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College scholarship

2011-04-08T07:59:00.002-05:00

Need money for college? If you’re a credit union member, you may be eligible for one of the Leonard E. Wedel Scholarships offered by LifeWay Credit Union. Winners will be chosen based upon their financial need, academic record, and service to their community, school and church. Information packets will be available April 1 and must be returned by Friday, May 27.

Please call us at 615-251-2089 if you have any questions.

New safety seat advice makes sure kids are safe

2011-03-29T09:49:00.001-05:00

The American Academy of Pediatrics and the National Highway Traffic Safety Administration recently established new child safety seat advice for parents (health.yahoo.net March 21).

Both organizations recommend that children riding in cars should remain in rear-facing child safety seats until their second birthday, or until they reach the maximum height and weight for the car seat. The new guideline is based on research indicating that children younger than two years of age in rear-facing safety seats are 75% less likely to die or receive serious injury in a crash (aap.org March 21).

This updates previous advice from pediatricians that children should be placed in front-facing car seats after their first birthday (chicagotribune.com March 20).

The medical group and federal agency also suggest parents use booster seats for older children who've outgrown child safety seats until they reach a height--typically 4 feet 9 inches--where a vehicle's standard shoulder-lap belts fit the child properly (nhtsa.gov March 21).

Consider these recommendations--in addition to reviewing the new guidelines--to ensure that child passengers are safe while riding in your vehicle:

Purchase new. Buying new ensures the car seat or booster seat is damage-free. It is often hard to tell if a secondhand seat has been damaged from misuse or a previous accident. Unseen damage could compromise safety.
Check recalls. Be certain the seat model you own or plan to buy hasn't been recalled. Check with the National Highway Safety Administration on the Web for a list of booster seat and child safety seat recalls. Contact the manufacturer immediately if you find out that the model you purchased has been recalled.
Consider options. Buying a safety seat that converts into a carrier or booster seat may help you avoid the future expense of multiple safety devices. Remember to check the device's instructions or contact the manufacturer to make sure the device is approved for double duty.
Proper installation. A child safety seat is only fully effective when correctly installed. Have your seat professionally installed or visit a police or fire station to have your child safety seat checked for proper installation. Some Red Cross chapters perform this safety check as well.

Disaster relief tips: options, warnings

2011-03-22T06:49:00.001-05:00

Resist the urge to open your wallet too quickly following disasters, like the ones that have devastated Japan, if you want to direct your charity dollars where they yield the greatest benefit. Take a little time to check out the charity so you give to the good ones and steer clear of the scams.

Con artists exploit disasters, setting up shop quickly on the Internet and preying on your desire to provide short-term emergency aid and long-term rebuilding efforts.

Watch for these signs of charity scams:

"Cash, please." Never donate cash if you can help it. Write a check to the charity--not to the person asking for the donation--so you have a record of your donation. Ask for a letter from the charity with donation amount and date for tax purposes.
"We need your account number." Legitimate charities don't ask for this.
"About 10% goes to the charity, and 90% goes to administrative costs." This is not a good use of your money. You may choose to donate to charities that spend 20% or less of your donation on administrative costs. The less spent on administrative costs, the better, so ask for percentages. If they just say, "80%/20%," persist and ask which of those numbers is for administrative costs.
"We're a registered charity." Ask for a registration number, then check with the Better Business Bureau Wise Giving Alliance at 703-276-0100 or give.org for more information.
"We're sending you this e-mail request for a donation." Be suspicious--most legitimate charities don't send e-mail requests unless you've donated before. Avoid clicking on links in solicitations for money, even if they appear to come from familiar organizations.
"You don't need to check us out--we're legitimate." No legitimate charity will say this. Besides the Wise Giving Alliance, other charity watchdogs include the American Institute of Philanthropy at charitywatch.org, Charity Navigator at charitynavigator.org, and GuideStar at guidestar.org. Or, donate through a local fundraising federation such as the United Way (Consumer Reports Money Adviser February).

Here is a partial list of reputable organizations involved in Japan's disaster relief efforts (abcnews.go.com March 12 and huffingtonpost.com March 11):

Doctors Without Borders (doctorswithoutborders.org);
Global Giving (globalgiving.org); text JAPAN or 50555 to donate $10;
International Medical Corps (internationalmedicalcorps.org); text MED or 80888 to donate $10;
Operation USA (opusa.org);
Red Cross (redcross.org); text REDCROSS or 90999 to donate $10;
Salvation Army (salvationarmyusa.org); text QUAKE or 80888 to donate $10; toll-free 800-SAL-ARMY [725-2769];
Save the Children (savethechildren.org/japanquake); text JAPAN or 20222 to donate or toll-free 800-728-3843; and
World Vision (worldvision.org); text 4JAPAN to 20222; toll-free 888-56-CHILD [24453].

Keep cost of caring for elderly parents under control

2011-03-15T06:26:00.001-05:00

More than 40% of caregivers spend about $5,000 each year caring for a loved one; many individuals receiving care are parents of baby boomers (USAToday.com, Feb. 28).

If you're a caregiver, here are some ways to help cut costs that won't compromise quality of care:

Seek government help--Your local Area Agency on Aging can suggest programs in your state that can help with the financial burden of caregiving. Fifteen states offer a Cash & Counseling program for low-income seniors who are eligible for Medicaid. The program helps seniors pay for in-home daycare, including care that family members provide.
Pay family members for caregiving--More than one-third of caregivers have been forced to quit jobs, take early retirement, or reduce work hours because of their caregiving commitment. Consider paying yourself or another family member out of your parent's savings for the care you're providing. This "salary" can help offset lost income. To avoid disputes with other family members, create a contract that outlines the terms of the agreement.
Hire outside help--A survey by the Hartford Group, Hartford, Conn., shows that 80% of boomer caregivers feel moderate to high levels of stress associated with caregiving. Younger boomers, between 45 and 54 years old, appear to be shouldering the greatest burden; half report that they worry about the impact that caregiving has on their jobs. Hiring someone to provide some care allows you to provide better care for your parent when you're fulfilling your caregiving role.
Claim your parent as a dependent--You may be eligible to claim one or both of your parents as dependents, based on how much support you provide. To do this, your parent's income, excluding Social Security, must be less than the amount of the personal exemption. For 2010, the personal exemption was $3,650; for 2011 it's $3,700. You also must provide more than 50% of your parent's financial support to qualify. For more information, visit irs.gov.
Deduct your parent's medical expenses--If you can't claim a parent as a dependent, you might be able to deduct medical expenses. To qualify, you must provide at least 50% of your parent's financial support; your parent doesn't have to meet income restrictions. The deduction is limited to medical expenses that exceed 7.5% of your adjusted gross income. Qualified expenses include in-home health care, the cost of a nursing home, dental care and prescription drugs.
Consider your own long-term care--After seeing firsthand what being a caregiver means financially and emotionally, many boomers are making arrangements for their own long-term care. Paying for long-term care insurance policies isn't easy for families that also are saving for retirement and children's college expenses. About 20 million middle-age Americans are stuck between conflicting sets of responsibilities, according to stltoday.com: caring for their own kids--and their parents. You also can start preparing for your own long-term care, without draining your money, by drawing up a living will and a health-care proxy.

Follow fill-up tips as gas prices rise

2011-03-10T13:42:00.003-06:00

You've probably felt the sting of climbing gas prices in recent weeks. The national average is $3.38 a gallon--19 cents more than last week and 68 cents more than one year ago, according to the Department of Energy.

Fortunately, you can take steps to lessen the financial burden. Use these strategies to save money on gas, even as prices soar.

Use online tools and apps. Websites like GasBuddy.com compile gas prices in your neighborhood. Type in your ZIP Code to find the station with the lowest price near you. GasBuddy also offers mobile apps for the iPhone, Android devices, and Windows phones (ABCNews.com Feb. 28).
Avoid brand names. Prices often are cheaper at independent stations that are not affiliated with oil companies or gas brands, because they buy gas from more than one company (Bankrate.com Feb. 25).
Don't fill up near the highway. It's all about location: Gas stations near freeways or highways often demand higher prices for their convenience. To find a lower price, put some miles between you and the highway before you fill up (WalletPop.com Feb. 25).
Take advantage of reward programs. Some grocery stores partner with chain gas stations to offer fuel discounts to shoppers. And if you belong to membership-based stores, like Costco, you also may be able to find cheaper prices if you fill up at their stations.
Use cash. Find out if any gas stations in your area accept cash only or offer a cheaper price if you pay with cash. You often can find a lower price at these stations than you would at one that charges the same price for paying with cash or a credit card.

Money-saving tax tips for filers

2011-03-01T07:50:00.001-06:00

Before filing your tax return this year, become familiar with important changes since tax year 2009. Then take advantage of every credit, deduction, and free resource available (The New York Times Feb. 18).

Last year, millions of taxpayers didn't understand that they needed to complete Schedule M to claim the Making Work Pay tax credit. Luckily, the Internal Revenue Service (IRS) gave eligible filers the credit anyway, but don't count on that going forward.

First stop: IRS Publication 17, which has a link for "What's New for 2010." And there are plenty of other resources to guide you through the tax-filing process, including websites, tax software, and free local assistance.

Here are some suggestions:

Find all tax deductions. A deduction reduces the amount of your taxable income. Common examples include mortgage interest you paid, charitable contributions, and medical and dental expenses that exceed 7.5% of your adjusted gross income. For more information about tax deductions for the 2010 tax year, visit irs.gov or efile.com/tax-deduction.
Don't overlook a single tax credit. A credit is better than a deduction because it cuts your actual tax bill. Common examples include the child tax credit, dependent care tax credit, savers credit, and first-time homebuyer tax credit. For a list of family, work, and home-related tax credits, visit efile.com/tax-credit/federal-tax-credits.
Let go of some tax breaks. Tax breaks that disappeared for tax year 2010 include the exclusion from income of up to $2,400 in unemployment compensation, which means that all 2010 unemployment payments are taxable; and a deduction for state or local sales or excise taxes on new vehicle purchases (unless you bought the vehicle in 2009 after Feb. 16, but you paid the tax in 2010). And the first-time homebuyer's credit is available only if you signed a contract before May 1 and closed before Oct. 1, 2010 (New York Times Feb. 18).
E-file if possible. Visit irs.gov for options. Or you can e-file with commercial tax software or through a paid tax preparer. Shop around, and take into account the filing costs for both federal and state returns.
E-file with Free-file if you're eligible. If your income is less than $58,000, visit irs.gov for information about 20 tax software companies that make their products available for free; some also support state tax returns for free. If you make more than $58,000 and are comfortable preparing your own tax return, consider Free File Fillable Forms at irs.gov/freefile.
Use direct deposit. This is the fastest, safest way to receive your tax refund.
Get free help from VITA. The Volunteer Income Tax Assistance program offers free tax help to low- to moderate-income taxpayers, generally with incomes $49,000 and below. Certified volunteers are at VITA sites throughout the community—neighborhood centers, senior centers, libraries, schools, malls, and many credit unions. Most offer free e-filing. Call 800-906-9887 for the nearest VITA site.
Visit Taxpayer Assistance Centers (TACs). If you don't think your tax issue can be handled online or by phone, TACs provide face-to-face assistance through April 9. Visit irs.gov/localcontacts to find the TAC closest to you.
Use Taxpayer Advocate Service (TAS) as a last resort. The TAS helps taxpayers resolve problems with the IRS. It's free and confidential after you've tried to resolve the problem through regular IRS channels. Call 877-777-4778.

Finally, plan ahead. The average refund last year was $3,003. Rather than giving an interest-free loan to Uncle Sam, file a new Form W-4 with your employer and have less money withheld from your salary, putting more money in your pocket throughout the year.

'Brady Bunch' families face financial challenges

2011-02-24T14:37:00.002-06:00

-Blended families are the new normal. Divorce, remarriage, and living outside conventional marriage have changed families and created an expanded network of step relatives.

With more than half of all marriages ending in divorce and more than 40% of all Americans having at least one step relative, it's imperative to talk about money and how you'll handle it before entering into a new marriage (USAToday.com Feb. 6).

To keep your relationship sane and decrease money problems:

Find common ground--Talk about money before blending families. Decide if you'll have separate or joint accounts, or both, as well as who'll be responsible for each child's expenses. What contributions can you count on from ex-spouses; what financial commitments have you made to ex-spouses?
Discuss money issues with family members--Your children might have to change habits or get used to new rules pertaining to money, but including the kids in discussions about finances early on will lessen future problems.
Plan ahead--If you're remarried and you and your new spouse each bring children to the new marriage, discuss how you'll pay for your children's college education. Will you both chip in for each child or will you be responsible for paying for only your own children? Will your former spouse, and perhaps the child's grandparents, play a role?
Check insurance policies and wills--Read policies carefully to be certain that all family members are covered the way each parent wishes. It's just as important to check your wills to make sure the wording includes all children, both natural and adopted.
Consider estate planning--Meet with an attorney and make sure all kids from past marriages are considered. This includes looking at college educations, inheritances, and even custody issues. Determine who will be responsible for your children if you die.

Act to lower your credit card rate

2011-02-15T07:57:00.001-06:00

With the national average interest rate for credit cards reaching a record high of 14.73% (creditcards.com Feb. 2), you'll want to make sure you're getting the best deal possible.

The Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 restricts issuers' ability to raise rates, but whenever they can, you can be sure that many will. Here's some advice from the Credit Union National Association's Center for Personal Finance for getting the lowest rate possible on a credit card:

Get a card from a credit union. A credit union credit card typically has a significantly lower interest rate than a bank credit card. For example, right now the national average rate for a high-limit "platinum" card is 2.34 percentage points higher at a bank than at a credit union ( Informa Research Services Inc. Feb 6).
Use your card for convenience only. The very best way to control credit card costs is to use your card for its primary advantages only--as a convenient and secure way to make daily purchases or cover emergency expenses. Then always pay off your balance as soon as possible--preferably within the grace period, when no interest charges apply.
Use a different kind of credit. Suppose you're buying a big-ticket item, such as a computer, or paying for major car maintenance. Rather than use your expensive credit card, consider "closed-end" credit, a loan with a set number of monthly payments. A personal installment loan, even if it's unsecured--that is, not backed by collateral--will have lower finance charges.
Tend to your credit score. The rate a credit card issuer will offer you is highly sensitive to your credit history and the score derived from it. The credit score is the lender's estimate of the risk that you won't repay your card balance. That's why you'll want to do everything you can to demonstrate that you're creditworthy, such as by paying all your bills on time, without fail.
Use a secured card. A credit card backed by money you've set aside in a special account is a good way to start improving a weak credit score. Your lender will give you a better interest rate because it can always take money from your account if you don't make your payments. But if you do, your credit record will improve and, over time, so will your score and your future cost of credit.

Don't pass up retirement tax credit

2011-02-11T07:50:00.002-06:00

Hard to believe, but as many as 88% of taxpayers who could benefit from it don't even know about the Saver's Credit.

Officially named the Retirement Savings Contribution Credit, the 10-year-old saver's credit was designed to encourage low- to middle-income workers to save for retirement. But a survey released mid-January by the Transamerica Center for Retirement Studies of 3,598 full- and part-time workers with incomes of less than $50,000 indicates that as few as 12% of those who could benefit from the credit are aware of it (TheStreet Jan. 17).

One possible explanation for low awareness is that tax filers must use Internal Revenue Service (IRS) Forms 1040A, 1040, and 1040NR to claim the credit; it is not available if you file using Form 1040EZ. Thus, lower- to middle-income workers, those most likely to use 1040EZ and eligible for the credit, may miss it or remain unaware of it.

An eligible worker can apply the credit to the first $2,000 of voluntary contributions to a 401(k) or similar employer-sponsored retirement plan or individual retirement account (IRA). There are credits of up to $1,000 for single filers and $2,000 for married couples. The saver's credit is available to workers aged 18 years and older who contributed to a company-sponsored retirement plan or IRA in the past year and are:

Single or married filing separately, with adjusted gross income (AGI) of up to $27,750 in tax year 2010 or $28,250 in 2011.
Head of a household with AGI of up to $41,625 in 2010 and $42,375 in 2011.
Married and filing a joint return with AGI of up to $55,500 in 2010 or $56,500 in 2011.

You may not claim the saver's credit if you're a full-time student or claimed as a dependent on someone else's return.

If you use tax preparation software, look for prompts that refer to the saver's credit, retirement savings contributions credit, or credit for qualified retirement savings contributions. If you work with a professional tax preparer, make sure he or sure is knowledgeable about the credit. And if you prepare your own forms, complete Form 8880 to determine the credit rate and amount; transfer that amount to the appropriate line on Form 1040A, 1040, or 1040NR.

Do falling home prices signal time to buy?

2011-02-04T07:09:00.001-06:00

Home prices in many of America's largest cities continue to fall. The recently released Standard & Poor's/Case-Shiller home price index reports average home prices slipped 1.6% in 20 U.S. cities during November. Prices in eight cities sank to their lowest levels since 2006 and 2007 (nytimes.com Jan. 25).

These circumstances could mean it's an excellent time to buy a home. Here are three things to consider before taking the plunge:

How do you want to spend your extra money? Once you buy a house, you have to maintain it. You may need money you previously spent on life's little luxuries to repair a leaky roof, fix a broken window, or replace light fixtures.
Would you benefit from tax breaks? Owning a home means you can deduct mortgage interest and property taxes you pay throughout the year from your taxes, but you must itemize these on your tax return. You benefit from tax breaks afforded to homeowners only if itemized deductions will be greater than the standard deduction.
Can you afford a monthly house payment? The 26/38 rule can help you identify how much house you can afford. A monthly house payment should be less than 26% of your monthly gross income and includes your mortgage, property insurance, and property taxes. Your total monthly debt obligations—including house payment, car loans, and student loans, for example—shouldn't exceed 38% of your monthly gross income. This standard has some wiggle room; talk to your credit union home loan specialist for guidance.

Find a qualified tax preparer

2011-01-28T07:35:00.001-06:00

If the thought of preparing your own taxes makes your head spin, you're in good company. The National Taxpayer Advocate office, within the Internal Revenue Service (IRS), reports that 60% of taxpayers pay someone else to prepare their returns (WalletPop.com Jan. 14).

Enlisting the services of a tax preparer can be convenient, but research before deciding which one to trust with your taxes. WalletPop.com offers these suggestions for finding a reliable, qualified tax preparer:

Go online. Do a search for tax preparers in your area. Check each one's website for information about the preparer's qualifications. Also look for signs that the preparer stays informed about the latest tax issues, perhaps by writing a tax blog or contributing to media stories about taxes.
Look for complaints. Check with licensing agencies or professional organizations to find out if complaints have been filed against a preparer. If a preparer has a number of complaints on record, you may want to steer clear.
Ask about compliance. The IRS requires all paid tax preparers to have a Preparer Tax Identification Number (PTIN). Some states also require additional licensing. Ask potential tax preparers if they meet these requirements.
Consider the cost. You probably can expect to pay between $200 and $500 for a federal return. But fees can vary depending on your location and the complexity of your return. If a preparer's fees differ greatly from others in the area, don't be afraid to ask why.
Expect good service. Does the preparer return your phone calls, answer your questions, and advise you about which documents you should bring to your appointment? If not, look for someone you feel more comfortable working with.
Check availability. Find out when the preparer's office is open and how you can get in touch during the off-season, in case there's a problem with your return.
Get recommendations. Ask family or friends if they can refer you to a preparer. But don't settle for a name alone--ask additional questions about what the preparer does or doesn't do well.

Blowin' in the windfall

2011-01-20T15:42:00.001-06:00

This month's $380 million lottery drawing brought worldwide attention to the holders of the two winning tickets. Each time a big lottery jackpot hits the news, you can be forgiven for thinking "That could be me!" and dreaming of a spending spree.

More likely you'll get a less newsworthy windfall--found cash, a year-end bonus, a modest inheritance. But even moderate windfalls can lead to costly mistakes if you're not careful. To ensure that you don't blow any windfalls that come your way, the Credit Union National Association's Center for Personal Finance recommends that you start by getting help from qualified advisers. Follow these tips:

Pay the Internal Revenue Service first." Consult an expert--accountant, tax attorney, or other tax adviser--to determine your tax liability, if any. (Your state or local bar association might offer referrals to tax attorneys.) Insurance settlements and inheritances might not be tax deductible. If you do owe the government something, immediately set that amount aside before you spend any of the rest.
Look at the whole picture. Almost as common as news stories about lottery winners are the follow-up articles about sudden millionaires who foolishly let it all slip away. Make no rash decisions. Instead turn to a Certified Financial Planner (CFP) for comprehensive windfall advice. A CFP designation means the planner has passed a rigorous exam and has stayed up to date with continuing education. Let the CFP help you consider all your needs, goals, and options and make the most of your good fortune.
Give wisely. Windfalls can put recipients in a charitable mood. Get legal advice before giving money to friends and relatives to head off potential tax issues and hard feelings. Check out charitable organizations through evaluators such as Charity Navigator and Give Well to make sure your donations will be put to good use. And reward yourself, too. It's OK to splurge a little. Just be sure you don't jeopardize your long-term goals when you do.
Keep an even keel. Windfalls can be stressful, especially if they're associated with a death in the family or because of a public event. Excitement, publicity, and the inevitable demands of opportunists and investment swindlers can be bad for your physical and mental health. Before you feel overwhelmed, talk to a trusted personal or family therapist about coping skills.

Your home: Prepare for a tough sell in 2011

2011-01-14T06:11:00.001-06:00

If you're planning to sell your house in 2011, it's going to be a tough market.

That's the consensus of a number of analysts predicting that home prices will continue to fall, interest rates will rise in the second half of the year, and the number of sellers will continue to outnumber the number of buyers (seekingalpha.com Jan. 4).

The mortgage market has been so dismal Moody's Analytics suggested last year that in many markets in the U.S. it made more sense to rent than to buy. The cost to rent has gone up a modest 3% the past year and should continue to be moderate.

Some observers, however, say the market may improve by mid-2011 and certainly by the end of 2011. Moody's chief economist Mark Zandi told CNNMoney.com (Jan. 4) that owning a home again will be more advantageous than renting. His reasoning: Home prices will fall more, making ownership more affordable and the oversupply of homes for sale will keep already depressed home prices low. And while mortgage rates will rise in the second half of 2011, they will remain low by historical standards.

While forecasts for the housing market are varied, motivated sellers can succeed with these steps:

First, get your house ready to sell. Often referred to as staging, and the subject of many television shows, this simply means taking an objective look at the sales appeal of your home. Does it need painting, new carpet, or minor fix ups? Get rid of things that make it your home--photos, for example. Make it as neutral and as uncluttered as possible. Sell to buyers' needs, not yours. Be honest with yourself about its curb appeal.
Second, decide whether you'll go it alone (FSBO or for sale by owner) or enlist a broker. FSBO means more work on your part, but potentially more money in your pocket. And you'll likely have to fend off numerous calls from brokers hoping to get your listing. Listing with a broker offers greater marketing potential, but you'll be paying commissions to the selling agent and usually a buying agent.
Third, decide whether you're willing to offer incentives. Even if you go it alone you might want to consider a commission to the successful buyer's agent. Agents are likely to nit pick your house to death if they show it without one. Consider including paying for a home warranty for the first year or two. They typically cover all appliances and the heating and cooling systems, for around $500 or so annually. Or offer to pay a portion of the buyer's closing costs; you can deduct it as a sales cost.
Finally, be patient. Just try to find someone who can give you an accurate picture of how long it will take to sell a home these days. It all depends on local market conditions.

Three ways to leverage your payroll tax 'raise'

2011-01-11T06:22:00.001-06:00

If you have a job and pay into Social Security, you'll get a temporary "raise" in 2011. That's because a 2% decrease in your payroll taxes is part of the Tax Hike Prevention Act Congress signed into law at the end of 2010 (msnbc.com Jan 3).

You won't see this money in a lump sum. Instead, each paycheck will be a tad more because you can expect to pay a little less in taxes. How much? You can get an idea by visiting Kiplinger.com and typing "tax cut calculator" in the search engine.

No matter what size your "raise," if you don't plan how you'll use that money it will slip away. Here are three ways to get power out of that extra cash:

Invest in yourself. If you don't have any credit-card debt, put the entire 2% in a pre-tax retirement account or Roth IRA, start laddering certificates of deposit/share certificates (CDs), open a high-yield savings account, or invest in a mutual fund. If you have credit-card debt, use the extra cash to pay it down.
Invest in your living situation. Establish an appliance-replacement fund and think "energy-efficient," pay more on your mortgage every month, or put the money aside every paycheck for auto maintenance.
Invest in quality of life. Start a fund for gift giving so you can celebrate important occasions and give to charity without worry, add a line to your budget for family entertainment so you're ready when the big show comes to town, stash the money to pay the rising costs of health care, or join a fitness club and invest in your personal health and well-being.

Two of these ideas have bonuses in that you'll get a percentage back if you invest in a pre-tax retirement account or a health savings account. Others save you money by reducing costs: If you pay down credit card debt, pay more on your mortgage, or upgrade an appliance, you'll wind up paying less in interest or the cost of energy. If you invest in a Roth IRA, besides bringing you more money when you retire, your contributions most likely will be cheaper in today's tax climate than they will be in the future.

Find the right fitness equipment

2011-01-07T06:53:00.001-06:00

Is your New Year's Resolution to get fit, but your personal economy is shaky? You can lose weight, gain muscle mass, pump up your endorphins, increase flexibility--name your goal--without spending precious time and scarce money at a gym. Learn how to shop for quality new or used fitness equipment--from the simplest to the most complicated--and move your workout into your home (GenXFinance.com Dec. 27).

New equipment is ideal--it comes with a warranty and is an investment. But if your budget says "no," or you aren't sure what you need, it makes sense to purchase used equipment.

Websites can help you figure out what you need and want, get you started on your own exercise program, and even review brand names and models. Then, when you are ready to purchase equipment, you can make an informed decision.

Use key words and phrases to search these sites for ratings, comparisons, reviews, or helpful tips:

ConsumerSearch.com reports what experts and users say about a product, without being influenced by advertising or other commercial considerations.
About.com gets its information from real people with passion and expertise in their fields who agree to observe a conflict-of-interest policy.
E-How.com combines expert with practical knowledge to help you research, share, and discuss solutions and tips for just about anything you want to do.

Examples of key words or phrases: exercise video, treadmill, resistance band, strength training, toning, elliptical machine, fit on a budget, and so forth. You'll find choices for information about the topic you enter, plus leads to new areas of exercise you perhaps hadn't considered.

Before you buy fitness equipment:

Think about activities you already enjoy. This is important when venturing into something new to increase the likelihood you'll actually use the equipment you buy. For example, if you hate bike riding, don't buy a stationary bike. Start with exercise videos that you rent or borrow from the library and a good pair of shoes to find out what you like.
Determine your budget. Exercise gear doesn't have to be expensive, but you want good quality. Visit About.com and search "exercise on a budget" for alternatives to spending a lot of money for gym membership or on home equipment.
How much room do you have? Before you buy anything bigger than resistance bands, think about where you'll put it. Measure your space to avoid future problems.
Beware of fitness fraud. This includes quick fixes and impossible claims. Example: An ab machine will target your abdominal muscles, but it won't reduce fat over your tummy.

Understand provisions of 2010 Tax Relief Act

2011-01-04T07:56:00.003-06:00

In December, Congress passed and President Barack Obama signed the 2010 Tax Relief Act. The bill brings significant tax-law changes for many Americans.

The National Society of Accountants (Dec. 20) breaks down some of the most important changes, including:

Increased Alternative Minimum Tax exemption amounts. The act increases 2010 exemption amounts to $47,450 for individuals, $72,450 for married couples filing jointly and surviving spouses, and $36,225 for married couples filing separately.
No change in tax rates. Individual tax rates will be held at the 2010 level for the next two years.
Extended capital-gains tax rate. For 2010, qualified capital gains and dividends are taxed at a maximum rate of 15%. The act extends that rate through Dec. 31, 2012.
Extended itemized deduction limitation. The "Pease" limitation--which reduces the total amount of a higher-income individual's otherwise allowable deductions--was suspended for 2010. It was scheduled to return at a projected level of income starting at $169,550. However, the act has extended the suspension through Dec. 31, 2012.
Suspension of personal exemption phaseout (PEP) extended. The PEP reduced the total amount of exemptions for taxpayers with adjusted gross incomes exceeding the applicable threshold--$169,550 for singles and $254,350 for joint filers in 2011. The PEP was suspended for 2010, and the act extends that suspension through Dec. 31, 2012.
Extended marriage penalty relief. The relief provision increased the basic standard deduction for married couples filing joint returns to twice the amount for a single taxpayer. The act extends marriage penalty relief through Dec. 31, 2012.

Check your credit report for unpaid medical bills

2010-12-31T06:58:00.001-06:00

We expect a late car payment to bring down a credit score a few notches. We accept that a maxed-out credit card won't look good on a credit report. But what a shock to find medical bills sent to collection on your credit report, especially if it's the first time you've seen them.

An estimated 14 million Americans are dealing with medical bills they believe have been sent to collection agencies in error (The New York Times Dec. 17).

Darryle Watson of Willow Park, Texas, first learned of his outstanding bills when he and his wife attempted to refinance their mortgage. Despite a solid record of paying back credit on time, their low credit scores would cost them more than $9,000 in closing costs. Four unpaid medical bills, the largest only $400, had gone directly to collection.

Hospitals, labs, and physicians are more likely to sell unpaid medical bills to collection agencies for just pennies on the dollar, avoiding the rules and regulations of creditors who report unpaid debts.

"Collections are weighted more heavily than other unpaid or late bills," said Rod Griffin, director of public education at credit reporting agency Experian. "They will have a more serious effect on your credit score. This can stain a credit report for seven years, even after the bill is paid. Pending federal legislation would require paid medical debt to be removed from credit reports after 45 days.

Follow this prescription to monitor the effect of medical bills on your credit score:

Order a free credit report. Medical bills are sometimes sent months after service; it can be difficult to decipher what portion is still unpaid. Play it safe and review your credit report at least annually. You can get a free report from each of the three major reporting agencies at annualcreditreport.com. Order from one agency in January, another in May, and the third in September for thorough monitoring.
Dispute errors in writing. If you find an unpaid medical bill on your credit report, send documentation showing payment to all three major bureaus. The Federal Trade Commission's website offers guidelines for disputing errors.
Negotiate payment. Even if it's the first time you've seen the bill, work with the collection agency. If it's a legitimate charge for which you are responsible, secure a promise in writing to remove the bill from your credit report if you pay.

2010-12-21T08:28:00.003-06:00

In the same region, shepherds were staying out in the fields and keeping watch at night over their flock. Then an angel of the Lord stood before them, and the glory of the Lord shone around them, and they were terrified. But the angel said to them, "Don't be afraid, for look, I proclaim to you good news of great joy that will be for all the people: today a Savior, who is Messiah the Lord, was born for you in the city of David.

Luke 2:8-11 (HCSB)

Merry Christmas and Happy New Year from the staff of LifeWay Credit Union.

Get breaking news from the IRS

2010-12-17T06:27:00.002-06:00

As tax laws change in this uncertain economic climate, you can get reliable federal tax news directly from the Internal Revenue Service (IRS) (MSNBC Dec. 8).

Congress is rushing to finalize a $900 billion tax deal that will affect all Americans, and you can arm yourself with information in a variety of ways (The New York Times Dec. 6):

Twitter: The newest route is via the Twitter news feed, @IRSnews. Twitter's feed will provide tax tips, law changes, information about the Earned Income Tax Credit, "Where's My Refund," and how-to sections such as "how to e-file." You can even sign up for text messages from this site. If you're not familiar with Twitter, sign up and log in to Twitter.com . Then go to IRSnews and click on "follow."
YouTube: If video is your favorite way to get information, subscribe to the IRS tax information channel on YouTube to get tax tips and help about filing for free. Click on "subscribe." You can set up a YouTube account at the link. Then go to IRSvideos and choose how you want to be notified of new material.
iTunes: You can download free MP3 files with answers to typical tax questions from iTunes. If you aren't familiar with using an iTunes account, you can hear the same podcasts on the IRS website.
E-mail: Sign up to receive tax tips from the IRS via e-mail--every business day during the tax-filing season and periodically throughout the year.

More consumers consider strategic default viable

2010-12-14T06:26:00.001-06:00

More and more consumers are thinking the previously unthinkable: that a strategic default--when a borrower who can afford to pay walks away from an underwater mortgage--is a viable tactic.

In a survey of 2,034 homeowners and renters conducted in November, RealtyTrac and Trulia found that 48% of homeowners with a mortgage said a strategic default is an option they would consider if they owned more on their home than what it was worth (The Palm Beach Post Dec. 7). That was a seven percentage point increase from a study earlier this year.

That backs up results of a study by researchers from the European University Institute, Northwestern University, and the University of Chicago in July that reported the strategic default trend among homeowners with an equity shortfall of at least $100,000 was "large and rising." As of March 2010, the study concluded, strategic defaults accounted for 35.6% of all foreclosures, compared with 23.6% in 2009 (The New York Times Dec. 2).

"It's one thing when consumers default because they lost their jobs or suffered some other hardship and could not afford to make their payments," notes Jim Hanson, of the Credit Union National Association's center for personal finance. But The New York Times reported that affluent homeowners have been walking away from second homes and investment properties even though they can afford to make their payments.

"Some money advisers say this is just good business strategy. And there has also been speculation that more consumers are reacting to the robosigning underwriting that went on among many mortgage lenders," Hanson continued. "These individuals are saying, 'If banks don't have to play by the rules, why should I?'

"What's that old adage, two wrongs don't make a right?" Hanson said. "Keep in mind the effect a strategic default will have on your credit rating and your ability to get credit in the future." Such a move may make short-term economic sense but likely will keep you from getting a loan of any other kind for seven to 10 years.

In June, Fannie Mae announced several new penalties for strategic defaults, including a ban for at least seven years from qualifying for a Fannie Mae loan.

And walking away doesn't mean lenders have no recourse. In some states, lenders can sue borrowers who had the capacity to pay and did not complete a workout agreement with their lender. In nonrecourse states, lenders can sometimes go after borrowers who strategically default on a previously refinanced property if the mortgage was not for a first purchase.

Charitable giving: Be wise this holiday season

2010-12-10T07:24:00.001-06:00

'Tis the season for giving to family and friends, and donating to charity. But before you donate, make sure you're giving to an organization that will put your money to good use and that you're donating wisely and safely (USAToday.com Nov. 30).

The Charities Review Council, St. Paul, Minn., recommends taking these steps before making a contribution:

Verify the charity. Research the organization at the Charities Review Council website (smartgivers.org) to confirm that it's legitimate. Look at the online giving guide to find more about the organization, its mission and programs to know what your donation supports. Don't just give to an organization because it has a heart-warming story on TV.
Beware of phony sites. Scammers often use Web addresses that are similar to official addresses of legit organizations to trick users.
Review the organization's privacy policy. Check the website or ask the organization for its policy to learn how it will use and safeguard your information.
Protect confidential information. Look for "https" in the browser to make sure you're on a secure site. Never click on links in unsolicited e-mail appeals asking for confidential information such as passwords, credit card numbers, or financial account numbers. Also beware of attachments--they may contain viruses that can harm your computer.
Observe check donation safety. If you're donating through the mail and not online, make your check payable to the charity, not to the individual collecting the donation, recommends the Better Business Bureau. Never send cash.

Mortgage loans

2010-12-07T07:51:00.003-06:00

Thinking about refinancing your mortgage? See us first! With rates as low as 3.625%, you'll save money!

Call us today at 615-251-2089.

Holiday shoppers, be wary of these sales pitches

2010-11-30T07:18:00.001-06:00

If you visited a mall or discount store last weekend, you might come to the conclusion that shoppers are just cavemen with better fitting outfits. The grabbing, the grunting, the dashing, the darting--you'd think we were fighting for survival, not the last pair of cashmere socks on the rack. Oddly enough, you're right on target, and so are retailers.

Here are several sales pitches aimed at tricking our hunter-and-gatherer brains (SmartMoney.com Nov. 10).

Spend $50 today; get $10 off later. This now-and-later technique is geared to bring you back into the store to see the newest merchandise and overspend your budget. Think twice before heading to checkout. Perhaps you can hold off on a few items until your next trip.
Limit two. This brings out the competitor in us all. If the store is setting limits, it must be a great deal. Or is it? Before scooping up one for Uncle Chuck and another for cousin Bill, compare to ensure it's really worth the asking price.
Five-hour-only sale. Yes, some retailers are aiming to scare you into buying. Limited-time sales are meant to move you now on the fear that all the bargains will be gone tomorrow. While this may be a great sale, it's clearly not the last and may not even be the best.
Get 23% off. What happened to "save 20%"? It became invisible. Odd numbers grab our attention, suggesting a bargain that has already been marked down. This is just an attention-getting device, so go ahead and give it your attention--then your scrutiny.
Save $150! Who doesn't want to save $150? By drawing our attention to the savings (rather than the price), a retailer creates the illusion that the actual price is more reasonable. So if you're shopping for a Blu-ray player and find one you like for $99, stick to your guns--even if you can save $60 on another model for $119.

Happy Thanksgiving

2010-11-23T07:48:00.005-06:00

This Thanksgiving may your home be filled with the Lord's loving presence and bountiful blessings.

Happy Thanksgiving from the staff of LifeWay Credit Union!

Home prices not done falling

2010-11-19T07:22:00.001-06:00

Look for home prices to slide perhaps another 7% between now and midyear 2011, according to FiServ, a market analytics company based in Brookfield, Wis.

If that forecast is right, home prices nationally will have dropped 34% from their peak by the time they hit bottom.

For as many as three million Americans, the dream of owning a home has faded. Home ownership has declined from its peak of 69.1% in 2005 to 66.9% today (CNNMoney.com Nov. 2). Additionally, the vacancy rate among homes designated owner-occupied is 2.5%. Housing starts are at 600,000 a year, well below the normal replacement rate; few new homes are being built.

Despite low mortgage rates, which averaged 4.3% in September for a 30-year fixed rate and 3.8% for a 15-year rate, "people aren't going to be in the market if they can't find jobs--or feel insecure about keeping their jobs," says Susan Tiffany, CUNA's director of consumer periodicals.

Young people have been hit hardest by the economic turmoil. For those younger than age 35, home ownership dropped 9%, with 39% owning homes, compared with 43% at the beginning of 2005. Also hit hard, Americans 35 to 44 saw their ownership rate fall 7%, from 70% to 65.2%; 45- to 54-year olds saw ownership drop 5%, to 73% from 76.5%; and homeowners 55 to 64 saw a 3% decline to 79% from 81.8%.

If you're in position to leverage today's low rates, Tiffany has these suggestions:

Shorten the term of your mortgage. You'll probably need a strong credit score and at least 20% equity.
Look to free up some cash. Refinancing can reduce your monthly payments or help you save money with a lower interest rate and/or shorter term for repayment.
Expand your real-estate holdings. If you are looking for a second home, or an investment property, it looks like a buyer's market over the next year.

Tiffany offers one caveat: "Most forecasters are saying mortgage rates may rise gradually through 2011."

Fresh saving ideas as holiday season approaches

2010-11-16T07:31:00.000-06:00

Air fares and gas prices take their toll on consumers' wallets as the 2010 holiday season approaches.

Airline travelers are spending nearly 50% more this year than in 2009 for Thanksgiving holiday fares. And the price at the pump offers little relief for those planning to skip the airport. The cost of a regular gallon of gas increased 6% during the first week of November (moneywatch.bnet.com Nov. 10).

As a result, consumers who combine travel plans with holiday gift-giving are left searching for new ways to tighten their belts and still spread the holiday cheer. Here are three alternative methods from Yahoo! Finance to help you save some cash this holiday season:

Share your skills. Are you handy with computers, a do-it-yourselfer, or a master chef? Whatever your skill set, deliver your talents and expertise as a gift. It's a thoughtful present that also helps both giver and receiver save money.
Move the holiday. Agreeing with others to celebrate shortly after a holiday allows you to share the season and the savings. You'll be able to take advantage of after-holiday sales, enjoy festivities with others, and possibly avoid hectic travel days.
Check your supplies. Inventory supplies before stocking up this holiday season. You may find you have plenty of wrapping paper, cooking ingredients, and gift boxes to satisfy your needs and prevent unnecessary purchases. Besides, who needs four rolls of half-used transparent tape?

Don't be tricked by Medicare scams

2010-11-12T06:56:00.001-06:00

Medicare scams cost taxpayers billions of dollars every year, and the schemes are not always big and obvious (The New York Times Oct. 29).

Yes, large crime groups do get arrested and charged for Medicare fraud. In October, a 40-plus member crime syndicate stole the identities of doctors and thousands of patients and used them at bogus health clinics in 25 states to bill Medicare for more than $100 million.

But, thieves work other schemes on a smaller scale. A criminal may offer you medical supplies or diabetes screenings, simply to collect your Medicare number. Then he will bill you for other supplies and services you never receive. Of course, the swindler pockets the reimbursements.

You might think you can relax, knowing that you probably won't have to pay--but guess what? Your medical and insurance records could be compromised and the problems show up later. It could be the day you need a wheelchair, and Medicare denies it because you've "already had one for five years."

Here's what you can do to protect yourself or a loved one from Medicare fraud:

Guard your card. Protect your Medicare card the same way you guard a credit card or Social Security card. Likewise, never give your Medicare number over the phone to a stranger or allow a friend or relative to use it. Report a lost or stolen card immediately.
Beware of free services. If someone offers you medical service, equipment, or supplies for free, he or she doesn't need your insurance information. Walk away. If you're offered something you don't need or you already have, let it go. It could be a scam to collect your Medicare number.
Examine your statements. When you get your monthly Medicare Part D and/or regular Medicare quarterly statements, look for doctor visits that never happened, unfamiliar provider names, and supplies and equipment you never received. Call your medical provider first to clear up a possible error. If it's more than that, report it immediately.
Be cautious during enrollment. On Nov. 15 you can sign up for or change plans. This is also high-crime time when scammers offer bogus plans, services and products to unwary seniors. Before you sign up for a plan, check the Medicare plan finder to see if you can find it. If you can't, the plan may not be real.
Review your credit report annually. Look for unpaid medical bills and make sure they're legitimate.

It's always a good idea to keep a record of all medical services you receive so you can compare your records with unexplained charges. If you find errors, double-check them with your medical provider first. Then, if you still can't explain the discrepancies:

Go online. Visit the fraud section of the Medicare website to find out how to report your findings.
Contact your state Senior Medicare Patrol office. The staff will help you determine if you've been a victim of fraud and facilitate your complaint to government investigators.

If you're a Medicare recipient and want more information about preventing and reporting Medicare fraud, check the fraud section of the "Medicare and You" handbook that you should have received in the mail recently. You also can order the handbook online.

Limit the expense of teenage car insurance

2010-11-09T07:09:00.001-06:00

On the plus side, your new teenage driver will be eager to run all those errands that eat up so much of your free time. Unfortunately, adding your young "gofer" to your car insurance policy is going to cost you--about $621 more a year on average (Insurance.com Oct. 27).

Insurance premiums reflect the company's assessment of risk. Inexperience makes teenage drivers the highest risk group compared with any other age, including drivers aged 75 and older. In fact, teenagers are four times more likely to crash than older drivers, according to the Centers for Disease Control and Prevention.

Click for larger view

So you're going to have to adjust the family budget for your new driver. Your auto insurance premiums will jump by an average of 44% if you're a one-car family, 58% if you own two cars, and 63% if you have three cars (see chart).

Here's how the Credit Union National Association's Center for Personal Finance editors say you can minimize the increased expense:

Buy adequate coverage. Experts recommend coverage amounts much higher than those typically required by state law. And considering your potential liability for the medical and legal consequences of an accident, you're wise to buy more than the minimum protection. Consider at least $100,000 bodily injury coverage per person for each accident, $300,000 bodily injury an accident, and $100,000 property damage for each accident.
Ask about discounts. Many car insurance companies offer "good student" discounts for grade point averages above a certain level or membership in some civic organizations. Certain driver-training classes or installation of a monitoring device in the car may qualify for other discounts. In addition, safety features such as anti-lock brakes and anti-theft devices can reduce insurance premiums.
Hold your teenager accountable. Of course, the best way to save on insurance is to make sure your teenager keeps his driving record clean. John E. Whitcomb, author of "Capitate Your Kids: Teaching Your Teens Financial Independence," recommends making your child responsible for his driving behavior by means of a written agreement with mutually agreed-upon provisions, such as curfews or passenger limits. In addition, you might agree to pay a bonus for each accident-free year if your child agrees to pay some portion of the damage, including increased insurance premiums, for an accident. By spelling out what you expect of your teenager behind the wheel, and the consequences of misbehavior, you're more likely to make your child a willing partner in managing family car costs.

Check credit record before future employers do

2010-11-05T06:59:00.001-05:00

If you're looking for a job, chances are you've spent a lot of time making sure your résumé is perfect. You should pay close attention to your credit record as well (USAToday.com Oct. 26).

While only 13% of companies conduct credit checks on all job applicants, almost half check credit histories for employees with financial responsibilities and senior executives, according to the Society for Human Resource Management, Alexandria, Va.

Many employers believe that credit reports contain relevant information about applicants--especially those applying for jobs where they'll have access to large sums of money or merchandise.

Here's help understanding your credit history:

Realize the difference between credit score and credit report. Your credit score is a three-digit number that summarizes your credit history, and in many cases is the most influential factor in a lender's decision to grant you credit and at what rate, according to editors from the Credit Union National Association's Center for Personal Finance. A credit report shows a record of your past borrowing and repaying habits.
Check your credit report yourself. You're eligible for a free credit report annually from each of the three major credit bureaus--Equifax, TransUnion and Experian--at annualcreditreport.com. Use the website to request one or call 877-322-8228.
Know your rights. The Fair Credit Reporting Act requires employers to obtain your consent before reviewing your credit report. While you can say no, if you decline giving an employer authorization to pull your report, your chances of getting the job may decrease.

New rules affect 2011 flex spending accounts

2010-11-02T07:52:00.001-05:00

Fall means football games to watch, maybe some raking, and, for those of us with flexible spending accounts (FSAs), it's time to plan how much to set aside for 2011.

While contributing to a health-care FSA is a great way to use tax-free payroll deductions to cover medical expenses, health-care reform will change the ways you can use funds in 2011 (Kiplinger Oct. 15).

Here are some examples:

Over-the-counter drugs no longer qualify without a prescription. Starting in 2011, you'll no longer be able to use FSA money for non-prescription drugs, except insulin. Further, if your employer gives you until March 15, 2011, to use up the money in your account from 2010, you still won't be able to spend it on over-the-counter drugs without a prescription after Dec. 31.If you regularly use over-the-counter medications, such as pain relievers or allergy medications, ask your physician for a prescription. You may qualify for reimbursement in 2011 by submitting the prescription number along with the receipt.
New rules may cover adult children's expenses. Since many employers have expanded the definition of dependent to include any child younger than 27 at the end of the year, you may be able to use money in your FSA for adult children's out-of-pocket expenses. Previously, this worked only if the child was a dependent for tax purposes.
FSA limits will be lower in the future. FSA limits aren't changing next year, but the maximum limit will shrink to $2,500 in 2013. So if you're considering a medical procedure that isn't covered by insurance--such as laser eye surgery--you might want to schedule it in 2011 or 2012.

New rules for nest eggs affect 72 million AmericansNew rules for nest eggs affect 72 million Americans

2010-10-29T07:02:00.001-05:00

Do you know exactly how much your 401(k) account costs you? You will, thanks to new rules announced Oct. 14 by the Labor Department (USA Today Oct. 14).

By Jan. 1, 2012, an estimated 72 million Americans who participate in 401(k) plans will have access to much-needed transparency--in user-friendly formats--about what their plan fees actually cost and how those fees stack up against other investments. Better yet, the new rules may result in bringing down those fees.

The new rules are intended to educate workers about more than half a dozen fees for things like administration, recordkeeping, investment advising, brokerage, and management services.

The goal of shedding light on fees is to help workers make better decisions. For example, if your operating expense is 2.5%, the new rules require that you also be told that the fee amounts to a cost of $25 per $1,000 invested. Compare that with an investment having an operating expense of 0.19%--or a cost of $1.90 per $1,000. Bottom line: The lower the fees, the better your return on investment.

Most workers don't realize that high fees eat away at balances over time. A 2006 report by the Government Accountability Office estimated that increasing fees on a worker's $20,000 401(k) account by just one percentage point could cut the plan's total value by 17% after 20 years (wsj.com Oct. 14). And for many workers, their 401(k) is the sole source of retirement income besides Social Security (National Public Radio News Oct. 15). That's why it's so important to compare fees.

Here's what you can expect by January 2012:

Regular reporting. You'll see all administrative expenses on your quarterly statements, and they'll also be available online.
Apples to apples comparisons. You'll see an explanation of all fees and expenses as a percentage of assets held and also as a dollar amount for each $1,000 invested.
Performance data. You'll see information about how each investment option has performed in the past--including one-, five- and 10-year investment results--as well as comparisons with appropriate benchmarks.
Comparison chart. You'll see a chart--or similar format--that makes it easier for you to compare each investment option.
Glossary. You'll be given a simple, plain-English glossary of terms so you can understand your investment options.
Website. You'll be given a website to visit for additional information.

Employment gaps and slow growth hinder job seekers

2010-10-26T06:29:00.001-05:00

Unemployed and underemployed job-seekers continue to face an uphill battle in today's economy. Slow economic growth is leading to weak hiring even though unemployment claims fell during the first week of October to their lowest level since July (businessweek.com Oct. 14).

Those with large gaps in employment history on their resume face additional hurdles. Potential employers may view a disruption in work history as a lack of commitment, focus, or a bad work experience a job seeker is attempting to hide (wsj.com Oct. 18).

All is not lost for job-seekers with large gaps in their work histories. Here are three ways to help potential employers better understand your situation and put to rest any doubts that may arise due to resume gaps:

Clarify connections. No matter the reason behind employment gaps, use a brief sentence in your cover letter to help explain the situation in a positive light. Describe how your situation gives you unique insight and experience that will directly benefit your potential employer.
Amplify activity. Amplify entry-level stop-gap jobs, training, or other time-fillers like volunteer work. Your experience with customers or learning a new competency may have provided you with valuable skills and understanding that uniquely qualify you for a position.
Demonstrate development. Emphasize what you learned if you left a previous employer on bad terms. Use this as an opportunity to emphasize character growth and your ability to learn from a miscalculation. This demonstrates a level of responsibility and maturity that may separate you from other applicants.

Congratulations!

2010-10-22T09:47:00.004-05:00

Congratulations to the following winners of gift cards at yesterday's Member Appreciation Day:

$25 Olive Garden - Diane Rivers and Christy Adkins
$25 Outback - Ken Braddy and Pat Tamburri
$25 Cheesecake Factory - Tina Loudermilk and David Grant
$25 Chili's - Karen Bell and Cordelia Wakefield
$100 Best Buy - Chris Johnson

Member Appreciation Day

2010-10-19T06:43:00.003-05:00

Be sure to stop by the office on Thursday, October 21 for Member Appreciation Day. We'll have cookies in the morning, popcorn in the afternoon, and you can register for prizes while you're there. We'll see you then!

Change your driving habits to avoid costly repairs

2010-10-15T06:41:00.001-05:00

It's not just your imagination: U.S. thoroughfares are bad and getting worse. According to recent analysis of Federal Highway Administration data, the average annual cost of wear and tear on your car due to rough city streets and highways is $400 a year (TRIP Sept. 22).

TRIP's report shows that San Jose, Honolulu and Los Angeles top the list of U.S. cities with more than 60% of road pavement in poor condition. As a result, drivers in those areas can expect to pay extra annual operating costs of more than $700 a car.

As if that news weren't bad enough, the prospects for short-term improvement appear dismal. The Department of Transportation estimates that planned expenditures for the next 15 years are $189 billion short of what's needed to keep streets and roads in their current condition. Making improvements will require an additional $375 billion.

While you wait for Congress and taxpayers to address those needs, here are some things you can do to minimize year-round pothole damage to your car, courtesy of the Credit Union National Association's Center for Personal Finance:

Keep your car in shape. Resist the impulse to underinflate your tires, thinking they'll smooth your ride. Tires with less than proper pressure wear out faster and may cause expensive wheel damage. Letting your car's shocks and struts go soft can be dangerous, too; a sloppy suspension reduces your car's traction and braking ability.
Slow down. Because force equals mass times velocity, doubling your speed doubles the amount of impact your tires and suspension must absorb. Driving slower also gives you more time to take evasive maneuvers if necessary.
Try alternatives. Don't let force of habit blind you to choices that will prolong the life of your car. Reroute your daily commute to avoid particularly bad stretches of road. Carpool and split the cumulative wear and tear with a co-worker. Better yet, cut down on short trips and use a bicycle or public transportation when convenient.

2010 LifeWay Benefits Fair

2010-10-12T06:24:00.002-05:00

LifeWay's Benefits Fair is in CL42 on Tuesday, October 12. We'll see you there!

Do homework before enrolling in a private college

2010-10-08T07:30:00.001-05:00

As many Americans try to earn more education to get ahead in the tough job market, more questions are being raised about for-profit colleges. Accreditation issues and high student-loan debt are some indicators that may put up a red flag about a school (USAToday.com Sept. 29).

Many for-profit college students take on mountains of debt while in school. The Department of Education has proposed penalizing for-profit colleges whose students graduate with more debt than they can afford. Congress began a series of hearings this summer to investigate whether federal aid to for-profit colleges is being put to good use.

Protect yourself before enrolling to make sure you're getting what you're paying for in a private school, advises Michelle Dosher of the Credit Union National Association's Center for Personal Finance, Madison, Wis. Here's how:

Check accreditation--Ask if specific programs are accredited and by whom. For job-specific training, ask if there are licensing or registration requirements beyond the earned degree and if the program prepares students to take any required exams upon graduation. Then verify the information.
Check graduation, placement and retention rates--The National Center for Education Statistics, Washington, D.C., is a good place to start.
Search for complaints--Most attorney general offices have consumer complaint divisions that log grievances against educational institutions. If not, state education departments should point you in the right directions. Searching the Web also can turn up information about lawsuits, scams, or accreditation issues.
Find earning potential--You can find wage data from the U.S. Bureau of Labor Statistics. The Labor Department breaks down information by specific career and location.
Talk to potential employers--Ask employers if they are familiar with certain private school programs and if they've ever hired its grads.
Compare community colleges--Community colleges and public, nonprofit technical schools often offer programs similar to those at private schools--and typically at a much lower cost.

You can deal with overdue payments

2010-10-05T06:58:00.001-05:00

Although the Federal Reserve reports a drop in total consumer credit card debt this year, it's actually a case of financial institutions writing off more delinquencies (Smart Money Sept. 21).

Consumers who have missed a payment can recover by considering these suggestions:

Keep emotions out of it. It's best to put aside any feelings of awkwardness or embarrassment when a payment is delinquent--especially if they prevent you from taking action. When dealing with the lender, keep in mind that this is business, not personal.
Seek help immediately. Don't wait. Consumers who find themselves falling behind should start by meeting with a nonprofit credit counselor. An experienced counselor can explain the options and establish a plan. To find a counselor, contact the National Foundation for Credit Counseling (nfcc.org or 800-388-2227) or ask for a referral at your credit union.
Start a debt repayment plan. Settlement and bankruptcy are rough on a credit score. Consumers who can make their minimum payments should opt for debt management plans. Often, a credit counselor can negotiate a plan that employs a reduced interest rate and a realistic payment schedule.
Avoid debt-settlement offers. In the past, debt-settlement companies have been a trap for consumers more often than a helpful service. Many of these companies charge large fees for services you can do yourself.

Save money with our home equity specials

2010-10-01T06:43:00.000-05:00

Struggling under the weight of heavy expenditures, like home improvement projects, medical bills, tuition, or even a family wedding? A home equity loan from LifeWay Credit Union may be just the financial muscle you need.

A home equity loan gives you up to 90% of—you guessed it—the equity in your home. Since your house secures the loan, the interest rate is much lower than what you'd pay on a credit card or personal loan.

And the rate is even more competitive at your credit union than other financial institutions. Our variable rate home equity line of credit has an introductory rate of just 2.9% for the first six months, with terms up to 15 years.* And our fixed rate home equity loan has a rate of just 4% for up to 5 years.

Here's what makes our home equity loan such a smart way to pay off your big expenses:

·The potential for tax-deductible interest (consult a tax adviser)

·Low interest rates

·Personal service to help you match your goals with your budget

Why look elsewhere for a home equity loan when your credit union membership can get you the money you need, for less?

Call us today at 615-251-2089 and exercise your right as a member to lower borrowing rates. Your credit union membership could be the beginning of a whole new you.

* See loan officer for details

Job loss changes credit card usage rules

2010-09-28T09:38:00.002-05:00

If you already lost your job or expect to get a pink slip in the near future, throw out some commonly held bedrock principles for using credit cards. Your No. 1 priority is to conserve cash (CreditCards.com Sept. 17).

In good times, the rules are clear: Pay credit card bills in full, or at least pay more than the minimum due. Use windfalls--tax refunds, bonuses, inheritance--to make extra payments and zero out existing balances as quickly as you can. Use credit cards for emergencies.

When faced with a job loss, the rules change. It's not a good idea to use credit cards as a fallback. If you've relied on credit cards because the equity in your home dried up, you already may be overextended. And lingering economic troubles could make it difficult to find another job--up to six months or more (Walletpop.com Sept. 20).

Follow these revised rules so job woes don't turn into credit card woes:

Build an emergency fund first, then reduce card balances. When faced with the choice of saving vs. paying down debt, experts agree that beefing up your reserves--to at least six months of living expenses--takes precedence during hard times. At the same time, continue to make minimum payments on all debts: Draw up a budget and cut out or cut back on anything that's not necessary. Find spending leaks by tracking where your money goes each day. Stash the cash you save in an insured account. Obviously, building your emergency fund will be easier before you lose your job.
Avoid late payments. The late payment fee is the least of your worries: Employers can look at your credit report before hiring you. If you're unemployed, missing payments, and your credit score drops, you're less likely to get hired.
Drastically cut back on credit card use. You don't want your balances to balloon out of control if you're unemployed or think a layoff is looming.
Don't use credit cards to prop up your lifestyle. The sooner you make changes to your spending habits, the less likely you'll wind up in credit trouble if your job search drags on for several months.
Stop thinking of plastic as a financial backup plan. Card issuers can reduce your credit lines at any time, and new credit is not easy to get. Experts advise you use existing lines of credit wisely. Even a small increase in spending could trigger a review by some bank card issuers, and changes could result in higher interest rates or lower credit limits, which could hurt your credit score.
Switch to cash when you can, but avoid cash advances. Pulling out cash makes you more conscious about your spending, but using cash advances will cost high interest rates and fees, leading to even more debt.

Finally, this rule holds true in good times and bad: Come clean with your creditors. Don't wait until you miss a payment. Call creditors and explain your situation--the advance warning likely will give you more leverage if you need to negotiate a payment plan. Ask if they'll temporarily lower your monthly payments and reduce interest. Do this before your situation becomes dire.

Act now for energy tax breaks

2010-09-24T07:12:00.001-05:00

Act soon to save some green while going green. Energy tax incentive deals expire at the end of this year and it's unclear if Congress will renew them (msn.com Sept. 10).

Consider these tax breaks but be sure to read the fine print when making purchases. Not everything advertised as "energy saving" or "energy efficient" qualifies:

The nonbusiness energy property credit equals 30% of the cost of energy-efficient products. Qualifying products include energy-saving doors, windows, insulation, metal and asphalt roofs, water heaters, biomass stoves, and heating and cooling equipment. Basically you can spend up to $5,000 on single or multiple products for your principal residence that you own and live in and get $1,500 (30% of $5,000 = $1,500) back as a tax credit. This credit can be used in 2009 and 2010. If you got the entire credit in 2009, you can't get an additional break in 2010.

Shop carefully because not all products qualify. Check the Energy Star's website and ask for the manufacturer's certification statement that verifies the product qualifies for the tax credit. Be sure to check on installation costs; they aren't covered for all products. Projects must be completed by Dec. 31.

Use Internal Revenue Service Form 5695 to claim the credit. Remember to save your receipts, any contractor certifications, and the manufacturer's certification statement.

The energy efficient appliance rebate program provides an incentive to replace older, inefficient models. Each state and U.S. territory designed its own rebate program and a few already have used up allocated funds. Some rebates require preregistration with a mail-in rebate form; others provide a voucher to use at time of purchase. Check the U.S. Department of Energy (DOE) website for details. This site is the only official DOE-sponsored site; be cautious of fake sites.

Online car buying is growing

2010-09-21T07:20:00.002-05:00

Will the car-buying process shift to the Internet in the next 10 years? That's the view of some analysts speaking with CNNMoney.com, which reported an increase in online car buying (CNNMoney.com Sept. 10).

Some large dealerships--Autonation, the country's biggest chain, and Sonic Automotive--are experimenting with upfront Internet pricing that serves as the initial point of contact for buyers.

Most consumers already use the Internet to window shop and gather information. But now more are completing the transaction online--hoping to avoid those dreaded face-to-face sit downs with a salesperson.

For consumers, the struggle between dealers and shoppers is shifting in favor of the buyer while dealerships, already faced with slim margins, look for a faster sales turnaround. The practiced online shopper can pit dealers against one another from home.

The appeal of online shopping is simple for consumers: There's less hassle. It's fast and convenient. Online car buying has become more streamlined and competitive, according to Edmunds.com. It has shopped online exclusively for its fleet-testing vehicles during the past eight years.

Michelle Dosher, managing editor of Home & Family Finance Resource Center and MoneyMix at the Credit Union National Association, Madison, Wis., offers this advice:

Line up your financing so you can be a cash-paying customer. Shop around for rates, starting first at your credit union.
Know exactly what you want to buy--the make, model, options, even the color.
Avoid going to the dealership. Call, send an e-mail, or employ a car-buying website to get bids from competing dealerships. Ask them to send you a copy of the window sticker and the invoice price, which is what you are really after. You'll be surprised how many will do so when they know they are bidding against another provider.
Don't fill out a credit application from the dealership before you have a firm price. Dealers use it to see whether you're a qualified buyer.
Resist the temptation to go to the dealership before getting a firm quote. Remind dealers that other providers are meeting your request for a firm bid.

If you buy from an individual or through an unknown provider, Dosher also reminds online shoppers to beware of potential fraud.

Visit a loan officer at LifeWay Credit Union to discuss auto financing details.

Your portal to 'the land of the free'

2010-09-17T06:48:00.001-05:00

The good old U.S.A. is called the land of the free, and no one knows this better than the smart consumer. Anyone willing to take the time to look--and ask--around is sure to find bargains at the best price of all: nothing.

Where to begin? How about the place that has catered to cheapskates since the days of Benjamin Franklin? As one Minnesota credit union member told readers of the Credit Union National Association's (CUNA's) Home & Family Finance Resource Center:

"Visit your local library--if you haven't been there for a while, you'll be surprised, as I was, to see what they have to offer. Aside from current books and magazines, you can get free or very cheap DVD rentals. In addition, our county libraries have free museum passes--they give you no-cost admission to many area museums and attractions. No strings attached. It's a great way to get truly free entertainment."

One library resource you're sure to find useful is the annual list of "fabulous freebies" from Kiplinger's Personal Finance magazine (Sept. 1). But there's much more.

Libraries all around the country are coming up with ways to offer unusual services for free or a small fee. For example, at many branches you can rent framed artwork for your home. Some libraries circulate toys for kids and household tools for grownups. You might even be able to check out an electricity monitor to modify your home electrical use or borrow an e-reader to take on vacation.

Ask library staff to help you track down free opportunities in your area. Many communities have neighborhood festivals and art fairs. Almost all museums have free days or partial days--find out when they are and arrange your visit around those days. See if your children's museum, science center, zoo, or aquarium has free times or free special events.

Depending on where you live, the opportunities keep coming. For example, if you're in a college town, find out about free performances by music department faculty or students. If your community has an orchestra or symphony, see if it allows free access--even if it's for rehearsal time.

Who has an 800+ credit score?

2010-09-14T06:56:00.001-05:00

Some people go a lifetime striving to hit a hole-in-one in golf or bowl a 300 game. Others are reaching for an 850 credit score.

Ismat Sarah Mangla interviewed several individuals with high scores and asked them to share their success stories (Money Magazine Aug. 26).

Chris Peplinski, a stay-at-home dad from Rogers, Ark., has a score of 813. He reads up on the elements that make up a FICO credit score and checks his number every three months.

Leland Lim, 41, has a score of 806. The San Francisco Bay Area doctor checks his reports regularly. However, his score suffered from a single error until he had it corrected.

Brenda, 69, and Dick Husemann, 66, have matching scores of 818. The retired Wilmington, N.C., couple keeps balances low, charging less than 10% of their available credit. While this keeps their scores low, they also commit to never missing a payment. Payment history accounts for 35% of the FICO score, and making timely payments is the No. 1 way to improve a credit score.

FICO, the Minneapolis-based company that created the widely used credit score model, considers five elements when calculating a score:

Payment history;
Amount owed;
New credit;
Amount of available credit; and
Types of credit used.

myFICO.com also offers information about the basic elements that determine a score.

Those interested in seeing their credit scores can request a free annual credit report from each of the three main credit bureaus from AnnualCreditReport.com. Users can report any errors directly to the report provider.

Mark September 16 for the "Money Talk"

2010-09-10T06:08:00.001-05:00

Money skills are crucial to the next generation's ability to live responsibly and independently. Will they get all the important personal finance information they need at school this fall? Probably not. But, there's something you can do about it. Prepare yourself and your child for National Money Talk Night (Forbes Aug. 25).

Taking advantage of the back-to-school atmosphere, American Express, with Jean Chatzky, is sponsoring National Money Talk Night, a time for parents and their children to talk about personal finance on Sept. 16. The idea for the night arose from discussions Chatzky, a nationally known personal finance author and media personality, held with American Express, the Jump$tart Coalition and the Council on Economic Education.

Chatzky has prepared the tools, information, and even the words you need to have the Money Talk with your child. The information is available for three age groups: middle school, high school and college students.

Here's what you do:

Visit MoneyNightTalk now. Download and view resources so you can get your own questions answered in advance. Pledge to have the Money Talk with your child. Print the talking points appropriate to your child's age group.
Mark Thursday, Sept. 16 on your calendar and ask your teenagers and young adult children to do the same.
On Sept. 16, sit down with your kids and have the Money Talk. You can use the MoneyNightTalk website or personal finance information on your credit union's website during your discussion to help answer your kids' questions.

Take note of the money attitudes and ideas that come out of your discussions. If you don't have children, invite your spouse or significant other to this national event. Use the talking points to help you discuss your financial goals.

Looking for a new car?

2010-09-07T07:50:00.002-05:00

Check with us first! With rates as low as 2.99%, you will save money with a car loan from LifeWay Credit Union. Call us at 251-2089 today!

How to NOT run short of money in retirement

2010-09-03T06:36:00.005-05:00

What are the chances you'll run short of money in retirement? The Employee Benefit Research Institute, Washington, D.C., predicts that 47% of early baby boomers ages 56 to 66 and 43% of late boomers ages 46 to 55 are at risk of having insufficient income in retirement to cover basic retirement expenses, as well as uninsured health care costs (EBRI July 27).

To help, Smart Money.com (Aug. 20) identifies six relatively painless ways to close the income gap:

Ditch high-cost debt. Aim to step into retirement debt-free. Pay as much as you can afford on highest interest-rate debts first while still making minimum payments on all other debts. Once you pay off the highest-cost debt, keep whittling away until you pay off all of them. Getting rid of mortgage, auto, and credit card payments in retirement could save you thousands of dollars or more a year.
Weed out unnecessary insurance. You probably don't need a disability policy in retirement. Similarly, weigh the pros and cons of cashing in your life insurance policy if you no longer have dependents and your spouse could easily support him or herself. When making the decision, calculate the financial loss to your family if you die, and then factor in the cost of the premiums.
Scale down this old house. Fewer rooms and square footage translate to lower expenses--upkeep, maintenance, utilities and taxes. Or, move to a less expensive area.
Get rid of energy guzzlers. Replace older appliances with new Energy Star models, switch to compact fluorescent bulbs, and ask for a free or discounted home energy audit. Visit doe.gov for guidelines to conduct an audit on your own.
Trim high investment fees. You may be paying too much if your fees are more than 1% of your portfolio value. Ask for a fee reduction if you think you're being overcharged, or search for a fee-only adviser at NAPFA.org.
Lose the landline. If cell phone reception is a problem, consider getting a signal booster. Visit BillShrink.com for the low-cost cell phone plans.

How retailers get you to buy more

2010-08-31T07:40:00.001-05:00

Spending more than you planned while shopping lately? It could be because retailers are doing more to target your senses and emotions in ways you may not notice (Chicago Tribune Aug. 15).

A consumer's best defense is to be aware of tricks and traps that entice you to indulge, according to Martin Lindstrom, author of "Buyology: Truth and Lies About Why We Buy":

Touch. You're more likely to buy a product because you touched it. A smart book store clerk won't simply point you to the right aisle, but will retrieve a book and place it in your hands.
Start high, end lower. A salesperson's best way to increase buyer spending considerably is to frame a decision by asking the customer to make choices. The customer is shown a full-featured product and asked which features to eliminate, rather than starting with the basic model and asking what to add. In most cases, the customer will not want to "give up" features not originally considered.
"Sincere" flattery. Salespeople use comments that may not be sincere but sound like it. You might not believe a clerk who says, "That dress looks great on you." But if she says, "I had to tell another woman that dress didn't look good on her, but it looks great on you," the compliment sounds more sincere.
Live models. Customers are more likely to buy clothes they see on a live model than on a mannequin, according to a new field of research called neuroeconomics. That's because neurons in the brain associated with empathy are stimulated by a human, but not by a mannequin.
Music. Does that tune make you feel happy and relaxed while in the store? Playing music with a rhythm slower than your heartbeat helps buyers linger longer, and ultimately spend more.

One way to avoid getting sucked in by retailer tactics is to shop with a list. Retailers want consumers to linger in the store so they can persuade them to buy additional or more expensive items. If you don't have a shopping list, you're more likely to be a good target for their agenda.

Another option: Wait to buy. Shopping can raise the dopamine levels in the brain, creating a rush. Building in a 48-hour waiting period for discretionary purchases can help answer that "Do I really need it?" question.

New auto loan rates

2010-08-27T07:35:00.003-05:00

Looking to buy a new or used car? Save money with a car loan from LifeWay Credit Union. We have car loan rates as low as 2.99%! Click here to see our full list of low auto loan rates.

Get paid to shop with Shop America!

2010-08-24T09:45:00.007-05:00

Most people shop online these days. Why not save and get money back when you shop? LifeWay Credit Union and Invest in America want to reward you with discounts and cash back just for being loyal to your favorite stores online.

Through Shop America, members like you have access to more than 1,200 online retailers, including some of the largest and most popular, giving you major discounts when you shop. And every time you earn $10 or more in cash back from your purchases, you'll get a check as a thank you! Don't forget to make your Shop America purchases with your LifeWay Credit Union credit or debit card.

So whether you're looking to shop online with Target, Macy's, Best Buy, Apple or hundreds of other stores, you can save and get paid to shop.

Easy online access. Shop anytime. Shop America. Speak to a member representative or visit www.lovemycreditunion.org/Shop_America_585.html for details on Shop America and the other Member Rewards partner offers from Invest in America.

Teens and older adults need help with auto choices

2010-08-20T07:49:00.001-05:00

Teenagers and senior citizens share one thing when it comes to choosing a car: They don't always make the best choices (CBSNews Aug. 4).

Teenagers may want flashy, fast cars--a parent's nightmare--but what they need are reasonably powered cars with good test results and numerous safety features.

Senior citizens have different issues but, like teenagers, they're making auto-buying decisions based on a lack of information. Many seniors aren't aware of the new brands and models that could meet their age-specific needs.

A common misunderstanding is to give a teen the biggest car possible. But big cars are more difficult to control, and teenagers are the least experienced drivers on the road. Give them a car that handles well, is agile, and has as many safety features as possible.

This usually means getting your teenager a new car, rather than handing down an old one. And it means not giving them a large SUV or pickup, which have high centers of gravity, making them more prone to roll than other vehicles, or a sports car, which can tempt drivers to go fast. Sports cars also are involved in a higher rate of accidents than other cars.

Look for a reasonably sized sedan that has safety features such as electronic stability control and curtain air bags, good crash-test results, not too much power, and a strong structure. When researching safety features, be aware that electronic stability control has different names from different manufacturers.

Earlier this year, Consumer Reports named 11 models safe for young people, based on test results as well as government and insurance-industry crash-test results.

Among the top picks:

Three small sedans: Hyundai Elantra SE (2008 or later), Mazda3 (2007 or later), Scion xB (2008 or later)
Three midsized sedans: Acura TSX (2004 or later), Honda Accord (2008 or later), Kia Optima (2007 or later)
Two small SUVs: Honda CR-V (2005 or later), Nissan Rogue (2008 or later)

Mature drivers have different needs than teenagers. For example, they often need more time to process events and to react. Complicated vehicle controls can cause confusion, waste precious time, and increase the chances of an accident. Older drivers need easy in-and-out access, good visibility in all directions, a comfortable driver's seat, and easy-to-read and understand controls.

Consumer Reports recommends five new models that perform well, are reliable, and have the kinds of features suitable to the needs of an aging population. They are:

Minivan: Honda Odyssey
Small SUV: Subaru Forester
Upscale sedan: Hyundai Azera
Family sedan: Honda Accord
Microvan: Kia Rondo

The 2010 Honda Accord is the only vehicle to make both lists. For teenagers, it has enough performance to make them happy, has standard stability control, handles easily, and is crashworthy. These features are important for older drivers as well, even if for different reasons. In addition, seniors appreciate the ease of getting in and out of the wide seats; the simple, well-marked controls; the supportive seats; and excellent driving position with impressive visibility.

Regardless of age, everyone needs a car with good safety features and crashworthiness.

Little-known discounts help college budgets

2010-08-17T07:50:00.000-05:00

The cost of attending a four-year public college has risen sharply over the past decade. The price tag has climbed an average of 4.9% above the general rate of inflation during that time (The College Board July 2010). Add in the effects of a tough economy and the back-to-school season is financially difficult for college-bound students and their families.

Relief is available in the form of discounts and incentives. But while these sales tactics can save money on back-to-school purchases, they also can entice you to purchase items and services that you could do without.

Here are five retail categories to keep an eye on for potential savings of 5% to 25%, according to SmartMoney.com, with some suggested alternatives from CUNA's Center for Personal Finance:

Technology. Major manufacturers and retailers hope to lure students with aggressive advertising of the latest, most powerful computers by offering steep discounts on hardware and software. Some manufacturers are extending these discounts for as long as you remain in school. But if you don't need maximum computing power for schoolwork, you probably can squeeze a few more years out of your current laptop. As for video games, hey, what are friends for?
Cell phones. Discounts on hardware and service plans are one way cell phone companies try to hook students into contracts after graduation. Compare service plan features and fees carefully at least once a year to find the best deal. Now that you can keep your phone number when you change local providers, there's one less disincentive to switch. Just be sure you understand all the costs of local number portability, including whether you need to buy a new phone.
Travel. Airfare and lodging discounts are common and change constantly. Monitor deals online for frequent opportunities. Include train travel, especially with the purchase of a rail pass. And don't overlook the network of youth hostels that spans the world. Hostelling membership brings eligibility for a wide array of additional travel discounts.
Health clubs. Competition among gyms can lead to local price wars, so shop around. Be sure to ask about periodic promotional incentives that might save you even more than a student discount. But many universities give students access to gym facilities at a reasonable cost. And, if you exercise on campus, you're more likely to run into people you'll want to get to know than you will at a gym open to the general public.
Clothing. Store sales run almost constantly these days, and brand name bargains are easy to find. But if you can't get away with a retro look based on second-hand clothes from a thrift shop while you're a student, when will you ever be cool?

Social Security takes double hit from recession retirees

2010-08-13T07:14:00.001-05:00

The long recession has seen many late-career job losses, forcing jobless workers to take Social Security earlier than they planned (Associated Press Aug. 8).

Pair the reduced tax collections received from fewer workers with an unexpectedly high withdrawal rate, and the Social Security trust is experiencing a rare shortfall this year.

A record number of workers, 2.74 million, applied for Social Security in 2009, with a marked rise in the number of recipients receiving reduced benefits because they filed before their full retirement age. That age rose to 66 last year. The Social Security Administration indicated that 72% of men, up from 58% the year before, filed for early benefits in 2009. Similarly, 74.7% of women, up from 64.2% the previous year, filed for early benefits.

While many workers retired earlier than planned, others are working longer and postponing retirement because their retirement savings are not up to their financial needs. "But we're seeing more people taking early benefits than staying in the work force longer," Jason Fichtner, an associate commissioner of the Social Security Administration, told Associated Press.

Some late-career unemployed workers are making do with reduced Social Security benefits and unemployment benefits.

The Social Security program released its annual report last week, showing that payments will be more than revenues for 2010 and 2011 as a consequence of the deep recession. The report predicted the program will be back in the black in 2012 through 2014, with benefit payments again exceeding tax collections in 2015. From that year forward, the report projected that Social Security will pay out more than it takes in, as 78 million baby boomers begin retiring.

Still, there is no expectation that early retirees will drain Social Security funds much over time. That's because early claimants receive smaller checks; they ultimately won't receive more money than if they had waited until their full retirement age to collect Social Security benefits.

At a time when no one's job is secure, be proactive if you're still working. Credit Union National Association editors from the Center for Personal Finance made these suggestions:

Save as much as you can; you need both liquid funds and long-term retirement funds.
Live below your means; examine every purchase.
Get an estimate of pension or 401(k) or 403(b) income potential; determine when you will be eligible for retirement.
Get an estimate of your Social Security benefits from ssa.gov or call 800-772-1213.
Determine whom you'll be providing for in retirement, and plan for long-term care for any dependents.
Set a retirement savings goal and make a plan to reach it.

Back-to-school shopping a teachable moment

2010-08-10T07:02:00.000-05:00

Back-to-school shopping is an annual event perfect for talking to your kids about budgeting and saving money, and the difference between needs and wants (Americans for Consumer Education and Competition Aug. 2).

If you view shopping as a headache, here's an opportunity to put some responsibility on the student and lessen your role as the baddie saying, "No, no and no." If you view shopping as fun and exciting, it's your chance to show your student how to shop responsibly.

You can use back-to-school shopping to lay the foundation for sound money management habits these ways:

Set a realistic back-to-school budget with each child before you shop--use the ads in the Sunday paper as a guideline.
Take a copy of your budget when shopping and let your child enter in all of the actual expenses--paper works fine for young ones; teens might prefer to enter expenses in a cell phone.
Encourage kids to consider ways to cut costs through sales and coupons, and reward them for coming in under budget. Consider splitting the difference with them.
Teach your children to comparison shop and to avoid impulse buying. If it's not on the list, don't get it.

The first year is the toughest, so don't give up if it doesn't go smoothly. Consider any "discussions" as a success that you've struck a nerve. You can build on this experience to begin turning over more purchasing decisions to your student as he or she matures, using entertainment and clothing budgets as an example.

Fake check scams target lawyers, consumers

2010-08-03T06:40:00.002-05:00

Two lawyers from New Hampshire recently were targets in an elaborate fake check scheme designed to trick them into depositing a fraudulent check and then wire a portion of the funds to a third party. One lawyer fell victim and lost $240,000 in the process (UnionLeader.com July 16).

Lawyers, of course, aren't the only ones targeted. The Federal Trade Commission website says Americans report losing $1 billion each year to fake check scams.

Fake check scams come in many forms but have one identifying characteristic: Victims are asked to deposit a check and wire a portion of the amount back.

Financial institutions must make funds from deposited checks available after a few days, while identifying a phony check may take several weeks. Victims typically wire funds well before they learn the deposited check is fraudulent; victims are responsible for the amount deposited and the wired funds.

Don't worry. It's easy to protect yourself from becoming a victim once you understand what to watch out for:

Field of schemes. Crooks use a number of scenarios via the mail and internet to trick people into becoming victims of fake check scams. Learn to recognize--and avoid--some of the most popular schemes, such as foreign or domestic lotteries and sweepstakes, family emergencies of someone you don't know, overpayment for something you sell in a classified ad or online, and work at home and mystery shopper scams.
No need to return. There's no legitimate reason for someone to give you a check and ask you to send money anywhere in return. Never deposit a check from someone and agree to wire a portion of those funds elsewhere
Free to claim. It's normal to pay for goods before receiving them. However, you should never have to pay to claim a prize, grants from the government or foundations, or be required to cash checks and send money back to an employer.

5-Star Superior Rating

2010-07-30T07:10:00.003-05:00

BauerFinancial, Inc., recently announced that LifeWay Credit Union has earned its highest 5-Star Superior rating for financial strength and stability. BauerFinancial, the Nation's Bank and Credit Union Rating Firm, has been analyzing and reporting on the nation's banking system for over 25 years. This 5-Star rating indicates that LifeWay Credit Union is one of the strongest financial institutions in the nation.

Fastest-growing careers are in healthcare

2010-07-27T06:51:00.004-05:00

While the economic downturn has hit many job sectors hard, the healthcare industry is steady. Better than steady, it's thriving.

The Labor Department predicts nearly two million openings from 2008 to 2018 for nurses, orderlies and medical assistants alone. The increasing longevity of the U.S. population is behind the more than 50% increase in projected health-care positions.

Strong opportunities for employment can be an enticement, but shouldn't be the only reason behind a career decision. In "100 Fastest-Growing Careers," author Michael Farr identifies occupations with the highest projected growth through 2018 and offers realistic descriptions of the work.

Here are some fast-growing fields outside of healthcare:

Teachers (32% growth);
Computer network, systems, and database administrators (30% growth);
Market and survey researchers (28% growth);
Heating, air-conditioning, and refrigeration mechanics and installers (28% growth);
Accountants and auditors (22% growth);
Human resources, training, and labor relations managers and specialists (22% growth); and
Computer software engineers and computer programmers (21% growth).

'Perfect storm,' sinking credit scores jeopardize recovery

2010-07-23T06:58:00.002-05:00

As the U.S. economy struggles with bankruptcies, unemployment, foreclosures, repossessions, and declining housing values, the perfect storm scenario just got more intense. New data released last week reveal that average credit scores have fallen to new lows, jeopardizing economic recovery efforts (CNBC.com July 12).

Figures from FICO Inc., a provider of credit scores, paint a bleak picture. Nearly 43.4 million Americans - slightly more than a quarter of the 170 million consumers with active credit accounts - have a credit score below 600 (Associated Press July 12). In comparison, that level historically has been about 15%.

Most lenders consider individuals with low credit scores a high risk for loans, mortgages, and credit cards, and - if the consumers are approved for credit - it's at a higher cost. But tighter lending standards by banks restrict access to credit and are one reason for the slow economic recovery.

The trends are concerning:

Location, location, location: Regions hit hardest by the housing crisis and declining home values - including Southern California, Arizona, Nevada, and others - experienced the biggest downward shift in credit scores.
Subprime on the rise: Roughly 35% of consumers with credit histories have a credit score of less than 650, considered subprime or even nonprime.
Middle tier declining: Consumers with credit scores between 650 and 699 - considered moderate credit risk - make up 11.9% of scores, reflecting a drop of about 5.3 million people from the historical average of 15%. These individuals are more likely to try to borrow than those in the subprime range but find it harder to qualify for affordable loans.

One positive trend to note: Individuals with a top score of 800 or higher increased in the past few years, likely because they cut spending and paid down debt. But as more homeowners face the prospect of losing their homes, one foreclosure can cut 150 points off the credit score (USA Today July 12).

A "good" credit score is generally 780 and higher. Know what affects your credit score so you can take steps to improve it. Your bill payment history makes up a whopping 35% of your score, so pay all bills on time. Other factors include amounts owed to creditors (30%), length of credit history (15%), new credit, or increased debt obligations (10%), and a healthy mix of credit (10%). Consider paying bills online or setting up autopay for bills to be paid directly from your checking account to assure timely payment.

For more information about credit scores, visit myfico.com.

Don't hire a "Bernie" as investment adviser

2010-07-20T06:32:00.002-05:00

Bernard "Bernie" Madoff created a scandal in 2008 when he bilked investors out of their life savings. He also provided a reminder why it's important to vet the person who's making decisions - or holding your hand - when it comes to your investments (Dailyfinance.com July 10).

If you're in the market for a broker or adviser, here's how to make sure you won't get scammed:

Make the broker vs. adviser decision. Brokers are paid to do what you tell them. Generally you have to give the OK before they buy and sell your investments. Investment advisers are paid to give you advice and must be registered with either the Securities Exchange Commission or their state's securities agency. Typically, you sign a contract with an investment adviser giving him or her authority to manage your funds without you weighing in on every decision.
Do your homework. Research broker backgrounds using the free BrokerCheck tool on the Financial Investor Regulatory Authority (FINRA) Web site. FINRA provides information about licensing, how long a broker has been in business, and any complaints filed against the business.
For a financial adviser, whether a firm or an individual, use the Security and Exchange Commission's (SEC) Investment Adviser Public Disclosure site. It provides background information and disclosures about regulation violations on the ADV form. You'll need to ask if your adviser received income from certain funds, as this is not yet publicly available. This is important because you'll want to know if your adviser is putting your money into investments that may boost his or her bottom line too.
Select two to three companies to meet with. Take the time to interview potential brokers and advisers--you are trusting them with your financial future, after all. Ask questions about services and their investment philosophy. Be sure you understand how they charge and whether fees are based on commission or a percentage of assets under their management. Request references and check them.
Keep your cash. Many of Madoff's victims gave him their money directly instead of putting it in a third-party financial institution or with an independent broker-dealer. Keep your investment funds in a separate account so you'll get statements from the financial institution or brokerage and your investment adviser. Plan to compare them and look for any discrepancies.

E-reader or tablet? That is the question

2010-07-16T07:30:00.001-05:00

Manufacturers of electronic reading devices such as Amazon's Kindle and Barnes and Noble's Nook are engaged in a battle for your dollars. This is your chance to take advantage of price wars between e-readers. But, before you buy, make sure the device will meet your needs as well as a tablet computer like Apple's iPad or Lenovo's IdeaPad (The Wall Street Journal June 28).

How do you decide? First, some definitions:

An e-reader (electronic reader) is a lightweight device for reading content, such as e-books, e-newspapers, and documents. Besides being able to download content, it can do other Web-based tasks. The display is black and white. E-readers can cost between $190 and $800. Smartphones and PDAs that display text can also function as e-readers.

A tablet is a laptop personal computer that may allow you to take notes using handwriting on the touch screen. The display is color and you're able to install any compatible application (app) or operating system. Tablets can cost between $500 and $1,500.

When making your evaluation, consider:

How much you read. If you read a lot, you'll benefit most from an e-reader, even if you buy a tablet too. E-reader batteries last for weeks. The tablet's large screen uses technology that makes it easy to view whether indoors or out, a feature of e-readers as well.
Attributes. Look at what the different electronic devices can do. Features vary: Make sure you want what you're paying for. SmartMoney has put together a handy chart for comparing features.
Content. If you're going to use a reader for books, magazines, and newspapers, look at both cost and availability of content. You don't want to purchase a device that won't let you obtain content you want. No matter which device you get, look for e-book stores that offer content in a free electronic publishing (EPUB) format that any reader can use.
Buying in a brick-and-mortar store. This will give you a feel for the device. The return policies and other benefits may be better than if you purchase it online.
Waiting. More e-readers will appear later this year and prices may drop. Or not. If you haven't found an e-reader that fits your needs and budget, it may be worth the wait.

Prepare plastic for trips abroadPrepare plastic for trips abroad

2010-07-13T06:56:00.001-05:00

Travel can be tricky, particularly when it's overseas. Don't leave home without taking measures to prepare and protect plastic cards--and your ability to use them (Bankrate.com June 29).

These simple tips could save you hours of frustration and hundreds of dollars or more:

Give card issuer your itinerary. If the company knows you're traveling overseas, it won't place a hold on the card when you try to use it outside the U.S. And if someone uses your credit card number in a country that's not on your itinerary, you'll be notified of possible fraud.
Call ahead. Contact the hotel before you leave home to make sure your credit card will be accepted there. Some Europeans have adopted chip-and-PIN cards that include a computer chip and require you to enter a personal identification number (thestar.com June 29). If you're carrying a card without this feature, your card might be denied. When shopping, ask a salesperson before you get to the cash register if your card will be accepted. And consider printing your train tickets at home, before departure, to avoid kiosks that require chip-and-PIN cards.
Ask about transaction fees. Some cards assess a foreign transaction fee, which can run around 3% and add up quickly if you charge hotel, restaurant, and other expenses paid for in a different currency. Be aware that even if a transaction involves U.S. dollars, some card issuers assess the fee if you conduct the transaction on foreign soil or with foreign entities. If your card charges a foreign transaction fee, take a little extra cash with you and take precautions to keep the cash safe.
Clean out your wallet. Only take the plastic you'll need, but make sure you have a backup in case your primary card is lost, stolen, or cancelled. And, keep toll-free numbers of your card issuer in a separate place so you immediately can cancel plastic that's been compromised. Keep all plastic in a secure location, such as a wallet tucked into an inside pocket.
Plan for loss. Consider carrying a USB Flash drive with your credit card information and other important documents in digital form. Make sure the flash drive allows for encryption, which protects your confidential information from identity thieves. Then if your card is lost or stolen, simply decrypt the file on a computer.

Turn to Someone You Can Trust

2010-07-06T07:26:00.000-05:00

"People helping people" is the fundamental philosophy on which credit unions were built. More consumers are discovering that credit unions have some important characteristics not always found at other financial institutions, such as personal service and customer advocacy.

Data from Forrester Research Inc. shows that customers of the biggest banks in the U.S. are the least likely to believe their financial institution does what's best for them as opposed to what's best for the bottom line, according to the 2009 Customer Advocacy Rankings. Americans often are wary of doing business with large profit-driven financial organizations--they believe these companies only are interested in their own bottom lines.

Credit unions, however, continue to remain near the top of the rankings, as they have in previous years, with 70% of credit union customers saying their financial institution puts their interests first. Members trust their credit unions, which are not-for-profit organizations. Members know the people at their credit union care about them and have the members' best interest at heart.

When you become a member of LifeWay Credit Union, you'll always have a place where you belong. We offer a wide variety of programs and services designed to meet the unique needs of our members. Our member-focused staff will be here to assist you face to face, and answer any questions you may have.

Whether it's to open a new account, to ask about a loan, or for any of your financial needs, stop in and see us today. We are here for you.

Well-kept - and clean - car worth more

2010-07-02T07:13:00.003-05:00

A little elbow grease can pay off when it comes time to sell your vehicle. According to the Car Care Council (carcare.org June 16), a clean, well-maintained vehicle can be worth as much as 50% more than one in "fair" condition.

These recommendations take little money or effort but deliver huge returns:

Wash and polish. Washing once a week and polishing once every six months keeps the finish free from damaging chemicals and dirt. It also protects your car's finish from the damaging effects of ultraviolet rays and acid rain.
Examine the surface. While you're washing and waxing, look for dents, dings, scratches, or cracked glass. Fix any problems right away, before they become expensive repairs later.
Use recommended products. Harsh detergents, even dish soap, can damage the protective finish, leaving your vehicle even more vulnerable to the elements than before you washed it. Clean your car with products recommended by the manufacturer.

lovemycreditunion.com

2010-06-29T06:55:00.005-05:00

Long-term care: It's a Class Act

2010-06-25T07:50:00.000-05:00

The new health care bill President Barack Obama signed into law in March includes a national voluntary insurance program for purchasing long-term-care services, called CLASS, for the Community Living Assistance Services and Supports program (SmartMoney June 11).

Working people age 18 or older will have the option to use CLASS, through voluntary payroll deductions, to take the place of or supplement private long-term-care insurance (LTC). The program is expected to launch next year.

Why would you want more insurance? If you become disabled, traditional insurance, private LTC, Medicare, Medicaid, and your loving family most likely will not be enough to allow you to stay in your home and out of institutional settings (The New York Times March 24).

Here's what you need to know about CLASS:

Enrollment. If you are working, you can enroll no matter what pre-existing conditions you have. You can have premiums deducted from your paychecks if your employer participates. Some employers will enroll workers automatically and provide an opt-out if they choose.
Eligibility for benefits. You become eligible for benefits when you need help with two or more activities of daily living (ADL), as long as you've worked the previous three years and have contributed for at least five years. ADLs include preparing meals, eating, bathing, dressing, helping with medications, using the toilet, and so on.
Cash benefits. The cash benefits can be used to pay for home care services, nursing home care, assisted living care, or adult day care. CLASS benefits won't cover all your costs for long-term care. The details are being ironed out--it may take awhile--but the Congressional Budget Office expects they'll average $75 a day, and be no less than $50 a day.

You might do better getting private LTC insurance, but perform a careful comparison. Fewer than 10% of older adults have bought private LTC policies. The daily cost benefits are not the only differences between CLASS and private LTC insurance. Look at the consumer protection provisions, lifetime benefits, lifetime premiums, discounts, and other features, as well as the daily cost benefits.

Buying a car?

2010-06-22T06:30:00.003-05:00

Be sure to check out LifeWay Credit Union's auto loan rates!

Up to 24 Month New/Used Auto 3.25%
36 to 60 Month New/Used Auto 4.25%
72 Month New Auto 5.25%

Call us today for more information!

Matchmaker, matchmaker... make me a monetary match

2010-06-18T06:12:00.005-05:00

No matter how much you love your spouse, chances are there's something you'd change if you had the chance. Often that desired change is about how your significant other handles money, according to a recent Thrivent Financial and Kiplinger's survey (June 2).

Nearly two in five Americans said they most wanted to increase their spouse's earning power, the survey found. Three in 10 respondents said they wish their spouse would talk about money more. Seventeen percent wish their spouse did more of the routine money management duties. Twenty-three percent of respondents want their mate to be less of a spendthrift; one in 10 wish their spouse was less of a tightwad.

A willingness to accept your partner's money personality is a start, but you have to take action if you really want to achieve financial harmony. Discussing what's important to each other can help you understand each other.

To reduce conflict and reach your and your spouse's financial goals, the Credit Union National Association's Center for Personal Finance recommends:

Communicate - It's vital that you talk about money and your marriage. Set aside time to do so. Remain open-minded rather than insisting your partner do things your way. Make agreements to compromise.
Set goals together - Start by making separate "wish lists" and then, together, rank the items and work toward those that you both feel are most important. Revisit goals at least annually and make adjustments based on changing priorities and goals.
Maintain individual accounts - Consider having his, hers, and ours accounts. Use the joint account to pay household expenses, including mortgage and rent, utilities, insurance, and car and home repairs. If there's money left over, split it into your individual accounts. From these accounts you can pursue individual goals. For a spender, that might mean paying for a dream vacation. For a saver, that might mean beefing up a retirement account.
Get professional help - If you run into roadblocks, consider getting professional help. Whether you choose to see a marriage counselor, financial planner, or another type of professional such as a member of the clergy will depend partly on whether you believe your issues have more to do with your relationship or your finances. Contact the professionals at your credit union. You also can find a nonprofit, accredited credit counseling agency by visiting the National Foundation for Credit Counseling website at nfcc.org or by calling 800-388-2227.

Leonard Wedel Scholarship Winners

2010-06-15T07:22:00.001-05:00

Congratulations to Leonard Wedel Scholarship winners Morgan Turner and Michael Dillon! Morgan will be attending Union University this fall, and Michael is completing his Master of Divinity degreee at Southern Theological Seminary. Both Morgan and Michael will receive $2,500 from LifeWay Credit Union towards their degrees.

Flying this summer? Plan ahead

2010-06-11T06:16:00.001-05:00

Planning to fly this summer? Expect full flights, higher prices, delays, and a difficult time using frequent flyer miles.

The number of first-class, business-class, and economy class travelers is up more than 7% from a year ago, and those increases are in no way being matched by increases in passenger seats. Air Transport Association, the trade group for the American airline industry, says domestic capacity will only increase about 0.2% this summer over last year (The New York Times June 1).

In April, Delta, United, American, Continental, and US Airways averaged domestic load factors of 85% - the measure of how many seats on planes are occupied by paying customers. Airline loyalty programs are sitting on a cache of at least nine million frequent flyer miles, say some observers. With planes filling up with paying customers and airlines not increasing the number of potential seat availability, it becomes obvious that airline reward programs will pay off less frequently (frequentflyer.com May).

Frequent flyer programs started in 1981; by 2005 travelers had accumulated more than five trillion unused miles. Where once consumers racked up rewards by flying, today consumers are more likely to rack up miles based on credit card reward programs. As a result, today there are more miles chasing fewer reward seats. In 2008, airlines began making program changes that made it more difficult and costly to exchange miles for free tickets and upgrades.

All this means travelers will have to be even more diligent when trying to recoup frequent flyer miles. Here are some suggestions from frequentflyer.com:

Choose one frequent flyer program and concentrate your mileage earning in that program.
Monitor your account and look for new mileage-building opportunities.
Know how to get points from partner programs--businesses that reward miles with your particular frequent flyer program.
Track your miles diligently. Keep receipts and reconcile mileage statements.
Monitor expiration dates of your miles and redeem them before they expire.
Make your plans as early as possible; space is limited.

Job hunting in the modern (cyber) world

2010-06-08T06:23:00.004-05:00

Looking for work ain't what it used to be. Long gone are the days of circling want ads in the daily newspaper and hitting the pavement. Today, like it or not, you've got to be prepared to take your job hunt online. With the economy adding 195,000 jobs in April (U.S. Bureau of Labor Statistics May 7), you want to be as competitive as possible.

Here are some suggestions from the Credit Union National Association's Center for Personal Finance for conducting a job search in cyberspace:

Know your way around. If your computer skills are limited, spend some time getting up to speed. Some public libraries offer Internet navigation courses, as might your local technical college. Not only will you improve your job search, but you'll also acquire the ability to fill out online applications, which are becoming more and more common.
Investigate prospective employers. Many companies now post job openings on their websites. While you're there, study each company's information, its products and services and its industry. This will help you identify places that are a good fit for your talents and career plans. It'll also help you write cover letters that reveal knowledge relevant to the position you aspire to get.
Consider several job search sites. By now you've probably seen ads for Monster.com, but there are many competing sites out there. On her website job-hunt.org, self-described online job search expert Susan P. Joyce says, "Many of the 'big names' are great sites, but they can also be expensive for employers to use and not attractive to some specialized groups of job seekers." Therefore, you'll need to poke around and compare search site features, ease of use, and supporting help, such as résumé guidance.
Complement your personal network with online contacts. The more people you know who are aware that you're looking for work, the more likely you'll hear about openings that aren't advertised. Be sure to spread the word about your availability and employment interests among relatives, friends and business associates. But also set up accounts with one or more online social networks such as LinkedIn and cast your net among acquaintances you don't see every day.
Be careful. The Web can help you snare a great job, but it also can be a trap. Joyce points out that identity thieves and con artists often use job seekers' eagerness and desperation against them. So, for example, she warns against including your Social Security number on your résumé and urges you to be "very wary of an e-mail from an anonymous employer or recruiter."

Finally, if you're successful in getting a job interview, don't forget the final step, which the Internet can never improve upon - a thank-you note, on paper and in ink, just like Mom always told you, remember?

Turn to Someone You Can Trust

2010-06-04T07:05:00.002-05:00

2010-06-01T08:19:00.003-05:00

Looking to buy a new or used car? LifeWay Credit Union has great rates that can save you money!

Up to 24 Month New/Used Auto 3.25%
36 to 60 Month New/Used Auto 4.25%
72 Month New Auto 5.25%

Call us today for more information!

Save a few pennies on summer fun

2010-05-28T06:25:00.002-05:00

Whether your summer adventures take you to the local beach or to another continent, consumer editors from the Credit Union National Association's Center for Personal Finance offer a few ways to save on holiday fun.

The advice:

Eat lunch out, dinner in. Picnicking is a classic way to save money and time when stomachs start to rumble. Check the deli or to-go section of a grocery store for a quick and fun meal. Save even more by making lunch your main meal out. Many restaurants offer nearly as much food at special rates before 4 p.m. on weekdays as they do for dinners.
Get cash back to avoid ATM fees. When you're away from home base without a credit union surcharge-free ATM handy, consider using your debit card to get cash back when you make a purchase. Most grocery and many discount stores will oblige.
Use your flex spending account (FSA) dollars. FSAs let you use pre-tax dollars to cover many health care expenses. Sunscreen with high SPFs, Band-Aids, poison ivy lotion, and allergy medicine are just a few of the over-the-counter items eligible this year, but not in 2011, so stock up.
Duck into a matinee to escape the heat. If sunny and 95° loses its charm by the third day, enjoy a cool break mid-afternoon at the movies. Theaters typically hike up the AC but drop down the price for screenings before evening.
Stay home. Just imagine the benefits of vacationing in your home town. No hours on the road stuck in traffic or long security lines at airports. Make a list of the best features in the area and consider treating yourself like a tourist. Eat out or bring meals home to make the break from cooking and cleanup complete.

Boost curb appeal to help sell home

2010-05-25T06:22:00.001-05:00

The home buyer tax credit has expired and home prices are expected to fall--leading to even more seller competition in today's housing market (USAToday.com May 12).

If you're trying to sell your house, boosting its curb appeal can help make--or break--a sale. Tackling outdoor projects may seem daunting, but starting with these tasks can help make your yard look fresh and inviting, according to CNNMoney.com.

Mulch. A fresh layer of mulch provides visual contrast and makes foliage and flowers more eye-catching. Mulch also keeps water in the soil and provides nutrients as it breaks down, keeping your plants healthier all year long.

For a large project, you'll need more than a few bags of mulch from your neighborhood home center. Consider having a local landscape supply company deliver mulch to your home instead. Since this mulch will be local, there will be less chance that it will introduce invasive diseases or insects into your garden. Bagged mulch often comes from hundreds of miles away.

Using a garden spade, cut a clean edge around your beds then use a wheelbarrow, pitch fork, and rake to lay at least a two-inch thick mulch bed.

Seal decks and fences. All outdoor woodwork needs protection from elements. Seal with stain. Paint requires first scraping and sanding every time you need to refresh the area. Invest in premium oil-based stain--it will soak into the wood and minimize prep work for your next coat. Purchase stain that contains UV (ultraviolet) blockers to prevent sun damage to the wood.

Before staining, use a wood cleaner and a soft-bristled brush to remove dirt and mildew, or use a power washer, which you can rent for about $50 to $100 per day.

Touch up paint. Peeling paint makes your house look neglected and lets UV light damage wood siding--making more paint come off and leading to a more extensive, expensive project.

It's tempting to skimp and buy cheaper paint ($15 to $20 a gallon). Instead, splurge and purchase a more expensive paint ($30 to $45 a gallon). The high-quality pigments and binders in top-of-the-line paint make it last five or more years longer than economy products. Use water-based paint--it's easier to use and more environmentally friendly than oil-based products. But purchase oil-based primer to make the paint stick better.

If your house exterior has more than just a few spots that need touching up, you probably need a full-blown paint job. House painters typically won't do touchups unless they're fixing a previous paint job of their own. A handyman can help with touch-up painting.

Doing these jobs yourself can save money. If working outdoors isn't your forte, find a handyman to do these jobs at a reasonable cost.

Once you complete the bigger projects, make sure to mow and edge the lawn on a regular basis, trim hedges, and plant flowers. If your yard doesn't look well-maintained, buyers will assume your home isn't either and drive on by.

Base school decisions on your teen's career plan

2010-05-18T06:45:00.001-05:00

After 12 years, most high school graduates could be excused for hoping they've seen the last of compulsory education. But, with changes in the global demand for skilled labor, young adults are feeling forced to look beyond secondary education.

During the 12-month recessionary period starting July 2008, when overall employment declined by 5.3%, the number of jobs for workers with advanced degrees actually grew by 1.5% (WANTED Technologies March).

But, of course, post-secondary education is not compulsory, or in some cases even desirable. The Credit Union National Association's (CUNA) Center for Personal Finance editors offer these planning steps to help your teenager find the best path to a career:

* Self assess. Taking a good, hard look at personal interests and strengths is essential to making the right educational and career choices. Barbara Cooke, M.A., author of "Parent's Guide to College and Careers: How to Help, Not Hover," encourages parents to help their teenagers examine their skills, values, and personality preferences by asking: Where are my skills used in the economy? What additional education or work experience would I need to get the job I really want? The federal government's online Occupational Outlook Handbook can be an excellent resource for this step.

* Consider all options. Perhaps a four-year college education followed by a graduate degree is not the way to go for your child. There are plenty of other roads to fulfilling and financially rewarding careers, including military service, technical schools, and apprenticeships.

* "Try out" a profession. One way is through an entry-level internship, such as the one Rachel described for CUNA's online youth magazine Googolplex. Her internship gave her an overview of the entire graphic design field. "I learned much more about what goes on in the design world," she said, "from how clients are handled and the making of proposals to the actual design work and programs used. It's good to know what you want to do, but I think it is even more important to know and understand all of your options."

* Delay a decision. For some, the best decision a high school graduate can make is to put off a commitment for a while. A "gap year" after high school can be a time of maturation, reflection and growth that eases the transition to college and the world of work. Many students use a gap year to clarify interests and establish focus before going on to school.

"You're building a resume before you hit college," Holly Bull, president of The Center for Interim Programs, LLC, a New Jersey-based consulting firm, told CUNA's Home & Family Finance magazine. "I've had students who have taught in schools, acquired language fluency, got experience in business...this is a very practical accrual of skills and recommendations and references that can actually help them get jobs down the line."

Getting insight and experience can be just as useful as academic knowledge. Said Cooke, "Even though the word on the street is that a master's degree is the new bachelor's degree, most young people need to figure out an initial career path and get some entry-level work experience before signing on for more student loan debt."

Find Help Managing Recession Finances

2010-05-14T06:56:00.006-05:00

Two personal finance Web sites have been developed in response to the recession and tough economy.

• ftc.gov/moneymatters. The Federal Trade Commission's Money Matters site has ideas for dealing with debt, coping with layoffs, wise use of credit cards, and avoiding foreclosure.

• debtadvice.org. The National Foundation for Credit Counseling's Debt Advice site has interactive budget and mortgage calculators, video tips, and quizzes. You'll be able to find local, certified credit and housing counselors, as well as information about bankruptcy counseling, foreclosure prevention, and identify theft.

MyMoney

2010-05-11T06:43:00.003-05:00

Manage your finances right from your Facebook profile, simply and securely! MyMoney is an online home banking application that interacts with a variety of financial institutions, so you can view your account balances, transfer money between accounts, review histories, and much more.

Interested in security? MyMoney uses multiple layers of security to ensure that you, and only you, can access your account. First, you have the standard privacy features offered by Facebook. Next, we’ve added a built-in two-way security system with photo and phrase ID that lets your financial institution know it’s truly you accessing your account – and confirms that you’re connected to the right financial institution. Finally, MyMoney fully encrypts all data before it’s sent, using a 128 bit data encryption over a secure socket layer (SSL). So, your confidential information stays that way.

With MyMoney, you know instantly how much you have to spend on gifts, go shopping at the marketplace, and more! To get started, just click the “Add Application” button and search for LifeWay Credit Union. If you need assistance setting up your MyMoney account, call us or visit www.lifewaycu.org for an instruction sheet.

Flood assistance loans

2010-05-07T07:08:00.001-05:00

Effective immediately, LifeWay Credit Union is offering a flood assistance loan* at just 3.9% interest rate for members affected by the devastation on May 2nd and 3rd. Contact us at 251-2089 for more information.

* credit approval qualifications apply

We Just Lowered Rates.....Again!

2010-05-04T06:36:00.002-05:00

Effective immediately, LifeWay Credit Union has new, lower auto loan rates! They are as follows:

Up to 24 Month New/Used Auto 3.25%
36 to 60 Month New/Used Auto 4.25%
72 Month New Auto 5.25%

Call us today for more information!

Reduce your taxable income

2010-04-30T06:23:00.002-05:00

In this tough economy, you may think tax shelters are of little use to you. But as President Barack Obama's fiscal reform commission considers raising taxes in its war on debt, methods of reducing taxable income are more important than ever (The Hill Apr. 13).

This is especially true for retirement plans such as 401(k)s and individual retirement accounts (IRA). Here's why:

Tax shelters are off-limits for creditors. Unfortunately for many debtors, this will be important. Money in a tax shelter strengthens your hand if you have to negotiate with lenders and is protected if you end up in bankruptcy.
Federal deficits mean your taxes probably will be higher in the future. Tax shelters are more valuable as your tax rate goes up. By the way, this is also a reason to own a Roth IRA. By paying the tax upfront, assuming you're 59 1/2 or older and the money's been in the Roth at least five years, you don't owe taxes when you take money out.
Keeping bonds in a tax shelter increases returns. Recent stock market volatility has reminded investors to keep some money in bonds. But bonds, except for municipals, don't get favorable tax treatment--unless they're in a tax shelter. This is especially important if you hold Treasury inflation-protected securities (TIPS) bonds; always try to hold TIPS bonds in a tax shelter. Why? The value of TIPS bonds is adjusted twice a year for inflation and counts as taxable income.
You'll be expected to contribute less if your children apply for financial aid for college. Money in tax shelters like an IRA or a 401(k) doesn't count against you in the federal formula for financial aid. Money in a regular investment account does.
The less money you have in retirement, the more your tax shelter will pay you. That's because income tax rates are progressive--you'll get to keep more of your money.

When you move investments into a tax shelter, your gains aren't taxed each year, but you make a trade. When you withdraw the money in retirement, except for a Roth IRA, the withdrawal is taxed as ordinary income. If that worries you, keep in mind that you are subject to the top 35% marginal tax rate only if you're earning $370,000 a year in retirement, in which case you likely don't have too much to worry about.

If your situation is more like that of the average married couple in retirement, according to the U.S. Census you'll live on about $31,000 a year. That would put you in the 15% income tax bracket. You'll get to keep most of the money you withdraw from your tax shelters.

Gas-Saving Tips

2010-04-27T06:57:00.003-05:00

It's almost vacation time and gas prices are on the rise. Fuel prices have been averaging $2.85 per gallon and forecasters expect prices to continue to increase, to about $3 per gallon by summer (billshrink.com April 16).

In fact, fuel prices are a key factor in the 4.8% rise in the cost to own and operate a vehicle, according to AAA's 2010 "Your Driving Costs" released earlier this month.

Here are some ways to cut your fuel bill:

Avoid carrying excess weight. Car-top carriers are convenient, but cause you to use extra gas. Every extra 100 pounds reduces miles per gallon by 2%.
Use cruise control. Driving at a consistent speed saves gas.
Consider joining a loyalty club. Some gas stations offer lower prices on gas to customers using a membership card.
Slow down and calm down. "Cut back your speed, not necessarily to the speed limit but to match the traffic flow," said Jerry Edgerton, an automotive writer in New York and frequent contributor to the Credit Union National Association's Home & Family Finance publications. "Even more, don't speed up, slow down, speed up. That means don't tailgate, because then you have to brake and speed up again. Don't constantly switch lanes trying to go faster, then have to brake."
Avoid idling. "Most people don't think about this," Edgerton said. "This is such a gas saver that auto companies are working on technology to shut off the engine at stoplights, then seamlessly start it again—just as now happens in gas-electric hybrids. If you are waiting for someone, shut off the car."

Go Easy on Scissors When Cutting Family Budget

2010-04-23T07:23:00.005-05:00

Trying to make ends meet during tough times? Be careful. Some cuts that save you $10, $20, or even $100 now could cost you thousands later, according to Bankrate.com. Ignoring auto oil changes and regular maintenance could harm the engine. Insufficient tire pressure could cause accidents. Skipping or halving doses of medicine—while it may double the life of that prescription—could harm your health and shorten your life. And lowering homeowners insurance—even if your home's value has dropped—could leave you holding the bag when insurance doesn't cover a catastrophic loss.

Rebalance Portfolio at Regular Intervals

2010-04-20T07:52:00.004-05:00

Not sure when to rebalance your investment portfolio? Avoid the guessing game - and subjective decisions based on emotion - by rebalancing at regular intervals, such as once a year. Rebalancing re-establishes your original asset allocation based on your time horizon and risk tolerance. Check whether your employer-sponsored plan offers an automatic-rebalancing feature. Remember: Lifecycle/target-date retirement plans automatically adjust your investments as you approach retirement age.