Think Your Old Phone is Worthless? Think Again.

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by Sindy Berkowitz

Imagine walking into a Porsche dealership and offering up an old cell phone as your payment. Not even just a down payment—the whole thing. You’d probably be laughed out the door. Finding someone willing to make such a lopsided deal might seem impossible, but believe it or not, one California teenager was actually able to accomplish the task.

Steven Ortiz, a 17-year-old from California, started out with an old cell phone given to him for free by a friend. After browsing the bartering page of Craigslist, he realized he could potentially turn trash into treasure.

Over the course of two years, Ortiz made 14 trades before ending up with a 2000 Porsche Boxster. He first traded for a better phone, then up to an iPod Touch. From there, he bartered his way to a dirt bike. After trading several dirt bikes, Ortiz found himself with a MacBook Pro. With a brand new laptop, the ingenious teenager was able to upgrade to a Toyota 4Runner and promptly swap the vehicle for a customized golf cart. After a series of trades involving dirt bikes, street bikes and beat up old cars, Ortiz found himself with a 1975 Ford Bronco. From there, Ortiz was able to trade for the Porsche.

Not a bad investment, considering that he started out with a free cell phone.

But besides being an interesting story, there’s a lesson here. How often have you simply given or thrown away something without giving it a second thought? With a little patience, careful research and a willingness to negotiate, you can take Ortiz’s example and turn some of the unused items in your home into something valuable.

There’s also another lesson here: Sites like Craigslist, Ebay and Amazon can be bountiful for individuals willing to get creative and apply a little elbow grease. In another highly publicized example from 2008, a man in Canada was able to work his way from being the owner of a single paperclip to becoming a homeowner in Saskatchewan, a province of Canada.

Even without relying on the bartering section of the site, such sites offer plenty of other ways to earn extra income. Buying used furniture and restoring it to increase its value is one such way. There are even websites with free items that simply require your time and energy to pick up. Anything sold would be pure profit!

The old adage that one man’s trash is another man’s treasure is alive and well in the digital economy. While it certainly wouldn’t be prudent to bet your retirement on bartering cell phones and paperclips, a world of opportunity exists to gain supplemental income from goods you may be ready to discard.

To hear about some of the more traditional means by which you can improve your financial outlook, stop by any office of The Milford Bank and talk to us about your goals.

 

Join Milford Bank in Honoring Veterans at Second Annual Milford Moves 5K

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by Becky Tudor

At The Milford Bank, we feel that our success is intertwined with the success of our community, which is why we strive to provide, and participate in, events that promote healthy living. That’s why we started the Milford Moves 5K race; it’s also why, this year, we’re taking it to the next level.

Last year’s turnout was spectacular, with more than 250 local residents showing up to race.

This year, Jorge Santiago, Milford Bank’s senior vice president, is hoping for an even greater turnout. In additional to supporting fitness initiatives, Jorge would like to raise as much as $10,000 for local veterans’ groups.

All profits from entry fees and event sponsors will be shared between four Veterans Service Organizations based in Milford: American Legion Post 196, VFW Post 7788, Chapter 15 of the Disabled American Veterans and Chapter 251 of the Vietnam Veterans of America. The primary missions of these groups are dedicated to veterans administration and rehabilitation, as well as mentoring and sponsorship of local youth programs.

Anyone, regardless of fitness level, is welcome to participate. Participants will receive an event T-shirt, a finisher photo free download and a “virtual goodie bag.” There will also be awards for the overall male and female winners, as well as awards in each age category. All participants under the age of 18 will receive participatory recognition.

If you’re not a runner, show your support and sponsor someone. With the help of generous sponsors, including the Police Benevolent Association, Napoli Deli and Milford Produce Market, we can reach our fundraising goal. Business sponsorships start at $250 and include free advertising. Individual sponsors can also chip in by supporting an individual runner.

If you participated in the race last year, you’ll appreciate that the route has been revised. This year’s runners will begin at Gulf Beach, make their way to the town green and then head back to the starting point.

To sign up for this year’s Milford Moves 5K, register online at Milford Bank’s website. Or, participants also have the option to register on June 12, the day of the race, from 6:30-7:30 a.m. The race begins at 8:00 a.m. But if you’re planning on waiting until the day of the event, be sure to leave extra time to take do some stretches before the race starts!

 

 

Save Like a Pro: Financial Advice From Famous Athletes

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by Jorge Santiago

What do you think happens to the millions of dollars paid to today’s professional athletes? Do you assume that all of them have fat bank accounts? If so, you’d be wrong. Unfortunately, many of these heroes of the gridiron and diamond squander their earnings. In fact, 78 percent of former NFL stars go broke within two years of their retirement, and 60 percent of NBA stars also find themselves in financial ruin once their stars have faded, according to a historic 2009 Sports Illustrated article.

As the Sports Illustrated article reported, the main causes behind these massive financial losses include bad investments, excessive spending, divorce, and mismanagement of funds by trusted advisors.

But then there are the sports figures who manage to keep their accounts in the black, such as Shaquille O’Neal, Phillip Buchanon and Derek Jeter.

How do these athletes manage to accomplish what their peers have failed to do? For Shaquille O’Neal, it’s simply a matter of doing his homework before investing, appearing in movies and television programs, endorsing a variety of products, and maintaining his own fashion lines in major department stores such as Macy’s and J.C. Penny. Despite spending $1 million in less than an hour after signing his first professional contract, O’Neal’s ability to invest intelligently and stay out of major debt came from simply saving his money. As O’Neal himself advises, “Let’s just say you got $100, you break it in half—smart people put $50 away and don’t touch it. Now you still got $50 left. But the really smart people, the people that know that one day you’re never gonna play again, they save $75 …”

Former NFL star Phillip Buchanon learned his lesson about finances the hard way. After signing his contract, Buchanon’s mother demanded that he pay her $1 million for everything she’d done for him. Instead of giving her the money, Buchanon bought her a house, which ultimately caused him “financial strain.” In his book “New Money: Staying Rich,” Buchanon advises new millionaires to do the following:

  1. “Draw a line between wants and needs.” Setting limits is imperative to avoiding the common financial pitfalls, such as giving away money and buying family members expensive things.
  2. “Watch out for takers.” Similar to setting limits, Buchanon advises new professional athletes not to give money to people just because they think you have it to spare. Setting up boundaries is fundamental to ensuring that people don’t take advantage of you.
  3. Surround yourself with people you can trust. Differentiate between true pals and fair-weather friends, as the real ones will want to ensure your well-being.

Another example of an athlete who has secured his financial future is 20-years baseball veteran Derek Jeter. This Yankee utilized a method similar to O’Neal’s, using his personal brand to start a business. He partnered with Simon & Schuster to publish books, and become a brand development officer and partner at the company Luvo. Jeter’s publication and business, “The Players’ Tribute,” is a way for Jeter to combine his own interests and experiences while providing professional athletes with an outlet for the release of information about their own careers or personal lives. By diversifying his sources of income and creating a new publication that filled a gap in the reporting industry, Jeter was able to maintain his financial position following his retirement.

If it is starting to look like your professional sports career isn’t going to pan out, fear not—by taking the financial advice of these former athletes, you can still save money with the best of them. Be sure to stop by any office of The Milford Bank to get more advice about achieving your financial goals.

Buying a Condominium? Carefully Assess the Related Association Fees First

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by JoAnn Sabas

Are you like many customers of The Milford Bank who are looking to downsize from a large single-family home or start small with a first home? Then perhaps a condominium is right up your alley. If so, you may be becoming familiar with homeowner’s association agreements, which list mandatory fees for maintenance, capital improvements and other items for these housing units. These documents can be quite complex and detailed to ensure a uniform appearance among the many members’ homes.

What this means is that you should look beyond the price tag on your condo when determining whether or not you can afford the overall costs. Remember, some of the association fees may not be expenses you would necessarily incur as the owner of a single-family home. So, to avoid unforeseen costs that could put your financial stability at risk, let’s take a look at both typical inclusions and things to be wary of in these agreements.

To begin, standard homeowners association agreements generally charge maintenance fees for property aspects that are communal, such as landscapes, elevators, swimming pools, clubhouses, parking garages, fitness rooms, sidewalks, security gates, roofing and building exteriors. Depending on the neighborhood, the cost of living and the quality of the residences, these fees can range anywhere from $50 a year to several thousand dollars each month. Highly valued properties or locales excluded, you could generally expect something in the $200 to $400 range. In addition, a homeowner’s association may levy one-time fees, commonly referred to as “special assessments,” on members to cover major expenses, like the repair of a roof or a new HVAC system.

Conversely, here are some potential costs that could sour the deal for you:

  • Pre-existing conditions. Review your association’s rules before diving into the purchase of your condominium. You may find that you’ll be held responsible for a prior owner’s failure to maintain the unit. To avoid a nasty surprise upon moving in, confirm that your property is already in line with all association building, maintenance and appearance guidelines. After all, you don’t want to get started on the wrong foot with your residence’s governing body. Buying into an undisclosed problem will likely cause tension with board members or neighbors from the get-go. Also consider your own personal attitude when it comes to adhering to regulations about the type of flowers you can plant or colors you can paint. Some homeowners place great store on such freedoms; if this is you, be sure to read the fine print.
  • Fee assessment and funding. Does the association have catastrophe insurance, or will you be expected to pay out of pocket for damages caused by a flood, hurricane or tornado? How does the association determine fee increases in general? Can you obtain minutes from previous meetings? Is a record of dues and fees kept and maintained, and is it accessible? What do the association’s financial reserves look like? Consider that 70 percent of association-governed communities are underfunded, with most only being 52 percent funded. These are all questions to have answered before, not after, signing on the dotted line.
  • Amenities. You are going to be on the hook for amenities such as clubhouses, tennis courts and pools whether or not you use them.

The Milford Bank is in the business of ensuring the future financial health of our clients. Never hesitate to consult one of our financial professionals before making a home-buying decision.

The Milford Bank is an Equal Housing Lender.

Why You May Soon Be Seeing Yet Another New Chip in Your Credit Card

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by Patty Gallagher

When it comes to finances, concerns about privacy and security are not always top of mind for consumers performing a common action like making a purchase. And maybe they should be, since today’s customers frequently shop using plastic—most commonly a credit or debit card, which can be directly linked to their bank accounts. Trusting customers swipe their cards and type in their PIN numbers not realizing that their transactions, which contain their personal identification information, might not be secure.

Following the theft of millions of customers’ information in 2013, when a major data breach at Target affected 40 million customers who had used their credit or debit cards between Nov. 27 and Dec. 15, banks and credit card companies decided to increase the level of security for credit and debit card users by installing a chip into each card.

This chip, called a radio frequency identification (RFID) chip and installed in EMV cards, or cards that meet the international standard of chip security and technology, produces a one-time code for each transaction. The card number is not recorded, as was done in the past—just the transaction code—reducing the ability of thieves to obtain card information.

Yet, as with any security technology, hackers have found ways to undermine the RFID chips by studying the radio frequency used and the fluctuations in the chip’s power source, scanning and then rewriting the chips to reflect their own data.

So, now what? Well, according to an article published by Science Daily on Feb. 3, MIT and Texas Instruments researchers have developed a new RFID chip that is almost impossible to hack. This newly designed chip will circumvent hackers by providing a power source within the chip (to mitigate any fluctuations in power) and memory cells that retain the information the chip is processing at the time the chip begins to lose power. As the chip will remember the data it was processing, hackers will not be able to rewrite or reroute the chips to reflect their own data.

One downside of this newly developed secure RFID chip is that it will mean longer checkout times for the consumer, as the chip will have to power on and store the data being processed every time the chip is activated.

In an era filled with constant threats to credit and debit card security, these technological advancements couldn’t come at a better time. While the level of privacy expected by bank and credit card customers may not have changed, the lengths to which financial companies have to go to secure personal information has undoubtedly increased. As hackers become more proficient at stealing personal information, banks, including The Milford Bank, will continually seek new ways to protect their customers. As new technology is developed and rolled out, we’ll keep you posted!

What is the ROI of a College Degree?

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by Lynn Viesti Berube

Attention high school grads: are you heading off to college in the fall but not quite sure what you want to study?

You are not alone.

According to recent statistics, as many as 80 percent of college freshman walk onto campus for the first time without having chosen a major. Moreover, upwards of 50 percent of those who do choose a major early end up switching majors at some point—often two, three, or even four times!

This article will give you several of the most rewarding majors in terms of return on investment (ROI), in order to help guide you in a smart direction financially, and can also show you what you can do with each degree. After all, college is expensive—why not make the most of it!

Without further ado, here are five of the best majors to consider in terms of ROI:

  • Economics

Pardon the bad pun, but economics majors really are getting an “economic” college education. The ROI of an economics degree from a public university is 182 percent—the highest on this list!  In terms of actual jobs and salaries, the median income for a corporate economist is over $115,000, while the average salary for an investment operations manager is nearly $143,000. Economics majors may see sustained job growth in this sector going forward.

  • Information Technology

Few industries are growing at a faster rate than IT, and that trend should continue through at least the next decade as mobile networks continue to expand, and healthcare IT becomes more prevalent. IT majors possess a skill-set that can be utilized in many facets of business.  The ROI for IT majors can range anywhere from 126 percent for web application developers (a position with incredible demand), to 169 percent for IT managers.

  • Math

According to the Occupational Outlook Handbook, math majors may have a tremendous number of opportunities available to them once they graduate. Math occupations are expected to grow by 28 percent over the next decade, and any position that requires complex computation likely requires a math major. From accounts payable/receivable managers to actuaries, many math majors earn well over 100 percent ROI with their degree.

  • Engineering

The last two majors on this list comprise the fastest growing set of majors across college campuses. Over the last five years, science and engineering degrees grew by over 19 percent (compared to 9 percent among other majors). The world simply needs more engineers, whether it’s electrical engineers (median salary of $92,000), civil engineers ($82,000) or chemical engineers ($76,000).

  • Biology

While behavioral science has seen a staggering 89 percent growth over the last five years to pace the sciences discipline, biology is the much better long term investment for students. The average salary for a behavioral science major is just $34,000—well below jobs that are available to those with a biology degree—such as health and safety supervisor ($72,000), clinical research associate ($72,000), and laboratory manager ($85,000). All three of those positions offer an ROI in excess of 100 percent.

For more advice on how to get the most out of your college education, stop by any office of The Milford Bank!

 

So You Got a Tax Refund. Now What?

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By Celeste Lohrenz

Congratulations—you’ve successfully navigated your way through another tax season and  there’s a refund coming your way from the IRS. The only question now is what to do with the money. Sure, summer is coming and you could probably use a quick getaway to the beach. Or maybe you’ve had your eye on a brand new laptop. But if you want to get some extra value out of your refund, why not put that money to work instead?

The average combined state and federal tax refund this year is expected to be $2,900. And while you may not know someone who will argue the merits of taking a well-deserved vacation with that money, perhaps consider a different approach—one that keeps your long-term goals in sight.

With that in mind, here are a few ways you can get more out of your tax refund:

Catch up on outstanding debt: Maybe you’re behind on student loans or you charged a little too much to your credit card last month. Before you received your tax refund you may have been wondering how you were going to play catch up, and the answer has dropped right into your lap. Paying off outstanding debt will take some stress off your shoulders and improve your credit score. You’ll reap the benefits many times over down the road.

Save up for a few years: You may not be able to use a single refund for a large expense like a down payment on a house, but saving your refunds for several years might do the trick. For investments that are just a few years away, consider options like certificates of deposit, which have high interest rates and can be tailored specifically to meet your needs.

Save for retirement: If you can make a down payment on a house after just a few years of putting aside your tax refunds, think what you could save over the course of your working life. Put your refund back to work for you via an IRA or annuities contract, setting you up for a more comfortable retirement faster.

Make a charitable contribution: For community organizations, $2,900—or even a portion of that— could go a long way toward helping those in need. If you are financially stable, consider using your refund to make a charitable contribution. In many cases, it can be written off as a tax deduction for next year!

So if you’ve got a tax refund coming your way and aren’t quite sure what to do with it, stop by The Milford Bank and speak with one of our financial experts who can help you make an informed decision.

Three Ways to Bring Up Your Credit Score

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by Trish Townsend

Credit scores are a necessary part of making big financial decisions these days. Whether it’s buying a car, getting a mortgage, or even applying for some jobs, a high score shows you’re a responsible individual. If you’ve made some mistakes with your credit in the past, all is not lost. Here are three tips to help increase your score:

  1. Make payments on time. Don’t skip payments or send them in late. The best way to build or rebuild credit is to make on-time payments with your regular bills month after month. Make sure you pay one-time fees on time as well, such as for a doctor’s appointment, library overdue fee, or membership dues. These kinds of charges don’t normally appear on your credit report, but they will if you are late paying them and they end up going to a collection agency.
  2. Make consistent payments. Sending huge amounts to a creditor, then pulling back and barely making minimum payments or skipping a payment may hint at underlying financial issues and could suggest that you are not responsible with your money or your credit. Likewise, suddenly taking out cash advances or applying for short-term loans may set off alarm bells and lower your credit score. Set a monthly payment amount for debts you owe or credit cards, and pay that amount month in, month out over time. Concentrate on paying off one debt at a time if you have several by making one robust payment and paying the minimum on others, rather than throwing varying amounts of money at different accounts month to month. Once you pay off one, focus on consistently paying down the next. Never skip payments. Consistency and perseverance can pay off in the form of a higher credit rating.
  3. Keep credit card balances manageable. That high spending limit can be extremely tempting, especially if money is tight and you’re yearning after a big-ticket item, want to buy gifts or a few extras, or are planning a vacation. Resist the urge to just “charge it.” A good rule of thumb is to never let your credit card spending exceed 30 percent of your available balance. Remember, if your balance soars above that, it could take many years to pay off if you’re making minimum payments—and you’ll repay it many times over due to interest charges. Carrying too much credit card debt can also further damages your credit. Keeping your debt level low helps to show you are a responsible and trustworthy borrower.

If you are concerned about your credit rating or struggling to get out of debt or control spending, help is available. Speak to a Milford Bank representative for more advice about how to improve your credit score and manage your overall finances.

 

Go Mobile with The Milford Bank

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by Becky Tudor

The Milford Bank recently updated our mobile platform for customers by adding a mobile app for Apple, Android and Amazon tablets. The app is designed to make your banking experience more convenient by enabling you to manage your day-to-day finances from your own smart devices. Best of all, the app is free! (Although cell phone carrier charges may apply.) If you are not already enrolled, you can sign up here.

The app provides five basic services: deposits, balance inquiries, transaction history, bill and person-to-person (P2P) payments and funds transfers. Within Apple and Android devices, the app also provides ATM and office locations.

Customers are now able to access their bank accounts from wherever they are and whenever they want without having to worry about the security of their private information. The application was designed with your privacy in mind, and by making P2P payments you’ll be able to avoid points of sale which have been linked to instances of hacking like those perpetrated on card users at Target locations in 2014.

The mobile deposit feature is extremely convenient. Forget about deposit slips and envelopes –or even bothering to leave your desk. After endorsing your check, simply pick up your tablet, take a photo of the front and back of your check, open your app and use your photo to make an immediate deposit.

Plus, now you can check your deposits on the fly to confirm the time and date when the funds are made available in your account. While you’re in the app, feel free to check your balances and any other transactions that have occurred. All your accounts are visible through the app.

Fund transfers are easy too. You simply click on the “transfers” tab, and it opens the screen to a page that is designed for easy navigation and convenience. After choosing the accounts you want to transfer money to and from and the amount you would like to transfer, click the “transfer now” button, and your funds are on their way.

Another benefit is that you can pay your bills directly from the app. Once you’ve set up online automatic or one-time payments online, you can alter the amount of the payment(s) or cancel them altogether hassle-free and on the move. These electronic payments will allow for timely bill payments without the cost of stamps or physical handling.

Finally, the P2P feature can save you the hassle of writing a check to a friend or family member and then wondering when the person will deposit the check. A notification is sent to the recipient of the check, and then the recipient accepts the notification. This allows for information about your accounts to be up-to-date and accurate.

We understand that our customers today are constantly on the move and need the convenience of bringing us with them wherever that may be. The new features of our mobile app are designed to do just that. If you’d like more information on using the Milford Bank mobile app, visit our website here or stop in at any of our branch locations to speak with a representative today.

Make the Most (Think $$$) of Your Spring Cleaning This Year

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by Sindy Berkowitz

Have the winter months left your home feeling cluttered? What’s worse, is your living space fuller than your bank account? If both conditions apply, take a hard look at what is collecting dust around the house—perhaps it could help you financially. With Spring (and being able to open the windows again) right around the corner, there has never been a better time to get your home—and finances—in proper order.

According to a year-end 2015 Money magazine article, more than half of all Americans have set a money-related New Year’s resolution. Whether your goal is to pay down debt, put more money aside for the future or eliminate wasteful spending habits, The Milford Bank is here to enable your success. Here are some helpful suggestions to turn big household items just taking up space back into assets.

Sell Your Used Items Online. To rid yourself of unwanted property online, you may want to consider eBay or CraigsList. eBay offers both buyer and seller protection while taking a cut of your profits as a seller (and charging a store fee). CraigsList has no direct fees, but sellers must assume price negotiations and the risk of being approached by unqualified buyers. While Craigslist may be wonderful for that one-of-a-kind upholstered armchair you never sit in, your Pez® or baseball card collection likely would not sell for as much as it would on eBay. While other online marketplaces exist for used goods, you won’t reach the same number of prospective buyers on niche sites unless you have a very specific item or collectible to sell.

Have a garage sale. While garage sales have long been the traditional venue for unloading unwanted household items, making them a down-home favorite, they are not usually terribly profitable. They are also work-intensive: Preparation (e.g., sorting, pricing and advertising), being present at the sale and any associated clean-up of leftover goods all represent large time commitments. Another drawback? To make any money at all, be prepared to haggle with patrons over the price of every item. Before considering for this option, be forewarned that the average haul from a garage sale is only $300.

Donate for a tax write-off. Before dropping any unwanted belongings off at your local charity, document every item with clear, well-lit photos as a testament to their quality. The higher the value you can attach to donated items, the more you will be able to write off when tax season rolls around. Make sure you identify items explicitly to guarantee that their value isn’t called into question. For example, Goodwill’s Valuation Guide for donors lists the value of a donated coffee maker at $4-$15, meaning this is the amount the government will allow you to write off as a deduction for a “coffee maker.”

All of these options can produce cash in hand. So don’t let your valuable unused household items pile up like cobwebs in the corner. Act today! Your bank account will thank you.