Best Ways To Save Money And Stay Safe In 2013

Managing Your Finances

1. Make 2013 the year you tackle credit card debt.

2. Get organized.

3. Review your credit reports for accuracy.

   Protecting Your Identity 

1. Password-protect your smartphone.

2. Review the privacy policies of your phone’s apps. 

3. Install mobile security software that lets you lock your phone remotely from another phone, computer or tablet. 

4. Notify your financial services providers and employers if you changed your address in the past year. 

Saving on Homeowners and Car Insurance

1. Learn what your homeowners and auto policies cover.

2. Look for lower policy rates from competitors.  

Keeping You and Your Family Safe 

1. Be careful taking down or disposing holiday decorations. 

2. Prepare yourself for storms.

THE RECOVERY – A NEW REALITY?

So, two “WHEN” questions: WHEN am I going to get a REAL rate on my certificate, and WHEN will the economy around here get back to normal?  The UN-clever and UN-funny answer we need to consider is that for practical considerations, this is the new Reality.

I have to consider things like this when planning for the credit union and reluctantly, I’m forced to look at things in Michigan, the nation and the effects of the current international economic situation. Though the unemployment rate in Michigan is easing. The Euro market is teetering (technical term) and may face the loss of some members. The 10-year T-Bill is at historical lows; currently around 1.5%, with possibilities of going lower and few expectations of going materially higher. The relative magic of the 10-year T-Bill is that mortgage loan rates are generally tied to it and it is telling us, “Stop worrying about inflation for the next five to ten years.”  Ergo, nothing is going up for at least five years, if not longer.

Kind of a downer, especially for us Boomers dependent upon savings rates, but there are some rays-of-light and positive perspectives to consider. First, we are actually in a recovery. Not an exciting one but things are going in the right direction, albeit slowly. Second, things around here are relatively stable and that’s good because you should be able to make some decisions to help you optimize the circumstances instead of waiting for a complete collapse.

I hate saying this, but you should be looking to pay down or payoff your borrowings. Yes, at the credit union, but look at the other loans you have at that “other place” and see if the credit union can get you a better rate. We refinance vehicles, mortgages and personal loans. Are you paying fees on your checking account? You should be talking to our branch staff to see if you can close that second checking account at the “other place” and take advantage of Sterling Van Dyke Credit Union's CORE relationship advantages that not only provide you with free services, but interest rate bumps on loans and certificates too. You should consider moving some of your extra money back into certificates to get any type of rate advantage. Many members have let maturing certificate drop into their regular savings or money market account. Even if it is only a five or ten basis point advantage, why wouldn’t you grab it? Get your CORE account bump. Consider longer and multiple terms on your certificates and “laddering” multiple certificates maturities to increase the overall yield while preserving liquidity. Remember to keep a six month cushion in liquidity for tires, insurance and the little emergencies. Consider letting our Financial Advisor look at your longer term alternatives.

We have a ways to go, but remember that you belong to a NOT-FOR-PROFIT credit union that is established for the benefit of its members – not a bank where the goal is to maximize how much they can get out of you. Take advantage of every opportunity your credit union offers. We’re with you for life, and all its realities.

http://www.greatbasin.org/blog/?p=432

Blog By: Sterling Van Dyke Credit Union

Women to Watch 2012: An In-Depth Look at the Industry Supporters

By Myriam DiGiovanni


When Credit Union Times first launched the Women to Watch program, we wanted to focus on those women working within credit unions. It’s been an honor to be able to recognize those who challenge the status quo and push creative solutions to address what ails their credit union and oftentimes, the industry as a whole.
What we discovered is that it is just as important to shine the spotlight on those women who have been tirelessly dedicated to providing support to credit unions. The list is far from complete, but we thought this Women to Watch focus report would be a good start to showcase those who choose to champion the credit union mission every day.
A brief look at each of our honorees appeared in our Oct. 3 print edition. Here are detailed profiles of each of these industry leaders. Click "next" at the bottom of each page through the following slide show to see them all.

Continue Reading by clicking here.

Blog by Sterling Van Dyke Credit Union.

BACK TO SCHOOL SAFETY

Backpacks are a popular and practical way for students to carry their books and supplies.  When used correctly, the backpack’s weight is distributed to some of the body’s strongest muscles and is an efficient way to carry these items.  However, if backpacks are too heavy or worn incorrectly, then they can cause back, neck and shoulder pain, as well as posture problems.

To choose the right backpack, look for the following:

1)     Wide, padded shoulder straps.  Narrow straps can dig into shoulders causing pain and restricting circulation.

2)     Two shoulder straps.  Backpacks with only one strap cannot distribute the weight evenly.

3)     Padded back.  This protects against sharp edges from inside the pack and increases comfort.

4)     Waist strap.  This can distribute the weight of a heavy load more evenly.

5)     Lightweight.  The backpack itself should not add much weight to the load.

6)     Rolling backpack.  This type is good for students who must carry heavy loads. 

To prevent injuries when using a backpack, remind your children of the following:

1)     Always use both shoulder straps

2)     Tighten the straps so that the pack is close to the body.

3)     Pack as lightly as possible.

4)     Organize the backpack so all the compartments are being used.

5)     Stop at your locker as often as possible and remove any unnecessary books or items.

6)     Bend down using both knees while the backpack is on.

Parents should encourage your child or teenager to tell you if he/she is in pain or discomfort while carrying the backpack.

Parents should talk to the school about lightening the load during school hours so children can stop at their lockers throughout the day.

Researchers found that the average weight of a child’s school backpack was 18 pounds, or 14 percent of his/her body weight.  Studies have found that children carrying backpacks exceeding 10 percent of their body weight are more likely to lean forward while walking-potentially increasing their risk of back pain.  Parents should talk to their children and make sure that they are using their backpacks correctly. 

WAYS TO AVOID COMMON FINANCIAL MISTAKES

1)     Create a Budget

Keep track of where your money goes by creating a budget.  Make a list of your monthly expenses and subtract this from your net pay monthly.  The money left over is your discretionary income.  A budget will help you spend wisely, control debt and help plan for major purchases and emergencies.

2)     Discuss money and financial goals

       Talk about your and your partner’s money strengths and weaknesses and your short-

       term and long-term financial goals.  Try to find a common ground for spending and

       saving.

     

3)     Share responsibilities

 Decide how to handle day-to-day finances.  You can decide who is responsible for what in your finances.  Make that you review your household finances together on a monthly basis so that you both know what is going on.

4)     Talk about “What ifs”

 What would happen financially if one of you were to become disabled or died 

  unexpectedly?  If you don’t know, then you need to talk about it.  You should have a 

  will and think about buying or adding disability insurance and possibly life

  insurance.  Make sure that your beneficiary designations on retirement and other

  accounts and life insurance policies are up to date.

Money mistakes can be expensive and could impact your future security.  Take the

time now to work together to make sure that you avoid future financial mistakes. 

Where to Find Better Interest Rates For Your Savings

Are you tired of earning a pittance on your hard earned savings? Not too long ago you could earn 3%, 4%, 5% or more by sticking your cash in a high yield savings account. But today? Not even close. Interest rates now top out in the low 1% range, and it seems like there’s no light at the end of the tunnel.

So what’s a savvy saver to do? Well, you could just accept the low rates as an unavoidable consequence of the current economic landscape, or… You could get creative and get at least a bit more bang for your buck. Here are three ways to get a better rate for your savings.

High yield (rewards) checking accounts

While savings accounts were once home to the highest interest rates, checking accounts are now getting in on the action. Be forewarned that you may have to jump through some hoops – like setting up direct deposit and making a minimum number of debit card transactions per month – but if you’re up to the challenge, you can score a great rate.

For example, MoneyRates.com currently lists reward checking accounts with rates as high as 5.01% APY. Note that many of these offers are regional, so you may have to shop around a bit, but there are some killer deals out there for the taking.

Long-term CDs with low penalties

I’ve mentioned this one in the past, but if you can find a bank with a low penalty for early withdrawal, you can use long-term CDs to get a higher interest with minimal downside risk. For example, Ally Bank has a 60 day interest penalty if you break their CDs early.

Given that Ally’s five year CD rates are paying roughly double what you can get from an online savings account, the break-even point is roughly four months. Beyond that point, you’ll come out ahead relative to having your money in a savings account, even if you have to access the money before the CD matures. And if rates rise dramatically, you can simply break your CD and re-invest.

If you go this route, here’s a tip: Split your money into multiple CDs. That way you can access just a portion of it without paying a penalty for early withdrawal of the full amount.

Series I savings bonds

Another solid option is to use Series I savings bonds, which are inflation-indexed bonds offered by the U.S. government. Rates on I bonds are updated semi-annually in May and November. As of right now, newly-issued I bonds are paying 4.6%, though that number will fluctuate over time depending on the inflation rate.

The downside here is that I bonds cannot be redeemed during the first 12 months, so they’re not a great vehicle for your emergency fund – or at least not for yourentire emergency fund. But once that 12 months is up, you can redeem them. Between 1-5 years after they’re issued, there’s a 90 day interest penalty, and after five years you can redeem them penalty free.

Beyond offering a decent interest rate (at least relative to a savings account), interest that you earn from I bonds isn’t taxed until redemption (i.e., it’s tax deferred) and it’s also exempt from state income taxes – as well as federal taxes if you use the proceed to for eligible education expenses.

But don’t get greedy…

And now… A word to the wise. In general terms, if you’re holding cash, you probably want if to be both safe and reasonably liquid. You should thus avoid locking it up or taking unnecessary risks with it. In this vein, I would recommend shying away from things like peer lending.

While outfits like Lending Club tout 8-10% annual returns, and you sometimes see them mentioned in discussions related to improving your interest rates, the reality is that they are neither risk-free nor liquid. While investments like this may have their place in your portfolio, they’re far from being a cash equivalent.

http://www.fivecentnickel.com/2011/08/01/where-to-find-better-interest-rates-for-your-savings/

Blog hosted by Sterling Van Dyke Credit Union

Types Of Home Loans

The biggest purchase a family will probably ever make is their home.  Researching how to make an informed choice on where and what type of home loan to apply for can seem to be a lot of work. It truly isn’t though.  Anyone who has access to the Internet can cut their research time down by merely researching instead on different types of home loans.

There are literally thousands of articles out there that can educate a consumer on any topic they need. This is truly a benefit that the age-of-Internet has brought to consumers. There are many online sites that will give you the benefit of their research to help anyone to find just the right home loan.  So researching via the Internet, will find a person all they would need to know about the different types of loans.

In this regard, the Internet makes it so much easier for the consumer who is contemplating becoming a first time home owner, to research types of home loans. Letting someone else who has done all the research inform the consumer is a great time-saving tool for busy consumers.

The simple act of typing what the loan is needed for and asking for the top recommendations from experts can prepare them to get their loan. Using all the technological tools available will greatly minimize finding out all a person needs to know on this subject.

The consumer contemplating the types of home loans can learn all they need to know about the difference in each. There are VA loans or Veterans Association loans. If at any time you’ve served in the service a consumer may qualify for this type of mortgage. It basically is a mortgage that is secured by the military. Basically, they the military, becomes the co-signer.

Then another option is the FHA or the Federal Housing Association. FHA loans are usually made available to lower income consumers, which reside in America. These loans are usually backed by the government. These loans can be very helpful to people that cannot afford a conventional down payment.

Then there are variable rate loans and fixed rate loans. The difference between a fixed rate and a variable rate are in how they set the interest that a consumer needs to repay. Obviously the fixed rate is one interest rate that is set for the term of the loan. A variable rate is one that the interest rate fluctuates during the course of the loan. Obviously there are advantages and disadvantages to each and a fair amount of research will be required to pick out just the right rate for the prospective home owner.

Here is where types of home loans come in handy. The research to be an informed consumer in the area of home loans can be greatly cut down by the Internets vast amount of available research. Not only can a consumer learn exactly what’s available out there for them to choose from, but, they can learn the right questions to ask when actually picking one.

http://howtomanagemoneytips.com/types-of-home-loans/

Blog by Sterling Van Dyke Credit Union. Sterling Van Dyke Credit Union services anyone working or living in Macomb, Oakland or Wayne County, Michigan. Current residents, retirees receiving a pension or social security and immediate family members are eligible to join. Sterling Van Dyke Credit Union is owned and operated entirely by its member and strives to follow the purpose of the credit union as set forth in the bylaws.