March 2018 A special advertising edition of
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Beating the Breach
What consumers can do after a data breach
Back on Track Never Too Late
Simple ways to quickly boost credit scores
Retirement saving tips for late bloomers
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March 26, 2018 • Press Enterprise
7 ways to save on food
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7 ways to save on food
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Online banking safety tips
Key traits of a good financial advisor Tips for first-time real estate investors
ood is a necessity and an expense that simply cannot be avoided. A 2012 Gallup poll found that Americans reported spending $151 on food per week. Around one in 10 said they spent $300 or more per week, and those with higher incomes tend to spend more on weekly food bills than people who earn less. Compounding high food bills is the fact that people tend to waste food. According to the American Chemistry Council, roughly 80 billion pounds of food are thrown out every year in the United States.
3. Buy in bulk when it makes sense. Bulk warehouse stores can make it easier to stock up on essentials. But they also can entice people to buy items they really do not need. Consumers should only purchase items that make fiscal sense or ones that cannot be purchased elsewhere for less. Always compare the price per weight or per unit when shopping.
Canceling credit cards: Does it help or hurt credit?
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Lease buyouts smart for some
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When to use credit and debit cards
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What consumers can do after a data breach
How to finance long-term care needs
Potential long-term expenses to account for in retirement
The benefits to joining credit unions
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8 ways to start saving now
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Retirement saving tips for late starters
Simple ways to quickly boost credit scores
Managing credit when buying a car Live comfortably on less
Britons throw away around seven million tons of food and drink per year, says BBC Good Food. Saving money on food may seem challenging, but it doesn’t have to be. With some smart strategies, individuals can reduce their food budgets and still have enough to eat. 1. Store food properly. Pay attention to the correct ways to store food, including promptly refrigerating or freezing items to prevent spoiling. 2. Do your own work. Prepackaged, presliced, or preportioned foods take longer for manufacturers to prepare, and those costs are passed on to consumers. Separating foods oneself and putting them into manageable portions may take a little time, but the savings for consumers could be considerable.
4. Stock up on staples. Be on the lookout for sales on items used frequently, particularly staples that can be stored away. Watch for low prices on coffee, oils and canned goods, stocking up when such items go on sale.
5. Embrace dried and canned beans. Beans offer filling fiber and protein for relatively little cost. They also can be added to meat or vegetable recipes to bulk up dishes.
6. Plan ahead. Planning ahead can save big bucks. Peruse sales before leaving the house and spend time visiting a few different stores to save more money. Make use of store coupon apps to preload savings that can be used at checkout. 7. Explore frugal recipes. Skipping meat or other expensive items once in awhile can help reduce food bills. Save expensive items for treats, which can make you appreciate them that much more. The same concept can be used for dining out. It is relatively easy to save money on the cost of food when consumers make a commitment to being more frugal.
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March 26, 2018 • Press Enterprise
Key traits of a good financial advisor
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rofessional financial advice can be a valuable asset for men and women focused on their futures. Effective financial advisors help their clients navigate the sometimes confusing waters of personal finance, helping them to achieve both short- and long-term goals. Financial advisors can help men and women protect their savings, make smart investments and grow their wealth. What defines the right financial advisor depends on the client. Some financial advisors’ strategies may not appeal to all prospective clients, so it’s important that men and women vet financial professionals before trusting them with their hard-earned money. The following are a few things adults can look for as they begin searching for someone to help them
secure their financial futures.
Credentials: Consumers may benefit by selecting a person who is just a financial planner, and not an accountant or insurance advisor. A financial advisor who is a certified financial planner (CFP) is licensed and regulated, and he or she has taken mandatory classes on the various aspects of financial planning. Humility and an ability to listen: Financial advisors need to be in-tune with their clients’ needs, rather than putting their own best interests first. Northstar Financial Planning notes that good advisors lend support and will ride out the ups and downs of financial decisions. Recommendations: Advisors who have a reliable track record likely have clients
investors cannot count on mortgage insurance to finance their investments in real estate. Investors should not just make sure they can meet that 20 percent requirement, but also ensure they have enough capital left after making their down payments to address any repairs that need to be made. If not, they might have trouble attracting renters willing to pay enough in rent.
Tips for first- time real estate investors
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eal estate can be a good investment that helps build wealth and secure a financial future. According to Investopedia, average 20-year returns in commercial real estate hover around 9.5 percent, while residential and diversified real estate average returns of 10.6 percent. Such figures may seem too good to ignore for many prospective real estate investors. But investing in real estate can be risky, and it’s important that first-time investors consider a host
of factors before deciding to delve into the real estate market. Current finances Real estate can potentially yield big returns, but these may only materialize after investors spend ample amounts of money refurbishing or even maintaining their investment properties. Prospective investors without the capital on hand to finance repairs or routine maintenance may find it difficult to make their properties appealing
willing to vouch for them. Men and women can ask friends, family or coworkers for recommendations regarding financial advisors. Wealth of experience: An advisor who has many years’ experience under his or her belt has likely worked with clients from all walks of life and men and women whose comfort levels regarding risk have run the gamut. That wealth of experience can prove invaluable to clients. Continued learning: Advisors who have memberships in financial associations and continue their education are committed to honing their craft and staying on top of changes in their field. Financial advisors can be assets to people looking to protect their finances. Finding the right one is paramount.
to potential tenants, which can make it harder to meet mortgage payments. Prospective investors who already have sizable debts, be it consumer debt or existing mortgage payments, may want to pay down those debts before investing in real estate. Down payments According to Wells Fargo, mortgage insurance does not cover investment property, and loans typically require a minimum down payment of 20 percent of the value of
the property. So prospective
Interest rates Prospective real estate investors may be surprised to learn that investment property loans are often subject to higher interest rates than those for home buyers borrowing to purchase a primary residence, says Quicken Loans. Investors should not count on getting the same or better interest rates for their investment properties that they did when buying the
homes they currently live in. Financial reserves Some lenders may require that prospective investors have sizable financial reserves before they will lend them money to invest in real estate. Some may require that borrowers have several months’ worth of reserves to finance both their personal lives and their investments. If a 20 percent down payment would make that impossible, then prospective investors may want to wait a little longer to invest and save more money until their financial reserves would prove more acceptable to lenders. Investing in real estate can yield big returns. But firsttime investors should know that such investments are vastly different than investing in a home for oneself.
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March 26, 2018 • Press Enterprise
Online banking safety tips
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n the digital era, many errands that once required leaving the house can be conducted from the comforts of home. Groceries can be ordered online and delivered to consumers’ doorsteps, while bills can be paid online, saving men and women from having to drive to their nearby post office. Online banking has revolutionized the way people manage their money. Investors can buy or sell stocks with the click of a mouse, and money can be moved across accounts just
as easily and instantly. Many consumers now even do their banking on their mobile phones. In fact, a 2016 study from the Federal Reserve found that 67 percent of millennials use mobile banking, suggesting that mobile banking is the wave of the future. While online or mobile banking makes it easy for consumers to manage their money, it’s also potentially much riskier than in-person banking at the bank. Unseen hackers and thieves are lurking online and in places where Wi-Fi is open and free, so online and mobile banking enthusiasts must exercise caution when accessing their accounts. Sign up for two-factor authentication. Some banks and credit card companies now provide two-factor authentication, and some may even insist their customers use it. Two-factor authentication requires two forms of verification before users can log into their accounts. The first might be the traditional username and password, while the second might be a temporary code texted or emailed to users after they log into their accounts. Some consumers may feel two-factor authentication is tedious and slow, but it’s
an effective safety measure that should only delay online or mobile banking by a few seconds. Use only secure network connections. Public Wi-Fi can be convenient, but consumers should never use such connections to do their online or mobile banking. The American Bankers Association suggests consumers always do their online banking via their own private home networks. Consumers who routinely use public Wi-Fi, even if it’s just for basic internet surfing, should log out of mobile banking apps or websites before logging on to public networks. Change passwords frequently and avoid using the same password for more than one account. Many banking websites advise customers if their passwords are weak or strong when customers first set up their accounts. Even if customers’ passwords are deemed strong, it’s best to change them periodically so hackers or criminals cannot guess them. And consumers should never use the same password for more than one account, as that can make it much easier for criminals to steal consumers’ identities. Monitor credit scores. Consumers have the right to one free credit report each year, but many credit card companies now update customers regarding their credit scores once per month. Consumers many need to sign up to take advantage of this service, but doing so is typically free. If credit scores suddenly dip unexpectedly and without reason, consumers may have been victimized by identity theft and can then take the necessary course of action to address the issue. Online and mobile banking is convenient, but consumers must tread carefully when accessing sensitive financial information online.
Canceling credit cards: Does it help or hurt credit?
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redit 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 wellbeing. 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. Annual fees It can be wise to close credit cards with high annual fees if the benefits of the cards are no longer proportionate to the amount spent on the fees. If cards are being held only for perks, it may be possible to find a different card that does not charge an annual fee. Age of credit history Discover says that if a consumer must close a credit card account,
he or she should avoid closing the oldest one. The longer an account has been open, the better it is for a credit score because it establishes a long credit history. According to FICO, the length of consumers’ credit histories account for 15 percent of their credit scores. Fraud or theft In the event a card is stolen or used fraudulently, consumers may opt to close the account so no other purchases can be made. However, creditors also work around this by keeping accounts open and simply issuing a new card number. If the decision is made to close a credit card, do not do so while there is an available balance; all balances should be paid off before an account is closed. It’s also unwise 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.
Consumers should exercise due diligence before closing a credit card account.
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March 26, 2018 • Press Enterprise
Lease buyouts How to smart for some finance
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easing enables many people to drive brand new vehicles, and they can take advantage of the benefits such cars and trucks offer, such as low maintenance. Leasing has been compared to renting a car for a specific period of time. A person is allowed to use the vehicle, but must return it after a few years in very good condition. Lease payments may be considerably lower than financing rates, and some people may be able to lease a particular make or model that would be out of reach otherwise. According to the latest Lease Market Report from Edmunds.com, more new vehicles were leased during the first half of 2016 than during any other such period in history. Lease volume has doubled in the last five years, with millennials and seniors leasing more vehicles than any other demographics. At the end of a lease, people have the option of turning it in and starting a new lease or buying out the lease. Lease buyouts might be the right fit for some drivers. Types of buyouts The Department of Motor Vehicles says there are two buyout options. These include a lease-end buyout and an early buyout. With a lease-end buyout, the
lessee pays the residual value of the vehicle at the end of the lease contract. It is the most common of the options. Drivers can look at their lease agreements to see what the residual amount was calculated to be. Then they can use an automotive price comparison tool, like those offered by Kelley Blue Book or Edmunds, to see if the amount is comparable to the private-party selling price, or the true market value of that vehicle. If the amount is less or very near to the value listed, it could be worth it to engage in a lease-end buyout. The other buyout option is an early lease buyout. This gives lessees the option to purchase the leased car or truck before the end of the contract. Calculating if the value of the vehicle makes such a buyout financially feasible can be more challenging because one still has to factor in depreciation, the amount of money still owed on the lease and what the current market value of the vehicle would be. Reasons for buyouts There are many reasons to choose a lease-end or early buyout. If the vehicle is in poor shape or if drivers have exceeded the mileage limits on the lease, thereby incurring penalties, it may be smarter to buy out the lease. Others may have maintained their leased vehicles and liked the cars so much so that they want to keep on driving them. Buying out a lease can sometimes make the most financial sense for drivers.
long-term care needs
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ailing to plan for long-term care expenses may leave aging men and women with little or no assets late in life. AARP says that the cost of long-term care continues to rise and the array of options can make it difficult for families to find the best, most affordable care. The median monthly costs for a semiprivate room in a U.S. nursing facility hovered around $6,800 in 2016, according to The Genworth Cost of Care Survey. That adds up to roughly $82,000 per year. Individuals who only anticipate hiring a home health aide should know that such options cost an average $3,800 per month. Retirement savings can quickly dry up when long-term care is required. Individuals need to keep in mind that, in 2014, the Social Security Administration said the average month retirement income from Social Security was just $1,294. The National Care Planning Council says that at least 60 percent of all individuals will need extended help during their lifetimes. Ongoing care can last for many months or years. Long-term care needs, including assisted living and nursing home stays beyond a few months, may not be covered by federal health insurance programs, such as Medicare. As a result, it is up to individuals to find ways to finance their care. Long-term care insurance Long-term care insurance is one of the ways to offset costs of care for later in
life. But many people are unaware that this type of insurance exists. A survey conducted by Leger Marketing for the Canadian Life and Health Insurance Association found that 74 percent of respondents said they haven’t included provisions for long-term care in their retirement plans. Long-term care insurance is a safety precaution that can be purchased early in life to plan to help pay for expenses aging men and women may incur in their golden years. New York Life Insurance says that policy holders will be reimbursed for qualified long-term care costs up to a maximum daily benefit amount. Coverage varies, but policy premiums generally increase with the age of applicant. Government aid Government aid is available for U.S. and Canadian residents but qualifications vary and it is usually limited to those with financial
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hardships. Medicaid pays for the largest share of long-term care services in the United States, according to the Administration on Aging. But to qualify, one’s income must be below a certain level and the person must meet minimum state eligibility requirements. Canadian provinces will assess one’s ability to pay and may subsidize care costs. Also, there may only be a handful facilities supported by the government, so applicants cannot be picky about accommodations. Financing long-term care is something individuals must consider as they make their plans for the future. It is a large expense that cannot go unaddressed even though the need for care might be in the distant future.
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March 26, 2018 • Press Enterprise
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March 26, 2018 • Press Enterprise
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March 26, 2018 • Press Enterprise
When to use credit and debit cards
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he decision of whether to use a debit card or a credit card can affect consumers’ credit ratings and make it easier or more difficult to manage one’s personal finances. This decision often depends on the situation and understanding how each of these cards works. Credit cards allow customers to borrow money from the credit card company up to a certain limit with the intent to pay back the amount used at the end of the month. If that balance is not paid in full, customers will be charged interest fees. Debit cards are a direct link to the money a person has in the bank. Debit cards withdraw cash straight from a checking account, so no interest will ever need to be paid on purchases made with debit cards. Since 2004, use of debit cards has exceeded credit cards for purchases made in the United States, reports the Federal Reserve. In 2012, debit cards were used to make 47 billion payments, compared to 26.2 billion payments made with credit cards. But debit cards might not always be the best choice in certain situations. Here are a few ways to weigh the options of what payment method might be best.
Potential long-term expenses to account for in retirement
R If you’re concerned about fraud: Credit Credit cards typically offer better fraud protection than debit cards. If unauthorized purchases are reported, the consumer’s maximum liability is $50, though many credit cards offer zero liability. Debit cards offer some protection, but it may take a little longer to get your money back, and loss responsibility amounts may be higher. If you don’t want to overspend: Debit Staying on budget and not overspending can be challenging when using credit cards. When cash leaves your hand, it is easy to keep track of what you have left. This isn’t as easy when using credit to make purchases. Some shoppers feel they are more likely to overspend when using credit than having money deducted from their bank accounts via debit cards. Bank of America says record-keeping is made simpler with debit cards and they are a great way to avoid spending more money than you have available.
If you like incentives: Credit Credit cards are still the best way to earn rewards on purchases made, and credit card companies recognize the rewards market is more competitive than ever before. From airline miles to cash back bonuses to points toward vacations, credit card companies now offer a host of benefits that debit cards do not offer. But industry analysts at CreditCards. com say the industry is so competitive that many banks are trying to attract new customers and keep current ones happy, so debit card users may be able to earn some perks if they are not doing so already. If you’re shopping at small businesses: Debit Business Insider says it costs small-business owners more to process credit transactions than transactions in which customers use a debit card or cash. By using debit cards when patronizing local businesses, consumers can help small business owners keep more money in their pockets. Debit and credit cards are secure and convenient ways to shop. One card may be better in certain instances than the other.
etirement planning involves more than just investing in a 401(k) and/or IRA. Individuals who hope to live comfortably in retirement must account for various expenses, including those associated with their health. A 2013 report from the U.S. Senate’s Commission on Long-Term Care found that each year an estimated 12 million adults in the United States require some type of long-term care. Planning for the following potential expenses can help men and women ensure they will have enough money to live well in retirement. Housing: Many individuals would prefer to spend their golden years living in their own homes. However, adults who can no longer take care of themselves and/or their homes may need to move. Homeowners who simply want to downsize may be able to finance their transitions to retirement communities by selling their existing homes. But those who need to move into assisted living facilities may find that even selling their homes might not provide enough capital to pay for such residences. According Genworth’s 2016 Cost of Care Survey, the annual cost of assisted living facilities greatly varies by state, with costs as high as $65,550 in Massachusetts and as low as $30,438 in Missouri. Whether they invest in long-term care insurance or develop another plan with their financial advisors, men and women must consider ways to finance potential housing costs in retirement. Renovations: Home renovations are another potential cost in retirement.
Aging men and women who can no longer comfortably navigate staircases but are otherwise healthy may need to renovate their homes to account for their limited mobility. Such renovations might include the installation of a staircase chair lift and/or a ramp connected to the entryway of a home. Some may even need to convert a firstfloor den or living area into a bedroom, which may also require adding a full bathroom. Maintenance: Homeowners who want to stay in their homes in retirement must also factor potential maintenance costs into their retirement plans. Aging men and women may no longer be capable of maintaining their properties in retirement. Consider the potential costs of landscaping, home maintenance and maid services when making a retirement plan. Transportation: Diminishing vision and slower reaction times compel many retirees to give up driving. But retirees who still enjoy getting out and about will still need a way to get around. Moving to a retirement community with daily shuttle service to and from town centers is one way for seniors who no longer drive to get around. But men and women who do not want to move to such communities will need to find alternative means of transportation, the costs of which can add up quickly. Financial freedom in retirement is a goal for many working professionals. Attaining such freedom involves planning and saving for all potential expenses in retirement.
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March 26, 2018 • Press Enterprise
What consumers can do The benefits to joining after a data breach credit unions
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s 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 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 Gordon C. Bitler – James C. Dunn how to Financial Representatives, Lincoln Investment reduce their • IRA • Life Insurance • Long Term Care Insurance risk of being • Retirement Planning • College Planning victimized • Fixed & Variable Annuities • Mutual Fund Investments Financial can help Services • 401K & Pension Rollovers Provided: consumers • Tax Sheltered Investments when the • Investments • Stocks & Bonds next breach 1214 State Route 93, Suite 1, Berwick, PA occurs. or
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any people conduct their financial business with banks. But credit unions provide a host of benefits that consumers who have always worked with banks may be unaware of. Credit unions are similar to banks. Perhaps the biggest difference between credit unions and banks is that the former are nonprofit organizations. Credit unions tend to be smaller than banks, and membership may be limited to certain people based on preestablished criteria. For example, some credit unions may offer membership only to people who live within a given postal code, people who belong to specific unions or trade groups, or students/employees of certain schools. According to statistics from the Credit Union National Association, 3.7 million people joined a credit union in 2015, and numbers are now at an all-time high. That’s likely because there are many perks to joining a credit union.
Why choose to join a credit union? The financial resource Bankrate.com says that, since credit unions are not-for-profit entities, they can pass on extra money to their members through higher interest rates on savings accounts, CDs and other products. This also enables them to offer lower interest rates on loan products and credit cards. Another advantage to credit unions is that they are cooperatives owned and operated by their members. This gives members a say in institutional decisions, and credit unions typically provide exemplary customer service because members are part-owners. Credit unions typically charge fewer fees than national banks. Money Crashers says that many credit unions waive fees on checks, electronic transactions and withdrawals, and they do not require minimum balances. Overdraft fees, where applicable, tend to be lower than traditional banks. Can anyone join a credit union? Credit unions have limited eligibility by law. Customers cannot open an account in any credit union they choose; they must meet certain requirements. These imitations should not deter prospective customers, as many adult consumers can find credit unions they’re eligible to join. Individuals shopping around for a place to put their money may find that credit unions are just what they need.
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March 26, 2018 • Press Enterprise
8 ways to start saving now
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aving 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 of Canadians are living within $200 per month of not being able to pay all of their bills or meet their debt obligations. 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 for that morning cup of Joe. 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.
Simple ways to quickly boost credit scores
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he 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.
March 26, 2018 • Press Enterprise
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Retirement saving tips for late starters
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espite countless television ads touting the virtues of retirement planning, it seems many people are not getting the message. According to a survey from GOBBankingRates.com, one-third of Americans have nothing saved for retirement. The picture is not any rosier in Canada, where Statistics Canada reports that just 65.2 percent of the country’s 14 million households contributed to a retirement plan in 2015. Financial advisors recommend men and
women begin saving for retirement as early as possible. The longer people delay opening a retirement account, the less time their money will have to grow. Those who never open such accounts may not be able to meet their cost of living in the future. While it pays to start saving for retirement early, late bloomers who need to catch up should know that it’s never too late to start. Sign up for an employer-sponsored retirement account. Many employers
reduce risk as they get older. That approach arrange for retirement savings accounts like a 401(k) for their should still govern late bloomers’ investing employees. Such accounts are decisions, as high-risk funds that don’t typically tax-deferred. As a result, perform well could leave aging investors with men and women likely won’t even little to nothing come retirement. Prospective notice the money missing from investors who need help choosing the right their paychecks each month. Take funds for themselves should contact a advantage of such offerings if they financial advisor. exist. Such opportunities can be Cut spending. Men and women getting even more beneficial to late bloomers a late start on retirement saving should whose employers match contributions examine their monthly expenses, looking for up to a predetermined percentage. places to cut costs so they can reallocate Start saving as much as possible. those funds for retirement savings. Some Many people contribute 6 percent ways to considerably reduce monthly of their pay to a retirement savings expenses include cutting the cord with a account such as a 401(k). That rule cable provider, driving a preowned vehicle of thumb may be enough for young instead of a new model and downsizing to a workers, but late bloomers may need smaller home. to contribute a higher percentage of Men and women who have delayed saving their incomes if they hope to catch for retirement should not panic. While it’s up. If 10 percent is doable, then always best to begin saving for retirement contribute 10 percent, being sure as early as possible, there are ways for late to diversify how that 10 percent is bloomers to catch up and/or create a decentinvested. Workers who can afford to sized nest egg for their golden years. contribute more might A dvertisem ent want to explore other Barron’s Again Ranks Local Financial retirement account options so they avoid putting all of their Advisor among Top 50 in Pennsylvania eggs into one basket. Williamsport, PA – March 14, 2018 – The Barron’s Magazine issued March 10, 2018, Avoid high-risk announced its 2018 Top 1200 Financial investments. Investors trying Advisors list ranking Barbara B. Hudock, CEO to catch up on retirement and Founding Partner of Hudock Capital Group, as one of the Top 50 Financial Advisors in savings may be tempted to Pennsylvania. This is the ninth year Hudock has invest their money in highbeen included on this list as one of the most risk funds with the hope of successful financial advisors in the U.S. This year’s list ranks Hudock as the second highest making up ground quickly. ranked woman financial advisor in But investors typically want to
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Pennsylvania. Published by Dow Jones & Company since 1921, Barron’s covers U.S. financial information, market developments and relevant statistics. The publication releases this list annually to recognize leading financial advisors within the industry on the basis of the volume of assets under management by the advisor and his or her team, revenues produced for the advisor’s firm, the advisor’s regulatory record, the advisor’s quality of practice, and the advisor’s and his or her firm’s philanthropic work. Hudock, who holds both the Certified Investment Management Analyst (CIMA) and Certified Portfolio Manager (CPM) professional designations, recently marked 43 years of experience in the wealth management industry. “I am deeply humbled to be included again among our nation’s top financial advisors,” said Hudock, “and I am proud to share this profound honor with our entire team of experienced professionals who devote themselves to making a positive and profound difference in the lives of our clients and the communities we serve. It is our privilege to help our clients realize their financial goals through dynamic, tailored planning and investment strategies that are firmly grounded in a deep sense of purpose.” In addition to personally focusing on the needs of high-net-worth individuals and families, Hudock’s philosophy of strategic philanthropic community support is a core value of the firm. Embraced by the entire team and reflecting the same philosophy of the majority of the firm’s clients, Hudock and her team consistently support a variety of arts, health and education non-profit organizations throughout the region. In recognition of this passion for philanthropy, the Hudock family received the Lifetime Philanthropist Award from the Susquehanna Health Foundation at the Lifetime Achievement Awards ceremony in May 2017. In addition, Barbara and her family were presented with the Philanthropist of the Year Award by the Central PA Chapter of the Association of Fundraising Professionals in October 2017. About Barbara B. Hudock: She currently serves on the boards of Susquehanna Health Foundation, The Woodcock Foundation for the Appreciation of the Arts, The Community Arts Center, and WVIA Public Television. She is also an active member on the Pershing Advisor Solutions Advisory Council and is often invited to present at industry conferences. Barbara and her husband, Mike, have two grown children. Barbara’s hobbies include skiing, reading, is a yoga enthusiast and a lover of the quoted word.
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March 26, 2018 • Press Enterprise
Managing credit when buying a car
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any people in the market for new vehicles intend to lease or finance a car once they find the make and model they want. Such an approach will necessitate a credit check. Credit checks make some consumers, even those who have relatively good credit, uncomfortable. But when managed well, credit and checks on individuals’ credit ratings can go smoothly and save drivers considerable amounts of money over the life of their leases and auto loans. Don’t leave room for surprises. Even consumers who feel they have firm grasps on their credit scores should check their scores before they go shopping for leases or auto loans. Reports may contain errors that can affect the interest rates lenders are willing to give lessees or borrowers. Fixing mistakes in advance of shopping for a car ensures drivers they will get the best
interest rate and loan terms possible for someone in their financial standing. Clean up a score if it falls short of expectations. Buyers who don’t know their credit scores may be disappointed if those scores come back lower than they expected. Numerous factors, be it missed payments or high debt-to-credit ratios, can lower credit scores. Even buyers with good jobs and money in the bank may not have good credit scores. When possible, buyers with low credit scores should wait until they can improve their scores before shopping for a lease or loan. The higher buyers’ credit scores, the lower their interest rate will likely be, saving them considerable amounts of money over the life of their lease or loan. Wait before having your credit run. Some auto dealers may want to run prospective buyers’ credit histories the moment those
Live comfortably on less
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any people look toward retirement with mixed feelings. There is the anticipation and excitement of no longer having to stick to a set schedule. However, there may be some trepidation about living without a steady income. Bloomberg financial experts found the number of Americans aged 65 and older without a disability that weren’t in the labor force rose to 800,000 in the fourth quarter of 2016. This has become a long-standing trend of Baby Boomers leaving the workforce and entering retirement. Yet, a Statistics Canada study of people between the ages
buyers step onto their lots, but it pays for consumers to be patient and wait until they have found a vehicle they like before agreeing to a credit check. Each time a person applies for credit, his or her credit score dips. But according to Bankrate. com, applicants who file all of their loan applications within one two-week period will only have those applications count as a single credit inquiry. Don’t overdo it. Buyers with great credit scores may be tempted to stretch their automotive budgets. But drivers who spend more they can afford may soon find that their excellent credit ratings are suffering. Stay on budget so payments can be made on time and credit scores stay strong. Buying or leasing a new vehicle can be made easier when buyers enter the process with strong credit scores.
60 and 64 who had left long-term employment found 43 percent of them were working again, most within a year of leaving their job. Although boredom may have compelled many of those people to reenter the workforce, some may have started working again to make ends meet. Researchers found the higher the earnings in one’s late 40s, the more likely a retiree is to go back to work. While retirees may need to alter their spending habits, it is possible to live happily on less. Here are some ways to do just that. Accurately assess home expenses. The National Foundation for Credit Counseling says the cost of home-related expenses accounts for roughly 45 percent of spending for retirees. Individuals can add up exactly how much their homes are costing them and then decide if downsizing is a practical solution. Downsizing has a host of benefits, not the least of which is reducing housingrelated expenses. Invest in health care. Unexpected health care costs can quickly deplete individuals’ finances. That’s why it is essential to have a solid insurance plan in place. Health care planning also may include thinking ahead to long-term care, such as assisted living and nursing homes. One may have to make concessions elsewhere, but investing in health care can assuage concerns men and women might have about the cost of living in their golden years. Use alternative transportation. Cars can be expensive. A budget-friendly alternative to driving is to use public transportation or transportation services provided to seniors free or for nominal fees.
more meals at home can help seniors save Take advantage of senior discounts. Many restaurants, stores and service centers offer money. The market research firm NPD Group discounts to seniors. The starting age for found that in-home meals cost roughly onediscounts may vary from store to store, so third of what it costs to eat the same food always ask before cashing out. at a restaurant. Save dining out for special Shop for food differently. Bulk buys may occasions. have been appropriate for men and women Retirees can make changes to save money when there were kids running around, without negatively affecting their quality of but empty-nesters can cut back on food Firstand Columbia expenses. Shopping sales making3x5.crtr - Page life. 1 - Composite