Monthly Archives: May 2018

Protecting Older Americans Against the Top Scam: IRS Impersonations

protecting

No age group is immune to scams. It can happen to any age group, income level and gender. Scammers are no respecter to persons when it comes to getting your money. However, seniors should be protective of their finances, as they are more likely to have significant life savings and great credit. They also may be unsure of who to report fraud to, or don’t out of shame. This makes them a great target for scams. Unfortunately, the top scam among older Americans is IRS Impersonations.

Why IRS Impersonations?

  • Taxes and money are linked, so being able to access someone’s tax account gives them extensive amounts of highly personal information.
  • This information can be serviced into capital.

Telephone Scams

They may receive a phone call from the scammer, claiming to be from the IRS. They will give a fake name, badge number and even call from a Washington area code so they seem more legitimized.  This is called Caller-ID spoofing. They say they are following up on letters sent by mail and threaten arrest, home foreclosure or deportation for immigrants if they are not paid. Seniors should be aware that the IRS will never call to demand immediate payment, nor will they ask for credit card information over the phone. These scare tactics are working far too well, so education, not shaming, is needed to prevent victimization. If they receive a suspicious call, hang up and call the U.S. Senate Special Committee on Aging’s Fraud Hotline at 1-855-303-9470.

Text Messages

Unfortunately, text messages seem to be more trusted than email.  Scams by text are called smishing. Some criminals may only have access to the internet through their smartphone, so they will use this to target other phones as well. They may even send a link to a fraudulent site to intake your private information like a social security number so they can steal your identity.

Here is an example of what a text might say:

“IRS NOTICE: Your Tax Return is overdue! Click here to prevent penalty by law.”

Email Phishing

This term means the scammers are fishing for information through email, conning people into thinking they are someone they are not. The emails look like they have the branding of the IRS and they are leading to a legitimate website. They might request the same information that is requested by phone, but might be more prone to believe the emails to be valid with the fake IRS branding.

Key Takeaways:

Inform your loved ones of these IRS facts:

  • The IRS will never call to demand immediate payment.
  • They will never threaten to immediately arrest.
  • You will never be told that the taxes must be paid without the opportunity to appeal the amount owed.
  • They will never ask for payment information over the phone.

Data has shown that increased knowledge on scams makes a difference, so share this information with your loved ones, creating a safe place of discussion and education!

Relationships & Money: What Your Conflict Strategy Says About Your Finances

conflict

“I think what makes people fascinating is conflict, it’s the drama, it’s the human condition. Nobody wants to watch perfection” (Nicholas Cage). If you’re human, you experience some degree of conflict daily. With the American expenditures averaging $157 per day, the purchase decisions you make every day are impacted by how you manage conflict. Understanding your conflict-resolution style can not only help you better understand and improve your financial obstacles, but help improve your relationships with others when it comes to money.

Accommodating

Accommodation is when you are agreeable to such a high degree, that you actually work against your own self-interest. Essentially, you are either excessively polite or are in conflict with another party who has more knowledge on a topic. This style can be helpful when you are seeking advice from a trusted financial advisor. This can be problematic, if you automatically assume that others know more than you about money, or what to spend your money on. You may be too eager to please and too trusting. This is even more true if you are constantly finding yourself on the losing end.

Avoidance

People who use this style simply do not address conflict with themselves, or others. In this scenario, all are losers.  This is acceptable for a short term strategy, but can be dangerous if it creeps into a long period of time. People who are prone to the avoidance style may also have high amounts of debt.  If you are constantly avoiding the realities of your bank account and spending habits, you may be creating even more conflict for yourself and any financial partners.

Collaborating

This is the ideal way to handle financial conflicts within your relationships. This is a win-win style, where you work to meet each person’s goals. This can be helpful when you are crafting a budget with your spouse, and you both work to make sure your financial goals can be met based on the mutual plan you establish. In times of financial stress, you both communicate and work together to fix the situation for an outcome that is helpful to both parties. This can even be true for friendships. For example, if you have a higher income than your friend, and want to go out to a fancy restaurant, you may collaborate with your friend to find a restaurant that you will both enjoy, and afford. You can still go to a nice restaurant, but your friend can afford it, or maybe you can even treat them to a meal!

Competing

This is a style more commonly taken on by the aggressive or ambitious. It is typically a win-lose scenario. A person with this management technique doesn’t care about the other party getting what they want, and makes decisions with a sense of urgency. This may be okay in times of emergency, but can be damaging for the long term. For example, if you constantly spend on big ticket items without consulting your partner, you may have the competing style. You may take advantage of others, and seek to appear financially superior to your friends and family. This can be especially damaging if your bank account doesn’t match your spending habits, causing others to feel inferior, and your partner to feel weighed down by your decisions.

Compromising

Compromising is the worst way to handle your finances. It creates a situation where nobody wins. Both parties may not speak their full truth, or take the paths of least resistance, so no one truly gets what they want. This might be where neither party really wants to cooperate, so they make sure nobody gets what they want. This can be problematic on financial decisions, such as whether or not to buy a new or a used car. You might decide not to purchase a vehicle at all and really end up paying to fix the clunker you have, spending more on fixing it than you would have to just replace the vehicle.

Consider which one of these styles you lean towards the most and how it can be hurting or helping your financial situations and impacting those you care about. We suggest striving for collaboration to satisfy your relationships and bank account!

Habits of Financially Mature People

maturity

If you take a look around, you may notice that a majority of people from a variety of income levels seem stressed about their finances. Seventy eight percent of Americans are living paycheck to paycheck and debt is creeping up more and more every year. So what’s the secret for those who aren’t wealthy enough to be financially independent, but still manage to live the life they desire? We believe the difference is financial maturity and have collected top habits for you to integrate into your life.

Educate Yourself: Financial Literacy

Financially mature people take time to educate themselves about money. They realize money is a tool that they have efficacy with. Unfortunately, public schools aren’t preparing students to be financially literate. Set yourself apart by having a basic understanding of financial areas such as: investing, insurance, real estate, retirement and tax planning.

Pay Yourself First: Save!

Achieving financial stability means having enough in your account to pay cash. It means understanding that a financial crisis such as losing a job happens, and realizing that it’s important to have money prepared for that misfortune. There are so many things to save for such as retirement or a down payment on a house, and irresponsible spending can quickly eat away at your savings. Don’t let savings be an option, set up an account with us today at Timberwood Bank.

Say No to Shopping Sprees

The financially stable realize that spending money for the sake of spending money will not help them get where they want to be. If you go shopping for fun, you’ll end up buying items you do not need, a hallmark of the financially unstable. Plan ahead for the items you need to purchase.

Use Credit as an Investment

They don’t use credit as a fall back for when they cannot afford to pay a bill. They only have a couple of cards, and pay them in full at the end of every month. They always pay their bill on time to reap the rewards that come with their use.

Know Your Numbers

A financially mature person has a budget, no matter if they have a lot, or little money. They know what’s in their account, what they owe, what they earn, what they spend and what they have invested. They put themselves in environments that encourage them to keep their budget. They also review their budget monthly to see if there is any fat to be trimmed. There is a realization of the difference between spending less and saving. Even if they are spending less, if their savings aren’t increasing, they haven’t gained anything.

The most important idea to realize is that financial maturity is up to you. If you need help navigating your process, reach out to a member of the team at Timberwood Bank.

3 Things You Need to do for a Successful Garage Sale

garage

Hosting a garage sale is not for those who are afraid of hard work. Like most things in life, in order for it to be a success, you need to be willing to put in the time and effort to make the experience pleasant for buyers and yourself. You need to be sure that the items you want to sell are going to be worth the time it’s going to take. If you don’t have any big ticket items, it is less likely that your sale will do well, as it will not be as attractive to buyers. Your time has value and we want to ensure you make the most of yours! If you have decided to move forward with the garage sale, utilize these three tips to make yours a smash!

  1. Prepare

Start by going through each room in your home with three boxes. Go through cabinets and closets and start weeding out items to sell, toss or donate in separate boxes. You are going to feel so much better afterwards in your home, knowing that you mostly only have wanted or needed items taking up space.

Purchase pre-marked stickers for your items to make it simple. You don’t want introverted people putting an item down because they couldn’t read your handwriting and felt uncomfortable asking. Additionally, you will want to organize all of these items into their appropriate categories (women’s clothing, toys, books, etc.). A rule of thumb is typically pricing items about ⅓ of the original purchase price, but some items may even require a lower sticker price. Don’t assume that people will haggle with you, as many feel uncomfortable doing so. The most popular items you can have is: furniture, kids’ toys and collectibles.

  1.  Advertise, Advertise, Advertise!

There’s no point in preparing if you can’t convince people to come to your sale. If there’s a local newspaper or community bulletin for free or a small price, post your biggest ticket items for sale here. Make sure you are specific with every ad. This will make people more likely to come to a sale where they know what they can expect. If you can join in with another family and label the sale as “multi-family,” you are more likely to draw a larger crowd. Create large, easy to read signs and post them the night before. You are going to want 15-20 signs to draw attention. Make it fun and in an easy to read font.

Don’t try to make the ad too cutesy, but simply list what you have.  Post on at least three online sites, whether that’s Craigslist or multiple social networking groups. Quality pictures can only help! Post these ads 1-2 days before your sale, so it stays top of mind. We recommend having the sale on Friday and Saturday mornings, starting as early as 6. Most people don’t like to interrupt their day plans for a sale and would rather get it out of the way.

If you really want to think outside of the box, have a themed garage sale! If you mostly have outdoor, sports or entertainment items-list them as such! This will generate more curiosity and interested buyers.

  1. Create an Experience

Having a sale that will make people come back next year is all about creating an experience! Make your sale similar to a department store environment that is accommodating and causes customers to linger. Greet guests with a simple hello and nice background music when they enter.  Display your best items at the front, with a couple of eye catching items at the very back to attract visitors to the whole space. If you haphazardly throw your items into a box, they may think that you don’t take very good care of your things and will not want to buy them. You will have to keep up on this throughout the day. When selling accessories, have a mirror ready for people to try on items. If you are selling electronics, have a plugin available for guests to test. To really step it up, have refreshments to suit the weather. Lemonade for the hot days or coffee for the chilly ones.

All of these recommendations will make your items more attractive to potential buyers. If you are going to have a sale, we believe going all out in order to not only clean your home, but to have a nice stack of cash at the end of the day!