Savings Strategies for Milford, Stratford Residents Nearing 30

by Cortney Meng

Milford and Stratford residents: do you have a 30th birthday coming up? If so, take a moment to reflect on where you were and what you were doing just 10 years ago. A lot has changed, no? In fact, your twenties can be one of the most transformative decades of your life. By the time you reach 30, you may be entrenched in a career, thinking about getting married, buying a home or even having children. Maybe you’ve already done all of the above!

As such, it is important that you reevaluate your savings strategy to reflect your changing lifestyle as you approach your 30th birthday.

If you’re looking to overhaul your savings strategy, here are a few good places to start.

Start a retirement account: If you haven’t started saving for retirement, you’re not alone. In fact, 57 percent of millennials have yet to start saving for retirement. But the fact remains that the sooner you start, the easier time you’ll have reaching your goals. If your company offers a 401(k), start taking advantage of the benefit if you are financially able to do so. You might also want to diversify by establishing an IRA or investing in a mutual fund too.

Buy life insurance: At 20, you might not have had anyone depending on you. But the game often changes at 30. You might be responsible for your business, your partner, a child, a mortgage or other loans. A big part of that responsibility is making sure your loved ones are taken care of if the worst should happen to you. At 30, you’re still likely young and healthy enough to qualify for an inexpensive life insurance policy. Some forms of insurance, like permanent life and annuities, double as investment vehicles, making them an important part of your savings strategy as you enter your 30’s.

Improve your credit score: A great credit score will open up many doors to you in your 30’s. You’ll be able to secure a larger line of credit with lower interest rates if you can demonstrate that you’ve been historically responsible with your spending. Speak with a credit agency or financial expert to see how you might be able to boost your score, so that you’ll be in a position of strength when you’re ready for the big financial decisions that many of us make in our 30’s.

Take a calculated risk: It is generally considered a best practice to be conservative with your savings when you’re young. Many years of safe, steady earnings can leave you poised to have a great retirement in a few decades. But another benefit of youth is that you have more time to bounce back if an investment doesn’t pan out. Consider taking a small, discretionary sum of money and check out a company or product that you’re passionate about. It might not pan out, but you never know—you might invest in the next Amazon or Apple, too.

If you’re ready to take a serious look at your savings strategy as you approach your 30’s, stop by any office of The Milford Bank branch near you to speak with an experienced financial advisor today. You can also learn more by checking out our Online Learning Center.

Survey Shows Millennials Prioritizing Coffee Over Retirement

By Matt Kelly

Hey Millennials, how do you take your coffee? Do you pick up a simple $1.00 cup from the gas station during your morning commute? Or are you all about splurging on a $5.00 specialty drink at Starbucks to give you an afternoon pick-me-up? Whether you’re adding cream, sugar or a shot of espresso, there is one trait that is shared by Millennial coffee drinkers: they’re more focused on what’s in their mugs than what’s in their retirement accounts.

According to a recent poll conducted by SurveyMonkey and investing app Acorns, 41 percent of Millennials currently spend more on their morning cup of coffee over the course of the year than they put into retirement savings.

The survey, which polled more than 1,900 18-35 year olds, also found that 41 percent of Millennials believe they will not be financially secure enough to retire until they’re older than 65. While you can’t lay the blame squarely on coffee consumption, these statistics do reveal a frightening pattern of financial neglect.

Of course, there’s nothing wrong with having a cup of coffee to start your day. But if Millennials want to enjoy comfortable retirements, at some point they will have to look a little deeper about their spending and saving decisions.

Consider, for instance, that brewing your coffee at home can save you tons of money every day. If you buy a large container of inexpensive grounds, your home brew might run you less than 10 cents per cup. Even if you prefer K-cups, many brands offer deals that won’t add up to more than 50 cents per cup.

If Millennials were to get serious about cutting into their coffee budgets, they’d be able to start seeing a positive effect on their savings pretty quickly.

An individual switching from $5 per cup of coffee to 10 cents per cup will save $1,788.50 over the course of a year. Even after one month, you’d have an extra $150 in your pocket—enough to cover utilities and grocery bills!

But retirement accounts are long-term investments. So what would your coffee savings look like by the time you reach retirement age? Using the previous example, over the course of 30 years, would amount to $53,655—a figure that sounds like a competitive yearly salary for many. By changing how they think about their coffee drinking habits, Millennials could potentially save enough to retire a full year earlier than they believed possible!

When it comes to retirement planning, it is ideal to begin saving as early as you can. But circumstances aren’t always ideal. Fortunately, it is never too late to get on a path towards financial freedom. By making minor adjustments to your day-to-day spending, you can begin funding your retirement with the money you’ve already got in your pocket.

To maximize the value of your savings, stop by The Milford Bank and speak to one of our experienced financial advisors, or check out our Online Learning Center. We offer a variety of financial services and investment vehicles, ranging from traditional savings accounts, to certificates of deposit, IRAs, money markets and more. Start planning today so you’ll be able to enjoy your daily cup of coffee long into retirement.

What Milford, Stratford Homeowners Need To Know About Home Equity Loans

by Paul Mulligan

Even though it might not always feel like it, your home is likely one of the greatest financial assets at your disposal. Of course there is always going to be something to fix. Making your monthly mortgage payments might cause a little anxiety from time to time. But all the energy and money that you invest in your home is helping you build equity that can help you in a time of need.

Home equity loans are a type of loan which allows homeowners to leverage the equity they’ve built over the years as collateral. These loans can be used for a variety of reasons—repairs, home improvements, paying for school, buying a car, another property and even consolidating debt. In an ideal world, you’d be able to address these needs from your own savings when the time came. But this isn’t always the reality. If you’re a homeowner and you’ve got a large expense coming in the near future, a home equity loan may be a viable option.

But before you take action, it is important to learn as much as you can about home equity loans. Read on to see some of the most frequently asked questions that homeowners have regarding home equity loans.

How much can I borrow?

The amount that you can borrow for a home equity loan varies by location and bank. At The Milford Bank, we will provide loans up to $500,000. However, each loan is considered on a case by case basis. Lenders typically will consider your credit history, available equity in your home, your income, and your assets and liabilities.

What are the benefits of a home equity loan?

Home equity loans provide a number of benefits. There are no closing costs associated with procuring them. In addition, home equity loans offer competitive interest rates that can be beneficial for paying down debt you may currently owe at a higher rate. The interest that you pay may even be tax deductible, but you should consult a tax advisor to make that determination.

How long does the loan process take?

Every homeowner has a different set of circumstances. As such, there is no established timetable for how long the process may take. However, once your loan has been approved, many homeowners are able to utilize the funds within a week.

Is there a minimum equity requirement to qualify?

In order to qualify for a home equity loan, you will need to meet some basic requirements. The minimum loan at The Milford Bank is $10,000 for a five-year term. You can review the specific interest rates, terms and repayment tables by clicking here.

Whether you need to replace a furnace or send a child to school, you may be able to utilize the equity you’ve built in your home to meet the ever-changing needs of you and your family. Stop by any office of  The Milford Bank to speak with one of our representatives—and be sure to check out our Learning Center here for more information.

Five New Year’s Resolutions to Improve Your Finances in 2017

by Lynn Viesti Berube

New Year’s Eve is about much more than watching the ball drop in Times Square or popping open a bottle of champagne. It’s about reflecting on the past and looking ahead to the future. This time of reflection leads millions of Americans every year to make resolutions about how they can improve themselves. If you’re looking for a way to improve yourself in 2017, why not take a look at your finances? Here are five resolutions you can make that will drastically improve your finances and quality of life in the year to come.

Focus on your physical health: Your physical health and your financial health are inextricably linked. The CDC reports that 86 percent of our nation’s healthcare costs are attributed to chronic diseases. Many, like diabetes, heart disease and obesity, can be prevented with a good diet and plenty of exercise.

Cut an unnecessary expense: The cup of coffee you pick up at Dunkin Donuts every morning during your ride to work might seem like an insignificant expense at the register. But spending $3 on a cup of coffee every day over the course of the year ends up costing you $1095. Even if you’re not a coffee drinker, there’s probably something comparable in your own life. If so, is there a way you can do it cheaper, or cut it out of your budget entirely?

Diversify your nest egg: Diversifying your savings helps you maximize growth and protect your nest egg at the same time. While not all investment vehicles may suit your needs, sit down with a financial strategist and figure out how to expand your portfolio effectively. Certificates of deposit, IRAs and money market funds are just a few options offered by Milford Bank. You don’t need to try everything all at once, but if you add one new dimension to your portfolio every year, you’ll set yourself up for a very comfortable retirement in no time.

Tackle a home improvement project: Have you been putting off a renovation for years? Make 2017 the year that you finally make it happen. Home improvements can increase your property value, making them great investments—especially if you’re thinking about selling your home in the near future. Speak to a Milford Bank representative about affordable and flexible home equity or home improvement loans to get started.

Procure life insurance to protect your family: There are many families in this country without adequate life insurance coverage. Many more have no life insurance at all. Dwelling on our mortality may not be a popular pastime, and that may be why many individuals are misinformed about the importance of life insurance. Make 2017 the year that you finally have the uncomfortable conversation so that you and your loved ones can have peace of mind for every New Year to come.

To learn more about how you can make the most out of your New Year’s resolutions, check out our online Learning Center here or come by a Milford Bank branch location and speak with one of our representatives today!

 

Savings Strategies for Milford and Stratford Young Adults

by Cortney Meng

If you just recently turned 18, a world of new possibilities has just opened up to you as a legal adult. You can vote, get a full-time job, rent an apartment, purchase motor vehicles and even real estate. Many of you will soon be paying your way through college as well. The next few years will be a formative time during which you develop many of the habits—good and bad—that will inform your decision-making and long-term financial outcome. To get started on the right foot, here are some useful tips to consider as a young adult.

Research potential career paths: Whether you’re headed to college or entering the job market, you’re likely spending a lot of your time thinking about what kind of work you want to do. Check out the 25 top paying jobs in 2016 here. Many fields offer lucrative positions for individuals with and without college degrees. But the job market is always changing, so it’s important to do your research and find a career you’ll enjoy that also has a bright future.

Set periodic financial benchmarks: Your needs and wants will change rapidly over the next few years. It’s important to set benchmarks so that your savings strategy can be tailored to hit them all. Whether you’re saving to buy a pair of skis, pay for college, buy a car or put a down payment on a home, you have to start somewhere. Pinpoint how much you’ll need every week, month and year to hit your targets and stay committed.

Start a retirement fund: The sooner you open a retirement account, the more lucrative it will be in the long run. While your return on investment will vary depending on how your savings are invested, it is a general rule that the longer your investments have to mature, the more valuable they will be. Many people don’t start thinking about retirement until it’s too late. Get a jump now and save yourself lots of stress down the road.

Establish a credit history: You’ll need a good credit score to enjoy many of the benefits of becoming a legal adult. Getting a credit card with a small balance may be one possibility, but you’ll have to make sure to make all your payments each month and keep your balance below 50 percent. You can also start building credit by making timely monthly payments on other loans or bills you may have.

Purchase whole life insurance: Age and health are two of the most significant factors when determining what your insurance premiums will cost. If you purchase a whole life insurance policy now while you’re young and healthy, that rate will be locked in permanently. In addition, whole life insurance policies have a savings element that will build equity as you make payments. While it is not intended as an investment vehicle, it is an added bonus that is particularly valuable if you start a policy when you’re young.

To learn more about saving as a young adult, check out our online Learning Center here or speak with a Milford Bank representative at a location near you!

Three Ways to Stop Oil Prices From Burning Your Savings

by Patty Gallagher

Just a few weeks ago, unseasonably warm weather and atypically low oil prices had homeowners thinking they might get off the hook with more affordable heating bills this winter. But oil prices are climbing again—just as an Arctic cold front made its way across the country to remind us what a real New England winter feels like.

If you get anxious every time you crank up the thermostat because you’re worried about the cost of heating your home, you’re not alone. Nearly 70 percent of Americans have less than $1,000 in their savings accounts—making the prospect of overspending on heating their home a very real struggle.

But there are ways to curb the costs of heating your home. Follow these helpful tips so you can burn oil without burning up your savings at the same time!

Prepay off peak season: Homeowners generally burn significantly less fuel during the summer months. Because of the decreased demand, many oil companies will offer lower rates in order to generate revenue. In many cases, you might be able to prepay and lock in your oil prices for a fraction of what you’re likely to spend if you fill up during the winter. While it may be too late to take advantage this year, speak with your provider during the summer and you may be able to save yourself hundreds of dollars at this time next year.

Invest in a smart thermostat: Once your oil tank is filled, it’s now up to you to heat your home in the most responsible and efficient manner possible. If you forget to turn down the thermostat on an unseasonably warm day, you’re throwing your money away. Investing in a smart thermostat can help you offset the potential for waste. You’ll be able to remotely manage your thermostat settings and control temperatures in different areas of your home. Many of the popular models today can be purchased for less than $200 and may help you save thousands over the years, making smart thermostats one of the easiest and best investments you can make in your home.

Service your furnace: Conducting routine maintenance on your furnace is essential to make sure that it operates at peak efficiency. Some tasks you will likely be able to handle yourself—cleaning your filter and ducts and wrapping your furnace with insulation, for example. Others may require the care of a specialist—checking for leaks and cleaning the furnace itself. It is recommended that you should service your furnace on a yearly basis, so make sure to schedule it as soon as possible to get the most out of your heating system this winter.

To learn about more ways to save your family money, be sure to check out our blog regularly or visit our Online Learning Center here.

Five Winter Projects for Under $250

By Lynn Viesti Berube

According to the American Research Group, the average person will spend $929 buying gifts for everyone on their holiday shopping list this year. This added expense can make planning your budget during the winter months particularly challenging—especially considering the fact that you’ll incur other unique seasonal expenses as well. In order to make sure you can enjoy the holidays without neglecting your other responsibilities, consider the following winter projects you can complete for under $250.

Conduct an energy audit: For just $99, you can have experts come to your home to assess your energy efficiency. Auditors will check for inefficient lighting, poor insulation and other attributes that may lead to higher utility costs. Auditors will also provide services to address inefficiencies, making a home energy audit one of most impactful winter projects you can tackle.

Winterize your car: It is important to take extra precautions with your vehicle during the winter months. You can get an inexpensive set of winter tires for less than $250. You may also want to invest in a set of wiper blades suited for ice removal. Putting together a winter safety kit is also imperative in the event that you become stranded in the cold. Flashlights, batteries, food and blankets are items you may want to include that you may even have around the house already.

Insulate your mechanicals: Much of the energy you consume during the winter goes through your furnace or hot water heater. Did you know that much of the heat that your mechanicals generate is lost because your basement is cold? You can pick up special insulation for as little as $10 at your local supply store and help to minimize your energy bills during the winter months.

DIY recreation: Making your own fun can be challenging during the winter too. Skiing is expensive and many of the other recreations you enjoy may not be possible in the chilly weather. If you’re looking for a creative and cost-effective way to enjoy the weather, why not make snowshoes for you and your family? You can make snowshoes with items you likely already have around the house and will help you get exercise while enjoying the beauty of Connecticut winters. Click here to see for yourself.

Install a smart thermostat: Installing a smart thermostat will help you manage your energy consumption to keep your monthly bills low during the winter. But it will also enable you to make your home more comfortable too. You can remotely turn up the thermostat before your commute home from work to make sure that it’s cozy by the time you arrive. Popular brands like Nest are available for $250, with lesser known models even less costly still.

To learn more ways to save this winter, check out Milford Bank’s Online Learning Center here.

Five New Year’s Resolutions to Improve Your Finances in 2017

by Pam Reiss

New Year’s Eve is about much more than watching the ball drop in Times Square or popping open a bottle of champagne. It’s about reflecting on the past and looking ahead to the future. This time of reflection leads millions of Americans every year to make resolutions about how they can improve themselves. If you’re looking for a way to improve yourself in 2017, why not take a look at your finances? Here are five resolutions you can make that can drastically improve your finances and quality of life in the year to come.

Focus on your physical health: Your physical health and your financial health are inextricably linked. The CDC reports that 86 percent of our nation’s healthcare costs are attributed to chronic diseases. Many, like diabetes, heart disease and obesity, can be prevented with a good diet and plenty of exercise.

Cut an unnecessary expense: The cup of coffee you pick up at Dunkin Donuts every morning during your ride to work might seem like an insignificant expense at the register. But spending $3 on a cup of coffee every day over the course of the year ends up costing you $1095. Even if you’re not a coffee drinker, there’s probably something comparable in your own life. If so, is there a way you can do it cheaper, or cut it out of your budget entirely?

Diversify your nest egg: Diversifying your savings helps you maximize growth and protect your nest egg at the same time. While not all investment vehicles may suit your needs, sit down with a financial professional and figure out how to expand your portfolio effectively. Certificates of deposit, IRAs and money market funds are just a few options offered by The Milford Bank. You don’t need to try everything all at once, but if you add one new dimension to your portfolio every year, you can set yourself up for a very comfortable retirement in no time.

Tackle a home improvement project: Have you been putting off a renovation for years? Make 2017 the year that you finally make it happen. Home improvements can increase your property value, making them great investments—especially if you’re thinking about selling your home in the near future. For larger project, speak to a Milford Bank representative about affordable and flexible home equity or home improvement loans to get started.

Procure life insurance to protect your family: There are many families in this country without adequate life insurance coverage. Many more have no life insurance at all. Dwelling on our mortality may not be a popular pastime, and that may be why many individuals are misinformed about the importance of life insurance. Make 2017 the year that you finally have the uncomfortable conversation so that you and your loved ones can have peace of mind for every New Year to come.

To learn more about how you can make the most out of your New Year’s resolutions, check out our online Learning Center here or stop by any location of The Milford Bank and speak with one of our representatives today!

The Milford Bank is an Equal Housing Lender. 

Savings Tips to Keep Guitar Players from Singing the Blues

by Pete Deleo

In the United States, the birthplace of rock’n’roll, there are nearly 2.5 million guitars sold every year.  And while the average price per instrument is higher than a typical holiday present—$433—guitars can actually be one of the most fiscally responsible gifts that you can give.

Once you’ve made the initial purchase, the musician in your life can enjoy a guitar nonstop with few additional expenses. Unlike more physical pastimes, they’ll be able to continue playing their guitar at any age. Guitar players can provide free entertainment, or even turn their hobby into a side job and make a little extra money too!

But purchasing a guitar should still be considered an investment. And just like any other investment, you’ve got to do your research and learn how to get the most bang for your buck. Follow these tips and you’ll be able to help keep the guitar player in your family from becoming another starving artist singing the blues!

Shopping for a first-time guitar player: If your 16-year old just got their driver’s license you wouldn’t purchase them a Rolls Royce. So why would you spend lots of money on a guitar? There are so many different types of guitars on the market today that finding the one that feels right can take some time. Check your favorite music store for guitars for sale on consignment, look online, or even look for guitars available for rent. That way, you can let your budding musician explore their newfound passion without breaking the bank.

Maintaining your instrument: Once you purchase your guitar you won’t rack up expenses as long as you maintain your instrument properly. A properly maintained guitar can last decades without anything other than the occasional new pair of strings. But if you don’t maintain your instrument, it can fall into disrepair, requiring work that can be more expensive than the guitar cost in the first place! Keep your guitar away from extreme hot or cold weather to avoid warping or cracking. When not in use, loosen the strings so that they put less pressure on the neck of the guitar, which will also help to curtail warping.

Consolidate gear for electric guitarists: Acoustic guitars require nothing more than a few fingers to strum their strings. Electric guitars, on the other hand, will be a little more expensive. You’ll need to purchase amplifiers, PA systems and cords—at the least. If you’re shopping for an electric aficionado, you can help save some extra money by purchasing all-in-one gear. For instance, some acoustic guitars come with electric pick-ups so it’s as if you have two guitars in one. There are also amplifiers that come equipped with PA systems so that you won’t have to purchase both separately.

Follow these tips and by this time next year, you may even have someone to play you some of your favorite holiday tunes! To see more great ways to save money in your daily life, check out Milford Bank’s blog here, our online Learning Center, or stop by a office location near you!

There’s No Such Thing As A Free Lunch (break)

by Nila Pathammavong

The saying goes that there’s no such thing as a free lunch. According to a recent report the common phrase is now more appropriate than ever. A pricing analysis conducted by NDP Group found that in many restaurant segments, prices have risen 5 percent in the last 12 months. At the same time, grocery prices have remained relatively stable. As a result, restaurant lunchtime traffic is down 4 percent and the average customer bill is down five percent—exactly the same amount as the average restaurant price hike.

According to NPD analyst Bonnie Riggs, “Price value, especially at lunch, is out of whack. Consumers have cut back because they can’t afford to go out for lunch every day.”

Nonetheless, you shouldn’t be cutting the meal from your diet entirely. So how can you take the bite out of your lunch budget without dealing with hunger pangs throughout the afternoon? Here are several ways that workers can deal with the rising price of lunches.

Bring your lunch from home. Packing your own lunch is a very simple solution to deal with the high cost of restaurant prices. The same sandwich you pick up at Subway will cost a fraction of the price if you make it at home. If you never seem to have enough time to make your lunch in the morning, consider doubling the recipe when you make a dinner the night before. If you have a short commute, you may even be able to stop home to prepare your lunch without taking too much time away from your work.

Plan your lunch around special offers. If you can’t find the time to prepare your own meals, at least stay alert for special discounts at the restaurants surrounding your workplace. There are often coupons in local newspapers or online, as well as in-store offers that may bring a meal that is typically too expensive back into your price range.

Eat family-style with your colleagues. Instead of footing a bill by yourself, bring a few colleagues out for lunch with you, order a few dishes that are easy to share and split the cost between yourselves. Not only will you all be able save a few dollars, but you’ll be able to sample a better variety of fare and get to know your coworkers better at the same time!

Graze throughout the day. The earliest humans were nomadic hunters and gatherers and would graze over the course of a day instead of sitting down for three square meals. You can get back to your ancestral roots by selecting a nutritious and filling snack, such as trail mix, and enjoying a few handfuls over the course of the day.

If the cost of your lunch break is leaving you sick to your stomach, try these cost-effective alternatives to eating out. For more ways to save money in your day to day life check out the Milford Bank blog here.