At Ingersoll Rand Federal Credit Union, we believe everyone deserves to age with dignity, security, and peace of mind. On Elder Abuse Awareness Day, we stand with our community to raise awareness about the growing and often silent crisis of elder abuse—especially financial abuse, which can have devastating consequences on older adults’ independence and wellbeing. What Is Financial Elder Abuse? Financial elder abuse occurs when someone illegally or improperly uses an older adult’s money, property, or assets. This can take many forms, including:
How to Spot the Warning Signs If you notice any of the following, it could be a red flag:
If you suspect someone is being financially exploited, don’t ignore your concerns. Here are steps you can take:
At IRFCU, we’re committed to protecting all members—especially our seniors—from fraud and financial exploitation. We offer tools and support to help guard against abuse:
Elder abuse, especially financial exploitation, is not just a personal tragedy—it’s a community issue. By staying informed, staying vigilant, and standing up for those who may not be able to stand up for themselves, we can protect the people who built and shaped our communities. If you or someone you know needs help, contact IRFCU today. Our team is ready to assist with care, confidentiality, and compassion. Your money. Your trust. Your Credit Union.
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As nonprofit institutions, credit unions have long enjoyed tax-exempt status. This enables them to pass on the savings to their members through higher dividends and lower interest rates on loans. This member-first approach is the reason more than 140 million Americans choose credit unions.
However, the new administration and Congress are moving fast on tax reform, and this can mean adding a new tax on credit unions and their members. Let’s take a look at what this means and steps you can take to prevent it from happening. The political conversation Several states and federal legislators are reviewing all policies that affect financial cooperatives. Proponents of these changes argue that all financial institutions should contribute equally to state and federal revenues, while opponents maintain that credit unions provide essential community benefits that would be jeopardized by new taxes. This debate is fueled by larger conversations about fiscal policy, the role of cooperatives in the economy and how best to support local communities in times of economic uncertainty. How credit union tax status may change Currently, the tax-exempt status of credit unions is based on their nonprofit, member-focused structure. However, in today’s shifting political landscape, some lawmakers and financial institutions have questioned whether credit unions should continue to benefit from this exemption. This can impact credit unions and their members in a big way. Potential changes might include:
What you can do about the potential changes Credit unions need you! Every credit union member needs to join this fight. It’s important for federal lawmakers to know that getting rid of the credit union protected federal income tax status would hurt the people they were elected to serve. A new tax on credit unions could significantly hurt your financial well-being. You may have to pay fees on checking accounts and pay higher interest rates on loans. In addition, your savings accounts may grow at a slower pace if your credit union needs to lower the offering rates on share/savings products. Take action now! Send a message to our state representative and senator today! OR visit Don't Tax My Credit Union and tell congress! The sooner we make our voices heard, the better the chance we have of preventing the new legislation from being passed. Do it today! Taxes can seem daunting, especially when you’re just starting out. Here’s everything about taxes you wish you’d learned in school.
1. Taxes are inevitable The first thing to know is that taxes are a part of life. Whether you’re earning a paycheck, running a business or investing, you’ll interact with the tax system. The key is to be informed and organized. 2. Your paycheck doesn’t show the whole picture If you’ve ever wondered why your take-home pay is less than your salary, taxes are the answer. Employers withhold income taxes, Social Security and Medicare from your paycheck. This is called “pay-as-you-go” taxation. Review your W-4 form when you start a new job or when your financial situation changes. This form determines how much federal income tax your employer withholds. Claiming too many allowances could lead to a big tax bill in April, while too few may mean you’re overpaying. 3. Tax deductions and credits are your friends One of the most confusing aspects of taxes is the difference between deductions and credits:
4. Filing isn’t as scary as it seems Gather all your important documents:
5. Keeping records is crucial The IRS recommends keeping tax-related documents for three years. This includes:
6. Understand the difference between a refund and a bill Getting a tax refund may feel like a bonus, but it means you paid more in taxes than you owed. On the flip side, owing taxes at the end of the year can be stressful. To avoid surprises, adjust your withholding or make estimated tax payments if you’re self-employed. 7. Retirement accounts offer tax advantages It’s important to know how powerful retirement accounts are for saving on taxes. Contributions to traditional IRAs and 401(k)s are often tax-deductible, reducing your taxable income. Roth IRAs don’t offer an upfront deduction, but your withdrawals in retirement are tax-free. Taking advantage of these accounts can help you build wealth while lowering your tax burden. 8. State taxes matter, too Most states have income taxes, and each state has its own rules and rates. Research your state’s tax laws to avoid surprises and plan accordingly. 9. Deadlines are non-negotiable The IRS tax filing deadline is typically April 15, but it may vary if on a weekend or holiday. Missing this deadline can result in penalties and interest on any taxes owed. Use this guide to learn all about taxes. When it comes to life skills, managing credit cards is one of the most important lessons. But, mastering the ins and outs of responsible credit card management can be the key to a lifetime of financial wellness. On the flipside, irresponsible credit card usage might trigger a downward spiral toward long-term debt and not being able to get larger loans later on. Here are the basic credit card smarts to know.
Understand how credit cards work A credit card is a short-term loan. So there is an expectation that you’ll pay it back — ideally on time and in full. Many first-time credit card owners don’t realize that paying only the minimum balance can lead to a lot of interest charges, and thus, make every purchase more expensive over time. Know the annual percentage rate (APR) on each of your credit cards and understand how interest accrues for times when you must carry a balance on your card. Build credit early Your credit score plays a pivotal role in your financial life. It can impact everything from your ability to rent an apartment to securing a car loan or even landing a job. It’s also super-important to start building your score as early as possible because the length of your credit history makes up a large percentage of your credit score. Paying your bill on time and keeping your credit utilization low are key factors in keeping a healthy credit score. Use your credit card like a debit card Credit cards make it easy to spend money you don’t have. As a teenager or college student, the temptation to swipe for meals, new clothes or gadgets is hard to overcome. It’s important to remember, though, that every swipe adds up. Losing track of your spending might bring a balance that’s difficult to pay off. Budgeting and tracking expenses are crucial habits to develop early on to avoid credit card debt. Never miss a payment Never miss a credit card payment, even if you can only afford to pay the minimum payment. Missing just one payment can have a bad impact on your credit score, in addition to late fees and penalty interest rates. Understand rewards and perks Credit cards often come with rewards programs, cash-back options and perks, like travel insurance or purchase protection. While these benefits can be valuable, they shouldn’t drive your spending. Make sure you weigh the potential costs of using your credit card for purchases before deciding to whip out the plastic. Avoid credit card traps Credit card companies don’t always make their terms crystal clear, and that’s no accident. Before signing up for a new credit card, read the fine print. For example, an enticing 0% APR offer might revert to a much higher rate after the promotional period. Learn about credit utilization and its impact Credit utilization refers to the ratio of your credit card balance to your credit limit. This percentage significantly impacts your credit score. It’s best to keep your credit utilization (across all your cards) below 30%. Use these tips to learn how to manage your credit cards responsibly. Managing your money doesn’t have to be hard! Here’s how to budget in seven simple steps.
Step 1: Know your income Before you can plan your spending, identify exactly how much money is coming in. List all sources of income in your household, including:
Step 2: Track your expenses Now you’re ready to track your spending. Keep a log of every purchase you make over 30 days. Divide your expenses into the following categories:
Step 3: Set financial goals Having a clear financial goal will motivate you to stick with your spending goals. For example, you may want to pay off high-interest debt, save up for a large purchase or prepare for retirement. Clarify your goals before moving on. Break your goals into short-term goals (saving $500 in three months) and long-term goals (paying off $20,000 in student loans over five years). Step 4: Choose a budgeting method Choose the budgeting method that aligns with your personality and lifestyle:
Step 5: Trim your spending where needed Budgeting can show you where you’re leaking money. There’s no need to sacrifice all indulgences, but trimming unnecessary expenses can free up money for savings or debt repayment. Here are some tips for trimming expenses:
Step 6: Build an emergency fund Without an emergency fund, any unexpected expense can throw off your budget and set you back with your financial goals. Aim to save up at least $1,000, then gradually work up to 3-6 months’ worth of living expenses. Step 7: Review and adjust Life is unpredictable, and so is your budget. Review it monthly to ensure it reflects your current income, expenses and goals. Tips for sticking to your budget Follow these tips to stick to your budget:
If there’s one financial concept that has the power to change lives, but is underappreciated, it’s compound interest. For most of us, compound interest wasn’t covered in school, leaving us to stumble upon its magic later in life. And it’s sometimes too late for us to fully benefit from its power. Here’s why understanding compound interest early could make all the difference.
What is compound interest? Compound interest is the process of earning interest on both the initial principal of an investment and the accumulated interest over time. In other words, your money makes money, and that money makes more money, too. Compound interest has tremendous potential to grow wealth when applied consistently over time. An example of compound interest Imagine you invest $1,000 at a 5% annual interest rate. If the interest is simple (not compounded), you earn $50 annually. After 10 years, you have about $1,500. But, with compound interest, you earn interest on the $1,000 in year one, then on $1,050 in year two, and so on. After 10 years, your $1,000 grows to $1,628.89 — not because the rate is higher, but because of the compounding effect. Why timing matters Compound interest thrives on a single crucial element: time. The earlier you start saving or investing, the more exponential the growth. For example, investing $200 a month at age 25, with an annual return of 7%, will net you nearly $480,000 by age 65. If you start the same plan at age 35, you’ll only have approximately $227,000 by age 65. Lessons on compound interest you wish you’d learned in school Here are the most important principles of compound interest: 1. Start early, even with small amounts. Compound interest needs time to work its magic, and even a small amount of investing early in life could lead to significant returns over time. 2. The Rule of 72. Divide 72 by your annual interest rate, and you’ll get the number of years needed for your investment to double. Learning this trick early can inspire better saving habits. 3. Compounding works for debt, too. Credit card debt, for example, compounds at alarming rates, turning small balances into financial nightmares. 4. Harness the power of automation. Setting up automatic transfers to savings or investment accounts ensures consistent contributions and removes the temptation to spend. Why understanding compound interest can be life-changing Understanding the concept of compound interest can truly be life-altering. Here’s why:
How to make up for lost time It’s not too late to start harnessing its power. Here are a few steps to get going:
In today’s digital world, debit card fraud is an ever-present threat. Among the many tactics scammers use, debit card takeover scams are particularly alarming. These scams can result in unauthorized access to your financial accounts, drained bank balances, and countless hours spent trying to recover your hard-earned money, which is often futile. The good news? By recognizing the warning signs and taking proactive measures, you can safeguard yourself against such attacks.
How it works: Scammers often call, text, or email you posing as your financial institution. They will go as far as making the numbers or email addresses appear to be from the real institution. They give you enough information to make you believe it is legitimate, like card numbers, phone numbers, and even addresses. Then they will try to scare you with some sort of threat, like a fraudulent charge, or overpayment. The scammers then ask for account or personal information. They will ask for things like pin numbers, social security numbers, or passwords. LEGITIMATE financial institutions will never call you requesting sensitive information this way. How to Avoid Falling Victim to This Scam Be Wary of Suspicious Calls
Debit card takeover scams are unsettling, but with awareness and proactive steps, you can protect yourself. Educate yourself about the latest fraud tactics, remain cautious with your financial information, and always trust your instincts. Remember: when in doubt, contact your bank or credit union directly to verify any suspicious communication or activity. By staying vigilant, you can safeguard your finances and peace of mind. Bitcoin ATMs are becoming increasingly common, appearing in gas stations, grocery stores, smoke shops, and other locations. However, scammers are exploiting these machines to steal money from unsuspecting victims. According to the Federal Trade Commission, consumer losses from Bitcoin ATM scams have reached $114 million—and this alarming trend has even affected our local community.
How it works: Scammers typically call victims and create a sense of panic by presenting an urgent and dire situation. Using intimidation and pressure, they convince the target that the only resolution is to withdraw money from their bank account and deposit it into a specified Bitcoin ATM. Unfortunately, due to the nature of Bitcoin and its systems, once the funds are transferred, they cannot be recovered. How to Avoid Falling Victim to a Bitcoin ATM Scam
McAfee imposter scams are a type of phishing or fraud where scammers pretend to be from McAfee, a well-known antivirus company, to deceive individuals into giving away sensitive information, money, or access to their devices. Here's how to spot such scams and what to do if you’re targeted:
We advise that you immediately shut down your computer. DO NOT click any links provided. DO NOT call any number provided. Do not let their manufactured urgency scare you into giving the scammers any sensitive information.
Q: How can I determine if a debt consolidation service is legitimate?
A: In a debt consolidation scam, an alleged debt consolidation service will reach out to an individual with an offer to consolidate all debt into one low-interest loan. But, after fees and information are collected, the “company” vanishes and never fulfills its promise of moving the debt. Debt consolidation scams can be difficult to spot, so it’s a good idea to learn how to recognize the red flags. Here’s how to determine if a debt consolidation service is legit. Check accreditation and licensesLegitimate debt consolidation companies should be accredited by recognized organizations like the National Foundation for Credit Counseling (NFCC) or Financial Counseling Association of America (FCAA). These organizations set strict ethical guidelines for member companies. Also, many states require debt consolidation services to hold a license to operate. You can verify a company’s legitimacy by checking with your state’s regulatory body. Research the companyThoroughly research the company by checking reviews from previous clients. You can also look up the company on sites like the Better Business Bureau (BBB) and Trustpilot for honest customer feedback and ratings. If you notice a pattern of complaints, especially regarding shady business practices, take it as a signal to avoid them. Understand the fees and costsLegitimate debt consolidation services should be transparent about their fees. If a company is vague or hesitant to detail costs upfront, this is a big-time warning sign. Typical fees can include origination fees for setting up the loan or service, and some may charge a percentage of the debt amount. However, any high and unexplainable fees should be considered a red flag. Be wary of upfront feesBe cautious of any service wanting payment before doing anything. This is often a telltale sign of a scam. Genuine debt consolidation services usually take their fee from the amount saved or through regular payments once the debt restructuring or consolidation is in progress. Evaluate the terms and interest ratesA legitimate debt consolidation service will offer clear and reasonable terms. Before signing up, review the proposed interest rates and compare them to your existing debts. While the purpose of debt consolidation is to lower your overall interest rate, some companies may offer terms that don’t actually do that in the long run. Avoid companies with claims that sound too good to be trueOne major sign of a debt consolidation scam is a company that makes outrageous promises. If a service claims it can “erase your debt overnight” or “guarantee results,” proceed with caution. No legit company can promise to remove your debt entirely without repayment or to erase it from your credit history instantaneously. Ask about their debt counseling servicesMany legitimate debt consolidation companies offer credit counseling services as part of their offering. These services should include educating you on managing your debt, budgeting and financial planning. This ensures you don’t fall back into financial trouble later. If a company isn’t interested in helping you improve your financial habits and only focuses on consolidating your debt without any long-term guidance, it’s worth reconsidering your choice. Consult with a financial advisorA third-party professional who is not tied to the debt consolidation company can help you review the terms and ensure the option you’re considering is truly in your best interest. They can also help you weigh other potential solutions, such as debt management or bankruptcy, depending on the severity of your situation. Red flags Before choosing a debt consolidation service, check for these warning signs:
Stay alert and stay safe! Thanksgiving isn’t cheap! With the costs of food, decor and travel, there are so many expenses to cover. With a bit of planning, though, you can enjoy a festive holiday without breaking the bank. Here’s how to save on Thanksgiving costs this year.
Start your shopping early Retailers start displaying Thanksgiving staples early, so if you start ahead of time, you can build up your supplies over weeks while spotting the best deal on everything. Plan your menu around these deals to save even more. Stick to your list and budget Before starting your prep, take the time to create a Thanksgiving shopping list and a budget for all your expenses. Without a budget, it’s easy to go overboard with your shopping. Be sure to include all Thanksgiving expenses in your budget. Plan your travel wisely If your Thanksgiving plans include traveling, follow these tips to keep costs low. First, choose to fly on slower travel days. Flying the Monday before Thanksgiving will generally net you cheaper tickets than traveling on Tuesday or Wednesday. You’ll also want to book tickets at least six weeks ahead so you don’t end up paying a premium for last-minute plans. Finally, consider traveling lightly to avoid baggage fees. Go potluck Save on your Thanksgiving dinner costs by sharing the load and going potluck. Ask each of your guests to bring along one dish for a dinner that’s easier to prepare and lighter on the wallet. As a bonus, your dinner will have a lot more variety and will likely be more enjoyable as well. Keep it simple Thanksgiving is about spending time with the people who matter to you most and expressing gratitude for blessings in your life. Keep this in mind as you prepare for the holiday and resist the pressure to go overboard with food or décor. A simple meal served by a calm and present host can be more meaningful than an extravagant spread prepared by a cook who is frazzled and worn out. Decorate on a budget Instead of spending boatloads of money on store-bought décor, make your own with items you already have. Beautiful fall leaves, pinecones and branches can be used to create striking centerpieces and table settings. You can also repurpose things you already own, like Mason jars, candles and baskets. Use these tips for a memorable Thanksgiving on a budget. Q: This time of year can be expensive, so I’m looking to pad my pockets with some extra cash. What are some side hustles I can do during this holiday season?
A: The holiday season can take a toll on anyone’s budget. Here are five side hustles you can do this holiday season to earn some extra money: Holiday gift-wrapping serviceGift wrapping can be time-consuming, and many people would gladly pay someone else for this task, especially during the busy holiday season. You can offer your services in several ways:
Holiday light installation Stringing up those lights on the roof, trees and around the yard can be a big hassle. This is where you come in! Offering a holiday light installation service can be a lucrative side hustle. Here’s how to get started:
Seasonal baking or cateringThe holidays are the perfect time to turn your kitchen into a money-making machine. From cookies and cakes to holiday-themed dishes, people love having homemade goodies at their holiday gatherings, but not everyone has the time to make them. Ideas for seasonal baking or catering include:
Freelancing onlineIf you prefer staying indoors during the cold winter months, online freelancing offers a flexible and profitable way to earn extra income. Popular freelance opportunities include:
Personal shopping and errand runningBetween gift buying, holiday party planning and traveling, there’s not much time to catch a breath during the holiday season. If you have a knack for shopping or enjoy helping others get things done, consider offering a personal shopping and errand-running service. Here’s how you can turn this into a side hustle:
Unless you’re an auto mechanic or self-professed expert on cars, you likely don’t know all there is about the inner workings of your car. This can make you vulnerable to falling for an auto repair scam, which can be challenging to spot.
Here’s what you need to know about auto repair scams, and how to keep yourself from falling victim. How auto repair scams play out Auto repair scams can come in many forms, but they generally follow a similar pattern. Here are a few common scenarios:
Look out for these warning signs that you may have been targeted by an auto repair scam:
Protect yourself Here’s how to protect yourself from falling victim to an auto repair scam. First, before hiring a mechanic or heading to an auto repair shop, do your research. Look up reviews online, ask for recommendations from friends or family and check the shop’s credentials. It’s also recommended that you familiarize yourself with your car’s basic maintenance needs and how it functions. The more you know, the less likely you are to be taken advantage of. Next, get a second, or even third opinion on any major repairs before agreeing to have work done. Comparing estimates can help you determine if a shop is overcharging or recommending unnecessary work. Keep detailed records of all repairs and services performed on your vehicle so you can track its history and identify any inconsistencies if a mechanic claims something needs repeated attention. Finally, if you find a mechanic you trust, stick with them. Building a long-term relationship can help ensure that your car receives honest, high-quality service over time. Auto repair scams can be a nightmare for car owners, but by staying informed and vigilant, you can protect yourself from falling victim. Stay safe! You’ve got an unexpected phone call from a helpful representative wanting to sell you a fabulous product, and you didn’t even know you’ve been missing it: an extended warranty on your car. Don’t sign up for anything just yet! You may be the target of an extended warranty scam.
Here’s what you need to know about extended warranty scams and how to avoid them. How do these scams play out? Extended warranty scams play out like this: First, you get an unsolicited offer. This can be by phone, email or a letter from a company claiming to provide extended warranties for your vehicle after your current warranty expires (whether you have one or not). Next, the scammer seeks to create a sense of urgency by claiming this is a limited-time offer, so you have to act now or risk costly out-of-pocket repairs. Once you show even the slightest bit of interest, the scammer provides vague or misleading info about the coverage. Then, after convincing you to sign up, the scammer asks for your credit card information to charge an upfront fee and set up recurring monthly payments. When the dust clears, you’ll be left with fake or useless coverage. Red flags of extended warranty scams Look out for these signs of an extended warranty scam to protect yourself from falling victim:
Protecting yourself from extended warranty scams requires vigilance and skepticism. Here are some tips to help you stay safe. First, before agreeing to any warranty, research the company that’s offering it. Look for reviews to see if the company is registered with your state’s consumer protection agency. A lack of information or negative reviews should be a major red flag. Next, if you’re unsure whether your current auto warranty is about to expire or if you need an extended warranty, contact your car dealership directly. They can provide accurate information and offer legitimate options, if needed. If you are considering an extended warranty on your car, be sure to read the contract carefully. Pay close attention to what is and isn’t covered and don’t sign any contracts until you fully understand the terms. Finally, never share personal information with unverified contacts. Extended warranty scams can prey on unsuspecting car owners and trap them in high-cost but useless plans. Use this guide to stay safe! When you get a loan to buy a car, you’ll get a new set of keys — and a new monthly payment. It may have you wondering how this payment is determined and how it’s calculated.
So many questions, and we’ve got answers! Let’s break down the parts of a car payment, explain how monthly payments are calculated and offer tips for managing your payments well. What re the components of a car payment? 1. Principal The principal is the amount of money you borrow to purchase the car. For example, if you buy a car priced at $35,000, and you put $5,000 as a down payment, the principal of your loan is $30,000. A portion of each monthly mortgage payment will go toward paying down the principal balance of your loan. 2. Interest Interest is the cost of borrowing money from a lender. It’s calculated as a percentage of the principal amount and is added to your monthly car payment. The interest rate on your loan will depend on a handful of factors like your credit score, the length of the loan term and the current market conditions. 3. Loan term While this is not really a part of the loan, you’ll likely see this referenced on your monthly statement or loan bill. The loan term is the length of time you have for repaying the total loan, typically expressed in months. Common auto loan terms range from 36 to 72 months, with some loans extending even longer. The longer the term is, the lower the monthly payments will be, but the more interest you’ll pay over the life of the loan. If you’ve rolled additional costs into the loan, they may also be part of your monthly payment. This can include: 4. Taxes and fees If you choose to finance taxes, registration fees or other upfront costs of the loan, these will be included in your loan amount and will increase your monthly payment. These costs are not itemized separately; instead, they’ll be incorporated into the principal. 5. Add-ons Optional add-ons like extended warranties, gap insurance and other products you choose to finance will also be included in your loan principal, thus increasing your monthly payment. Additional costs of car ownership While not included in your monthly loan payment, these expenses are an inherent part of owning a car:
To calculate your monthly payment, the lender will take the principal of the loan along with any add-on costs, and the interest amount due, and divide this number by the months in your loan term. This is the amount you’ll need to pay each month. Managing your car paymentManaging your car payment well requires careful planning and budgeting. Here are a few tips to help you stay on top of your payments and minimize the overall cost of your car loan:
Q: Politics are taking a wild ride these days and there’s so much uncertainty about the future of our country. How does political unrest affect the economy?
A: Political instability can shake the foundation of a country’s economy and have far-reaching effects. Let’s look at how political unrest affects the economy. Market volatility and investor confidence Political unrest can lead to market volatility, where stock markets and currency values fluctuate without warning. Investors tend to be wary of uncertainty. Whether it’s uncertainty about government policy, the stability of leadership or potential changes in trade agreements, investors will generally respond by pulling back on investments or selling off assets. Slower economic growth When a country is having internal turmoil, its ability to produce goods and services declines. Businesses face operational challenges, including disrupted supply chains, reduced workforce productivity and damaged infrastructure. In the long run, political instability discourages business investments and entrepreneurship. Entrepreneurs and companies may be reluctant to expand operations or start new ventures in countries having political uncertainty. Without consistent investment in growth, economies stagnate. Inflation When governments become unstable, the country’s currency can lose value due to loss of confidence in economic stability. This devaluation can raise the prices of imports, leading to higher inflation rates as the costs of goods go up. In countries heavily dependent on imports, political instability can quickly worsen the inflation rate, making everyday items like food, fuel and medicines more expensive. Government spending One common response to political unrest is an increase in government spending, particularly on military or law enforcement. To restore order, governments may allocate significant resources toward controlling unrest, funding peacekeeping operations or repairing damage caused by protests or uprisings. This puts a strain on public finances. Trade disruption Political unrest can disrupt trade, both domestically and internationally. For example, protests can stall shipments of goods in and out of a country, and general unrest can lead to road closures or labor strikes, bringing entire industries to a standstill. On a larger scale, political instability might lead to sanctions or trade restrictions imposed by other countries. If a nation is seen as volatile or poses risks to global peace, trading partners may reduce or cut ties, further reducing the country’s access to international markets. Impact on employment and poverty When political unrest destabilizes an economy, the job market usually suffers. Businesses may close or reduce operations, leading to layoffs and higher unemployment. This is especially common in industries that depend on global supply chains or foreign investment. As businesses face financial uncertainty, they may hold off on hiring or even begin laying off. High unemployment, in turn, leads to rising poverty rates, especially if the government is unable to provide adequate social safety nets during the crisis. Protecting your finances during times of political unrest While these stats may sound alarming, the good news is that, even during times of political unrest and instability, there are steps you can take to protect your finances from harm. First, diversify your investments. Spreading investments across different countries, industries and asset classes can help reduce the impact of a crisis in any single region. If you’re a business owner operating in a politically unstable country, it’s a good idea to develop a contingency plan in case your operations are disrupted. Finally, be sure to stay informed about the political climate. Avoiding risky investments and maintaining a healthy emergency fund can help you weather financial uncertainty during politically turbulent times. Trying to understand your mortgage payment can be like trying to decode a secret language. At the very least, you may be wondering what all the lingo means.
No worries; we can help! Let’s take a look at the different components of your mortgage payment, explain how it’s calculated and offer tips for managing payments effectively. Principal The principal of your mortgage is the amount of money you borrow from your lender when buying your home. A portion of each payment goes toward paying down this principal. In the early years of your mortgage, a smaller portion of your payment goes toward the principal while most goes toward interest. As time goes on, though, this balance shifts, and more of your payment goes toward principal. Interest Interest is the cost of borrowing money from your lender and is calculated on the outstanding principal balance. It’s typically expressed as an annual percentage rate (APR). The interest rate you get depends on several factors, including your credit score, your down payment amount and current market. There are two main types of interest rates: fixed and variable. A fixed-rate mortgage keeps the same interest rate for the life of the loan, while a variable-rate mortgage can change over time based on market conditions. Property taxes Property taxes are levied by local governments and are based on the assessed value of your property. These taxes fund essential services in your community, like schools, police and fire departments and road maintenance. The amount of property taxes you’ll pay varies widely by location. Homeowners insurance Homeowners insurance protects your property and belongings from damage or loss due to events like fires, storms and theft. Most lenders require borrowers to carry homeowners' insurance, so your choice will not be whether to get insurance, but how much coverage to purchase. Private mortgage insurance If your down payment is less than 20% of the home’s purchase price, your lender will likely require you to carry private mortgage insurance (PMI), which protects the lender in case you default on your loan. The cost of PMI varies, but typically ranges from 0.3% to 1.5% of the original loan amount per year. Once you have built up 20% equity in your home, you can usually request to cancel PMI. Tips for managing mortgage payments Budget for your payments: Create a budget that includes your mortgage payment and other homeownership costs. Refinancing: If interest rates have dropped since you got your mortgage, consider refinancing. Refinancing can lower your interest rate and/or monthly payment. It’s also a way to switch from a variable to a fixed-rate mortgage. Extra payments: Making extra payments toward your principal can help you pay off your mortgage faster and save on interest paid over the life of the loan. Understanding the anatomy of a mortgage payment is essential for managing your finances. Use this guide to learn about the components of your mortgage and how to manage your payments effectively. Are you self-employed and without a retirement plan? A solo 401(k) may be the solution you need! This retirement plan is designed specifically for self-employed individuals and small business owners who have no full-time employees other than a spouse.
Let’s take a closer look at solo 401(k)s, how they work and how to manage one effectively. How solo 401(k)s work Here are some key features of a solo 401(k). Contribution limits:
How to manage a solo 401(k) effectively
What are the benefits of a solo 401(k)? Here are some of the benefits of opening a solo 401(k):
What are the potential drawbacks of a solo 401(k)? Here are some of the potential drawbacks of opening a solo 401(k):
A solo 401(k) is a versatile and powerful retirement savings vehicle for self-employed individuals and small business owners. Q: Summer’s here, and my energy bill is burning right through my budget! How can I save on energy costs?
A: It’s hot out, but you can keep your cool with our energy-saving tips! Follow these hacks to save on energy costs this summer. 1. Have your HVAC system professionally inspectedFirst, you’ll want to make sure your home is being cooled efficiently. You can do this yourself, but it may be worth hiring a professional to check your HVAC system for leaks and other problems. 2. Use your AC efficiently Don’t waste any of that cold air! In addition to regular maintenance, ensure you’re using your AC system as efficiently as possible. Avoid placing lamps or large TV screens near your thermostat, clean your air intake vents regularly and keep doors and windows closed when running the AC. 3. Get smart If you haven’t already done so, consider using smart technology to keep your home cool and your costs down. Connecting your thermostat to a mobile device will enable you to control it from a distance and avoid cooling an empty home. You can also use smart technology to set your thermostat on a schedule that suits your family’s needs. 4. Get grillingYour oven and stovetop can heat up much more than your food this summer. Make it a habit to take your cooking outside and keep your home cooler. 5. Time your choresUsing large appliances, like a washing machine and dishwasher, can add extra heat to your home, especially if you live in a small space. Use these machines after dark, when it’s generally cooler. 6. Use appliances efficiently
Have you brought down your energy costs this season while still keeping your house cool? Share your best tips and tricks! It’s a new product — and you can try it for free!
Sounds amazing? Well, know that a free trial can actually be a gateway to a devastating scam. Here’s what you need to know about free trial scams and how to stay safe. What are free trial scams? Free trial scams typically involve a business offering a product or service at no cost for a limited time. But the catch is that by signing up for the trial, consumers unknowingly agree to pay for ongoing subscriptions or other products. These scams are particularly shady because they seem legit, often using professional-looking websites and marketing materials to trick users. There’s also nothing criminal about free trial scams; just manipulative and deceitful marketing. How do free trial scams work? Here are the steps of a free trial scam:
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