change events to take advantage of this extended time,” and special enrollment periods, visit Concontinued Commissioner Conway. nect for Health Colorado’s page, http://conAs a reminder, this applies to people who nectforhealthco.com/resources or contact buy individual health insurance plans, either an agent or your health insurance company though Connect for Health Colorado, or di- directly.
Health Special Enrollment Period ends March 1
COLORADO— The Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA), reminds Coloradans that even though the open enrollment period for individual health insurance ended on Jan. 12, 2018, some people may still have more time to sign up for a health insurance plan through a Special Enrollment Period (SEP). Individual health plan consumers whose 2017 health insurance was not offered for 2018, and who have yet to enroll in health insurance, qualify for an SEP. This SEP is available until March 1, 2018. “Recently, Connect for Health Colorado announced that this year’s enrollment numbers nearly matched last year’s, even though
Wednesday, February 21, 2018
Finance Progress
Page 5
Marijuana money is available for local use
COLORADO— The money from marijuana taxation is out there. All a county, city or school district needs to do is apply for it. Colorado charges three different taxes on marijuana sales: a 15 percent excise tax, a 2.9 percent tax on both medical and recreational sales, and a 10 percent “special sales tax” on retail sales and has a marijuana tax cash fund from which it distributes dollars. Statewide, marijuana shops reported $1.51 billion sales of medical and recreational flower, edibles and concentrate products during 2017, according to Colorado Department of Revenue data released Friday. Adult-use sales topped $1.09 billion during the record year, with the remaining $416.52 million coming from medical marijuana. Colorado collected upward of $247 million in taxes and fees revenue from marijuana sales, according to state finance data. While the bulk of Colorado’s $1.09 billion in 2017 recreational marijuana sales occurred in the state’s population hubs of Denver and Arapahoe counties, rural Las Animas County, population 14,083, led the state with more than $3,100 of recreational cannabis sold for every adult and child. Las Animas led the state in per-capita sales at $3,118, followed by neighboring Costilla County at $1,036. According to a report produced by VS Strategies, a Denver-based consulting firm, some 51 percent of the tax revenue was allocated toward educational purposes, including $117.9 million used to fund school construction projects, while another 14.1 percent went towards substance abuse prevention and treatment programs. Colorado voters were the first in the country to legalize recreational marijuana in November 2012, and the state’s first licensed retail dispensaries opened their doors 14 months later after policymakers put in place a framework for regulating weed and taxing it at nearly
30 percent, including a 2.9 percent sales tax, a 15 percent excise and a 10 percent special sales tax. Coloradans can grow marijuana in their homes for personal use and that changes the tax tally. Up to six plants are allowed per Colorado resident over age 21, with as many as three plants flowering at one time. Beginning Jan. 1, 2018, all residences were limited to a maximum of 12 plants unless certain requirements are met, while counties and municipalities can pass stricter laws. The laws are different for medical marijuana users. Homegrown marijuana or marijuana products can’t be sold to anyone and only licensed grow establishments can sell marijuana products. Prior to recreational sales starting Jan. 1, 2014, analysts expected cannabis would earn the state substantially less than the half-billion dollars already collected. An economic analysis of a study funded by the pro-legalization Drug Policy Alliance in 2012, for example, predicted Colorado could collect upwards of $60 million by 2017; state analysts, meanwhile, predicted sales would generate between $5 million and $22 million in annual tax revenue. Colorado has since collected $76 million in marijuana taxes in 2014, $135 million in 2015 and $198 million in 2016, the report said. Recreational sales through May 2017 already earned the state about $96 million, it’s authors added, putting Colorado on pace to potentially have its best year yet with respect to marijuana revenue. “Marijuana has become the thread that holds our state budget together,” Democratic State Rep. Jonathan Singer said of $500 million in marijuana taxes collected by Colorado, according to The Cannabist. The half-billion earned by Colorado so far includes taxes generated by medical marijuana
sales, which was legalized by the state in 2000 and taxed at only 2.9 percent. Taken together, recreational and medical marijuana sales in Colorado last year surpassed $1 billion, according to previously released statistics. On Jan. 24, 2018, the Colorado Department of Revenue (CDOR) announced its intent to award a contract for ongoing support, licensing and hosting services for CDOR’s current marijuana inventory tracking system, Marijuana Enforcement Tracking Reporting Compliance (METRC), to Franwell, Inc. The department has elected to issue separate nocost contracts for goods and services, including RFID tags/provisioning and industry training/support, which are currently provided to and paid for by marijuana businesses licensed by CDOR’s Marijuana Enforcement Division (MED). “As the primary regulators of the licensed, commercial marijuana industry, public safety and health is always our number-one concern,” said Mike Hartman, CDOR Executive Director. “The insights and analyses that METRC’s seed-tosale tracking system allow us to create have made the system a key piece of our regulatory scheme. It is critical we maintain the current standard of comprehensive marijuana inventory tracking that METRC provides, particularly in light of the software implementation challenges some of the other adult-use states have faced in recent months.” The first $40 million collected each year from the excise tax goes into BEST – the Building Excellent Schools Today fund, which
will back construction projects to renovate or replace deteriorating public schools More than $18 million went to the Department of Public Health and Environment to fund many different programs. They include the Marijuana Education Campaign ($7 million), a state-run program that “encourages young Coloradans to think about how their goals will be easier to achieve without marijuana.” Another $6.7 million went to substance abuse prevention grants. The Department of Agriculture received $3 million for pesticide control, inspection services, 4H and FAA programs and other services. The Attorney General’s office received more than $1 million, including $286,766 for a special prosecutions unit. The Department of Education received $8.4 million for a variety of initiatives, including programs to stop bullying at schools and reduce the number of school dropouts. About half of the money went to the Early Literacy Competitive Grant Program. The Governor’s Office received $216,944, most of which funded the Office of Marijuana Coordination. Pueblo County used $420,000 in cannabis tax revenue to provide college scholarships to 210 students. During a forum in Conejos County in November, State Sen. Larry Crowder reported that a state bill would allow the county to receive money for increased staffing at the beleaguered sheriff’s department – they only needed to apply.
How to save more for FSWCF promotes economic development retirement after age 50
SAN LUIS VALLEY— First Southwest Community Fund (FSWCF) recently launched their new website at fswcf.org to provide a more seamless online experience for individuals and businesses seeking creative funding for their rural Colorado business. The new website includes information on the Intermediary Relending Program, the New Pioneers Microloan Program, the Rural Business Development Grant, and more - including an added section for News and Community Fund success stories. It’s also now much easier to reach out and gain more information regarding sponsorship, partnership, and funding. “The main goal of updating the FSWCF website was to create a modern, easier to navigate platform for individuals and businesses to learn more about the services the community fund offers,” says Kent Curtis, FSWCF’s president. “We’re really excited about the opportunities that a more robust and accessible network will provide in this coming year.” As a 501c3, FSWCF promotes economic development in distressed communities — helping create jobs, increasing wages, and encouraging the development of critical community infrastructure and provide new educational opportunities and financial literacy knowledge for identified populations. It achieves this by providing low-cost business and agricultural lending to create sustainable employment and jumpstart local economies.
“This new website is a long awaited platform that will allow us to do even bigger things in the future,” said FSWCF President Kent Curtis. “Our goals have always focused on supporting small businesses and entrepreneurs who are dedicated to improving the economic sustainability of our rural Colorado communities. With a new website, we can achieve these goals and get the word out about FSWCF more efficiently.” For more information about this new launch and potential 2018 funding opportunities for your rural Colorado business, please contact Roxanne DeMarco, roxanne. demarco@fswb.com. 2018 grant funds are subject to Congressional approval.
About First Southwest Community Fund As a 501c3, First Southwest Community Fund promotes economic development in distressed communities — helping create jobs, increasing wages, encouraging the development of critical community infrastructure. First Southwest Community Fund supports the dedicated entrepreneurial spirit of rural Colorado, by investing in the people, culture, and ideas that fuel innovation and financial knowledge in our community, with an emphasis on areas of greatest need. Please find more information about First Southwest Community Fund at fswcf.org or firstsouthwestcommunity.fund.
Whether it’s advice from their parents, a response to television ads urging viewers to save for retirement, or their own financial savvy, many of today’s young professionals recognize the importance of saving for retirement from the moment they receive their first paychecks. But men and women over 50 may not have been so practical, and many such professionals may feel a need to save more as their retirements draw ever closer. Saving for retirement might seem like a no-brainer, but the National Institute on Retirement Security notes that, in 2017, almost 40 million households in the United States had no retirement savings at all. In addition, the Employee Benefit Research Institute found that Americans have a retirement savings deficit of $4.3 trillion, meaning they have $4.3 trillion less in retirement savings than they should. Men and women over 50 who have retirement savings deficits may need to go beyond depositing more money in their retirement accounts in order to live comfortably and pay their bills in retirement. The following are a few simple ways to start saving more for retirement. • Redirect nonessential expenses into savings. Some retirement accounts, such as IRAs, are governed by deposit limits. But others, such as 401(k) retirement plans, have no such limits. Men and women can examine their spending habits in an effort to find areas where they can cut back on nonessential expenses, such as cable television subscriptions and dining out. Any money saved each month can then be redirected into savings and/or retirement accounts. • Reconsider your retirement date. Deciding to work past the age of 65 is another way men and women over 50 can save more for retirement. Many professionals now continue working past the age of 65 for a variety of reasons. Some may suspect they’ll grow bored in retirement, while others may keep working out
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of financial need. Others may simply love their jobs and want to keep going until their passion runs out. Regardless of the reason, working past the age of 65 allows men and women to keep earning and saving for retirement, while also delaying the first withdrawal from their retirement savings accounts. • Reconsider your current and future living situation. Housing costs are many people’s most considerable expense, and that won’t necessarily change in retirement. Even men and women who have paid off their mortgages may benefit by moving to a region with lower taxes or staying in the same area but downsizing to a smaller home where their taxes and utility bills will be lower. Adults who decide to move to more affordable areas or into smaller, less expensive homes can then redirect the money they are saving into interest-bearing retirement or savings accounts. Many people begin saving for retirement the moment they cash their first professional paycheck. But even adults over the age of 50 sometimes feel a need to save more as their retirement dates draw closer, and there are many ways to do just that. LP183793
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Finance Progress
Wednesday, February 21, 2018
What consumers can do after a data breach As the summer of 2017 drew to a close, news broke of a data breach at the credit monitoring agency Equifax. Reports suggested the breach might have compromised the sensitive personal information of as many as 143 million Americans, or roughly half the adult population of the United States. In the digital age, consumers are more vulnerable to such breaches than ever before. Data stolen as part of the Equifax breach included names, social security numbers and birthdates, among other personal information. Consumers concerned about data breaches can take certain steps to determine if they have been compromised while also taking measures to safeguard themselves against future breaches.
When breaches happen News of the Equifax breach understandably inspired panic among consumers, and future data breaches will be no different. Hackers who gain access to consumers’ personal information can steal identities, file false tax returns, take out loans in unsuspecting consumers’ names, and commit a host of other crimes that can negatively affect consumers’ credit ratings and compromise their ability to secure loans in the future. When a breach happens, consumers should do the following. • Contact the agency that was affected. After acknowledging it had been breached, Equifax set up a website (https://trustedidpremier.com/ eligibility/eligibility.html) where consumers could find out if their information had been compromised by the breach. When using such websites, consumers should make sure they are using secure connections, as they will be asked to enter personal information. • Examine credit reports. Even if individuals’ personal information was not compromised, they can monitor their credit reports for suspicious activity. Many credit card companies now provide monthly credit report updates to cardholders. Individuals should monitor these to see if any new accounts have been opened without their knowledge. If ratings suddenly
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plummet despite relative inactivity from consumers, they should contact one of the major reporting agencies for a thorough report. Such reports are typically free once per year. Future breaches Breaches are seemingly inevitable in the digital age. Concerned consumers can take steps to protect themselves against future breaches. • Continue monitoring credit reports. Individuals should take advantage of the monthly credit rating reports offered by their credit
card companies even if no breaches have been reported. Hackers may sell consumers’ information, which thieves can then sit on for years before ultimately using to commit financial fraud. Routine monitoring can help consumers instantly address any suspicious activity before things spiral out of control. • Place a fraud alert on all accounts. Fraud alerts warn creditors that individuals may have been compromised by past data breaches, forcing them to verify that credit or loan applicants are legitimate before they can open any new
accounts or take out any loans. • File taxes as early as possible. Criminals with access to consumers’ personal information can file false tax returns and steal their refunds before consumers even realize they have been victimized. File early, before thieves have had a chance to file false returns. Consumer data breaches can affect every facet of consumers’ lives. Knowing what to do when such breaches occur and how to reduce their risk of being victimized can help consumers when the next breach occurs. MM17C510
Simple ways to quickly Simple ways to cut boost credit scores mortgage costs
The road to great credit begins with consumers. Consumers who demonstrate an ability to pay bills on time and stay out of debt can make themselves more attractive to prospective creditors, which can ultimately save them thousands of dollars when they purchase homes and/or vehicles. While strong credit scores take years to build, men and women looking to improve their scores can begin doing so rather quickly. Scores will not skyrocket overnight, but they will begin to improve if consumers begin taking the following steps. • Pay bills on time. Paying bills on time is one of the most effective and simplest ways for consumers to improve their credit scores. One of the credit scores lenders use to determine if they will extend credit to a given applicant is the FICO® score, which is generated by the Fair Isaac Corporation. According to the Fair Isaac Corp., a FICO score is broken down into five categories, some of which factor more heavily than others. An individual’s payment history accounts for 35 percent of his or her FICO score, making it the most influential of the five factors for people who have been using credit for a long time. (Note: People with a nonexistent or greatly limited credit history may have their FICO scores more influenced by other factors.) If necessary, set up automatic payments so all bills, but especially bills owed to creditors, such as credit card companies and student loan lenders, are paid on time. • Pay down balances and keep them low. Paying bills on time might not be enough to dramatically improve credit scores if consumers are still only paying the minimum amount each month while maintaining high balances. After payment history, amounts owed is the second biggest influence of most consumers’ FICO scores, accounting for 30 percent of an
individual’s score. So in addition to paying on time, consumers should try to pay more than the minimum amount due each month, ideally paying balances in full each month. • Study your credit report. Credit scores can sometimes fall victim to errors on a person’s credit report. A 2012 Federal Trade Commission Study found that roughly 25 percent of all consumers had errors on their credit reports that adversely affected their credit scores. Consumers who suspect their credit score does not reflect their credit worthiness should examine their reports, which are available to all consumers once a year for free, for mistakes. Report any mistakes to Equifax, Experian and/ or TransUnion. • Wait to apply for new lines of credit or mortgages. Consumers’ credit scores take a small hit each time they apply for new lines of credit, whether it’s a credit card or mortgage. Consumers who want to quickly improve their scores should refrain from applying for new lines of credit until they have increased their scores to a point where they won’t mind seeing those scores take a small dip. Consumers’ credit scores can affect their lives in various ways. While it takes time to build strong credit histories, consumers can take small steps to begin improving their credit scores right away. MM17C516
Monthly mortgage payments are the biggest single expense for many homeowners. So it’s understandable why plenty of homeowners would love to trim those costs. A host of factors determine how much homeowners pay for their mortgages each month. The cost of the home, the amount of the initial down payment and property taxes, which are often folded into monthly payments, will factor heavily into the cost of home ownership. While homeowners may feel as though there’s little wiggle room to cut the costs of their mortgages, there are several ways to do just that and potentially trim years from the life of a home loan. • Make bi-weekly payments. Making bi-weekly instead of once-a-month payments can save homeowners substantial amounts of money. A year’s worth of oncea-month payments equates to 12 payments per year. But homeowners who pay on a bi-weekly basis will make 26 half payments, or 13 full payments, per year. That extra annual payment can be applied directly to the principal, dramatically reducing how much homeowners pay in interest over the life of their loans. • Stop paying PMI. Homeowners whose initial down payments are less than 20 percent of the sale price will have to pay private
mortgage insurance, or PMI. But once the balances on such mortgages falls below 80 percent, homeowners can cancel such insurance. Homeowners may also be able to stop paying PMI by having their homes reappraised. • Refinance the loan. Refinancing a loan also can save homeowners substantial amounts of money each month. Homeowners are typically eligible for lower interest rates when refinancing their loans, meaning they will pay less in interest each month. However, refinancing is not free, so homeowners should first check the going home interest rates and examine their credit scores to see if the interest rate they’re likely to get upon refinancing will save them money. The cost of refinancing might be more than homeowners can save. • Request a tax reassessment. Real estate values increase and decrease, and homeowners who feel their homes have decreased in value can request that their homes be reassessed. Homeowners whose homes are assessed at a value lower than the current value can expect to pay less each month in taxes. Homeowners hoping to cut mortgage costs have various options at their disposal. MM17C555
Wednesday, February 21, 2018
Finance Progress
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Canceling credit cards: Does it help or hurt credit? Credit cards offer many advantages, including providing a measure of insurance when making purchases and enabling an individual to develop a healthy credit score through prompt payment of balances. According to a 2016 Gallup report, about three out of four adults in the United States have at least one credit card — many people have two or three. While there is no magic figure for how many credit cards is the “right” number to have, those shiny plastic cards can have a significant impact on consumers’ financial well-being. People looking to reign in spending or consolidate may make the decision to close cards, but not without wondering if closing accounts is beneficial or detrimental to their financial reputations. The experts at Credit Karma say that there is a common belief that closing a credit card account will always negatively impact one’s credit rating. But that isn’t always the case. Getting the facts about when it can be advantageous to close accounts or keep them open can help consumers maintain strong financial reputations. Utilization ratio Financial gurus at Bankrate.com say that closing credit cards can affect the percentage of consumers’ available credit, which may affect their credit ratings. Closing a particularly high-limit card will increase the percentage of used available credit when spread out across the remaining cards, also known as the utilization ratio. A higher percentage of used available credit can negative affect credit scores. Consumers who currently carry high credit card balances may be smart to keep existing lines of credit open or request increases on the credit limits of accounts they intend to keep before closing some current accounts.
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Consumers should exercise due diligence before closing a credit card account.
a different card that does not charge an fraudulently, consumers may opt to close the account so no other purchases can be annual fee. made. However, creditors also work around this by keeping accounts open and simply Age of credit history Discover says that if a consumer must issuing a new card number. If the decision is made to close a credit close a credit card account, he or she should avoid closing the oldest one. The longer card, do not do so while there is an availan account has been open, the better it is able balance; all balances should be paid off for a credit score because it establishes a before an account is closed. It’s also unwise Annual fees long credit history. According to FICO, It can be wise to close credit cards with the length of consumers’ credit histories high annual fees if the benefits of the cards account for 15 percent of their credit scores. are no longer proportionate to the amount spent on the fees. If cards are being held Fraud or theft only for perks, it may be possible to find In the event a card is stolen or used
Get the facts on life insurance policies
Few people want to face their own mortality when they are in the prime of their lives. However, thinking ahead and making advanced plans can save family members considerable heartache. Life insurance policies can help men and women make things easier for their spouses, children or siblings. Life insurance provides financial security in the event of a person’s death. Such insurance is a key element of estate planning and something all adults must consider. It’s smart to purchase life insurance at a relatively young age because the cost can be lower. Some people put off the process because it can be overwhelming. But Forbes magazine advises that once a person does a little research and learns the terminology associated with life insurance, choosing a policy is not so difficult. • Determine the amount of insurance you will need. Make a list of expected expenses after you pass away. These may include any residual mortgage payments, school tuitions, automotive payments, or funeral expenses. In addition, approximate how much your family will need to live comfortably in your absence. Online calculators can help determine life insurance coverage needs. The New York Life Insurance Company says a quick way to figure out how much coverage you may need is to take your annual salary and multiply it by eight. • Decide on the type of policy. Life insurance policies come in two broad categories: term and whole life. Term life insurance may be less expensive upfront, as it only provides
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coverage for a set number of years. It will only pay out if the policy holder dies during this “term.” Whole life insurance, also called “cash value,” usually costs more, but accumulates a cash value that can be borrowed against, and it pays out whenever a person passes away. • Choose among reputable companies. You want to ensure the life insurance company you pick will be around for years and has a strong reputation, so give ample consideration to each company you explore before making a final decision. • Know the waiting period. Many policies establish a period of time on policies wherein there is very little cash-out value and the company will not pay out the full death benefit. This may be a year or two after opening the policy. Discuss this information with the insurance agent. Life insurance can be a smart financial choice, helping men and women rest easy that their families will want for nothing in the wake of their deaths. LP173816
to close a credit card simply to remove poor payment history from one’s record. Under the Fair Credit Reporting Act, negative data such as late payments remain on a report for up to seven years after the account is closed. Closing a credit card account has its advantages and disadvantages. Consumers should investigate the risks before closing a given account. MM17C520
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Finance Progress
Wednesday, February 21, 2018
Creating possibility in the San Luis Valley
MONTE VISTA— If you measure the San Luis Valley by its people the opportunity for possibility, it’s vast. This incredible community is home to everything from worldclass farmers and ranchers to oneof-a-kind retailers and restaurants. Sunflower Bank has been a part of the San Luis Valley community for over 15 years located at 101 Adams St. in Monte Vista. “Sunflower Bank is the thirdlargest bank headquartered in Colorado, so we draw from that strength to offer commercial, agricultural and retail services to our clients in the Valley,” says Nick Malone, market president. “At the same time, we’re small enough to operate like an entrepreneurial enterprise. We take a personal approach to every account and bring our business lines together to match each customer’s needs.” Malone says Sunflower Bank takes a team approach to business accounts, bringing in various experts to act as partners and offering financial advice and guidance as needed. For area residents, Sunflower Bank offers everything from wealth management to check-
ing and savings accounts. “This community has prospered because people here believe in possibility and are willing to do what it takes to make their dreams come true,” says Malone. “At Sunflower Bank, we help customers create the financial foundation needed to support their goals. One of the bank’s goals is to play an active role in every community it serves. In Monte Vista, Sunflower Bank helps support the Monte Vista Food Bank, Kids Connection, and La Puente as well as the Ski Hi Stampede and the SLV Fair. For the 17th year, Sunflower Bank is also sponsoring the ABC Program. Donations are made to Photo by Chelsea McNerney-Martinez participating schools as people open accounts and swipe their Sunflower Bank presented the local winners of the ABC Program with their checks last May. Drawing windebit cards. In addition, students ners and dedicated scholars were Moses Martinez, $60; Summit Metz, $90; Riley Lester, $50; Alexandra in grades K-12 enter their report Paulson, $90; Azia Deherrera-Valdez, $30 and Vianca Dominguez, $70. cards into a drawing at each branch. Selected students receive $10 for every “A” and their school receives a matching grant if it is part of the program. Sound like an interesting possibility to you? Contact (Maria Aguilar-Branch Manager) for more information on Sunflower Bank and the ABC Program.
Tips to pay off student debt early Recent college graduates may be entering the job market with degrees in tow, but many also are leaving school with sizable amounts of student loan debt. According to a 2017 report from the Federal Reserve Bank of New York, student loan debt rose for the eighteenth consecutive year, while Debt.org reports that student debt in the United States totaled $1.4 trillion in 2017. Canadian students are not faring much better than their American counterparts, owing an average of $28,000 after four years according to the Canadian Federation of Students. Student loan debt is a heavy burden that has short- and long-term affects on borrowers. Sizable student loan debts may affect young professionals’ ability to support themselves, while the Federal Reserve Bank of New York reports that such debt has contributed to a decline in the housing market, as fewer college graduates can afford to buy homes while still in their 20s. The notion of paying off their student loans before they reach maturity may seem implausible to some borrowers. But there are a handful of ways for adults with sizable student debts to do just that. • Make more frequent payments. Many homeowners pay their mortgages off early by making biweekly payments. Doing so means they will make 26 half-payments, or 13 full payments, each year as opposed to the 12 full payments made by homeowners who pay on a monthly schedule. The same approach can be applied to student loans. That extra annual payment each year can gradually chip away at loan balances, helping borrowers pay loans off before they reach maturity. • Prioritize paying off highinterest loans. Many students
finance their educations by taking out multiple loans. If these loans come with different interest rates, borrowers should pay off the highinterest loans first to reduce the amount they’re spending on interest. Borrowers will still need to make minimum payments on other loans, but any extra money they intend to pay each month should go toward paying down the highinterest loan. • Refinance loans. Many recent college graduates do not have lengthy credit histories, and some might be carrying low credit scores. Once such borrowers have shown that they can consistently make payments in full and on time, they can approach their lenders to refinance their loans in the hopes of getting a lower interest rate reflective of their creditworthiness. Refinancing may only be available to borrowers with private loans, but this strategy can save student debt holders a lot of money over the life of their loans. • Take advantage of offers from lenders. Some lenders may reduce interest rates for borrowers who agree to certain terms, such as signing up to receive e-statements or enrolling in automatic payment programs in which money is deducted directly from a borrowers’ bank account on the same day each month. The savings created by such offers may seem insignificant each month, but can add up over time. Paying off student loan debts early can be done, even for borrowers whose debts are tens of thousands of dollars. MM17C560