Getting Your Fiscal House in Order in 2014
By now, most of you diehard “resolutionists” have committed your 2014 goals to paper. You are full of confidence or at least a hopeful expectation that this year will be the year you really get your life in order. You’ve vowed not to repeat past mistakes and are ready to take the bull, the new year, by the horns.
Before the year gets away from you, as they always seem to do, and you find some of your goals falling by the wayside, again, as they always seem to do, you may want to make sure you get your fiscal house in order first. After all, most people’s resolutions consistently revolve around two things: health and money.
Even the federal government has a New Year’s Resolutions site with links of references to help you stay on track. Not too surprisingly, three of the 13 most popular resolutions are money focused – getting a job, saving money and managing debt.
So before you get caught up in life and your best New Year’s intentions fade away with the glitter of the holiday season, consider the following financial checklist for the new year.
Meet with a financial advisor. If you haven’t had a discussion with a financial advisor in some time, or ever, now is the time to do so. It’s never too early or too late to begin planning for your future/retirement. If you already have a financial advisor it is a good idea to meet with him or her at least once a year to monitor your progress and evaluate your plan.
Look at your taxes. If you are one of the many April 15 procrastinators this could be the year to change that. While you are waiting on your W-2s, 1099s, etc., you can begin getting your receipts in order and/or schedule an appointment with your tax preparer. Why not take the stress off tax season this year and get your taxes done early, especially if you are getting a refund. Please note that the earliest day the IRS will be processing 2013 individual tax returns this year is Jan. 31. This date is slightly later than usual due to the government shutdown last fall.
Develop or review your budget. If you haven’t created a budget, create one, or if you haven’t looked at your budget in some time, it’s time to update it. Things change (having a baby, elimination of a debt, an increase in household utilities, etc.) and consequently this affects your budget. This is also great time to re-evaluate your expenses. Cancel subscriptions or services you never use and contact companies that your do business with regularly (e.g. your cable company) to see if they can offer you a better rate. Increase deductibles on your automobile, home or medical insurance, if possible, to lower your monthly premiums.
Update your will. Like your budget, any changes, good or bad (e.g. divorce), can affect your will. If you don’t have a will, now is a good time to draft one.
Check your credit report. With identity theft on the rise, it’s very wise to monitor your credit. At annualcreditreport.com, you can get a free credit report from each of the three credit reporting agencies once a year.
Evaluate your retirement situation (ties in with ‘Meet with a financial advisor’). If you haven’t begun putting away money for retirement, there is no time better than now to start. Most financial experts will tell you to set aside 10 to 15 percent of your annual income each year for retirement. However, if you can’t manage that, put away as much as you can. Remember, saving something is better than nothing.
If you are on target with your yearly retirement contributions, it’s a great time to review your retirement accounts and strategies. If possible, according to financial experts, savers should increase their retirement contributions by 1 percent each year. You should continue this increase every year as long as you can until you are saving the maximum allowed by the IRS.
As is the case when making any major changes in your life, Rome was not built in a day. However, if you will commit to at least one of these recommendations, your 2014 finances are sure to see an improvement over 2013.
Thanksgiving is just around the corner! Soon we will be feverishly preparing those much-anticipated annual feasts. We will be reviewing our cherished Turkey Day recipes, preparing our grocery lists, inviting our guests and calling “dibs” on the most comfy chair in the house to watch the infamous Macy’s Thanksgiving Day Parade.
Sadly, this holiday has lost some of its meaning over the years. It’s become an increasingly thinner slice of the celebration it was originally meant to be, sandwiched somewhere between the marketing machines of Halloween and Christmas. In many ways, Thanksgiving has become a few days of respite before the craziness of Christmas-Hanukkah-Kwanzaa unfolds.
I recently stumbled upon an extremely poignant quote by H.U. Westermayer, which I believe aptly sums up the true meaning of Thanksgiving, as it was originally intended by those who gave birth to this celebration over 390 years ago:
“The Pilgrims made seven times more graves than huts. No Americans have been more impoverished than these who, nevertheless, set aside a day of thanksgiving.”
With these sobering words in mind, let’s all take time to give thanks for our many blessings – our health, family, home, friends, job and having food on the table.
In honor of this holiday, I thought I’d give you a few creative ideas/ways to give thanks that I recently found in an article in Better Homes and Gardens. I hope you find these crafts fun to make and will make at least one of them part of your Thanksgiving tradition.
Wine Glass Tags – Print out leaf-shape pattern (you can find one on the Internet) onto fall-color papers, cut out, and punch a hole at the base of each leaf. Ask guests to pick a leaf and write a word or short phrase describing something they’re thankful for, such as “family” or “good health.” Attach leaves to the wineglass stems using lengths of gold cord or raffia.
Notes of Appreciation – For those who can’t be at your Thanksgiving table, set pen to paper to tell them they’ve made a difference in your life this year. Print these Thanksgiving designs to make lovely foldable cards for your thank-you notes.
A Thanksgiving Tree – Stick bare branches into a pitcher filled with sand. Make ornaments from paper cutouts by punching a hole in the top of each one and tying ribbon through it. In addition to asking guests to share their thankful thoughts, ask them to sign their name and date their ornaments. Save the Thanksgiving ornaments as mementos for the coming years.
A Journal – Craft a paper journal to record a Thanksgiving celebration. Pass the journal among guests to capture their sentiments and memories. Start your own anthology and make a journal each year. When Thanksgiving comes around again, bring out the old journals and reminisce.
Paper Placemats – Simple pieces of construction paper become expressions of thankfulness. Ask kids to write the things they are thankful for on the pieces of paper, which they can use as place mats for the Thanksgiving meal.
Gracious Giving – Extend the generous spirit beyond your gathering of friends and family. In the weeks before Thanksgiving, pick a charity to contribute to, such as a food pantry or homeless shelter. Ask guests to bring items to donate. (Be sure to give advance notice about the project so it’s not a last-minute surprise.) Place a large basket for collecting donations near the front door or close to the main Thanksgiving festivities.
For more creative Thanksgiving craft ideas visit bhg.com
So as we begin preparations to celebrate this most special day with our families and friends, let’s take time to be mindful of the original meaning of this day and be ever thankful for our many blessings.
From my house to yours, Happy Thanksgiving!
Even in this electronic age, it is still important to balance and reconcile your personal and business bank accounts. For many, balancing and reconciling their accounts is still something akin to having a root canal. But today, with online banking and smartphone apps, this seemingly outmoded exercise is easier than ever before and believe it or not, just as necessary.
Before we begin this discussion, I think it’s important to differentiate between the terms balance and reconcile. These two terms are oftentimes confusing and mistakenly used interchangeably, especially by consumers who don’t use paper checks or a check register to record their transactions.
Balancing – Balancing a check book shows how much money is available in your account at any given time. To balance an account, simply add all your new deposits to the beginning balance of the account and then subtract from that subtotal checks you’ve written, ATM and debit card transactions, cash withdrawals and bank fees. This process will determine your account balance on that given date.
Reconciling – Reconciling an account compares the bank’s records to your records – your check register. Your register should contain a running total of all of your transactions (deposits, checks, ATMs and debit card transactions, ACH debits and credits, fees, etc.). By performing this task on a routine basis you can quickly discover bank errors and most importantly, unauthorized activity.
Reconciling is completed by adding all of the deposits the bank has not yet credited to the bank’s balance and then subtracting all the payments, withdrawals and bank fees the bank has not cleared from that subtotal, confirming that the bank’s records match your check register. This should be done at least monthly – online banking allows the ability and ease to perform this procedure more frequently.
In the old days, these two tasks required paper and pencil and some mathematical calculations. Today, with the advent of technology, this process can easily be completed in minutes.
The benefits of taking the time to complete these two steps, balancing and reconciling, although much less time-consuming today, are still just as important.
By not reviewing your accounts on a monthly basis, first and foremost, you are not being a good steward of your finances. You are not keeping track of the money you spend or where you are spending it. Keeping an eye on your finances helps you maintain a healthy budget, avoiding overspending, overdrafts and incurring unnecessary and costly bank fees.
Many people are reluctant to critically examine their spending habits. The initial examination can oftentimes be painful. However, the end result, especially if this periodic looksee changes harmful spending patterns, is well worth the effort. In addition, there’s just as much value in simply making sure the math is correct.
Another very important reason to go through the balancing-reconciling-reviewing exercise is to spot financial management mistakes and fraudulent activity. This helps you recognize any unfamiliar transactions and unwanted recurring deductions. The sooner you are aware of this unauthorized activity, the sooner you and your bank can take the necessary actions and precautions.
In the end, taking a few minutes to balance, reconcile and review your bank accounts is time well spent. After all, it’s your hard-earned money!
For all intents and purposes another Florida summer is gone. The kids have all gone back to school, the lifeguard stands have been neatly tucked away for another beach going season, our vacations are but fond memories and most of us are counting the days until autumn rears its temperate head.
We typically welcome this period of change, eagerly anticipating a temporary break from the hot, humid weather for which Florida is so famous. Although our seasonal transition lags a tad behind our more northern neighbors, we can still begin to set the stage, our life for all the wonderfully renewing experiences that another season brings.
Add a Few Accents
A new season is a great time to spruce up our surroundings. Adding a few inexpensive touches to our home can make a cheerful impact on our lives – colorful pillows for sofas, new drapes, area rugs or possibly painting an accent wall a bolder, richer color will add warmth to our home.
Bring the Outside In
As the temperature cools and the days shorten, we will be spending more time inside. But we can bring a little nature inside with fresh cut flowers, branches, berries, pinecones and leaves, or even a few dried gourds, adding a lovely autumn touch to our home.
Clean Out and Stow Away
Rather than pack up all our summer gear and warm weather apparel, let’s determine what we want to retain for next year and what we don’t. We can cut down on clutter and storage by making this decision now. Let’s recycle, donate, or have a yard sale to eliminate unwanted stuff, and pack the rest away.
Freshen Up the Kitchen
It’s a perfect time to clean out our pantry, cabinets and refrigerator. Throw out all old and expired items and assess what we will need for the cooler, more comfort food cooking months ahead. In addition to weeding out and stocking up, we shouldn’t forget to give our kitchen appliances a thorough checkup to make sure they are running efficiently. This is a perfect time to vacuum the condenser coils of the refrigerator, clean the oven and eliminate the grease buildup in the oven’s vent system.
Revisit the Bucket List
As another calendar year wanes, let’s review our life list or set out to make one. Let’s jot down our goals, dreams and ambitions, and begin plotting the steps to get there.
Start Cooking Again
Nothing gives our house a homier feel, especially when it’s cooler outside, than the aroma of a delicious home-cooked meal. Let’s break out our cookbooks. Let’s be adventurous and experiment with some new recipes. Let’s start sizzling, sautéing and baking again!
Maintain a Healthy Heart
Now that the lazy days of summer are over, it’s time to light the fire within us. Let’s move our activity level up a notch. Let’s run farther or walk more briskly or add more reps to our workout. Let’s keep in good physical shape over the coming winter months and save ourselves the disappointment of wishing we had when the beach and pool going weather returns once again.
Stay In Touch
As the days grow shorter and cooler, let’s reduce the tendency to shut ourselves in by actively engaging our network of family and friends in our everyday life to maintain a healthy support system. Let’s pull out our calendar and make some dates! Let’s meet for a latte, lunch or gather for a Sunday potluck dinner, and celebrate the beauty of a new season with those we care about most!
From my house to yours, “Happy Autumn!”
It’s that time again. New friends, new teachers and new routines – how do you make the transition from the lazy days of summer to the school year without making life chaotic and stressful for you and your kids?
That’s the question on every parent’s mind right about now. As we move into the second week of August, we begin to realize that “back to school” is just about back!
Getting a new school year off to a good start can influence your child’s attitude, confidence, and performance both socially and academically, according to the National Association of School Psychologists (NASP). The transition from summer to the classroom can be difficult for both you and your children.
But we as parents can help our children (and the rest of our family) manage the increased pace of life that the new school year brings by planning ahead, being realistic, and maintaining a positive attitude. Here are a few suggestions from the NASP to help ease the transition and promote a successful and rewarding school experience.
Before School Starts
Good physical and mental health. Be sure your child is in good physical and mental health. Schedule doctor and dental checkups early. Discuss any concerns you have over your child’s emotional or psychological development with your pediatrician. Your doctor can help determine if your concerns are normal, age-appropriate issues or require further assessment.
Review all of the information. Review the material sent by the school as soon as it arrives. These packets include important information about your child’s teacher, room number, school supply requirements, sign ups for after-school sports and activities, school calendar dates, bus transportation, health and emergency forms, and volunteer opportunities.
Mark your calendar. Make a note of important dates, especially back-to-school nights. This is especially important if you have children in more than one school and need to juggle obligations.
Buy school supplies early. Try to get the supplies as early as possible and fill the backpacks a week or two before school starts.
Re-establish the bedtime and mealtime routines. Plan to re-establish the bedtime and mealtime routines (especially breakfast) at least one week before school starts.
Turn off the TV. Encourage your child to play quiet games, do puzzles, flash cards, color, or read as early morning activities instead of watching television. This will help ease your child into the learning process and school routine. If possible, maintain this practice throughout the school year.
Minimize clothes shopping woes. Buy only the essentials. Summer clothes are usually fine during the early fall, especially in Florida. Check with your school to confirm dress code guidelines.
Designate and clear a place to do homework. Older children should have the option of studying in their room or a quiet area of the house. Younger children usually need an area set aside in the family room or kitchen to facilitate adult monitoring, supervision, and encouragement.
Select a spot to keep backpacks and lunch boxes. Designate a spot for your children to place their school belongings as well as a place to put important notices and information sent home for you to see. Explain that emptying their backpack each evening is part of their responsibility, even for young children.
Freeze a few easy dinners. It will be much easier on you if you have dinner prepared so that meal preparation will not add to household tensions during the first week of school.
The First Week
Clear your own schedule. To the extent possible, postpone business trips, volunteer meetings, and extra projects. You want to be free to help your child acclimate to the school routine and overcome the confusion or anxiety that many children experience at the start of a new school year.
Make lunches the night before school. Older children should help or make their own. Give them the option to buy lunch in school if they prefer and finances permit.
Set alarm clocks. Have school-age children set their own alarm clocks to get up in the morning. Praise them for prompt response to morning schedules and bus pickups.
Leave plenty of extra time. Make sure your child has plenty of time to get up, eat breakfast, and get to school.
For younger children – send a brief note to your child’s teacher. . Let the teachers know that you are interested in getting regular feedback on how and what your child is doing in school. Be sure to attend back-to-school night and introduce yourself to the teachers.
Go for quality, not quantity. Your child will benefit most from one or two activities that are fun, reinforce social development, and teach new skills. Too much scheduled time can be stressful, especially for young children, and may make it harder to concentrate on schoolwork. When evaluating extracurricular activities, consider your family schedule and personal energy level. Multiple activities per child may be too much to manage, particularly if the activities have overlapping times, disparate locations, require your attendance, or disrupt the dinner hour.
These are some great tips for helping parents and kids get back into the swing of “back to school.” So with this said, here’s to a great 2013-14 school year!
There is nothing that sings summer’s praises like ice cream – the “Great American Dessert.” Although many of us delight in this sweet icy treat all year long (for some of us, and I’m not mentioning any names, it’s one of our favorite guilty pleasures), summer seems to set the perfect stage for this longstanding frozen delicacy.
In 1984, President Ronald Reagan designated July as National Ice Cream Month and the third Saturday of the month as National Ice Cream Day. So with this in mind, I thought I’d begin the month by talking about one of America’s most popular summer desserts so we can spend the remainder of the month…summer just enjoying it.
I thought I’d start with a brief history lesson so to speak… the origin of ice cream. Then I thought I’d wrap it up with one of my favorite peach cobbler recipes – the perfect complement to your favorite ice cream. This is a summer combination sure to beat the notorious Florida heat!
Okay, let’s get started!
Ice cream’s origins date as far back as the second century B.C. Alexander the Great was known to enjoy snow and ice flavored honey with nectar. There are also Biblical references showing that King Solomon enjoyed flavored ice drinks during harvesting. During the Roman Empire, Nero Claudius Caesar frequently sent runners into the mountains for snow, which was then flavored with fruits and juices. Actually, this may have been the birth of the smoothie.
Over a thousand years later, Marco Polo returned from the Far East with a recipe that closely resembled what is now called sherbet. It is thought that this recipe evolved into ice cream sometime in the 16th century. It seems that England may have discovered ice cream at the same time or earlier than the Italians. Historians report that “Cream Ice,” as it was called, was served regularly to Charles I during the 17th century. France was introduced to this frozen dessert in 1553 by the Italian Catherine de Medici when she became the wife of Henry II of France. In 1660 ice cream was made available to the public at Café Procope, the first café in Paris. It was made from a recipe of blending milk, cream, butter and eggs.
Shortly after, the dessert was imported to the United States. During this time, many famous Americans were known to have served ice cream to their guests including George Washington, Thomas Jefferson and Dolley Madison. Records kept by a Chatham Street, New York merchant show that President George Washington spent approximately $200 for ice cream during the summer of 1790. President Thomas Jefferson was said to have had a favorite ice cream recipe that resembled today’s Baked Alaska. In 1813, Dolley Madison served a scrumptious strawberry ice cream creation at President Madison’s second inaugural banquet at the White House.
The first ice cream parlor in the U.S. opened in New York City in 1776. American colonists were the first to use the term “ice cream.” The name came from the phrase “iced cream” that was similar to “iced tea.” The name was later abbreviated to the name we know today.
Until 1800, ice cream remained a rare and exotic dessert enjoyed mostly by the affluent. However, by 1851 manufacturing ice cream became an industry in America due to the pioneering of a Baltimore milk dealer named Jacob Fessell.
Like other American industries, the production of ice cream and the accessibility to the general public grew due to several technological innovations such as steam power, refrigeration, the homogenizer, electric power and motors, packing machines, and new freezing processes and equipment. Today the annual production of ice cream in the U.S. is over 1.6 billion gallons.
Now that you have enough ice cream history to cause a “brain freeze,” let’s get to the cobbler recipe so you can perform your American duty – consuming your portion of the 1.6 billion gallons that is.
Happy National Ice Cream Month to all of you!
Easy Peach Cobbler
Two 15 oz. cans sliced peaches in syrup
½ cup (1 stick) of butter
1 cup of self-rising flour
1 cup of sugar
1 cup of milk
Drain 1 can of peaches; reserve the syrup from the other. Place the butter in a 9”x 12” ovenproof baking dish. Heat the butter on the stove or in the oven until melted. In a medium bowl, mix flour and sugar. Stir in milk and the reserved peach syrup. Pour the batter over the melted butter in the baking dish. Arrange the peaches over the batter. Bake for 1 hour. Note: the cobbler is done when the batter rises around the peaches and the crust is thick and golden brown.
Serve warm with your favorite ice cream and enjoy!
Time really does fly by when you’re having fun. I can’t believe we are about to celebrate the bank’s five-year anniversary. I feel like this celebration is more of a birthday than an anniversary because it’s really about the birth and tremendous growth of Flagler County’s first truly hometown bank – Intracoastal Bank.
When we opened our doors on June 16, 2008, we were myopically focused on one goal – to become Flagler County’s best (not biggest) bank.
As I am writing this today, I’m extremely excited and proud to say that we’ve achieved that goal and more. Due to the selfless dedication of our staff, the unwavering guidance of our board and the overwhelming loyalty and encouragement of our customers, Intracoastal Bank has (home) grown into the best banking institution in Flagler County!
A celebration would not complete however, without looking at what we – our staff, our board and our customers – have accomplished over the last five years. Incredibly, the list is long, so I thought I’d hit on a few of the highlights.
- We have grown from 10 employees to 24 employees currently on staff.
-We started the bank with no deposits or loans. Today we have approximately $187.3 million in assets, $168.4 million in deposits and $97 million in loans.
-We’ve been rated a five-star bank by Bauer Financial consistently over the past five years.
-We’ve remained committed to the betterment and economic welfare of our community. Our staff is involved in many charitable and professional organizations to include:
Flagler County Education Foundation
Take Stock in Children
United Way of Volusia/Flagler Counties
United Way of Flagler County Women’s Initiative
Flagler Habitat for Humanity
Flagler County Chamber of Commerce
Flagler County Homebuilders Association
Volusia Manufacturing Association
Center for Business Excellence
-We’ve been honored with the News-Tribune’s Readers’ Choice Award – voted the area’s best bank in 2010, 2011 and 2012.
-We offer leading-edge technology and banking programs. In an environment marked by incessant change, we continue to bring our customers state-of-the-art services and innovative banking solutions to make banking convenient.
We have made monumental strides in our first five years. But you can be sure; we have no intention of resting on our laurels. Over the next several months we will be unveiling several new programs/services. Some of these include payroll services for our business customers as well as a new program dedicated to our medical and executive/professional customers. In addition, we will be evaluating the addition of a mobile capture program – enabling our customers to utilize their cell phones to make deposits.
Yes, we have much to celebrate. However, we couldn’t have done it without you, our loyal customers. As we move into the next five years and beyond much will change. But the one thing you can count on to remain the same is the overriding banking philosophy that brought us to where we are today – our dedication to our customers and to community where we live and work.
So please join me in celebrating how far we’ve come and more importantly, where we’re headed. I look forward to our very bright future with all of you.
Thank you for the fun. Here’s to our first five years together and the exciting ones yet to come!
In our day-to-day business, we find that a banking concept that is oftentimes confusing and misunderstood by many of our customers is FDIC insurance. So today I thought I’d take a moment and shed some light on both the history of FDIC insurance and how your deposits are protected today.
FDIC insurance was created back in 1933 in the wake of the Great Depression. It was instituted as a result of thousands of bank failures in the U.S. in the 1920s and 1930s. During that precarious financial time, many bank customers lost staggering sums of money. Gaining access to money in banking institutions during this crisis was on a first come, first serve basis – if customers didn’t get their money out of the bank before it went under, they were out of luck. On the coattails of this financial disaster, individual states attempted to insure deposits. However, they were all unsuccessful.
Amid fear and chaos, President Franklin D. Roosevelt signed the Banking Act of 1933 into law. This act created the FDIC as a temporary measure to restore order to the U.S. banking system. Consequently, bank failures and bank runs (the concerted action of depositors who withdraw their money because they believe the bank is about to fail) quickly declined, suggesting that the FDIC was a successful measure in bolstering consumer confidence and the banking system in general. The U.S. Treasury funded the initial FDIC insurance with $289 million. These funds were repaid to the Treasury in 1948.
FDIC was made a permanent agency under the Banking Act of 1935. This new act refined how the organization would work (e.g. under this act the insurance was now funded by banks instead of the U.S. Treasury). Today, the FDIC proudly notes that since the Banking Act of 1935 was enacted “no depositor has lost a single cent of insured funds as a result of a failure.”
The goal of this permanent agency was and still is to promote trust in our banking system. Simply put, if your deposits are FDIC insured, the U.S. government stands behind the promise to make them whole if the bank fails.
The FDIC runs an insurance fund – a giant pool of money that can be utilized in the event of a bank failure. The money in this fund doesn’t come from taxpayer dollars as some depositors assume. The money is funded through premiums paid by FDIC insured banks and the earnings on the assets in this fund. These banking institutions pay into this fund to pay their depositors if they should someday fail as well as to help pay for other banks that fail.
On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Act. This act, in part, permanently raised the current standard maximum insurance of $100,000 to $250,000.
So, what does this mean to you?
This means that in the event of a bank failure, the FDIC insurance coverage limit of $250,000 applies per depositor, per insured depository institution for each account ownership category.
The FDIC insurance covers all deposit accounts at insured banks and savings associations, including checking and savings accounts, money market deposit accounts, certificates of deposit (CDs) and certain retirement accounts. This insurance however does not protect money invested in stocks, bonds, mutual funds, exchange-traded funds, life insurance policies, annuities or municipal securities. It is important for depositors to understand these distinctions.
What are the basic FDIC coverage limits?
Single Accounts (owned by one person with no beneficiaries) – This is a deposit account owned by one person and titled in that person’s name only, with no beneficiaries. All single accounts at the same insured bank are added together and the total is insured up to $250,000.
Joint Accounts (two or more persons with no beneficiaries) – This is a deposit account owned by two or more people and titled jointly in the co-owners’ names only, with no beneficiaries. If all co-owners have equal rights to this money, each co-owner’s shares of all joint accounts at the same insured bank are added together and the total is insured up to $250,000.
Revocable Trusts (Formal and Informal) – A revocable trust account is a deposit account owned by one or more people that identifies one or more beneficiaries who will receive the deposits upon the death of the owner(s). A revocable trust can be revoked, terminated, or changed at any time, at the discretion of the owner(s). The term “owner” means the grantor, settlor, or trustor of the revocable trust.
This ownership category includes both informal and formal revocable trusts:
• Informal revocable trusts — also known as payable on death (POD), in trust for (ITF), testamentary, or Totten Trust accounts — are the most common form of revocable trusts. These informal revocable trusts are created when the account owner signs an agreement — usually part of the bank’s signature card — stating that the deposits will be payable to one or more beneficiaries upon the owner’s death.
• Formal revocable trust — also known as Living trusts or family trusts — are formal revocable trusts created for estate planning purposes. The owner of a living trust controls the deposits in the trust during his or her lifetime. The trust document sets forth who shall receive trust assets after the death of the owner.
Deposit insurance coverage for revocable trust accounts is provided to the owner of the trust. However, the amount of coverage is based on the number of beneficiaries named in the trust and, in some cases, the interests allocated to those beneficiaries, up to the insurance limit. A trust beneficiary can be an individual (regardless of the relationship to the owner), a charity, or a non-profit organization (as defined by the IRS).
Revocable trust coverage is based on all revocable trust deposits held by the same owner at the same bank, whether formal or informal. If a revocable trust account has more than one owner, each owner’s coverage is calculated separately, using the following rules:
• Revocable Trust Deposits with Five or Fewer Beneficiaries — Each owner’s share of revocable trust deposits is insured up to $250,000 for each unique eligible beneficiary named or identified in the revocable trust (i.e., $250,000 times the number of different beneficiaries), regardless of actual interest provided to beneficiaries.
• Revocable Trust Deposits with Six or More Beneficiaries — Each owner’s share of revocable trust deposits is insured for the greater of either (1) coverage based on each unique eligible beneficiary’s actual interest in the revocable trust deposits, with no beneficiary’s interest to be insured for more than $250,000, or (2) $1,250,000.
Determining coverage for revocable trust accounts that have six or more beneficiaries and provide different interests for the trust beneficiaries can be complicated. Please don’t hesitate to contact our office if you need assistance in determining the insurance coverage of your revocable trust or should you have any questions concerning your FDIC coverage.
Hackers are expanding their sights beyond the large multinational companies to small business owners. A recent survey conducted by Symantec and the National Cyber Security Alliance found that 77 percent of small business owners in the U.S. believe that their company is safe from cyber criminals and 83 percent of them don’t have a cyber security plan.
However, the threat to small businesses is greater than ever. The Secret Service and Verizon Communications, Inc.’s forensic analysis unit, which investigates cyber attacks, cites that a majority of their responses to data breaches over the last couple of years have been at companies with 100 or fewer employees. Visa, Inc. estimates that approximately 95 percent of the credit card data breaches it discovers each year are on small businesses.
Hacking small businesses is big business and unfortunately, it is going to get worse before it gets better.
The reason for this is three-fold. The first reason is that a majority of small companies have now gone to computerized systems, digital record keeping and conduct most their financial transactions online. The second factor is that most small companies don’t have the resources (financial, tools and manpower) or the time to fully secure their businesses from today’s ever-changing and increasingly sophisticated threats. The last and most significant factor is complacency. Most small business owners have the unrealistic mindset that this isn’t going to happen to them. After all, what could a hacker possibly want with a small company anyway? These high-tech criminals want their bank account information, employee lists, including social security numbers, and their customers’ credit and debit account information.
Typically, cyber threats on small businesses come from several sources, the most popular being outside the organization and from within the organization when an employee or an ex-employee steals data. Most financially motivated attacks rely on computer code that the hackers plant on victims’ computers, often as attachments or links in emails sent to employees. While these malicious programs are well known to security experts, the hackers tweak them frequently to render them undetectable to antivirus software.
The bottom line is, the costs of a breach can put a small business out of business. Unfortunately, there is no silver bullet. However, the following is a list of best practices for small business:
-Use secure web browsers.
-Maintain up-to-date firewall and antivirus protection as well as an intrusion detection system.
-Establish policies that stipulate how and when employees can access the Internet, especially when accessing the computer system from home or a mobile device.
-Run automatic computer updates.
-Never open emails, attachments or links from unknown sources.
-Never have sites remember passwords or financial information.
-Shut down computers when not in use.
-Businesses that use online banking for wire transfers and ACH origination should have a dedicated computer for those functions.
The week of February 25 – March 2 is “American Saves Week.” “America Saves Week,” which was coordinated by America Saves and the American Savings Education Council, was started in 2007. America Saves is a national campaign comprising more than 1,000 non-profit, government and corporate groups that encourages individuals and families to save money and build personal wealth. The Consumer Federation of America manages the America Saves campaign. The American Savings Education Council is a national coalition of public and private institutions committed to making saving a priority for all Americans.
“America Saves Week” provides an annual opportunity for organizations to promote good savings habits and a chance for individuals to assess their current savings status – how much they have saved in their non-retirement and retirement savings.
Results from the 2012 Annual National Survey Assessing Household Savings showed that having a savings plan with specific goals and objectives has beneficial financial effects, even in lower-income households. But the key is to have a plan to save!
So, let’s get started.
A great place to begin is by setting a goal. What would you like to save for – an emergency fund, a home, a vacation, a new car, pay off revolving credit card debt, retirement, etc.? Knowing what you are saving for provides the motivation to save. Note: If you don’t have an emergency fund, this should take precedence over your other saving goals. You should have at least $500 of emergency savings – this will alleviate using high interest rate credit cards for unexpected expenses. After this saving goal has been achieved, the next goal is to put money aside to pay off any credit card debt.
The next step is to make a plan. How much are you going to save monthly? The best way to come up with this figure is by making a budget. Yes, I know, the ever-dreaded budget. But unless you know where your money is going you can’t determine how much you can save…more importantly where you can save…where you can cut back. The most important factor in making a budget is making an accurate budget – accounting for every expense to include your daily Starbucks Vanilla Latte habit. The budget process is very similar to a diet – you don’t know how much you are eating until you keep an accurate food log. Your expenditure log is your budget. I can promise, this exercise will be extremely eye opening.
The final step is to begin saving automatically. Routinely putting money away is difficult for most of us. But if you make saving automatic, you will never miss having that money.
Once you determine how much you are going to save each month or pay period, either have your employer direct deposit that portion of your paycheck into a savings account or if your employer doesn’t use direct deposit, immediately transfer that part of your pay into an established savings account. The most important piece of this savings plan is discipline. Once you determine how much you are going to save, treat this amount like a bill – pay it and pay it on time!
For more information on “America Saves Week” and/or helpful tips on saving, visit AmericaSaves.org. You can also follow America Saves on Facebook and Twitter.