9 Essential Estate-Planning Documents

Dying without a will leaves your family and heirs with a potential mess. But without one, a probate court will decide where your property goes, which can take months, and sometimes, years. Money that you intended for family and good causes may go to pay lawyers. Additionally, if you have young children, unless you name their guardians in a will, a court will do it. And what about your pets? Their future is up for grabs if your will doesn’t spell it out.

To truly sort out your estate planning, prepare these nine documents, and your heirs will thank you eternally:

1.       Will- A will gives you a voice when you’re gone. You can appoint guardians, distribute your possessions, and make requests.

2.       Trust- A trust allows you to pass assets your heirs, sidestep probate court, reduce your estate tax, and minimize potential lawsuits.

3.       Healthcare Power of Attorney & Living Will-  These documents allow you to name someone to make medical decisions for you and enforce your wishes about treatments.

4.       Dependable Power of Attorney- This allows you to appoint someone you trust to make legal decisions if you can’t.

5.       Beneficiary Designations- This document names beneficiaries who will inherit your assets.

6.       Life Insurance- If you purchase life insurance, it will help those who would be financially devastated by your death pay for expenses.

7.       Provision for Digital Assets- This document outlines what you want done with your computer’s hard drive, electronic photos, data stored in the cloud, and online accounts once you've passed. Be sure to include passwords!

8.       Letter of Intent- A letter of intent is used to convey private requests, thoughts, wishes, or other information.

9.       List of documents- Make a list of the important stuff: Life insurance policies, deeds, pensions, retirement accounts, bank accounts, all of it. Include account numbers & passwords and where they’re stored.

If you have questions and would like to meet with a financial representative, Honor Financial Group is a great first step.  Give us a call to set up an appointment today. 

 

And, don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

To listen to 97.5 Y-Country's Mark Durocher & Honor Credit Union's Greg Hildebrand talk about Estate Planning, click on the Mason Jar Monday episode below!

 

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.  Honor Credit Union and Honor Financial Group are not registered broker/dealers and are not affiliated with LPL Financial.

Not NCUA Insured -Not Credit Union Guaranteed -May Lose Value

 

Most Common Budgeting Mistakes

It’s no wonder that January is the number one month for people to begin new financial endeavors, and nearly a third of people surveyed by GoBankingRate said their 2016 goals include “saving more and spending less.” At Honor Credit Union, this is music to our ears, as we love helping members save their money! BUT the big question is HOW are these people going to stick to their budget and be financially successful? By having a fail-proof budget in place, and knowing what the most common budgeting mistakes are and how to avoid them!

Here are the top five mistakes (and how to avoid them!):

1.      Failing to set a realistic budget- Many times, people feel overwhelmed by how long it takes to tack expenses and set a budget. Make time to sit down and tackle this project, as it will only help you in the long run.

2.      Using the exact same budget every month- This is a big mistake, as expenses differ each month, depending on holidays, birthdays, vacations, energy costs during warmer or cooler months, or unexpected home or auto repairs. Plan each month one month ahead, so you can make be sure to allot money for these particular expenses that aren’t recurring.

3.      Never allowing for wiggle room-  If your budget is too set, as in every penny is set aside for some specific expense, you won’t have anything left to pay for that unexpected car repair or other surprise expense. Be sure to set aside some money for these extra expenses.

4.      Relying on credit cards- If you’re relying on credit cards to make payments on necessary expenses, but then failing to make payments towards the cards themselves, you’re just digging yourself a huge debt hole that you may not be able to get out of. To avoid this, use cash only for the first few months of your budget so you can see where the money is going.

5.      Quitting your budget too soon- Many times, people will stick to their budget for a couple of months, then quit. Don’t do this! Successful budgeting takes time. You need to mess up a little in order to figure out what you really need each month.

Remember- if you stick to your budget as closely as possible and make budgeting a part of life and a long-term commitment, you’ll ultimately end up financially successful!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

To hear 97.5 Y-Country's Mark Durocher and Honor's Kaylee Williams talk about New Year's Financial Resolutions, click on the Mason Jar Monday episode below!

 

Tax Time Tips

Tax Time 2016 is almost here, so it’s important to begin thinking about filing your tax return! But something most don’t consider when filing, are if mistakes are made. If you make a mistake on your tax return, it usually takes the IRS longer to process it, and they may have to contact you about that mistake before your return is processed, causing a delay in the receipt of your tax refund. And nobody likes that!

Here are a couple of tips to avoid common mistakes when filing:

1.      Tax season opens January 19^th, 2016- You can begin filing your tax returns immediately on this date!

2.      Deadline is April 18^th, 2016- Taxes are due this day. However, if you failed to do so, don’t fret- you can still file and receive your refund! If you are not due a refund and instead owe, the sooner you file, the less your late filing penalty fee will be.  The fee could be anywhere from 5% to 25% of your unpaid balance per month! If for some reason you can’t file right away, immediately file for a tax extension. This way, you have until October 15^th to file without penalties.

3.      When filing online, install anti-virus and firewall protections on your computer and encrypt tax files- This ensures thieves won’t get your personal information, and end up stealing any money you may be due!

4.      Remember to sign it!- Missed signatures are more common than you think, and this qualifies as an incomplete return- meaning it will be returned to you for a signature and the process will be delayed.

5.      Double check your social security number entry, name, & financial institution routing number/your account number, calculations (these are all simple but common errors). And, if you misspell, have a typo, or otherwise, your return will be returned to you and the process will be delayed.

If you are going to be e-filing your tax return, Honor Credit Union can help! Once tax season opens, we’ll have a link to TurboTax, an e-filing tax service, right on our website homepage for your convenience! AND if you decide to e-file with TurboTax through our website, all Honor Credit Union members will receive a discount- up to $15 off! For more details, visit honorcu.com.

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

New Year’s Financial Resolutions

 

First of all, Happy New Year, 2016 is here! If you haven’t yet, you’re probably thinking about some New Year’s Resolutions. And, statistically speaking, you probably have at least one financially related resolution that may include saving more, spending less, investments, loans, etc.

If you haven’t figured out exactly what you’d like to work on financially in 2016, here are a couple of things to think about:

1.       Did you have good saving habits last year?

It doesn’t matter if you make 20K or 100K, you can’t accomplish your financial goals if you spend all of your money. The best way to increase savings is automatically making payments to yourself. Have a set amount or percentage automatically go into your savings account from every paycheck you receive.

2.       Were you financially responsible?

Late or skipped payments not only generate fees and interest charges, but they also can damage your credit score. A low credit score means higher interest rates on future financial endeavors, denial of loans, and a lot more negative stuff. Be responsible in 2016- always make payments on time, or better yet, make these payments automatic, too!

3.       What’s your debt like?

If you’re like the majority of Americans, you probably have some sort of financial debt. If you carry too large of a debt balance, and only make minimum payments, this can negatively impact you as well. Try working with a financial planner to get yourself on track, spend less and save more, and make a budget, and stick to it!

Follow these tips, and you could make 2016 your best financial year yet!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

To hear 97.5 Y-Country's Mark Durocher and Honor's Kaylee Williams talk about New Year's Financial Resolutions, click on the Mason Jar Monday episode below!

 

How To Make 2016 Your Best Financial Year

Something many of us still have trouble with when budgeting is curbing our frivolous spending and remembering to pay ourselves first! But these are crucial steps towards reaching a goal of personal financial success. To get a leg up on your finances for 2016, start by finishing 2015 with a big financial bang!

Follow these steps:

1. Start automated payments (if you haven’t already!)

• If you’re a spender, not a saver, and have trouble making your payments every month because of this, start automatic payments. This way, your payments are made on time, and you find your credit score going up while your frivolous spending and loan amounts go down

2. Get a financial advisor

• Not everybody is money savvy, but everyone is responsible for their own money. Call up your local credit union and begin talks with a financial advisor. They can help you ensure your future financial success.

3. Create small, specific, yet achievable, savings goals

• Make SMART goals (Specific, Measurable, Accurate, Realistic, Time-bound). Be sure you KNOW what you are saving for (pay off a credit card, save for a trip, etc.) as this makes it easier to attain your goals.

4. Ditch those Friday nights OUT with friends, and opt for Friday nights IN

• People are more likely to spend if their friends are spending. Eliminate the problem by avoiding those spending traps by opting to stay in, instead of going out.

 

Keeping your finances in check can be easy as pie, if you put your mind to it. Keep your money on your mind, and you’ll see your nest egg grow as a result!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

To listen to Y-Country's Mark Durocher and Honor Credit Union's Scott McFarland talk about having your best financial year yet, click on the Mason Jar Monday episode below!

 

Stop Spending Money….And Start Spending Time

Every year, it seems more people are spending much more money on gifts, holiday décor, holiday meals, and the like. Even if you’re normally perfectly sensible about money, the holiday season can send us all into a spending frenzy! But it doesn’t have to be that way- Christmas can be just as special without all the spending of money.

Here are some tips to make your season merry and bright, without handing over cash!

1. Spend time instead- Make all homemade ornaments and decorations & decorate with the kids, have a home-based wine and dine with friends, or just relax at home with Christmas movies and snacks!
2. Have a potluck Christmas dinner- Invite friends and family over for a big feast, but have each person bring a traditional Christmas dish. You never know how many yummy family recipes are out there until you have a good ol' fashioned potluck!
3. Buy experiences for people instead of traditional presents-  Buy gift cards for experiences like movie theaters, children’s museums, snow mountain passes, indoor sports, etc. Making memories through fun experiences can be much more valuable than another pair of socks any day!

Don’t let the holidays deplete your savings account- Buy or make meaningful, inexpensive gifts as presents, and remember- Time spent together, enjoying each other’s company is the best kind of spending!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

Holiday Spending: How To Keep It Under Control

Have you blown your Holiday budget this year, or are you holding onto your cash with an iron fist? The holidays are definitely a time to take into consideration what you can realistically afford for children, friends, and family. Sure, Sally may really want that $50 Christmas Barbie, and Joey may have been dreaming about that insanely expensive Star Wars collectible. But can "Santa" buy those items for them without going broke, or worse, into debt? Whatever your stance on spending around the holidays, it’s safe to say most families are thinking about how to afford them. Here are some things to consider when getting ready to shop:

1.  Setting a budget and sticking to it- Many times, people will just blindly go to the stores without a set budget in mind. This is dangerous, as 9 times out of 10 you will end up spending much more than you anticipated.
2. Write down what you want to buy for everyone on your list- If Dad wants a new pocket knife, Mom has been dreaming about this new necklace she saw on TV, and the kids have been wishing for specific toys, write it all down. You won't forget what everyone really wants, and you may even find something very similar for a more affordable price once you start looking and are thinking about those specific items!
3. Do not deviate from your list-This way, everyone gets what they desire, and you won't end up buying a bunch of other items they really don't care about to go with what they actually want. AND you won't be tempted to buy for yourself and spend money you probably don't have!
4. Don’t be swayed by “good deals” near the checkout line! PS- usually, they really aren't good deals, anyways. Companies put items near the checkout line to help sway you and tempt you into spending when you don't need to. Do you really need that $8 nail polish? That chocolate bar looks tasty, but will it taste as good as $5 feels in your pocket? Think before you grab these little temptations off the checkout shelf.

 If you know that you need a little extra help to get your shopping done, a holiday loan or a special credit card rate might be good options. Honor Credit Union has a couple solutions:
 

1. A holiday loan with 12 month financing can help spread your purchases out throughout the year
2. Or take advantage of a discounted credit card rate for all Honor Credit Union Visa purchases made throughout the holiday season

If one of these sounds interesting to you, let us help you shop for the holidays smarter! Check out Honorcu.com or stop into your local branch for details

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

5 Tips To Avoid The Sandwich Generation Squeeze

It’s happening more and more often these days- parents are reaching their early 90s just as their children have entered their retirement years. These “children” are part of what is now called the Sandwich Generation; Baby Boomers who need to learn how to retire while caring for both elderly parents and young adult kids—Millennials who still need financial assistance. This new trend threatens to squeeze Boomers’ finances and put their retirement nest egg at risk—unless they learn how to navigate the looming pitfalls. Here are five tips to help with just such a situation.

1.       Protect your retirement assets and put yourself first; If your kids need help with tuition, help them apply for student loans. If your parents are struggling, help them learn to stretch their assets.

2.       Anticipate your financial needs by increasing your monthly reserve, in the case that your children move back home.

3.       Consider long term care insurance for you and your parents. Price policies and learn what’s covered—it may help defray some of the enormous expense of nursing homes.

4.       Research tax breaks for caregivers. If your parents live with you for half the year, you may be able to pay for caregivers and other expenses by claiming the dependent-care credit on your tax return or contributing to an employer’s dependent-care flexible spending account.

5.       Set clear financial limits if kids move back. Encourage them to work or pay some rent to help offset costs.

If you have questions and would like to meet with a financial representative, Honor Financial Group is a great first step.  Give us a call to set up an appointment today.  And, don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.  Honor Credit Union and Honor Financial Group are not registered broker/dealers and are not affiliated with LPL Financial.

Not NCUA Insured -Not Credit Union Guaranteed -May Lose Value

Transforming Those Thanksgiving Leftovers

Let’s face it – Holiday meals like the recent Thanksgiving get together you might have just had means a LOT of leftovers. Most everyone makes far more food than they’ll need, then eats the leftovers throughout the next few days and freeze whatever is left over from the leftovers! This is much better than wasting food by throwing it away. But, there’s just one little issue. Even though it’s yummy leftovers are still leftovers. That turkey and stuffing was probably an awesome meal the first night or two, but after a couple of days, the last thing you want is another plate of reheated turkey and mashed potatoes. So, here are a few ways you can use leftovers from either Thanksgiving or any of the upcoming Holiday get togethers you might have on your calendar:

·         Transform your turkey. Turkey is so easy to make into other meals! Use it as a chicken substitute for practically any meal you’ll make throughout the week. Turkey pot pie, turkey soup, turkey alfredo…the list is endless!

·         Make magic with your mashed potatoes. Mashed potatoes are just as easy as turkey to make into a plethora of different meals. Potato pancakes, shepherd’s pie, fry them up for a breakfast side dish, etc.

·         Pick apart that Pumpkin pie. Turn that leftover pie into- gasp!- breakfast! Check out this easy Pumpkin Pie Breakfast Casserole recipe! Or, what could be better than pumpkin pie? Bite-size pumpkin pie! Chop the leftovers up into bite-size pieces and keep in a dish in the fridge.

Don’t let your leftovers bore you to death then go to waste!  After all, throwing away leftovers is like throwing away money…and that is definitely not what Mason Jar Monday’s are all about! Use them up smartly, and you can save your money by NOT ordering that take-out pizza!

And, don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

To listen to Y-Country's Mark Durocher and Honor Credit Union's Scott McFarland talk about Thanksgiving leftovers, click on the Mason Jar Monday episode below!

 

 

Start Saving For Long Term Health Care

It’s that time of year when many people start taking a second look at their health insurance coverage.  Did you know that at least 70% of American adults will need long-term care services and support sometime in their lifetime?* Saving for long term health care is important as median costs continue to rise: $87,600/year for private nursing home rooms, $42,000/year for assisted living facilities, and $45,188/year for home health aide services are just a few of the annual cost averages reported on a 2014 Gemworth Cost of Care Survey!*  How will cover these expenses for yourself and your family?

·         Out of Pocket – Costs vary greatly by state – around $8,000 per year to upwards of $100,000 per year; start saving early!

·         Medicare + Medicaid – Benefits may be available for home health care, but only if certain conditions are met.  Don’t assume you’ll be covered.

·         Insurance – Helps pay for care and protects assets up to the amount of your policy.  Evaluate coverage options before you need it.

If you have questions and would like to meet with a financial representative, Honor Financial Group is a great first step.  Give us a call to set up an appointment today.  And, don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

To listen to Y-Country's Mark Durocher and Honor Credit Union's Greg Hildebrand talk about long term health care, click on the Mason Jar Monday episode below!

 

 

Swipe, Sign, & Done!

It’s Holiday Shopping Season! And while some Bah Humbug at the thought, if you’re like me, you’re excited! The holiday decorations, the lights, the smells, the yummy holiday treats- I can’t wait! But there’s one little thing you should keep in mind when heading to the shops for gifts and sales- debit vs credit when swiping your plastic.

 

The Facts–

·         When you swipe your debit card and choose Debit, this means the machine will ask you to enter your PIN (Personal Identification Number). Then the money will automatically come out of your checking account right then and there. However, if you choose Credit, this means you are requesting to conduct a signature-based transaction, which requires just your signature--not your PIN--to complete.

·          You can also conduct signature-based transactions over the Internet or telephone, where you don’t have to have a physical signature  

·         Not only is swiping and signing better than swiping and punching in your super-secret number, there are other benefits to signing off instead!

·         Signing instead of using your PIN greatly reduces the risk of exposing your PIN number to identity thieves.

 

  For signature transactions –

·         Make shopping easier by just swiping your card and signing for your purchase. At Honor, we recommend you sign and run your Debit card as “credit” when you are given the option

·         You can even up the security of your card by registering your MasterCard Secure Code.

·         Honor’s Debit MasterCard Prewards allow you to save at your favorite stores instantly via text, email, or online! Sign up online at Honorcu.com

 

Tips for signing-

·         With most store signature pads, selecting Credit allows you to sign your name instead of punching in your PIN

·         Even if you have already selected Credit, you may be asked to enter your PIN.  Ask the cashier to run the purchase as Credit.

·         Many times, this means hitting the “red” button or the “cancel” button

 

·         For smaller transaction amounts, a signature may not even be needed.

 

 

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!