Month: July 2020

Guide To IRA Products And Their Recent Changes

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Q: I’m ready to start saving for my retirement, but the choices are so confusing! I’m also Man sitting at laptop with phonewondering about the recent changes made to Individual Retirement Account (IRA) products through the SECURE and CARES acts. How do I choose the IRA that’s right for me, and what do I need to know?

A: It’s commendable that you’ve started thinking about your retirement planning. There are important distinctions between each type of IRA, so it’s best to review them before making your choice. There have also been several recent changes to the structure and limitations of IRAs with the passing of the Setting Every Community Up for Retirement Enhancement (SECURE) Act in December 2019 and the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020.

This comprehensive guide to Individual Retirement Accounts, complete with updated information on the recent changes, can help you choose the option that best suits your needs.

Traditional IRA

Traditional IRAs are the most straightforward retirement accounts. Contributions are never taxed. Depending on eligibility, they may even be tax-deductible while significantly lowering your taxable income. Investment earnings aren’t taxed and there are no income limits for contributors.

The downside of traditional IRAs comes after contributions are made. All withdrawals made from a traditional IRA during retirement will be taxed at the going tax rate at that time.

Traditional IRAs are great for individuals who are currently in a higher tax bracket and anticipate being in a lower one during retirement. They’re also a good choice for employees who do not have access to a workplace-sponsored retirement plan.

Roth IRA

Roth IRAs are similar to their traditional counterparts, but have several notable differences. All contributions and growth are subject to taxes and are not tax-deductible; however, account holders can withdraw their money, tax-free, at retirement, as long as they are age 59 1/2 or older and have had the account for 5 years or longer.

There is also no age limit for contributions, though there are income and contribution limits for eligible contributors.  A Roth IRA is a good choice for individuals who anticipate being in a higher tax bracket during retirement and for those who may need to access some of their savings before retiring.

SEP IRA 

Simplified Employee Pension (SEP) IRAs are designed for individuals who have been employed in their place of work for at least three of the past five years. Contributions are made by the employer and are subject to a maximum amount. Earnings can grow tax-free and the account provides tax benefits for the employer. The annual contribution limits are higher than the limits for traditional IRAs, but are subject to fluctuation along with the business’s cash flow. Also, there are no catch-up contributions allowed for workers who are 50 years old and over.

A SEP IRA can be a good choice for small business owners wanting to avoid the heavy startup and maintenance costs that are commonly associated with conventional retirement plans.

Up until the passing of the SECURE Act, the limit for SEP IRAs was capped at 25% of an employee’s salary or up to $56,000, whichever is less. Now, that limit has been increased to $57,000.

SIMPLE IRA

A SIMPLE IRA, or a Savings Incentive Match Plan for Employees, functions similarly to a SEP IRA with the distinction that both employees and employers can make contributions. Eligibility requirements are forgiving, with employees who have earned at least $5,000 from the company opening the plan, and who expect to earn at least that amount in the current calendar year, being eligible to participate.

The contribution limit for SIMPLE IRAs was $13,000, with a catch-up limit of $3,000 until the passing of the SECURE Act, which increased the limit to $13,500. The legislation also established a new tax credit of up to $500 a year for businesses establishing a SIMPLE IRA with automatic enrollment. This credit is on top of the startup credit that is already available. Employers converting an existing plan to one with Eligible Automatic Contribution Arrangements (EACA) are also eligible for the $500 tax credit.

Spousal IRA

A Spousal IRA can be a traditional or Roth IRA and is designed for married couples where one spouse isn’t eligible for a traditional retirement account. Couples must file a joint tax return to be eligible and the account must be opened in the non-working spouse’s name. Contribution limits are determined by the working spouse’s income.

SECURE Act changes to retirement accounts

The SECURE Act made several significant changes for all IRAs:

RMD changes: IRAs have rules in place for required minimum distributions (RMDs), or a predetermined time when account holders must begin taking distributions. Up until Dec. 20, 2019, all holders of IRAs were no longer allowed to make contributions, and were required to begin taking distributions when they reached age 70 ½, irrespective of their employment status at the time. With the passing of the SECURE Act in December 2019, the age for RMDs increased to 72 years. Also as part of the SECURE Act, IRA holders can now continue making contributions indefinitely, as long as they can demonstrate earned income.

Changes for workplace retirement plans: Previously, employers were allowed to exclude employees who worked fewer than 1,000 hours per year from all retirement plans. With the passing of the SECURE Act, employees who work at least 500 hours in three consecutive years, and are at least age 21 at the end of the three-year period, are eligible to participate in employer retirement plans. This change takes effect in January 2021. Also, small businesses can now team up with other organizations when opening an employer retirement plan, enabling them to provide their employees with access to low-cost plans.

Changes for inherited IRAs: Until the passing of the SECURE Act, non-spousal inheritors of IRAs were allowed to withdraw funds from the account indefinitely. Now, they must empty the account within 10 years.

CARES Act changes to retirement accounts 

In March 2020, Congress passed the CARES Act in an effort to mitigate the economic fallout of the coronavirus pandemic. Part of the 300+ page legislation made changes to retirement accounts:

Changes for RMDs: The CARES Act waived all RMD requirements of IRAs for the year 2020.

Special allowances for coronavirus-related withdrawals: The CARES Act provides for expanded distribution options and favorable tax treatment for up to $100,000 of coronavirus-related distributions from eligible retirement plans to qualified individuals who have been adversely affected by COVID-19.

If you are considering opening an IRA, contact Destinations Credit Union.  We have many options for IRAs and give you the opportunity to build your nest egg slowly through regular contributions.

Consult your tax advisor for your individual situation.

Your Turn: Have you made any changes to your retirement accounts in light of the recently passed legislation? Tell us about it in the comments.

Sources:
https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers
https://www.usatoday.com/story/money/2020/04/05/changes-law-provide-retirement-relief-during-coronavirus-crisis/2950518001/
https://smartasset.com/retirement/simple-ira-vs-sep-ira
https://www.marketwatch.com/story/coronavirus-stimulus-package-tax-relief-withdraw-100k-from-your-ira-and-repay-in-3-years-with-zero-tax-liability-2020-03-27
https://news.cuna.org/articles/117793-brings-significant-changes-to-iras
https://www.investopedia.com/what-is-secure-act-how-affect-retirement-4692743
https://www.barrons.com/articles/here-are-4-things-retirement-savers-should-know-after-the-cares-act-and-secure-act-51589634001
https://www.investopedia.com/secure-act-4688468
https://weaver.com/blog/secure-act-brings-important-changes-retirement-plans

Should I Take The Zero-Percent Financing Offered By The Dealer?

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Q: I’m in the market for a new set of wheels, and I’ve seen some dealers advertising automobile showroom
zero-percent financing. Should I take this offer?

A: An auto loan without any interest sounds like a dream; however, there are many considerations before deciding to take out a zero-percent financing loan. Let’s take a closer look at zero-percent financing so you can make an informed, responsible decision about your auto loan.

What is zero-percent financing?

An auto loan offer of zero-percent financing means the dealer financer is offering to lend the buyer money without charging any interest over the life of the loan.

With traditional loans, the lender is willing to extend money to the buyer because the lender will reap the benefits of the interest payments over the life of the loan. A zero-percent car loan, though, offers no reward for the lender. In fact, the loan is actually being offered by the auto manufacturer. The automaker stands to benefit from the loan as much as it would from an upfront cash payment for one of its cars. The only difference is that the money is earned over a longer time span. Automakers may offer zero-percent financing on slower-selling models or to help clear out stale inventory to make room for newer models.

Can anyone qualify for zero-percent financing? 

Zero-percent financing may be heavily advertised, but it can be difficult to qualify for one of these loans. They are typically only offered to buyers who have excellent credit, including a credit score above 700 and a long credit history. These buyers are more likely to make every payment on time and they may even pay off the loan early, making it low risk and profitable for the automaker.

It’s also important to note that not everyone can afford to take out a zero-percent financing loan. Since the lenders are only profiting from the actual sale on these loans, they will rarely agree to bargain down the price, nor do they offer any other incentives, such as cash-back rebates.

When is zero-percent financing a bad idea

Zero-percent financing may not be in the best interest of buyers who can’t actually afford the loan. As mentioned, lenders generally will not bring down the price on a car with a zero-percent financing offer. Buyers may be blinded by the temptation of not paying any interest and therefore consider a vehicle that has a higher monthly price tag than they originally planned.

Another point to consider before committing to a zero-down financing loan is the term of the loan. Some of these loans feature longer terms than traditional auto loans, as much as six years. Six years is a long time to be paying for a car. The buyer’s auto needs may change before then and they won’t own the car for a year longer than they would have through a traditional loan. On the flip side, lots of zero-percent financing loans are only four years long, which can significantly increase the monthly payment amount.

Even if the loan terms do meet the buyer’s needs, it still may be worthwhile to skip the zero-percent financing and take out a traditional loan so the buyer will not miss out on cash-back rebates. These are typically not available on auto loans with special financing offers, and can mean missing out on robust incentives.  You should also negotiate your best “cash” price before taking the zero percent offer.  You may be able to save more by negotiating a better price on the car than you would by the lower interest payments.

Let’s take a look at the purchase of a single car and run it through both kinds of loans.

A car is selling for $20,000 with the offer of a zero-percent financing loan that needs to be paid off in four years. Monthly payments on this loan will amount to $416. Suppose that payment is too high for you and you would prefer to extend the term beyond the four years?  It may not be possible with the zero-percent financing.

Alternatively, the buyer can consider a traditional loan for the same car. An auto loan furnished by a credit union at the average national rate according to data extracted by the NCUA would give the loan an annual percentage rate (APR) of 3.45 percent. Over five years, this would amount to a monthly payment of $363. Destinations Credit Union currently offers a rate as low as 2.74% APR, making the monthly payments $357 over that same 5 years.

In addition, with a traditional loan, the buyer can take advantage of manufacturer rebates. If this car would have an offer of a $2,500 cash-back rebate, its price would drop to $17,500. Through a Destinations CU loan with an APR of 2.74 percent, the monthly payments would only be $312. The total amount paid on the car would also be less than the amount paid through the no-interest loan, at $18,757.

If the buyer chose to take out a loan through a bank, with auto loan APRs averaging at 5.10 percent, the monthly payments (without the manufacturer’s rebate) would be $378. If the manufacturer offered a rebate, that amount would fall to $331 a month.

Evidently, when there is a shorter loan term involved, it is not always worthwhile to take out a zero-percent financing auto loan.

If the offer does not feature a shorter loan term, the difference between scenarios wouldn’t be as dramatic. A five-year loan on $20,000 with zero interest would cost the buyer $333 each month, only $21 more than the traditional loan through a credit union after the rebate ($1,260 over the life of the loan); however, a five-year loan term may not be an option on a no-interest loan. Also, when you take out a loan through Destinations CU, you’ll enjoy personalized service and zero pressure to make a decision.

It’s best to run your own numbers through a free auto loan calculator to see what your actual monthly payment would be before taking on a loan. It’s the best way to determine if you can afford the payments without overextending your budget.

If you’re ready to get started on your auto loan, stop by Destinations CU today to get started. We’ll have you seated behind your new set of wheels in no time!

Your Turn: Have you chosen to forego a zero-percent financing option? Tell us about it in the comments.

Sources:
https://www.autotrader.com/car-tips/buying-car-whats-catch-0-percent-loans-222702
https://www.bankrate.com/loans/auto-loans/0-apr-car-deals-are-they-worth-it/
https://www.edmunds.com/car-loan/what-you-need-to-know-about-zero-percent-car-loans.html

Beware Back To School Tuition Scams

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Back-to-school season means a flurry of shopping — and a flurry of scams. Scammers young man studyingknow that students and their parents are caught up in a frenzy of preparations and errands and are, therefore, more likely to fall victim to schemes. As you get ready for school (whether online or in-person), look out for these scams targeting college students and parents of private school students that tend to peak before the start of the school year.

The tuition fee scam

How it plays out: A college student, or the parent of a private school student, receives a phone call from a caller introducing themself as a secretary or administrator at their school, or their child’s school. The caller claims the student or parent owes tuition fees and will not be allowed to return to school for the coming semester unless the fees are paid. They may explain that a tuition check has bounced or that a credit card payment didn’t clear. Alternatively, the caller claims the student’s grant or scholarship was abruptly canceled and the student is now being billed for the full tuition fee.

The caller insists on being paid the outstanding sum immediately or the student will lose their spot in the school. The “secretary” or “administrator” provides the victim with detailed information for wiring money or dropping off the cash at a private address. Of course, once the money is sent, it will never be seen again.

Protect yourself: This scam is easy to spot because most schools will not insist on immediate payment, or payment through a wire transfer. If you receive a call like the one described above, ask the caller detailed questions about the school, their position and the money owed. If it’s a scam, the caller will not be able to answer well. You can also explain that you need to see the actual bill before making any payments, and that you’d like to pick up the bill yourself from the school. Finally, you can insist on calling the school directly to make the payment.

The student tax scam

How it plays out: In this scam, someone allegedly representing the IRS calls a college student at a public university and claims they neglected to pay their student tax. The caller explains that the student tax helps fund the university and that failure to pay this tax can result in disqualification from class and possible imprisonment. They will insist on immediate payment via prepaid gift card or wire transfer.

Protect yourself: You can spot this scam by remembering that the IRS will always first contact people by mail. Also, the IRS won’t insist on being paid through gift card or wire transfer.

The scholarship scam

How it plays out: A scammer reaches out to a college student telling them they’ve been guaranteed approval for a scholarship or grant. The only catch is that the student must pay a hefty fee to receive it. Unfortunately, the scholarship is bogus and, if the victim falls for the scam, they will never see that money again.

In a similar scam, a victim is instructed to pay a fee to a company that will allegedly file a Free Application for Federal Student Aid (FAFSA) form in their name. Of course, no FAFSA form will be filed, and the money paid for this “service” will go directly into the scammer’s pockets.

Protect yourself: Student scholarships and grants are designed to help students and their parents pay for education; they don’t charge for eligibility. If an alleged scholarship claims to charge a fee before granting approval, it is most certainly a scam. Also, no company will guarantee approval for a scholarship or grant; there is always a vetting process of some kind before eligibility is determined. Finally, there is no reason to pay to have a FAFSA form filed; it can be completed easily online here.  For additional help, college students can contact the financial aid office at their university.

Scammers are out in full force before the start of the school year. Don’t let them make the grade! Stay alert and stay safe.  Visit the Fraud Page on Destinations Credit Union‘s website for resources to stay informed.

Your Turn: Have you been targeted by a back-to-school scam? Tell us about it in the comments.

 

Life Lessons Learned From the COVID-19 Pandemic

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If someone would have approached us a year ago and told us that, in 2020, the country woman putting on a maskwould essentially shut down for three months; the busiest thoroughfares in cities across the world would be empty of traffic; schools and colleges would close for an entire semester and blockbuster releases would be put on hold indefinitely, we probably would not have believed them.

Tales of mass shutdowns and cancellations of in-person gatherings, from sporting events to concerts to graduations, sound like scenes from an outrageous sci-fi movie with an unbelievable plot. Not real life, right?

We’ve all changed this year. We’ve lived through historic times, and it’s nearly impossible to experience something of this magnitude without it having an impact. The time-out from regular life forced us to reexamine our values, our relationships and our lifestyles, while determining whether we are living a life of design and not one of default.

Now that most lockdowns have ended and life is starting to return to normal in many states — or at least a warped variation of “normal,” — let’s take a few moments to reflect on some life lessons we can learn from living under lockdown.

There’s not much in life that is truly essential

When federal and state governments mandated that all businesses close their physical stores  unless they were deemed essential, many of us were forced to confront the reality that there are very few things in life that are actually essential. The raging pandemic turned reality upside down. Suddenly, that weekly manicure, daily latte from our favorite coffee shop or Friday night sports bar we thought we could never live without seemed silly, frivolous and completely unnecessary. Forced into our own homes with just our immediate families, we quickly learned what is truly important in life: Family. Friends. Health. Happiness. Everything else is really secondary.

Now that many businesses are reopening, we can use the opportunity the lockdown presented to reevaluate the things in life we call necessities, wants and needs. In practical terms, this can mean rewriting our monthly budgets, changing our daily habits, deciding to donate more money to charity or shifting our financial priorities in another direction.

There’s wonder in everything

When daily rituals and routines we’ve always taken for granted are disrupted for an indeterminate period of time, it lends a new sense of appreciation for the small things in life:

  • Sending our kids off to school
  • Hugging our parents
  • Going to work
  • Shopping in crowded malls
  • Having an adequate supply of toilet paper
  • Eating out
  • Attending weddings

And so much more. Let’s not lose the sense of wonder this surreal time lent to the everyday blessings of life or take for granted the important work of teachers, nurses and those who work in service industries.

Nothing compares to an in-person interaction

At first glance, the lockdown was the party-shy introvert’s dream. There was no longer an antisocial element with missing out on various events, from graduations to birthday parties to baby showers. During lockdown life, you could even attend a black-tie affair in your sweatpants; all you needed was a nice-looking top and a Zoom link.

But the lockdown was also one of the loneliest times for many people. It highlighted the universal need for social interaction, even if it’s as small as a few words exchanged with the clerk while at the checkout counter or the pizza delivery person. And when it was over and people began having in-person visits with family and friends again, there was a newfound appreciation for face-to-face interactions that was previously lost in a social world gone virtual.

Let’s not forget that initial excitement at seeing our family and friends in person again after months of virtual visits. We can let the lessons learned in lockdown continue to impact us positively by resolving to be fully present when spending time together. Whether that means resolving to turn our phones on silent or to put them away completely, this mindfulness can help strengthen our relationships forever.

We are stronger than we know

The first week of the lockdown brought many of us to the edge of panic and despair. No leaving our homes unless it’s absolutely essential? Work from home for the foreseeable future? Kids home from school without play-dates, indoor attractions or playgrounds? It all seemed so impossible, and many of us wondered if we’d make it past that first interminable day.

And then one day passed, and we realized we hadn’t lost it — well, not completely anyway. Another day went by, and then a week, and somehow, we were doing it. We were rolling with these strange new circumstances, adapting to a new routine, a new way of life, without falling apart. And many of us were even thriving under the newer, relaxed routine. We were riding out the lockdown like champions!  Of course, there are those with especially trying circumstances and some who have suffered mightily. Be mindful of this and empathetic as we encounter and interact with others.

Let’s not forget what the lockdown taught us about our own resilience, strength and courage. When pushed into a challenging situation, our true colors shine. Let us never underestimate ourselves ever again.

2020 has been a year unlike any we’ve ever seen. Let’s use these unique circumstances to grow in ways we never have before.  We at Destinations Credit Union are here for you!

Your Turn: What lessons have you learned while living under lockdown? Share them with us in the comments.

Sources:
https://togetherband.org/blogs/news/sustainable-lockdown-life-lessons
https://www.nytimes.com/2020/05/28/learning/what-have-you-learned-about-yourself-during-this-lockdown.html
https://www.shethepeople.tv/blog/lockdown-life-lessons-take-things-granted/

My Savings Account Has Been Wiped Clean. How Can I Replenish It?

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Q: The last few months have been really tough on my finances, and I’ve been forced to broken piggy bankuse my savings for getting by. My emergency fund and savings account are basically zero. Now that my financial situation is starting to improve, I’d like to start building these up again, but it’s all so overwhelming. Where do I begin?

A: Watching savings that took you years to build up disappear in just a few months can be disheartening, but it’s important to remember that you’ve made the right choice. Using emergency funds to survive prolonged unemployment, an unexpected large expense or a medical emergency is the best way to make it through a financial hardship. If your savings are depleted, though, you’ll want to start rebuilding as soon as possible to ensure you have the funds to cover a future financial challenge without falling deeply into debt.

Here’s how to start your rebuilding plan:

Set a goal

Before getting started on saving up money, it’s a good idea to establish a tangible goal. What’s your magic number? You can try to recover the value of the savings lost, or start smaller, with a more attainable goal. Bear in mind that experts recommend having funds to cover three to six months’ worth of living expenses set aside in an emergency fund or savings account.

Review your budget and trim your spending

A good place to start finding those extra dollars for savings is by carefully reviewing your spending for ways to cut back. Look for expenses that can make a difference in a monthly budget without dramatically affecting your quality of life. Think about subscriptions or services that are rarely used, a dining-out budget that can be scaled back and expensive recreational activities that can be swapped with freebies. There’s no need to live like you’re broke, but stripping your budget of some extras can give you the boost of cash you need each month to build up your savings again.

Find a side hustle

Another great way to land extra funds is through a side job. There are many ways to pad a wallet without a major investment of time. Some options include taking surveys on sites like Survey Junkie and Swagbucks and doing gig work for companies like Uber, DoorDash and Rover.

Sell your old treasures

If you’ve spent part of the COVID-19 lockdown giving your house a deep cleaning, you may have unearthed some forgotten treasures that can turn into easy moneymakers. You can sell old clothing on ThredUp, unwanted jewelry on Worthy.com, make good money off your unwanted furniture through Chairish, sell or trade unused sports equipment on Swap Me Sports and sell kids clothing and toys on Kid to Kid. Use the cash you earn from these sales to jumpstart your new nest egg.

Make a plan

Once you have a goal in place for building your savings, and you’ve maximized the possible monthly contributions toward savings each month, it’s time to create a plan. Map out a timeline of how long it’ll take to reach your goal when putting away as much as possible each month. Remember: the more aggressively you save now, the sooner you’ll reach your goal.

Start saving

It’s time to put the plan into action!

The best way to ensure regular savings happens each month is to make it automatic. You can set up an automatic monthly transfer from your Destinations CU Checking Account to your Destinations CU [Share/Savings] Account on a designated day of the month. You may want to have the transfer go through several days after you receive your monthly salary, or it might work out better to put a smaller amount of money into savings each week. Give us a call at 410-663-2500 ext 124 to discuss your options.

Put unexpected windfalls into savings

To speed up the process of rebuilding depleted savings, you may want to resolve to put unexpected windfalls into an emergency fund or savings account. This can include tax refunds, a work bonus and gift money. If another round of Coronavirus stimulus checks is approved, consider using these funds for your savings as well. Earmarking future windfalls for savings can shorten the amount of time spent cutting corners in a budget and taking on extra jobs to build up a savings account.

Rebuilding an emergency fund and savings account from the bottom up isn’t easy. It takes commitment, hard work and the ability to keep a long-term goal in mind; however, the security that comes from knowing you have a safety cushion to fall back on in case of a financial setback will make this goal worth the effort many times over.

If you need some guidance on managing your money, building savings and reducing debt, HOPE Inside might be a big help.  Destinations Credit Union has partnered with Operation HOPE to bring you the services of a financial well-being coach at no cost to you.  Coaching meetings can be held by telephone or virtually during this time.

Your Turn: Have you started working on rebuilding your savings? Tell us about it in the comments.

 

How To Travel Safely This Summer

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Summer is here, and many Americans are itching for a vacation. But is it possible to photo album and camera being held by a gloved handtravel safely right now? Is an airplane really a flying Petri dish to be avoided until the pandemic blows over? Can you take a road trip if it means making rest stops in three different states?

So many questions — but we’ve got answers! Here’s how to enjoy your getaway this summer without compromising on your health and safety.

Check your health

Before heading out to any destination, give yourself a mental COVID-19 screening. Have you been running a fever above 100.4? Have you recently experienced shortness of breath or deep coughing? Do you have reason to believe you’ve been exposed to coronavirus in the last week? If you answer yes to any of these questions, the CDC recommends you stay home.

Check local laws at your destination

Even as some states are seeing a decline in new COVID-19 infections, the virus continues to rage across the country and many states are currently peaking. To help curb the spread, some local governments have enacted strict quarantine laws for visitors entering their state from places that are experiencing a surge in new infections. There are also discrepancies among individual states regarding general coronavirus laws, such as those related to face coverings and public gatherings.

Check the local laws at your destination before setting out on your trip. Also recheck them as you travel since the situation is fluid and laws are constantly changing. It’s also a good idea to familiarize yourself with the rules at rest stops you’ll visit along the way. You can look up COVID-19 regulations around the country here.

Air travel

At first glance, an airplane can seem like a flying tube of germs, but that’s not entirely true.

“Many people think they get sick on an airplane, but the reality is that the air quality on an airplane is actually really good — high amounts of clean outdoor air and all recirculated air pass through a HEPA (High Efficiency Particulate Air) filter,” says Joe Allen, an assistant professor and director of the Healthy Buildings Program at Harvard T.H. Chan School of Public Health.

HEPA filters refresh the circulated air every two to three minutes, and can effectively block more than 99% of airborne microbes.

That travelers are more likely to pick up the virus while waiting in line at airport security, at the boarding gate or in front of the luggage carousel, Allen says.

Airports and airlines are taking steps to minimize the risks of contagion with frequent intensive cleaning and sanitizing of common areas. Planes are fogged with electrostatic disinfectant that sticks to surfaces such as seatbelts, Many airlines are now distributing disinfectant wipes to boarding passengers, and the Transportation Security Administration (TSA) has increased the size of hand sanitizer bottles permissible to bring aboard a plane from 3.4 ounces to 12.

Despite these extra measures, it’s best to continue following standard COVID-19 precautions. Face coverings should be worn at all times, as per CDC recommendations, and it’s a good idea to wipe down high-contact surfaces, like tray tables and armrests. As always, proper hand hygiene should be observed.

Hotel stays

Some states — but not all — have lifted restrictions on hotels and vacation rentals, thereby permitting them to welcome guests again; however, many travelers are understandably wary. To reassure them, several big-name hotel chains are rolling out new programs and procedures, such as Hilton Worldwide’s CleanStay   program which features frequent cleaning and contactless check-in. These extra precautions make a hotel stay safer.

If you’re still feeling unsure about spending a night in a hotel or a vacation rental, but your travel plans necessitate an overnight stay, come prepared. Pack a generous supply of cleaning wipes that have an EPA-approved disinfectant, and scrub all high-touch surfaces at the hotel room or rental. This includes all door knobs, faucets, remote controls, light switches, countertops and more.

Rest stops

Lots of vacationing Americans are choosing to travel by car this summer instead of taking to the skies, assuming this mode of transportation is safer than air travel. What many neglect to realize is that by stopping at rest stops in several states, a traveler may come in close contact with hundreds of other travelers while in a germ-infested area.

If you have plans to hit the road, travel safely. Pack lots of disinfectant wipes and an alcohol-based hand sanitizer. Mask up at all rest stops, and don’t forget to keep your distance from other travelers. Use toilet seat covers when available, and wipe down other high-touch areas, like sink faucets, before using. When purchasing takeout food, use contactless payment. Wash your hands vigorously when you’ve finished, and scrub them with sanitizer for an extra measure of protection.

Attractions

Once you’ve arrived at your vacation destination, continue to play it safe. The CDC recommends maintaining a 6-foot distance from other visitors while at an attraction, avoiding crowded parks, wearing a face covering at all times and washing hands with soap and water for at least 20 seconds after using the restroom, before eating and after blowing your nose, coughing or sneezing.

The open road is calling! Before you head out on your summer getaway, though, don’t forget to pack the face coverings, hand sanitizer and disinfectant wipes. Play it safe for a truly memorable summer.  And, don’t forget to take Destinations Credit Union along with you!  Our Mobile App let’s you check balances, transfer money and get the closest surcharge-free ATM location.  It even allows you to temporarily block your cards if you misplace your Destinations debit card or credit card.

Your Turn: What measures are you taking for a safe summer getaway? Tell us about it in the comments.

Sources:
https://www.cdc.gov/coronavirus/2019-ncov/travelers/travel-in-the-us.html
https://www.wsj.com/articles/all-your-coronavirus-travel-questions-answered-11582980999
https://www.cdc.gov/publichealthgateway/healthdirectories/healthdepartments.html
https://www.nationalgeographic.com/travel/2020/05/safety-tips-to-help-you-travel-again-during-covid-19-cvd/
https://www.cdc.gov/coronavirus/2019-ncov/daily-life-coping/visitors.html

How to Turn Your Back Yard into an Oasis

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Image of two Charis surrounded by purple flowers in a back yard.

Most of us have spent lots of time at home this spring, and it looks like summer might not be much different. With many attractions still closed and some states seeing a surge in COVID-19 cases, safe travel will be challenging. For many Americans, this means choosing to staycation at home instead of hitting the road this summer.

A stay-at-home summer doesn’t need to be boring. You can turn your own backyard into a summer oasis without breaking the budget. Here is how to cost effectively maximize your outdoor space. From entertaining in style to keeping the kids busy, we’ve got you covered!

Upgrade your outdoor furniture

Chances are, you’ll be spending lots of time out in the yard this summer, and whether that means sunning on the patio or sipping lemonade under the shade of a tree, you’ll feel more of that vacay vibe with the right furniture. It doesn’t have to be pricey; a little ingenuity will really make those dollars stretch.

Make your outdoor space seem bigger by creating different seating areas for different purposes. Think a cozy coffee nook for mornings, a lazy hammock for getting lost inside the pages of a summer thriller, a pair of lounge chairs for catching the afternoon sun and a patio table for entertaining guests. You can even go all out and designate a small area for nighttime fireside fun.

If you’ve already got a nice patio set, freshen it up by replacing the cushions and adding some summery throw pillows for a whole new look.

Don’t forget to take a look at your outdoor lighting as you spruce up your patio and yard. Brighten up your outdoor space with some sconce lights along the walls or string up some old holiday lights for a truly festive feel.

Add a splash of fun

It may be too late in the season to think of installing an in-ground pool, but you can still have your floating fun with an above-ground pool this summer. Above-ground pools can cost as little as a few hundred dollars or as much as a few thousand for a larger, upgraded model. Most take a week or less to install. And then it’s an endless splashing summer!

Make it natural 

Yes, you’re already outdoors, but that doesn’t mean you’re surrounded by greenery. Even city slickers can add the natural touch to small apartment porches with some potted plants, a container garden or a trellis with climbing flowers. Stick that greenery wherever it can go for an added layer of relaxation.

If you want to go all-out to get that resort-like feel, consider building your own waterfall this summer. It may not be on your bucket list, but it’s a super-fun project with rewarding results.

Fun for the kids

Don’t forget to create a fun space for your kids in your backyard oasis. The sky’s the limit when it comes to outdoor play; just have fun and let your creativity flow freely. Here are some ideas to get you started:

Put up a rock-climbing wall. If your kids are climbing the walls from being home for too long, try a DIY rock-climbing kit for endless fun that also builds strength and coordination.

Build a swing set. Swing sets provide hours of entertainment, but they can get pricey. Save money without compromising on the fun factor by choosing to build a swing set yourself instead of purchasing it pre-made. You’ll have to buy materials and maybe the tools, but you’ll still come out way ahead. Plus, you can make the construction a family project that will keep everyone involved for days.

Install a backyard splashpad. Your favorite spraygrounds might be closed this summer, but you can have your water fun at home with a DIY splashpad kit. Splash pads promise hours of fun for kids of all ages.

Create a natural playspace. According to a natural playground study by the University of Tennessee, children who play on natural playgrounds, or playscapes, tend to stay more engaged than those playing on brightly colored equipment. Building a natural playspace is easy — think a small pile of sand, a set of logs arranged as stepping stones and some tall grass or plants to act as hiding spaces.

Financing your oasis

If you’re short on the cash you need to turn your backyard into an oasis this summer, Destinations Credit Union can help with a Signature Personal loan. Our terms are always favorable and our payback plans affordable. Also you may want to consider a HELOC (Home Equity Line of Credit) Put your mortgage payments to work for you today with a home equity line of credit from Destinations Credit Union. With this open, anytime credit line, we’ll help you transition your home’s equity into financing for a wide range of other needs. Call, click or stop by to discuss your options with one of our Loan Officers today.

Your Turn: Have you upgraded your outdoor space? Tell us about it in the comments.

Sources:
globalnews.ca
blog.rismedia.com
statesman.com
installitdirect.com

Against All Odds: J.K. Rowling

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Photo of Author J.K. Rowling

She grew up in poverty and spent years struggling to get by as a single mom. She battled severe depression and her first book was soundly rejected by a dozen publishers.

And then she went on to become the wealthiest author of all time.

Welcome to the magical world of J.K. Rowling.

The early years

Joanne Rowling was born on July 31, 1965, in Yate, England, where she lived with her parents and sister, Dianne.

“As soon as I knew what writers were, I wanted to be one,” Rowling writes on her website. She wrote her first book at age 6 — and has been writing ever since.

Rowling’s childhood was far from idyllic. The family didn’t have much money and her mother’s 10-year battle with multiple sclerosis affected each of them in myriad ways.

The author studied French at Exeter University, where she claimed she did “no work whatsoever.”

After college, she worked as a researcher and secretary for human rights organization Amnesty International in London.

While riding a train from Manchester to London in 1990, the idea for the story of a young boy who doesn’t know he’s a wizard took root in Rowling’s mind. By the time the ride was over, Rowling had a basic outline for a seven-book series.

So goes the origin story of a legend.

Hard times

Rowling describes the day her mother died as the most traumatic event of her life. She was 25 years old at the time, and six months into writing the early drafts for the Harry Potter series.

After her mother’s passing, Rowling moved to northern Portugal, where she dated Jorge Arantes. She worked afternoons and evenings teaching English and devoted her mornings to writing Harry Potter and the Philosopher’s Stone.

In 1992, Rowling married Arantes and, in 1993, she gave birth to a daughter, Jessica Arantes. However, the couple separated four months after Jessica’s birth.

Following the split, Rowling relocated to Edinburgh, Scotland, to be nearer to her sister while experiencing the darkest time of her life. Desperately poor and relying on welfare to survive, the single mom battled severe depression that sometimes bordered on suicidal thoughts. She was jobless, penniless and she had a small girl depending on her for her every need.

“I was the biggest failure I knew,” Rowling said during a 2008 Harvard University commencement speech.

Throughout the five years following her mother’s death, Rowling continued creating the secret wizarding world of Harry Potter, further outlining the series while writing the first draft of the first book. She’d sit in cafes throughout the city, painstakingly writing her manuscript on small scraps of paper that she would later transfer to pages using a rickety typewriter. Finally, in 1995, the first book in the series was complete.

Harry Potter was ready for his grand debut. Not everyone was quite as ready, though.

Getting published

The muggles of the world had no idea that an entire society of spell-casting wizards inhabits the same planet as they do, but J.K. Rowling was ready to reveal all — if only someone would agree to publish her book!

Rowling submitted her manuscript to 12 different publishing houses. The publishers must have been under a confundus charm, as each one soundly rejected the manuscript, claiming it was far too long for a children’s book. Ironically, at 320 pages, it is the shortest book in the series, with the fifth and longest book measuring nearly three times its length.

Finally, Rowling commissioned the Christopher Little Literary Agents to find a publisher for the story of The Boy Who Lived. After several failed attempts, the series was accepted by Bloomsbury, a small publishing house in London. The publishers encouraged Rowling to use initials for a book geared toward young boys, and after adding a “K” for her paternal grandmother, Kathleen, Joanne (Jo to her friends) became J.K. Rowling.

On June 26, 1997, Harry Potter and the Philosopher’s Stone hit the bookstores — and it was an instant sensation. All 500 copies of the initial printing sold rapidly, and just three days after its release, American publishing house, Scholastic, paid $105,000 for the rights to print the book in the United States. Rowling celebrated by purchasing her own apartment.

On July 2, 1998, Bloomsbury published the second book in the series, with an initial print run in the U.K. of 10,000.

In October of the same year, Scholastic published the first book in the series with a slight name change, illustrations at the beginning of each chapter, and an initial print run of 50,000. To date, Harry Potter and the Sorcerer’s Stone has sold 120 million copies around the world.

Also in October 1998, Rowling signed a seven-figure deal with Warner Bros. to turn the books into movies. The chart-topping series ended in 2011, with total sales from the franchise grossing at $21 billion, making it the most profitable movie franchise of all time.

Rowling continued writing Harry Potter books with just one-year breaks between each release until her catapult to fame finally caught up with her after the release of her fourth book in July 2000. She needed a break.

“The pressure of it had become overwhelming,” she told The New Yorker in an interview. “I found it difficult to write, which had never happened to me before in my life.”

Rowling also explained that she hadn’t had time to process the level of her fame and wealth.

“I needed to stop and I needed to try to come to terms with what had happened to me,” she said.

During this break from writing, on Dec. 26, 2001, Rowling married anesthesiologist Neil Murray. The couple have two children.

In June 2003, she published Harry Potter and the Order of the Phoenix, the longest book in the series. The sixth book was released in July 2005, with a record-breaking 10.8 million copies sold in the U.S.

In 2004, Forbes reported that Rowling was the first person in the world to become a billionaire by writing books. She later dropped off the billionaire list after giving much of her fortune to charity.

Harry Potter casts his final spell

In 2007, Rowling finished the series with the fastest-selling book of all time: Harry Potter and the Deathly Hallows. The seven books have collectively sold more than 500 million copies around the world.

In 2010, Universal Studios opened The Wizarding World of Harry Potter, a theme park where guests can visit Hogsmeade, choose a magical wand and ride a roller coaster on a Hippogriff.

Rowling often speaks about how the hardships she endured in the early years of her life enabled her to create the wonderful world of Harry Potter.

“I couldn’t have written this book if I hadn’t had a few years where I’d been really as poor as it’s possible to go in the U.K. without being homeless,” Rowling said in 2012.

Elsewhere, Rowling said that she used her experience of depression to describe the despair and blackness the Dementors spread in Harry Potter’s world.

“It was entirely conscious,” she told the Times.  “And entirely from my own experience. Depression is the most unpleasant thing I have ever experienced.”

The author’s net worth stands at $92 million. The very best thing her wealth has given her, she writes, is the absence of worry. “I have not forgotten what it feels like to worry whether you’ll have enough money to pay the bills. Not to have to think about that anymore is the biggest luxury in the world.”

Rowling pays it forward with her remarkable philanthropy, giving special attention to charities that serve orphans.

The magic of Harry Potter lives on.

Do you have dreams but need help bringing them to fruition financially?
Destinations Credit Union can help with our HOPE Inside Financial Counseling – get your finances on track and get the help you need to realize your dreams.

Your Turn: What’s your favorite Harry Potter moment of all time? Best answer gets 10 points for Gryffindor!

 

Sources:
businessinsider.com
jkrowling.com
newyorker.com
insider.com
time.com
businessinsider.com
people.com

Watch Out for These Scams as the Country Moves Toward Reopening

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Woman in Mask Using Laptop.

As the coronavirus continues spreading across the country in waves and peaks, every state is making bold moves toward reopening under a strange new set of circumstances dubbed the “New Normal.” Face coverings are de rigueur. Floor markings have been slapped down exactly 6 feet apart near checkout counters in retail stores. Shoppers are weary, cautious and careful. And, as the country moves forward and adapts to the new realities, scammers aren’t far behind.

Watch out for these trending scams as the country reopens:

Account Takeovers

Even as retailers work toward reopening, shorter hours and percentage-capacity rules mean many consumers are still shopping remotely. Retailers are also busier than ever now as they comply with new rules and work to meet customers’ changing demands. This leads to an increase in online retail scams, like account takeovers, in which scammers hack a company’s database and break into a customer’s account. Using the customer’s remembered payment information, the scammer goes on to place large orders to their own address — all on the client’s dime.

Protect yourself:

Account takeovers are most commonly pulled off on dormant accounts. The scammer assumes these accountholders won’t notice this activity, but you can outsmart them by checking your retail accounts for sudden orders or deleting the remembered information from accounts you rarely use.

Business owners can spot these scams by looking out for sudden large orders from customers who haven’t purchased anything in months, or even years.

Job Scams

“Help Wanted” signs and ads are a welcome sight for the more than 40 million workers who have filed for unemployment since the pandemic hit American shores. Unfortunately, though, the flood of unemployed people looking for work has led to a rise in job scams. The FBI is warning against a surge in scams where cybercriminals pose as employers by spoofing websites and posting bogus job openings on online job boards. They may even go as far as conducting interviews with applicants. The scammers ask for personal information, and sometimes demand payment, before the “application” can be processed. Of course, there is no job waiting for the applicant, their information is now in danger of being abused and they’ll never see that money again.

In a variation of this scam, “employees” are given work to do remotely, and then paid with an inflated paycheck. They’re told they had been overpaid and instructed to cash the check and reimburse the employer for the surplus funds via money order or prepaid debit card. The check will appear to clear, but in a few days, it will bounce and the victim will never be able to reclaim the lost funds.

Protect yourself:

Beware of outrageous job claims that promise big money for little work; they’re likely bogus. As always, never share sensitive information online with an unverified source. Don’t accept a job that overpays and asks you to refund the extra money; it’s likely a scam. Finally, before agreeing to an interview, research an alleged employer and company on the BBB website.

The Contact Tracer Scam

Many states have hired armies of contact tracers to track the movements of individuals who may have been exposed to COVID-19. The FTC is warning of a new ruse in which scammers impersonate a contact tracer and reach out to people via phone call or text message. They’ll ask for the victim’s personal information, including their Social Security number, claiming they need this information for their work as a contact tracer. Of course, they’ll use this information to pull off identity theft or hack the victim’s accounts. The scammer will sometimes ask the victim to click on an embedded link, which will grant them access to the victim’s phone.

Protect yourself:

Contact tracers will always identify themselves and the department where they work. If a contact tracer reaches out to you, you can easily determine their authenticity by researching this information. The tracer will also have a basic understanding of COVID-19 and how it spreads. Most importantly, they have no need for your Social Security number nor will they ask you to share it.

As the country moves into a new period of healing and recovery, scammers are doing all they can to continue disrupting daily life. Stay aware and stay safe!

Your Turn: Have you been targeted by a reopening scam? Tell us about it in the comments.

Sources:
https://www.news5cleveland.com/news/continuing-coverage/coronavirus/scammers-aim-to-target-small-businesses-during-reopening-efforts

https://www.idtheftcenter.org/consumers-should-watch-out-for-covid-19-reopening-job-scams/

https://camdencountypros.org/paying-attention-to-potential-scams-as-new-jersey-moves-toward-reopening

https://www.consumer.ftc.gov/blog/2020/05/covid-19-contact-tracing-text-message-scams