1. Get Your Free Credit Report

The first step to recovering from bad or no credit is to get your free credit report. This will outline all of the loans that you have, all of the credit cards that you have had, how long those accounts have been open, and how much is still owed. It will also include information about loans and credit cards that you have defaulted on, court judgments that have been placed against you, and any debt collections that have been utilized in an attempt to collect a debt from you.

You may obtain this free report from AnnualCreditReport.com. Once you receive yours from the three reporting bureaus, you should review all of the information on it, including your credit score. The three reporting agencies are TransUnion, Experian, and Equifax. These agencies use the information contained within your report with them to generate a specific credit score. This score is typically used by lenders, potential employers, and landlords to determine your creditworthiness.

You must evaluate the credit reports from all reporting agencies to make certain that all of the information on your report is correct. If an error is present, it could have a detrimental impact on your quality of life. If you see an error, you have the right to dispute that error and any other inaccuracies that you stumble upon. If left on your report, it could impact your ability to do just about everything – get a job, rent or buy a home, get approved for a loan, buy a vehicle, or even open a checking or a savings account.

2. Improve Credit History

The next step to going from poor or no credit to good credit is to improve your credit history. This is a step that involves many additional steps. Below, we will outline these:

• First, always make certain that you pay your bills on time. This will strengthen your credit score. Many banks offer online bill pay services that you may use to set up automatic payments. This type of service may be used to pay loans, credit cards, utility bills, mortgage, rent, and bills that are similar in nature.
• If you have current debt – such as loans and credit card bills – you should pay down those balances and make sure they are not at their limits. If you allow the balances to go towards the limits or over the limits, it could quickly negatively impact your credit score. You should pay off the dent with the lowest balance first and then pay the next debt with the lowest balance after and so on and so forth. Many elect to pay off the debt that has the highest interest rate first. This will allow you to have your money pay down the actual debt first and not just the interest.
• The third bit of advice that is productive is helping paying down your credit is to keep your credit card accounts open and active even if you have paid off the balance. This will help increase the amount of time that you have a credit history. By having a longer credit history, you will have a better credit score.
• You should always avoid submitting many applications for credit at once. This pings the credit reporting agencies and will have a negative impact on your overall credit score.
• If – for some reason – you have issues paying your creditor, you should contact them right away. There may be some sort of solution that they are able to offer before the missed payment affects your credit score. It is always better to reach out to a creditor than to try to ignore them.

3. Don’t Fall for Credit Repair Scams

There are many credit repair companies out there that are scamming consumers. They provide a promise that they can remove the accounts from your credit report that are resulting in a bad credit score in a fast manner. It must be understood that no solution for bad credit is quick and fast. It took time to cause bad credit and it will take a while to fix the bad credit. There are companies out there that do offer solid credit repair services. One such example is Green Path.

4. Keep Balance Utilization Down

If you are trying to improve your credit score, it is important that you keep your credit card balances down. It is best to keep utilization below 30%. For maximum scoring benefits, keep your utilization down to 9% or lower. You may keep it lower by paying the balance that you carry on it earlier than the closing date of the associated statement. You may also make several payments a month, or request your line of credit to be increased. Additionally, you can keep cards opened that you are not using. All of the free space opened on each balance will play a role in averaging your utilization.

• To help boost your credit score, you should place paying on time a priority. This accounts for approximately 35% of your total FICO score. You may set up reminders in order to pay your bills on time or set up the payments on automatic payment. This way, you will never forget to pay any of your creditors.
• Diversify Credit Products – If you have an interest in improving your credit score, you should diversify the credit products that you have. For example, if you have a mortgage, a car payment, an installment loan, and credit cards, that variety will actually improve your credit score.
• Another way to boost up your credit score is to become an authorized user. If you have a family member that has a credit history that includes a good payment history, becoming an authorized user on that account could help you experience a boost to your own credit score.

What Does the Credit Score Mean?

A credit score is a numeric value from 300-850. It represents the risk that you pose to lenders. It also helps in predicting just how likely you are to repay the debt that they extend to you on time. Higher scores – those above 700 – indicate that you are low risk. This type of score results in ease in getting approved for loans, the best of the best when it comes to interest rates, and even higher limits being given on credit. The credit score is calculated by the payment history, the credit age, and the level of debt that is currently displayed/present in the credit report.

What Do the Numbers of a Credit Score Mean?

As mentioned previously, the credit score goes from 300 to 850. The following outlines what each group of numbers mean as it pertains to your credit report:

• 300-649 – This is high risk and the person with this score will have issues getting credit.
• 650-699 – This is average credit and the person with this score will often find that they have higher interest rates IF they get approved for any type of credit.
• 700-749 – This is considered to be good credit. In most instances, the person seeking credit products will be approved.
• 750-850 – This is considered to be excellent credit and the person with these scores are easily approved and usually get the best rates.

What Factors Influence the Credit Score and What Percentage Do They Influence?

While we have touched on factors that impact the credit score through this guide, in this section, we are going to pinpoint those factors exactly and put the percentage at which they influence, too. These are as follows:

• Amount Owed – 30% If you lower the amount used on your credit card or decrease your debt to limit rate, your score will increase.
• Credit Mix – 10% It is ideal to have a mx of credit products on your credit report – such as loans and credit cards.
• Length of Credit History – 15% If you have a longer credit history, it indicates that you have a lot more experience with credit.
• New Credit – 10% if you have a lot of inquiries on your report in a short amount of time, it can hurt your credit report.
• Payment History – 35% If you have a good payment history, it will contribute to a good credit score.

Why Does a Good Credit Score Matter?

Lenders, landlord, insurance companies, utility companies, employers, and more may use your score to determine eligibility and if you are eligible for a credit product, they will be able to determine the rates that they will have you pay. Your credit report must be accurate and reflect in a positive manner on your in order for you to maintain a healthy financial reputation. If you would like assistance with your finances, visit us here at Somerville Bank today at one of our many locations: https://somervillebank.net/locations/

The post How to Go from Bad or No Credit to Good Credit appeared first on Somerville Bank.

Preparation Tips

The following outlines a list of tips that are highly beneficial in total preparation for tax season:

1. Go to IRS.gov – The website, IRS.gov is available 24 hours a day, 7 days a week. If you need help figuring out how to get ready for tax season or have any questions or just want to look up information. Millions of people in the United States utilize this website to learn more about tax solutions and the website even allows you to file your taxes and pay any due taxes.
2. Gather up All Records – It is important to keep up on all associated records because it helps make a tax return much easier to complete. Having good, solid records and being organized can help in finding deductions and credits that you may qualify for.
3. Online Tools – When getting your taxes together, there are many online tools that you can use to help you gather up everything that you need, and teach you how to complete your taxes without the assistance of a professional.
4. Highly Reputable Preparer – There are many tax preparers out there today. Not all of them have the same level of experience, though. When preparing for your taxes, you should use the IRS Directory of Federal Tax Return Preparers in order to find a highly reputable preparer. This database will help you find a preparer in or around your area that have professional credentials and participate in the IRS program for filing season.
5. Electronic Filing – In today’s world, the IRS encourages its citizens to file tax returns on an electronic basis. It is recommended that you choose direct deposit for any refunds that are due to you.
6. Direct Deposit – When you file your taxes, you should choose to have your refund direct deposited. This is easier, faster, and a reliable and a highly secure way to actually receive a refund. You may elect to have the money deposited up to three accounts. According to the IRS, it is much more likely to experience issues with a tax refund check than a direct deposit. It could be lost, stolen, uncashed, or even misdirected.
7. Report Unemployment – If you drew unemployment during the year, you should make certain that you report that income when you file your taxes.
8. Report ALL Income – You are legally required to report all income from every source – including gig economy jobs, 1099s, and W-2, and Wage Statements and Tax Statements.
9. Accuracy is Key – When you submit your tax return, you should make sure that your bookkeeper and you review the return for accuracy. If your return is accurate, you can avoid delays in it being delayed. Check your name, Social Security numbers, account numbers, routing numbers, and other information.
10. Review Publication 17 – You should review this publication because it gives you the rules for filing a return to the federal government. There is a new format that helps to make the publication easy to understand and download.

Need Someone to Help You Prepare Your Tax Return?

If you need to have help preparing your tax return, you will quickly find that there many different types of preparers out there. You may choose from certified public accountants, enrolled agents, several types of attorneys, and others who are not professionally credential or other type of credential. Your information is highly sensitive. It will include information about your marital status, your kids, all of your Social Security numbers, and other financial information. It is best to opt for a reputable tax preparer.

How to Pick a Reputable Tax Preparer

There are many steps that you may take that will allow you to choose a tax preparer that is reputable. The following outlines these steps:

1. First, you should elect to not work with preparers that state that they can get you larger refunds than other preparers are able to get you.
2. You should never work with a preparer that bases fees on the percentage on the refund you are entitled to or who provide the offer to deposit parts of your money from your refund into their accounts.
3. Make sure that the preparer that you use includes their unique PTIN on the business transactions that they engage in.
4. Make sure that the tax preparer provides you with a copy of your return when it is finished.
5. Tax preparers that are on top of their game will ask to see receipts, records, and other types of documents.
6. You should never sign a tax form that is blank.
7. Ask the Better Business Bureau (BBB) about the tax preparer that you want to use to learn more about them.
8. You should always review the credentials.

What to Do with Your Tax Return?

Most people just spend their tax return when they receive it. In fact, most people have done this at least once. It is a perfectly acceptable option; however, it is best to try to avoid spending the return and pay yourself. On average, most taxpayers receive high and sizeable refunds. The average is $2,800 and higher. In a recent survey, many people were asked what they did with the money that they received. The following outlines the findings:

• 31% Invested
• 27% Purchased Food
• 28% Paid Down Debts
• 6% Spent it on Shopping Sprees or Going on Vacation

This means that six people out of every ten who receive a refund will use it to try to improve their finances. Honestly, we should all strive to do this. The following outlines tips on how you can use your tax refund in a productive manner:

1. When you get your tax return back, you should place a priority on paying off your high interest debts. If any of your debts carry interest of 16% or more, that is considered to be high.
2. You should take your tax return and create an emergency fund. This can be used to make up for lost time at work, unexpected mechanical issues with your vehicle, and even household emergencies. It is ideal to have an emergency fund that includes about the same amount of money that you would make within 6 months at your job.
3. If you have a mortgage, you can use your tax return in order to make an additional payment or add to the principal of the account.
4. You can place the refund in a high yield savings account so that your money makes money, over time.
5. If you have an annual retirement plan, you can use the refund that you receive in order to max out your plan contribution. You may also put the money in some other type of investment account. If either account is tax-advantaged, you will have the ability to make that money grow even larger, over time.
6. In addition to the above, you can invest your tax refund into an indirect investment. These include business endeavors, making purchases that you may sell for a profit.
7. The earnings that you accumulate throughout the year are held back by a certain percentage. This is in case you owe taxes in the future. If you get a refund yearly, you should have your W-4 withholding this will allow you to have larger paychecks throughout the year.
8. Invest in yourself. Do things like buy a new home, sign up for a bank account, use some of it to build your credit through a secured credit type of credit product.

How Long Should You Keep Your IRS and Associated Records?

You should keep your tax returns and all of your associated tax records for a period of up to three years. If you are self-employed or have served as a guardian or a Rep Payee to another individual, you should keep the returns and associated for up to seven years. If you file a claim from a loss such as a bad debt deduction or any worthless securities. If you have any other questions about how long to keep your tax returns and associated records, you should contact your tax preparer.

Conclusion

If you need assistance with your tax returns, you may contact one of our financial associated here at Somerville Bank. In addition to standard financial advice, we offer savings accounts, checking accounts, and other types of financial products that can help you maximize your tax return. For more information, you may visit one of our locations at: https://somervillebank.net/locations/

The post Preparing for Tax Season and What to Do with Your Refund appeared first on Somerville Bank.

The Main Objectives

When saving money, the main objectives include knowing where the money that you have is going, to set goals that are clear and may be realistically accomplished, and to automate the entire process of saving. Actionable steps are imperative. The following outline some basic steps to help in getting started with your money saving endeavor:

1. Track Spending – To start with, you will want to record every single expense that you have. It does not matter if it is something small like a coffee purchase or something larger like a smart television. You may use a spreadsheet, go simple and use a notebook, or go digital and use an app. The goal is to see where your money goes each month and help you to identify areas that you may cut back on spending.
2. Budget Creation – The next step is to create a budget. This is a specially-designed spending plan that aids in the allocation of your income towards both your spendings and your savings. In most instances, financial advisors recommend what is called the “50/30/20 Rule”, that is, spend a total of 50% of the take home pay that you have on your needs, spend only 30% on your wants, and then focus on savings and the repayment of your debts with the last 20%.
3. Set Specific Goals – If you have a desire to save money, you should have a specific goal or even several specific goals. You may want to create an emergency fund that includes up to 6 months of earnings so if something happens to your main earnings, you can have an account to fall back on. Another goal may be to save up for a down payment on a home or save up for a down payment on a vehicle. Another goal includes planning for your retirement.
4. Pay off Debt with High Interest Rates – When you want to make the most of your money, it is important that you pay off any debt that you have that carries a high interest rate. Examples include credit card balances. The money that is saved can then be directed to your savings account – where it can earn interest.
5. Pay Yourself First – You should have both a checking account and a savings account. Set up an automatic transfer from the checking account to the savings that you have each payday. This will allow you to invest the money into your savings rather than in your checking account where you can easily spend it.
6. Acquire a High Yield Savings Account – The next step to meeting your financial objectives is to open up a high-yield savings account. These types of accounts earn a higher interest rate than the traditional savings accounts that are available for consumers. Because of the higher interest paid on the balance, your money will grow quickly.
7. Separate the Bank Accounts – Many financial advisors recommend keeping your checking account and your savings account at two different banks. The reason being is that you will be less tempted to take money from your savings account to make purchases on impulse.
8. Windfalls Should Be Saved – If you have unexpected windfalls – such as a bonus from work, gift money, or an unexpected tax refund, you should save them by placing them in your savings account. It is not like you will miss the money because you weren’t expecting it to begin with.

How to Reduce Spending

There are several unique strategies that you may indulge in that will aid in the reduction of spending. The following outlines these ideas:

1. The 30-Day Rule – If you want to buy something that is considered to be “non-essential”, you should wait 30 days before officially making the purchase. This will ensure that you are not impulse buying. Additionally, it gives you the opportunity to think more about the purchase. If you do not want to do the 30-Day Rule, you could make it any time frame that you want – 24 hours, 72 hours, two weeks – the choice is yours. Just make sure that once you make the choice that you stick to it.
2. Shopping Lists – When the time comes to buy groceries and other household staples, it is important that you make it a habit to create a shopping list. When creating the list, be sure to see if you can obtain any coupons for what you need, and/or look up any loyalty program benefits. Go through the pantry, fridge, and the freezer and only put items that you truly need on the shopping list. Once you get to the store, be sure to stick to the list and do not indulge in any impulse purchases.
3. Eliminate Subscriptions – In this day and age, it is quite likely that you have at least one monthly streaming or gaming subscription. Look at your bank statement and see if you are being charged for memberships and other charges that you no longer want. If the answer is “yes”, you may cancel those subscriptions and/or services. If you have phone and internet bills, it is possible to call and negotiate a lower rate on your services.
4. Cook at Home – As simple as it is to run out to grab a bite to eat, it may prove to be extremely costly. If you want to save money, prepare and cook the food that you eat at home. This includes your lunches that you take to work. While there are many delivery services that make eating out a simple option, those, too, come with fees.
5. Cut Down on Energy Costs – Energy costs are often among the highest of expenses for people. You should unplug items when not in use to prevent the accumulation of phantom power. You should use thermostats, update your home’s insulation, lower the temperature on your water heater, reduce the amount of laundry that you do each week and pay attention to other activities that could have a detrimental impact on the amount of money that you may for energy. You may even consider the integration and usage of solar panels.
6. Use Retirement Accounts That Offer Benefits – You should make use of retirement accounts offered by your employer. Typically, these come with tac advantages and they may even include matching funds. If you allocate part of your income, you will not miss the money too much. The sooner that you start taking advantage of this type of account, the sooner you can take advantage of compound interest on the account. If your job does not offer these types of accounts, you should set up an Individual Retirement Account. You may do this with a financial institution. Just remember to make regular transfers into it so you reap the highest level of rewards.
7. The 52-Week Reward – This particular award is often referred to as the “Savings Challenge”. Basically, with each week in the year, you put that mount of money into your savings account to accumulate interest. For example, the first week of the year, you would put in $1.00, the second week, $2.00 and so on and so forth until you put in $52 on week 52.

How Many Americans Have at Least $100,000 in savings?

According to studies, up to 26% of all Americans have at least $100,000 or more saved. Many households have achieved this goal, especially those that include older people. Young adults account for only about 2.1%.

Contact Us Today

If you are interested in saving money, we here at Somerville Bank are standing by to assist you. We offer a wide range of unique services and plans across several locations – for your convenience. You will find that we offer services and features for both consumers and for businesses. We also offer credit cards, identity theft services, online banking, Zelle, and more!

Our bank was officially established in the year of 1910 in the Southwestern region of the State of Ohio. All the way to the year of 1989, our establishment was the smallest of nationally chartered banks in the United States. It has now grown to a total of seven full-service branch banks. April 2010 celebrated its 100^th anniversary!

We were once called Somerville National Bank; however, we recently changed to Somerville Bank. We pride ourselves in having over 30 + years of banking experience. All of our current management team has been with us for 20+ years. If you would like to learn more about savings or products that will render you successful in your savings goals, contact us at one of our branches today: https://somervillebank.net/locations/

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The United States Postal Service has fully committed to helping its customers avoid scams that are currently trending due to the holidays. The Postal Service believes that acquiring basic knowledge and equipping yourself with knowledge can help you avoid getting snowed over this holiday season by scammers whose hearts are two sizes too small.

Counterfeit Postage Scams

According to many studies, there are large amounts of counterfeit stamps that are being created and sold on the internet. The quality of the stamps is often high, which makes unsuspecting victims more willing to purchase the stamps. Many of these stamps are sold for lower costs than real stamps. If you purchase these stamps, it may seem as if you are saving money. Before too long, you will find that you will directly face additional postage costs, and you may even face legal consequences associated with using counterfeit postage stamps. You should only ever get stamps from the Post Office, or from the USPS online website – nowhere else.

Avoid Phishing and Smishing Scams

Phishing and smishing scams are those committed by fraudsters that want to steal personally identifiable Information. Examples include your Social Security Number and/or your debit or credit card numbers. If you experience this type of scam, it is likely that you will receive either a text or an email that provides you with a fake URL or a file that, when opened, could activate a virus or even hijack the electronic device that you are using at the time. Never click on a link that is provided to you by an unknown source. In fact, it is a good practice to just not click on any link at all in text messages or emails.

If a fraudster with hearts two sizes too small succeed in their phishing and their smishing scams, they will be able to successfully be able to carry out a wide assortment of crimes like financial fraud. These types of crimes can be very difficult to fix. In short, frauds are committing a form of “financial DNA”. In addition to the fraudsters using your information, they may sell it to impostors who will commit crimes with the information.

Protecting Your Mail

Each year, there are literally thousands of arrests made for mail theft and other types of postal-related crimes. These crimes typically involve regular people stealing mail out of mailboxes and taking packages left at the recipient’s home. This is a very common situation around the holidays. The good news is that there are some steps that may be taken that will help you in protecting any mail and/or packages that you receive. These steps include the following:

1. Pickup Mail – If you know that you have mail and packages, you should retrieve it as quickly as you are able to so that no one else has the chance to take it.
2. Overdue Mail – If you are expecting mail and it is overdue, you should inquire about it immediately. This is especially true if you are expecting a credit card, gift card, money, or another valuable.
3. Avoid Sending Cash – You should err on the side of caution as to what you send and it is advised that you never risk sending straight cash in the mail.
4. Prompt Arrangements – If you are unable to directly receive a package, you should promptly make arrangements with the United States Postal Service to make another delivery arrangement or use the “Hold Mail Service”.
5. Hold for Pickup – If you are shipping packages, you should use the “Hold for Pick-up” option that is available at the USPS. This will let the recipient to pick up the package at the local Post Office.
6. Signature Confirmation – If you are mailing something that is considered to be “important”, request a signature confirmation.
7. Moving – If you are moving, you should file a change of address and other financial institutions to file a change of address.

Protect Your Mail Carrier

During the holidays, mail carriers are often targeted by criminals in order to steal mail and/or packages. If you see anything suspicious with your mail carrier, you should definitely contact the authorities immediately.

Holiday Bank Scams

In addition to postal scams, there are bank scams that occur around the holidays, too, and you definitely do not want to get snowed over this holiday season by fraudsters with a heart two sizes too small. The following outlines the most common bank schemes that pertain to banking:

• Fake Notifications – You may find that you receive notifications that are related to package problems. In most instances, these notifications include a link that you are supposed to click on. If you click on that link, it will typically be a form of malware or clickbait to get you to enter your information.
• Charity Fraud – Many scammers will send requests for fake donations in a text or in an email. This is especially true if a disaster or another type of high-profile cause has occurred.
• Social Media Advertisements – If you see popular or high-value items, services, or products offered at a price on social media that is just “too good to be true”, it probably is a scam. There are many fake stores that take payments from customers, but they never ship the products out.
• Fake Jobs – There are fake job ads out there that encourage you to pay to be trained and/or to share the bank details of your bank.
• Gift Card -Some scammers will impersonate different companies or other types of officials who insist on payment through the means of gift cards and/or cryptocurrency. These are fake. If you have a payment coming, you should not have to pay for the payment.
• AI Scams – There are deepfake models and cloned models and/or voices make impersonations of people or brands.

Steps To Protect Yourself from Holiday Bank Scams

1. Skeptical – When approaching potential scams, you should be very skeptical. If something is too good to be true, it probably is.
2. Verify – If you get notifications from shipping providers such as USPS/FEDEX/UPS directly – do not click on any links.
3. Charities – If you want to donate money to a charity, you should do it through a reputable source and/or their website directly.
4. Secure Accounts – When creating online accounts, be sure to create and use very strong passwords. This is also important when it comes to the use of multi-factor authentication. You should always set up as many bank account alerts and/or notifications as possible.
5. Pause – Before you share or send money, you should pause and really think about what you are doing.
6. Sensitive Information – Never share your usernames, passwords or codes with anyone.
7. Verification – If any business that you work with any financial company, credit card company, or bank and you receive any type of snail mail, email, or texts from them, call them directly to verify that the correspondence is from them.
8. Wiring Money – If you make an online purchase, you should never wire the money. You should use alternate payment methods that protect your purchase.
9. No Gift Cards – you should avoid paying for items with pre-paid gift cards. The seller will ask you to use a gift card and then they will ask you for the number of the card and the PIN. You will never get what you purchased. Once they receive the money on the gift card, they will use it for something else.
10. Credit Cards – If you use a credit card online and/or to make purchases, you should check the statement out on a regular to make sure there are no unusual or unknown charges.
11. Shipping Process – When you purchase something online, you should get a tracking number so that you may monitor the shipping process. If you are unable to get a tracking number, you should not make the purchase.

Conclusion

As you can see, there are many types of holiday scams that could snow you over that are done by criminals whose hearts are two sizes too small. If you need any support to protect yourself, you may contact us here at Somerville Bank. We offer a wide selection of services – including identity theft services. We offer checking accounts, savings accounts, and more. If you would like to learn more the services that will protect you from getting snowed in from holiday scams by people with hearts two sizes too small. Click on the following link to find a location now: https://somervillebank.net/locations/

The post How to Avoid Getting Snowed Over This Holiday Season by Scammers Whose Hearts are Two Sizes Too Small appeared first on Somerville Bank.

Scammers know and understand that grandparents only want a close, loving relationship with their grandchildren. As a result, sometimes this requires keeping secrets from their grandchild’s parents. Scammers know and understand this fact, so they exploit that very special bond. Thankfully, this elderly man did not fall for this scam. Unfortunately, there have been numerous people who have.

The Rise of the Digital Age Has Increased Scams

It is a known fact that there have always been a variety of scams, but the rise of the digital age has resulted in an increase in scams. Actually, it has been established that most adults within the United States have been targeted by a scam attempt or attack online. According to statistics, most people who are targeted are the elderly. This is because, simply put, that is who usually has the most money.

Those who are 55 years old and older own most of the wealth throughout the nation. Additionally, approximately one out of every nine senior Citizens has Alzheimer’s disease or another type of dementia. When you combine these two facts, it is really no wonder that older Americans are being targeted the most in scams.

What Makes it So Easy to Get Scammed?

Those who scam people are quite opportunistic. They are also getting more sophisticated in their schemes. Personal information is being more exposed than it ever has before. As a result of this fact, there are more opportunities for scammers to engage in activities that are illegal, like scams and identity theft. There have been numerous advancements in the following:

• Artificial Intelligence (AI)
• Deepfake Technology
• Websites
• Social Media
• Audio Clips
• Video Clips

Many scammers have even engaged in the creation of websites that look very similar to trusted companies and/or brands, loved ones, and government agencies.

Then, there are scams that are created that are designed to trigger very strong emotional reactions. Examples include those that instill fear, push for sympathy, and/or result in a strong sense of urgency. The following outlines a few of the ways that scammers use the emotions of their potential victims to succeed in their endeavor:

1. Scams for Digital Payments – Let’s say your mom received an email from PayPal serving as a receipt for amusement park tickets she never purchased. She calls the number listed in the email for assistance. An agent who is fake answers the calls, lets her know that they will work it all out. Immediately thereafter, they ask for her name, email, and bank details. Then, they use the bank information to transfer money from her account to their account, where they will have direct access to her money.
2. Fake URL/QR Scams – Ella scans a QR code on a flyer that is advertising free spa sessions in her area. It looks official as it is posted in her doctor’s office. Unfortunately, when she scans the URL or the QR code, it immediately obtains her personal information illegally and instantly installs malware on her cell phone. Many days later, she sees suspicious and unauthorized activity in both her email and her bank account.
3. Government Imposter – James received a call from a person claiming that they were from Medicare. They inform him that the benefits that he currently has will be stopped or cut unless he is able to confirm his Social Security number. He immediately provides the caller, and within minutes, his identity is stolen, and he ends up battling a disaster full of financial chaos for many years to come.

Anyone May Fall for Any Type of Scam

Scammers do not focus on what you may or may not know. They place an emphasis on what you are feeling in a specific time period. The tactics that they use are designed to cloud your judgment and make an impulsive-like decision, or many impulsive decisions. Experiencing the right conditions and under the right level of distress can cause anyone to be vulnerable. Continue reading to learn about many of the most common methods that scammers use to scam people:

1. Scare Tactics That Involve Tech or Digital Products – Scammers are good at letting you know that you must act very quickly. Many may get pop-ups on their PC or mobile device that make them believe that the device is infected with a virus. Someone from “Social Security” (not really, but they state that they are) will request that you confirm your Social Security number, or else it will be suspended.
2. Strange Emails or Sender Names – Many scammers will send emails from weird email addresses and will include very odd sender names. You should always check the sender’s name and/or email address. If something looks suspicious, trust your gut. You should close the email, do not click on anything in the email, and you should block and report the sender immediately to your email provider.
3. Language Complications – If you receive any type of communication that displays language issues such as misspellings, improper grammar, weird wording, or even odd symbols, it is likely a scam. Close, block, and report.
4. Requests for Personal or Financial Information – If you get any messages that ask for your personal or financial information, never give it away. If you know the company, give them a call yourself and inquire as to whether or not they have attempted to contact you. In most cases, you will find that they did not.
5. Threats and Messages from Authority Figures – If you receive any threats or messages that seem unusual from authority figures – such as cops, lawyers, and/or political figures- it is likely a scam. You may delete the message. The caller may claim that you owe a speeding ticket, that you failed to arrive for jury duty, and/or that you owe toll fees that have not been paid and that you must pay them immediately. If an agency or authority figure has legitimate business with you, they will contact you – typically – through snail mail or through the USPS.
6. Strange Friend Requests or Messages on social media – many scammers will create a fake profile to impersonate someone that you may have known. They may send you a friend request that is out of the blue or may send an odd message. These profiles may impersonate a friend, a previous romantic interest, or someone you work with or live near. In the end, they will attempt to ask for money, personal-based information, or will encourage you to click on links that are malicious.
7. Suspicious Phone Calls from Unknown or Unverified Phone Numbers – These scammers will often call and attempt to impersonate people that you know or people from financial institutions – such as your bank, health insurance company, or your loan company. They then record your voice when you speak so that it may be duplicated in order to make more suspicious phone calls to people that you know.

Key Features Associated with Scams

The following outlines many key features that are typically associated with preventing yourself from becoming a victim of a scam:

1. You should monitor your entire financial picture. This includes your checking account, saving account, any investments that you have made, credit card statements, and/or your retirement accounts.
2. You may set up alerts with your finances that may be set up with a designated relative, neighbor, or friend, without allowing them the ability to move or manage funds.
3. You should get your annual credit bureau reports from all three bureaus, ensure that the dark web is under surveillance for your personal information, and all holdings associated with any real estate that you own.
4. You should make sure that your email is monitored for suspicious activity.
5. If you become the victim of identity theft or any type of fraud, you should get support through recovery resources, remediation programs, and other types of support services.

Contact Us

We here at Somerville Bank offer numerous programs and features for our clients. These include safety monitoring, identity theft services, mobile banking, and online banking, and we are backed by over a century. If you want a bank with massive features, but hometown friendliness, check us out here at Somerville Bank. We have a total of 8 locations within the State of Ohio. We pride ourselves on being local, loyal, and a lifetime bank that is perfect for any customer – young or old- and from any walk of life. If you are interested in checking us out, click on the following link to find a location near you: https://somervillebank.net/locations/

The post Simple Strategies for Protecting Both Your Finances and Your Identity Online appeared first on Somerville Bank.

What is a Bank and Why Should I Put Money in One for Saving?

A bank is a specially-designed business that accepts monetary deposits and offers many financial services and products – such as loans, credit cards, and mobile banking. All banks are insured by the FDIC. This means that it is safe from being stolen or being lost. The following should be shared with youngsters:

1. The FDIC Logo – The first and one of the most important ways you can help a youngster learn about money is to show them the FDIC logo and explain that it provides security for money in the bank for -at least – $250,000.00. Immediately following the lesson, you should take your child to a bank and ask them to find a FDIC logo. Then, you should have them open up a savings account where they can start saving their money. You may encourage savings by seeking out sales in your local grocery store, using coupons, looking up various careers and learning about the salaries associated with that position.
2. Explanation – You should explain to the youngster that money may be deposited in both a regular bank account and a savings account. You may liken the savings account to a plant, explaining that the more that you put into it, the more it will grow to larger amounts. You should explain that the checking account is the one that is typically used to make purchases and that is accomplished through writing a check, using a debit card, or an ATM card.
3. Savings Goals – Finally, you should discuss why it is important to save money. Examples include to make a large purchase, to have money for emergencies, and to fix and/or replace things owned. By saving money in a bank, the youngster should learn that this is a very important step because thew money cannot be taken, stolen, or damaged while stored in a bank.

The Concept of Goals and Savings

When teaching youngsters about money, it is essential that you explain the concepts of goals and savings. The child should learn that goals are those things that you have a desire to achieve or that you have a yearning to accomplish. The goals may be short-term or long-term.

A savings goal is something to do with what you have a desire to buy. In order to achieve the goal, you must teach the child that they should save their money and discipline themselves not to spend anything until the savings goal is accomplished.

For example, if a child wants to attend the local fair, they may save up for the gate entrance and the tickets or the arm band for the event. This is an example of a short-term goal. A teenager may want to purchase their own vehicle. This is an example of a long-term goal.

You may openly discuss ideas for how the youngster can earn money and possibly even estimate how long it will take in order to earn the total amount required.

Budgeting and Saving

The next way to educate a youngster on money is to teach them about budgeting and saving. You should teach them that a budget is a plan that is highly organized that can help the child in tracking how much they spend, what they spend the most money on, and how much is saved over a specific time frame.

During this lesson, you should teach the child the difference between a “want” and a “need”. Of course, a “need” is what cannot be lived without having it – like food and clothing. A “want” is something you can live without, but would – very much – like to have.

By incorporating a budget into a child’s life, they will be able to learn exceptionally valuable lessons at a young age. This could actually prevent your child from getting into debt at a later time in their life.

Sharing

When you teach youngsters about money, it is important that they learn that helping the community, organizations, or some other type of charity is important. Sharing will allow the child to understand that money can have a positive impact in the lives of others. For example, donating money to a local food bank, or giving to Toys for Tots around the holidays are both great ways to share money and make a positive impact on someone’s life.

Compounding Interest

While not completely necessary, it is important to teach youngsters about compounding interest. When you make money, you need that money to make money for you. This will help increase savings dramatically – especially if it is making more money through compounding interest. You should include the following information when teaching a youngster about interest:

1. When money is deposited in a bank, it is called “principle”.
2. When that principle makes money through earning, that is referred to as “interest”.
3. Once interest is obtained, that money is yours to keep.
4. “Compound interest” is the amount that you earn on your principle after the first month and that helps in ensuring that the money actually grows into larger amounts.
5. When you deposit money in a bank and you earn interest on that amount, that is added together to create a new “principle”. The next time that you earn money on the new amount, and each time thereafter, that is the compounding of interest.
6. When looking for a bank account to save money in, you will want to select a bank that has the highest interest rate because this will ensure that your money grows more quickly.
7. You must save money in a bank that is backed by the FDIC only. That way, the money actually works for you to make more money.

Earning Money

Now that the youngster in your life has learned about creating a budget, banks, savings, interest, and other principles of financing, it is time to teach them how to earn their money. You can explain that most people earn money by getting a job – which is a position that requires you to do a certain task and earn money in return.

The ability to obtain a legal paying job may be at 14 years old or 16 years old – depending on the location. Many young adults may elect to become involved in a career. That is, a position that a person works most of their life. Examples of careers include welding, law enforcement, the military, and/or a doctor.

Examples of jobs include working as a cashier at a fast-food business, stocking at a local grocery store, or delivery driving.

Loans and Credit

If teaching a youngster about money, you must – at the minimum – touch on the topics of loans and credit. If they want something but do not have the money on hand, they may obtain a loan or use credit to make the purchase. The strongest points that should be made is that using loans and credit make the purchase cost more due to the interest charged on the purchase, it is always best to spend cash, and avoid taking out a loan or using a credit card – if possible. That which the youngster should take away from this lesson is the following:

1. A loan is borrowing money for some purpose with the promise to pay it back at a later time with a payment schedule that is agreed upon. The amount of the loan is principle and the fee imposed on the loan is the interest. The time it takes to pay back the loan is the term.
2. Credit is typically given through the means of a credit card that has a designated initial amount on it. The money may be spent and a payment is required each month (that includes interest) until the balance on the credit card is paid off.

Conclusion

In this comprehensive guide, you have been introduced to various topics that will help you teach a youngster about money. We here at Somerville Bank feel that it is imperative that all kids should be taught the financial aspects highlighted in this guide. In addition to this, we encourage that every child has a savings account. If old enough, we recommend both a checking account for everyday purchases, and a savings account to save up to meet both short-term and long-term financial goals.

We would like to invite you to visit one of our many branches with your child. Not only can we set up a savings account for your child, but we can also educate them on other financial services that we offer youngsters. Click on the following link now to find a location near you: https://somervillebank.net/locations/

The post Teaching Youngsters about Money appeared first on Somerville Bank.

What is a Small Business?

A small business is one that identifies as “for-profit” and is privately owned. It is considered to have independent operations and is not considered to be nationally dominant in its field. There are specific criteria that is used by the Small Business Administration to determine the size of a small business.

In most cases, the employees total 500 or less or they make less than $7.5 million in revenue each year. State-chartered banks are uniquely positioned to help small businesses succeed because they combine financial expertise and deep community ties and local decision-making.

Why are Small Businesses Are the Backbone of Local Economies

In the United States alone, small businesses are considered to be a critical component of the economy. It has been determined that these types of businesses drive job creation, high levels of innovation, and overall growth of the economy. When operated in small local areas, they aid in keeping money flowing through that community.

Small businesses encourage entrepreneurship. They offer a large variety of services such as varied products and associated services. These businesses provide a pathway, too, for individuals that are planning to follow a path for advancements in their career and developing their skills. They create ripple effects that include more local jobs, a stronger tax base, and a highly vibrant identity as far as the community is concerned. When these businesses experience success, the entire state of operation benefits.

The State-Chartered Bank Advantage

A state-chartered bank is a commercial bank that receives its charter to operate from a state government agency and not a federal government agency. The agency for the state that monitors these types of banks, and they may be monitored by the Federal Reserve System; that is, if they are members of this system and/or the Federal Deposit Insurance Corporation (FDIC). In the United States, banks may choose between a state charter and a federal charter. If a federal charter is preferred, it must be granted by the Comptroller of the Currency.

Those state-chartered banks are familiar with the local markets, the industries, and the challenges faced by those markets. The decisions of the bank are made under local and/or state oversight; federal chartered bank systems are dictated by headquarters that are far away. Relationship banking is also achieved at a high level.

In local state-chartered banks, the relationships shared with clients are significantly stronger than with standard banks. These banks know their clients by name and are knowledgeable about the businesses that their clients run. These banks have a higher level of community focus than bank chains. The state-chartered banks are rooted in serving certain, specific regions. They are able to highlight their level of flexibility and the ability to offer personalized solutions compared to those banks that are just online or are national chains.

Key Financing Options for Small Businesses

State-chartered banks are able to offer numerous key financing options for small businesses. The most popular options are listed below, with a brief explanation of each:

1. SBA Loans – This is a small business loan that is considered to be partially guaranteed by the Small Business Administration (SBA) in the United States. It is typically issues by a private lender – such as a credit union or a bank. While not directly issues by the SBA, this type of loan helps businesses with various types of financing for several different purposes. Examples include startup expenses, purchases, and/or working capital. To obtain this type of loan, the business needs a very strong credit history, a thorough business plan, and to provide financial documents that are highly detailed.
2. Term Loans – Term loans for businesses are loans that provide a designated lump sum of money that will need to be repaid over a fixed period of time – such as five years or longer. Most of the time, a business will use this type of loan to make one-time costly purchases. Examples of these purchases include equipment, real estate, or an expansion. To qualify, the business applying should have a good credit history, a steady revenue source, and a financial record that is completely solid.
3. Lines of Credit – Business lines of credit provide a highly flexible and revolving access to working capital and needs that are short-term in basis. It allows a business to take what they need, as they need it and then repay them – which will allow the business to access to credit lines that may be consistently drawn from.
4. Commercial Real Estate Loans – These loans are perfect for purchasing and/or improving pieces of property that are or will become part of a business.
5. Microloans and Specialty Programs – These financial products are designed to help in the start up of a business or for entrepreneurs that are underserved. Simply inquire about these programs through a state-chartered bank and you will be amazed at what is available.

Real Stories, Real Impacts

There are numerous stories online about real people with real stories that have been positively impacted by state-chartered banks. For example, a family who owed and operated was capable or expanding to a second location with the services offered by state-chartered banks.

State-chartered banks do not simply provide funds, they also provide mentorship, guidance, and directions to businesses. Additionally, they place a high level of importance on developing long-term and close relationships with the clients that they serve. The banks take great pride in seeing each business that they work with in becoming successful and playing a large role in the state’s overall economic fabric. If you want to work with a bank that treats you and your business as a top priority, you should opt for a state-chartered bank, such as us here at Somerville Bank.

Beyond The Loan – Other Ways State-Chartered Banks Support Small Businesses

There are numerous ways that state-chartered banks support businesses. These include but are not limited to the following:

• The State-chartered banks offer financial education to the clients that they serve. This could be in terms of webinars, workshops, mentoring, and even one-on-one advising.
• The banks offer networking opportunities for their clients. Examples include sponsoring of local businesses, associations, and even chambers of commerce.
• There are cash management systems offered by state-chartered banks. These include – but are not limited to – merchant services, payroll, and tools that ensure fraud protection.
• State-chartered banks also offer local advocacy for both entrepreneurs and small businesses within the state where they serve.

Practical Tips for Entrepreneurs Seeking Financing

If you are an entrepreneur that is in search of financing, Follow the practical tips outlined below:

1. You may start by preparing a business plan and be sure to include financial projections.
2. You should understand what your credit profile looks like.
3. It is best to meet with and develop a relationship with your banker before you require any funds.
4. When working with the bank, be sure to make sure that you are open and honest about challenges that you face in your business. If you are honest and proactively communicate, you will find that the bank is more willing to help you.
5. You should look at the bank as a business partner and not just a lender.

Conclusion

We here at Somerville Bank thank you for reading through our guide about state-chartered banks such as ourselves. State-chartered banks are more than just lenders; they are community partners who are passionate about and believe in the dreams of local businesses. Your vision for your business deserves a partner who understands your business and your community. Together, we here at Somerville Bank and your business can keep dreams alive and thriving in your community. Visit Somerville Bank today and meet with a business banking specialist to take the first steps towards your business dream.

Who Is Somerville Bank?

Somerville Bank is a state-chartered bank that offers many unique services to our clients. These include mobile banking, Zelle, online bill pays, account access 24/7, Mobile check deposit, account notifications, tax documents, and stop payment requests. Soon, an all-new look and a digital banking system will be integrated into Somerville Bank. We are your one-stop shop for all business-related banking needs.

In addition to this, we also offer credit cards, identity theft services, online banking, checks, and switch kits. We offer 8 convenient locations. If you are ready to harness the power of solutions that we offer for businesses, and would like to achieve specific business goals, we can help you. You may visit one of our locations or give us a call and one of our locations to learn more. You may click on the following link to find a location nearest to you: https://somervillebank.net/locations/

The post Financing Local Dreams: How State-Chartered Banks Power Small Businesses appeared first on Somerville Bank.

Based on statistics, it has been estimated that 6 out of every 10 homes in the United States will experience some type of financial emergency each year. Nearly half of all of those people experiencing unanticipated financial issues would struggle to come up with just $400.00. Those are staggering statistics given that most often pay over $500 to have a single tooth extracted. What would happen if your car’s radiator broke or your tooth became infected? What if you got a cancer diagnosis and had to miss work due to having to have radiation treatments done daily? 

Financial Stress

If you are facing unanticipated circumstances and are forced to put out money that you simply do not have, it is likely to result in a vast amount of financial stress. This type of stress is capable of completely overwhelming you. It does not matter if you are attempting to manage the debts that you have, are trying to deal with creditors, or just trying to buy groceries; financial stress is capable of destroying a person. 

The good news is, there are many practical steps and numerous resources available to help individuals and families with navigate the financial challenges that suddenly arise in life. Preparing for financial strains can feel like a burden and difficult, but if you have the right mindset, tools, and strategies in place, you can achieve success in this endeavor. In this guide, you will learn how to prepare for the unanticipated and successfully navigate saving, budgeting, and managing debt so that you are able to achieve all of your goals. With money, you should always expect the unexpected. 

Create a Comprehensive Budget 

In terms of financial wellness, a budget is considered to be the absolute foundation. A budget is more than just keeping track of your earnings and your bills. It allows you to completely understand where the money that you have is going and helps to make certain that you are able to successfully cover all of your essential expenses and prepare for those unanticipated circumstances. There are – at least – three individual components to a budget. They are as follows: 

1. Essential Spending – This spending includes housing, transportation, food, child care, healthcare, and the minimum payments associated with your debts. You should ensure all of this constitutes no more than 50% of your total take-home earnings. 
2. Essential Savings – You should strive to dedicate 15% of the before-tax income that you have for your retirement. You should take a total of at least 5% of the income that you take home for an emergency fund for all those unanticipated circumstances that life throws at you. 
3. Discretionary Income – The part of your income that is left over after the essential spending and savings should be used for additional savings, personal goals, and/or entertainment. 

The following lists some tips for creating and maintaining a budget:

1. You should look at and track the way you spend your money and see if you are capable of identifying areas where it is possible to cut back and save more. 
2. You should take the time to prioritize what you find to be “important” and “fun”. Then, you can start saving for those items. Examples include going out as a family or taking a vacation. 
3. Utilize one of the many tools or apps to automate and to monitor the budget that you have. 

Build Up an Emergency Savings Fund 

The next step to prepare for unanticipated circumstances is to set up an emergency fund. This is a safety net for your financial livelihood. This type of fund will help you handle all those unexpected expenses that occur in life, without completely derailing your savings or having to resort to taking on an immense level of debt. The following outlines the goals that should accompany every emergency fund:

1. When you first start your emergency fund, you should make a goal of putting $500 to $1000 into the fund. 
2. As time goes on, your goal should be to save at least 3 months ‘worth of essential expenses. 
3. Finally, your goal should be to save up 6 months ‘worth of essential expenses. 

The following outlines how to save successfully when it comes to your emergency fund for unanticipated circumstances: 

1. Automate your savings by setting up deductions with your employer on your payroll to go to a specialized account. 
2. You should cut-back on all non-essential expenses until you have a lot of backup money in your emergency savings account. That means stop eating out, plan out the meals you want to make prior to grocery shopping, and cutting up unnecessary subscriptions like magazines and/or streaming services. 
3. Make sure the emergency fund is accessible and it is liquid. Instead of a traditional savings account, you should consider a money market account or CDs that are short-term. 

Insurance Coverage Evaluations

We all know and understand that insurance policies are a favored tool as far as financial preparedness is concerned. You should review all of your policies – health insurance, homeowners’ insurance, renters’ insurance, flood insurance and vehicle insurance in order to make certain that you have the right amount of coverage for your needs. Flood insurance is known to take up to 30 days to go into effect, so be certain to plan ahead. Each year, make sure that your insurance policies are renewed. 

Control The Debt You Have Accumulated 

It is no secret that managing debt is considered to be crucial when it comes to financial-based stability. If debt is left unchecked, it can leave you stressed out, negatively impact your credit and your FICO score, and put a dent in your ability to successfully handle those unanticipated circumstances that life throws your way. The following outlines ways that you may pay down the debt that you owe:

1. In the Avalanche Method, you place an emphasis on paying off the loan that has the highest interest rate first because it will save you the most money on interest as time progresses. 
2. In the Snowball Method, you pay off the smallest debt first. This helps to build healthy momentum and helps in providing a solid sense of accomplishment. 

Debt Management Tips

1. Make sure that your debt-to-income ratio is at or below 36% at all times. 
2. If you have to borrow, go for the lowest interest rate and minimize the terms of the loan. 
3. Place a focus on paying off the debts that have the highest levels of interest so that you pay less, over time. 

Keep Cash Accessible 

In terms of unanticipated circumstances, it is advised that you keep a certain amount of actual cash accessible. In many emergencies, you may not be able to access your money through an ATM. This means storing cash in a safe place in case you need it will prove to be 100% invaluable. 

Play an Active Role in Financial Safety 

If you want to prepare for a financial emergency, you should be proactive, not reactive. It is advised that you put in a consistent effort. This means you should start an emergency savings account, review your insurance policies, create an emergency plan, seek financial guidance, and this will allow you to create a financial safety net that is strong and renders your success when faced with all of those unanticipated circumstances in life. 

Contact Us Today 

We here at Somerville Bank work diligently to help our customers develop a proactive approach in their finances. We have over 115 years of experience. We offer consumer accounts, credit cards, savings accounts, mobile banking, online banking, loans, auto loans, identity theft services and more. 

Our financial advisors are standing by and ready to assist you in discovering your options when it comes to handling financial emergencies. If you are ready to get to work on preparing for all of those unexpected circumstances that life will throw at you, we are ready to help you! 

Somerville Bank now has a total of 8 convenient locations throughout the State of Ohio. When you decide to take a proactive stance in your finances, simply click on the link below to find a branch that is nearest you. You may then call us or come in for customized financial advice. We will walk you through all of the options that we offer and we will make recommendations for your financial success based on your income, and your needs. We offer online services, lobby services, and Drive thru services in all of our locations. Our main office is in Eaton, Ohio and can be reached by calling: 937-456-5588 The link to identify locations near you is as follows: https://somervillebank.net/locations/

We look forward to serving you! 

The post How to Prepare Your Finances for Unanticipated Circumstances  appeared first on Somerville Bank.

Who Do Scammers Target the Most?

It is a known fact that scammers will target certain segments of the population. While they may scam anyone, they especially target individuals in older age groups. The following outlines who scammers are known to target the most:

• Those that are in their seventies or are older.
• Individuals that live alone.
• People who have recently lost their spouse or have become disabled.
• People who now have taken on new financial responsibilities.
• Those who do not have a lot of savings and are concerned about that.
• People who worry about the ability to pay their debts and/or remain in their own home.
• Those who have the capability of conducting their own affairs and do not depend on others for assistance.

What Types of Scams Impact Older Populations?

The following outlines the most common scams that directly impact older populations:

1. Friendship/Relationship Scams – This type of scam occurs when a scammer lures a victim into a friendship or a relationship that is considered to be bogus. Once the con is in full swing, the scammer will rob the victim of their money. In most instances, older adults who have done through a major life event – such as a death of a spouse – fall victim to these types of scams. The scammer will befriend the victim by connecting through mutual interests and/or mutual friends. Once the connection is made, the scammer exploits the victim’s trust. Contact is typically made through social media platforms, dating sites, and messaging apps.
2. Investment Scams – Older adults strive for financial security and want to leave a nest egg for their kids and their grandchildren. In investment scams, scammer will target seniors with fake investment opportunities and/or fake annuities. In terms of money making, the only person that usually makes any money is the scammer. If an opportunity sounds too good to be true, it probably is.
3. Telemarketing Scams – Many scammers perform telemarketing scams where they try to sell something, they want to steal a victim’s money or they want to obtain personal information. It has been estimated that Robocalls cost people about $40 billion dollars each year. The elderly should be encouraged to hang up and not answer unwanted phone calls and to register their phone number with the Do Not Call Registry. At donotcall.gov. In some instances, the scammer who makes the call may pretend to be a friend, neighbor, or a family member.
4. Sweepstakes Scams – There are many scammers that specialize in sweepstakes scams. They use this level of excitement in order to get the victim to make a poor decision. The victim will get a phone call, an email, or a letter stating that they have won some type of lottery or sweepstakes and that they have made it to the finalist stage. Then, they will ask the victim to make a down payment or pay a fee in order to get the prize money. The main strategy they use to get money is to tell the victim that they have to prepay the tax amount on the money that they have won. If you do not remember entering the sweepstakes and/or lottery and it sounds too good to be true, it probably is – never send any money to someone who claims you have won a prize.
5. Technical Support Scams – These types of scams are some of the oldest, yet most common. Victims are contacted through a phone call, an email, or a pop-up message on a home pc. The message will claim that a problem has occurred with their computer and they are able to resolve it by being provided with remote access. Once access is granted to the supposed “technician”, they may gain access to any information that is stored on it or any network in which the PC is connected. Malware may be installed in order to bypass password-protected files. The elderly are most at risk to these scams because they simply do not understand the dynamics of true technical support. They should be instructed to never click on any links or give money to someone who claims they can fix their issue. Additionally, older populations should be instructed how to update their computer and update their computer’s security software.
6. Cryptocurrency Scams – Cryptocurrency is the newest type of digital currency that is used to pay for various types of purchases and/or to make investments. Scammers have recently started taking advantage of many people because cryptocurrency is not at all easy to understand. Additionally, these transactions are often irreversible and are not easy to track. Cryptocurrency does not have a lot of legal-based protections and if someone is scammed, there is likely no legal recourse that can be taken. Older adults must research investments and seek professional assistance if they want to avoid being scammed. They should also be told that cryptocurrency does not result in immediate riches.
7. Home Repair Scams – It is a known fact among scammers that homes require regular maintenance and repairs as they age. There are scammers out there that will knock on the doors of the elderly and will offer to do something simple around your home- examples include cleaning out the gutters. Once they complete that work, they will claim that they have identified other types of problems with the home that must be immediately repaired. The elderly should be instructed to only work with contractors that are licensed and insured, that they should never pay upfront, and they should not fall for the gambit of an individual offering to do one job but then stating other jobs need done.
8. Healthcare Scams – All of us – especially those that are older – want to remain healthy and safe. There are scammers out there that are attempting to exploit fears that relate to health in order to get money and personal information. If a victim is contacted about free prescriptions, miracle cures, medical bill relief, it may be a scam. Victims should only get medical advice and associated products from their primary care physician and avoid products and services that appear to be too good to be true.
9. Grandparent Scams – These scams take advantage of the elderly. Scammers will pretend to be someone in your family and acting as if they are in trouble and need money – immediately. They do this by scouring the internet and social media websites. When they have enough information to pull off the scam, they will make a call to the victim. They will then request money that will help them get out of a crisis. They may use artificial intelligence in order to create a voice recording that actually sounds like the loved one being replicated. They will request money to be wired, or money loaded onto different types of gift cards. Before sending money to anyone, you should verify the person’s identity, even if you are asked not to do that.
10. Imposter Scams – Scammers will often pretend to be someone who carries a level of authority – such as law enforcement, a government agency, or a bank. They may act as if they want to give you a government grant and/or they may be threatening you with legal consequences or fees. Victims must be instructed to never rely on caller ID in order to determine if a call is trustworthy. If a call is received from a so-called “authority”, the victim should be instructed to hang up and call that authority directly to validate the original call. If they are being threatened, they should know that the call is a scam. The victim should be told to never give money to a so-called authority figure if they call. They should not give money through wire transfers, cryptocurrency, or gift cards.

Other Types of Scams

There are other types of scams that may occur. Examples include charity scams, phishing scams, and affinity scams. If you have an older loved one, it is important to share this information with them so that they do not become the next victim and they should be told to consult with you or an authority to determine if they are close to becoming a victim of a scam.

Contact Us Today

We here at Somerville Bank offer many services and applications to our clients that will keep them safe from scammers. We also offer identity protection services. Contact us today and ensure the safety of your older loved ones for all of their tomorrows, Click the following location to find a branch near you: https://somervillebank.net/locations/

The post What are the Most Common Scams Targeting Older Adults? appeared first on Somerville Bank.

What is a Traditional IRA?

A traditional IRA is an Individual Retirement Account that is a type of savings account for your retirement that also offer you many tax advantages. When you contribute to an IRA, your contributions may be tax-deductible. Additionally, as your earnings grow, they are tax-deferred until the point where you want to withdraw the funds and it is then taxed as a type of ordinary income.

What is a Roth IRA?

A Roth Ira is also a retirement account for an individual. You may contribute funds after they are taxed. If you make withdrawals that are qualified during your retirement, they are actually tax-free. There’s no tax deduction that is upfront like there is with a traditional IRA. The earnings you get and your retirement are not taxed as long as certain conditions are met.

Traditional IRA vs. Roth IRA

The following represents the main differences between a traditional IRA and a Roth IRA:

Traditional IRA:

• If you make contributions that are tax-deductible, you don’t have to pay taxes on those contributions until you withdraw the money
• Any type of nondeductible contributions can be directly withdrawn with no tax and no penalty fee.
• All of the earnings that are made are tax-deferred until you actually withdraw them.
• If you make a contribution, you may qualify for a tax credit up to $1,000.

Roth IRA:

• You will never be forced to take money out of your account, no matter how old you are.
• When you make a contribution to your account, you could get a tax credit of up to $1,000.
• You may make a withdrawal at any time without having to get any time, penalty, or tax fees.
• You never have to take money out of the account, no matter how old you are.
• Any earnings that you make are tax-deferred. That means that you so not have to pay taxes on them until you withdraw them.
• If you are able to satisfy the distribution requirements, you can withdraw your earnings without having to pay taxes on them.

What is the Taxpayer Eligibility for The IRAs Available Today?

IRAs are designed to offer taxpayers numerous opportunities to put back and save money for their retirement. The best part is, while saving, the account holder is capable of enjoying many different types of tax benefits. The eligibility for the benefits associated with an IRA is carefully monitored by many complex rules that are based on the income level, the filing status, and the access that they have to pensions provided by their employer. In this section, we will expound on the eligibility criteria for the Traditional and the Roth IRAs.

To start, we will outline the requirements for the Roth Account:

• These types of IRAs have very straightforward criteria. It is income and filing status. In earlier years, for example, the phase out range for contributions to a Roth account the phaseout range was $156,00 for taxpayers who are married and filing jointly. The amount was $99,000 for those taxpayers filing as head of household and single taxpayers. If a couple were married and file separately, they have very strict limits. Phasing out is between #0 and $10,000 of income if either of the spouses had direct access to a pension of an employer.

Now, on to the Traditional IRA:

• The contribution deductions of a traditional IRA are actually very complex. The requirements take in the filing status, the income, and whether or not the individual and/or their spouse had access to any pension provided by an employer. At one time recently, married taxpayers that filed jointly had a phaseout of the starting income of $83,000 and the amount of $156,000 if only one in the relationship had access to the employer-provided pension. If both did not participate with an employer pension, there are no income limits associated with the deductible contributions. Single and head of household taxpayers that did not have access to any type of pension had no income limits.

How Do You Know if a Traditional IRA IS Right for You?

The following outlines some main points to determine if a traditional IRA is right for you:

• Peak Earning Years – The income and your tax bracket is likely much higher than it will be when you retire, contributing to a plan that is tax-deferred now may help you save your tax dollars later on in life.
• Smart Investments – The earlier that you start investing, the better off you will be able to maximize the overall compound growth of your investments. The contributions will build up earnings and will be tax-deferred until you are ready to start investments for your retirement.
• The Tax Bracket – If you suspect that your tax bracket will be lower when you become retired, you should opt for a traditional IRA now.
• Age – There is no certain age outlined to get an IRA, you can get it anytime that you like.
• Employer Plans – If you have a 401(k) or another type of employer plan, you can still make contributions to a Traditional IRA. Just know that deducting contributions may be limited for you- depending on how much you make and if you have signed up for a retirement plan with your employer.

Why Do People Sign Up for a Traditional IRA?

This type of IRA provides investors with a way that they can save for their retirement and they will experience numerous advantages – as far as taxes are concerned.

What are the Disadvantages Associated with a Traditional IRA?

While a Traditional IRA has numerous benefits, there are also some potential disadvantages associated with this type of account. They are as follows:

• The income taxes due on the contributions and gains while retired.
• If you make an early withdrawal, you will experience a 10% penalty for the withdrawal.
• You may end up having low contribution limits on your plan.
• This type of IRA does not offer company match programs like those that are associated with 401(k) plans.

Is it Better to Have an IRA or a 401(k)?

Overall, the IRA is not the better option. Both are considered to be tax investments, but to optimize the benefits that you have, it is better to have both an IRA and a 401(k) plan. They offer what many refer to as “complementary advantages” when used together. The 401(k) is better for those that have matching programs with their job and the IRA allows for more investment options and is considered to be highly flexible.

Do I Lose Money on my IRA if the Stock Market Crashes?

If you make investments that are considered to be “risky”, you could lose money in the event that the market crashes. You should make sure that you make solid investments, your portfolio is considered to be “diversified” and that it does not come with a hefty amount of fees. Truth be told, though, even if you find that the economy is good, it is possible to lose returns.

Where is the Safest Location to Put Retirement Money?

If you want safe locations to stock up on retirement money, you should place funds into bonds, treasury bills, and notes. These are considered safe as they are backed by the federal government. In addition to this, you can also invest in IRAs and 401(k) plans.

What is the Best Income Each Month for Retirement?

Retirement income earned each month should equal to – at least – 80% of the amount that you earned prior to retiring. Your bills, preferences, and goals, as well as your overall achievements will play a large role in determining how much you should or are able to put into retirement.

What is the Average That Social Security Pays When You Turn 65?

The average benefit for individuals that receive a Social Security check at the age of 65 is now $1,583 each month. This is a reduced amount because the full retirement age is currently 67 – when you reach this age and file for Social Security, you will get more. If you decide to retire are 65, you will only receive 86.7% of the full amount.

Conclusion

If you are interested in saving for your retirement, we here at Somerville Bank can assist you. We offer many options and our financial advisers can help guide you on how to make the most of your money. In addition to retirement information, we offer checking accounts, savings accounts, and assistance for businesses as well. For more information, visit us at one of our many locations: https://somervillebank.net/locations/

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