financial literacy

Why & How to Plan Ahead for Health Care Expenses

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Health care is something that most Americans overlook when budgeting. Medical debt child with nursecan get out of control if you don’t have health insurance or you don’t plan ahead for unexpected health care expenses.

But how do you plan ahead for health care expenses?

Here are a few tips that can help you start the planning process:

  1. Research health insurance plans and medical costs. To plan ahead for your health care expenses, you will need to understand what type of health insurance plan you have and the medical costs that you may incur in the upcoming year.
    • Determine how much to save based on your deductible, co-payments/co-insurance and/or out-of-pocket maximums. You can contact your health insurance provider to find out the amount of your deductible.
    • Estimate how much to save based on any medical bills you received in the previous year.
    • Calculate how much to save based on any prescriptions you had to pay for in the previous year.
    • Attend workshops and seminars presented by your employer or health insurance organization to get a better understanding of how to get the most out of your health insurance plan (and spend the least amount of money out of your own pocket).

Everyone’s situation will be different. Use what you think will be best for you to determine how to save money on your health care costs.

  1. Start the planning and budgeting process. A best practice is to use a budgeting tool to outline all of your monthly expenses, including any estimated health care costs. A visual map of your financial plan will give you something to follow to ensure you are meeting your savings targets every month.
  2. Consider Opening a Health Savings Account (HSA) or Flexible Spending Account (FSA). These enable you to save for health care expenses in advance (on a pre-tax basis). Not only are the funds untaxed, they can also be used to cover the cost of co-payments, co-insurance, out-of-pocket maximums, and prescriptions.

The Bottom Line: You’ll Save Money in the Long Run

Ultimately, planning ahead for health care expenses is like planning ahead for retirement. With retirement, you plan ahead to cover all of your bills in the future. The same concept applies for health care expenses. The money you save will enable you to cover the costs of any medical expenses you incur in the future.

Courtesy of Accel Members Financial Counseling, Destinations Credit Union’s partner to provide its members free unlimited financial counseling.

13 Life Hacks to Reduce or Eliminate Medical Debt

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Almost every American faces medical debt at some point in their life. So you’re not aloneiStock_000009697836_Large if you’re scared of the prospect of medical debt damaging your personal credit and causing you to go into a financial crisis when you least expect it.

Fear not! There are ways to avoid having your financial dreams derailed by a medical emergency, an unexpected procedure, or unnecessary medical expenses. Here are some life hacks we came up with that can help you reduce or eliminate medical debt:

  1. Stick to Doctors Within Your Network – If your plan requires that you visit doctors within your network, stick to those doctors so you don’t have to pay out-of-network fees.
  2. Pay Your Medical Bills In Full –Chances are you will receive a discount. Many hospitals offer a 10% discount when you agree to pay your bill in full.
  3. Don’t Switch Plans to Visit a Doctor Out-of-Network Once – You can save money if you only have to visit an out-of-network doctor once a year. Changing your plan for the sake of one service can result in higher health insurance plan premiums over the long term.
  4. Opt For “Minimum Essential Coverage” Instead of Expensive Health Insurance Plans – If you’re cash strapped and healthy, a minimum essential coverage may be your best option. These plan usually only cover preventative care and other basic medical services—not hospitalizations and outpatient surgery.
  5. Utilize Charity Care Programs – Your hospital may offer discounted services to low-income people. It’s a little known secret that you can apply for charity care programs that may reduce or eliminate your entire bill if you qualify. To get started, just call the hospital that has billed you and ask them if you can apply for their “charity care program”.
  6. Find Out What’s Covered by Your Health Insurance Provider – Before you schedule a medical procedure, find out what’s covered and at what rate. If you determine the cost will be high, talk to the referring doctor about lower cost alternatives.
  7. Request a Payment Plan – If you owe a medical bill that you are not able to pay in full, you can usually get on a payment plan with lower minimum payments. As long as you continue to pay the bill monthly, the debt should not show up on your credit report. All you have to do is call to make arrangements before the debt becomes delinquent.
  8. Use Urgent Care Centers – Find out if urgent care centers are included in your health insurance plan network. They often charge a flat fee for labs, therefore you won’t have unexpected bills later on. They can also help with a variety of problems that don’t require hospitalization, which will also save you money in the long run.
  9. Ask for Prescription Samples or Coupons – Some prescriptions are free at pharmacies such as Walmart and Meijer. When filling your prescription, ask the pharmacist if any samples or coupons are available.
  10. Combine Doctor Visits to Save Money – When visiting your doctor, make sure they address multiple issues at once so you don’t have to go back for repeat visits.
  11. Get Refills on Prescriptions from a Family Doctor Instead of a Specialist – For example, if you go to a dermatologist to get a prescription for acne, instead of going back to the dermatologist for a refill on the prescription, it may be cheaper to go to your family doctor or a general practitioner to get a refill.
  12. Research the Costs of Certain Procedures/Appointments – Research the costs of procedures and appointments ahead of time so you can choose the lowest cost provider.
  13. Apply for a Grant from the Healthwell Foundation – You can apply to receive financial assistance with covering your medical bills. If approved, they may cover $6,000 per year in medical insurance premiums (for certain diseases). Visit https://www.healthwellfoundation.org/ for more information.

Courtesy of Accel Financial Counseling, Destinations Credit Union‘s financial counseling partner.

Newlyweds: Don’t Let Financial Stress Take The Cake

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There are so many things to think about when you’re just married, or about to be, and no Wedding ceremonyone would rate finances as the most exciting of them. In fact, studies show that money (not relatives) is the number one reason couples argue. Those financial arguments (again, not relatives) are one of the top predictors of divorce.

So, how can you avoid becoming a statistic? Here are some tips.

Talk To Each Other

A poll by the National Foundation for Credit Counseling found that 68% of engaged couples held a negative attitude about discussing money. 45% considered it “necessary but awkward,” while 7% said it was “likely to lead to a fight.” Five percent said they thought it would cause them to call off the wedding.

The result? Couples just don’t talk about finances. A Fidelity survey said more than one-third don’t even know their partner’s salary. The irony is that 72% of those same couples said they communicate “very well” about financial matters.

It’s not surprising, when you think about it. What’s romantic or sexy about debt, budgets, taxes, wills, and the like? But, while there isn’t a plan to keep every newly married couple happy, experts agree: Don’t wait to talk about money.

Taxes, for example, are boring (and scary), but they may be important right now. If you and your spouse are employed, the “marriage penalty” may force you to pay more taxes when married than while you were single. So, think about marrying in January rather than December. But if one spouse earns most of the money, you’ll enjoy a “marriage bonus” and pay less than two singles; a December wedding might be wise in that scenario.

Speaking about money now is definitely important, but so is how. A 2004 study by SmartMoney found that more than 70% of couples talk about money at least weekly. So what’s the problem? “Most of us don’t know how to talk about money,” says Mary Claire Allvine, a certified financial planner. “People tend to be emotional and reactive, not strategic.”

Whether you talk about money weekly, monthly or on some other schedule, what matters is that you agree on a system and stay open to changing it.

Get Started

Taking the first step can be difficult, so start off easy, with questions like “What’s your first money memory?” or “How did you spend your allowance?” Then move on to some of these:

  • “Are you a spender or a saver?” – If one of you is a saver and the other a spender, create a budget that considers both styles. Studies show that men and women spend differently. Women often take care of daily expenses (groceries, utilities, clothes) while men make larger purchases, such as TVs, cars or computers. The amounts might be the same, but the perceptions are very different. About 36% of partners don’t talk to each other about big purchases, and that’s a recipe for disaster.
  • “Are you in debt?” – A TD Ameritrade survey found that 38% of couples were “only somewhat” or “not at all” aware   of their partner’s debts. When you get married, your spouse’s debt doesn’t automatically becomes yours, but what he or she owes will affect both your choices. For instance, heavy credit card debt could make it more difficult to buy a home. Make reducing debt a priority.
  • “What are your financial goals?” or “Where do you want to be five or twenty years from now?” – People who identify specific goals make faster progress toward savings and investing targets. But first, you need to agree on what those targets are: buying a home, starting a family, being debt-free? List your individual goals, then share them with each other and make a joint plan.

Know what’s important to each of you. What do you value more, things you can keep or experiences to remember?       Maybe one of you wants to buy a house while the other thinks saving for retirement is essential. Get these things out in the open early.

Trust Each Other

A recent Money survey revealed that couples who trust their partner with finances feel more secure, argue less, and have more fulfilling sex lives. That level of trust, though, isn’t common among newlyweds. “We’re intimate with our partners in so many ways before marriage, and yet money remains off the table,” says Paula Levy, a marriage and family therapist.

Be honest. If you made a purchase you shouldn’t have, own up to it. Some 40% of men and women confess they’ve lied to their spouse about the price of something they bought, and lying about money can have huge repercussions.
Support each other. Retreating doesn’t help, and neither does finger-pointing. Work together to come up with a game plan.

You’re Still Individuals

Celebrate the differences. If your partner is a bargain-hunter, put him in charge of the spending while you invest the savings. And decide on a monthly amount each of you can spend, no questions asked. The average amount couples say this should be, according to Money, is $150.

There are pros and cons to opening a joint bank account. SmartMoney found that 64% of couples put all of their money in joint accounts, while 14% kept everything in separate accounts. For many newlyweds, the ideal choice may be both: yours, mine, and our accounts. Once you’ve determined shared living expenses, both of you can contribute your portion of those costs to the joint account based on your share of household income.

Ask For Help

If you and your spouse find money conversations tough, you might want to bring in a financial planner or other professional. Your credit union can help – that’s why they’re there. Take steps now to ensure that money won’t put rocks on your path to wedded bliss.

SOURCES:
http://time.com/money/4776640/money-tips-married-couples/
http://www.moneycrashers.com/money-management-newly-married-couples/
http://www.oprah.com/omagazine/Personal-Finance-for-Couples
https://www.moneymanagement.org/Budgeting-Tools/Credit-Articles/Love-and-Money/Ten-questions-to-consider-before-you-commit.aspx
http://www.huffingtonpost.com/2013/06/05/financial-advice_n_3391292.html
https://www.thespruce.com/financial-advice-for-married-couples-2302874
http://www.wife.org/love-money-25-financial-tips-for-couples.htm 

7 New Year’s Resolutions For A Richer 2017

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The New Year is a great time of renewal. That makes it a good time to make bold, decisive changes in your life. Leave behind the baggage that was 2016 and start fresh with a blank slate in 2017. If you’re looking for some resolutions to improve your personal finances, we’re pleased to offer seven ways to make 2017 the year of the dollar!

1.) Track your spending

If you’re looking to take your first steps toward financial literacy, figuring out where your money goes should be at the top of your list. If you don’t know where your money goes, it’s going to be tough to follow through with any other money plans. You may have a general sense of how much you spend, but after a month where you’ve recorded every dollar, you’ll have a much better picture. Using apps like Mint or Personal Capital can automate the process. You might even find that keeping track of what you do with your money encourages you to spend a little more judiciously.

2.) Make a budget

About 70% of Americans live financially spontaneous lives. They don’t make a plan for spending or saving. When asked why they chose not to do so, the most common response was that the family spent all the money anyway. This is a circular problem. If you don’t have a budget that includes setting aside money for long-term expenses and savings, you’ll end up spending all your money on unplanned things and events. The best way to stop the cycle is to sit down and make a budget that modifies your spending to be more in line with your priorities.

3.) Get out of debt

Easier said than done, right? However, there’s no bigger stumbling block to financial security and wealth building than debt. It’s hard to save for long-term goals when so much of your monthly income gets eaten up by interest and fees. There are a variety of methods you can use to help accelerate your payoffs. For instance, you can add an extra $50 or $100 to your credit card payments. Or, you can focus all your payment resources on the highest interest debt until it’s paid off and then move it all to the next highest for snowballing your way to freedom from debt.

4.) Start an emergency fund

The best way to avoid going into debt is to have some money on hand to handle the occasional, yet inevitable, emergency. Most Americans, though, can’t come up with $500 in such instances. Set a specific goal, like adding $10 per month to a savings account. At the end of the year, you’ll have more than $100 available in case something goes wrong.

5.) Start a retirement account

You can’t save for what you don’t think about. When retirement is years or decades away, it’s difficult to incorporate thinking about it into your daily routine. If you have a retirement account open, you’ll get monthly statements, which serve as reminders. The challenge, though, is taking that first step. Don’t let perfect be the enemy of good. While there are important differences between Roth and Traditional accounts, either one is better than no retirement savings at all. If your job offers a 401(k) matching program, sign up to get at least the full matching funds amount – it’s free money. Do a little bit of research, then open the account that seems like the best idea.

6.) Automate your savings

Saving money takes willpower. Because it’s hard to practice self-denial on a constant basis, that extra $5 you’ve earmarked for savings can very easily turn into a mid-morning coffee. Fighting that impulse is a constant struggle. That’s why it’s easiest to avoid the decision altogether. Change your direct deposit to put some of your paycheck directly into a savings account, where you won’t even think of spending it impulsively.

7.) Get educated

Knowledge is power, and that’s especially true in the world of personal finance. What you know about your money goes a long way toward determining how much of it you get to keep. There’s a lot to learn, but you’ve got a wealth of information at your fingertips. Resolve to read one personal finance article a week (subscribing to this Blog can be a great start). Not only will this give you good ideas for improving your personal financial situation; you’ll also spend more time thinking about your money. That will lead to positive results down the line!

Happy New Year from all of us at Destinations Credit Union. We hope you have a safe, happy, and prosperous 2017!

Your Turn: What resolutions are you making this year? Will 2017 be the year you join a book club, quit smoking or spend more time with your family? Let us know in the comments!.

SOURCES:
https://wallethub.com/blog/financial-new-years-resolutions/9202/
http://www.reviewjournal.com/business/money/13-financial-new-years-resolutions-you-should-make
http://www.practicalmoneyskills.com/personalfinance/savingspending/budgeting/newYearsRes.php
http://www.theblaze.com/stories/2013/07/16/so-what-percentage-of-americans-actually-keep-a-budget-gallup-results-may-surprise-you/


ATM Fraud On The Rise: Staying Safe While Getting Cash

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Scammers seem like they’re in every part of the economy. If you make a purchase online, scammers are trying to get your credit or debit card number. If you check your email, scammers are trying to get you to download spyware. You might think you’re safe conducting all your business in cash, but scammers are waiting in one location you can’t get around: the ATM.
ATM fraud has long been a concern, but new advances in technology means consumers need to be more aware. Reports of ATM fraud saw a 5-fold increase between 2015 and 2016. In addition, industry experts report that nearly $2 billion is lost each year due to ATM skimming.
Through a variety of tactics, scammers are increasingly going after ATM-using consumers. Their targets are usually PINs, card numbers and account details. Watch out if you see any of the following at your ATM.
1.) ATMs in weird locations
The convenience of cash comes in handy in many situations. If you’re out at a bar, being able to pay for a round in cash is quick and easy. At a restaurant, leaving a tip in cash can make a server’s night much easier. Exchanging money between friends is a pain with credit or debit cards, but a breeze with cash. It can be tempting to use whatever ATM is handy when the need arises.
That temptation comes with some risks, though. ATMs in financial institutions are regularly monitored and maintained, not to mention covered by security cameras. A cash machine in a dimly lit corner of a bar, on the other hand, may not get that same kind of attention. Most of these machines are privately owned and the operators assume very little liability for their safety.
Whenever possible, use ATMs in secure locations, like financial institutions. They’re safer, better maintained and more reliable. If you must, choose ATMs in highly visible and public areas to minimize your chances of encountering a tampered machine. Only use machines inside private businesses as a last resort.
2.) Recent work
Two very common modifications are used in many ATM scam efforts. The first is a duplicate keypad on top of the existing one. This keypad relays PIN information to a third party, enabling fraud at a later time. The second is a phony card reader. This reader processes your card information, then sends it somewhere other than the machine you’re using. These scams have become both more common and harder to detect as 3D printing technology has improved and become more accessible. Molded plastic devices that fit like the original parts can be manufactured and purchased over the internet for a few hundred dollars.
There are a few telltale signs that you can use to tell the difference. First, keypads tend to wear over time. If a very old machine has bright, shiny keys, that’s a sign that something’s been modified. The same is true of card readers. Over time, from handling and use, card readers will develop scuffs and scratches. New-looking card readers should also be a red flag. Second, even the best molded plastic device will fit imperfectly. Scammers have to install devices in a hurry to avoid detection, so they may resort to quick fixes like electrical tape or plastic glue. Both of these will leave small signs of modification.
It’s better to be safe than sorry. If you have any suspicion that an ATM has been modified, don’t use it and report your suspicion to the machine owner if possible. Exposing yourself to fraud is a lot worse than the inconvenience of finding another machine.
3.) Nearby strangers
Rather than use a lot of high-tech machinery, some scammers rely on their own senses to rip you off. Getting in line behind you, the scammer will attempt to watch you enter your PIN. If successful, either the scammer or an accomplice will mark you for pickpocketing and then use your ATM card to clean out your account.
Even more insidious, some scammers use a distraction accomplice. Such a person might drop a bag right behind you just after you enter your PIN. They might also engage you in conversation, either offering help or asking for it. While you’re distracted, the scammer grabs your card and replaces it with a phony, or just takes the cash you’ve withdrawn and runs.
To protect yourself from these scammers, always cover your hand when entering your PIN. Get as close as possible to the machine to obstruct potential viewing of your transaction. Keep an eye out for anyone sitting by the machine on a laptop or tablet, as they may be monitoring a camera that’s designed to capture your PIN.
Most importantly, stay focused at the ATM. Ignore anyone who approaches you until you’ve finished your transaction and make sure you keep possession of all your belongings. They may think you’re rude, but that’s better than being robbed.
If you think you’ve been the victim of ATM fraud, it’s important you report it immediately. If you report the scam within two days, your liability is capped at $50. Waiting to report the scam could mean you’re responsible for all the bills the criminal racks up, so keep a close eye on your account and report any suspicious activity immediately.
YOUR TURN: How do you keep yourself safe at the ATM? What tips would you share about protecting your card and information?
SOURCES:

http://www.telegraph.co.uk/news/2016/07/24/a-bank-atm-scam-is-sweeping-the-nation–heres-how-to-avoid-it/
http://www.bankrate.com/finance/savings/4-tips-to-protect-you-from-atm-thieves-2.aspx

http://money.usnews.com/money/personal-finance/articles/2016-05-03/warning-atm-fraud-is-on-the-rise


Ransomware: The Modern Equivalent Of Being Tied To Train Tracks

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When we think of ransom, we typically think of a black-and-white movie with a kidnapper leaving notes made from a variety of newspaper cuttings. Today, ransom is much less melodramatic, much more common and targets something you might not expect: your computer files. 

In late 2013, the ransomware threat was added to the list of things that can kill your computer alongside bugs and crashes. Hackers made a new bug that’s capable of taking over a computer, encrypting all its files and displaying a brief message demanding money to decrypt them. Sometimes, affected companies or individuals would pay up, the hacker would decrypt the computer as promised and everyone would be on their merry way. Victims would sometimes refuse to pay the fees in the given time and would then lose their valuable files forever. And sometimes, victims would fork over the cash, only to have the hackers disappear with the files still locked and therefore as lost as before the victims paid up.
One study estimates that in its first 100 days as a scheme, ransomware infected 250,000 computers. It earned the hackers a collected $6 million in bitcoins. If that trend continued, we can expect that they’ve hacked at least 24 million computers in the past two years. including one major hospital that reportedly forked over $17,000 to get its files back.
The original operator of ransomware, Cryptolocker, was shut down in May of 2014. Still, many ransomware copies arose shortly after and continues to wreak havoc. The program continues to evolve, now locking computers and displaying menacing countdowns to create a heightened sense of urgency to pay up.

The question now, of course, is what you should do to protect yourself. For starters, if the only computer you have to worry about is a private computer, ransomware is a less significant risk. Ransomware scammers tend to target computers of companies that have the capability to hand over large sums of money. If your computer handles the larger functions of a company, there are still some steps you can take to protect yourself.

1.) Don’t trust online solutions

For starters, there are many software programs that promise to completely rid your computer of ransomware, but those are best left on the virtual shelf. Ironically, some of those alleged file-saving downloads are actually ransomware in disguise. Your best bet is to backup your files however you can – onto an external hard drive, onto a separate computer or even on paper. Anything you do will ensure that, when the hackers come, you’ll already have those encrypted files elsewhere. It’s advisable to check at least once a month to ensure everything you need is safely backed up.

2.) Hold onto your money

While it might seem like the only option that gives you a chance to get your files back, the FBI has issued a statement asking people not to pay such ransoms. If hackers are paid, they have more incentive to continue, and payment really doesn’t influence whether they decrypt your files or not. “The FBI does not condone payment of ransom, as payment of extortion monies may encourage continued criminal activity, lead to other victimizations, or be used to facilitate serious crimes,” as FBI Special Agent Christopher Stangl elaborates in an interview. If you’re desperate for your files, paying may seem like the only option, but consider the difference that could be made if no one paid them anymore. Crime syndicates would be stopped without any work from the FBI.

3.) Call the cops, but don’t hold your breath

Many are currently asking whether anything significant has been done by the FBI to this point. This includes Sen. Ron Wyden, who wrote to James Comey, the director of the FBI, to ask how the agency intended to clean up the ransomware problem. Comey responded that they were making progress, but pointed out that making arrests wasn’t easy as “most of the top cybercriminal actors are located outside of the United States.” Still, he went on to assure Wyden that, “The FBI is committed to following the money in investigating all crimes with a financial component; ransomware is no exception.”

4.) Back up and stay safe

While the FBI has its best men on the task of catching these cyber culprits, it’s your responsibility to be as safe as possible until they do. Back your files up. Don’t click on any sketchy-looking links. Buy security that a trusted provider assures you is safe. Ransom is no longer a thing of black-and-white movies; but in the digital age, it’s still our job to protect ourselves.
SOURCES:
Photo Source:  From Barney Oldfield‘s “Race For A Life” 1913 Silent Movie.
http://www.bankinfosecurity.com/blogs/please-dont-pay-ransoms-fbi-urges-p-2120?rf=2016-05-05-eb&mkt_tok=eyJpIjoiTnpnMVlUTmxPRFpoWVRRMSIsInQiOiJub1IxSlpyaUtcLzZEMHNFdlA1R25MYzdHVUdMakZGckdqc1BYY0VFb25BZnZcLzdXVnJ6SE9hUStnZ0xpamluNHd5RU5PYkJhdDFaT1dGdzYzZFwvODRVZzFHT0dxeWxFM00xXC9HMksxcU9nK1E9In0%3D
http://www.usatoday.com/story/news/nation/2014/05/14/ransom-ware-computer-dark-web-criminal/8843633/

http://www.pcworld.com/article/2901672/how-to-prevent-ransomware-what-one-company-learned-the-hard-way.html

Your Down Payment On A House

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Q: I’m hoping to buy a house in the next few months. How much of a down payment should I have saved up?
A: When you think about your down payment, balance is key. If you think you might sell the house within just a few years of ownership, having a large down payment exposes you to greater risk if real estate prices fall. However, a larger down payment can also mean lower monthly payments.
The value of $1,000 is pretty hard to quantify, especially in a real estate market that might have $30,000 homes and $300,000 homes. Instead of thinking about the amount of money, think about a percentage of the value of the house. When making these decisions, here are three questions to ask yourself.
Can I put 20% down?
A down payment of 20% is something of a magic number. With 20% down, borrowers are no longer responsible for carrying Private Mortgage Insurance (PMI). PMI is a protection most lenders require to cover their investment in you should you not repay your loan. The premiums for this insurance are paid by you, either as a lump sum at closing or included with the mortgage payment, and thus make your monthly payment higher. PMI usually costs between 0.5% and 1.0% of the value of the loan, though prices vary based upon several factors. Using this model, on a $100,000 loan, expect to pay around $83 more per month.
20% is also a magic number for interest rates. Lenders see a 20% down payment as a sign of a responsible borrower. Meeting that down payment amount means the borrower typically has a lifestyle of spending responsibly and saving money, both of which are signs of a solid credit risk. Regardless of your credit score, a 20% down payment can help save on the costs of the loan.
Can I get help to get there?
There are a wide variety of home buyer assistance programs designed to help people reach that 20% threshold. These come in two forms: grants and delayed repayment loans. They’re offered by housing departments at all levels of government and frequently go unused because home buyers don’t think they qualify.
Grants are no-strings-attached checks that you have to use for a specific purpose, in this case, the down payment on a home. Many are limited by income level or region of purchase, but they are definitely worth exploring. Even more options are open to first-time home buyers, former or current members of the armed forces and people in public service-oriented professions.
Delayed repayment loans are similar. These are second mortgages held by an organization for a portion of the total cost of the house. They do not begin accruing interest until after you’ve paid off your primary mortgage, and some of them are forgiven after you’ve owned the home for a certain amount of time. These are available from housing authorities and private organizations all over the country.
One important note: While you can get a lot of help, you cannot use another loan, even one from your parents or relatives, as part of your down payment. Doing so is a federal crime and can get you in serious trouble! In the best case, lenders will be suspicious of large deposits you can’t explain, and may even refuse to issue the mortgage loan.
If you can’t get to a 20% down payment, there are several options. You could make the smaller down payment, understanding that you’ll have to pay higher interest rates and PMI. You could also look at houses in lower price ranges. You might also decide to postpone home ownership and focus on saving so you can get there the next time around.
Should I go over 20%?
Making a very large down payment is an investment. Think of your mortgage like a savings account. You make an initial “deposit” when you make a down payment. A portion of your payment goes into your account each month while the rest goes to cover interest, which is the price you pay for living in your savings account. The return on your investment in the large initial down payment is the lower total interest you’ll have to pay.
When deciding if you want to put more than 20% down, think of your mortgage rate like the rate of return. If you can put another $1,000 down, that’s $1,000 less you’ll need to borrow. If your interest rate is 4%, then the return on that investment is $40 in interest you don’t have to pay. On the other hand, you don’t have that $1,000 to invest somewhere else now. If your retirement account earns 5%, then that same $1,000 will earn $50 if invested there. Making the larger down payment will end up “costing” you $10 in the long run.
As with any other investment decision, weigh the pros and cons. It may have a comparatively low rate of return, but the risk is negligible. Unless the value of your house drops dramatically, you won’t lose your down payment. It can be a smart move to put down as much as you can, but make sure to leave your retirement fund and emergency fund intact.
SOURCES: 
http://www.mtgprofessor.com/A%20-%20Down%20Payment/what_is_the_yield_on_a_larger_down_payment.htm
http://www.mtgprofessor.com/A%20-%20Down%20Payment/how_much_should_i_put_down.htm 
http://www.consumerfinance.gov/askcfpb/122/what-is-private-mortgage-insurance.html
http://www.investopedia.com/articles/pf/07/avoid_pmi.asp 
http://www.bankrate.com/finance/mortgages/down-payment-assistance-still-available.aspx
http://homeguides.sfgate.com/can-personal-bank-loan-out-down-payment-home-97705.html 
https://www.mortgagehippo.com/blog/down-payment-assistance-programs/

How To Keep Your Guard Up Against The Newest Scams

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It seems like there’s a new data leak or identity theft trick to be worried about every week. If you’re not informed, you risk becoming a victim. Sitting back and waiting for news about scams to come to you may not be enough. In an ever-changing security climate, you need to stay on top of new threats in personal information security. 

Why the landscape changes so fast 

The bad news is that humans have become the weak link in the information chain. Breaking modern encryption algorithms takes high-powered supercomputers months, if not years. Information you intended to send online or over the phone being hijacked by nefarious people is a slim chance. The biggest danger is sending information to people you don’t intend to be the recipients.
That’s why scams crop up so quickly. Humans can be tricked in any number of ways. Scammers can appeal to fear, greed or sentimentality in different forms to trick information out of you. They can also rely on inattention to detail or carelessness. This is because humans have a number of built-in vulnerabilities.
Unlike a computer, you can’t just download the latest anti-virus software to your brain. You can, however, do the next best thing: stay current on evolving cybercrime situations. 
Websites to visit regularly 
The FTC regularly updates its website with phone, email and web-based scams. Its website,  https://www.consumer.ftc.gov/scam-alerts, features several articles a week. As one of the strongest consumer watchdog agencies, it investigates illegal or fraudulent business communications with zeal.  It publishes the results of these investigations in hopes that fewer people will be victims in the future.

You can also pitch in and be a good cyber citizen by reporting scams you see to the FTC. You can report it online using the FTC’s form at this website: https://www.ftccomplaintassistant.govor call their toll-free number at 1-877-FTC-HELP.   1-877-FTC-HELP It’s one way you can make sure scammers are stopped before they really get started. 

The Better Business Bureau (BBB) also maintains a list of scams from criminals posing as businesses here: http://www.bbb.org/council/news-events/lists/bbb-scam-alerts/.  The BBB is a helpful place to look if you’ve received an offer that seems too good to be true. For identity-theft specific scams, the Identity Theft Resource Center maintains a list of schemes to steal personal information. Their website is located at http://www.idtheftcenter.org/ID-Theft-Blog/Scams-Alerts/. 

Games to play 
Keeping up with the latest threats isn’t all work. There are also fun, interactive games you can play! The FTC’s weight loss challenge game tests your knowledge of common weight loss scams. It can be a fun way to start talking with kids about the dangers of online ads. You’ll find it here: https://www.consumer.ftc.gov/media/game-0026-weight-loss-challenge.
If you’re feeling advanced, you can check out Admongo at www.admongo.gov. This creative, sci-fi themed platform introduces the hidden dangers of advertisements. It can also make a great stepping stone into a conversation with kids about caution around advertisements. 
News to follow 
You’re not alone in the effort to protect yourself against fraud. The National Consumer League is a not-for-profit organization with over 100 years of history helping to protect consumers from scammers.It maintains a list of scams and monitors old ones. It also interacts with law enforcement where possible to try to bring scamming groups down.
One of the services the National Consumer League provides is an email list. It sends out alerts whenever a new threat to consumer well-being emerges. In addition to covering scams, it also monitors product recalls, food safety conditions and truth in advertising concerns. It’s a great resource in helping you make smart consumer choices in a market crowded with information. To join the mailing list, just visit their website: www.nclnet.org 
Remember, the computer age brought us wonderful improvements in our quality of life. We can seek entertainment, educate ourselves, and stay in touch with friends and family using a device that fits in your hand. With that greater connectivity comes the need for constant and careful scrutiny of the information that comes across our screens. In this struggle, too, knowing is half the battle.

SOURCES:
http://www.nclnet.org/
https://www.consumer.ftc.gov/media/game-0026-weight-loss-challenge

Brought to you by Destinations Credit Union

How To Get Your Spring Break On

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Spring break isn’t just for party-hearty college students anymore. These days, families are also taking a break from winter and jetting off to sun-drenched climates to frolic on warm beaches. 

Spring break for college students spans the first few weeks of March, while families are more inclined to take their spring vacation to coincide with the long Easter weekend, which runs from April 3-5 this year, orPassover, which is April 22-30 this year. The fact that college and public school holidays don’t overlap should ensure that PG-rated co-eds don’t intrude on a G-rated family vacation. 

Although toasting spring’s arrival goes back to Greek and Roman celebrations, its modern incarnation is blamed on a Colgate University swimming coach bringing his team to Fort Lauderdale, Florida for training back in 1934. 

Sensing a marketing opportunity, Fort Lauderdale organized an annual swim meet, and the rest is history. Buoyed by the 1961 movie “Where the Boys Are,” starring George Hamilton; and the 1983 “Spring Break” with Tom Cruise and Shelley Long, the annual ritual has exploded. The 1986 arrival of the annual “MTV Spring Break” hasn’t hurt either. 

South Florida is still the center of the college spring break universe. So, if you can find a cheap flight and some friends to share in the cost of a hotel room, grab your bathing suit and beach towel and you’re in. Beaches in Florida cities such as Fort Lauderdale and Daytona Beach quickly become oceans of tanned bodies once spring break hits, with crowds as large as 400,000 people. 

While large crowds are considered a plus for college spring break celebrants, they can lead to frustration and annoyance if you’re a family seeking relaxation while having a few young kids in tow. 

Orlando, home of Disney World and other resorts, is a surefire hit with both kids and budget-conscious parents. But spring break is also the second-busiest time of year, behind Christmas and New Year’s. Granted, you cansurvive long lines by arriving early and packing your own snacks. But if you go to Orlando for spring break, be prepared for company. 

One popular strategy for guaranteeing family fun without blowing the budget is vacationing in an all-inclusive resort. Familyvacationcritic.comhas a list of the top 50 all-inclusive resorts for families in the Dominican Republic, Mexico, the Cayman Islands and other exotic Caribbean locales. Rates during peak times start at about $300 per person for a five-day stay. Resorts typically feature pools, beaches, fun-filled activities, and meals-all in a safe family-friendly environment. 

Cruises are another popular option, offering activities and services for the whole family, including movies, swimming, waterslides, varied dining options and more. 

But spring break doesn’t have to be all about the beach, especially for families. Visiting a budget-friendly city with inexpensive airline flights can be both entertaining and an educational option for the entire family. 

Los Angeles was the Fiscal Times’ top family spring break destination due to the number of attractions and places to visit. In addition, airfare prices to the city generally don’t experience a spring break surge due to the high volume of flights. Five new hotels, a strong U.S. dollar and a nearby adventure park helped make Puerto Vallarta, Mexico, the second most popular spring break family destination. 

Las Vegas, Quebec City, Phoenix and New York are other great destination cities for family vacations. Norway also landed on the list due to competition among air carriers that has driven airfares below $200, and Spain was suggested because airfares to Barcelona are on par with flights to South Florida this time of year. 

For college students, eight of Kayak’s top 10 spring break destinations for 2015 are within the continental United States and four of those are in Florida. 

Home to the annual SXSW Festival, down-home rib joints, great Mexican food and walkable avenues lined with jumping live-music venues, Austin, Texas topped the list. It was followed by Fort Lauderdale, with its beaches, beachside bars, warm weather and manatees. 

Los Angeles was No. 3 on the list, with median airfare at just $352 in late April. Southern California is home to magnificent beaches such as Malibu, Santa Monica and Venice. In addition, plenty of culture can be found in downtown Los Angeles. But be advised that spring is the wet season, and a powerful El Nino is in the forecast this year, so your chances of rain falling on your spring break parade are fairly high. 

Miami, or SoBe for South Beach, has a lot going for it as a spring break destination. Its chic Art Deco hotels, fun atmosphere, packed beaches and club culture helped it reach No. 4 on Kayak’s 2015 list. But timing is everything. Median airfares reach a high of nearly $600 in early April, but fall to below $400 later in the month. Try to avoid the Winter Music Conference, scheduled for March 21-24 this year. South Beach hotel rooms will fill up and airfares soar during that time. 

Three other Florida beach towns also made Kayak’s top 10, including West Palm Beach (No. 5); Fort Myers (No. 6), and the family-friendly Tampa (No. 10). 

The two top spring break destinations outside the continental United States were Los Cabos, Mexico, with beaches, bars, and ocean activities; and San Juan, Puerto Rico, which boasts beaches and rainforests. 

Although the typical beach party spring break remains a popular rite of passage for many college students, some are craving alternatives. A group called Break Awayoffers active citizenship and leadership conferences for college students during spring break. Similarly,Projects Abroad promises an opportunity to make a difference by participating in volunteer projects such as rebuilding homes for the poor in Jamaica, protecting endangered turtles in Mexico  or providing educational support for underprivileged children in Costa Rica, Belize, or Fiji. 

One thing is certain: Whatever your preference for marking the arrival of spring, there’s something fun and affordable you can try, alone or as a family.

What Is The Cloud And Is It Safe?

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Why do we use the cloud?

There was a time we used to buy furniture to hold our media.  CD racks, DVD racks, photo albums and filing cabinets filled our living rooms, guest room closets and wherever else we could pile them. Even in our cars, we would install massive CD changers to keep our music flowing or carry enormous books of CDs so we could have our tunes while on the open road.  If you try to explain this to young people today, they’ll look at you like you just described preparing your covered wagon rather than a mid-2000s Honda Civic.  If you try to explain audio cassettes, they might just suspect you have a loose screw or two.
Today’s media and data is so small, it might as well not even exist. Using the Apple Music and Spotify libraries as a guideline, every song that’s ever been recorded and released would fit into flash storage drives the size of a 12-ounce can of Crystal Pepsi. Even as our data gets smaller, we make so much more of it that it can get out of hand – much like processor speed, the amount of information the world produces doubles every two years. Some of that information is pictures of kittens and makeup tutorials, but we also produce a lot of data that isn’t nearly that important.
In such a data-driven world, we trust more and more of our lives to the cloud, and often it seems like blind faith.  After all, what is the cloud? How much do you know about it? Are their laws governing the way people use it? Most importantly, have you taken enough steps to protect yourself when all of your information exists on what is, if we’re really honest about it, not much more than a metaphor for the shared hallucination that is modern life? 
Why should I start to care now? 
This week, iPhone users started noticing problems with Safari.  Initially attributed to an iOS update from earlier this month, it is now suspected to be a server-side problem stemming from Apple’s cloud-based syncing with its Safari web browser.  The issue doesn’t affect security, but it demonstrates a critical problem with cloud-based computing, something all of the major tech companies are pushing us toward. And it’s something where we have little control over our online security.
The cloud itself has insinuated itself in a variety of news stories in the last few years, from the theft of intimate photos belonging to Hollywood stars like Jennifer Lawrence to the operation for ending corruption in FIFA. Cloud storage is behind the surge in Amazon’s stock valuation, because they are the largest provider of cloud storage to businesses, including Netflix, the largest private user of bandwidth on the planet. The cloud is the basis for Google’s push into the laptop business via Chromebooks, and by extension, the efforts of a variety of organizations to get low-cost laptops in the hands of less-privileged kids.  It’s even changed Microsoft Office, probably the most ubiquitous piece of software in the world, by forcing Microsoft to create free versions of its Office suite and charge for excess storage of the files you create.
In other words, your investments, your data and the future of law enforcement may be intimately tied to cloud-based computing, and something as simple as a server-side bug can have an enormous ripple effect for millions of users. The issue won’t be going away any time soon, as more people use the web more often on mobile devices, which will eclipse 50% of personal Internet usage in the next few years. These devices rely on storage in the cloud to compensate for smaller on-device storage capabilities and a lack of long-term storage peripherals. 
What is the cloud? 
The cloud is a series of servers which store data that can be accessed by users whenever it’s needed.  This frees up hard drive space while protecting us from data loss due to hardware failure, including a stolen laptop or dropping your phone into the pasta you’re boiling on the stove. It’s not magical, and your information doesn’t live on the Internet in any particularly novel way. Instead of a home video being stored on your local storage, it is stored on someone else’s storage, far away. These server farms are enormous undertakings, and if you’re into mechanical processes and design, they’re also beautiful and fascinating. For example, check out these pictures of Google’s data centers: http://www.google.com/about/datacenters/
How much of my data is stored on the cloud? 
The amount of your information stored on the cloud varies from person-to-person, but if you’re reading this on a device that plugs into a wall at any point, you’ve got at least some data on the cloud.  If you own an iPhone, your device backs up your photos, videos and music to the cloud, in addition to storing periodic backups of your phone.  If you have a web-based email address, like one from Gmail, Yahoo! or AOL, your emails are backed up there as well.  Depending upon which apps you use, your health details, dating history or even your exact current location could be on the cloud as well, possibly being shared with third parties. 
Wait, who can see what? 
For the time being, the government can probably see more of your data than you think. Exact details are fuzzy, and you can make your own moral judgments on homeland security, domestic spying and Edward Snowden. However, if you think the government doesn’t want access, keep in mind that Apple is currently fighting both California and the United States federal government to keep a form of encryption on your data that it can’t break. Apple no longer wants to surrender data to the government, so it has blinded itself from seeing large swaths of your data. The government is less happy about this, because that data might point to potential threats to homeland security. Again, this article isn’t trying to make a moral or political claim. The point is that the government is a third party who wants the ability to look at your data, which represents another point of vulnerability to a malicious attack.
Outside of the government, a lot of the companies that maintain those expensive server farms pay for all of that technology by sharing some or all of your personal information with private businesses.  You should already know that, of course.  If a web service is free to you, then the company providing it makes its money some other way.  If they’re charging you, they still might make money by selling your data.
You’ll never know, because you accepted the terms without reading them. Don’t feel bad, though, we all do that. The iTunes end user license agreement (EULA) is over 20,000 words long, about four times as long as the Constitution of the United States. There are, however, some resources to help you.  For a shortened and simplified version of various EULAs, try tosdr.org, which is a donations-based organization that explains what you’re agreeing to and offers an add-on for your browser so it’s only a click away. 
Is my data safer when it’s in my control? 
That question is up for debate, but usually the answer is no. In most instances, end users are the most vulnerable point of attack for cyber scammers. However, when you have control of your data, you can work to make it safer. When you don’t, you’re trusting someone else with it. To put it another way, Apple Pay, Samsung Pay, and other tokenized payment plans are the safest way to make a purchase because they require your thumbprint, protects your data with single-use encryption that’s worthless to a third party, and doesn’t store your info in the cloud.  Doing your best to emulate those services is a good idea. 
So, what do I do to protect myself from the cloud? 
The easiest solution is to spend some time and some money. Find a single site to store your files, whether it’s with Google, Microsoft, Apple, or Dropbox. Read each of their EULAs and decide for yourself. Then pay them to get as much storage as you need, rather than spreading your files among various services in order to stay under the amount for free storage.
Next, go through and make a list of which sites and services have what information of yours. Determine your level of comfort. Delete what you can live without, move the rest to somewhere you feel safe. Clear out your email inbox whenever you can. Don’t archive private data, like medical records or financial statements, with your email provider. Instead, save them locally on storage you have at home or work, which you can disconnect from the Internet. A 2-terabyte solid state removable storage drive is less than $100 and offers you great protection.  As an added measure, back up your drive in a second location once a month, in case something happens to your house.
Finally, as you move forward, try to think critically about what you’re telling people. If someone can make money off your information, they’ll find a way to do so. The only way to protect your information and that of your family’s is by being vigilant. 
Sources: 
https://tosdr.org/  
http://www.slate.com/articles/technology/technology/2014/11/e
nd_user_license_agreements_does_it_matter_that_we_don_t_read_the_fine_print.html
http://genius.com/Apple-itunes-terms-of-service-annotated  
http://www.theguardian.com/media/pda/2010/aug/02/infographic-data-cloud
http://www.infostor.com/storage-management/worlds-data-doubling-every-two-years-.html