Thinking About Adding a Dog to the Family? Read This First!

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by Lynn Viesti Berube

There’re reasons dogs are considered man’s best friend: They give their owners unconditional love, are intelligent, provide countless hours of entertainment and are highly loyal. If you’re thinking about adding a puppy to your family unit, consider all these charming attributes. But also think about whether you can afford to own a dog. According to Pet Education, out-of-pocket expenses for just the first year of your puppy’s life can be as high as $6,600.

Certain costs, such as for services provided by a veterinarian—from vaccines to heartworm shots, to spaying or neutering—are unavoidable. Yet, you can mitigate other costs by taking the following measures:

Find an alternative to pet stores: Buying a puppy from a pet store could cost you $1,000. For a dog with a lower price tag, explore alternative options like animal rescue shelters or adoption clinics. Have a specific breed in mind? Consider contacting a rescue group. All pedigrees are available in shelters and foster homes. Adoptions are usually low cost or free.

Double your dinner recipe: Purchasing food for your dog isn’t cheap. The good news is that you can add some of the common foods you already cook—rice, vegetables and meat, for example—into their diet for a healthy and cost-effective solution. Be sure to consult with your veterinarian first, though, to make sure the ingredients you use are dog-friendly and offer enough nutrition.  

Invest in proper training: Taking the time to properly train your dog will have long-lasting positive effects for all of you. Don’t think of spending money on training as an expense, but rather, an investment. If your dog isn’t taught to respect you and your property, it might behave in unfriendly, even dangerous, ways. Dog’s have lots of energy and need to learn how to channel it appropriately so they don’t do damage when you’re not around. In addition, dogs in new surroundings often experience anxiety and might express their feelings by chewing on furniture, or behaving in other destructive ways. In other words, a well-trained dog is less likely to require frequent shopping trips to IKEA.

Make your own toys: Trekking through the aisles of a pet store, you’ll see a multitude of expensive dog toys made from common household items. Instead of spending money on a piece of rope, for example, check your garage for a similar “toy” first. Another tip: Purchase out of season toys at the pet store. Your dog does not care if you give him/her a snowman toy in the summer.

Be proactive about healthcare: Just as you do for yourself, take a proactive approach to your dog’s healthcare. Regular check-ups can prevent illness from impacting your dog’s quality of life, and help you avoid more-expensive medical treatments. A balanced, nutritious diet and daily exercise will also go a long way toward keeping your pet in top shape. Also be sure to brush your dog’s teeth, administer heartworm and tick prevention medications, and strictly follow any recommendations made by your veterinarian.

These measures will ensure that adding a dog to your family won’t upend your financial stability, and will allow you to enjoy your new pet for a long time. For more ideas on managing your money as you go through life, check out the Milford Bank Learning Center.

Three Ways You Can Improve Your Credit Score

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By Paul Mulligan

The importance of having good credit cannot be overstated. Having a good credit score—at least 700 on a scale from 300 to 850—can open up a world of possibilities that might otherwise have been unavailable to you. Good credit can help you get approved for a car loan or mortgage. In some cases, employers and landlords will even use credit scores as part of their background checks. A good credit score may also help you qualify for financing and credit cards with lower interest rates.

In general, you’ll find managing your finances and improving your quality of life easier with a first-rate credit score. On the other hand, the lower your credit score drops, the harder time you’ll have qualifying for low interest rates that will help you cut into your debt.

Fortunately, you can establish a good credit score early on and keep it headed in the right direction by following these three steps.

  • Apply for a secured credit card. Building credit is difficult to do without an existing payment history. One of the quickest ways to establish your ability and willingness to pay off debts in a timely manner is by using a credit card. Yet, first you have to qualify for the card, which is also contingent upon a solid history of loan repayment. In this case, a good solution is to procure a secured credit card. The lender assumes no risk with this alternative, as a sum of money equivalent to the total available balance on the card is held in an account and only released after you’ve established a track record for making regular payments.
  • Pay more than the minimum on your credit card(s). Another way to prove that you’re a low-risk customer is to pay down more than the monthly minimum on any of your existing balances. You don’t need to go overboard; paying 10 extra dollars a month can have an impact.
  • Leave repaid debts on your credit history. There is a difference between good and bad debt. If you’ve paid off a loan, don’t make the mistake of trying to erase the evidence that you had debt from your credit score. The fact that you incurred debt and handled it responsibly will help your score.

To learn more about the importance of credit and what you can do to improve your standing, stop by Milford Bank to speak with one of our financial advisors, or check out our Online Learning Center by clicking here.

Stop by The Milford Bank on Your Path to Becoming a Pokemaster

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By Rebecca Tudor

Since being launched in early July, the mobile application Pokemon Go has taken the world by storm. It took only one week for 10 million users to download the game (a new record) and has now been downloaded over 30 million times.

The odds are, you or someone you know is on the path to becoming a pokemaster themselves. Be sure to stop by The Milford Bank’s locations at some point along your path. You won’t be disappointed.

Here’s what you can expect when you stop by:

  • At our downtown office, there are 12 pokestops within a half-mile radius where you can resupply yourself with pokeballs, eggs and other boosters to help you capture the monsters. There are also four pokegyms nearby where you can test your skills battling other players.
  • At our Post Road West office, you’ll find one stop and one gym nearby.
  • In the vicinity around our Devon location, there are two pokestops.
  • There’s a pokegym very close to our Woodmont office.
  • Near our Stratford location, you’ll find three pokestops and a gym.
  • There have even been pokemon spotted inside our Post Road East location.

We’ll even be setting up lures within our locations to draw pokemon into our offices. Be sure to look for updates by following us on Facebook, Twitter and Instagram to see when a pokemon you still need to collect makes an appearance.

When you stop in to one of our branches, be sure to mention pokemon to one of our friendly representatives and you’ll even receive a free blink light so you can safely hunt after dark as well.

Speaking of safety, be sure to follow these guidelines put out by the Connecticut state police:

  • Don’t play while driving.
  • Don’t trespass on private property (scaling fences, parachuting, tunneling, etc.).
  • Don’t fight or argue with other players.
  • Don’t be lured by a beacon signal into unfamiliar surroundings.
  • Stay alert near roads.
  • Make yourself visible when playing at night.
  • Play with friends or family.

The Milford Bank even has a few employees that moonlight as pokemon trainers that have been happy to provide a few tips on how to improve as a player yourself. But don’t be surprised to receive an invitation to test your skills as a pokemon trainer if you run into one of them.

  • The pokemon eggs you collect will require you to walk a certain distance to make them hatch. Gather up as many eggs as you can before embarking on a long walk to save yourself time and energy.
  • Try to be as accurate as possible when throwing a pokeball out to capture a pokemon. Not only will this increase the likelihood of capture, saving you resources, but you’ll gain extra experience points for accurate tosses, which will help you level up more quickly.
  • When you’re in the heat of battle, wait until your screen starts to flash yellow and then swipe your screen to the right or left and you’ll have a chance to dodge your enemy’s attack.

To find out the nearest office of The Milford Bank to you, or to see how you can follow our social media accounts for the latest Pokemon Go updates, click here.

Back to Basics: Banking 101

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by Pam Reiss

Believe it or not, many people get through life without understanding the basic principles of banking. They make their deposits on payday and make withdrawals to pay the bills, and as long as the balance is in the black their finances aren’t given a second thought. But to know the “what” of banking is only half the story—understanding the “why” is equally important. By educating yourself on why certain elements of banking happen the way they do, you can become better equipped to manage your assets responsibly.

Even some of the most basic banking principles, like balancing a checkbook, have gone by the wayside—especially with the growth of online banking. Would you believe that 69 percent of people never balance their checkbook?

So let’s get back to basics and cover a few of the fundamentals of banking that you should understand about your hard earned savings.

Why do you need to balance your checkbook?

While the practice of balancing a checkbook is commonly viewed as a lost practice these days, in fact it is more important than ever. Even though there are strict procedures in place within financial institutions to protect your assets at all times, cases of identity theft and cyberattacks continue to rise. If this happened to you and you haven’t reconciled your account, you might not catch the crime until more damage has been done.

Why are there temporary holds on check deposits?

When you make a checking deposit, a portion of those funds become immediately available for use. But a temporary hold is placed on the remainder. This is important to know so that you can avoid bouncing checks with money that has yet to be transferred to your account. Don’t take it personally, though—the reasoning has nothing to do with your bank’s impression of you. In fact, your bank is simply waiting for the funds to be transferred from the payer’s bank, which can take up to several days. Your financial institution is simply making sure those funds arrive as planned.

Why pay off your whole credit card balance instead of the monthly minimum?

When you’re struggling to make ends meet, the monthly minimum payment option offered by credit card companies might seem enticing. But paying off the bare minimum has a far-reaching impact. Credit scores, for instance, are calculated largely based on the amount of debt that you carry. You also may end up owing more in the long run, as your interest rates could end up creating more debt than you’re paying off each month.

Even if you can’t pay the whole balance in full, making a payment a little above the minimum will help you avoid letting your debt spiral and will demonstrate to your card issuer that you are a responsible customer, giving you more bargaining power in the future when you look to increase your credit line or take out a loan.

For more basic banking principles, stop by a Milford Bank branch location near you or check out our Learning Center online by clicking here.

When Should You Start Saving for Retirement?

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by Patty Gallagher

Even if you love your job, you’re probably looking forward to the day you punch your last time card and can begin your retirement. But while you may have a 401K and social security coming your way, the bulk of your retirement stash may still fall on you and your ability to save.

With that said, when should you start saving for retirement?

It is never too soon.

Relying solely on a 401K or social security can be a risky bet. Your 401K is tied to the success of the stock market. Even if your 401K performs well for 30 years, a sudden economic downturn could erase your earnings just when you need them.

Social security, too, is growing increasingly uncertain. According to 2015 findings from the Social Security Administration (SSA), the ratio of workers to SSA beneficiaries is currently at a record low of 2.8. (By comparison, when social security was first rolled out, there were 41 workers supporting the program for every social security recipient.) As the baby boomer generation ages that number is anticipated to continue shrinking, raising questions about the long-term viability of the program as it currently exists.

Both of these pillars of retirement planning can be highly unpredictable. That’s why it is so important to begin planning your retirement savings early.

To ensure a long and happy retirement, here are the two easiest and most impactful things you can do:

Change your spending habits: Increasing your savings for retirement isn’t just about earning as much as you can during your working career. Making slight lifestyle adjustments to alter how you spend that money can have just as large an impact. What is that five-dollar specialty Starbucks drink you get every day worth to you? Over the course of a 40-year work history, it would add up to $73,000—more than enough for a down payment to help you move into a relaxing, beachfront condo.

Diversify your investments: While your 401K can be viewed as a risky investment, it is still a safe harbor for your savings as long as you have other types of investments for balance. Certificates of deposit, savings bonds, annuities and IRAs are other financial tools that can provide safekeeping for your savings. Or, if you’re handy enough to take care of your own repairs, real estate can also be a good place for your money. In an economic downturn, gold and silver prices typically do well by comparison, so having a small supply of precious metals might provide an additional safety net.

To learn more about how you can prepare for a prosperous retirement, stop by any office of The Milford Bank and speak with a financial expert.

Is Someone You Love Suffering from Elder Abuse?

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by Pam Reiss

According to the latest available statistics from the Administration on Aging, the number of senior citizens in America represented about 14.5 percent of the population. But that number is on the rise. The AoA expects that by 2040, seniors will make up nearly 22 percent—and by 2060 that number skyrockets to nearly 30 percent.

Unfortunately, the growing number of seniors in the community means that individuals looking for a mark for financial exploitation will have an easier time than ever. Seniors are targets for a number of reasons:

  • They’re likely sitting on more money in retirement than many younger people.
  • Some seniors have few friends or family members around and will suspend suspicion in favor of having company.
  • Some leave the responsibility of managing their finances to younger family members that feel entitled to money they expect to inherit.
  • Seniors in assisted living communities are surrounded by workers that may not have their best interests at heart.
  • Health issues associated with aging, such as dementia, make abuse easier to get away with.
  • Elders’ unfamiliarity with new technologies makes gaining access to personal financial data simpler.

All of these factors have converged on a growing elderly population to form a proverbial perfect storm for elder abuse. Just how rampant is the threat? According to the National Center on Elder Abuse, about 10 percent of seniors have fallen victim to financial exploitation.

Unfortunately, that means there is a great likelihood that someone you love may have been affected. Considering that these members of society are already on a fixed income in most cases, these abuses are considerably more heinous. The impact can range from inability to afford medications and housing to losses for family members that may have been expecting financial assistance themselves.

So what can you do to make sure this doesn’t happen to one of your loved ones? Take advantage of legal tools to limit the number of individuals that have access to, or control over, the finances of your aging family or friends. Use advance directives, living wills and limited powers of attorney for health care and financial decisions.

Awareness and education are also critical. Be sure that your aging loved ones are aware of the perils that exist in the world today. Be sure they understand that they should never provide sensitive personal information over the phone or online. If there is ever any question, be sure to speak directly to a representative from the institution in question, be it a bank, credit card company, or even something as seemingly benign as a telemarketing cold-call.

To learn more about how you can help to protect your loved ones against elder abuse, stop by The Milford Bank. Our financial experts will treat you as if you were one of our own family members.

 

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.