Many online transactions are said to be widely popular and practiced nowadays because of their convenience. Through online portals, fewer transactions have to be made physically. It’s often the safer and more convenient choice for many individuals and businesses alike.
While many people know how to deal with unsolicited financial advice from friends, family members, and colleagues, a surprising number aren’t sure what to do when the recommendation is coming from their bank. After all, a bank may seem like an authority on all things money-related, leaving many people assuming that the information they are offering is sound. However, even if that is the case, that doesn’t mean your bank is always focused on your best interests. If you need to decide if it’s okay to accept unsolicited financial advice from your bank, here’s what you need to consider.
While most people don’t view banks the same way as retailers, that doesn’t mean financial institutions aren’t selling something. They can benefit from the accounts you open with them financially, so they have a vested interest in getting you to sign up for new products.
Now, this doesn’t mean that what they recommend may not benefit you. However, this kind of advice might not have your best interest in mind. Instead, it might be serving their best interest, which may or may not align with yours.
If the unsolicited financial advice from your bank seems like a sales attempt, review it with a grain of salt. Determine if their goal is really helping you or if it’s more about getting you to sign up for something new. If it’s the latter, accepting their advice might not be a smart move.
Another way to determine if accepting unsolicited financial advice from your bank is okay is to consider the impact it would have on you. For example, would you need to pay a fee? Will it hurt your credit score? Does it alter your monthly debt payments? Does it limit your financial options? Could it create a hardship?
Ideally, you should only follow advice from any source if it results in a notable, reliable gain and any negatives are manageable or acceptable. Only you can determine if that is the case.
If you get advice from your bank, always take your time to look at what accepting it means. Envision how things could play out, including the best-case and worst-case scenarios. Try to get a full picture. That way, you can ultimately make a choice that’s right for you.
In the end, there’s nothing wrong with accepting unsolicited financial advice from your bank if you’ll genuinely come out ahead and the risk associated with the move is reasonable or minimal. However, remember, if you do follow it, the consequences of doing so fall squarely on you and not on your bank. If you aren’t comfortable with that, then it may be better to decline.
Have you ever accepted unsolicited financial advice from your bank? If so, how did it turn out? If not, why did you choose not to follow the advice? Share your thoughts in the comments below.
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Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.
Depending on what financial philosophy you subscribe to, a debit card may be your best friend. Paying with a debit card is a surefire way (outside of loans) to make sure you don’t have any debt. But what happens when your debit card expires?
In today’s post, we’ll answer that question, as well as some related questions.
The reason debit cards expire is to prevent fraud. Banks and credit unions make you “renew” your card to thwart fraud.
Think about it. When you’re making a purchase online, they ask for various pieces of information. Name, billing address, card number, security code (CVV), and EXPIRATION DATE.
This also gives the card issuer (bank or credit union) the ability to keep their customer’s identity safe. Every few years, cards get more sophisticated and come up with a new feature. Magnetic strip, then chip reader, then contactless.
Your card number shouldn’t change when it is renewed. The only time your number would change is if you cancel your card, due to losing it or someone stealing it (or the number, expiration date, and CVV), and you need your financial institution to issue you a new one.
When your debit card expires, your replacement card will come in the mail at least one week before your card is set to expire.
Once you receive your replacement card, activate it, and securely destroy your old card. There are a couple of ways to destroy your old debit card.
Word to the wise
Expired debit cards cannot be used to make purchases. If you try, your card will decline. If you have recurring purchases tied to your card, make sure that’s updated with the new expiration date.
The Things You Need To Do to Protect Yourself From Identity Theft
5 Ways to Prevent Identity Theft from Happening to You
**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see website for full disclosures: www.crgfinancialservices.com
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
Before we answer the question as to whether or not it’s safe to throw away bank statements, we need to cover how long you should keep certain statements. The following list is provided by TrueShred.
You should keep these documents in a very safe place. I’d recommend a fireproof safe to keep these things protected.
It is safe to throw away your bank statements, as long as you do so in a particular fashion. If you have a significant amount of paperwork, hire a shredding service. If you don’t have that type of volume, put it through a shredder. Tearing the papers up once or twice won’t do the trick.
Another safe disposal method, as recommended by Patch.com is to wrap up unused or spoiled food with the sensitive documents, and throw them in the refuse bin. Scavengers are more likely to “skip over” the refuse bin when they’re looking for sensitive information for identity theft purposes.
Below, are several ways to dispose of your sensitive documents without the use of a shredder. This list is provided by WigglyWisdom.com.
There are three other items on that list if you’d like to learn a little more.
Bank statements and other financial documents contain incredibly sensitive information. It’s important you a) keep proper records and b) dispose of these items in a safe manner.
Earlier this year, I wrote a piece about the most important financial documents. If you’d like to learn more, go check that out here.
**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see website for full disclosures: www.crgfinancialservices.com
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
First, it depends on your definition of behind. It may not be the same as the bank’s definition (not shocking). Let’s examine:
Most companies allow a 15-day grace period before tacking on any additional fees. I know that being self-employed, my mortgage company calls me on the second of the month if I didn’t pay on the first, but there’s nothing to worry about if you’re “behind” less than 15 days. No big deal. That’s why they call it a “grace” period.
If you’re in that 15 to 30-day time frame, prepare for a ton of telephone calls from your mortgage service provider (probably between two and four a day). You’ll also begin receiving letters reminding you that if you forgot to pay your bill, now would be the perfect time to make that payment.
Back when my income was very unsteady, a sneaky trick my mortgage company would pull was to send out another bill insinuating that I was two months behind and that if I disagreed with them I should call ASAP. Sneaky snake oil salesmen they were.
During this fifteen to thirty day period, if you can’t pay, don’t worry about the phone calls. You’ll have to pay a small late fee of some kind, but there still won’t be any damage to your credit report.
It’s important to note here: If you’re running up against that 30-day late period, it’s best to drop everything and pay your mortgage. Even if you’re habitually late 29 days; it’s better than being 30 days late from a credit reporting standpoint.
Now the letters and phone calls increase dramatically until you’re 60 days late. Your credit report will note your current late status. Your credit score will fall.
Here the phone calls and letters will cease. Does the mortgage company give up? Ah…that would be nice, but alas, no. They change tactics.
Once you’re over 60 days late, they’re going to send someone out to your house, just to make sure it and you are still there. You can see these people coming a mile away.
They circle your block two or three times, usually, they don’t look like they belong in your neighborhood, then they run up to your front door, peer in a window or two and leave a note on your door saying “Sorry we missed you. Please call us at once.”
It’s at this point you should start preparing for your next steps. If you’re 60 or 90 days past due, it’s probably a lingering problem, but all hope isn’t lost.
The best thing you can do when you’re behind is to communicate with your lender. Home lenders have instituted a number of programs to help you work through your late status.
The second biggest thing to remember is that the people you talk to don’t know you and you don’t know them. They don’t care about your problems. It makes no difference to them whether you stay in your house. They’re a thousand miles away in a cubicle. Stay calm while talking to your lender.
When you’re behind more than 30 days, you need to start talking – but don’t wait until it’s too late. Call your mortgage company, explain your personal circumstances, and begin laying the groundwork to solve the problem.
Can you pay the late payment over a couple of months? How about rolling that payment to the back of the mortgage? Can they waive a fee or two? Sometimes they will, sometimes not, but you’ll never know if you don’t ask.
Next week I’ll talk about the different options you have when you’re really behind on your mortgage and what they all mean. Stay tuned!
For more on paying off your Mortgage and ways to help you do it check out these articles.
Pay a Little Extra on Your Mortgage – What a Difference it Makes
6 Tips for Paying off Your Mortgage Quickly (Without Going Broke)
Don’t Be Afraid to Refinance: 6 Options to Meet Your Financial Needs
Photo: Hanging On: Jess2284
*Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see website for full disclosures: www.crgfinancialservices.com
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
By “pump up,” I mean to do something that improves your financial situation in any way. Reduce expenses, start a rainy day fund, invest for the future, etc.
With that said, let’s take a look at some simple strategies to pump up your finances.
Cut the fat
I’d start by creating a budget. Look at the past three months of income and expenses. Total the expenses, total your income and compare the two. This will give you a clear picture of how much you are spending versus how much you make.
After that, you can go back with a magnifying glass and see exactly where your money is going, and stop spending money where it is necessary, or at least reduce it.
You can also reduce the fees you pay to invest. Mutual funds and ETFs are the most popular vehicles used today, but they come with a cost. It’s listed as an expense ratio. That ratio should be as low as possible. Ideally, it’ll be under .20%.
A quick tip to cut your expenses – get rid of cable/dish. There are too many services available now. You don’t need to spend $100+ on TV anymore.
Increase savings rate
Hopefully, you are saving something. If you are having trouble setting money aside because of limited resources, give this article a read for some help.
You should be saving in at least two places. An emergency fund and a retirement plan.
I mentioned you should have AT LEAST these two accounts. Personally, I have several savings accounts. They are set up for different reasons. I have one for holiday spending, one for car repairs, and one for travel expenses. Giving your money a “job” makes it more likely that you’ll use that money for that “job.”
Switch to an online bank
Most online banks have higher interest rates on savings accounts. They also, typically, have lower rates on loans (based on credit score).
If you are saving money for a rainy day and putting it with a brick and mortar bank, you’re most likely earning next to nothing. Better to put that money in an account where you’ll earn a little interest.
Refinance high-interest rate loans
I’m going to dedicate this section to credit cards because that’s what most people think of when they hear high-interest rates.
There are three strategies you can use.
If you want to learn more about credit cards, click here.
Improve your credit
Your credit score makes a difference. It can impact what loans you qualify for, the interest rate, where you live, and where you work.
If you want to start making moves in your financial life, you need to improve your credit.
There are three really simple ways to do this.
If you want to learn more about improving your credit, click here.
Conclusion
If you want to improve your financial life, it’s actually pretty straight forward. Spend less than you make, save money for the future, pay down debt, and improve your credit. If you do these four things (obviously, easier said than done), goals that once seemed far fetched, can be within reach.
Please visit my website for our disclosures.
If reading this blog post makes you want to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.
My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com
Global Banks Fined Over $5 Billion… for Currency Rigging!
Look, I’ll be the first to admit: I’m no currency expert. In fact, the only time I ever even think about foreign exchanges are when I’m traveling abroad.
But even I noticed that there was a huge currency rigging scandal this week.
Apparently, five huge global banks got caught conspiring to manipulate the price of dollars and Euros to increase profits.
That’s a super shady thing to do, and now they have to pay… big time.
One thing I don’t quite understand about this story is, “who loses here?”
I mean, yes, fixing markets for your own benefit is a bad thing to do. We’re looking for the invisible hand to move markets, not the visible strong arm of the biggest banks in the world. It’s just that this is different than Abramoff, who lied to investors and stole money.
Does anyone lose here?
Does anyone win?
I wonder if the $5B in fees is less than the ridiculous profits they made by fixing currency in their favor. And if it is, doesn’t that just teach the banks to keep doing what they’re doing? Maybe they’ll want to use different internet chat rooms so they’re not so easily caught, but even if they are, they still come out ahead, after the fees have been paid.
Does currency rigging affect us all in ways we don’t feel?
That’s my conclusion.
There is money to be made in currency exchanging, even if you’re not a huge bank that has the power to collude and adjust the market in your favor.
In fact, there are plenty of people who make their living on the Foreign Exchange Market (Forex for short).
I haven’t delved into it myself, but if you’re interested, do your homework. Read that Wikipedia page, learn the ins and outs, then use a company like CMC Markets, one of the first companies to provide online forex training, to start dabbling in foreign currencies.
Then come back and tell us about your experience.
Some news today for our UK readers. Will this spill over into the USA? Hopefully!
A recent survey by the Federation of Small Businesses (FSB) is welcome news to the UK economy which in part is dependent upon the success of that sector. The regular quarterly survey showed that 60% of respondents expected growth in their business in the coming months, a clear sign that they believe the recession has been left behind. The result is consistent with the conclusion from the previous six surveys. While the South East was inevitably the most positive region, the greatest improvement in attitude came from the North East, which has often lagged behind when growth has started elsewhere.
The results mirror reports from the Office of National Statistics which announced that in the second quarter of 2014 there had been 3.2% growth compared with the same period the year before. The International Monetary Fund (IMF) agrees; it sees the UK as one of the best performing economies around.
FSB Chairman, John Allan, interprets the news as confirmation of the role small business is playing in the recovery in the UK. At the same time, he wants all political parties to commit to ensuring the momentum continues.
It is important that all small businesses see this time as an opportunity to go for growth, now that consumers largely seem committed to spending once more after years of recession had everyone thinking twice. If you are wondering how to expand your own business and are short of the capital needed to do it, the solution may be small business loans UK from companies which reflect the same confidence in the future.
The online financial sector has certainly benefitted from taking a positive view towards lending, sometimes in stark contrast to traditional financial institutions that have tended to take a conservative approach to any applications. These lenders still need information from applicants, but put far more emphasis on their ability to repay the loans rather than any historical problems that may have occurred.
If you think that this may be your opportunity, you can look at websites that will largely explain everything you need to know from the detail of the process to the information required with the application. You can get an idea of the cash flow commitment you will face if you are approved, and the term of a loan. Interest rates are at historically low levels and look likely to remain so for some months yet. Those are months in which your business could be growing, if you decide it is time to finance expansion plans or similar. Take some time to check out how your business could benefit from a small business loan to boost growth.
Image courtesy of TaxCredits.net
Taking on a home loan can be a daunting experience, and one of the biggest decisions you will ever have to make, so it is crucial to have all the facts at hand when deciding where to get your loan. Despite the solid reputations of the big banks, you should strongly consider mortgage products from the smaller banks, such as the BOQ Clear Path Home Loan, which can offer very competitive interests rates and often beat the big banks hands down.
Regardless of where you go to get your home loan, the following five simple questions will help you navigate and simplify the process, any mortgage broker worth their salt should be able to give you clear and concise answers.
Whether you are getting renovations done, hiring a new employee, or looking for a babysitter, the first thing you want to have are references from their previous customers. This is such a simple question that it is often overlooked, but getting a home loan is life-changing decision and it makes sense to talk to your brokers previous or current customers to get the low-down on how well they did their job. If this question is met with evasion or shrugged off, its time to find a different broker.
The most important factor in any home loan is the interest rate. Having a clear understanding of how the interest rates of various loans are structured enables you to compare loans like-for-like to find the one that suits you best. Some banks try to lure customers in with a special rate, only to have it revert to the standard variable rate after one year or less. Don’t be fooled by such offers, ask your mortgage broker to explain how your interest rate might fluctuate over the entire life of the loan and whether a fixed rate or variable rate loan is best for you.
There are a plethora of fees associated with getting a home loan and you should be wary of fine print and vague language when going through the application process. Ask your broker to explain how all fees are calculated, from first applying for the loan to finally receiving the money, and then on, for the entire life of the loan. Many savvy banks are now offering fee-free applications for their home loans, for example, the Clear Path Home Loan from BOQ. Not having to pay an application fee can take the uncertainty out of applying for home loans, as if you are not successful, or change your mind, you have not committed any money and can move on to consider other options.
Paying off your loan early is the key to saving money and owning your home sooner. If interest rates drop, and you can afford to pay more, you don’t want to be penalised do you? Ask your broker to explain if any administration fees apply for paying more than your monthly repayment or if there is a penalty for repaying your entire loan early.
Supplying the requisite documents is essential to making your application proceed smoothly and quickly. Ask your broker for a complete list of the documents you will need to provide, this will usually include proof of identification and employment, bank statements, proof of your liabilities and assets and depending on your situation, a credit history and tax records. Your broker should be able to give you a clear time-line for the processing of yourapplication once you have supplied all of the necessary documents.
Armed with these five simple questions, you should be quickly able to tell whether your broker is reliable, professional and able to provide you clear answers to help guide you through the application process.
Hey, everyone! I’m back here….it appears OG and I are going to write at FFA once per week. My posts here will be more structured and on-task than my writing at Stacking Benjamins. If you’re looking for more humorous writing, find me there……
I just got off the phone with my coach. We have a session three times per month and they’re a powerful use of time. Not only do we focus on business, but on the balance between my business, personal and spiritual life.
This month we’ve begun digging deep. Here’s what we’re working through:
1) I’ve listed all of my important strategic priorities for the fall.
If I don’t prioritize what’s important to me right now, I find that it gets lost in the shuffle. It’s better to plan my fall now to make sure that those events that are important to my business and family all make the cut.
2) I took out the calendar and planned my model week. This also included making sure I block out time for family and friends. I don’t want to get buried in my work and forget my priorities.
For me, the Apple calendar works best because I use mostly Apple products. However, you should do something similar and find a good calendar that will automatically sync with all your devices. That way, whenever you remember something that needs to be added to a calendar, you don’t have to worry about being at your desk.
3) I reviewed my business accounts. Because I’m starting to build up some money in my business accounts that I’ll be spending later in the year, I’m interested in business savings. By setting up separate accounts, I can make sure my “buckets of money” for different projects don’t inadvertently get spent on other, less important pursuits.
4) I scheduled creativity. This is an important one for me. To write entertaining pieces and fun podcasts takes a ton of creative “juice.” Studies have shown that a neatly sewn calendar actually decreases creativity. I’ve scheduled time to read (called R&D) and time to play games with friends. I also schedule time to listen to other podcasts and read other blogs.
5) I created automation whenever possible. If I could automate it, I’ve scheduled ways to get it done. Much of my twitter and Facebook posting can be prescheduled. Because I’ve found a bank that offers free business banking, I’ve automated much of my financial tasks. Anyone helping me on the back end of the site is given tasks each Monday so that I’m able to concentrate on the reader experience.
That’s what I’m doing to plan for the fall. How about you?
