HealthyLife Articles

Category: Financial Health

  • Protect Yourself From Identity Theft

    Financial Health

    Manage and minimize misuse of your personal information

    Consumers lose billions of dollars every year to crooks who steal their identity and money through fraud. Avoid becoming a victim.

    Keep your personal information safe and secure:

    *  Put your Social Security card, Medicare card, military ID, and passport in a secure place, unless you need to use them. Memorize your social security number (SSN). Lock your purse or wallet in a safe place at work. Or carry your wallet with you.

    *  Shred or cut up bank statements, checks, credit card applications, expired charge cards, medical and insurance forms, and prescription labels you no longer need before throwing them away. Otherwise, keep them locked up. You can opt out of credit card offers received in the mail atwww.optoutprescreen.comor by calling (888) 567-8688.

    *  Use passwords and PIN numbers to protect your credit card and bank accounts, your smartphone, and all computer devices. Choose passwords with upper and lower case letters, numbers, and symbols. Nix using common items like your house numbers, phone number, and last four digits of your SSN.

    *  Install and regularly update anti-virus and anti-spyware on your smartphone and computer devices.

    *  Use only secure sites online when you need to give financial or personal information. These have Web addresses with “https” or “shttp” or show a lock symbol.

    *  When you are away, have someone you trust pick up your mail or have the post office hold it for you.

    Avoid scams:

    *  Do not give your social security number or bank account numbers to persons in emails or on the phone.

    *  Don’t wire money to strangers, to sellers who insist on wire transfers for payment, or to anyone who claims to be a relative or family friend in an emergency who wants to keep the request a secret.

    *  Check your credit card, medical bill, and bank statements when you receive them in the mail or online. Report charges you did not make to the company right away.

    *  To help avoid ATM theft, use machines inside banks and ones you are familiar with. Don’t use machines that have extra items, even brochure holders, that could be cameras or that say they are “card cleaners.”

    Action Step

    Request a free copy of your credit report once every 12 months from three nationwide consumer reporting companies – Equifax, Experian, and TransUnion. Call (877) 322-8228. Check the reports for accuracy.

    Ways to Well-Being book by the American Institute for Preventive Medicine. www.HealthyLife.com. All rights reserved.

    © American Institute for Preventive Medicine

  • Collecting Unclaimed Funds

    FINANCIAL HEALTH

    Young couple holding a jar with money in it.

    Could you have money waiting for you? Learn about unclaimed money or property from bank accounts, tax refunds, insurance policies or wages and pensions.

    You can find your unclaimed money for free. Here’s how:

    *  Search in every state where you have lived. Look up each state’s unclaimed property office. You can also try contacting the state treasurer’s office.

    *  Search the FDIC database. If your bank or credit union closed, you could have unclaimed deposits. You can also check out the National Credit Union Administration (NCUA) atwww.ncua.gov/support-services.

    *  Current or former VA life insurance holders can check for unclaimed life insurance funds. Go toinsurance.va.gov/UnclaimedFunds.

    *  Look for tax refunds from an FHA-insured mortgage. If you earned income but your wages were below the tax filing requirement, you might have a refund waiting. Go toirs.gov/refunds to check. If you bought mortgage insurance from the Federal Housing Administration (FHA), you might have a refund. Go toentp.hud.gov/dsrs/refunds.

    *  Do you have unclaimed back wages or pension money from a past employer? Go to the Workers Owed Wages (WOW) website atwebapps.dol.gov/wow. You can also check the Pension Benefit Guaranty Corporation atpbgc.gov.

    Notice that these websites include “gov.” They don’t have a “com” or “org.” The “gov” means it’s an official U.S. Government website. You should never have to pay any money to find or claim your unclaimed money. It’s FREE. Watch out for scammers and people who want to charge you for this service.

    Source: usa.gov

    © American Institute for Preventive Medicine

  • Tips For Filing Taxes

    FINANCIAL HEALTH

    Image of paper work for taxes.

    April 15 is Tax Day. Everyone must file their taxes by this day or file for an extension. Don’t get overwhelmed. These tips can help you get started.

    Get all your papers together

    You’ll need all your income records. This may include a W-2 from each employer, a 1099 for other income you made, and records of any other revenue even if you don’t have a form. You’ll also need all the paperwork that supports your tax deductions. Try to gather all these papers early so you have more time to get them in order before you file your taxes.

    Check IRS.gov

    The IRS website has help for people filing their taxes. There are FAQ’s, forms you may need, and helpful interactive tools.

    Double check

    If there’s a mistake on your taxes, your refund may be delayed. Double check social security numbers. The IRS says this is one of the most common mistakes.

    If you owe taxes, but can’t pay it all right now, don’t panic. Go toIRS.gov/payments. You may be able to set up a payment plan or ask the IRS to delay tax collection.

    © American Institute for Preventive Medicine

  • Resolve To Get Ready For Retirement

    Financial Health

    It’s never too early or too late.

    Whether you are in your 30s, 40s, 50s, or even your 60s, plan for your retirement. Research shows that people who think about and plan for retirement save more than those who don’t.

    Add up all sources of monthly income.

    *  Social Security. Find out how much you will get, monthly, from the Social Security. This depends on your work history and if you choose to start getting benefits at age 62 or your full retirement age (65, 66, or 67) or wait until age 70. A yearly statement mailed to you gives this information. Or, find out from Social Security benefit calculators atwww.socialsecurity.gov/retire2/index.htmandwww.socialsecurity.gov/planners/index.htm#a0=1. Do the same for a partner who will also receive Social Security benefits. In general, the amount you receive for Social Security retirement accounts for about 40 percent of your pre-retirement earnings.  $____

    *  Private pensions from all employers  $____

    *  Personal savings. This includes money you have  in the bank and earnings on 401(k)s, 403(b)s,  traditional and Roth IRAs, and other investments:  $____

    *  Cash value life insurance. These are whole life or variable life policies.  $____

    *  Part-time income you and/or your partner expect to make.   $____

    Total monthly sources of income:   $____

    You do the math:

    Total monthly income needed:  $______

    Subtract total monthly sources of income:  – $______

    How much you’ll need to make up for each retirement month:  = $______

    Plan, now, ways to earn and/or save more for retirement.

    Figure out how much you’ll need.

    According to the Employee Benefit Research Institute, 56 percent of workers have no idea how much they need to save for retirement. On average, people need at least 70 percent of their yearly pre-retirement income. This can vary, depending on your age and needs. You will need more if you need to pay for your medical care. To estimate how much you might need, use a tool atwww.choosetosave.org/ballpark. Other calculators to help you plan can be found atwww.choosetosave.org/calculators. Include estimates for health care and other costs, such as a new car and home repairs. {Note: It will be easier to get a car loan if you buy the car while you are still employed.}

    Total monthly income needed:  $____

    Action Step

    Make an appointment with a financial planner at work or on your own to discuss retirement saving options that best meet your needs.

    Ways to Well-Being book by the American Institute for Preventive Medicine. www.HealthyLife.com. All rights reserved.

    © American Institute for Preventive Medicine

  • Debt-To-Income Ratio: Faqs

    FINANCIAL HEALTH

    Young couple looking over bills together.

    A healthy debt-to-income ratio is an indicator of financial stability. Just as the term implies, this ratio compares the amount of money you pay toward debt against your income.

    A stable debt-to-income ratio is anything 43% and lower. Someone with a higher percentage may struggle to make ends meet and keep up with their payments.

    When applying for a mortgage, lenders will use this number as a determining factor, so it’s essential to know where you stand. In most cases, you must have a debt-to-income ratio under 43% to get a qualified mortgage when buying a home.

    Calculate debt-to-income ratio

    The equation looks like this: Total monthly debt payments ÷ monthly gross income (before taxes) = debt-to-income ratio

    Here’s an example: Let’s say you make $6000 each month before taxes, and you have an $1800 mortgage, $300 car payment, $150 student loans, and $50 credit card payment.

    ($1800 + $300 + $150 + $50) ÷ $6000 = debt-to-income ratio

    $2300 ÷ $6000 = 0.38

    Your debt to income ratio is 38%.

    Bills as debt

    *  Monthly rent or house payment

    *  Auto, student, or other monthly loan payments

    *  Monthly alimony or child support

    *  Monthly credit card payment

    *  Any other debt

    © American Institute for Preventive Medicine

  • Understand Bitcoin

    FINANCIAL HEALTH

    A digital gold bitcoin.

    The recent popularity of Bitcoin may have you wondering what it’s all about. Here’s what you need to know.

    *  Digital currency. Bitcoin is not linked to any physical representation of value. It is used as a medium of exchange or a store of value.

    *  Decentralized. No bank or organization controls Bitcoin, and it is not backed by any government or economy.

    *  Mined. Bitcoins are generated through a process called “mining.” It takes massive computer systems (and a lot of electricity!) to mine Bitcoins.

    *  Blockchain. Mining uses complex math puzzles to create a new “block” that is added to the Bitcoin chain. The blockchain is recorded in a public ledger.

    *  Stored in a “wallet.” A digital wallet is required to store the encrypted key that accesses your Bitcoin. It’s like a virtual bank account.

    *  Unregulated. No government or organization has regulatory oversight of Bitcoin. Bitcoin is anonymous and there is no recourse if stolen.

    © American Institute for Preventive Medicine

  • Save For More Than Just A Rainy Day

    Financial Health

    Invest in your future.

    Money doesn’t grow on trees, but it can grow when you save and invest it wisely. First, identify what you want to save for:

    *  Emergency funds? (Plan for three to six months of expenses.) Holiday expenses? Vacations? A house? College for your kids? Retirement?

    *  Rank order your goals.

    Invest, but do not put all your eggs in one basket.

    Diversify with stocks, bonds, mutual funds, IRAs, real estate, and commodities, such as gold and silver. Find out more about investing fromwww.mymoney.gov. Things you can do on your own:

    *  If your employer has a retirement plan, such as a 401(k), have as much deducted from your pay as possible, especially if your employer matches some or all of the amount you contribute.

    *  Get resources on planning for retirement and long-term care fromwww.csrees.usda.gov/fsll.

    *  Check out “529” prepaid tuition and savings plans for college fromwww.collegesavings.org. These offer tax-saving advantages.

    *  Get professional investment advice from employer sponsored programs or from your financial planner. Find a certified professional from the Association for Financial Counseling and Planning Education atwww.afcpe.org.

    Revisit your budget:

    *  Pay off credit card or high interest debts first. Then use some or all of the payment money for your savings plan.

    *  Put aside whatever you can in savings accounts, checking accounts, and certificates of deposit.

    *  Look for additional ways to save fromhttp://investor.gov/sites/default/files/Saving-and-Investing.pdf

    *  Decide the best ways you are likely to save money.

    – Have your paycheck automatically deposited in your bank and have some go directly into one or more savings accounts.

    – Save money you get from tax refunds, work bonuses, and extra income.

    Action Step

    Beware of investments that promise high returns with little or no risk. If it sounds too good to be true, it usually is.

    Ways to Well-Being. Published by the American Institute for Preventive Medicine.

    © American Institute for Preventive Medicine

  • Don’t Get Scammed

    FINANCIAL HEALTH

    Money locked in chains.

    Banks, government and companies will not ask you to pay a bill on the phone. Don’t send money or give out personal information over the phone or by text.

    Scammers can put up fake caller ID information. It may look like it’s from someone you know when it’s not. Don’t believe caller ID.

    These methods of payment don’t provide fraud protection. Real companies won’t ask you to do this. Know the risks of wiring money and gift cards.

    © American Institute for Preventive Medicine

  • Use Credit Cards Carefully

    Financial Health

    Smart use of credit cards can help you control costs and your credit score.

    Using a credit card is safer than carrying cash, makes it easier to track your expenses, and helps you establish credit. And you need a credit card to make purchases online or by phone. But be careful with credit card use to avoid getting into debt.

    Tips to use credit cards wisely:

    *  Make payments on time to avoid: A late fee; a possible increase in your interest rate; having your credit rating go down. According toCreditCards.com, one payment that’s 30 or more days late could lower your score by 60-100 points.

    *  Keep from opening new credit cards. You may save 10 or more percent on a purchase if you sign up for a credit card, but your credit score could go down 10 points for each new card you open.

    *  Limit the number of credit cards you have. Having too many alerts a lender of how much debt you could accrue. But don’t close unused cards, especially ones you have had a long time. A longer credit history helps you have a higher credit score.

    *  Limit individual store and gas cards. These usually have very high interest rates. Opt for two major credit cards (American Express, Discover, Master Card, or VISA). Look for ones with low interest rates and that best meet your needs.

    *  Control credit card use. To avoid interest, only charge what you can pay in full when you get the bill.

    *  To limit interest costs, make more than the minimum payment. Your credit card statements show you how long it will take to pay off your balances if you make only the minimum payments. Aim to keep the balance to less than 25 percent of the total amount you can charge.

    *  Have one or more regular bills billed directly to a credit card. Examples are your monthly electric, gas, and/or cable bill or your mail order prescriptions.

    *  Do not use credit cards for cash advances. You pay a fee for the service and interest rates are very high (often 25 percent or higher).

    *  Read the fine print. Zero-percent interest for balance transfers and purchases can save you money. But you need to pay off the entire balance on the total amount financed by the due date, such as after 6 to 18 months. If not, you may be charged interest on the amount from the original purchase date – not just on the remaining balance. Check for balance transfer fees, too.

    *  Once a year, check your credit score for accuracy. This is a free service from each of the three nationwide credit bureaus – Equifax, Experian and TransUnion. Do this online athttps://annualcreditreport.comor by phone at 1-877-322-8228.

    Credit Scores

    The most common credit score (FICO) range is from 300-850 (the higher the better). Lenders use your payment history on your debts and bills as one of the biggest factors in your credit report and credit score. You are more likely to get lower interest rates and fees for loans, as well as credit cards if you maintain a good credit score – about 700 is good; above 750 is excellent. Lenders consider you a credit risk if your score is below 600.

    Action Step

    If you are an impulse buyer, leave your credit cards at home when you shop. If you are easily tempted to buy items online or while watching shopping channels, switch to a non-shopping website or  TV show, or to a DVD.

    Ways to Well-Being. Published by the American Institute for Preventive Medicine.

    © American Institute for Preventive Medicine