Monthly Archives: March 2018

It is of great concern that 66% of millennials have nothing saved for retirement. Many millennials are focused on repaying student loans and starting their families. To yield the most for retirement, millennials must begin saving in their thirties to have enough to live on in retirement. This means that at least two decades are required to save adequately. Employees are increasingly more responsible for their own retirement income since fewer employers are offering pensions. Personal savings, 401k’s, and social security benefits will likely be part of the millennials’ retirement income package. Millennials may discover it is a necessity work in their senior years and retire much later than their parents did. For more information:

http://money.cnn.com/2018/03/07/retirement/millennial-retirement-savings/index.html?iid=SF_LN

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In 2017, Equifax experienced a massive breach that affected the personal credit information of at least 130 million Americans. The breach was so far-reaching that half of the U.S. population was affected and credit information was stolen without your permission. Needless to say, consumers got angry that Equifax did not have a remedy and many were concerned about the implications of this massive breach. Now, Congress has decided to act! Next week, we anticipate a bi-partisian majority in Congress will pass a bill to allow Americans to freeze their credit report to protect their credit rating and credit standing. This means if someone has stolen your personal credit information and tries to open new credit using your data, they will not be able to gain access to your account for a credit approval. This is a Big Step in protecting the American consumer who is at the mercy of the credit reporting agencies. As consumers, we cannot opt-out of having our personal data such as your social security number, address, employer name, credit accounts that are recorded by the three credit reporting agencies Equifax, Transunion or Experian. Remember to check periodically, to see if your credit record is accurate. Visit: www.freecreditreport.com For more information: https://www.bizjournals/com/atlanta/news/2018/03/08/congress-may-approve-free-credit-freezes-amp.html

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In 2018, avoid tax scams by filing your tax return early and do not share personal information with persons or entities you do not know. Phishing is used by scammers to acquire your personal information, such as your social security number to gain access to your tax refund by pretending to be you. Protect yourself by using secure sites that keep your personal information secure. Most important, remember to file your taxes early. Also, IRS never calls over the phone, they use mail exclusively to communicate with tax payers. For more information:

https://www.moneytalksnews.com/this-is-the-no-1-threat-to-your-tax-refund-in-2018/ 

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Chances are Social Security will undergo periodic changes for several years to come to accommodate the increasing number of eligible beneficiaries. Currently, if someone is eligible for social security benefits and also has outstanding student loans, their social security payment can be garnished by up to fifteen percent. Unless the current law changes, student loans cannot be discharged in bankruptcy unless a loan holder experiences an undue hardship. Seek a student loan repayment plan that is most suitable for you and seek employment with an employer who offers student loan repayment as an employee benefit. Never ignore student loan debt.

https://studentloanhero.com/featured/social-security-payments-for-student-loans/

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When you think about it every emergency situation requires money to solve the problem or mitigate the circumstances. Whether it is a car accident, storm damage to your home, an emergency room visit, a toothache, or a job loss, money will likely be needed to address the problem at some point. Even of you have insurance, copays, medications, or a car rental may require a monetary payment upfront for the insurance company to reimburse you at a later date. If you have an emergency savings account you can avoid using your credit cards or relying on a payday loan. If you do not have an emergency savings account you will likely have to borrow the money, which often leads to mounting debt and loans with high interest rates. During this tax season, think about taking part of your tax refund to open an emergency savings account. To prepare ahead, set up rules to live by to access the emergency funds. This means the money should only be used for emergencies and never for personal indulgences such as shopping, eating out, or for a vacation. Individuals who have an emergency savings account are less likely to have large credit card debt or high interest payday loans. Think about the benefits of saving for emergencies as another way of staying out of debt. After tax season has come and gone you will be able to remember where your money went.

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It’s tax time and many of us will receive a tax refund. You may ask yourself, “What should I do with my tax refund.”

It is best to split your tax refund in three ways. The first third, pay a bill. If you pay the smallest bill, you might even lower the number of creditors that you owe. The second third, place in your emergency savings account or create one if you don’t have one. You will be glad you did! If you haven’t started an emergency fund, tax time the best time to do it. The last third, spend on yourself. It is your reward for working hard ALL YEAR LONG! Enjoy it!

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You can receive a FREE copy of your credit annually from Experian, Transunion, and Equifax. You can request a FREE credit report quarterly from each company to monitor what is listed since the items may vary slightly. This is important especially if you plan to purchase a car or a home within the next year. Your credit report is used by creditors to decide what interest rate you will pay based on your credit history. Your credit report can used for purposes of employment, insurance, security clearance, and loans. The scoring is called the FICO score, which ranges from 300-850. A FICO score of 680 and higher is considered good. Your credit report is comprised of these five factors:

1. Length if credit history 15%
2. Credit mix 10%
3. New credit 10%
4. Your payment history 35%
5. How much you owe 30%

For more information visit: www.freecreditreport.com

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A few years ago, I discovered Navy Federal Credit Union offers FREE awesome financial seminars. The best news is, you don’t have to be a member to attend. If you want to learn more about purchasing a home, estate planning, financial planning, retirement income planning, social security benefits, investments, or your next car purchase register today! You’ll find the seminars very informative and you also have the option of scheduling a one-on-one meeting with a financial planner at a later date. I firmly believe this is the best keep secret if you want to bolster their financial prowess. I highly recommend these FREE financial seminars! Sign-up and invite a friend to join you! For more information visit: https://www.navyfederal.org/products-services/investments-insurance/events.php

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During President Obama’s Administration he established the Consumer Financial Protection Bureau (CFPB), which was designed to protect the consumer. For instance, the Payday Loan industry typically charges 300% interest or higher for individuals borrowing from paycheck to paycheck. During the Obama Administration, there were gains to limit interest rates consumers would be charged.

Today, the Trump Administration has rolled back the advances made to protect the consumer. The CFPB has dropped  actions against payday lenders who were caught charging up to 1000% interest. It is a tragedy that the most financially vulnerable among us can least afford to repay these high interest loans.

The public needs to be warned that payday lenders are operating with few boundaries. For many, payday loans a debt traps that few can emerge unscathed.  For more information: https://boingboing.net/2018/01/19/debt-traps.html/amp

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