Don’t Let Emergencies Sink You into Debt

By Celeste Lohrenz

Emergencies are, by definition, unexpected and unpredictable.  They can also have significant financial ramifications – either due to high costs or loss of revenue or both.  By nature, emergencies aren’t easy to deal with and most can’t be avoided, but there are ways to make them more manageable, starting with making sure you have an emergency fund.  The question you should ask yourself is, “If I lose my job, if my roof starts leaking, or if my car needs a new transmission, am I financially prepared am I to deal with it?”

Why start an emergency fund?

An emergency savings fund or account could be the difference between being able to manage unexpected expenses and falling into deep debt.  If a significant expense comes up, knowing you have the funds to support at least some of it can keep you from having to worry about your monthly fixed expenses without taking out loans or maxing out credit cards.

How much do you need?

How much to save is really a question of several variables, including income, monthly fixed costs, lifestyle and other variable expenses, size of family, and certainly how much can you actually afford to save each month.  A common goal is to have 3-6 months’ worth of expenses in an emergency fund, but even as little as $500 can cover many unexpected expenses, like a leaky bathroom pipe or bad brakes on your car.

Start by setting an attainable goal and, once you’ve reached that target, you may find you want to increase the size of your emergency fund, so you can set a second target.  When your emergency fund has reached a point with which you’re comfortable, you may have found it easy to live with the reduction in spending.  In that case, you can use the same philosophy to start a new account to start saving for a larger planned expense, such as a vacation, wedding, mortgage down payment, college  tuition, etc.

How to grow the fund?

There are many ways to find money to add to your savings, from cutting expenses to finding supplemental income sources.  One place to start is the change you get when paying with cash.  The coins, $1 and even $5 bills can add up quickly if you put it into a jar at home every day, then deposit it each week or month.  But, you have to have the willpower to avoid dipping into it for an iced latte or other items.

One of the most effective ways to save, though, is using automatic deposits.  We can help you set up automatic monthly transfers into your emergency fund, so you don’t even have to think about it.  Saving apps are another very useful tool that help automate your emergency fund growth.  The Milford Bank has partnered with Plinqit to help customers not only save, but earn money in the process as they reach their goals.

Where to put the money

The key is to make sure you have access to your emergency fund should you need it, but you don’t want it to be so convenient that it becomes a daily temptation.  Interest-earning savings accounts are a good option, because they can be accessed at any time without penalty, but you should keep your emergency fund in a separate account from your regular savings to avoid using it.  Your bank’s specialists can help you determine exactly what kind of account is most suitable for your individual needs.

When should you access this account?

The point of an emergency fund is to have it available if unexpected expenses come up that you can’t handle with your monthly budget.  if you’re faced with an expense you weren’t expecting, consider whether it’s actually an emergency – something you absolutely can’t avoid doing – and whether you may be able to cover the costs with your monthly budget, even if you have to adjust it slightly.  By using automated tools to fund the account, you will be less likely to spend it until an emergency arises – out of sight, out of mind, as they say.  But remember, emergencies can happen at any time, so if you do need to dip into your fund to cover an expense, you should start saving again right away to build it up again.  You never know when the next emergency is going to happen.

Plinqit Makes Saving as Easy as Using an App

By Tina Mason,

Customer Solutions Specialist,

Post Road East Office

Saving is not always easy. Just ask the 58% of Americans who have less than $1,000 saved (73% have less than $5,000 in savings). Financial experts suggest having an emergency fund of 6-12 months of expenses, in addition to saving for retirement, which should be around 15% of your annual income. Of course, that doesn’t factor in saving for additional large expenses, like vacations, college tuition, home improvement projects, among others.

So, when you put it all together, saving close to 20% of your income can help provide a comfortable level of financial security. But, according to another survey, 69% of Americans set aside 10% or less, and only 15% are saving more than 15%.

There are several reasons behind the lack of savings, including expenses being too high, income levels not being high enough, and debt – as well as simply not having gotten to it. It’s very possible that some expenses can be reduced by doing a spending analysis, which would help those with high expenses or lower incomes. But, the simple fact is it’s just not easy to save.

There’s good news, though. We’re living in a tech-driven world, and innovative companies are creating apps and services to solve just about every problem, including fintechs and the saving dilemma.

The Milford Bank has partnered with one of those fintechs, Plinqit, to help customers save. The key is that it’s simple to set up and simple to use. Customers simply set up a Plinqit account, connect it to their checking account, set up to five savings goals and a schedule for depositing small amounts into their Plinqit accounts.

Because we want to help customers succeed, The Milford Bank and Plinqit incentivize users to become more financially literate and to follow through on their savings goals. By watching educational and financial videos through the app, users can earn savings rewards that are added to their Plinqit accounts. Users can also be rewarded for successfully reaching their savings goals – but there are penalties for withdrawing their funds early.

How much users are able to save is completely up to them. Each user has to set reasonable savings goals based on their own budgets and expenses. The Milford Bank and Plinqit are here to help keep those savings goals on track. The app works; Plinqit users have saved more than half-a-million dollars since the app was launched.

If you’re serious about saving money for any reason, The Milford Bank is here to help. Anyone can set up an account on their own and start saving, but if you want advice on your personal finance needs, please visit one of our offices and speak to one of our financial specialists.

Making the Most of Your Paycheck in 2020

By Lynda Mason,

Group Manager, Post Road East Office; Woodmont Office

Now that we’ve started a new year – a new decade, in fact – many of you may have made New Year’s Resolutions to be more financially responsible, to spend a little less and save a little more.  It’s a great approach to your finances, and it’s never a bad idea to take a close look at how you’re spending your income.  But, if you didn’t make a resolution, that’s OK – only 8% of resolutions are kept, and 80% fail within the first month.

So, if you did set one and want to make sure you are able to keep it, or if you simply want to take a fresh approach to your personal finances this year, there’s no time like the present.  The key is having specific, attainable goals and a strategy for success that is both challenging and feasible.  With that in mind, here are a few tips that will help you adjust your strategy for saving this year – and keep your New Year’s personal finance resolution if you made one.

Define your goals

The first step when you’re looking to make financial changes is to know what you’re hoping to achieve.  It’s hard to evaluate how well you’re doing if you simply say, “I am going to be more responsible with spending.”  There are many reasons to reduce spending and increase savings – you need to identify your objectives in order to project how much you need to reduce your spending.  A few examples include:

  • Pay off credit card debt or mortgages
  • Build retirement savings
  • Start a college fund
  • Save for down payment on a home or car
  • Start a rainy day/emergency fund
  • Plan for other major expenses (remodel, wedding, etc.)

Knowing what you are saving for provides motivation for sticking to your budget.  Once you have decided what your goals are, you can set target amounts to start budgeting.  You can always adjust these, but having a target in mind will help you understand what is truly attainable and what is likely to cause you to fail.  In addition, if you are saving for known upcoming expenses, you can figure out exactly how much you need to save to reach the required amount by your deadline.

Understand your spending

The only way to evaluate how well – or poorly – you are handling your finances is to understand how you’re spending your income, what you’re spending it on, and how much you are saving.  Track all your spending for a month to understand exactly where you paycheck is going – and if you are spending more than you earn.

Set a budget

Once you know how you have been spending your money, you can define a budget based on your spending habits and savings targets.  At a bare minimum, you should know your fixed expenses (mortgage or rent, car payment, utility bill, cell phone, etc.), along with how much you want to put towards your new goals.  This will allow you to define how much discretionary spending power you have for eating out, going to movies, etc.  Remember, you can always be flexible within your monthly budgets.  For instance, if you want to see two new movies, but have only allocated for one, you might look to spend less on dinners out for balance.

Eliminate bad habits

Take a look at your monthly activity and identify the things you do that could be costing you more than necessary.  Are you paying full price for clothing?  Are you eating out several times a week?  Are you buying expensive Pay-per-View events every month?  Are often late with your bill payments?  There are many poor financial habits that could be costing you more than you realize.  Take a look at these and look for ways to eliminate or at least reduce them.

Elevate good habits

There are many ways to reduce spending simply by using the tools available to you – most of them on your mobile devices, which you take everywhere.  Loyalty programs offer member savings and allow you to collect points towards various purchases.  Find retailers you like and try to stick with them.  Don’t underestimate the power of coupons and sales – there’s no reason to spend more on something than you need to.  This may also mean learning to be flexible with what you buy and when. One of the many Online Services the Milford Bank provides is the ability to create bill reminders to allow you to set preferences for receiving e-mail notifications reminding you that your bill has arrived and/or your bill needs to be paid. This tool enables you to control the entire bill payment life cycle. The Bank has also recently partnered up with Plinqit, a simple savings tool that allows you to set up and customize your savings goal and have Plinqit help you set aside a small amount of money regularly, on a schedule you choose. You can also earn money with Plinqit by watching videos and reading educational articles to learn more about money and saving.

There’s no simple answer for saving money.  It all comes down to what your priorities are.  As you evaluate your own priorities, if you need advice on how to save or where to put the money you’re saving, consult your bank’s financial advisors, who can help determine the best kids of accounts for  your specific needs.  Then, it’s all up to you.

Identity Theft vs. Identity Fraud: What You Need to Know

By Tyler Haskell

Identity theft and identity fraud are becoming all too common today, with the economic impact to banks, businesses, and customers reaching well into the billions annually. In 2018, roughly 14.4 million American adults were victims of identity fraud, with losses totaling $14.7 billion. The two terms – identity theft and identity fraud – are closely related, but aren’t the same, despite often being used interchangeably.

Identity Theft
Identity theft takes place when criminals acquire personal data, which is then used for subsequent illegal activities, including identity fraud and the sale of information to others. This information can include any number of PII (Personally Identifiable Information) data, such as social security numbers, credit card numbers, bank accounts, driver’s license numbers, passwords, and more.

There are many ways criminals can steal personal data, from advanced hacking techniques to intricate scams to burglary and dumpster searches. Corporate hacking instances have increased over the past years, with many high-profile breaches being featured in mainstream news, from retail stores to healthcare organizations. The breaches have resulted in millions of customers’ data being stolen. Mobile devices are also a high-value target, simply because of the incredible amount of data stored on them.

Identity Fraud
Identity Fraud happens when criminals use stolen personal data for illegitimate transactions. These may include fraudulent purchases, opening new bank accounts or credit cards, initiating loans, and more.

Identity fraud impacts not only the victims of identity theft, but also the other organizations that become part of the fraudulent activity: merchants, banks, credit card companies, etc. The truth is, everyone is impacted in some way because businesses build the cost of fraud into their pricing structures to help cover their losses.

Protecting Yourself
Recovering from identity fraud is a daunting task that can take 200-300 hours of time and cost $1,000 or more. What’s more, these accounts can appear on credit reports for extended periods, making it difficult for victims to get legitimate credit.

First and foremost, protect your data. Don’t share passwords or account information. Don’t lend your credit cards or IDs to others. Make sure you have high levels of security on your mobile devices and use highly secure passwords on your online accounts – and don’t reuse passwords. Also use two-factor authentication whenever possible.

Be aware of the countless scams being conducted via phone and online. If you even remotely question a request for information or an offer, hang up and call the institution back yourself to verify the request. Legitimate organizations don’t usually ask for sensitive information without you having contacted them first.

Be sure to check your credit report regularly. We can assist our account holders with this by activating Credit Sense on your online and mobile banking app. Credit Sense is a tool that will help you improve your financial well-being. Credit Sense gives you up-to-date personal credit information including credit scores, credit usage, total balances, payment history, credit age and recent credit. You can refresh your credit score as often as you need and get tips on how to improve it. Credit Sense also offers credit monitoring, which gives you protection from fraud with alerts notifying you when something has changed in your credit profile.

While it’s hard to keep your data completely safe, following these simple precautions and staying alert can help you avoid the hassles and financial burden of identity theft and fraud. To help you with best practices for avoiding identity theft, contact us to learn how we are helping protect your identity and funds.

Safety Tips for Online Banking

By Dave Wall

As with most services today, banking has moved into the digital world. Online banking provides an easy way to manage personal finances quickly and conveniently, without the need to worry about mailing checks to pay bills or going to the bank for simple transactions. But, the rise of digital commerce gave rise to a cyber underworld of hackers that requires caution and diligence with online activities, especially those that include financial transactions.  To keep you accounts and personal information safe, there are several best practices to follow when using online banking services.

Strong Passwords
Always make sure you use strong passwords that are not easily guessable. They should be long and include both upper- and lowercase letter, numbers, and other characters.  Using names, birthdates, and other easily guessable personal details is not recommended.  Even with the number of high-profile hacks featured by media outlets, some of the top passwords in use include “123456” and “password.”  Avoid using the same password for multiple accounts.  That way, even if one is compromised, your other accounts will be safe.  Change you passwords regularly.

Secure WiFi
Only use secure WiFi networks. Open, unsecure public WiFi networks are an easy target for hackers, who can intercept data transmitted between you and the bank.  The safest policy is to limit your banking activity to your secure home network, but if you need to make transactions while away from home, use secure networks, or even use your mobile device’s cellular connection instead of WiFi.

Secure Websites
Make sure any website you use for financial transactions is secure by checking the URL. If it begins with “https” the site is secured with an SSL certificate.  Chrome browsers are starting to identify non-secure sites with a “Not Secure” label starting this month to help identify them.

Mobile Devices
If you are using a mobile device for your financial transactions, using the bank’s official mobile app is a good option. It is often even more secure than websites and is much less susceptible to hacking.  Make sure you update the app when required, and while most users tend to avoid automatic app updates, setting your banking app to update automatically ensures you’ll be using the current version with the latest security measures.  Turn off your Bluetooth connection when using your mobile device.  Bluetooth signals can be hijacked, just like open WiFi, allowing hackers to intercept your data.  This is a good policy at all times when not using your Bluetooth capability for communication.

Account Security
Regardless of how you access your accounts, it’s advisable to request text or email alerts whenever transactions are made or if balances drop below a certain threshold. This immediately alerts you if any unauthorized transaction has taken place and allows you to react quickly.  If available, you should always enable two-factor authentication on your accounts.  That means you will have to use two means of authorizing yourself as the user, but it makes it much more difficult for hackers to gain access, even if they have gotten your password.  One example of two-factor authentication is entering a required passcode to be entered, which is sent to a specified mobile number when a login is attempted.  Similarly, disable any automatic logins on your devices.  While logging in each time takes additional time, the added security can make sure your accounts aren’t accessible to hackers gaining access to your device.

Separate PC for Banking
If you have access to a separate computer to use only for your banking activity, you can reduce risk of threats from gaming, web browsing, email, social media, and other activities. If you have an old laptop or PC that you’re not using anymore, consider cleaning it up, updating the operating system and browser, and using that as your dedicated banking device.  It may not be powerful enough for gaming, streaming videos, and other popular activities, but it can still be very useful for securing your online banking.  If you don’t have access to a separate computer, you can still use a dedicated browser – one you don’t use for any other online activities.  That will still reduce risk.  Regardless of the device, make sure you keep your antivirus, browser, and operating system up-to-date to ensure you have the latest security patches.

Be Aware of Scams
Every day, hackers and scammers send countless fake offers in an effort gain access to devices and personal information. If the offer sounds too good to be true, it probably is.  Delete suspicious emails and texts immediately, and never share account information online.  Similarly, we won’t ask you for account details or other personal information over the phone unless you have initiated the call.  If you aren’t sure if a call is legitimate, hang up and call back.

Check you Accounts Regularly
Even the most diligent customers can have their account information or identities stolen from other sources. It’s a good policy to monitor your accounts and credit report regularly to check for any unauthorized accounts or transactions.  The Fair Credit Reporting Act requires each of the three national credit agencies to provide a free copy of your credit report once every 12 months.  That will allow you to check your credit report every four months at no cost.

Regardless of what transactions you’re making online, following these guidelines will help protect your assets and credit standing.

Five Financial Challenges to Test Your Saving Skills

By Tina Mason

One of the best ways to invigorate your saving strategy is by issuing yourself a challenge. Not only does the competition make it a little more fun, but you’ll also learn valuable lessons about the long-term benefits of discipline, the way your daily spending habits impact your quality of life, and just how much you can accomplish when you set your mind to it.

If you’re looking to make improvements to your financial planning and add a little extra padding to your savings account, here are five financial challenges you can try.

Take a new look at a favorite vice: There’s nothing wrong with splurging every now and then. But if you’re spending $5.00 on a cup of coffee every day, you may want to take a fresh look at how you get your morning pick-me-up. Could you live with making coffee at home and saving yourself over $1,000 a year?

Dive into the gig economy: If you find yourself with lots of free time and aren’t sure what to do with it, challenge yourself to finding a part-time gig. If you love nothing more than driving around town listening to music, maybe Uber would be a good fit. Fancy yourself a writer? Try to get published as a freelancer. There are tons of opportunities that will fit where, and how, you need them to.

Live like you’re single: Remember when you were young and single? You could somehow survive in an apartment the size of your living room. You ate Ramen noodles for breakfast. And even if you had less money saved up, you may have felt more financially free. Granted, your spouse may not appreciate Ramen the way your 20-year old self did. However, we all behave differently when we engage with others. By focusing solely on your own finances for a brief stint, you may be able to indicate where you’re letting money fall through the cracks.

A dollar a day: This one’s simple. Get a jar, and add a dollar to it every day. If you’ve got something you’re saving for, simply wait until you’ve gotten there. If not, consider it a rainy day fund for an emergency. You’d be surprised how easy it is to forget about a dollar every day.

Pile up your perks: Perks are everywhere these days. Debit and credit cards will often offer discounts, deals or cashback. Some people go coupon crazy at the grocery store. In this challenge, you are tasked with taking cash equal in value to the perks you’ve accumulated and putting it into a new savings account. It is a way of making your savings seem tangible, and will always help to remind you  to look for savings in your day to day life.

At The Milford Bank, we’re always looking for great ways to help you grow your wealth, protect your family and live your best life. To learn more ways to save, stop by any office location in Milford or Stratford or check out our Online Learning Center here.

 

With Winter Over, Now is the Time to Get Ready for… Yep, Winter

By Matt Kelly

Having been blasted with several Nor’easters in recent weeks, you may be ready to put down the snow blower and forget about the winter blues for a few months. But before you start compiling your Spring cleaning list, we implore you to think about Winter just a while longer.

As you’re well aware, the inclement wintery weather isn’t just an inconvenience. It’s an added expense. But with a little early planning, you can ensure that next Winter doesn’t break the bank. You never know, maybe you’ll even have a little extra holiday shopping money!

Here are some of the key considerations you should make now, before Winter escapes your mind like a receding tide on a tropical beachfront.

  • Lock in rates with your energy supplier. You’ll typically pay a much higher price for heating when demand is up and supply is down. This typically occurs in late Fall and throughout the Winter. You will likely be able to find optimal rates before the Summer heat hits. Fix your rate now and you’ll be assured of a consistent and affordable price all Winter.
  • Take advantage of seasonal sales. Besides fuel, there are plenty of other items you need throughout the Winter. If you’re a skier or snowboarder, you’ll likely find all your gear at reduced prices at this point in the season. Maybe you simply need new winter jackets. Whatever your need, businesses are eagerly letting go of their inventory while they can.
  • Not all firewood is created equal. Stoking a fire isn’t just for show in Winter time. It can be a necessity if the power goes out in a storm. It can also support your basic heating needs to reduce reliance on other fuels. However, it’s important to shop your prices and also the type of wood. Some types are not meant to burn indoors, and all wood should be properly seasoned. Otherwise, you may not get full efficiency from your wood.
  • Weatherize before the rush. The elements are constantly doing battle with your home. Weatherization can help you to keep up energy efficiency. There are plenty of businesses in the Milford and Stratford communities that offer energy audits that can help you find and fix inefficiencies.
  • Keep up with routine maintenance. By keeping up on routine maintenance now, you can save yourself tons down the road. After a particularly icy Winter, it’s important to make sure ice hasn’t dammed on your roof or in your gutters. Seal cracks in your driveway to prevent further damage to the concrete, and take good care of all the mechanical components in your home.

 

I’m sure the last thing you want right now is someone reminding you that you need to prepare for Winter. We’re ready for beaches and barbeques, too! But a little foresight can go a long way, especially when it comes to the Winter. To learn more about managing your finances, check out our Online Learning Center or stop by any office of The Milford Bank in Milford or Stratford today.

ABA Announces Consumer Awareness Observance Days for 2018

By Rebecca Tudor

Every year, the American Bankers Association releases an annual calendar including specific dates for consumer awareness observance days. While “Earned Income Tax Credit Awareness Day” might not have the same ring as Halloween or Independence Day, such observance days can be incredibly useful for taking a moment to assess your own financial status and learn something new about managing your wealth.

This year, we’ll be following the ABA’s calendar closely, tying in articles to provide some extra information for you to celebrate observance days. Pay close attention—we may even be running special events to celebrate some of these festivities at our office locations!

Read on to see the ABA’s schedule for 2018. Each month will provide you different financial perspectives, so we challenge all Milford Bank customers in Milford and Stratford to get creative and show us how they plan to celebrate!

January

1/26: Earned Income Tax Credit Awareness Day

1/28: Data Privacy Day

1/29-2/2: Tax Identity Theft Awareness Week

February

2/26-3/3: America Saves Week

March

3/4-3/10: National Consumer Protection Week

3/20: National Agriculture Day

April

National Financial Literacy Month—celebrated all month

Records and Information Management Month—celebrated all month

4/1: National 1 Cent Day

4/16-4/22: National Health Care Decisions Day

4/17: National Tax Day

4/20: National Teach Children to Save Day

4/29-5/5: National Small Business Week

May

Older Americans Month—celebrated all month

Military Appreciation Month—celebrated all month

June

American Housing Month—celebrated all month

National Internet Safety Month—celebrated all month

6/15—World Elder Abuse Awareness Day

6/28—National Insurance Awareness Day

July

National Make a Difference to Children Month—celebrated all month

August

Back to School

September

College Savings Month—celebrated all month

National Preparedness Month—celebrated all month

9/9—National Grandparents Day

October

National Cybersecurity Awareness Month—celebrated all month

National Crime Prevention Month—celebrated all month

Family Health Month—celebrated all month

10/1-10/5—Customer Service Week

10/1-10/5—Financial Planning Week

10/18—Get Smart About Credit Day

November

Military Family Month—celebrated all month

National Scholarship Month—celebrated all month

National Family Caregiver Month—celebrated all month

December

Identity Theft and Protection Awareness Month

At The Milford Bank, we’re committed to helping you stay focused on your bottom line all year round. So be sure to check out the ABA calendar and find some topics that pique your interest, as we’ll be putting together supplemental educational resources to correspond with the ABA’s observance days throughout 2018.

If you’re interested in learning even more about a particular subject from the calendar, be sure to check out our Online Learning Center too. It’s a wealth of resources designed to help all our customers achieve the best possible financial outcome for their family’s needs and wants. To learn more, click here.

Millennial Spending Habits Leave Little Room to Save

By Cortney Meng

It was only three years ago that Millennials became the largest generation in the U.S. labor force, surpassing the Baby Boomers with employment numbers of 53.5 million. This seemed to be a coming-of-age moment for Millennials, but new research indicates that in spite of three straight years as the top demographic in the labor force, Millennials have yet to turn their earnings into savings.

According to a new Bank of America survey, it was found that 46 percent of Millennials had no money in a savings account in 2017. Even more startling, this number actually increased from 31 percent over the span of just one year.

Given the fact that Millennials are working more but spending less, this financial epidemic may be rooted in poor spending habits. Let’s take a deeper dive into how Millennials are spending their money in 2018, and what they can do to break the cycle and bolster their savings.

Spending on comfort and convenience

A Charles Schwab report found that Millennials, more so than previous generations, are willing to spend frivolously on comforts and conveniences. 60 percent admitted to spending more than $4 on coffee, 79 percent would splurge to eat at the hot restaurant in town and 69 percent buy clothes they don’t necessarily need. Millennials also surpassed both Generation X and Baby Boomers when it came to shelling out cash for the latest tech gadgets and live events, as well.

Bills, bills, bills

Though Millennials do their share of frivolous spending, not all the bills in the mailbox are a choice. In fact, a recent Mother Jones study compared Millennials to young families from the 1980’s and 1990’s and found that young adults today pay about $1,000 more on healthcare, $1,500 on pensions and Social Security, $2,000 more on overall housing and $700 more on education.

Simply put, cost of living increases have put a damper on what earnings Millennials have generated. That said, the need to save for the future must remain a top priority. Millennials must reconcile the lifestyles they wish to lead with the realities of the world they want to live them in.

So what can Millennials do to start getting their savings accounts in the black?

Forbes recently outlined some of the ways in which Millennials can begin breaking the bad habits that have gotten them to this point. Here are a few key points:

  • Millennials, natives of the Social Media age, are often pressured to be at every event, party or Happy Hour. FOMO, or “fear of missing out”, is a very real phenomenon and can often lead individuals to spend money they don’t have, simply to ensure they’re in the picture—both literally and figuratively.
  • Setting clear goals is crucial, especially if you’re not where you should be or want to be financially. Even if it’s just saving $10 from each paycheck, it’s a start. By clearly defining your needs, and your limitations, you’ll soon be able to turn $10 into $100.
  • Checking and savings are two different things, yet many Millennials try to use a checking account for all their cash. Not only does this curb your growth potential, but it becomes all too easy to draw from that money in a particularly tight week. If it’s visible and easily obtained, you may have a hard time saving it.

To learn more about developing an approach to saving that will get you where you want to be, stop by any office of The Milford Bank in Milford or Stratford, or check out our Online Learning Center here.

Investment Tips for an Uncertain Market

By Matt Kelly

At the end of January, the Dow Jones Industrial Average capped off another record-setting month of growth, settling in around 26,600 points. Just a week into February, and the market had shaved off nearly 2,000 points as analysts began to question whether the bull market had finally slowed to a halt and whether we were in for a correction, recession, or more.

Now, investors find themselves quickly fluctuating between rapid sell-offs and frenzied buying sprees, uncertain about the more long-term economic outlook.

Of course, it’s not advisable to simply liquidate your assets and keep it all as cash under your mattress just because the stock market is volatile. Instead, this is a good point to calmly evaluate your needs, your long-term goals, and consider tweaking your investment strategy to make sure you don’t waste any time growing your portfolio.

While you should never make an investment without first consulting your advisor, here are a few tips to help steer you in the right direction.

You don’t need to abandon the markets entirely: Even when the markets suffer huge losses, there are still plenty of successful companies that weather the storm. You don’t need to pull all your savings from the stock market, but you do need to address whether or not your portfolio is diverse and conservative enough to be protected from a bear market.

Check out indexed and whole life insurance policies: Not only is life insurance an important component of your family’s financial planning, it can also act as an investment vehicle depending on the type of life insurance you procure. A whole life insurance policy will provide you with extra cash every time you pay your premiums. Indexed policies use that cash value and invest it into accounts tied to an index like the S&P 500. They have a floor of zero, meaning that you won’t lose money in a bad year, but still retain upside potential.

Consult with your financial advisor: Watching the stock market go up and down can be more emotional than an Oscar-nominated drama. And if you’re emotional, you may not be making sound financial decisions. Consult with your financial advisor before making any sudden changes to your investment strategy. This will ensure that your goals, and your financial needs, are both working in conjunction to secure your future and maximize your wealth.

To learn more about the savings opportunities available to you, stop by any office of The Milford Bank in Milford or Stratford, or check out our Online Learning Center here.