Monthly Archives: February 2020

Money Responsibility 101: Family Edition

family

Financial responsibility starts in the home. If it’s not something you were taught as a child, it can be difficult to model it in the home as an adult. The good news is, it’s not too late to start! Here’s what you need to know to kick your household into gear. 

Do It Together

The more, the merrier! Many parents feel anxious to talk about finances with the entire household. However, each member of the household will benefit from having an open conversation about finances. Set goals together and discuss why having goals and sticking to them are important. Review these goals as a family on a consistent basis. You should have your child replicate their own budget with their allowance, which we will cover down below!                                                                   

Diction: It’s Important

Diction means word choice. How you talk about finances makes a big impact on how your children think about finances. It also impacts how you think about finances. It doesn’t have to be a big scary thing when it is discussed as commonplace and in a positive manner.

For example, instead of saying “we can’t afford that” or “we don’t have the budget for it” think of an alternative spin. Simply say something like, “That’s not in the budget for us right now.” It emphasizes that while you may have the money to spend on that item, it’s not planned for in the budget. You’re showing the importance of sticking to a budget and keeping your word. If it’s something that is really important to them, you can show them a way to include it in the budget for a later date. 

Donations

Show your children the importance of giving back by leaving a portion of your family budget aside for donations. Discuss as a family what charity you would like to donate to. If possible, take your children there to show them where that money is going. 

Utilize Allowance 

Having an allowance is an oldie but a goodie! It’s never too early to teach your children about earning money. They will learn to work for money and how to budget it in a way that impacts them directly. You can show them that they can have a portion of their budget set aside for spending “fun” but when it’s gone, it’s gone. 

Budgeting works! You and your family will see this to be true by creating and sticking to one together.

IRA FAQs: Find Your Answers

older-couple

Retirement may seem far away or coming soon to you. Either way, you likely have some questions as many people do. Today, we will tackle some of the most common questions. 

What is an IRA?

IRA stands for Individual Retirement Account. The purpose of it is to help people save for retirement through their paychecks. The two types of IRAs are Traditional and Roth. 

Traditional: With a Traditional IRA, you are able to put pre-tax dollars away for retirement, which will later be taxed upon withdrawal.

Roth: With a Roth IRA, you pay taxes each year, but will not pay taxes at withdrawal. 

How much can I contribute?

You may contribute less than 100 percent of your income but no more than $6,000 as of 2019 or $7,000 if you’re over the age of 50. 

Can I borrow money from my IRA?

The answer is yes and no. While the IRS does not want you to borrow money from the IRA, you are allowed to take money out and convert it to another retirement account. This must be done within 60 days of withdrawal from the IRA.

Who can have an IRA?

Any person who has earned income can have an IRA. Even if you already have a 401k through your employer, you can still contribute to your own. 

Can I have both a Traditional IRA and a Roth IRA?

Yes, you can have both. However, you are still subject to the same overall contribution limit. It would need to be divided up over the two accounts.

Can I move my assets from my employer-sponsored plan to my IRA?

Yes, you can move your assets in this way. However, you cannot move your IRA assets into your employer’s plan. 

Is there a penalty for withdrawing early?

If you choose to withdraw before the required age of 59 ½, your funds will be subject to a 10 percent tax penalty. However, there are some exceptions to this that you can learn more about here. 

Your retirement is too important to not have all of your questions and concerns answered. Meet with us to learn more about your retirement options and how to get your finances set up for success. 

Cybersecurity Check: How Secure Are Your Actions?

cyber

It’s 2020 and more than time to be certain your cybersecurity practices are up to date. Cybercriminals become more advanced and attuned to the different ways to penetrate vulnerabilities of those who aren’t up to date on security. These are the top actions you need to take. Can you say yes to any of these?

Are you cautious with the applications on your phone?

Sometimes, there’s a false sense of security when it comes to phone applications. Apps are used for about everything these days and too often users think they are safer than they are. You may have noticed that pop ups can still occur on these applications and can pose a security risk to you and the information held on your device. You may even click on the ad accidently while it takes you to a suspicious website. 

Is your software up to date?

Yes, we realize that having to update your phone or computer can be a nuisance. It can be frustrating at times because it may change the layout of certain features on your phone. Yet, we would still recommend updating due to the protection it provides. It will help to patch vulnerabilities and fortify your wall of protection. 

Are you aware of phishing scams?

How attuned are you to phishing scams? Phishing is when the cybercriminal acts like someone else in order to trick the victims. Be sure to: never open an email from someone you don’t know, click on unfamiliar links and always be suspicious when it comes to emails – even from friends that may send harmful links unknowingly. 

Are your passwords updated periodically?

It’s frustrating to have to remember many different passwords and to constantly be updating them. But it is still less of a headache than it would be if you had your identity stolen or your data held for ransom. Never use the same password twice and update each password at least once a year. 

Is your PII Personal?

PII stands for personal identification information. This includes your address, birthdate, birthplace and middle name. These are often listed on many people’s social media pages. Sometimes all it takes to have your identity stolen is your full name and birthdate. Be sure to remove this from your pages and to keep it private. 

For more tips on how to stay ahead of the cybersecurity curve, contact us today!

Make Your 2020 Savings Goals A Reality

piggy bank

The new year is full of hope and imagination for the future. It can be challenging for anyone to stick with these goals, especially financial ones. We’re happy to tell you that there is a way to make these goals a reality by sticking to these wise practices.

Be Realistic

In order to make your goals a reality, you should set realistic goals. While a beach house on Maui would definitely be an attractive prospect to most people, it’s not in the cards for everyone. Maybe something like this will be there for you someday, but first you want to master the baby steps. Think about goals within the next 1-5 years that you can see happening and are motivating.

Prioritize Goals

Not all of your goals are likely to be reached in 2020. Prioritize the goals in the order that you think they can be accomplished first and that are also the most important to you. 

Identify Roadblocks

Plan ahead for the things you think might go wrong or steer you off course. Is one of your savings goals to cut down on splurging but you find yourself repeatedly swinging through drive thrus and shopping online just because you have a free shipping subscription? Decide on alternatives to keep you from continuing with these habits. If there are events or emotional triggers that compel you to spend money, figure out another way to get relief. Go for a run, read a book or invite a friend over for a movie night. 

Organize Accounts

Get familiar with the banking accounts available to you. Learn about how to use them to fit your lifestyle. Maybe you want each paycheck to have a percentage go straight to checking. Get this set up! Have you downloaded our mobile app yet? If not, consider doing so. It’s a great way to easily keep an eye on your everyday spending as well as check in on your growing savings account. 

Celebrate Progress

Goals aren’t achieved overnight. You’ll be working hard to achieve your goals and you might experience some burnout. To keep this from happening, celebrate the strides you are making towards reaching your goals by having a visual that can remind you of your “why” and modestly celebrate each achievement in a way that’s fun for your household. If you have kids, get them in on the fun and teach them why following through on commitments is important and why celebrating mile markers is also important!

For more ways to follow through on your savings goals, reach out to us today!